November 7, 2025
When you’re navigating uncharted waters — whether that’s launching a reef restoration startup or designing a seaweed carbon capture pilot — your financial model is your tide chart. 🧭
You can have courage, creativity, and saltwater in your veins, but without a model, you’re sailing blind. Every successful voyage — from an ocean crossing to a conservation project — begins with a chart. Financial modeling is just that: your map beneath the waves.
And yet, mention “financial model” to many ocean founders and you can almost hear the collective splash of people diving overboard. Maybe it feels too technical. Too corporate. Too dry. But here’s the truth: a good model isn’t about numbers for numbers’ sake — it’s about storytelling. It’s how you translate your mission into measurable tides of impact and sustainability.
So grab your compass — let’s explore the ten most common models that help businesses of all kinds (yes, even ocean innovators) chart their course.
⚓ The 10 Financial Models
Each of these models serves a unique purpose, whether you’re valuing your coral nursery, planning a merger of marine labs, or forecasting the cost of your next research voyage. Think of them as the tools in your ocean startup’s navigation kit.
1. Three-Statement Model — The Anchor
Your most basic, yet most essential map: income statement, balance sheet, and cash flow. They’re all tied together, so one current shifts the others. This is your foundation — learn it well, and you’ll always know whether your ship is seaworthy.
2. Discounted Cash Flow (DCF) Model — The Telescope
Used to see what’s ahead on the horizon. By estimating future cash flows and “discounting” them back to today, you can find your startup’s present value. It’s like gauging how far the storm is — and how strong your sails are.
3. Merger Model (M&A) — The Confluence
When two rivers (or companies) meet, you’ll need to calculate what that new flow looks like. This model helps you understand the financial effects of joining forces — including synergies, costs, and the ripple effects on valuation.
4. Initial Public Offering (IPO) Model — The Lighthouse
Used when you’re ready to shine your light to the world — or rather, the market. This model estimates what investors will pay when your company “goes public.” Just remember: even lighthouses need strong foundations.
5. Leveraged Buyout (LBO) Model — The Deep Dive
This one’s for the financial divers. It layers debt and equity to acquire a company — complex, high-pressure, and not for shallow waters. Common in private equity, rare in coral restoration (and for good reason).
6. Sum of the Parts Model — The Reef Network
Each reef structure (or business unit) has its own value. Add them up — then subtract liabilities — and you’ll get your total ecosystem worth. It’s the biodiversity of finance.
7. Consolidation Model — The Estuary
Multiple streams flow into one body. If your organization has several branches, this model helps you see the whole picture — one healthy, connected system.
8. Budget Model — The Tide Table
Used by financial planners and analysts to forecast spending for the months (or years) ahead. Think of it as your “expected tide times” — helping you plan for calm seas and storm surges alike.
9. Forecasting Model — The Weather Report
Similar to a budget, but focused on predicting the future. This model uses past and present data to project your financial weather — whether sunny growth or choppy headwinds.
10. Option Pricing Model — The Compass Rose
Two main types: the Binomial Tree and the Black-Scholes. These are mathematical models that value options — the right to buy or sell assets at set prices. Less about tides, more about trade winds.
🌊 Why Founders Should Care
Financial models aren’t just for Wall Street. They’re for coral farms, climate-tech pilots, kelp entrepreneurs, and anyone turning blue-sky ideas into ocean-positive impact. A model helps you:
- Understand your current position and cash flow
- Predict what’s ahead, from funding cycles to research costs
- Communicate clearly with investors and partners
- Align your mission with sustainable growth
In other words, your model is how you translate your ethics into operational reality. It’s how you show that purpose can be profitable — and that healing the planet can also sustain a team.
🪸 Tips for Calm Seas and Clear Numbers
🌤️ Start simple. Your first model doesn’t need to rival a NOAA database. Begin with what you know — revenue, costs, cash — and expand from there.
⚓ Stay grounded in your mission. Financial sustainability and ecological sustainability go hand in hand.
🌊 Test your tides. Run “what if” scenarios. What if your grant delays six months? What if your pilot reef costs double?
🤝 Ask for help. Share your model with mentors or peers. Even the best navigators check their charts with others before setting sail.
🧭 Final Thoughts
Building a financial model isn’t just an exercise in math — it’s an act of stewardship. It helps you see your venture not as a storm to survive, but as a system to understand.
Because at the end of the day, financial modeling is oceanography for business: a way to read the currents, respect the forces at play, and navigate toward a horizon worth reaching. 🌅
So next time you open that spreadsheet, remember — you’re not crunching numbers. You’re charting a voyage.
This post was inspired by an article by Mark Birch.