Financial Modeling

CFO methodology for building financial models, analyzing unit economics, setting pricing strategy, managing fundraising, allocating budgets, and tracking SaaS operating metrics. These frameworks provide the quantitative backbone for strategic decisions across the organization.

Domain Model

Domain	Covers	Artifact
Unit Economics	CAC, LTV, payback period, contribution margin, gross margin analysis	Unit economics model
Financial Modeling	Revenue projections, cost structures, runway analysis, scenario planning, sensitivity	Financial model (3-statement)
Pricing Strategy	Value-based, competitive, freemium, tiered, usage-based, packaging	Pricing recommendation deck
Fundraising	Valuation, cap table, dilution, term sheets, investor materials	Data room, pitch deck, cap table
Budget Frameworks	Zero-based, driver-based, rolling forecasts, variance analysis	Budget model, forecast
SaaS Metrics	ARR/MRR, churn, NDR, Rule of 40, Magic Number, CAC ratio	Metrics dashboard

When to Load

Load this skill when the task involves:

• Building or reviewing a financial model (P&L, balance sheet, cash flow)
• Calculating unit economics (CAC, LTV, payback, contribution margin)
• Designing a pricing strategy or packaging model
• Preparing for a fundraising round (valuation, cap table, term sheets)
• Creating a budget (zero-based, driver-based, rolling forecast)
• Analyzing SaaS operating metrics (ARR, churn, NDR, Rule of 40)
• Running scenario or sensitivity analysis
• Evaluating a pricing change or monetization strategy

Loading Order

skill_view('financial-modeling')                    # This — methodology index
skill_view('executive-methodology')                  # Shared decision frameworks
skill_view('artifact-pyramids')                      # Output contract
skill_view('financial-modeling', file_path='references/unit-economics.md')
skill_view('financial-modeling', file_path='references/financial-modeling.md')
skill_view('financial-modeling', file_path='references/pricing-strategy.md')
skill_view('financial-modeling', file_path='references/fundraising.md')
skill_view('financial-modeling', file_path='references/saas-metrics.md')

Reference Files

Reference	Load When	File
Unit Economics	You need to calculate CAC, LTV, payback period, or contribution margin	references/unit-economics.md
Financial Modeling	You're building or auditing a financial model with revenue projections and cost structures	references/financial-modeling.md
Pricing Strategy	You're evaluating pricing models, packaging, or monetization strategy	references/pricing-strategy.md
Fundraising	You're preparing cap tables, term sheets, valuation, or fundraising materials	references/fundraising.md
SaaS Metrics	You're analyzing ARR/MRR, churn, NDR, Rule of 40, or Magic Number	references/saas-metrics.md

Design Principles

1. Models are tools for thinking, not predictions. A financial model's value is in forcing explicit assumptions and exposing their implications. The output is never "right" — it's internally consistent with stated assumptions.
2. Unit economics come before growth. If you don't know whether each customer is profitable, scaling unprofitable growth will destroy the company. Understand unit economics before raising growth capital.
3. Pricing is a product feature. It signals value, segments the market, and drives adoption patterns. Treat pricing decisions with the same rigor as product decisions.
4. The cap table is a governance document. Every financing round reshapes incentives. Understand who controls what, and how future rounds will dilute existing holders.
5. SaaS metrics are management by proxy. A Rule of 40 score is a summary, not a strategy. The underlying drivers (retention, efficiency, growth) are what matter. Lead with levers, not scores.
6. Scenarios, not single points. Every forecast should have a base, upside, and downside case. A single-number forecast implies a level of certainty that never exists.

Related Skills

• executive-methodology — shared decision frameworks and governance
• strategy-frameworks — CEO-side strategic planning and capital allocation
• operational-design — COO-side operational metrics and process design
• artifact-pyramids — output contract specification