Auto Repair and Tire Shop Financial Model

Well this is the industry I started my career in. Right out of college I went into a 10+ location auto repair & tire shop business. My main objectives dealt with financial analysis and tracking of performance metrics as well as financial statement maintenance. So, in light of that knowledge, my next piece of work I decided on was a financial model for Auto Repair and Tire Shops.


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Pricing
*You will be taken to a template download page after purchase.

So the purpose of a financial model is to measure various assumptions and see what the performance of a business will be. Then, you or investors can go in and tweak various assertions to see what the cash flows look like in various scenarios.

I tried to line up the amount of cost and revenue areas / line items one would need when starting an auto repair business and then fill in a few labels based on some of the knowledge I have in the industry.

There are separate tabs for revenue and cost assumption and the logic in them allows you to pick the month each type of revenue item or recurring cost items starts as well as a place for one-time costs to happen (based on any month you pick it to happen in). There is also another separate place to enter startup costs.

This dynamic logic allows you to easily show a ramping scenario where you slowly add volume and new revenue streams to the business such as new tire brands, increasing volumes of the brands and auto repair services you are already doing, and various rates for each service type and tire type as well as an average cost per tire type.

This intricate assumption logic is great for easy flow and tracking of monthly business performance and annual. You can easily see the gross profit made by each tire type, each service type, and each parts/accessory type monthly.

The monthly/annual summaries have logical flow from total sales to total costs, dynamically integrating any assumptions about financing options (up to 5 separate loans that can start/end at any month within the 5 year forecast in order to get to a leveraged and unleveraged cash flow effect each month and therefore an accumulating cash position.

Charts and Graphs Visualize:
  • Annual sales of each service type / tire type.
  • Total annual revenues / expenses / ebitda.
  • Breakdown of major revenue and expense categories over 5 years and in total.
  • Running cash position from the startup costs to the final month of revenues.
  • Return summary with IRR, ROI, and annualized returns in %/$.
One of the things I am trying to improve every model is the formatting and summarizing of data so that whoever is trying to analyze this auto repair business can easily see the most important things in one spot. To make this clear, I have a 'Business Overview" tab, "Return" tab, and a "DCF Valuation" tab.

There is also an index to explain what each tab is as well instructions.

Disclaimer:

Note that jason varner is not liable for any gains/losses from this model and you should be using your own assumptions to build a business case. The figures I have in the model upon purchase are just to show logical flow, not represent the potential profits or losses of your specific situation.

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