Financial Model Template Update: Line of Credit Added to Made-to-Order Manufacturing Model

I have had quite a bit of interest in the made-to-order financial model over the last year and with that has come a few modifications that have made sense to use on the master version of this template. Let's dive in!

Template: Made-to-Order Manufacturing Financial Model


  • Added a line of credit facility. This makes it easy for the user to go in and manually define any loan draws over time on a monthly schedule. There is also a manual input for loan repayment and interest will auto calculate based on the balance each month, if there is a balance. The balance sheet, cash flow statement, income statement, and all relevant summaries have been updated with this assumption. Ratios impacted include the debt-service-coverage ratio. This is a great tool to help manage cash flow and the cost of borrowing over time. I've also displayed helper columns that show the operational cash flow and value of accounts receivable and inventory over time.
  • I also added a brand new alternative version of the MTO manufacturing model that also has the line of credit module. However, it is also updated with an input to automatically account for inflation of prices and expenses. (half of the fixed expenses in each cost section are manual and half you just enter the first year cost and the following years will follow the % increase input. Each row is configured independently.
  • Also, on the alternative version I made the fixed expenses tab all be annual figures instead of monthly. You can adjust what that cost is yearly, but the amount you enter is now the expected annual amount instead of the expected monthly amount.

Adding IRR Sensitivity Tables to 3 Real Estate Models

IRR sensitivity tables are invaluable in real estate models because they provide a clear, quantitative assessment of how changes in key assumptions, such as rental growth rates, cap rates, and construction costs, impact the internal rate of return (IRR). By systematically varying these inputs and observing the resulting IRR, investors and analysts can gauge the potential risks and rewards associated with different scenarios, enhancing their decision-making process. This helps in identifying the most critical variables that affect project viability, thus enabling more informed investment strategies and risk management. Ultimately, these tables support a thorough understanding of the sensitivity of returns to various market conditions and operational changes, ensuring that investors can make well-informed decisions based on a range of possible outcomes.

Real Estate Syndication Fees

 Real estate syndication fees are charges incurred during the process of pooling capital from multiple investors to invest in a real estate project. These fees compensate the syndicator (the party managing the investment i.e. the GP) for their work and can significantly impact the returns to investors. Here's a breakdown of common syndication fees and how they typically flow into a preferred return waterfall:

Owning a Business Can Hedge Against Inflation

Owning businesses can be a highly effective long-term strategy for several reasons, including its potential to combat the effects of inflation:

Financial Model Template Update: Adding Option to Accrue or Not Accrue Interest on Wind Farm and Biogas Models

I recently built the hydropower construction financial model and in it the construction loan needed an option to have the interest paid during the interest-only (i/o) period or accrue and compound. For the past week I've been debating on adding that functionality update to the wind farm and biogas models as they both have interest-only loan options, but if that is chosen, the interest automatically accrued and compounded until the REFI / conversion month. Now, they also have the additional feature to pay interest during i/o period or accrue and compound.

Why Excel is the Best Tool for Financial Planning and Analysis

Excel has long been a cornerstone tool for financial planning and analysis (FP&A) due to several key attributes that make it a powerful and versatile solution:

Financial Model Template for a Dam (Hydropower) - Renewable Energy Infrastructure

I am enthusiastic about embarking on the development of my fourth financial model within the renewable energy sector, specifically focusing on hydropower. This business model leverages the natural flow of water and gravitational forces to generate electrical energy, offering a sustainable and long-term energy solution.

Hydropower projects are capital-intensive, requiring significant initial investment. However, they promise substantial returns as they provide communities with a reliable source of clean energy for up to fifty years. My experience in financial modeling and planning for infrastructure projects ensures that this model will be meticulously designed to capture the complexities and potential of such a transformative endeavor.

Major Events That Shaped Financial Reporting and Accounting Standards

Below are some things that have shaped a big part of the industry I work in. 

If you want to support me and my continuous building of new bottom-up dynamic 3-statement models, check out these financial model templates that help anyone create robust projections across 100s of different industries.

Strategies to Keep an Auto Repair Chain Running During Slow Times and Location Scaling

 Maintaining the profitability and operational efficiency of an auto repair chain during slow times and managing location scaling requires strategic planning and implementation. Here are some strategies for both scenarios:

Stop Confusing Preferred Return (Pref) with IRR Hurdles

 People often confuse the terms "preferred return" and "IRR hurdles" because both concepts are related to the distribution of profits in real estate and private equity investments, and they both aim to ensure investors achieve certain financial benchmarks. However, there are key differences between them that can help clarify their distinct roles:

Strip Mall Real Estate Model - For Acquisitions - Up to 30 Tenants

This comprehensive template is designed for real estate operators specializing in the acquisition, renovation, and enhancement of strip malls. The model supports the management of up to 30 tenants and accommodates a holding period of up to 10 years. It includes detailed assumptions for joint venture partnerships, enabling precise financial projections and strategic planning for increased rental income and profitable exits.

Valuation Multiples for Top 10 Industries in the United States

 Valuation multiples for private companies vary by industry, size, growth prospects, and other factors. Here’s a look at the typical business valuation multiples for private companies in the 10 biggest industries in the United States, along with the major factors impacting their valuation:

Debt Funds and Real Estate

 Debt funds in the real estate industry are investment pools that lend money to real estate developers or owners. Investors put their money into these funds with the expectation of receiving regular interest payments, and eventually, the return of their principal. Here’s a detailed look at how these funds operate, the potential risks involved, and how to model such investments.

Start an Electrical Vehicle Charging Station Business: 10 Year Financial Model Template

Starting an electric vehicle (EV) charging station business involves tapping into a rapidly growing market fueled by the global shift towards electric vehicles. This business requires strategic location selection, such as high-traffic urban areas or corridors between cities, and an understanding of the technological requirements for different types of chargers. It also demands knowledge of regulatory environments, as government incentives and policies can significantly impact operations. Successful entrepreneurs in this space not only provide essential services to EV owners but also contribute to the infrastructure that supports sustainable transportation.

Revenue Leakage and SaaS: What it Is and How to Minimize

SaaS (Software as a Service) revenue leakage refers to the loss of potential revenue within a SaaS business. This typically happens due to various reasons, such as:

Latest Custom Financial Models Added to SmartHelping Plus - 5/6/2024

 This was a slower tranche of spreadsheet work in the last few weeks, but some very useful modifications were done in the equipment rental and SaaS acquisition space. I was actually considering updating the base equipment rental model with this update, but I've chosen to only add it here for now.

SmartHelping Plus Spreadsheet Update Log

 As I added new financial model templates to the SmartHelping Plus bundle, I'll be doing more in-depth explanations and videos about the customizations done to or the main premise behind the files that get added to this bundle. Here you will see time-stamped logs with a link to the update of each tranche. Usually I will try to do an update log every few weeks or at least monthly to go over all the new additions.

Download all these spreadsheets here.

Real Estate Model: Single Tenant Industrial

I've built a wide range of real estate models across many categories, including self-storage, multi-family, apartment buildings, mixed-use, condos, STRs, assisted living, hotels, and mobile home parks. However, single tenant industrial real estate underwriting is something I have not specifically built something for out of the box until now. This template has everything you need to fully analyze many different scenarios for the acquisition or new construction of industrial real estate targeted to single tenants.

5 Year LBO Financial Model with T12 and T3 Input Frameworks, Waterfalls, and More

Enhance your evaluation of new business acquisitions with this effective LBO model. It includes input frameworks for both Trailing 12-month (T12) and Trailing 3-month (T3) data, along with a variety of financing options. Tailor your analysis with entry multiples (based on EBITDA, Revenue, or Manual Entry) and exit multiples using the trailing 12-month EBITDA multiple. The model also includes detailed projections for expected revenue growth, cost of goods sold, operating expenses, and debt service coverage ratio. Streamline your deal analysis with this versatile financial model template.

Construction Business KPIs and How to Improve Each One

Key Performance Indicators (KPIs) for a construction business are crucial for measuring the effectiveness, efficiency, and success of various operations within the industry. Here are several important KPIs typically used in the construction sector:

Latest Custom Financial Models Added to SmartHelping Plus - 4/16/2024

This is the April 16, 2024 tranche of new custom spreadsheets that I have added to the SmartHelping Plus program. There are four new sheets here that range from manufacturing to enterprise SaaS and real estate development. You can see what real clients want built directly now.

Biomethane (biogas) Financial Model Template

This is my second big renewable energy financial model (the first was for a wind farm). It is exciting to feel like I am contributing in some way to a more sustainable future by using the skills I have. In this case, it is creating an awesome bottom-up financial modeling tool for the industry. This is a scaling and capacity-based model that deals specifically with feedstock processing, the related costs, and the resulting yield of such activity over time.

Diving Into the Details of a Semiconductor Manufacturer

The unit economics of a semiconductor manufacturer describe the revenue and costs associated with producing a single unit of product, such as a semiconductor chip. This analysis is crucial for understanding the profitability and financial sustainability of the manufacturing operations. Semiconductor manufacturing is notably complex and capital-intensive, involving high upfront costs but benefiting from economies of scale. Here’s a detailed look at the unit economics:

6 Reasons Financial Statements Include Depreciation Expense

 The inclusion of items like depreciation in financial statements offers several benefits that enhance the insights these statements can provide about the financial health and operational performance of a company. Here's how depreciation plays a key role in this regard:

What are Non-cash Expenses?

Non-cash expense items are expenses recorded on a company's income statement that do not involve actual cash outflow during the accounting period. These expenses are accounted for to represent the cost of using or consuming an asset over its useful life or to adhere to accounting principles such as the matching principle, which states that expenses should be matched to the revenues they help generate. Non-cash expenses provide a more accurate picture of a company's operational costs and profitability by including the cost of assets that are not paid for in cash at the time they are consumed.

Why I Include Terminal Value in Startup Financial Model Templates

 Including a terminal value in a 5-year startup financial model is crucial for several reasons, particularly when assessing the long-term viability and valuation of the company beyond the initial forecast period. Here’s why it’s important:

Maximizing Customer Lifetime Value: SaaS/Membership vs. One-Time Revenue Models Explained

The question of whether customers have a higher Lifetime Value (LTV) with a Software as a Service (SaaS) / membership model compared to a one-time revenue structure is multifaceted, involving considerations around customer behavior, pricing strategies, value delivery, and business sustainability. The core difference between the two models is that SaaS/membership models rely on recurring revenue from subscriptions or memberships, while one-time revenue models rely on single transactions for products or services.

Investing in Startups and Dilution

Dilution occurs to an investor's ownership percentage in a company when the company issues more shares, typically during a capital raise. Here's a step-by-step explanation of how it happens:

Payroll KPI Excel Template

Tracking the right Key Performance Indicators (KPIs) for payroll can significantly impact the efficiency and effectiveness of your payroll process, ensuring compliance, enhancing employee satisfaction, and contributing to better financial management. This template tracks the most essential payroll KPIs.

Direct vs Indirect Method for Cash Flow Statement

Ok accounting people, you may have heard that when doing a cash flow statement, there are multiple methodologies that can be used to come up with the actual total cash flow change in the period. When building this logic in a 3 statement model in Excel, with formulas, this consideration is relevant and important. I'll talk about what method I use in every single model you see on this site.

Overlooked Things in Real Estate Diligence That Can Cost You

 Diligence and attention to detail are paramount in real estate investing for several reasons, as the complexity and significant financial stakes involved can lead to substantial losses if key aspects are overlooked. Here are why they're important and examples of commonly overlooked areas:

Wind Farm Financial Model Template

I'm jumping into the renewable energy space with this new financial model. It is specifically for wind farms / wind turbines. The revenue and expense assumptions presented new dynamic logical configurations to get a applicable financial feasibility study spreadsheet tool. These businesses are capital intensive and require precise planning in order to understand all the various unit economics / potential returns.

DCF Models and Valuation

Mastering DCF Analysis in Excel Financial Modeling

Creating a robust Excel model capable of performing Discounted Cash Flow (DCF) Analysis involves a nuanced understanding of valuation methodologies and the integration of DCF analytics. This guide delves into the critical aspects of constructing a DCF model, focusing on valuation considerations and the application of DCF analysis within financial modeling.

Job Bidding Excel Template

This is a great tool for contractors that need to refine their job bidding process. I made the template as granular as possible so there are inputs for each individual line item. The calculator looks at three types of costs: wages, direct costs, and fees.

Financial Model Templates: Scaling Models vs Single Operation Models

Many of the financial models I've built here on the site can be grouped into one of two categories. Scaling or single location. An example of 'scaling' would be a financial plan for opening 10 franchises over 5 years. An example of a single location is just like it sounds, a financial plan for opening a single laundromat or single mobile home park.

Historical Home Sales, Blockchain, and Financial Feasibility

I normally focus on just financial modeling templates, but I also dabble in a bit of crypto / blockchain research as well as real estate underwriting. Here are some ideas I've found about trying to integrate something with historical home sales so there is a single, cohesive record. I think that would be valuable, but not sure the economics work.

3 Statement Modeling and Capex

Here I am looking at one of the most common types of transactions included in a 3 statement model template. It is capital expenditures or Capex. In simplest terms, it just means money spent on items that have a useful life greater than 1 year. These are generally considered long-term fixed assets. Examples involve buying buildings, equipment, and property. I'll try to explain how to connect everything below.

Fair Value vs Historical Cost Accounting

Fair value and historical cost are two fundamental valuation methods used in accounting and financial reporting. Each approach has its advantages and disadvantages, and the choice between them can significantly impact how a company's financial health is perceived. Here's a comprehensive look at both methods, their pros and cons, and an analysis of which provides better information:

Update to Multi-Family Real Estate Model: Single Property Version

 I actually walked through this update in real time as I removed property configurations two through four. You now have a single property version that comes with the download and a four property version.

Financial Model Templates for New and Innovative Businesses

I try to continually improve how I communicate the value of the financial models you will find on this site. One way to by finding ways to categorize the 100s of spreadsheets. Here, I'm going to focus on all the templates that were designed and/or can be utilized for new and innovative businesses. I consider a 'new' business something that didn't exist 10 years ago and I consider an 'old' business something that has been around for multiple decades. However, there could be models that represent a new or innovative method applied to an older business model, see below:

Real Estate Template: Adjusted Cost Basis

Calculating the adjusted cost basis of a property is a critical but complex process that involves several intricate steps and considerations. The adjusted cost basis is essentially the original purchase price of the property plus any improvements, less any depreciation, damages, or losses. This figure is crucial for tax purposes, particularly when selling or disposing of the property, as it helps determine the capital gains tax owed.

Pros and Cons of Starting a Home Service Business and Scaling

 Starting a home service business, which can range from cleaning, landscaping, home repairs, to personal training, offers several advantages and challenges. The profitability of such a venture can vary widely depending on the specific industry, location, and business model. Here's an overview of the pros and cons, potential earnings, and steps to scale up a home service business.

Aligning Interests: Modeling Fair Real Estate Joint Venture Structures

 Modeling a real estate joint venture (JV) in a fair way involves structuring the investment so that it aligns the interests of all parties and provides an equitable return based on the risk and capital each party contributes. The choice between preferred equity, an internal rate of return (IRR) hurdle, and simple return structures depends on the goals, preferences, and risk tolerance of the investors involved. Let's explore each option:

Pros and Cons of Starting a Daycare Business / Facility

 Starting a daycare business can be a fulfilling venture, both personally and financially, for those passionate about child care. However, like any business, it comes with its set of challenges. Here's a comprehensive list of pros and cons to consider:

The Difference Between Required Rate of Return and Discount Rate

The discount rate and the required rate of return are fundamental concepts in finance, used to evaluate investments and determine their value. While they share similarities in their roles of assessing the attractiveness of investment opportunities, they serve different purposes and are used in different contexts. Let's explore both terms to understand their differences and similarities.

The Time Value of Money and IRR / NPV in Financial Modeling

Ok, we are going to talk about something that effects the personal saver as well as big corporate finance teams. That is the time value of money. Some people think it is voodoo (same with the IRR) calculation, but it is a very real concept that should be understood by anybody in finance. There are a lot of good ways to explain its significance and place within financial modeling / financial planning and analysis.

What "Four-wall" EBITDA Means - Restaurant and Retail Financial Modeling

 "Four-wall EBITDA" refers to a financial metric used primarily in the retail and restaurant industries, although it can be applied to any business with physical locations. It measures the earnings before interest, taxes, depreciation, and amortization (EBITDA) of a particular location or unit, taking into account only the costs and revenues that occur within the four walls of that location. This includes sales revenue and direct operating expenses such as labor, utilities, and supplies, but excludes overhead costs like corporate expenses, taxes, and interest payments on debt.

Advanced Financial Modeling Configuration for Laundromat Template

I had a customer request to add a whole bunch of financing toggles and configurations to the Laundromat financial model. These were really cool so I decided to produce a second advanced version that had these items included. In order to understand them, a strong finance background is going to be required. It is easy to use the Excel template, but it is hard to understand the concepts if you've never heard of them before. See more below.

How Withdrawals / Deposits Effect a Hedge Fund High Watermark

 Determining the ending period high watermark for an investment account when there is a withdrawal requires a bit of calculation, primarily to adjust the high watermark for the impact of the withdrawal. The high watermark is a concept used in the management of investment funds, particularly hedge funds, to ensure that managers are only paid performance fees on net new profits. Note, agreements can vary and every hedge fund could have a different way of handling redemptions/contributions after the initial investment.

Hedge Fund Fee Model Template: Soft Hurdle with High Watermark

I was genuinely surprised to uncover the intricate details involved in the 2 and 20 compensation model for hedge funds. It's fascinating to learn about the various configurations possible within this framework. The model outlined here incorporates the concept of a soft hurdle, which resets annually, and provides for the possibility of both an asset management fee and a soft hurdle option. Crafting these provisions into a legal operating agreement proves to be a complex task, emphasizing the value of a simplified model to effectively communicate these concepts to investors.

Just-in-Time (JIT) Inventory and Car Dealerships

 The Just-In-Time (JIT) inventory management system, which aims to reduce inventory holding costs by having goods arrive as they are needed in the production process, has been widely adopted in manufacturing (see this made-to-order manufacturing financial model for more on that), notably in the automotive industry. Its application in car dealerships, however, presents a different set of challenges and opportunities. Whether JIT is the way of the future for car dealerships depends on several factors:

SaaS CFO Dashboard Template

As a CFO of a Software as a Service (SaaS) company, focusing on key financial and operational metrics is essential for driving strategic decisions, ensuring the company's financial health, and achieving long-term growth. 

SaaS Rule of 40: Financial Analysis - EBITDA and Revenue Growth

 The "Rule of 40" is a popular benchmark in the Software as a Service (SaaS) industry that evaluates the performance and health of a company. It serves as a guideline for balancing growth and profitability in a SaaS business. The rule states that a company's growth rate plus its profit margin should equal or exceed 40%. Here's how it breaks down:

Worst SaaS Businesses to Start or Acquire

Starting a SaaS (Software as a Service) business can be a lucrative endeavor, but success is not guaranteed. Certain types of SaaS businesses may pose higher risks or face more challenges than others. Here are some types of SaaS businesses that could be considered more challenging or less favorable to start, based on market saturation, high competition, significant regulatory hurdles, or a limited customer base:

What May You Want to Include on a SaaS CFO Dashboard

For a SaaS (Software as a Service) CFO dashboard, focusing on financial metrics that provide insights into the company's performance, growth potential, and financial health is crucial. Here are some key elements to include:

Why Banks Want to See Financial Projections for Your Startup

If you are trying to start a new business, one of the first things that is required to get the ball rolling is a request for funds from the bank (unless your own money). So, in most cases a financial projection needs to be submitted to the bank. This is a major source of my clients: Startups that need financing from a bank. Investors usually want to see financial projections as well.

Qualifications and General Responsibilities of a CFO

When I was going through college, I always thought a CFO must be a CPA (Certified Public Accountant) at the very least. As I made it through to more advanced finance classes and learned, it was clear this was not the case. Having strong general accounting knowledge is definitely important, but there are many aspects to being a CFO that have nothing to do with accounting rules, taxes, or regulations of financial reporting.

Do Good Managers Need Industry-specific Experience?

The necessity of industry-specific experience for a good manager can depend greatly on the context of the role and the industry itself. However, while industry knowledge can be very beneficial, it often comes second to possessing strong management skills. Good management techniques and the ability to lead, motivate, and effectively communicate with a team are generally considered more crucial. These foundational skills can be applied across various industries, and specific industry knowledge can be acquired over time.

Daycare Service Financial Model Template

When developing a comprehensive financial model for initiating a daycare service business, it's crucial to incorporate certain key assumptions. In my approach, I've factored in constraints related to the capacity of different types of care, along with two additional sources of revenue.

Financial Model Templates Grouped by Complexity Level

To understand the complexity involved in each category, I'll try to put a little explainer on why a given template is at a certain level. This is going to be roughly based on the amount of accounting and finance knowledge as well as industry-specific knowledge required to use the template to its fullest extent. There is a subjective element to this as it is my opinion about how much knowledge you need to understand a given template, but this should give general clarity as to what each template feels like to use. I've not included 100% of my templates here, but it should give you a good idea of what to look for when trying to understand various frameworks that are being used.

SaaS Pricing Models and Templates

 SaaS (Software as a Service) pricing models vary depending on the needs of both the provider and the customer. Here are some of the most common models:

Loan Portfolio Analysis Template

Elevate your financial analysis with this cutting-edge Loan Portfolio Analysis Template, meticulously designed for Microsoft Excel. This sophisticated tool is a game-changer for financial professionals seeking to dive deep into their loan portfolio data with ease and precision.

Diving Into the Secrets of SaaS Success: Navigating Startup Costs and Equity Essentials

Starting a Software as a Service (SaaS) business involves various startup costs, which can be categorized into several key areas:

Financial Model Template for the Food Industry

In the dynamic and competitive realm of the food industry, the foundation of a successful business strategy often lies in the effective utilization of financial models. The right financial model template for creating pro formas in this sector depends on the underlying unit economics. This template will empower businesses to accurately forecast revenue, manage costs, and anticipate market trends. It integrates industry-specific variables such as seasonal demand fluctuations, supply chain logistics, and consumer spending habits, offering a comprehensive tool for financial planning and decision-making. Food industry professionals seeking to navigate the complexities of financial forecasting and strategy development will benefit from the below.

Modeling Negative Churn in SaaS Businesses

Some consider negative churn the holy grail of SaaS (Software as a Service). It simply means that there was an increase in MRR from existing customers that was greater than the MRR lost from churned customers. Hence, a negative of a bad thing, is a good thing.

Excel-based SaaS Financial Model

If you are looking for the best SaaS financial model template to meet your needs, you've landed in the right place. I can't tell you how many times my clients have simply said "I wish I would have found you first". When it comes to modeling out SaaS business cases in Excel, my frameworks have been heavily utilized in small and medium-sized businesses and I've even built a few for billion-dollar enterprises.

What is Possible with Excel Financial Models?

I have spent my entire professional adult life working in Microsoft Excel. The earliest exposure was in Accounting class during college. My first job involved working with income statement and balance sheets that were being prepared in Excel as a transition from an old software to a new software. I then moved into real estate analysis and from there, general financial modeling.

Cleaning Service Financial Model Template - Recurring Revenue Contracts and/or Flat Fee Jobs

I've done a janitorial cleaning financial model template in the past, but that was only geared toward hourly based billing and wages. This new model is for commercial or residential cleaning service businesses that operate with recurring revenue contracts and/or have flat fee jobs. All the assumptions are geared towards those revenue streams. You can create clean financial projections with ease by using this spreadsheet.

How Technological Advancements and AI are Effecting Accounting

 Technological advancements, particularly in Artificial Intelligence (AI) and Blockchain, have brought significant changes and improvements to the accounting industry. These technologies are reshaping traditional accounting practices, making processes more efficient, secure, and transparent.

Valuation of a Private SaaS Business

 Estimating the value of a private SaaS (Software as a Service) business involves considering a range of metrics that reflect its financial health, growth potential, market position, and operational efficiency. Some of the most important metrics to consider include:

Risk-adjusted Returns: Calculation and Usefulness

What Does Risk-Adjusted Return Mean?

Risk-adjusted return refers to the financial gains or performance of an investment, taking into account the level of risk that was taken to achieve these returns. It's a concept used in finance to understand how much risk is involved in producing a specific return.

Management Template: Pareto Analysis (80/20 rule)

Pareto Analysis, often referred to as the 80/20 rule, is a technique used for decision-making based on the Pareto Principle. This principle states that, for many events, roughly 80% of the effects come from 20% of the causes. In business and economics, it is used to identify the most important factors in a set of factors that contribute to a particular effect.

Financial Model Templates for the Most Profitable Businesses

The profitability of these industries can be attributed to a combination of factors that include market demand, specialized skills, and the nature of the services or products offered. Here's a breakdown of why these industries are considered most profitable: