Membership-Based Business Financial Projection 3 Statement Analysis (Excel XLSX)

A financial model for a membership-based business is vital as it provides a structured forecast of revenue, expenses, and profitability. It enables informed decision-making by assessing different scenarios, such as membership growth, pricing changes, or marketing strategies. The model helps allocate resources effectively, secure funding, and set realistic goals. It aids in understanding cash flow patterns, optimizing budgeting, and identifying potential financial bottlenecks. Moreover, it enhances communication with stakeholders and guides strategic planning, ensuring the business's sustainable retention and growth in members, as well as success in a dynamic market environment.

PURPOSE OF MODEL
Flexible, User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for an existing or new membership club (e.g. gyms / fitness centres, sports clubs, professional associations, social clubs, online communities, etc). The model includes separate forecasts for up to 3 clubs and across 3 scenarios (e.g. base case, pessimistic case and optimistic case). The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) on a monthly basis across 3 years and summarised on an annual basis that can be easily updated to different scenarios using drop-down scenario selector.
•  Separate income statement (extract) for each club (maximum 3)
•  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 metrics including Average membership numbers, 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
Net Profit margin and membership numbers by club in table and bar-chart format

KEY INPUTS
Inputs are split into inputs by club and total business basis. Inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Club inputs include:
•  Membership types (up to 5)
•  New members per annum for each membership type
•  Renewal rates
•  Monthly membership and joining fees per membership type
•  Other Costs including staff costs, marketing costs and fixed costs;
•  Fixed Assets including addition amounts and useful life

Total business inputs
•  Setup inputs including: Business Name; currency; first projection year; club names and scenario names.
•  Taxation Inputs including rate and payment periods;
•  Dividend inputs including amount (percentage of retained earnings) and frequency;
•  Borrowings including addition amounts and interest rate
•  Share Capital additions

MODEL STRUCTURE
The model contains, 11 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' and ‘i_Actuals' and 'i_Assumptions'). The calculation tab use the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats' and ‘o_Results'

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 best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model is not password protected and can be modified as required following download;
•  The model allows for a 3-year projection on a monthly basis and summarised on an annual basis;
•  The model allows the user to model up to 3 distinct clubs across 3 scenarios;
•  The model allows the user to model up to 5 different membership types which vary by duration, fees and payment type;
•  Revenues are split into membership fees, joining fees and other income;
•  Costs are split into: staff costs and other costs
•  Apart from projecting revenue and costs the tool includes the possibility to model accruals and prepayments, fixed assets, borrowings, dividends and corporate tax;
•  Business Name, currency, first projection year, club names, membership types and scenarios are fully customisable;
•  Revenue, Cost and Fixed Asset descriptions are fully customisable;
•  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.