Budget projections

Budget projections#

Our budget projection model begins with a source of truth about our current and historical costs and revenue, and then projects into the future by making assumptions about these numbers. It allows us to manually specify costs and revenue in the future, if we know that they will happen. It also lets us specify repeating numbers each month, and a percentage growth rate for monthly recurring revenues.

Feel free to edit and experiment

The projections sheet is a tool to be used to understand how our hiring and cost decisions will affect our finances moving forward. Feel free to experiment with adding new line items to help guide decision-making about our costs.

It is stored as a Google Sheet at the following link:

Budget projections model

Update our budget projections model#

The model can be updated to begin on a new date, and to reflect the latest data for our “Cash on Hand”. It then updates its projections based on our Income and Expenses assumptions.

To update this model with the latest information, follow the instructions in the first tab the model.

Burn rate#

We can use the budget projections model to calculate our Burn Rate (how quickly we are losing/gaining money, and when we will reach $0.) To do so follow these steps: