PURPOSE OF MODEL

Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet, and Cashflow Statement) financial projection for a new or existing online marketplace business bringing buyers and sellers together through an online store.

The model allows the user to model up to 10 listing categories with fee revenue generated either from sales transactions and/or product listings. The model also projects payment processing fees, shipping costs, and variable costs based on sales or listings as well as marketing costs, staff costs, other operating costs, fixed assets, and borrowings.

The model incorporates a discounted cash flow valuation calculation using the projected cash flows. The model follows best practice financial modeling principles and includes instructions, line item explanations, checks, and input validations.

KEY OUTPUTS

The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet, and Cashflow Statement) presented on a quarterly basis across up to 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 ratios 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 Bar charts showing listings and sales volumes by month and fee revenue by type and year.
– 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 listing categories, variable costs, staff costs, marketing costs, other expenses, fixed assets, and borrowings;
– Sales tax applicability for revenue items, variable costs, marketing costs, other expenses, and fixed assets.

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

Projection Inputs:
– Sales revenue inputs including new listings, listing cancellation rates, average sales price per listing, average sales per listing, shipping costs, fees per sales transaction, fees per listing;
– Variable costs including calculation units and average variable cost per unit;
– Other costs inputs including staff costs, marketing costs, and fixed costs;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount (percentage of retained earnings) and frequency;
– Fixed Assets including additional amounts and useful life;
– Borrowings including additional 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 projection 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 tab.

KEY FEATURES

Other key features of this model include the following:
– The model follows best practice financial modeling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model is not password protected and can be modified as required following download;
– The model contains a dynamic timeline that allows for a mix of Actual and Forecast period across a 5-year period allowing projections to be rolled forward with minimal effort;
– Timeline is split on a monthly basis and summarised on an annual basis;
– The model allows the user to model 10 separate listing categories and fee revenue based on listings and sales transactions;
– Costs are split into: variable and other costs for better driver-based forecasting;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Listing categories – 10 categories;
o Variable costs – 5 categories;
o Staff costs – 8 categories;
o Marketing costs – 5 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 payables, fixed assets, borrowings, dividends, corporate tax, and sales tax;
– 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 using the Contact Vendor button.

ABOUT PROJECTIFY

We are a small team of financial modeling professionals with experience working in Big 4 Business Modelling 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 best 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 fully 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 products/offering by sending us a message or submitting a review.