Subscription-based Financial Models (Document Bundle)

I love building models for recurring revenues services. SaaS, PaaS, membership-based businesses, or general subscription models are all in my wheelhouse. These financial forecasting tools require heavy cohort modeling as well as multi-tier logic structures for acquiring customers, conversions, retention, and potentially capacity constraints (private golf course that runs on memberships or a fitness center / car wash with membership recurring revenues).

You can even take it a step further and combine subscription services with products or platforms such as a marketplace. One of my favorites is a property management business as it combines modeling techniques for real estate and B2B SaaS.

The B2C SaaS space can be a bit heavy in infrastructure costs if they use servers / their own hardware. Otherwise, most of their costs are going to come from renting hosting services. The other end of the SaaS spectrum has a focus on account executives / salespeople / engineers / customer service (B2B or enterprise SaaS). Each requires a different modeling approach with focuses on the most important drivers respectively.

There are all sorts of other types of recurring revenue businesses that are completely outside the scope of tech. Private golf courses, fitness centers, and car washes all have membership revenue drivers and don't have anything to do with selling software. It is still important to test various pricing scenarios against capacity maximums as well as best/worst case scenarios to see if the profitability makes sense relative to the investment it takes to build such structures.

A private golf course, car wash, or gym is going to require heavy upfront costs and the decisions that go into how much to spend may relate to what you think customers will pay you over time and the expenses it takes to run / maintain the course. If the cash flow doesn't make sense, it might not be worth the initial investment.

Some of the most important metrics in every single one of these models are retention, customer acquisition cost, and customer lifetime value. Those are primary calculations provided in most of the templates you will see in this bundle and displayed via visualizations.

In this bundle, you will see specific calculators / tools that let the manager test feasibilities on the ideal customer contract / pricing / CaC, LTV, retention as well as full-boat 5-year financial models that cover all aspects of starting, running, and potentially exiting subscription businesses.