Education Startup/Existing Business Financial Projection 3 Statement Model

3 statement 8 year rolling financial projection Excel model for an existing or startup Education institution/business

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PURPOSE OF TOOL

Highly versatile and user-friendly Excel model for the preparation of an 8-year rolling 3 statement (Income Statement, Balance Sheet and Cashflow Statement) financial projection with a quarterly timeline for a startup or existing education business generating revenue through the provision of tuition and other related income.
The model allows the user to model the tuition revenue for up to 15 grades/courses (can be extended with minimal modeling effort) and 10 ancillary income streams. The model also includes related costs such as staff costs, other variable costs per student and another income category, other expenses, fixed assets, and borrowings.
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 projected cash flows.

KEY OUTPUTS

The key outputs include:
– Full projected financial statements (Income Statement, Balance Sheet, and Cashflow Statement) presented on a quarterly basis across 8 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, the average return on assets and equity, and average Debt to Equity ratio.
o Charts summarising student numbers vs staff numbers and breakdown of tuition revenue and EBITDA.
– Discounted cash flow valuation using the projected cash flow output.

KEY INPUTS

Inputs are split into income statement and balance sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
– Name of business;
– Currency;
– First projection year and quarter;
– Naming for grade/course categories, other income, other variable costs, staff costs, other expenses, fixed assets, and borrowings;
– Sales tax applicability for each revenue and cost item including fixed assets.

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

Projection Inputs:
– Tuition revenue inputs including tuition fees, number of classes per grade/course, maximum students per class, occupancy rate, scholarship rate, settlement quarters in advance;
– Other income inputs including volume and revenue per unit;
– Variable cost inputs including amount per student and amount per another income category;
– Other costs inputs including staff costs and other expenses;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount (percentage of retained earnings) and frequency;
– Fixed assets including addition amounts and useful life;
– Borrowings including addition amounts and interest rate;
– 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 project outputs which are presented in ‘o_Fin Stats’, ‘o_Charts’ and ‘o_DCF’.

System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– A checks dashboard containing a summary of checks by a 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 period across an 8-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
– Timeline is split on a quarterly basis and summarised on an annual basis;
– The model allows the user to model up to 15 separate grade/course categories with their own unique tuition revenue inputs;
– The model is not password protected and can be modified as required following download;
– The model is reviewed using specialized model audit software to help reduce the risk of formula inconsistencies;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Tuition revenue – 15 grade/course categories;
o Other income – 10 categories;
o Variable costs per student – 3 categories;
o Variable cost per other income – 10 categories (1 for each other income category);
o Staff costs – 10 categories;
o Other expenses – 15 categories;
o Fixed assets – 5 categories;
o Borrowings – 3 facilities
– Apart from projecting revenue and costs, the tool includes the possibility to model deferred income (for any payments in advance), fixed assets, borrowings, dividends, corporate tax, and sales taxes;
– Business name, currency, starting projection period 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;
– 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.

MODIFICATIONS

If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us at [email protected]

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 make sure our customers are satisfied with the tools/models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.

We are also always 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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