Startup Financial Model (Excel XLSX)

BENEFITS OF DOCUMENT

1. A professional financial model to analyze a startup business
2. Incorporates granular inputs
3. Produces detailed financial statements and return analysis

DESCRIPTION

This product (Startup Financial Model) is an Excel template (XLSX) with a supplemental PDF document, which you can download immediately upon purchase.

This is a comprehensive and professional yet user-friendly financial model for a startup business with debt leverage. I have developed this model with those beginning entrepreneurs in mind who are not familiar with sophisticated financial concepts but need an industry-grade investment banking quality financial model for their startups.

Any new business starts with capital investments and construction. The model has a very flexible capex section which covers up to 10 capex items (can be increased if needed) each having its own cost, acquisition date and useful life period.

Capital expenses are financed by debt and equity. You can input the LTV ratio and loan conditions. Once the business becomes stable, the risk profile of it becomes more conservative and you can refinance the existing loan with a new one under lower interest rate.

Once the construction is completed and necessary equipment is purchased, we start selling the products and generating profits. The model can handle up to 10 products (can be increased if needed) for which you can set selling prices, costs, sales start date, volumes (by years from starting date) and monthly seasonality.

In addition to cost of sales of the products, there will be general operating and overhead expenses. In the opex section you can specify which expenses are fixed and which are based on sales volumes and revenues.

Many startups are financed in part by debt. Drawing debt at right terms provides leverage and increases investor returns several times. Furthermore, once the business is stabilized it becomes possible to refinance the existing debt, at lower rate and often higher amount, providing a cash-out to shareholders.

The last stage of analysis is calculating exit proceed (or terminal value). This is needed for proper valuation, even if the shareholders are not planning to exit at that point in time.

Teamed up together, these calculations and schedules are used to build the financial statements (income statement, cash flow statement and balance sheet) and return analysis for your startup project.

Source: Best Practices in Integrated Financial Model, Entrepreneurship Excel: Startup Financial Model Excel (XLSX) Spreadsheet, Andrei Okhlopkov