SmartHelping - Financial Model Templates by Jason Varner: 2023

My Business is Failing, How Can Financial Modeling Help?

If your business is facing challenges, financial modeling can be an invaluable tool to help diagnose, strategize, and implement corrective measures. Here's how financial modeling can assist:

What Does it Mean to Streamline Efficiency?

To "streamline efficiency" means to improve a process, system, or workflow in order to make it more effective, efficient, and smoother. The term "streamline" often connotes a reduction of unnecessary steps, redundancies, or obstructions, much like how streamlining a physical object (like a car or a plane) reduces air or water resistance, allowing it to move more smoothly.

How Much Should You Spend on Ads for a Mobile App?

The amount you should spend on ads for your mobile app depends on several factors, and there isn't a one-size-fits-all answer. However, there are some guidelines to help you determine an appropriate budget and the analyses that can support your decision.

CECL Accounting Standard and Its Implications (Current Expected Credit Loss)

CECL, which stands for "Current Expected Credit Losses," is an accounting standard that addresses how financial institutions recognize and measure credit losses for financial instruments. It was introduced by the Financial Accounting Standards Board (FASB) in the U.S.

Cash Flow Management for Small Businesses

Managing cash flow is crucial for the survival and growth of small businesses. Proper cash flow management ensures that a business has the necessary cash to meet its short-term obligations and invest in its future. Here are some strategies to help small businesses manage cash flow:

Side Gig P&L Tracker - 12 Month Template

The gig economy has been growing for a long time now. Along with that comes financial responsibility. You now have taxes to account for, businesses expenses to log, and cash flow to manage. This template makes it easy to track revenue from multiple streams, expenses, and cash flow per month and year-to-date.

Due Diligence Process for Real Estate Acquisitions

Due diligence in real estate acquisition refers to a comprehensive process of evaluating a property before purchasing it. This ensures that the buyer is fully aware of the property's current condition, any potential risks, and other pertinent information. Proper due diligence minimizes potential surprises and helps the buyer make an informed decision.

The Importance of Debt When Evaluating Real Estate Investments

Debt plays a critical role in real estate investment decisions for several reasons. Properly understanding and managing debt can amplify returns, provide leverage, and offer tax advantages. Here's why debt is crucial when evaluating real estate investment decisions:

Startup Articles

Venture into the vault of visionary ventures! This directory of startup articles is your compass to the bustling universe of innovation, entrepreneurship, and game-changing ideas. Dive in, and let each piece enlighten your entrepreneurial journey. Most all of the pro forma templates here are compatible for startups.

General

Negotiating

Structure

Financial

Marketing and Brand

How to Approach Marketing as a Startup

Best Approach for Startup Fundraising Strategy

Fundraising for a startup is a critical and challenging process. Here's a strategy to approach it step by step:

List of Equipment Costs Required to Start a New Auto Repair Shop

If you are starting your own auto repair show or chain of shops, one of the larger capital expenditures will include tools and equipment. This list is designed to give prospective owners an idea of the costs of each. Note these are just estimates and costs / items required can vary by specific circumstance and location.

Updating Used Car Dealership Financial Model: Added Payment Terms to Inventory Purchases

I had a couple clients request to have payment terms apply to the vehicle purchases. As a result, I have updated the base template to include this new logic. The user can still opt to pay for 100% of the inventory purchase requirements up front, or adjust for payment terms (for example, 1/3 up front, 1/3 in 30 days or 60 days, and 1/3 at sale) or any combination of month and percentage amounts you need based on your situation.

Starting a Cloud Computing Business - Bull Case

The cloud computing industry has witnessed exponential growth in the past decade and is projected to continue its upward trajectory. Here's the bull case for starting a cloud computing business:

Startup Financial Modeling Techniques to Determine Equity Requirements and Working Capital

Let's talk about a general modeling technique I use in all the financial model templates here on the site. I'm going to provide insights into how I structure financial models for startups. The emphasis is on the importance of understanding working capital requirements upon a business's initial launch. This understanding has been honed over time through building models for numerous clients.

Estimated Startup Costs for a Manufacturing Business

Starting a manufacturing business can be capital-intensive, and the startup costs can vary widely depending on the type and scale of the manufacturing operation. Here's a general overview of potential startup costs involved in a manufacturing business:

Subscription Box Business Explained and Example

A subscription box business is a type of business model where customers pay a recurring fee to receive a box of products on a regular basis, usually monthly or quarterly. These boxes typically contain a curated selection of items around a particular theme or category. The contents might be a surprise, based on general preferences the subscriber sets, or they may be known in advance.

MOIC Calculation Example: Financial Return Metric

MOIC, or Multiple on Invested Capital, is a financial metric used primarily in the private equity and venture capital industries to evaluate the return on an investment. It measures the multiple of money returned relative to the money invested. It's a way to express the return on a particular investment without taking into account the holding period.

Financial Model for Subscription Box Businesses

This financial model template was built specifically for the nuances and unit economics that are involved in a subscription box business. The general business model is based on subscribers that pay a regular monthly fee in return for one or multiple monthly deliveries of something in a box. The 'box' is often curated collections of products, often tailored to specific interests or themes.

Financial Models That Regulators and Policymakers Use

Regulators and policymakers use financial models to make informed decisions, predict economic outcomes, set policies, and ensure stability within the economy or specific sectors. These models help them understand the implications of different policy choices and anticipate potential economic and financial consequences. Here are some ways regulators and policymakers utilize financial models and what those models typically contain:

How Individual Investors Use Financial Models

Financial models are tools that investors can use to understand, predict, or value a business or investment opportunity. They can range from simple calculations to complex spreadsheets that consider multiple scenarios and variables. Here's how individual investors utilize these models and how they can be beneficial:

What is FCFF and How to Calculate it in a Financial Model

Free Cash Flow to the Firm (FCFF) is a measure of the amount of cash generated by a business that's available to its capital providers, namely equity holders and debt holders. It represents the cash flow available to all investors after all operating expenses and capital expenditures are covered.

How Students and Academics Use Financial Models

Academics and students use financial models in various capacities, ranging from educational purposes to advanced research. The application and importance of financial models in academia can be understood from the following points:

How Entrepreneurs and Startups Use Financial Models

Financial models are essential tools for startups and entrepreneurs for several reasons. They serve as a representation of a company's financial situation, projections, and business environment. Here are the main uses that startups and entrepreneurs derive from financial models:

What Kinds of Financial Models Do Treasurers and Risk Managers Use?

Treasurers and risk managers utilize a wide variety of financial models to support their roles in managing a company's financial resources and mitigating risks. The specific models used depend on the industry, company size, regulatory environment, and specific challenges faced by the organization. Here are some of the most commonly used financial models by treasurers and risk managers:

Project Finance: What Kinds of Things Do These Financial Models Include

Financial models constructed by professionals for the analysis of large projects are intricate and detail-oriented. They aim to capture all potential variables and scenarios to make informed decisions.

Hydroponics Farming: 10 Year Financial Model Template

If you're involved in hydroponic or aeroponic farming, this financial model is designed to enhance your cash flow planning and evaluate potential business acquisitions. This template offers forecasts for up to a decade and comprehensively covers various startup costs, operational scenarios, and potential exit strategies.

How Do Lenders and Credit Analysts Utilize Financial Models?

Credit analysts and lenders use financial models to evaluate the creditworthiness of individuals or businesses, project future financial performance, and make informed lending decisions. These models help analysts and lenders ensure that the borrower will be able to service their debt obligations.

How Do Management Consultants Use Financial Models?

Management consultants use financial models for various purposes, depending on the specific project's nature, the client's industry, and the business problem they are trying to solve. Here are some ways they utilize financial models:

How I Think About Revenue Forecasting for Hydroponics Business

There are lots of challenges in revenue forecasting and understanding variable costs for hydroponics. Here is what I'm trying to flesh out in regards to the economics of this industry.

How Real Estate Professionals Use Financial Models

Building real estate models was the first thing I did as a financial modeler. I love the clients in this space and it has been worth every penny to become an expert in the field as far as building logic for the development and/or acquisition of commercial / residential properties. I liked these types of models because the primary focus was on cash flow.

Venture Capital and Financial Modeling

Venture capitalists (VCs) utilize financial models as an essential tool in their investment decision-making process. Here's how and why they use them:

How to Calculate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Pros/Cons

The calculation is sort of built into the name. EBITDA is a common metric used to describe the profitability and earnings potential of a business as well as used as one source for performing a business valuation that is based on a multiple of the annual EBITDA.

Leveraged Buyout Model: Robust Template for LBO Acquisitions

I am really excited about this financial model. It is built for acquiring a target company by using a combination of debt and equity, inputting assumptions for expected operational activity, and defining a potential exit value. The common term used to describe such activity is LBO or leveraged buyout. In order to fit that user perspective, I've built some awesome assumptions.

What is a Feasibility Study?

A feasibility study is an analysis and evaluation of a proposed project to determine if it is technically viable, economically justified, and will be successful in the intended market. In essence, it helps decision-makers understand the potential benefits and challenges of pursuing a specific initiative, whether it's a new business venture, product launch, infrastructure project, or any other significant undertaking.

Private Equity Professionals and How They Use Financial Models

Private equity (PE) professionals utilize financial models as essential tools in their decision-making process, due diligence, and post-acquisition management. Here's a perspective on how PE professionals use these models:

Seller's Discretionary Income Isn't Ideal for Manufacturing Business Valuation Studies

The SDE (Seller's Discretionary Earnings) method isn't inherently "bad" for manufacturing business valuations, but there are complexities and nuances associated with manufacturing businesses that can make SDE less ideal in certain scenarios. Here are some reasons why SDE might be less preferred or require careful adjustments when valuing a manufacturing business:

How to Calculate Seller's Discretionary Earnings (SDE) and Pros/Cons

SDE, or Seller's Discretionary Earnings, is a metric commonly used in the valuation of small businesses. It represents the earnings of a business before certain non-operational expenses. SDE aims to capture the true underlying earnings that a new owner could expect, especially when the current owner might be taking benefits that wouldn't necessarily transfer to the new owner.

How Corporate Finance Professionals Use Financial Models

Corporate finance professionals utilize financial models extensively to support various aspects of their roles.

Types of Financial Models Asset Managers and Mutual Fund Managers Use

Asset managers and mutual fund managers utilize a range of financial models to make investment decisions, assess risks, and project future returns. The choice of model depends largely on the investment strategy, the asset class being managed, the investment horizon, and the specific financial instruments being utilized. Here are some of the most commonly used financial models:

How Equity Researchers Use Financial Models

Equity Research and Financial Models

Equity research analysts seek to provide a clear understanding and valuation of publicly-traded companies, and one of their primary tools is financial modeling. A financial model is essentially a representation or simulation of a company's financial performance. It is built in a structured way that allows for inputs (like historical financial data or assumptions) to generate outputs (like future financial projections). By using these models, equity researchers can estimate a company's intrinsic value and determine whether the stock is overvalued or undervalued.

How Investment Bankers Use Financial Models

Investment bankers use financial models as a crucial tool in their job, especially when it comes to making decisions related to transactions, valuations, and advising clients. Here's a detailed look at how investment bankers utilize financial models:

Who Actually Uses Financial Models?

I build all kinds of financial models for customers and one thing I don't often get to be a part of is the actually use of these templates. Here we are going to take a look at the various groups of people that are actually plugging in real data and/or studying a template that is already made. There are a few different perspectives here.

Most Profitable Equipment to Rent Out

The profitability of renting out equipment depends on various factors like location, demand, maintenance cost, initial investment, and market dynamics. However, some equipment tends to be consistently profitable in specific contexts. Here are some commonly profitable equipment rental categories, keeping in mind that profitability can vary significantly based on the aforementioned factors:

Lease and Tenant Management System with Printable Monthly Reports

Easily track and create monthly reports for all your units/tenants with this tenant management template. It was built in Excel and has an auto-generating report dashboard that is formatted to be printable on landscape 9.5 x 11.

Common Issues Multifamily Landlords Face and Solutions

Multifamily landlords often face a unique set of challenges due to the close proximity in which tenants live. Here are some common tenant issues and suggested solutions or management techniques:

Short-term Rental Real Estate Business Investing Strategy

Starting a successful short-term rental real estate business requires a combination of market research, savvy investments, operational excellence, and good guest relations. Here’s a potential strategy to get you started:

Big Update to Inventory Forecasting Template

Alrighty, I spent a solid 10 hours rebuilding the inventory forecasting template to meet more customers needs. Overall, the user experience has improved dramatically and I've already had feedback saying "this is awesome" so we are on the right track here.

Step-by-step Guide for Starting a Car Wash Business Empire (multiple locations)

Owning and operating a single car wash in a local market is much different than trying to become an owner / operator of 100s or 1,000s of car washes across the nation. Many factors exist that will separate successful and failing operations.

Rental Property Real Estate Model: Up to 100 Properties

Unlock the power of strategic property investment with this sophisticated rental property acquisition spreadsheet. Designed for both ambitious individuals and funds, this model simplifies the complexities of acquiring up to 100 properties over time. Delve into customizable scenarios, from debt structuring to appreciation and rent growth predictions, ensuring you have a comprehensive understanding of cash flows and minimum equity requirements. Whether you're a fund manager or a solo investor, this model provides the clarity and foresight needed for successful property scaling.

Made to Order Manufacturing: Financial Modeling Tips

Building a financial model for a made-to-order (MTO) manufacturing system requires attention to a unique set of challenges and dynamics inherent to this type of production. Here are some important considerations:

20 Tips for Using a Financial Projection Template

Creating an accurate financial projection template is essential for planning and decision-making in business. While no projection can guarantee 100% accuracy, due to inherent uncertainties and external variables, you can certainly reduce the margin of error. Here are some ways to avoid errors in a financial projection template:

Financial Modeling Approaches to Product-as-a-Service Business Model

Product-as-a-Service (PaaS) is a business model that offers products on a subscription basis or through a pay-per-use arrangement rather than a one-time purchase. PaaS can be an attractive proposition to customers as it often comes with regular updates, maintenance, and support. Financial modeling for this business model will typically involve several unique considerations. Here are some common financial modeling approaches:

Update to Preferred Return Template: Adding a Second Profit Share Distribution Tier

I had a few clients request a second profit share hurdle that is triggered by the LPs equity being fully repaid. The update is added as an upgrade version that you have the option to purchase separately.

Update to Self-storage Financial Model Template

I originally built this real estate financial model to be an equity ramping non-debt option feasibility study tool. However, I've been trying to find the time over the last year to upgrade the template so it works exactly the same except there would be an option to finance some percentage of the total cost of each deal. Up to 6 deals can be modeled over a continuous 15-year timeframe, including options for joint venture waterfalls with IRR hurdles.

The Basics of Accounts Receivable

Accounts Receivable (AR) is a fundamental concept in accounting and finance. Here's an explanation of what it is, how it works, and its importance in cash flow management:

How to Compare Loans: 10 Factors to Consider

Comparing different loan options and terms can be a complex process, but it's crucial to find the best fit for your financial situation. Here's a step-by-step guide to help you make an informed decision:

Cost Segregation Study Template

Money's worth today is typically greater than its worth in the future. This core financial principle is the underlying reason why real estate owners engage in cost segregation studies (CSS).

Considerations When Making a Financial Projection for a Laundromat

Relevant Template:

Laundromat Financial Model

Creating a financial projection for a laundromat involves several key elements, and while some are universally relevant, others may depend on regional factors. Here are key things to consider:

Initial Investment and Startup Costs: The first thing you should consider is the capital needed to set up your laundromat. This will include costs like purchasing or leasing your business location, buying laundry equipment, setup costs, getting necessary licenses and permits, etc. Here are some detailed cost estimations:

Lease/Real Estate: This will vary greatly depending on the location and size of the property. For example, in a city, leasing a 1,500 square foot space might cost $3,000 to $5,000 per month
Renovation/Construction: Depending on the condition of the space, renovation could cost between $200,000 and $500,000, including installation of equipment, plumbing, electrical work, flooring, painting, etc.
Laundry Equipment: You'll need commercial-grade washers and dryers. The number of machines will depend on the size of your laundromat, but a small laundromat might start with around 15 washers and 15 dryers.

Commercial Washers: Commercial washing machines can range from $1,000 to $6,000 each. So, for 15 machines, you're looking at a cost between $15,000 and $90,000.
Commercial Dryers: Commercial dryers can range from $500 to $3,000 each. For 15 dryers, the cost would be between $7,500 and $45,000.

Ancillary Equipment:

Change Machines: You'll likely need at least one change machine, which can range from $1,000 to $2,500 each.
Laundry Carts: Depending on the size of your laundromat, you may need anywhere from 5 to 10 carts. Each cart can cost between $50 to $200.
Seating: Costs for seating will vary based on the style and quantity of chairs, benches, or sofas you choose.
Vending Machines: If you plan to sell laundry supplies or snacks, you'll need vending machines. These can cost between $1,000 and $3,000 each.

Initial Inventory: This includes laundry detergents, fabric softeners, dryer sheets, and other supplies if you plan to sell them. This cost might range from $500 to $1,000.
Permits and Licenses: Costs for business licenses, permits, and any regulatory compliance can vary, but you might budget $500 to $1,000.
Business Insurance: Depending on the coverage, business insurance might cost between $1,000 and $3,000 per year.
Marketing and Advertising: A budget for marketing and advertising to promote your new business could be between $2,000 and $5,000.
Working Capital: It's crucial to have enough money on hand to cover operating expenses for a few months while you're building your customer base. This might be around $10,000 to $20,000.

Operational Expenses: These include costs related to utilities (water, gas, electricity, sewer), supplies (detergent, cleaning supplies), equipment maintenance, employee wages (if any), insurance, property taxes, and rent (if leasing). Note, the more washers and dryers you have, the higher the utilities so that cost should be related to usage per machine over time.

Revenue Projections: Consider the number of machines, pricing per load, anticipated usage rates, ancillary services (like folding, dry cleaning, pick up and delivery), vending machine income, etc.

Market Analysis: Consider the size and demographics of your target market. Is there a demand for a laundromat in your chosen location? Consider factors like apartment density, income levels, and presence of college students or other groups likely to use a laundromat.

Competitor Analysis: Identify how many other laundromats are in the area, their pricing, services offered, and overall quality of service. This will help you determine your own pricing and services.

Marketing Costs: Budget for marketing and advertising to attract customers to your new business. This might include online advertising, print media, or local events.

Return on Investment: Once you've projected your costs and revenues, calculate your ROI to see how long it will take to recoup your initial investment and start making a profit.

Regional factors to consider:

Utilities Cost: The cost of utilities like water and electricity can vary significantly by region, and these are major operational expenses for a laundromat.

Labor Costs: If you plan to hire staff, wages can also vary depending on local labor laws and standards of living.

Market Saturation: Some regions may have more laundromats per capita than others, so competition could be stiffer in these areas.

Demand for Services: The need for laundromats can also vary by region. In urban areas with many apartments, demand might be high. However, in suburban areas where most people own homes with washers and dryers, demand might be lower.

Local Regulations and Taxation: Local laws and regulations can impact both the startup and operational costs of a laundromat. Some areas may have more stringent environmental regulations, for example, or higher business taxes.

Pricing Variance: Prices for laundry services can vary by region based on the average income levels, cost of living, and what the local market will bear.

Cultural Factors: In some regions, laundromats might also serve as community gathering spots, and offering features like free Wi-Fi, a comfortable seating area, or a coffee bar could attract more customers.

Remember, a good financial projection is based on realistic and well-researched assumptions. The more accurate and detailed your data, the more useful your financial projection will be for guiding your business decisions.

Types of Lenders and Business Models

When you think about the lending industry, you may not know that there are a wide variety of businesses out there that want to originate loans. It is a huge economy in and of itself, with loans getting bought, sold, and originated with many different terms / risk profiles.

Best Practices When Merging Financial Model Templates Together

Now and then this comes up for me. I'll have a client with one set of logic and they want to take it out of one financial model and put it into another financial model template. When doing this, there are some things to consider.

Major Risks of Running an Auto Repair Shop

Running an auto repair shop comes with its fair share of risks. Being aware of these risks can help you take preventive measures and protect your business. Some major risks to watch out for include:

How to Grow a Successful Real Estate Brokerage Business

Starting and growing a successful real estate brokerage involves various steps, each requiring a different set of skills and expertise. Here's a general guide to help you understand the process:

Car Wash Startup Costs

Starting a car wash can require a significant amount of upfront investment. The startup costs can vary based on the scale and type of car wash (automated, self-service, full-service, mobile, etc.) that you want to set up. Also, it will make a big difference depending on if you are acquiring a car wash or constructing a new car wash. However, here's a general list of possible expenses:

Latest Condo Development Innovations and Impact on Developers

Innovations in condo development are driven by factors such as consumer demand, technological advancements, changing lifestyles, sustainability concerns, and even pandemic-induced trends.

Manufacturing Demand Planning and Financial Modeling

Manufacturing demand planning is a crucial part of the supply chain process, primarily involving forecasting demand for a product, then planning how to meet this demand. This process ensures that goods are produced at the right time, in the right quantities, to meet customer needs, while also balancing cost-efficiency. An efficient demand planning system can reduce waste, lower costs, increase sales, and enhance customer satisfaction.

What is ARR in SaaS and How to Calculate

ARR stands for Annual Recurring Revenue. It is a key metric used by SaaS (Software as a Service) businesses. ARR measures the value that a business would earn from a customer over the period of a year, assuming that the customer continues to use and pay for the service.

BRRRR Real Estate Investing Strategy

BRRRR strategy in real estate means Buy, Rehab, Rent, Refinance, Repeat): This strategy involves buying a property, fixing it up, renting it out, and then refinancing it to withdraw your capital out (or at least some of it). This allows you to reinvest that money into another property, effectively growing your portfolio without needing to invest additional capital. However, this strategy requires a good understanding of renovation costs and the ability to manage renovation projects, as well as favorable lending conditions.

Keep in mind this is not investment or financial advice, use at your own risk, and consult with a professional if need be. (I just build the templates)

Some Ways to Get Into Real Estate Investing if You are Just Starting Out

This is not financial advice so use at your own peril and do you own research.

Getting started with real estate investing can be a powerful way to generate wealth, but it's important to understand the potential risks and rewards. Here are some strategies to get started:

Real Estate Investing: Better to Build or Acquire a Mobile Home Park?

Whether it's better to buy or build a mobile home park depends on several factors such as your investment objectives, experience, financial resources, risk tolerance, and the specific circumstances of the local real estate market. Here are some considerations:

Lending Articles

The lending industry has been around for a long time. Some say it originated when merchants would give loans to grain farmers in 2,000 BC when they carried goods from city to city. Formal banks started coming up around the 1400s and there is still one that has continually existed since then. The point is money lending has been around society forever. Here are some insights about the industry and you can get money lending startup business models here.

Interest Rates

General Lending Business

Strategy

General

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

Valuation Articles

Evaluating businesses of your own or ones you are looking to acquire involves valuation. That means figuring out what something is worth based on various assumptions. Check out some general valuation models here.

Valuation Metrics

Real Estate

Valuation Techniques in Real Estate

Financial Modeling

Small Business Valuation

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

HR (Human Resources) Articles

HR management is tough and the more organized you are, the better your job and HR department will function. Check out HR spreadsheets here.

Payroll

Scheduling

Employee Scheduling Management Tactics

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

SaaS Articles

Topics here will include Software-as-a-Service, general subscription businesses, membership businesses, and anything that has a focus on recurring revenue contracts. Check out SaaS financial models here.

SaaS Modeling

Strategies

Structure

Mobile App

Marketplaces

Product + Service Subscription

Financial Modeling Techniques for Product + Service Businesses

Product-as-a-Service

Subscription Box

What is a Subscription Box Business and Examples

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

Joint Venture Articles

GPs and LPs are always engaging in deals together. These structures can vary greatly and understanding joint venture terminology and concepts can help both investors and operators navigate operating agreements much easier. Check out all CF waterfall models here.

Preferred Investing

Real Estate Syndication

General Cash Flow Waterfalls

General

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

General Industry Articles

Enjoy a vast array of insights across many industries. Tips and tricks to help all sorts of small business operations. Check out bottom-up financial models for 50+ industries here.

Learn more about what a feasibility study is (including financial feasibility) as that is what most of the work done here at SmartHelping involves.

Used Car Dealerships

Equipment Rental

Construction / General Contractors

Car Wash

Manufacturing

Laundromat

Franchisor / Franchisee

Cruise Ship / Boat Touring

Variable Expenses on a Cruise Ship

Professional Services Firm / Agency

Scaling Your Professional Services Organization

Vending Machines

Brick and Mortar

Financial Modeling for Scaling Multiple Retail Locations

Mining

Golf Course

Auto Repair Shop

Apple Orchard

Challenges and Advantages of Starting an Apple Orchard

Pawn Shop

Average Pawn Shop Annual Profits

eCommerce

How an eCommerce Business Can Improve Conversion Rates

3D Printing

Revenue Generation from 3D Printing Business

Recycling

General Economics of Recycling Business

Jewelry Business

Driving Range

Pros and Cons of Starting a Driving Range Business

Bike Shop

Advantages and Disadvantages of Starting a Bike Shop Business

Sustainability / Alternative Businesses

Hydroponics - Understanding Revenue Forecasting Logic

Cloud Computing

Bull Case for Starting a Cloud Computing Business

General

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

Accounting and Finance Articles

Topics related to general finance and accounting departments. Check out more spreadsheets for accountants here.

Calculations

MOIC (multiple on invested capital)

Efficiency

Financial Modeling Techniques

Inventory

Accounts Receivable and Payable

Depreciation

Job Costing

Best Practices in Job Costing

Sales Pipeline Dashboards

Best Visualizations for a Sales Pipeline Tracker

Real Estate Finance

Purpose of a Cost Segregation Study

Crypto Economics

Economic Limitations of Blockchain and Cryptographic Token Ecosystems

Break-even

Various Methodologies to Conduct a Break-even Analysis

Leveraged Buyout

How Does a LBO Model Work and Pros/Cons

Using Financial Models

General

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

General Investing Articles

I cover a wide range of topics here that are related to evaluating investments of any kind.

Metrics

IRR vs Cash-on-Cash

Sustainability

Sustainable Investing by Large Companies

Stocks

Wealth

General

How Individual Investors Use Financial Models

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

Real Estate Articles

All the knowledge you need to know about real estate investing by asset type. You can check out all the real estate models I've built here.

Apartments

Tips for Buying Apartment Buildings

Assisted Living

Hotel

Multi-family

Mixed-use

Self-storage

Short-term Rentals

Mobile Home parks

Real Estate Brokerage

Seller Financing

Condos

Strategy

REITs

General Types of REITs and Their Risk Profile

Hospitality

Biggest Reasons Hospitality Businesses Fail

General

Metrics

What is Average Rent per Available Room

If you want a jumpstart in your financial modeling, check out The Super Smart Bundle.

IRR vs Cash-on-Cash: What's Better For Evaluating an Investment?

Internal Rate of Return (IRR) and Cash-on-Cash Return are both metrics used in the world of finance and investing to gauge the performance of an investment. However, they measure different things and are best used in different contexts. Here's how they compare and contrast:

Self-storage Real Estate Investment Strategies by Risk Level

Self-storage investment strategies can be classified into different risk categories, primarily including low-risk, moderate-risk, and high-risk. These categories are not absolute and can have some overlap. The investment strategy you adopt will depend on your risk tolerance, financial situation, and investment goals. Let's dive in:

How to Simplify Your Finance Department

Simplifying the finance department can lead to improved efficiency, cost savings, and better decision-making. Here are some strategies to effectively simplify your finance department:

When is the Best Time to Use Seller Financing as a Buyer?

If you've never heard of seller financing, but are a real estate investor (as a buyer of properties), it is worth understand the term 'seller financing' and some information about it.

Tips for Selling Used Cars

Selling a used car can be an overwhelming process, but with proper preparation and execution, you can maximize your chances of a successful sale. Here are some tips to help you sell your used car:

SaaS MRR Calculator

Managing a SaaS business can get cloudy real quick. This financial model template was geared towards the most important metric for recurring revenue subscription companies. That is MRR and how that MRR has changed from period to period. It is probably the most important metric when figuring out what is driving growth or losses.

Preferred Equity vs Preferred Return - Comprehensive Explanation

Preferred equity refers to a class of ownership in a company that gives certain privileges and preferences to the shareholders holding such equity. Preferred equity holders have a higher claim on the company's assets and earnings compared to common equity holders in the event of liquidation or distribution of profits. A preferred return can fit inside a deal that has preferred equity or a preferred return could be the only aspect of a deal. I've seen this type of financing used for investors in many businesses (not just real estate).

Modeling GP Fees for Real Estate Syndication Deals

Today, we'll be delving into the realm of real estate fund mathematics. Our main focus will be on GP fees and how they flow through to the waterfall. I've already provided a rough sketch, and we'll now go through the calculations and discuss the process. For more real estate waterfall models, navigate to the real estate tab at the top.

SaaS Cohort Financial Modeling Example

In the below video I discusses cohort modeling for SaaS (Software as a Service) businesses and its impact on financial forecasting. Cohort modeling involves analyzing a group of customers who join in a specific month and tracking their performance over time. I explain the configuration and assumptions used in the model, such as contract value, retention rate, and churn.

Short-term Rental Businesses and Occupancy

If you want to know the number one risk and number one biggest factor that will determine the success or failure of your STR real estate business, it is occupancy. You want to track and measure this over time if nothing else. Below are some ways you can optimize occupancy.

The Purpose of Doing a Cost Segregation Study

Cost segregation is a tax planning strategy that involves the identification and reclassification of components of a property for the purpose of accelerating depreciation deductions. In simpler terms, it is a method used by property owners to optimize their tax savings by breaking down the cost of a property into different components that can be depreciated at different rates.

Methods to Derive Investment Requirements in a Startup Financial Model

Most of the financial model templates you see here on the site can be used as a startup forecasting tool. One of the more complicated logical things to build is the initial investment requirement. It may seem simple at first, but once you get down into the nitty gritty things can become less clear.

Why is Financial Modeling so Tough for SaaS Businesses?

If you didn't know, the first ever financial model template I built was for SaaS businesses. It was a long journey to get from there to here and along the way my modeling techniques have evolved to meet the needs of customers. There are all sorts of permutations in the industry and usually everyone has their own unique monetization strategy / subscription pricing that they want to use. However, general templates can be very useful when you stick to building the underlying logic and doing it just right can mean a long-term useful model to a wide audience. This is probably the most challenging type of financial model I have built next to cash flow waterfalls for real estate.

New Housing Development or Condos: 10 Year Real Estate Financial Model

The financial analysis of a new housing development involves assessing the costs and potential returns associated with the project. It includes evaluating factors such as land acquisition, construction costs, financing options, projected sales, and operating expenses. By conducting a comprehensive financial analysis, developers can make informed decisions about the feasibility and profitability of the housing development before proceeding with the project. You get a detailed and ready-to-work template out of the box with this file.

Excited for the New Condo Development Template

Hey everyone, happy Friday. I'll be headed out on some family stuff over the weekend, but on Monday I've got a brand new template I'm building from scratch. It is going to be for the development of condos. Here I'll talk about some general things I'm considering prior to jumping into the sheet.

Biggest Reasons Hospitality Businesses Fail

Hospitality businesses include hotels, airbnb / short-term rentals, assisted living facilities, coffee shops, and cruise ships. There are more, but those are the ones I've done a financial model template for. Once you think you've got a good financial plan in place, there are other things to do to avoid failure. These are not rocket science things, but they are really valuable if you just do them.

Conservative Growth Strategies for SaaS Businesses

First and foremost, if you are scaling a SaaS business, you need to know your numbers and the unit economics of the business. No matter if you are scaling slowly and conservatively with lower budgets or quickly and with large budgets, a firm understanding of things like average CAC, average LTV of a customer, all your pricing / bundle strategies, and any costs that scale up with user counts. That means a good financial model of some sort will be useful. These things are hard to visualize and calculate in your head if not near impossible.

Places Of Interest

Search Templates