Coworking Business Financial Projection 3 Statement Model (Excel XLSX)

A Co-working Business Financial Projection 3 Statement Model is vital for shared workspace providers. It forecasts income, expenses, and cash flows, enabling strategic planning, pricing decisions, and resource allocation. It supports decision-making related to membership fees, lease costs, and amenities investment. Accurate projections empower co-working businesses to adapt to market shifts, secure funding, and ensure profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with business objectives. This model is indispensable for both established providers and startups, ensuring their financial viability, competitiveness, and ability to thrive in the dynamic co-working industry while optimizing revenue and managing costs effectively.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of a 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing business operating coworking spaces generating income from renting out desk and office spaces and other ancillary income.

The excel model allows the user to model up to 3 coworking locations with up to 15 coworking space types (e.g. hot desk, fixed desk, private office etc.). It also allows the user to model the lease and renovation (CAPEX and OPEX) costs of commercial properties being converted into coworking spaces.
The model also allows for the modelling of other income (e.g. food and drink sales, events etc), operating expenses per location, staff costs, taxes, dividends, loan facilities and changes in equity.

The model follows good practice financial modelling principles and includes instructions, line-item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the forecasted cash flows.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across up to 5 years and summarised on an annual basis.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio.
Bar charts summarising income statement and Balance Sheet projections
Revenue and expenses by location
Key metrics by location including rental volume, average occupancy percentages, revenue and costs per square meter and per seat
•  Discounted cash flow valuation using the forecasted cash flow outputs.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations and conditional formatting to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and month;
•  Naming for locations, coworking space types, operating expenses, staff costs, fixed assets and borrowings;
•  Income and cost allocation by location
•  Sales tax applicability for revenue, expense and fixed asset items.

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Location first rental month, first operation month, size, rental cost per square meter, renovation costs and transaction costs;
•  Coworking space size, occupancy and price per month per seat
•  Staff costs including number, annual wage, social security costs and bonus costs
•  Operating expenses per location and total company basis;
•  Capitalisable costs including addition amounts and useful life;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Borrowings including addition amounts, interest rate and maturity date;
•  Share Capital additions;
•  Discount rate inputs (for valuation calculation).

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows good practice financial modelling guidelines and includes instructions, line-item explanations, checks and input validations;
•  The model contains a flexible timeline that allows for a mix of Actual and Forecast period across a 5-year period. This allows projections to be easily rolled forward;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model 3 existing or new coworking locations each with their own unique renovation costs, rental income, operating expenses and coworking space setup;
•  The model is not password protected;
•  The model is reviewed using specialised model audit software to help ensure formula consistency and reduce risk of errors;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Coworking Locations – 3 locations
Coworking spaces – 15 types
Other income – 8 categories
Staff costs – 8 categories
Operating expenses – 20 categories;
Fixed Assets – 5 Categories
Borrowings – 3 facilities
•  Apart from projecting rental and other income and expenses the model includes the possibility to model depreciation of capitalizable costs, borrowings, dividends and corporate and sales tax;
•  Business name, currency, starting projection period and volume units are fully customisable;
•  Revenue, cost and fixed asset descriptions are fully customisable;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  Loan facilities allow for the amortisation of the principal balance across the full or remaining loan period up to the maturity date.
•  The model includes instructions, line-item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.