Financial Model, Online & IT Businesses, SaaS

Annual Recurring Revenue (ARR), Budget, Cash Flow Projections, Churn, Cost Calculation, Cost Projections, Financial Analysis, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Forecast, Forecasting, Revenue Projections, Startup Financial Models

Early-stage SaaS companies typically do not have a finance professional on staff, so founders must spend a significant amount of time creating their own financial forecast. The Excel-based SaaS Start-up Financial Model is designed for founders and non-spreadsheet jockeys. The model is designed to make it easier for SaaS founders to use it effectively to scale their start-ups. All SaaS financial metrics have been removed because you are unlikely to have enough volume for those metrics to be meaningful. It’s all about cash flow and go-to-market strategies.

Headcount Planning

The headcount planning tab allows you to input the details of your headcount roster. For example, title, wage, benefits, taxes, etc. The really nice feature is that you can specify the start and end date for each position, and the headcount planning formulas take over. You’ll have a wage forecast in no time.

Recurring Revenue Model

For SaaS businesses, recurring revenue is the core of your existence (and valuation). The recurring revenue forecast tab requires a few key inputs. These include new customer counts, churn, revenue expansion, and professional services assumptions (if any).

After you have inputted these numbers, you’ll have a nice monthly recurring revenue forecast. It’s set up to handle ARR or MRR subscription businesses.

Operating Expense Model

Now that you have forecasted your headcount and wage costs, you can focus on non-wage expenses such as commissions, travel, rent, and professional services (for example, CPA’s, lawyers, consultants, etc.). Those are the most common expenses that I see in early-stage SaaS startups. I include formula examples that do the work for you so that you are not inputting numbers month-by-month or row-by-row.

SaaS P&L Template

We now have the financial output in an accepted SaaS P&L template. This includes the proper grouping of department expenses so that you see your correct SaaS gross margin and operating expenses. The output also includes your headcount forecast and high-level financial metrics.

File Type: .xlsx