Financial Model for a Pawn Shop: 5 Year Forecast

If you want to start your own pawn shop or multiple pawn shops, it is important to plan out your margins, what you expect to sell, and the value of the things you are expecting to sell relative to their costs. This model allows you to plan out a 5-year projection of all those things so that you can see cash requirements and sales goals that your shop would need to hit in order to generate certain cash flows.



Pricing
After purchase, you will be sent the model as well as have access to a google sheet version along with the excel version.

The model is fairly easy to follow. A super high view is you go into each light yellow tab and enter all your assumptions. Then, the monthly and annual P&L tabs will populate automatically. The granularity is pretty strong on those so I did some groupings to make it easier to follow.

The model separates the things you plan on selling into 3 high-level sectors and then a miscellaneous sector. Then, the low-level category is what you fill in based on the types of things you are primarily going to be dealing with. From there, it is just a matter of entering the avg. value of what you plan on dealing and the expected margins per item.

You can adjust the month a given category begins, the expected annual sales growth of each category, and the starting sales per day of each category (decimals supported).

The visuals will show you things like accumulated cash position (nice to see how long it takes to break even on the equity put in).

Logic is built for you to enter an exit month or no exit at all. If you do enter an exit, then you can define the valuation method used (EBITDA or Rev multiples) and then any debt that was assumed will automatically come out of cash flow for that month.

You will also have dynamic assumptions for running monthly costs, startup costs, months of inventory you plan on pre-paying for, and CapEx over time.

Return metrics include IRR and ROI as well as 5 year DCF valuation, break-even month/year, as well as year 1 break even revenue.

Because a pawn broker / shop will often take items for collaterol and give out loans, there is an assumptions sheet to define the amount of loans you will plan on giving out per month per item category, the avg. annual % interest rate, and the avg. amount of days you expect the loans to last for.