Manufacturing

10-year Financial Projections, Break-Even, Budget, Budgeting, Cash Flow Projections, Cost Calculation, Dividends, Excel, Financial Analysis, Financial Debt, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Financing, Forecasting, Fundraising, Income Statement, Investment Multiple, Investor Cash Flows, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), NPV (Net Present Value), Payback Period, PDF, Profitability Analysis, Return on Investment (ROI), Revenue Projections, Sensitivity Analysis, Startup Financial Models, Three Statement Model | Three Financial Statements, Uses and Sources of Funds

Why Use a Manufacturing Startup Feasibility Model?

A financial feasibility analysis is crucial for any manufacturing startup because it helps assess whether the business concept is economically viable and sustainable. This analysis involves evaluating the financial aspects of the startup to determine whether it has the potential to generate profits, cover expenses, and achieve its objectives.

This manufacturing startup financial feasibility analysis template focuses on planning to manufacture one or multiple products or setting up a production plant. It consists of a startup financial projections template using a bottom-up forecast. It is also a startup business financial plan that calculates multiple financial feasibility metrics, including the Internal Rate of Return, the Net Present Value, and the Payback Period.

Here are some key reasons why such a model is essential:

Risk Assessment: It helps identify and evaluate the risks associated with starting a manufacturing business, including market risks, operational risks, and financial risks.

Resource Allocation: It assists in determining the required resources, such as capital, equipment, and personnel, needed to initiate and sustain manufacturing operations.

Operational Planning: It assists in defining the operational processes, supply chain, and production strategies required for the manufacturing business, improving efficiency and reducing operational hiccups.

Market Analysis: It enables a thorough analysis of the market demand for the product or service, competition, and potential customer base, helping to gauge the market’s readiness for the new venture.

Financial Planning: It aids in creating realistic financial projections, including revenue forecasts, expense estimates, and break-even analysis, helping entrepreneurs secure funding and plan for profitability.

External Funding: When seeking external funding or attracting investors, a well-constructed feasibility model can instill confidence by clearly understanding the business’s potential and risks.

Decision Making: It provides a structured framework for making informed decisions about whether to proceed with the startup, pivot the business model, or abandon the idea altogether.

Features of the Model

The features of this model template are the following:

Assumptions: Includes the main model assumptions of the model:

• General assumptions such as the currency, start year of the financial forecast, labels, inflation rates
• Assumptions for cost inflation rates, depreciation period, taxes, working capital, interest rates, and dividend policy
• Capital Expenditure (CAPEX) assumptions and spending schedule; maintenance and expansion CAPEX assumptions
• Product Assumptions, including Volumes, Capacity, Prices, and Direct Costs depending on the model version for up to 5 or up to 10 products
• Exit and Valuation assumptions such as the Discount Rate, Investment Period, and Exit Valuation Multiples
• Uses and sources of funds
• Direct Cost Assumptions, Employee Cost forecast, OPEX, and CAPEX forecast

Executive Summary: This worksheet summarizes the projected financial statement, breakdowns of revenues and profits, and financial feasibility metrics such as the Payback Period, Internal Rate of Return, Net Present Value, and Average Cash on Cash Yield. An overview of the break-even points by product (PREMIUM Version only) is included, along with a summary of the monthly budget and sensitivity analysis for the IRRs.

Production: This worksheet contains all computations needed to forecast the capacity and production volumes product by product.

Direct Costs: A worksheet that forecasts direct costs by product and calculates the expected contribution to Gross Profit by product

OPEX: Forecasts the Operating expenditures and a Pro-forma breakdown of EBITDA.

CAPEX: Includes a detailed forecast of Capital Expenditures (CAPEX) and a Fixed Asset Schedule.

Financials:

Furthermore, the manufacturing startup financial feasibility analysis template includes a worksheet containing the following:

• A 5 or 10-year Financial Statement Forecasts: Income Statement, Balance Sheet, Cash Flow Statement
• Financial Ratios
• Profit Analysis
• Fixed Asset Schedule
• Sensitivity Analysis

These are all necessary for raising funding from banks and a forecast of investor cash flows as per their envisaged equity stakes and investment.

Budget: The budget worksheet contains the assumptions to allocate the yearly budget on a monthly basis for profits and cash flows. Depending on the model version, this is offered for 1 year or up to 3 years.

Debt Schedule: The Debt Schedule uses up to two layers of financial debt and allows simulating an annual drawdown and repayment schedule by debt facility.

Break-Even (ONLY PREMIUM VERSION): A calculation of the break-even points by product.

Shareholders (ONLY PREMIUM VERSION): A forecast which breaks down cash flows to equity shareholders by investors depending on their equity stakes and investment into the project.

Instructions: A worksheet that includes some guidance on how to use this model.

Terms and Abbreviations: Contains the terms and abbreviations utilized in the workbook

Study the Financial Feasibility of Your Manufacturing Company Before Starting a New Venture!

This manufacturing startup financial feasibility analysis template is a sophisticated financial planning tool for evaluating the viability of setting up a manufacturing plant to produce one or multiple products. You can simulate different scenarios by simply changing the assumptions and assessing how these changes affect the financial metrics of your manufacturing venture. 

As a startup financial projections template, it can help you analyze and evaluate the financial feasibility of a startup company in the manufacturing space. It is beneficial for supporting fundraising campaigns and can offer an essential planning tool in discussions and negotiations with banks and investors when securing funding.

The Manufacturing Startup Feasibility Model Template is available in two versions: a BASIC Version and a PREMIUM model Version.

BASIC Version

• Forecast for up to 5 products to be manufactured
• 5-Year Forecast
• Monthly Budget for 1 Year
• NO Break-Even Analysis
• NO Sensitivity Analysis
• NO Shareholder Cash Flow and Financial Metrics Analysis

PREMIUM Version

• Forecast for up to 10 products to be manufactured
• 10-Year Forecast
• Monthly Budget for 3 Years
• Break-Even Analysis
• Sensitivity Analysis
• Shareholder Cash Flow and Financial Metrics Analysis

Both financial model template versions are available as PDF demos, where you can see the model structure. Latest Version Number is 2.41

File Types:

 .xlsx (MS Excel)

.pdf (Adobe Acrobat Reader)