Enhanced Generic Startup Financial Projection 3 statement Excel Model

User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cash flow Statement) 5-year financial projection for a generic start-up business.

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PURPOSE OF MODEL
User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cash flow Statement) 5-year financial projection for a generic start-up business. The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations

KEY OUTPUTS
The model is generic and not industry-specific. The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) on a monthly basis across 5 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 metrics including Average revenue growth, Average profit margins, Average return on assets and equity and Average Debt to Equity ratio.
o Bar charts summarising income statement and Balance Sheet projections
o Gross Profit margin by revenue stream in table and bar-chart format

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. All inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.
Income Statement inputs include:
– Revenue inputs including sales volume, sales prices and average credit terms offered;
– Variable cost inputs including variable cost per unit and average credit terms received;
– Other Costs including staff costs, marketing costs and fixed costs;
– Sales and Corporate tax inputs including rate and payment periods;
– Dividend inputs including amount or percentage of retained earnings and frequency;
Balance Sheet inputs include:
– Fixed Assets including addition amounts and useful life
– Borrowings including addition amounts and interest rate
– Share Capital including initial and subsequent equity investments

MODEL STRUCTURE
The model contains, 7 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’ and ‘i_Assumptions’). The calculation tab use the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Fin Stats’ and ‘o_Charts’
System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions and contents;
– A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
– The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
– The model allows for a 5-year projection on a monthly basis and summarised on an annual basis;
– The model is not password protected and can be modified as required following download;
– The model is reviewed using specialised model audit software to help ensure formula consistency and significantly reduce risk of errors;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Revenue – 10 categories;
o Variable costs – 2 per revenue category;
o Staff costs – 5 categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed Assets – 3 categories;
o Borrowings – 1 facility;
– Costs are split into: variable, fixed, staff and marking costs for better driver-based forecasting;
– Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends, sales tax and corporate tax;
– Business Name, currency, starting projection period are fully customisable
– Revenue, Cost and Fixed Asset descriptions are fully customisable;
– The model includes the possibility to start mid-way through the first projection year;
– 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 which summarises all the checks included in the various tabs making it easier to identify any errors.

MODIFICATIONS
If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please contact us on: [email protected]

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