PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of a 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing business operating coworking spaces generating income from renting out desk and office spaces and other ancillary income.
The excel model allows the user to model up to 3 coworking locations with up to 15 coworking space types (e.g. hot desk, fixed desk, private office etc.). It also allows the user to model the lease and renovation (CAPEX and OPEX) costs of commercial properties being converted into coworking spaces.
The model also allows for the modelling of other income (e.g. food and drink sales, events etc), operating expenses per location, staff costs, taxes, dividends, loan facilities and changes in equity.
The model follows good practice financial modelling principles and includes instructions, line-item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the forecasted cash flows.
The key outputs include:
- Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across up to 5 years and summarised on an annual basis.
- Dashboard with:
- Summarised projected Income Statement and Balance Sheet
- Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
- List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio.
- Bar charts summarising income statement and Balance Sheet projections
- Revenue and expenses by location
- Key metrics by location including rental volume, average occupancy percentages, revenue and costs per square meter and per seat
- Discounted cash flow valuation using the forecasted cash flow outputs.
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations and conditional formatting to help users understand what the input is for and populate correctly.
- Name of business;
- First projection year and month;
- Naming for locations, coworking space types, operating expenses, staff costs, fixed assets and borrowings;
- Income and cost allocation by location
- Sales tax applicability for revenue, expense and fixed asset items.
- Opening balance sheet (for existing businesses);
- Income Statement actuals (for trend analysis);
- Location first rental month, first operation month, size, rental cost per square meter, renovation costs and transaction costs;
- Coworking space size, occupancy and price per month per seat
- Staff costs including number, annual wage, social security costs and bonus costs
- Operating expenses per location and total company basis;
- Capitalisable costs including addition amounts and useful life;
- Sales and corporate tax inputs including rate and payment periods;
- Dividend inputs including amount or percentage of retained earnings and frequency;
- Borrowings including addition amounts, interest rate and maturity date;
- Share Capital additions;
- Discount rate inputs (for valuation calculation).
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_Dashboard’ and ‘o_DCF’.
System tabs include:
- A 'Front Sheet' containing a disclaimer, instructions and contents;
- A checks dashboard containing a summary of checks by tab.
Other key features of this model include the following:
- The model follows good practice financial modelling guidelines and includes instructions, line-item explanations, checks and input validations;
- The model contains a flexible timeline that allows for a mix of Actual and Forecast period across a 5-year period. This allows projections to be easily rolled forward;
- Timeline is split on a monthly basis and summarised on an annual basis;
- The model allows the user to model 3 existing or new coworking locations each with their own unique renovation costs, rental income, operating expenses and coworking space setup;
- The model is not password protected;
- The model is reviewed using specialised model audit software to help ensure formula consistency and reduce risk of errors;
- The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
- Coworking Locations – 3 locations
- Coworking spaces – 15 types
- Other income – 8 categories
- Staff costs – 8 categories
- Operating expenses – 20 categories;
- Fixed Assets – 5 Categories
- Borrowings – 3 facilities
- Apart from projecting rental and other income and expenses the model includes the possibility to model depreciation of capitalizable costs, borrowings, dividends and corporate and sales tax;
- Business name, currency, starting projection period and volume units are fully customisable;
- Revenue, cost and fixed asset descriptions are fully customisable;
- The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
- Loan facilities allow for the amortisation of the principal balance across the full or remaining loan period up to the maturity date.
- The model includes instructions, line-item explanations, checks and input validations to help ensure input fields are populated accurately;
- The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.
MODIFICATIONS & SUPPORT
If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on email@example.com
Coworking Business Financial Projection - Excel Models
1 Populated Excel Model and 1 Unpopulated Excel Model