Last version published: 07/12/2020 09:09
Publication number: ELQ-39686-9
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Online Marketplace Start-up Excel Financial Model
BUSINESS START UP FINANCE PLANNING MODEL FOR SELLING THROUGH AMAZON, SHOPIFY ETC
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This financial planning model is for you if you would like to start selling your own or other peoples’ products into online marketing channels such as Amazon, eBay, Etsy and others. Using it you can plan to sell up to 20 products in up to 4 different sales channels.
The model is designed to help you ensure that you cover all the financial planning decisions that you have to make, accurately and quickly, even if you do not have any accounting knowledge.
Once completed, you can review the results produced by the model and decide on one of three options that you will then have:
• Launch your business on the current plan basis
• Make changes to your plans that will achieve your aims
• Scrap this plan and move onto another.
It should ensure that you avoid wasting a lot of your precious time and hard-earned money pursuing a course that takes you nowhere.
The analysis has a five-year planning horizon and will generate outputs on a monthly basis, but the good news is that you do not have to spend hours typing in data for each item across 60 columns of a spreadsheet.
This is because the analysis is structured around the standard six stages each start-up passes through which are:
• Pre-launch research – any costs incurred in finding more about the products, suppliers, market channel(s), competition.
• Business set-up – one off costs e.g. legal – that you may have to incur.
• Test marketing – first products into first channel(s) - usually at a loss as not bought in bulk.
• Full business launch – first products bought in bulk into first channel(s)
• Expansion – adding new products and more online channels
• Maturity – gradual expansion over the business’s later years.
This tool is specific for Online Channel sellers only.
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