General Retail Model - Dynamic Scaling Logic

Description
I'll start with the question that spurred this financial model to be created: How can I show different retail locations being developed and launching over a given period of time (with different start dates), while still having unique ticket counts and growth in the first 12 months per location based on a starting max capacity? And, then having an annual growth rate applied to the stabilized ticket count?The fun thing about excel is the idea of matrix building. This is a great way to make a lot of variables dynamic while still being able to show all the effects on the same timeline.

With this model, the user can input the following assumptions on a location basis (up to 25) and the result will be the total sales revenue, expenses, cash flow/cash requirements, IRR, ROI, and equity multiple:

1. The start month.
2. The average value per ticket (up to 3 averages)
3. Max sale count per day (starting capacity)
4. The percentage of max capacity attributed to each of the average ticket values
5. Active days per month
6. Development/acquisition cost per location
7. Month 1 through 12 percentage of max capacity reached (happens per the start month dynamically)
8. Percentage that actual sales count goes up by until max capacity is reached from month 1 - 12
9. Annual capacity increase (year 2 to 5 after first 12 months)
10. Labor count in month 1 - 12
11. Average fully loaded hourly wage per laborer
12. Growth of labor in years 2 - 5.
13. Average hours per week per laborer
14. Cost of Goods Sold % per each of the 3 average values per ticket (sale)

Based on all of the above, a matrix is used (a bunch of them) in order to do all the calculations to show what kinds of sales revenue and gross profit can be attained in the first 60 months of this endeavor. There is also dynamic logic for fixed costs i.e. the user determines the start month of the expense, the description, and the monthly amount in each of the 5 years.

In case these are operations with heavy up-front inventory requirements, there is an input for months ahead of time inventory is purchased. Based on the total monthly cost of goods sold, this cash will be triggered to come out in the relevant month in advance. If it is not a huge outlay or the inventory doesn't need to be purchased in advance, the user can simply enter a '1' for this input. It is just important for determining how much cash is needed. This can be critical in planning out strategy for the first few launch years.

There are also inputs for startup costs and future capex, a general row for depreciation, and the possibility for an exit per an EBITDA multiple as well as debt financing. If anything is not applicable, it can be zeroed out without causing any errors.

Based on all of the above assumptions, a monthly P&L / cash flow detail will populate. This rolls into an annual summary as well as a high level executive summary for the main financial line items. Finally, a distribution tab was built to show a DCF analysis of the project as a whole as well as the investor and owner/operator depending on how all of the equity was attained (inputs exist to drive those assumptions).

15 visuals were built to see the actual performance over a 60 month period. One of the best uses of this model is to understand the timing of cash flows and potential profitability and returns that can be produced by opening up multiple retail locations over time.

This template is also included in two bundles:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic
- Industry-Specific Financial Models Bundle: https://www.eloquens.com/tool/lrNGt2jL/strategy/business-plans/business-sector-bundle-35-bottom-up-financial-models