Simple Pro forma Forecast FAQ: What you need to know

It’s Friday afternoon. Your CFO just dropped a bomb: cash runway is low, and investors want a fresh forecast by Monday. You don’t have time for a 30-sheet model. You need a pro forma forecast — a clear, forward-looking projection built in minutes.

Let’s unpack what that means, why it matters, and how Runway delivers it exactly when you need it.

What is a pro forma forecast?

A pro forma forecast is a forward-looking financial projection — covering income, cash flow, and balance sheet. It’s based on assumptions, not past results. It’s built to answer questions, not fill in numbers.

Simple vs. Detailed pro forma forecasts:

• Simple: 2–4 key drivers, high-level view (MyOB)
• Detailed: multi-sheet, line‐by‐line modeling

They're perfect for early-stage planning, board updates, or quick scenario checks when you need answers fast. Financial Edge outlines the four key building blocks of any forecast: historical inputs, ratio building, assumption setting, and projection generation — ensuring consistency across simple and detailed models.

The goal is clarity and speed — giving you enough information to make informed decisions without getting lost in details.

Why use a simple forecast?

Simple forecasts shine when time is short and clarity matters:

• When you need rapid budgeting insights
• For testing multiple scenarios (best/worst case planning)
• When communicating financial projections to stakeholders
• During high-uncertainty periods when detailed forecasts might be misleading

Simple pro forma forecasts are ideal for quick scenario planning — simulating best- and worst-case outcomes in minutes.

They're particularly valuable when:

• You have limited historical data, as with startups or new product lines. 818 Tequila used simple forecasting during their hypergrowth phase.
• You need to make quick decisions. As Superhuman discovered, simple forecasting can improve decision-making efficiency by 50-100x compared to complex spreadsheet models.
• Your team is small and lacks dedicated financial analysts. Simple forecasts don't require specialized financial modeling expertise.

How to build one in Runway (in minutes)

Runway turns a pro forma bill into ROI:

1. Import your data: Connect Runway to your accounting system or upload historical data to establish your baseline. Runway automatically pulls in actuals, saving hours of manual work.
2. Select key drivers: Identify the critical metrics for your business — typically revenue growth rates, gross margins, and major expense categories. Define your forecast time horizon (monthly, quarterly, annual).
3. Generate projections: Use Runway's intuitive modeling tools to create projections based on your assumptions. The platform handles the calculations automatically.
4. Adjust and share: Fine-tune assumptions in real-time, collaborate with stakeholders, and export polished reports directly from the platform.

Tixel reduced their model build time from days to just 30 minutes using Runway's forecasting tools.

What should the forecast include?

Based on WAFEQ, a well-structured simple forecast includes:

• Revenue projections (with clear growth assumptions)
• Cost of goods sold (as a percentage of revenue or fixed amounts)
• Operating expenses (grouped into major categories)
• Cash flow projections (especially important for runway calculations)

When setting assumptions, focus on:

• Growth rates (use historical performance or industry benchmarks, avoid overly optimistic projections)
• Seasonality (account for predictable business fluctuations throughout the year)
• Margins (reflect your specific business model and industry standards)
• Sensitivity scenarios (build ±10% variations on key metrics to understand potential impact)

Maintain clear documentation of each assumption in your forecast. See guidance from Qubit Capital on crafting financial assumptions.

Runway's collaborative planning features make building and testing these assumptions straightforward.

Dos and Don'ts

Common pitfalls to avoid:

• Over-detailing: Adding too many line items defeats the "simple" purpose
• Static assumptions: Failing to update forecasts as new data arrives
• Overestimating revenue: Being too optimistic with growth projections

Best practices to follow:

• Keep assumptions transparent: Document every driver in Runway for auditability
• Update regularly: Use Runway's reporting features to compare projections against actuals
• Consider multiple scenarios: Develop different cases to account for uncertainty
• Focus on key drivers: Identify the variables that truly impact your business

You need clarity. You need speed. You need context.

A simple pro forma forecast in Runway gives you exactly that—when you need it most.

Book a demo to see it in action.