Wellness Centre 5-Year 3 Statement Financial Projection Model

Description
MODEL OVERVIEW

A wellness centre is a facility or establishment that focuses on promoting and enhancing the overall well-being of individuals and typically offer a wide range of Fitness and Exercise programs (e.g. yoga, Pilates, HIIT) and services (e.g. nutrition, physiotherapy, counselling) aimed at improving physical, mental, emotional and spiritual health.

The purpose of this highly versatile and user-friendly Excel model is to prepare a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a for a startup or existing wellness centre generating revenue through the provision of fitness and exercise programs, wellness services and product sales.

The financial model includes 10 fitness and exercise categories and 10 service categories each with their own mix of direct expense requirements. The model also allows the user to model revenue and cost of sales from sale of products. The model allows includes indirect staff costs, marketing costs, other administrative costs, fixed assets, inventories, payables, borrowings, sales tax impacts, corporate tax and dividend distributions.

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.


KEY OUTPUTS

- 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:
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 fitness, exercise and service category and volume of services offered over time.
o Revenue and gross profit by product category presented in table and chart formats.
o Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
- Discounted cash flow valuation using the projected cash flow output.
- Breakeven analysis


KEY INPUTS

Setup Inputs:
- Name of business;
- Currency;
- First projection year and month;
- Naming for fitness and exercise categories, service categories, product categories, (in)direct staff, direct materials, direct expenses, marketing costs, staff costs, admin costs, fixed assets and borrowings;
- Sales tax applicability for services, products, direct costs, and other expenses and fixed assets.

Actuals Inputs:
- Opening balance sheet (for existing businesses);
- Income Statement actuals (for trend analysis);

Projection Inputs:
- Fitness and exercise program revenue including programs per week, capacity utilisation, program rates and direct costs.
- Services revenue including service schedule per week, capacity utilisation, service rates and direct costs.
- Product revenue including purchase quantity, cost price and mark-up;
- Direct expense inputs including direct expense per fitness, exercise and service category;
- Direct and non-direct 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.
- 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).


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_Dashboard’ and ‘o_DCF’.


KEY FEATURES

- 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 10 separate fitness and exercise programs and service categories and 10 product categories with their own unique direct 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 allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Fitness and exercise programs – 10 categories
o Services – 10 categories;
o Products – 10 categories;
o Staff costs – 5 direct categories and 5 non-direct categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed assets – 5 categories;
o Borrowings – 3 facilities
- Apart from projecting revenue and costs the model 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.


SUPPORT / MODIFICATIONS


We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website.


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.




ABOUT PROJECTIFY


We are financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial modelling 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 their financial projection and analysis requirements.