E-Commerce Business
3-Statement Excel Financial Projection Model
Highly versatile and user-friendly Excel financial projection model for new/existing e-commerce business
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Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for a new or existing e-commerce business selling goods through an online store.
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The model also incorporates a discounted cash flow valuation calculation using the projected cash flows. The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.
KEY OUTPUTS
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Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for any of the 3 scenarios, presented on a quarterly basis across up to 5 years and summarised on an annual basis.
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Dashboard with:
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Summarised projected Income Statement and Balance Sheet
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Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
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List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio.
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Bar charts summarising income statement and Balance Sheet projections
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Gross Profit by product category in table and bar-chart format
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Discounted cash flow valuation using the projected cash flow output.
KEY INPUTS
Setup Inputs:
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Name of business;
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Currency;
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First projection year and quarter;
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Naming for product categories, variable costs, staff costs, other expenses and fixed assets;
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Sales tax applicability for revenue streams, variable costs, other expenses and fixed assets.
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Calculation basis for variable costs
Actuals Inputs:
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Opening balance sheet (for existing businesses);
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Income Statement actuals (for trend analysis);
Projection Inputs:
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Sales volume inputs including average website visits by month, conversion rate, sales mix by product category;
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Sales Price inputs including average price per product category and discounts offered per month
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Cost of Goods sold including cost per product category, safety stock and average credit terms received;
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Other variable costs inputs calculated either on total website visits, total sales volume, total items purchased or total revenue.
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Other costs inputs including staff costs, marketing costs and fixed costs;
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Sales and corporate tax inputs including rate and payment periods;
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Dividend inputs including amount (percentage of retained earnings) and frequency;
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Fixed Assets including addition amounts and useful life;
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Borrowings including addition amounts and interest rate;
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Share Capital additions;
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Discount rate inputs (for valuation calculation).
MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Charts’ and ‘o_DCF’.
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System tabs include:
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A 'Front Sheet' containing a disclaimer, instructions and contents;
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A checks dashboard containing a summary of checks by tab.
KEY FEATURES
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The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
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The model is not password protected and can be modified as required following download;
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The model contains a dynamic timeline that allows for a mix of Actual and Forecast period across a 5-year period allowing projections to be rolled forward with minimal effort;
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Timeline is split on a monthly basis and summarised on an annual basis;
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The model allows the user to model 10 separate product categories;
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Costs are split into: variable and other costs for better driver-based forecasting;
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The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
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Product Categories – 10 categories;
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Cost of Goods Sold – 10 categories (1 for each Product Category);
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Other Variable costs – 5 categories;
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Staff costs – 5 categories;
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Marketing costs – 3 categories;
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Other expenses – 10 categories;
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Fixed assets – 3 categories.
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Apart from projecting revenue and costs the tool includes the possibility to model inventories, payables, fixed assets, borrowings, dividends, corporate tax and sales tax;
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Business Name, currency, starting projection period are fully customisable;
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Revenue, Cost and Fixed Asset descriptions are fully customisable;
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The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
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The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
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The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.