Moving Services Business Financial Model (10+ Year DCF Valuation) (Excel XLSX)

The moving services business financial model is a comprehensive tool designed to analyze the financial aspects of a moving company. It encompasses key components such as revenue streams, operating expenses, pricing, moves forecast, and financial projections. This model provides insights into the financial performance of the moving services business, enabling informed decision-making, budgeting, pricing optimization, and growth planning.

Key Components:
1. Revenue Streams: The model assesses revenue sources from services like residential moves, commercial relocations, packing services, storage solutions, and additional offerings provided by the moving company.
2. Operating Expenses: It includes costs for labor, transportation, equipment maintenance, insurance, marketing, and other operational expenditures necessary to run the moving services business.
3. Pricing: The model considers separate pricing for each revenue stream based on various drivers.
4. Moves Forecast: It allows the user to set the volume of moves based on various factors.
Key Benefits:
1. Informed Decision Making: The moving services business financial model empowers business owners to make data-driven decisions regarding pricing, service offerings, marketing strategies, and resource allocation.
2. Budgeting and Cost Control: By providing a comprehensive overview of expenses and potential revenues, the model assists in budgeting and cost control measures, ensuring financial stability.
3. Pricing Optimization: The financial model aids in optimizing pricing strategies by considering both costs and competitive market rates, ensuring profitability and customer satisfaction.
4. Growth Planning: Financial projections generated by the model support growth planning, allowing business owners to assess the potential outcomes of expanding services, adding staff, or opening new locations.
In summary, the moving services business financial model offers valuable insights into the financial performance of a moving company. It supports informed decision-making, budgeting, pricing optimization, and growth planning, all of which contribute to the success and profitability of the moving services business.

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MODEL GUIDELINES

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 can 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 such as moves, storage and pricing per move and special services, costs splits between direct costs (direct labor costs, cost of service) and indirect costs (such as admin staff, outsourced staff, insurance, 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 moves and price per move offered 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.