
Early-Stage SaaS Financial Modeling: Taylor Davidson, Foresight
The Role Forward: A Strategic Finance Podcast
**The Core Building Blocks of a Early Stage SaaS Financial Model **
The core building blocks of an early stage SaaS financial model are acquisition, conversion, retention, churn, and revenues and buildings. These building blocks capture the growth of the business by focusing on acquiring new customers, converting them, retaining them, and understanding the revenue and cash flow associated with it. It is important to pay attention to the difference between revenues and the contract cycles embedded in retention curves, as well as the timing of cash received and revenue recognition. The level of complexity in each building block can vary depending on the business, with options to model overall growth or dive deeper into specific channels such as social media, SEO, or paid media.