Get a Dropshipping Business Plan template. Find out how profitable dropshipping business ideas could be. Check how to start dropshipping on amazon!
If you want to open your own business with minimal investment and risk — the best option for you is a dropshipping business plan. This direction of online trading is actively developing and growing — and not surprising because it doesn’t need to produce, purchase, and store goods. You should be able to sell well enough. You can choose any product and start trading right now through the site, landing page, or social networks. But it is not so simple as it sounds. You have to calculate the profitability of the venture before the actual launch.
Especially for this case, we have developed the drop shipping financial plan template. The market share drives model calculations. You can individually adjust the forecasted target market and expected percentage you will get.
Our model includes all the main financial reports and calculations that will be necessary when scaling up a business and increasing turnover. You will know your profit, how much money the company will generate in the next five years, how many sales required for the break-even point when the initial investment will pay off. The drop shipping business plan template is very flexible and easy to manage, everyone can understand it, and for this, it does not need to have specialized knowledge. You can devote much time to the main success factor of drop shipping business — sales, demand research, and following the latest trends in e-commerce.
Dropshipping Store Business Plan Excel Template Will Help You
– Setup a market size projection for 5 years
– Simulate a market share, % of total market size
– Plan traffic conversion into shoppers
– Set repeat buyers percentage rate
– Outline a sales seasonality
– Set up products, sales mix, price and COGS by years
– Analyze sales and profitability by product category
– Reckon a break-even point and return on investment
– Plan the costs for opening and operating activities
– Compute a Startup Costs of a Dropshipping Store
Benefits of using a Dropshipping Store Business Plan Excel Template
We do the math
Have all the features above ready with no formulas writing, no formatting, no programming, no charting, and no expensive external consultants! Concentrate on the task of planning rather than programming.
Convenient, All-In-One Dashboard
Includes all required forecasting reports, including assumptions, profit and loss accounts (income statements), cash flow projections & statements, balance sheets, performance reviews and summaries for months and years (incl. numerous graphs and KPIs).
Key Metrics Analysis
Creates 5-year financial projections, proforma, financial statements, and financial ratios in GAAP or IFRS formats on the fly.
Market Share Approach
To ensure longevity and profitability of your Dropshipping business, you need to focus on – the price of your products, and that’s up to you to decide. And the number of visitors. That’s where we can help you! The model is following a Market Share approach and gives you a clear Dropshipping visitors estimation.
Repeat Customer Forecast
Dropshipping businesses often have large, repeat customer pool. And we’re sure, most people won’t be able to resist the desire to try your delicious products over and over again. Dropshipping Business Plan Template takes into account repeat customers and gives you a clear repeat customer estimation.
All necessary reports
When creating a floral shop business plan, you will not need to independently prepare financial reports and study the requirements for them. Our Excel template contains all the necessary reports and calculations that correspond with the lenders demand.
Build your plan and pitch for funding
Impress bankers and investors with a proven, solid financial model that impresses every time.
Works for startups
Creates a financial summary formatted for your pitch deck
Dropshipping Store Financial Plan Template Reports
Confidence in the future
Using our financial model, you can effectively plan, prevent risks, manage stocks and cash flows and foresee your prospects for the next 5 years.
Financial performance KPIs
here is where you can track your core financial performance indicators in the form of charts.
Cash Burn Report
having all the inputs in the cash flow statement, it is a benefit to have the cash burn rate calculated
It shows the owner and investors where the funds have been invested, what property the business has, what obligations it has and the value of the company as a whole.
Profit and Loss Statement
It indicates how much an enterprise earns, its income and expenses and its ability to gain money.
Cash Flow Statement
It is one of the most important reports because the main goal of each business is to generate cash flow. It shows how much you have consolidated money, how much is not enough when you need to attract additional financing.
Loan Amortization Schedule
You can find this in the “Capital” tab, where you can see internal calculations of the loans, interest, and equity.
comparison of performance indicators in the model and in the industry.
Top Revenue Category Report
It always happens in retail that some products sell better than others, some bring more profit, others less, and some bring nothing at all. In a Dropshipping store, where you have to work with goods with a short shelf life, it is very important to monitor the indicator of the cost of sales in the context of goods. The report is built for 5 products (or product categories) but if you wish, you can expand it yourself or with our professional help. Top revenue, revenue depth, and revenue bridge are reflected here.
Top Expense Category Report
It is very important to plan costs so that your company is profitable. It is necessary to analyze what are the highest costs and always work on their optimization. This report summarizes 4 biggest expense categories and the rest of the expenses as the “other”.
Shareholder’s ownership dilution is calculated here. This tab consists of 4 rounds of financing
Get a Robust, Powerful and Flexible Financial Model
This well-tested, robust and powerful Excel template is your solid foundation to plan a wide range of different business models. Advanced users are free to expand and tailor all sheets as desired, to handle specific requirements or to get into greater detail.
If you struggling with the question How To Start An Dropshipping, then this template is for you.
That is when the Drop shipping Business Plan Financial Model comes in because your Drop Shipping financial plan is one of the first things your lenders would like to see.
Business plan for a Drop shipping provides a framework to foresight the expected cash flows from operations for a Drop shipping investment and calculates the financial metrics of relevance to investors and lenders.
The Excel model template provides the following:
– Executive Dashboard with key charts, key metrics, and key assumptions. Just change the inputs on the top-left and see immediately the impact on the graphs for easy to understand
– Yearly financial projections for 5 years
Key Drop shipping Metrics are:
o Dropshipping Gross Margin, %
o Dropshipping Profit Margin, %
o Average Weekly Revenue, $
– Revenue Streams
o Sales by 5 product categories
o Variable & Fixed expenses
o Wages and staff strength model
o All other operating expenses (OPEX) costs (modeled as fixed costs)
– Financial Statements (Yearly) – Drop shipping Profit and Loss Statement, Balance Sheet, Cash Flow Statement
– Financial Summary provides an annual and monthly overview of the core financial statements
– Top Revenue & Top Expenses reports
– Break-even Analysis
– Valuation based on Discounted Free Cash Flow (DCF) and EBITDA multiple
– Debt Financing and repayment schedule
– Fixed asset depreciation schedule with different categories of fixed assets
– Forecast of all relevant financial ratios
– Print-friendly layout including charts and graphs
Key questions/purposes which will be answered with the help of the Drop shipping Financial Plan Excel model are as follows:
– to understand, whether the Drop shipping business ideas are profitable;
– to calculate average Drop shipping revenue;
– to understand how to start a Drop shipping business plan;
– to calculate expenses on salaries and wages of Drop shipping workers;
– to calculate Drop shipping startup costs and Drop shipping store monthly expenses;
– to estimate costs of Drop shipping finance and time needed to loan payback;
– to craft an effective strategy of how to start a Drop shipping business;
– to estimate how much does it cost to start a Drop shipping store;
BENEFITS OF USING DROPSHIPPING BUSINESS PLAN FINANCIAL MODEL
First and foremost, we did not hard-code any assumptions.
It is very helpful both for the client and financial modeler, as all the variables could be edited directly from the dashboard or the revenue/expense/wages/etc sections.
Thanks to that, we could test different alternatives and make any edits literally on the fly.
Besides it, the fiscal year is editable. You may start your Drop shipping business plan financial model in the middle of the year.
Last but not least, the Dropshipping business plan financial model considered the interest and the repayment period of the debt.
In result, the user received maximally accurate financial statements summary.
Thus, our Drop shipping financial metrics are flexible and editable, which provides the client with great user experience and confidence in the profitability of your business idea.
Financial planning is one of the crucial steps in starting a Drop shipping business. Every Drop shipping store can benefit from a best-practice Drop shipping business plan enhanced with a budget for starting a Drop shipping business.