Please login here to save this document to a list.
If you don't have an account, you can register for free here.
BENEFITS OF DOCUMENT
Our financial model is a tool used to forecast and analyze the financial performance of a locksmith business. It provides a comprehensive representation of the business's income, expenses, and cash flow over a 10-year period. The financial model incorporates various assumptions and variables to generate projected financial statements, including the income statement, balance sheet, and cash flow statement.
Here's a description of a financial model tailored for a locksmith business:
The financial model for our locksmith business is a dynamic and robust tool designed to forecast and evaluate our financial performance. It incorporates key assumptions and variables to provide insights into our revenue generation, expenses, profitability, and cash flow.
Key Components of the Financial Model:
Revenue Projections: The financial model estimates our revenue based on factors such as the number of service calls, average transaction value, and pricing strategies. It allows us to understand the impact of changes in the service mix or pricing structure.
Expense Forecasting: The model captures various expenses, including employee salaries, equipment maintenance, inventory replenishment, marketing costs, and overhead expenses. It enables us to analyze the cost drivers and make informed decisions to optimize our expenditures.
Profitability Analysis: By combining revenue projections and expense forecasts, the financial model calculates our gross profit margin, operating profit margin, and net profit margin. This analysis helps us understand our profitability drivers and identify opportunities for improvement.
Cash Flow Management: The model projects cash inflows and outflows, taking into account factors such as payment terms, accounts receivable, accounts payable, and capital expenditures. It allows us to monitor our cash position and ensure adequate liquidity to meet our operational and investment needs.
Benefits of the Financial Model:
Decision Making: The financial model provides valuable insights for decision making. It helps us evaluate the financial viability of potential investments, assess the impact of pricing changes or cost-saving initiatives, and make informed strategic choices.
Financial Planning: With the financial model, we can develop comprehensive financial plans, including budgets, sales targets, and expense allocations. It serves as a guide to track our progress and make adjustments as needed.
Investor Communication: The financial model enhances our ability to communicate our financial projections and performance to potential investors or lenders. It demonstrates our understanding of the business's financial dynamics and supports our credibility.
Overall, our financial model is a powerful tool that enables us to assess and manage the financial aspects of our locksmith business. It provides us with valuable insights, helps us make informed decisions, and supports our long-term financial success.
So a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.
On the manual tab you are able to feed the general information for the model such as: project name & title, responsible, timeline of the model and date and currency conventions.
Additionally, there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.
There is also color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents and checks).
Moving on to the Inputs: detailed inputs for revenues, price of the services provided, costs splits between direct costs (for the various services provided as percentage margins, client facing employees) and indirect costs (such as utilities & communications, rent, insurance, outsourced staff, advertising & promotions as well as other costs), working capital (receivables, payables, and inventory), fixed assets and capex (split into start up investment and new maintenance capex), debt & equity financing as well as valuation assumptions (such as discount rates used in the weighted average cost of capital).
In the summary tab you can see a high-level report with the main metrics and value drivers of the model. It can be readily printed on one page for your convenience.
Calculations: this is where all calculations are performed. The revenues are calculated based on the service calls and store sales, pricing and working hours assumptions and deducting the operating costs adjusted for inflation the operating profit is resulting. Based on the assets financed and the gearing of the financing the interest and depreciation are occurring. By using the working capital assumptions, the impact of the business cycle is presented. Finally, depending on the level of the investment considered the relevant debt financing is calculated (Long term debt and overdraft).
In the Outputs tab: everything is aggregated here into the relevant statements: profit and loss, balance sheet and cash flow.
Moving to the Valuation tab, a valuation is performed by using the free cash flows to the firm and then a series of investment metrics are presented (Net Present Value, Internal Rate of Return, Profitability Index, Payback Period, Discounted Payback Period, Sensitivity Analysis).
In the Graphs tab: Various graphs present the business metrics, revenues, operating costs, and profitability. Then multiple charts present the working capital, debt & equity along with cash, assets, and cash flows which results in a valuation on a project basis as well as on an equity basis together with the feasibility metrics.
In the Break-Even tab, you can find a break-even analysis and see how many sales you need to break even.
Sample Plan: a sample short business plan wording is also provided which you can use as a base for writing your own business plan.
Checks: A dedicated worksheet that makes sure that everything is working as it should!
Important Notice: Yellow indicates inputs and assumptions that the user can change, blue cells are used for called up cells, and white cells with black characters indicates calculation cells.
Got a question about the product? Email us at [email protected] or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Integrated Financial Model Excel: Locksmith Business - DCF 10 Year Financial Model Excel (XLSX) Spreadsheet, Big4WallStreet
ABOUT THE AUTHOR: BIG4WALLSTREET
We help small and midsize businesses' leaders with their strategic problems by creating or improving financial models, implementing tools to drive efficiency, performance, and better decision making.
With over a decade of experience in Financial & Business Modeling / Planning, Performance & Analysis, we have developed strong business understanding across diverse industries (Energy, Shipping, Manufacturing, Retail, Oil & Gas, Infrastructure, Food & Beverages, Agriculture, Healthcare, Telecoms, Real Estate, Construction & Hospitality), as well as strong capabilities across a range of financial modeling solutions.
We are one of the few financial modelers to be certified from both the Corporate Finance Institute (Financial Modeling & Valuation Analyst, Business Intelligence and Data Analyst), and the Financial Modeling Institute (Advanced Financial Modeler, Certified Financial Modeler). We build integrity and trust by providing high-quality tailor-made solutions to our clients.
Furthermore all these models can be tailor made upon your request in order to meet any special requirements for your projects should you not find something that suits you.
Big4WallStreet has published 48 additional documents on Flevy.
|Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. To receive this free download, enter your email address below and click the "Email Me" button.|
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success."
– Bill Branson, Founder at Strategic Business Architects
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."
– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.
Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.
In today's environment where there are so many challenges and there is the need to make the right decisions in a short time, with so much scattered information, we are fortunate to have Flevy. Flevy investigates, selects, and puts at our disposal the best of the best to help us be successful in our work."
– Omar Hernán Montes Parra, CEO at Quantum SFE
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.
The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."
– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
"One of the great discoveries that I have made for my business is the Flevy library of training materials.
As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy usually has just what I need to make my point.
It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients."
– Ed Kemmerling, Senior Lean Transformation Expert at PMG
Do You Want to Get Lean?We've assembled 40 Lean Six Sigma guides: Lean Management, Six Sigma, Strategy Planning, Process, and Change Management.
Waste Too Much Time on PowerPoint?Get our FREE PowerPoint Plugin (Flevy Tools) for creating common business diagrams, from Gantt Charts to Harvey Balls.
Do You Run a Consulting Firm?Learn how to level the playing field with global consulting firms, like McKinsey, BCG, Bain, E&Y, and Accenture.
Need Help with PowerPoint or Excel?Have our highly trained staff create the exact documents you need. We offer PowerPoint and Excel document creation services.
FlevyPro (Subscription Service)
Flevy Executive Learning (FEL)
LinkedIn Influencer Marketing
Contact / FAQ / Terms / Privacy
flevyblog (Business Magazine)
Strategy, Marketing, & Sales
Organization, Change, & HR
Health & Safety
Governance, Risk, & Compliance
Customer-centric Design (CCD)
Human Resource Management
Blue Ocean Strategy
COVID-19 Trend Data
Consulting Training Guides
Organizational Culture (OC)
Organizational Design (OD)
Organizational Leadership (OL)
Financial Advising Services (FAS)
Flevy Tools (PowerPoint Plugin)
Lean Six Sigma Training Guides
Post-merger Integration (PMI)
Supply Chain Management (SCM)
Small Business Owner
© 2012-2023 Copyright. Flevy LLC. All Rights Reserved.