Cleaning, Financial Model, Service Businesses

5-year Financial Projections, Annual Recurring Revenue (ARR), Average Order Value (AOV), Budget, Budgeting, Business Template, Cap Table, Cash Flow Analysis, Cash Flow Projections, Cash-on-Cash Multiple, CFO, Churn, Controlling, DCF Model, Discount Rate, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Statements, Forecasting, Income Statement, Investment Multiple, Investor Cash Flows, IRR (Internal Rate of Return), Joint Venture, Monthly Recurring Revenue (MRR), NPV (Net Present Value), Private Equity, Pro-Forma, Return on Invested Capital (ROIC), Return on Investment (ROI), Revenue Projections, Sensitivity Analysis, Staffing, Startup Financial Models, Subscriptions, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, VC Valuation, Venture Capital

Video Overview:

This financial model will help in generating a comprehensive pro forma for any general cleaning services business for commercial and/or residential customers. It starts with two separate revenue stream configurations:

1. Recurring contracts – Lets the user define the count of new customers onboarded (up to 3 types) per month, the average contract length, average value of a contract, and the retention rate at renewal. Additionally, for each customer type, the user can define the count of service workers required per contract per month and their salary. There are up to two service worker types that can be configured for each customer type. There are even advanced inputs such as the average percentage that the average contract value goes up per each renewal.
2. Fixed fee – Lets the user define the count of jobs completed per month (up to 3 types) per month, the average price charged per job, and the average cost of materials / labor per job

The user can configure both revenue streams or just one of them. The model will run for up to 5 years and show the resulting revenue, costs, and cash flow over time. Additional inputs for the pro forma include fixed operating costs, one-time startup costs, capital expenditures / depreciation, and an option to sell at the end of the period based on a trail 12-month revenue multiple.

Output Reports (automatically update as you change the assumptions to fit your business case):

• Monthly and Annual Income Statement, Balance Sheet, and Cash Flow Statement
• Monthly and Annual Pro Forma detail (granular view of all components of EBITDA and cash flow)
• IRR, Total ROI, Equity Multiple, and DCF Analysis
• KPIs for recurring contracts
• Annual Executive Summary
• Visualizations

The model is great at testing various contract pricing scenarios, volume of jobs, customer retention (for recurring service contracts), and variable cost amounts in order to see what is financially feasible.

For the investment schedule of who is paying for startup costs / burn, the user can choose to use a combination of owner/operator capital, outside investor capital (for joint ventures), and/or debt. This is all configurable and you can see details about how to do so in the video.

If you want this and more financial models, you can download all the templates I have ever built in one large bundle here: https://www.efinancialmodels.com/downloads/all-my-financial-models-spreadsheets-templates-and-tools-120-421052/