If you are starting a new junk removal service business or want to tweak your existing operations, this financial model template can help. It is important to get an understanding of pricing, how certain variables effect profit and cash flow, and what the potential returns look like under certain scenarios. You can find out for yourself / management and potential stakeholders all of these things by using this spreadsheet.
After purchase, the template will be immediately available to download. It is also included in the industry-specific models bundle, the service businesses bundle, and the Super Smart Bundle.
This is the first model I've built in a while where it doesn't require a matrix-style framework for the revenue and direct cost assumptions (aside from depreciation). The user can modify the following assumptions in order to produce all the various financial analysis reports:
Revenue Assumptions:
- Input expected monthly leads by up to four sources (manually define first 24 months and drive remaining years based on a defined % growth). This inherently lets you account for seasonality.
- Input the conversion rate of each leady type.
- Define the average price per job and average add-ons per job as well as annual price growth.
- Define the average job-hours per job (meaning if it takes 2 people 1 hour to do a job on average, that is 2 job hours.
- Define the average job-hours a laborer will do per month on average.
- Define the annual fully loaded wages per laborer and growth over time.
- To understand how many trucks you need, define the number of jobs a single truck can handle /month.
- Define other direct costs per job.
- Select if you are purchasing or leasing trucks, if leasing there is a cost input row in the OPEX tab and if purchasing you can enter expected costs for maintenance/taxes/insurance.
- Define average fuel costs for trucks.
- Define the average cost per paid lead.
- If this is a franchise, input the royalty fees, ad fund fees, and initial franchise fee (amortized).
- Note, if purchasing trucks, the depreciation is considered a direct cost that is non-cash and hits gross profit.
- Full corporate overhead section, full-time employee schedule, two operating loans, and other initial startup costs.
- Select if you want to include a terminal value, if so, define the EBITDA multiple you exit at as well as the expected value of trucks relative to their book value at exit. Any debt will be assumed to be paid back if 'exit' scenario is selected.
- A resulting DCF Analysis populates and a discount rate can be entered to value the expected cash flows.
- Dynamic monthly and annual 3-statement model (income statement, balance sheet, and statement of cash flows).
- Annual executive summary, showing all high level financial line items down to cash flow.
- All primary line items have charts as well as a few KPI charts.
- DCF Analysis for all viewers, including investor / operator / project.
- IRR, Equity Multiple, and total ROI.
- Monthly and Annual Pro Forma detailed view down to cash flow.
- Sources and Uses, including partial burn and other cash flow items that drive minimum equity requirements.
