E-Commerce & Web Shops, Financial Model, IT Services, Manufacturing, Online Businesses, SaaS, Service Businesses

5-year Financial Projections, Accounting, Budget, Business Valuation, Cap Table, Cash Flow Analysis, Cash Flow Projections, Cash on Cash Yield, Cash-on-Cash Multiple, CFO, Cost Projections, DCF Model, Debt Amortization, Debt Schedule, Debt Service Coverage, Discount Rate, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Forecast, Forecasting, Income Statement, Investment Multiple, Investor Cash Flows, IRR (Internal Rate of Return), Know-How, NPV (Net Present Value), Pro-Forma, Return on Invested Capital (ROIC), Return on Investment (ROI), Revenue Projections, Scenario Analysis, Sensitivity Analysis, Startup Financial Models, Subscribers, Subscriptions, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, Venture Capital

Video Tutorial:

Recent Updates: Added output reports for monthly and annual Income Statements, Balance Sheets, Cash Flow statements, Cap tables, dynamic inventory purchasing logic, and formatting convention improvements.

This is a model I have been looking to quantify for quite a while now. It is the act of selling products and then up-selling a subscription service that is directly related to using that product. The best example is exercise machines that come with a monthly subscription that feeds workouts into the screen of your workout machine or some kind of app/program.

There are a lot of ways to test how you may build up a business in this way, such as getting your product as close to break-even as possible and then making all your money on the higher-margin subscription services.

This model projects out for up to 5 years on a monthly and annual basis. You have control over the exit month / exit valuation as well as if you want to bring on investor equity and/or debt as well as the % of the business you are going to give up to that equity.

There is granular logic for driving the cost of manufacturing the units and how much of the yearly product you think will sell in each month over 5 years to account for seasonality.

You can then set a conversion rate on the sold units per month that sign-up for the subscription service. They will then be subject to a monthly churn rate, and you can control the price per month over time as well as up to 3 separate pricing tiers and the number of sign-ups that join each tier.

There is then expense logic where you define the start month of the expense item and the amount over 5 years as well as variable costs that work in multiple ways (% of revenue and per user).

Because it is a subscription service in part, you still have the advanced metrics like CaC, LTV, months to pay back CaC, and the LTV to CaC ratio (measures the lifetime value of a customer compared to its acquisition cost).

High-level financial summaries are included as well as a distribution detail, DCF analysis, and tons of visuals.

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