Startup Financial Projection 3 Statement Model with Scenario Analysis (Excel XLSX)

A Generic Startup Financial Projection 3 Statement Excel Model with Scenario Analysis is invaluable for new businesses. It forecasts income, expenses, and cash flows, aiding strategic planning, funding decisions, and resource allocation. The addition of scenario analysis allows for a comprehensive view of potential outcomes, enhancing risk management and decision-making under various circumstances. Accurate projections empower startups to secure funding, adapt to changing market conditions, and ensure financial sustainability. This model attracts investors, supports growth initiatives, and aligns financial strategies with business goals, making it indispensable for startups navigating uncertainties and aiming for long-term success.

PURPOSE OF MODEL
User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet and Cash flow Statement) 5-year financial projection for a generic start-up business. The model allows financial projections across 3 scenarios and follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations

KEY OUTPUTS
The model is generic and not industry-specific. The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for all 3 scenarios, presented on a monthly basis across up to 5 years and summarised on an annual basis.
•  Dashboard with
Summarised projected Income Statement and Balance Sheet for each of the scenarios;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item for each of the scenarios;
List of key metrics including Average revenue growth, Average profit margins, Average return on assets and equity and Average Debt to Equity ratio and breakeven analysis for each of the 3 scenarios;
Bar charts summarising income statement and Balance Sheet projections for each of the 3 scenarios;
Variance analysis across the 3 scenarios with bar charts comparing: revenue, net profit, total assets and net assets for the 3 scenarios.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. All 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 month;
•  Naming of scenarios
•  Naming for revenue streams, variable costs, staff costs, other expenses and fixed assets;
•  Sales tax applicability for revenue streams, variable costs, other expenses and fixed assets.

Projection Inputs for each of the 3 scenarios:
•  Revenue inputs including sales volume, sales prices and average credit terms offered;
•  Variable cost inputs including variable cost per unit and average credit terms received;
•  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 including initial and subsequent equity investments

MODEL STRUCTURE
The model comprises of 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', 'i_Assump_S1', 'i_Assump_S2' and , 'i_Assump_S3'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats' and ‘o_Dashboard'.

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 allows for a 5-year projection on a monthly basis and summarised on an annual basis;
•  The model is not password protected and can be modified as required following download;
•  The model is reviewed using specialised model audit software to help ensure formula consistency and significantly reduce risk of errors;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Scenarios – 3 scenarios
Revenue streams – 10 categories;
Variable costs – 2 per revenue category;
Staff costs – 5 categories;
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed Assets – 3 categories;
Borrowings – 1 facility;
•  Costs are split into: variable, fixed, staff and marking costs for better driver-based forecasting;
•  Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends, sales tax and corporate tax;
•  Business Name, currency, starting projection period are fully customisable
•  Revenue, Cost and Fixed Asset descriptions are fully customisable;
•  The model includes the possibility to start mid-way through the first projection year;
•  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.