How Hemrock models are built

Principles

Every Hemrock model follows the same set of rules. Once you know them, every product is easier to read and edit.

• Inputs, calculations, and presentation are separated. Colors, sheet structure, and notes signal where to enter values and where not to.
• Illustrative defaults. Every assumption is a starting number. Change them to fit your business.
• Flexible revenue logic. Revenue structures handle a wide range of businesses. When they don't fit, delete the revenue section and bring your own model. That's normal.
• Accounting-agnostic. Cash or accrual, GAAP, IFRS, or other standards — the math holds.
• Templates are a starting point. Expect to customize. Every cell is open.
• Notes explain intent. Formulas handle edge cases across many use cases. If you're building your own version, you may not need the same complexity.

Structure and formatting

Models follow the FAST Standard with small deviations for broader accessibility, and match the principles of good financial models.

• Colors signal intent. Blue for inputs, black for formulas. That's the core visual contract.
• Sheet order is deliberate. Presentation sheets (Summary, Key Reports) come first so readers get the big picture on open. Deeper detail follows: Get Started, Forecast, Statements.
• Notes are a feature. Row-by-row notes explain what each line does. Delete them when you share with stakeholders if you prefer — but notes are a signal of model quality.
• Formatting is flat. Minimal styling means you can layer your brand on without fighting the defaults. Colors and formatting →

You don't need Excel expertise. Pay attention to formatting and notes. To brush up, see the most common functions.

Typical sheets

Most models share a similar backbone:

• Informational (README, License, Disclaimer, Additional Tools, Model Comparison, Changelog) — hide or delete without affecting the model. Keep Changelog hidden rather than deleted so you can compare versions later.
• Get Started — model-level inputs that drive everything else.
• Forecast — detailed assumptions and calculations. Intentionally a hybrid input/calculation sheet so you can make targeted changes over time.
• Presentation (Summary, Key Reports, Statements) — pre-built outputs for sharing and reviewing.

Product-specific setup guidance lives on each product's dashboard page after you log in.

Modularity

The Standard Financial Model separates into two components:

1. Growth and revenue (Revenues + related inputs on Get Started)
2. Financial reporting (everything else — expenses, hiring, statements, cap table)

Setting up revenue for your business is usually the hardest part. See Revenues. If the prebuilt revenue structure doesn't fit, delete it and bring your own.

• The Runway Tool skips prebuilt revenue — add calculations directly.
• Component models — Ecommerce, SaaS, unit economics — handle one revenue type and can plug into any base template.
• Venture capital models share the same Forecast sheet, varying mainly in portfolio construction logic.

Workflow

Building a base model from a template takes about 2 hours. The process is iterative:

1. Write down the questions. Before opening the model, note the main things you want the model to tell you and the key numbers you expect. Keep it as a reference.
2. Start with baseline assumptions. Pull from your understanding of the business and comparable metrics.
3. Iterate toward expected outcomes. Tune growth, margins, and cash needs. Compare against your baseline.
4. Review. See how to review a model for a structured approach, especially if you're working backwards from an output.

Preparing for stakeholders

Models exist to support decisions, so you'll share them.

• Start with the presentation sheets. Summary and Key Reports appear first in the workbook — readers get the big picture on open. Deeper detail is on Get Started, Forecast, and Statements.
• Send a PDF first for external parties. Investors and lenders can review the story before you hand over a live model.
• Don't lock models. Investors want to change inputs and test sensitivities. A locked model signals low confidence in the numbers.

Edit with AI

Every model is built to be read and edited by Claude, ChatGPT, and other AI tools. Blue/black cell conventions, documented rows, and consistent sheet structures give AI enough context to edit without hallucinating.

• Context primer — paste before any AI edit.
• Prompt guide — ready-made prompts for setup, customization, investor prep.
• MCP server — connect Claude Desktop or Claude.ai directly.
• Verify before trusting. AI introduces subtle errors (wrong references, hard-coded values, confused metrics). The prompt guide includes sanity-check prompts to catch these.

---

Stuck on something specific? Head to Support.