Growth Models

Introduction to Growth Models

Growth Models is a spreadsheet-like modeling tool built for planning and forecasting your business growth. Create financial models with formulas, track actuals against forecasts, and compare different scenarios to make better strategic decisions.

Understanding Growth Models

What is a Growth Model?

A growth model is a structured financial forecast that helps you:

• Plan revenue, costs, and key metrics over time
• Model different scenarios (baseline, optimistic, conservative)
• Track actual performance against forecasts
• Understand the drivers of your business growth

Model Types

The platform supports different model categories:

• Baseline - Your primary forecast model
• Scenario - Alternative forecasts based on different assumptions
• Actuals - Models tracking real performance data

Creating a Growth Model

New Model

To create a new growth model:

1. Navigate to Growth Models from the sidebar
2. Click New Model
3. Configure the model:
   • Name - A descriptive name for the model
   • Description - Context about what this model represents
   • Owner - The person responsible for maintaining the model
   • Date Range - Start and end dates for the forecast
   • Currency - The currency for financial values
   • Category - Baseline, scenario, or actuals

Model Properties

• Name - Identifies the model
• Description - Explains the purpose and assumptions
• Owner - Team member responsible for updates
• Start/End Date - The timeframe covered
• Currency - Default currency (USD, EUR, etc.)
• Is Official - Mark as the approved company forecast
• Locked - Prevent edits when finalized

Model Structure

Rows

Models are built from rows, where each row represents a metric or line item:

Row Types

• Input - Values you enter directly (assumptions)
• Calculated - Values computed from formulas
• Subtotal - Sum of child rows
• Header - Section headers for organization

Row Properties

• Name - Display name for the row
• Code - Unique identifier used in formulas
• Type - Input, calculated, subtotal, or header
• Formula - The calculation formula (for calculated rows)
• Definition - Description of what this row represents
• Format - Number, currency, percentage, etc.
• Parent - For hierarchical organization
• Order - Display order in the model

Columns

Columns represent time periods:

• Monthly - Each column is a month
• Quarterly - Each column is a quarter
• Yearly - Each column is a year

The time granularity is determined by your model's date range and configuration.

Cells

Cells contain the values at the intersection of rows and columns:

• Regular values - Calculated or entered values
• Override values - Manual overrides of calculated values
• Formula results - Computed from row formulas

Formulas

Formula Basics

Calculated rows use formulas to derive values from other rows. Formulas reference other rows by their code:

revenue * 0.3

This calculates 30% of the revenue row.

Formula Syntax

Formulas support standard mathematical operations:

• + Addition
• - Subtraction
• * Multiplication
• / Division
• () Grouping

Referencing Rows

Reference other rows by their code:

gross_revenue - discounts - refunds

Built-in Functions

• sum(...) - Sum of values
• avg(...) - Average of values
• max(...) - Maximum value
• min(...) - Minimum value

Formula Templates

Save commonly used formulas as templates:

• Gross margin calculation
• Customer lifetime value
• Churn rate formulas
• Growth rate calculations

Working with Data

Entering Values

For input rows, enter values directly in cells:

1. Click on a cell
2. Type the value
3. Press Enter or Tab to move to the next cell

Overriding Calculated Values

Override a calculated value with a manual entry:

1. Click on a calculated cell
2. Enter a new value
3. The cell is marked as an override

Overrides are useful for:

• Entering known actuals
• Adjusting forecasts based on external information
• Testing scenarios

Clearing Overrides

Remove an override to return to the calculated value:

1. Click on the overridden cell
2. Click "Clear Override"

Scenarios and Comparisons

Creating Scenarios

Model different outcomes by creating scenario models:

1. Create a new model
2. Set category to "Scenario"
3. Link to a baseline model
4. Adjust assumptions to model different outcomes

Scenario Types

• Optimistic - Best-case assumptions
• Conservative - Cautious assumptions
• What-if - Testing specific changes

Comparing Models

Compare multiple models side by side:

1. Open your baseline model
2. Click Compare
3. Select models to compare
4. View differences highlighted

Comparisons show:

• Absolute differences
• Percentage differences
• Variance analysis

Model Management

Locking Models

Prevent changes to finalized models:

1. Open the model
2. Click Lock
3. Locked models cannot be edited

Only the person who locked the model (or admins) can unlock it.

Official Models

Mark a model as the official company forecast:

1. Open the model
2. Click Set as Official
3. The official model is highlighted in the list

Only one baseline model can be official at a time.

Revisions

The system automatically tracks model changes:

• Each save creates a revision
• View revision history
• See who made changes and when
• Restore previous versions if needed

Revisions include:

• Snapshot of all data
• Change count
• Creator and timestamp

Collaboration

Ownership

Assign owners to models:

• Owner is responsible for maintaining accuracy
• Owners receive notifications about issues
• Owners can lock/unlock their models

Sharing

All organization members can view models. Edit permissions are based on:

• Ownership
• Role (Admin, Member)
• Whether the model is locked

Exporting

Export your models for external use:

Export Formats

• CSV - Raw data for analysis
• Excel - Full model with formatting
• PDF - Printable report format

What's Exported

• All rows and columns
• Calculated values (not formulas)
• Formatting and structure
• Model metadata

Best Practices

Model Design

• Start with clear assumptions (input rows)
• Build up to key metrics through calculations
• Organize with headers and hierarchy
• Use meaningful codes for formula clarity

Maintaining Models

• Update actuals regularly
• Review assumptions monthly or quarterly
• Document changes in descriptions
• Lock models when periods close

Scenario Planning

• Always have a baseline model
• Create 2-3 alternative scenarios
• Update scenarios when assumptions change
• Use comparisons for decision making

Formula Tips

• Keep formulas simple and readable
• Use intermediate calculations rather than complex formulas
• Document unusual calculations in row definitions
• Test formulas with known values