Coworking Business Financial Projection 3 Statement Model

Commercial Real Estate Properties, Financial Model, Investment, Real Estate, Serviced Office

5-year Financial Projections, Break-Even, Budget, Budgeting, Business Valuation, Cash Flow Projections, Dashboard, DCF Model, Debt Amortization, Discount Rate, Dividends, Excel, Financial Analysis, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Financing, Forecast, Forecasting, KPIs (Key Performance Indicators), Profitability Analysis, Rental Income, Return on Investment (ROI), Startup Financial Models, Tax Assets, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, WACC (Weighted Average Cost of Capital)

PURPOSE OF THE MODEL

Highly versatile and user-friendly Excel model for the preparation of a 5-year rolling 3 statement (Income Statement, Balance Sheet, and Cashflow Statement) financial projection with a monthly timeline for a startup or existing business operating coworking spaces generating income from renting out desk and office spaces and other ancillary income.

The excel model allows the user to model up to 3 coworking locations with up to 15 coworking space types (e.g. hot desk, fixed desk, private office, etc.). It also allows the user to model the lease and renovation (CAPEX and OPEX) costs of commercial properties being converted into coworking spaces.

The model also allows for the modeling of other income (e.g. food and drink sales, events, etc), operating expenses per location, staff costs, taxes, dividends, loan facilities, and changes in equity.

The model follows good practice financial modeling principles and includes instructions, line-item explanations, checks, and input validations, and incorporates a discounted cash flow valuation calculation using the forecasted cash flows.

KEY OUTPUTS

The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet, and Cash flow Statement) 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
o Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
o List of key ratios including average revenue growth, average profit margins, average return on assets and equity, and average debt to equity ratio.
o Bar charts summarising income statement and Balance Sheet projections
o Revenue and expenses by location
o Key metrics by location including rental volume, average occupancy percentages, revenue and costs per square meter and per seat
– Discounted cash flow valuation using the forecasted cash flow outputs.

KEY INPUTS

Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations and conditional formatting to help users understand what the input is for and populate correctly.

Setup Inputs:
– Name of business;
– Currency;
– First projection year and month;
– Naming for locations, coworking space types, operating expenses, staff costs, fixed assets, and borrowings;
– Income and cost allocation by location
– Sales tax applicability for revenue, expense, and fixed asset items.

Actuals Inputs:
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);

Projection Inputs:
– Location first rental month, first operation month, size, rental cost per square meter, renovation costs, and transaction costs;
– Coworking space size, occupancy, and price per month per seat
– Staff costs including number, annual wage, social security costs, and bonus costs
– Operating expenses per location and total company basis;
– Capitalisable costs including additional amounts and useful life;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount or percentage of retained earnings and frequency;
– Borrowings including addition amounts, interest rate, and maturity date;
– Share Capital additions;
– Discount rate inputs (for valuation calculation).

MODEL STRUCTURE

The model comprises of 9 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_Actuals’ and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Fin Stats’, ‘o_Dashboard’, and ‘o_DCF’.

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 good practice financial modeling guidelines and includes instructions, line-item explanations, checks, and input validations;
– The model contains a flexible timeline that allows for a mix of Actual and Forecast periods across a 5-year period. This allows projections to be easily rolled forward;
– Timeline is split on a monthly basis and summarised on an annual basis;
– The model allows the user to model 3 existing or new coworking locations each with their own unique renovation costs, rental income, operating expenses, and coworking space setup;
– The model is not password protected;
– The model is reviewed using specialized model audit software to help ensure formula consistency and reduce the 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 Coworking Locations – 3 locations
o Coworking spaces – 15 types
o Other income – 8 categories
o Staff costs – 8 categories
o Operating expenses – 20 categories;
o Fixed Assets – 5 Categories
o Borrowings – 3 facilities
– Apart from projecting rental and other income and expenses the model includes the possibility to model depreciation of capitalizable costs, borrowings, dividends, and corporate and sales tax;
– Business name, currency, starting projection period and volume units are fully customizable;
– Revenue, cost, and fixed asset descriptions are fully customizable;
– The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
– Loan facilities allow for the amortization of the principal balance across the full or remaining loan period up to the maturity date.
– 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 that summarises all the checks included in the various tabs making it easier to identify any errors.

The model comes in two versions: a fully-editable MS Excel and PDF Demo Version.

File types:
. xlsx MS Excel
.pdf Adobe Acrobat Reader

MODIFICATIONS

If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please send us a message.

ABOUT PROJECTIFY

We are a small team of financial modeling professionals with experience working in big 4 business modeling 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 modeling 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 are 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.

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