Financial Model Template

Financial Model Template

What is a Financial Model?
A Financial Model This is a representation in numbers of some or all aspects of a company's operations. Most importantly it helps you understand your Cas burn. It It is essential that you know how long your money is going to last and what milestones you are going to be able to achieve with that spend.

Guy Kawasaki suns it up perfectly: “The point of financial projections is to tell a story with numbers—a story about opportunity, resource requirements, market forces, growth, milestone achievements, and profits. Your job is to create a numerical framework that complements and reinforces the vision you’ve painted with words.”


What can this model help you with?

It allows you to:

  • Plan and understand your business cash flows.

  • Estimate costs and income in order to project the profits and impact on the business over a period of time (1-5 years)

  • Generate a 3 statement output: Income Statement, Cashflow Statement and Balance Sheet.

  • Provide and justify the basic adjustments behind your business i.e Validate your assumptions.

  • Have flexibility to change assumptions and see immediate financial impact i.e Play with your assumptions.

  • Satisfy investors and stakeholders that you have a solid plan and understand your business.

Please read instructions below before using the model.

What does the model include?

This financial Model template is suitable for SaaS, Software, Service, Hardware and product based businesses that are driven by Online and Offline Marketing spend and includes:

  • Glossary

  • Income Statement

  • Balance Sheet

  • Cash Flow

  • 1a. Marketing Build

  • 1b. Traffic Build 

  • 2a. SaaS Revenue Build

  • 2b. Hardware Revenue Build 

  • 3. HR Build   

  • 4. Transaction Fee Build  

  • 5. CAPEX Build

  • 6. OPEX Build                                   


It does not include    

  • Charts and graphs

  • Financial Ratio and Metrics Analysis

  • Valuation Model

  • Scenario Analysis 

Instructions

  • Specify the date, company name and currency on the cover page.

  • The file consists of yellow input sheets and green output sheets.

  • On the yellow input sheets you can view the sheet in months, quarters or years by collapsing the groupings and you can collapse the assumptions.

  • On the build sheets you will notice yellow input cells and green select cells. These cells can be amended by either inserting details or choosing from the options.  All other cells should not be touched as they represent the structure or are calculated cells. For any structural or formula changes we recommend that you contact a finance professional.

  • Start updating the model by populating assumptions on the Revenue build and then work your way through the rest of the build sheets starting with the Marketing Build.

  • Review the output sheets (Income Statement, Cashflow Statement and Balance Sheet) to see results

  • Adjust assumptions until you find an optimal overall combination. This is your business formula which should represent your Business Model.