Financial Forecasting AI Prompt

Act as a senior financial analyst and CFO advisor with 20+ years of experience in corporate finance, financial modeling, and strategic planning across multiple industries. Create a comprehensive 3-year financial forecast for [COMPANY NAME] in the [INDUSTRY] sector, with current annual revenue of [CURRENT REVENUE] and [NUMBER OF EMPLOYEES] employees. Provide detailed analysis including: **1) REVENUE FORECASTING & GROWTH PROJECTIONS** - Historical revenue analysis and trend identification - Monthly and quarterly revenue projections for Years 1-3 - Revenue stream breakdown by product/service lines - Market growth assumptions and competitive positioning - Seasonal adjustment factors and cyclical considerations - Customer acquisition cost (CAC) and lifetime value (LTV) modeling - Pricing strategy impact on revenue growth **2) COMPREHENSIVE EXPENSE MODELING** - Cost of Goods Sold (COGS) projections with margin analysis - Operating expense breakdown by category: * Personnel costs (salaries, benefits, equity compensation) * Sales & Marketing expenses (advertising, events, commissions) * General & Administrative costs (legal, accounting, insurance) * Technology & Infrastructure (software, hosting, equipment) * Facilities & Operations (rent, utilities, maintenance) - Fixed vs variable cost classification - Expense scaling factors based on revenue growth - Department-level budget allocations **3) CASH FLOW ANALYSIS & WORKING CAPITAL** - Monthly cash flow projections showing: * Operating cash flow calculations * Free cash flow after capital expenditures * Working capital requirements and changes - Accounts receivable and payable modeling - Inventory turnover and cash conversion cycle - Seasonal cash flow variations - Minimum cash balance requirements - Financing needs identification and timing **4) CAPITAL REQUIREMENTS & FUNDING ANALYSIS** - Capital expenditure (CapEx) planning by category - Asset depreciation schedules and useful life assumptions - Return on invested capital (ROIC) calculations - Debt capacity analysis and optimal capital structure - Equity financing requirements and dilution impact - Break-even analysis (units and revenue) **5) FINANCIAL RATIOS & PERFORMANCE METRICS** - Profitability ratios: Gross margin, EBITDA margin, Net margin - Liquidity ratios: Current ratio, Quick ratio, Cash ratio - Efficiency ratios: Asset turnover, Inventory turnover - Growth metrics: Revenue CAGR, Employee productivity - Industry benchmark comparisons - Key Performance Indicators (KPIs) dashboard **6) SCENARIO ANALYSIS & RISK ASSESSMENT** - Three scenario models (Conservative, Base Case, Optimistic): * Revenue assumptions for each scenario * Cost structure adjustments * Cash flow implications * Break-even timeline variations - Sensitivity analysis on key variables: * Customer acquisition rates * Average deal size changes * Churn rate impacts * Market growth variations - Risk factors and mitigation strategies **7) STRATEGIC RECOMMENDATIONS & ACTION PLAN** - Financial milestone targets and achievement timelines - Funding strategy recommendations with timing - Cost optimization opportunities - Revenue acceleration initiatives - Cash management strategies - Board presentation summary with key insights **OUTPUT REQUIREMENTS:** - Present all financials in professional table format - Include month-by-month projections for Year 1 - Quarterly projections for Years 2-3 - Highlight key assumptions and dependencies - Provide executive summary with critical insights - Include charts and graphs descriptions for visualization - Flag any areas requiring additional data or validation **VARIABLES TO REPLACE:** - [COMPANY NAME]: Insert company name and brief description - [INDUSTRY]: Specify industry sector and market characteristics - [CURRENT REVENUE]: Annual revenue figure with currency - [NUMBER OF EMPLOYEES]: Current headcount and growth plans Request any clarifying information needed to provide the most accurate and actionable financial forecast.