So far in Attivo’s “Navigating Startup Growth” series, we have discussed the importance of having a financial model, leveraging revenue modeling for long-term success, and started a conversation on Top Down and Bottom Up modeling techniques. 

In this post, we’ll explore how Attivo uses Top Down and Bottom Up modeling techniques alongside our Vision Strategy Execution Framework to develop and deliver clients an actionable, well-reasoned financial plan.

Two Modeling Techniques: Top Down and Bottom Up 

Top Down and Bottom Up modeling techniques are mutually reinforcing. By synthesizing both into a comprehensive approach, we can improve forecasting accuracy and increase our confidence in the financial model we build.
 

A Top Down approach cascades from high-level assumptions to inform forecasts. With a Top Down approach, we define key milestones, metrics (i.e., ARR and cash runway), and constraints (i.e., Sales Capacity) and work down into the operational details needed to support and successfully achieve the desired outcome. 

A Bottom Up approach builds a financial model based on specific operational metrics. It starts with understanding the tasks and deliverables needed to go to market and acquire customers successfully. As we build on our understanding of what different teams require, we collect this information to support our key milestones, metrics, and constraints.
 

Vision Strategy Execution and Top Down/Bottom Up at Work

At Attivo, we have developed the Vision, Strategy, Execution Framework to help deliver actionable, well-reasoned financial plans that support founder vision, provide metrics to measure achievement, and create team alignment across a client’s business.

When we combine this framework with Top Down and Bottom Up modeling techniques, we have a process for approaching any topic related to the business: [product pricing, revenue model, sales hiring, compensation planning, go to market strategy]. This allows us to build detailed financial models and plan strategically for the future of the companies we work with. 

Vision

We help founders turn ambitious goals into actionable financial plans using our Vision, Strategy, Execution Framework. Take an early-stage SaaS startup aiming for $10M in ARR, a compelling vision that will influence everything from sales hiring to customer success. We apply Top Down modeling to test whether the goal aligns with market size, pricing potential, and realistic share of the addressable market. When paired with Bottom Up analysis, such as calculating how many customers are needed based on actual sales capacity and conversion rates, we help clients validate or refine their vision before investing in execution.

Strategy

Once a vision is validated, strategy defines the plan to achieve it. Using our $10M ARR goal, we can explore product pricing, customer segmentation, and sales structure. For example, if the product is priced at $100,000, a Top Down approach might suggest targeting enterprise clients, but a Bottom Up assessment could reveal that the market only supports a $10K price point. That shift changes the sales strategy entirely, from team structure to ideal customer profile, demonstrating how these dual modeling techniques help align strategic assumptions with operational feasibility.

Execution

Execution brings the vision and strategy to life within real-world constraints, including budget, headcount, and timelines. Bottom Up modeling plays a key role here, ensuring team-level plans match available resources. For instance, department leaders might request new hires or tools, which we evaluate against the cash runway. Through iterative conversations, we guide tradeoffs and ensure execution plans are financially sound. 

At each stage of the Vision, Strategy, Execution process, Attivo leverages Top Down and Bottom Up techniques to stress-test plans and drive confident decision-making.

Ready to Level Up Your Decision-Making?

Attivo’s FP&A team works alongside founders and leadership teams by providing valuable data and strategic insights to aid their decision-making. By working with a team of experienced FP&A professionals, leadership teams can make informed choices, allocate resources wisely, and guide the growth of their business. Our FP&A team can support fundraising, build annual plans, establish key metrics, provide budget v.s. actual reporting, perform deep-dive financial analysis, and provide other services that help founders scale their business.

 

Don't let guesswork guide your growth—partner with Attivo to develop a robust financial model tailored to your startup's needs. Contact us now and begin your journey to more innovative, effective decision-making that will transform your strategic vision into actionable insights for success.