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