Investor question 49 of 50 · Risk, scenarios & the plan
“What would make you miss your plan?”
Short answer: the investor is really asking do you know your sensitivities? Answer in three steps: (1) name the drivers with the biggest effect; (2) give the size of the effect; (3) name the leading indicators you watch.
What they're really asking
Do you know your sensitivities? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Name the drivers with the biggest effect.
- Give the size of the effect.
- Name the leading indicators you watch.
An example answer
Organic growth, price and paid CAC move year-3 ARR most. We report all three monthly to investors.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
Blaming external factors only.
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Sensitivity Tables - Tornado. If you can open that tab and point to it, the follow-up question is easy.