Online Marketplace Financial Projection 3 Statement Model (Excel XLSX)

An Online Marketplace Business Financial Projection 3 Statement Model is essential for e-commerce ventures. It forecasts income, expenses, and cash flows, enabling strategic planning, pricing strategies, and resource allocation. It supports decision-making related to vendor fees, user acquisition costs, and expansion strategies. Accurate projections empower online marketplaces 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 marketplaces and startups, ensuring their financial viability, competitiveness, and ability to thrive in the dynamic world of online commerce while optimizing revenue and managing costs effectively.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for a new or existing online marketplace business bringing buyers and seller together through an online store.

The model allows the user to model up to 10 listing categories with fee revenue generated either from sales transactions and/or product listings. The model also projects payment processing fees, shipping costs and variable costs based on sales or listings as well as marketing costs, staff costs, other operating costs, fixed assets and borrowings.

The model incorporates a discounted cash flow valuation calculation using the projected cash flows. 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) presented on a quarterly 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
Bar charts showing listings and sales volumes by month and fee revenue by type and year.
•  Discounted cash flow valuation using the projected cash flow output.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and quarter;
•  Naming for listing categories, variable costs, staff costs, marketing costs, other expenses, fixed assets and borrowings;
•  Sales tax applicability for revenue items, variable costs, marketing costs, other expenses and fixed assets.

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

Projection Inputs:
•  Sales revenue inputs including new listings, listing cancellation rates, average sales price per listing, average sales per listing, shipping costs, fees per sales transaction, fees per listing;
•  Variable costs including calculation units and average variable cost per unit;
•  Other costs inputs including staff costs, marketing costs and fixed costs;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount (percentage of retained earnings) and frequency;
•  Fixed Assets including addition amounts and useful life;
•  Borrowings including addition amounts and interest rate;
•  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_Charts' 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 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 contains a dynamic timeline that allows for a mix of Actual and Forecast period across a 5-year period allowing projections to be rolled forward with minimal effort;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model 10 separate listing categories and fee revenue based on listings and sales transactions;
•  Costs are split into: variable and other costs for better driver-based forecasting;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Listing categories – 10 categories;
Variable costs – 5 categories;
Staff costs – 8 categories;
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities;
•  Apart from projecting revenue and costs the tool includes the possibility to model payables, fixed assets, borrowings, dividends, corporate tax and sales tax;
•  Business Name, currency, starting projection period 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;
•  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.