We could not have said it better!
DJing and Financial Modeling: Tweaking Knobs = Perfect Harmony I’m sit on the sunny beaches of Portugal, enjoying a beer and watching DJ Ze (I think!) turning the knobs on his turntable, I remember my roots and how similar DJing is to building a financial model for a startup. Both require a keen sense of balance, precision, and an understanding of the underlying components that drive the ultimate outcome. Some people want to give you a formulaic approach to FP&A but it comes down to love for the art, feelings, and a sprinkle of acumen. 🔊 Tuning the Knobs: Finding the Right Balance A DJ controls elements like volume, bass, treble, and tempo, each adjustment impacting the overall mix. Similarly, in financial modeling, drivers like revenue growth rates, operating expenses, and capex are adjusted to reflect different scenarios and potential outcomes. 📈 Leveraging Drivers: ❤️ of Financial Modeling Just as a DJ knows how to read the crowd and adjust the music, an analyst must understand the business and founder or biz owner and its biz model to set realistic drivers (80/20). This requires blending art and science, making informed assumptions based on data and insights. 🎨 Creating Harmony: Assumptions & the Role it Plays! A DJ experiments with different beats and tempos until finding the perfect mix. Similarly, an analyst refines assumptions to nail the model accurately reflecting the startup’s financial expectations 💡 Lastly, Visualization: Bringing the Model to Life A DJ’s performance is felt through beats and visuals, while a well-built financial model is brought to life through compelling charts and dashboards and department and investor reporting, helping stakeholders make informed decisions. In both DJing and financial modeling, the goal is to deliver a seamless and engaging experience. Whether turning the knobs on a turntable or tweaking drivers in a financial model, the essence of the craft lies in finding the perfect balance… business, finance and people, not just a prescribed approach. #virtualCFO #DJLife #FinancialModeling #Startups #FinancialPlanning #FPA GrowthLab Finance-as-a-Service