Think of an equipment rental company as an asset-yield business: you buy or finance equipment, rent it out repeatedly, earn ancillary fees, maintain the fleet, and eventually sell used equipment. The best financial model is therefore not a simple “revenue grows X%” model. It should be a fleet model where revenue, costs, depreciation, capex, debt, and cash flow all flow from the equipment base.
Most Important Lever in Hotel Underwriting
The most important lever in hotel underwriting is RevPAR, but the most powerful sub-lever is usually ADR, not occupancy.
Why Founders Need Financial Models: Turning a Fundraising Guess Into a Growth Plan
Scenario: A founder is raising a seed round
Imagine a founder named Maya building a B2B SaaS company that helps small accounting firms automate client onboarding.
A Good Financial Model Enables Many Things
A financial model is a spreadsheet-based tool that helps you estimate how a business could perform financially under different assumptions. For a startup, it is especially useful because the future is uncertain and you need to understand how sales, costs, hiring, pricing, funding, and growth affect cash flow.
Three Primary Users of Startup Financial Models
So who uses financial models? and specifically ones made for startups? Let's see...
Financial Model Template for Scaling Any Crew-based Service Business
A fully integrated, 60-month financial and operating model for parking lot striping companies and other crew-based service businesses. It connects lead generation, job mix, staffing, equipment, working capital, financing, and overhead directly to monthly and annual financial statements, cash flow, and investor returns.
Customer Acquisition Theory - How Retention Patterns Vary Depending on Method of Acquisition
This is one for the SaaS people, but also relevant to any business with recurring revenue services. Note, you can enter data in various SaaS financial models to see how certain assumptions affect LTV and the bottom line. Let's discuss how the way a customer is acquired can result in different retention patterns.
Basics of Starting or Operating Your Own Trucking Company vs Starting a FedEx Fleet
Assuming U.S. operations, there are really three businesses to compare:
- Your own for-hire trucking company hauling freight for shippers and brokers.
- FedEx linehaul, using tractors to move FedEx-owned trailers between terminals.
- FedEx pickup and delivery, or P&D, using vans and step trucks for local package routes.
FedEx linehaul is the closest comparison to a traditional trucking company. FedEx P&D is closer to operating a large local delivery and staffing business.
Cash Flows and Securitization
An interesting aspect of modeling securitization deals is that the model is less about forecasting a single “correct” outcome and more about understanding how cash flows move through the structure under different stresses.
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