I had built an equipment rental financial model about 4 years ago. Since then, my skills in scaling business logic have improved. It was time to do a refresh Excel model and so here we have a general 5-year startup rental business template that can be used for basically any tangible good type that is purchased initially and then rented out over time. The rental business is always booming!
The template will be immediately available for download after purchase. This is included in the industry-specific financial model bundle.
Recent Upgrades: Added fully integrated 3-statement model (monthly and annual Income Statement, Balance Sheet, and Cash Flow Statement) as well as a cap table and better global sanity checks.
The model has been fully structured from initial start year and timing assumptions to all the revenue and expense logic and potential exit value. A couple key highlights:
- Update: Logic added for frequency of rentals and return of units and corresponding cost. This is to account for costs directly related to delivering the units / getting them returned and any other costs related to those events.
- Dynamic logic for up to 25 renting categories and up to 7 purchase tranches for each category.
- Dynamic depreciation expense based on when units are purchased and their useful life.
- EBITDA, EBT, and Net Income (after taxes).
- Cool visualizations.
- 5-year monthly and annual pro forma detail
- Executive Summary for high level financial highlights and visuals.
- DCF Analysis and IRR / ROI / Equity Multiple for project, investor pool, owner equity pool.
- Full operating expense cost schedule, startup costs, and capex.
- Update: You can now define the frequency with which things are rented out and a cost for that (also for when it is returned). This can be zeroed out if not needed.
- Revenue and EBITDA vs. Total Purchased Units
- Average Utilization of Rentable Uni
- Rentable Units by Category
- Actual Units Rented by Category
- Revenue by Category
- Revenue by Category
- Expenses by Category
- Expenses by Category (% of Total)
- Average Rental Revenue per Month (available to rent vs. rented)
- Monthly Cash Flow vs. Accumulated Cash - Project Level
- Monthly Cash Flow
- Net Book Value of Total Purchased Units over Time
- EBITDA per Month