Building a financial model for a startup is the process of evaluating and predicting a company’s future cash flow, profits, return on investments, and other financial metrics. It involves creating an accurate and detailed representation of the business’ financial performance and using it to make informed decisions about its growth potential. Financial models provide entrepreneurs with key information needed to better understand their business and make strategic decisions that will ensure success. By taking into consideration factors such as market trends, competitive dynamics, capital requirements, and industry risks, startups can develop comprehensive financial models that accurately predict their finances in the future.