One of the more interesting pieces of revenue logic that I stumbled upon came about when building this driving range model. This was in regards to capacity attainment in each of the 12 months of the year and how that changes over time.
Assumptions are configurable in order to account for busier and less busy months in a given year (seasonality). The logic starts with the maximum possible golfers that could buy a bucket of balls in a given day. This is based on the total driving range slots (which can scale over time if needed), the average amount of time it takes a golfer to get through a bucket of balls, and the total hours the driving range is open per day. This results in a maximum potential capacity attained per month and a percentage of that is entered for the actual number of transactions achieved per month.
After these revenue assumptions are input, the next step is variable startup costs. This is not something I have ever done, but in this case, it made a lot of sense to tie relevant startup costs to the number of driving range slots. For example, the number of dividers, mats, tees, etc.. will all be dependent on the number of driving range slots added at startup and over time.
I also left slots to enter one-time startup costs and future Capital Expenditures (like ball dispensers, ball gathering machines, and washers among other things related to a driving range).
For on-going operating costs there are plenty of input rows to account for things like payroll, utilities, property taxes, etc… as well as the start month for each of these.
After all assumption tabs are filled out, the model will auto-populate 10 years of financial performance. The user can view monthly and annual summaries as well as high-level financial line items / EBITDA / Cash flow. There are inputs to account for an exit month prior to the 10 year period ending as well as financing from debt and investors/owners. Based on this, there is a distribution summary showing the split of cash flow to investors/owners if applicable. The resulting IRR, Equity Multiple, DCF Analysis, and ROI will be displayed for each pool.