Generic Startup Financial Projection 3 statement Excel Model with Scenario Analysis

Description
PURPOSE OF MODEL

User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cash flow Statement) 5-year financial projection for a generic start-up business. The model allows financial projections across 3 scenarios and follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations


KEY OUTPUTS

The model is generic and not industry-specific. The key outputs include:
- Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for all 3 scenarios, 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 for each of the scenarios;
o Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item for each of the scenarios;
o List of key metrics including Average revenue growth, Average profit margins, Average return on assets and equity and Average Debt to Equity ratio and breakeven analysis for each of the 3 scenarios;
o Bar charts summarising income statement and Balance Sheet projections for each of the 3 scenarios;
o Variance analysis across the 3 scenarios with bar charts comparing: revenue, net profit, total assets and net assets for the 3 scenarios.


KEY INPUTS

Inputs are split into Income Statement and Balance Sheet Inputs. All 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 month;
- Naming of scenarios
- Naming for revenue streams, variable costs, staff costs, other expenses and fixed assets;
- Sales tax applicability for revenue streams, variable costs, other expenses and fixed assets.

Projection Inputs for each of the 3 scenarios:
- Revenue inputs including sales volume, sales prices and average credit terms offered;
- Variable cost inputs including variable cost per unit and average credit terms received;
- Other costs inputs including staff costs, marketing costs and fixed 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 including initial and subsequent equity investments


MODEL STRUCTURE

The model comprises of 11 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_Assump_S1', 'i_Assump_S2' and , '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' and ‘o_Dashboard’.

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 allows for a 5-year projection on a monthly basis and summarised on an annual basis;
- 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 ensure formula consistency and significantly 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):
o Scenarios – 3 scenarios
o Revenue streams – 10 categories;
o Variable costs – 2 per revenue category;
o Staff costs – 5 categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed Assets – 3 categories;
o Borrowings – 1 facility;
- Costs are split into: variable, fixed, staff and marking costs for better driver-based forecasting;
- Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends, sales tax and corporate tax;
- Business Name, currency, starting projection period are fully customisable
- Revenue, Cost and Fixed Asset descriptions are fully customisable;
- The model includes the possibility to start mid-way through the first projection year;
- 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

If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a private message or contact us on: [email protected]


ABOUT PROJECTIFY

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 ensure our customers are satisfied with any tools / models purchased and happy to assist with any questions or support required following or in advance of purchase.

We are 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.