General Rental Business Financial Model: Furniture / Equipment / Party Supplies / Etc...

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!


Pricing

After purchase, this template will be sent to the PayPal / Purchaser e-mail.

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.
The biggest feature of this Excel template is the revenue configuration. It is based on a matrix style infrastructure where the user inputs up to 25 category names. For each category, there are slots for up to 7 different purchase tranches. The purchase month, price per unit, total units purchased can be defined for each tranche for each category. This gives maximum granularity and strategic financial planning in regards to what is bought, the cost, and when and how much revenue that generates over time.

Overlaid on top of that logic is the annual utilization rate per each category per year and the average daily rental fees charged per category per unit over 5 years. There is also an input for average active days per month.

Finally, there is a percentage applied to each category that represents the average monthly degradation of purchased units. What that means is that over time there can be wear and tear on the units being purchased and this degradation percentage defines how much of the initial purchase count is available over the life of that purchase cohort. If you don't think it is relevant, you can just put 0% or some very small percentage.

The exit value is based on a multiple of trailing 12-month revenue per the exit month. If no exit is desired in the model, that multiple can just by 0.

Visualizations Include:
  • 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
Updated Logic:

Screenshots of this Excel Template:
funding sources on rental model in Excel

equipment rental revenue assumptions for pro forma

equipment rental pricing assumptions

operating expenses for equipment rental and startup costs

opex equipment rental

equipment rental pro forma 1 monthly

equipment rental pro forma in Excel 2

equipment rental pro forma 3

equipment rental pro forma 4

equipment rental pro forma 5

equipment rental pro forma 7

startup equipment rental pro forma monthly

DCF Analysis for equipment rental business and visualization

annual pro forma P&L and Cash Flow equipment rental

unit economics visualizations combo chart for equipment rental

stacked column chart equipment rental units available vs. actual utilization

revenue and expense stacked bar charts equipment rental

equipment rental visualizations for key performance indicators and cash flow

net book value visualization chart equipment rental

EBITDA visualization line chart equipment rental
costs to deliver and return equipment rental schedule

frequency of units getting rented out schedule

frequency of units being returned equipment rental