Last version published: 05/09/2020 06:55
Publication number: ELQ-96509-2
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Marketing Business Financial Projection 3 Statement Model with Scenario Analysis
3 statement 5 year rolling financial projection Excel model for marketing business with scenario functionality
Financial Modelling SolutionsFollow 168
PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing Marketing business generating revenue by assisting clients to actively promote and sell products and services.
The model allows the user to model both one-off and recurring marketing services offered. It allows to model up to 15 categories of one-off services and up to 8 categories of recurring services (can be extended). The model includes variable costs for each product categories as well as staff costs, marketing costs and other administrative costs to run the business.
The model contains a scenario functionality with the possibility to model financial projections under 3 separate scenarios.
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 projected 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 for each of the 3 scenarios
- Dashboard with the following outputs for each of the 3 scenarios:
o Summarised projected Income Statement and Balance Sheet;
o Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
o List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average Debt to Equity ratio;
o Bar charts summarising income statement and balance sheet projections;
o Revenue by service category and volume of services offered over time presented in a table, pie-chart and bar-chart format
o Comparison of revenues, net profit and net assets by year and scenario.
- Discounted cash flow valuation using the projected cash flow output for each of the 3 scenarios
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.
- Name of business;
- First projection year and month;
- Scenario naming (eg Base case, best case and worst case);
- Naming for one-off and recurring service categories, marketing costs, staff costs, admin costs, fixed assets and borrowings;
- Sales tax applicability for products, variable costs, and other expenses and fixed assts.
- Opening balance sheet (for existing businesses);
- Income Statement actuals (for trend analysis);
Projection Inputs for each of the 3 scenarios:
- One-off service revenue inputs including average hours per service, fee per hour, additional rechargeable costs, volume of engagements/services and average credit terms offered;
- Recurring service revenue inputs including service price per month, client additions, cancellation rates per month and average credit terms offered;
- Staff cost inputs including staff numbers, average salary per full time position, average employer’s social security percentage of salary, average annual bonus and bonus payment months.
- Variable cost inputs including variable cost per service/engagement;
- Other costs inputs including marketing costs and admin costs;
- Sales and corporate tax inputs including rate and payment periods;
- Dividend inputs including amount (percentage of retained earnings) and frequency;
- Fixed assets including addition amounts and useful life;
- Borrowings including addition amounts and interest rate;
- Share capital additions;
- Discount rate inputs (for valuation calculation).
The model comprises of 13 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_Assump_S1' to 'i_Assump_S3'). 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.
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 as forecast periods become actual period;
- Timeline is split on a monthly basis and summarised on an annual basis;
- The model allows the user to model up to 23 separate marketing service categories with their own unique variable cost setup;
- The model is not password protected and can be modified as required following download;
- The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
- The model contains a scenario functionality with the possibility to model financial projections under 3 separate scenarios;
- The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Marketing Services – 15 one-off service categories and 8 recurring service categories;
o Other variable costs – 23 categories (1 for each service category);
o Staff costs – 8 categories;
o Marketing costs – 5 categories;
o Admin expenses – 15 categories;
o Fixed assets – 5 categories;
o Borrowings – 3 facilities
- Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
- Business name, currency, starting projection period 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;
- 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.
If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a message through the Eloquens site or contact us on: firstname.lastname@example.org
We are a small team of financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modelling guidelines and assist individuals and businesses with common financial planning and analysis processes.
We are keen to make sure our customers are satisfied with the tools / models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.
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Prepartion of a 5 year 3 statement (Income Statement, Balance Sheet, Cash Flow Statement) Financial Projection Model for a new or existing marketing business under 3 scenarios