Power Prompting Key Principles
Specific financial context gets you better models. Elkar understands finance - use the right terminology and be precise about your assumptions.Structure First
Define the model framework before diving into calculations
Layer Complexity
Build step-by-step rather than asking for everything at once
State Assumptions
Be explicit about your financial assumptions and methodology
Format intentionally
Be precise about layout, colors, and structure to guide the AI toward a professional result
Iterate and Refine
If a response isn’t exactly what you wanted. Keep refining your prompt with more details. Elkar’s chat is designed to help you iterate. Ask for clarifications, tweaks, or new directions anytime!
Good vs. Bad Financial Prompts
- DCF Models
- Forecasting
- Valuation
- LBO
- M&A
❌ Vague: “Build a DCF model”✅ Specific: “Build a 5-year DCF model for a SaaS company with current revenue of $50M, 25% growth rate declining to 15%, and 20% EBITDA margins expanding to 30%”Why it works: Timeframe, company type, key assumptions, growth trajectory
Use Financial Terminology
Margins & Growth
✅ “EBITDA margins expanding 200bps annually”✅ “Net working capital as % of revenue”
Valuation & Returns
✅ “Terminal value using exit multiple of 12x EBITDA”✅ “WACC of 10% with 30% debt/equity ratio”
Live Demo: Building a DCF
Get Advanced DCF Prompt
Build a full, professional-grade DCF model for a SaaS company with monthly forecasts over 2 years. Include detailed assumptions (subscription revenue by cohort, churn, CAC, headcount ramp, salaries, margins, taxes, capex, working capital). Structure the model across cleanly separated sheets: Inputs, Monthly Forecast, Free Cash Flow, Valuation (with both perpetuity and exit multiple), Sensitivity Analysis, and a Summary Dashboard with charts (FCF, valuation waterfall, CAC payback). Format using standard financial modeling best practices: clean layout, blue input cells, consistent formatting, borders, and named ranges. Include transparent formulas, dynamic links to Inputs, and annotate key calculations for clarity like in investment banking modelsQuick Reference
Essential Financial Terms
Essential Financial Terms
- EBITDA - Earnings before interest, taxes, depreciation, amortization
- WACC - Weighted average cost of capital
- FCF - Free cash flow (operating cash flow minus capex)
- LTV/CAC - Lifetime value to customer acquisition cost ratio
- ARR - Annual recurring revenue
Model Structure Best Practices
Model Structure Best Practices
- Blue cells for inputs and assumptions
- Black cells for calculations
- Separate sheets for inputs, calculations, outputs
- Named ranges for key variables
- Consistent formatting throughout
