The pro forma tells it all. Where the business will go, how big it can be, how we will get there, how much capital we need, what happens in all scenarios. Everything is based off of the commercial model.

Pro formas – when done right – have an incredible amount of logic and complexity. All angles simply must be considered.

It’s crucial to ensure everything aligns so that not only investors or partners will think your path is absolutely air-tight and well-thought-out, but equally so that you can look yourself in the mirror with clear confidence.

Working through the pro forma exercise will ensure that your cadence is likely and sound, that your cost and organization structure aligns and will achieve your goals, that your revenue stream rollout has logic, and that your business generally stands up. It also gives you complete clarity on the up- and downside of your business. It is the true bible of your business and for you as a CEO.