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PURPOSE OF MODEL

 

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 startup or existing business generating revenue from selling subscription products/services.

 

The model allows the user to model up to 5 different subscription products/services. The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

 

 

KEY OUTPUTS

 

The key outputs include:

  • Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a quarterly 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;
    • Chart presenting revenue mix and total users per month
    • Gross profit by income source.

 

 

KEY INPUTS

 

Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

 

Setup Inputs:

  • Name of business;
  • Currency;
  • First projection year and quarter;
  • App names, variable costs, staff cost, fixed costs, fixed assets and borrowings;
  • Sales tax applicability for revenue and cost categories;

 

Actuals Inputs:

  • Opening balance sheet (for existing businesses);
  • Income Statement actuals (for trend analysis);

 

Projection Inputs:

  • Revenue
    • New Users;
    • Free trial to paid user conversion rate;
    • Monthly, annual, quarterly subscription mix;
    • Renewal rates;
    • Subscription prices.
  • Variable Costs including:
    • Cost per app sale;
    • Annual fees per app;
  • Other cost inputs including
    • Marketing costs
    • Staff costs  
    • Other costs
  • Sales and corporate tax inputs including rate and payment periods;
  • Dividend inputs including amount or percentage of retained earnings and frequency;
  • Fixed Assets including addition amounts and useful life;
  • Borrowings including addition/redemption amounts and interest rate;
  • Share Capital additions.

 

 

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’.

 

System tabs include:

  • A 'Front Sheet' containing a disclaimer, instructions and contents;
  • A Checks dashboard containing a summary of checks by tab.

 

 

KEY FEATURES

 

Other key features of this model include the following:

  • The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
  • The model is not password protected and can be modified as required following download;
  • 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 from month to month;
  • Timeline is split on a monthly basis and summarised on an annual basis;
  • Costs are split into: variable and fixed for better driver-based forecasting;
  • The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
    • Subscription Products – 5 products;
    • Variance costs – 5 categories (1 for each subscription product)
    • Staff costs – 8 categories;
    • Marketing costs – 5 categories;
    • Other expenses – 15 categories;
    • Fixed Assets – 5 categories;
    • Borrowings – 3 facilities;
  • Apart from projecting revenue and costs the model includes the possibility to model inventory, deferred income, payables, fixed assets, borrowings, dividends, corporate tax and sales tax;
  • The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
  • Business name, currency, starting projection period are fully customisable;
  • Revenue, cost, fixed asset and Borrowing category descriptions are fully customisable;
  • 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 hello@useprojectify.com

Subscription Business Financial Projection - Excel Models

€49.00Price
  • https://youtu.be/laAmn1u2CfU

  • 1 Populated Excel Model and 1 Unpopulated Excel Model

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