Tailoring Business Financial Model – Dynamic 10 Year Forecast

Description
A tailoring business specializes in personally fitting garments to each customer’s needs. Tailors also help customers make style decisions and offer alterations to existing garments.
This Financial Model presents a business scenario of a startup or operating Tailoring Business and is a flexible tool for owners to calculate operating activities and analyze business profitability.
It includes assumptions and calculations of Starting Expenses (in the case of a startup studio), Customer Acquisition Metrics (location and paid marketing), Revenue assumptions from General Alternations and Bespoke Tailoring, Direct Costs, Payroll, OpEx, Financing through Debt & Equity and Valuation & Exit Multiples in case of a potential sale of the business.
The model is dynamic and allows users to select the desired forecasted Years (1 to 10). Output Reports & Charts are dynamically updated based on the selected forecast period. The template structure follows Financial Modeling Best Practices principles and is fully customizable.
Detailed instructions for the functionality of the model are included in the Excel file.


Model Inputs and Setup Reports:
• General Setup Assumptions incl. Starting Expenses (in case studio is a startup), Customer Acquisition, Revenue and Costs Assumptions and Financing (Debt & Equity)
• Yr1 Payroll, incl. Hiring Schedule of FTEs per Position/Month, Salary per FTE, Payroll Taxes & Benefits, and two different Bonus Schemes.
• Yr1 OpEx and Annual Capex incl. Depreciation Schedule
• Yr1 Revenue and Cost of Services Calculations for General Clothing Alternations and Bespoke Tailoring
• Forecast Scenarios


Starting Year Output Reports:
• Yr1 Budget and Actual Reports
• Yr1 Profit & Loss Statement Summary with a dynamic functionality to include Actual figures for the current and preceding months and budget figures for the rest.
• Yr1 Budget vs. Actual Variance Analysis at a YTD and Monthly level


Forecast Output Reports:
• Annual Financial Statements (3 Statement model)
• Break-Even Analysis
• KPI’s & Financial Ratios, including several Profitability, Efficiency, Liquidity, and Leverage (Solvency) Ratios
• Performance Dashboard
• Business Valuation, including DCF Model, Terminal Value, Unlevered, and Levered Cash Flows, Return Metrics (NPV, EV, IRR, MOIC, ROI, etc.), and Sensitivity Analysis
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Professional Executive Summary (can be used for investment decisions)


Help & Support
Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
Whether you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you experience difficulty using this template and cannot find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and explain your specific needs briefly.