Modelling Assets - Spark Financial Model

This video covers modelling assets within the Spark Financial Model.

by David Liu
Financial forecasting tool for startups and small businessFollow

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Description
First, you have to turn on the switch and give your asset a name, e.g. coffee carts that we need to sell coffee. Similarly to indirect costs, the model allows a one-off, fixed input for asset acquisition, or a dynamic input linked to certain drivers. This will be set to 'ongoing,' and link it to the number of distribution channels, which, coincidentally is also the number of coffee carts. So for each additional distribution channel, we'll need to buy another vehicle. Let's say this costs $10,000 per cart, and this price increases by inflation each year. We then get to input how we expect this to be funded. This example uses a bank loan, so 100% funded by debt, so a particular debt tranche that we need to set up is selected. If we expect to use this vehicle for at least 6 years, by turning the switch on, you're allowing the model to automatically purchase another vehicle once this one reaches the end of its life.

Watch this video to run through the rest of the tutorial so that you can learn how to manage assets within the model.

If you'd like to purchase the Spark Financial Model, you can do so here:
https://www.eloquens.com/tool/bRzt7J/startups/financial-models/spark-financial-model

Length: 2 minutes 56 seconds

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