Pawn Shop Financial Simulation: 5 Year Financial Model (Excel XLSX)

Strategizing the types of items you want to target in your pawn shop is the first step to planning. This template will help you determine the resulting profitability of all kinds of selling strategies.

Enjoy a financial model built with specific logic in mind for operating a pawn shop. This means two main ways to earn revenue.

The first is buying things for a low price and selling them for a higher price. The second is giving out loans per collateral.

Final output summaries include a 5-year monthly and annual P&L detail, an annual Executive Summary on key financial line items, DCF Analysis, and final IRR of the project, including a terminal value (which can be based on an EBITDA multiple or % of annual sales).

There are also some visualizations to make the results of the simulation more digestible.

For revenue, the user can define inputs for up to four categories of products (low/medium/high/miscellaneous) and the resulting average sale price for each slot within a category, the start month of the slot, and the average cost of goods sold per slot (driven by expected profit margin).

Each slot also has low/mid/high value items. The user can also define expected sales per month per slot over time based on an annual growth rate per item category. Interest revenue is derived based on average pawned items/their value/average interest rate.

Operating expenses are based on a robust schedule where the user can define each fixed cost item, the amount each year, and the start month.

This financial planning spreadsheet is to be used to plan out expected initial investment requirements needed based on startup costs and operational assumptions. This tool is good to see what kind of sales volumes and margins are needed to make a given amount of profit / break even. There is also a configuration for borrowing some of the initial investment through traditional loans.