Travel agencies facilitate travel and other related services for their customers. They have various revenue streams and cost structures. Here's a detailed breakdown:
Financial projections for a startup are critical for several reasons: they can help you understand the feasibility of your business model, secure funding, and plan for the future. When crafting these projections, there are several key considerations you should keep in mind:
In this video, I wanted to dive down into how a user would use one of the startup financial models here on the site to try and figure out what was financially feasible for the target business. In this case, it was for a plumbing service business, but the general structure you see and methodology behind the flow of assumptions to cash flow forecasting is similar in all the models on this site.
I had a client that was wondering how to properly account for leasehold improvements in the gym / fitness center financial model. The gist of it was they were acquiring the facility and operating the business, leasing the facility, and contributing a fair amount of leasehold improvements.
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:
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.
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, 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.
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:
SmartHelping / 12-Month Financial Tracking / Excel
Keep your side-business income, expenses and cash flow organized throughout the year. Track multiple income streams, review profit and margins, and see how business activity affects your savings.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the template in action
Watch the walkthrough to review the income, expense and cash flow inputs. The current template also includes monthly and year-to-date net profit margin calculations, added after this video.
What the template includes
Enter your side-business activity in one workbook and review the automatically calculated monthly and year-to-date results.
Choose the tracking year to update the 12-month period automatically. Record up to seven income streams each month, with year-to-date totals calculated for you.
Record business-related expenses in up to 30 slots each month. Cost of goods sold can be entered in this expense section alongside other business costs.
Review monthly and year-to-date profit and loss, plus the added net profit margin calculations for both periods.
The template calculates an income tax estimate from year-to-date net income and the income tax rate you enter.
Use separate inputs for depreciation add-back, loan proceeds, debt repayment and capital expenditures to track business cash flow and savings over the year.
Review charts for revenue, net income after tax, cash flow and the savings balance across the 12-month period.
From profit to cash flow
The template tracks profit and loss, then includes separate cash flow inputs below the net income line to account for business activity that affects the available cash and savings balance.
Use the depreciation add-back input to account for the difference between a noncash expense and the cash flow generated by the business.
Record business loan proceeds, debt repayments and capital expenditures in their separate cash flow lines. Include business-related activity in these inputs.
Review the cash flow and savings balance alongside monthly revenue and after-tax net income to understand how the side business performs over the 12-month period.
How to use the template
Enter the year you want to track so the template updates the 12-month period.
Enter revenue across up to seven income streams and business expenses in the 30 available expense slots per month.
Set the income tax rate and record business-related depreciation add-back, loan proceeds, debt repayments and capital spending where applicable.
Review monthly and year-to-date profit, margins, cash flow and savings. For a new year, duplicate the Template tab, rename it for that year and enter the new year’s data.
Who this template is for
Use the tracker to organize annual financial information and see the relationship between business income, expenses and cash.
Bring side-gig revenue and business expenses together so you can review monthly performance and year-to-date totals.
See how operating results, equipment purchases and business financing affect cash flow and savings over the year.
Also available in these bundles
This template is included in the Accounting bundle and the Super Smart Bundle.
Questions before you buy
Track up to seven income streams and enter up to 30 expense slots per month across a 12-month period. Year-to-date values calculate automatically.
Yes. Duplicate the Template tab, rename the copy for the new year, update the tracking year and enter the data for that year.
There is no separate COGS section. Enter cost of goods sold in the business expense section along with other business-related expenses.
The template uses year-to-date net income and the income tax rate you enter to calculate an income tax estimate.
Yes. Separate cash flow inputs are available for capital expenditures, loan proceeds and debt repayment, along with a depreciation add-back. Use those lines for business-related activity.
Yes. Monthly and year-to-date net profit margin calculations were added after the video walkthrough.
Keep the financial picture in view
Get the Side Gig P&L Tracker for $45 and organize a year of income, expenses, profit, cash flow and savings.
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.
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:
Fundraising for a startup is a critical and challenging process. Here's a strategy to approach it step by step:
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.
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.
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:
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.
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:
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, 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.
SmartHelping / Subscription Business Model / Excel
Build a financial forecast around the economics of acquiring, retaining and serving subscribers. Connect pricing, promotions, customer costs and inventory timing to cash flow, funding needs and investment returns.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the model in action
Watch the walkthrough to review customer acquisition, pricing, promotions, retention and operating assumptions. Open the screenshots below for a closer look at the workbook.
What the model includes
Model a subscription box business where customers pay a monthly fee for one or more deliveries of curated products.
Configure up to six advertising channels using spending and cost-per-acquisition inputs to drive new subscriber growth.
Use monthly traffic and conversion-rate assumptions to model customers acquired through organic channels.
Set monthly pricing and total monthly cost per customer for each of up to six subscription levels.
Set retention assumptions for each level and define the percentage of the full price paid in each customer month, including first-month-free or other introductory offers.
Build a fixed-cost schedule for managers, rent and other operating expenses that are separate from subscription box delivery costs. Each cost item has a start-month selection.
Use the inventory purchase offset based on buying frequency to reflect the timing of inventory purchases in the forecast.
Customer cohorts, contract terms and promotions
Each pricing tier includes a contract term and retention assumptions for the monthly cohorts of new customers joining that tier.
Enter the percentage of customers retained over the life of each monthly cohort. Use an exponential-decay pattern, a linear pattern or another curve that matches your expected customer retention.
The model assumes customers pay their subscription price each month, including when the contract term is longer. A 12-month contract is modeled with monthly payments over those 12 months.
For each subscription level, define the percentage of the regular price collected in month one, month two, month three and so on. Use these inputs to reflect introductory discounts and free-month offers.
Financial outputs and investment analysis
The financial projections update from your assumptions across a forecast period of up to 72 months.
Review monthly and annual income statements, balance sheets and cash flow statements, plus pro forma detail showing EBITDA and cash flow.
Track average customer acquisition cost (CAC), lifetime value (LTV), LTV-to-CAC, monthly churn, annual recurring revenue (ARR) and average revenue per account.
Estimate the minimum equity needed to maintain a positive cash position under the entered assumptions, based on startup costs, capital expenditures and operating cash burn.
Include debt and review its effect within the financial forecast alongside the operating cash inflows and outflows.
Evaluate discounted cash flow and internal rate of return. The optional exit value uses a multiple of trailing 12-month subscription revenue.
Use the annual summary and detailed monthly and annual reports to communicate the financial plan and compare alternative assumptions.
How to use the model
Enter advertising spend and cost per acquisition for up to six paid channels, then add organic traffic and conversion assumptions.
Set prices, monthly cost per customer, contract terms, retention curves and introductory promotions for up to six tiers.
Enter fixed expenses and start months, inventory purchasing timing, startup costs and capital expenditures. Configure debt if it is part of the plan.
Review cash needs, statements, KPIs, DCF and IRR. Vary pricing, customer costs, ad spending, acquisition costs, traffic and conversions to compare downside, base and upside cases.
Who this model is for
Evaluate the economics of a curated product offering for an audience such as beauty enthusiasts, food lovers, readers or pet owners. Test the relationship between acquisition, retention, pricing and delivery costs.
Review whether growth assumptions, introductory offers, purchasing frequency and operating costs support the cash flow and funding plan for the next stage of the business.
Business planning considerations
Consider the product, marketing and operating choices behind the numbers when developing your scenarios.
Define the interests your boxes serve, the value of the curated selection and how personalization or a surprise element fits the offer. Reflect expected customer retention in the model.
Consider targeted campaigns, community engagement, referrals and potential cross-selling or upselling when developing the broader business plan. Test the acquisition and retention assumptions that support it.
Plan the buying cycle, bulk purchases and supplier or brand collaborations needed to curate boxes. Review how the timing of those purchases affects cash requirements.
Evaluate whether fulfillment processes, product curation and operating capacity can support the planned subscriber base while maintaining the expected cost and customer experience.
Also available in these bundles
This template is included in the SaaS / Recurring Revenue bundle and the Super Smart Bundle.
Explore financial models and analysis tools for SaaS, subscriptions and recurring-revenue businesses.
View the SaaS bundleAccess the complete public SmartHelping template collection across industries and financial-analysis needs.
View the Super Smart BundleQuestions before you buy
Configure up to six subscription levels and six paid advertising acquisition channels. Organic customer acquisition is modeled separately using traffic and conversion assumptions.
The model supports up to 72 months, or six years, with monthly and annual financial reports.
Yes. Each subscription level includes a promotion schedule based on the percentage of the regular price paid in each customer month.
Payments are modeled monthly, even when the contract term is longer. A 12-month contract uses the tier’s monthly subscription price over 12 months, with discounts reflected through the promotion inputs.
Yes. Each pricing tier has its own contract term and retention assumptions for monthly cohorts. Enter the curve that reflects your expected customer behavior.
Yes. It estimates the minimum equity requirement to maintain a positive cash position under the model assumptions, based on startup costs, capital spending and operating burn. Debt is optional.
The exit value is based on a multiple of trailing 12-month subscription revenue. DCF and IRR analysis are also included.
Build the financial plan behind the box
Get the Subscription Box Financial Model for $125 and test acquisition, pricing, retention, promotions and costs across a six-year forecast.
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:
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:
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.
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:
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:
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:
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.
SmartHelping / 10-Year Financial Model / Excel
Build a financial forecast for a hydroponic or aeroponic farming operation. Connect crop area, growth cycles, yield and sales to operating costs, cash flow, funding needs and investment returns.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the model in action
Watch the walkthrough to review growth cycles, crop capacity, operating costs and financial outputs. Open the screenshots below for a closer look at the workbook.
What the model includes
Use the same framework to plan a farm startup, evaluate an acquisition or assess expansion over time.
Review up to 10 years of monthly and annual results, including the income statement, balance sheet and cash flow statement.
Configure up to 20 crops, each with its own launch month and assumptions for area, yield, growth cycle, prices and production sold.
Use up to eight variable cost inputs, with crop yield and variable costs defined on a growth-cycle basis.
Model growing-medium costs from active square footage and cost per square foot. Configure energy costs separately using watts per item type, item counts and cost per kWh over time.
Account for inside and outside investors and debt funding, then review IRR, ROI, equity multiple and discounted cash flow analysis.
Use the annual executive summary and visualizations to review operating performance, cash flow and the financial outcome of your assumptions.
Crop area, growth cycles, yield and sales
The model calculates average growth cycles per month from each crop’s cycle length in weeks, then uses crop-specific production and sales assumptions to populate the financial reports.
Assign square footage to each crop type and define its maximum yield per square foot per growth cycle. Express the yield in the same units used for the crop’s selling price.
Enter the growth-cycle length in weeks and the percentage of maximum yield attained over time. Adjust capacity attainment by crop type as the operation develops.
Set the percentage of production that is actually sold and the selling price for each crop. Adjust crop prices and the share of production sold over time to reflect the sales plan.
Expansion, cash requirements and investment
Coordinate the crop launches, capital spending and energy schedules with the timing of the operation.
Use crop start months, the capex schedule and the energy usage schedule to phase operations and capital requirements as a single farm or several farms scale over time.
Estimate the minimum equity needed to keep cash above zero under the model assumptions. The requirement updates with startup costs, capital expenditures and operating cash burn.
Adjust prices by crop type, expense costs and capacity attainment over time. Compare how different assumptions affect cash flow and funding needs.
Evaluate inside and outside investor participation, debt financing and potential exit strategies through the model’s DCF and return metrics.
How to use the model
Set up to 20 crop types with start months, assigned square footage, maximum yield per square foot and growth-cycle length in weeks.
Define the percentage of maximum yield attained, the percentage of production sold and crop prices over time.
Set variable costs, growing-medium costs, equipment energy usage and electricity prices. Time capital expenditures and crop launches to match the expansion plan.
Configure investor participation and debt funding, then review minimum equity, monthly and annual financial statements, the executive summary, DCF, IRR, ROI and equity multiple.
Who this model is for
Evaluate the financial effect of the crop mix, production area, growth cycles, selling prices, variable costs and energy requirements.
Assess a startup, acquisition or expansion using the cash flow forecast, equity requirement, financing assumptions and investment-return analysis.
Operating considerations
Evaluate the potential benefits of the planned system and reflect the relevant production, pricing and cost assumptions in the forecast.
Consider water use, nutrient delivery and the growing medium required by the system. Evaluate resource use and costs for the crops you intend to produce.
Assess the production area, planting density, growth-cycle length and expected yield. Consider the operating conditions needed for the planned production calendar.
Evaluate crop-health practices, pest management and the quality customers expect. Use realistic assumptions for the yield attained, the share sold and the achievable selling price.
Consider facility location, physical work requirements, proximity to customers and transport needs alongside capital and energy costs when comparing operating plans.
Also available in these bundles
This template is included in the Industry-Specific bundle and the Super Smart Bundle.
Explore financial models built around the operating assumptions of different businesses and industries.
View the Industry-Specific bundleAccess the complete public SmartHelping template collection across industries and financial-analysis needs.
View the Super Smart BundleQuestions before you buy
Yes. The model is designed for hydroponic or aeroponic farming operations using crop-specific area, yield, cycle-length, sales and cost assumptions.
Configure up to 20 crop types over a forecast period of up to 10 years, with monthly and annual reporting.
Enter each crop’s growth-cycle length in weeks. The model calculates average cycles per month and uses that timing with the crop’s production and cost assumptions.
Yes. Each crop has an input for the percentage of maximum yield attained and another for the percentage of production sold. These assumptions can change over time.
Energy costs have a separate configuration using watts per item type, total item counts and the cost per kWh over time, supported by an energy usage schedule.
Yes. Crop start months, the capex schedule and the energy usage schedule support planning an operation that expands over time.
Yes. The minimum equity requirement updates from startup costs, capital spending and operating cash burn to show the funding needed to keep cash above zero under the model assumptions.
Build the financial plan behind the growing system
Get the Hydroponics Farm Financial Model for $45 and evaluate production, costs, expansion and funding needs over a ten-year forecast.