Wellness Centre 5-Year 3 Statement Financial Projection Model (Excel XLSX)

A Wellness Centre 5-Year 3 Statement Financial Projection Model is essential for health and wellness businesses. It forecasts income, expenses, and cash flows, aiding strategic planning, pricing decisions, and resource allocation. It supports decision-making related to service offerings, staff hiring, and marketing strategies. Accurate projections empower wellness centers to adapt to market dynamics, secure funding, and ensure sustained profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with the evolving health and wellness industry. This model is indispensable for both established wellness centers and startups, ensuring their financial viability and competitiveness while managing costs effectively.

PURPOSE OF MODEL
A wellness centre is a facility or establishment that focuses on promoting and enhancing the overall well-being of individuals and typically offer a wide range of Fitness and Exercise programs (e.g. yoga, Pilates, HIIT) and services (e.g. nutrition, physiotherapy, counselling) aimed at improving physical, mental, emotional and spiritual health.

The purpose of this highly versatile and user-friendly Excel model is to prepare a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a for a startup or existing wellness centre generating revenue through the provision of fitness and exercise programs, wellness services and product sales.

The financial model includes 10 fitness and exercise categories and 10 service categories each with their own mix of direct expense requirements. The model also allows the user to model revenue and cost of sales from sale of products. The model allows includes indirect staff costs, marketing costs, other administrative costs, fixed assets, inventories, payables, borrowings, sales tax impacts, corporate tax and dividend distributions.

The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) 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;
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;
Revenue fitness, exercise and service category and volume of services offered over time.
Revenue and gross profit by product category presented in table and chart formats.
Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
•  Discounted cash flow valuation using the projected cash flow output.
•  Breakeven analysis

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 month;
•  Naming for fitness and exercise categories, service categories, product categories, (in)direct staff, direct materials, direct expenses, marketing costs, staff costs, admin costs, fixed assets and borrowings;
•  Sales tax applicability for services, products, direct costs, and other expenses and fixed assets.

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

Projection Inputs:
•  Fitness and exercise program revenue including programs per week, capacity utilisation, program rates and direct costs.
•  Services revenue including service schedule per week, capacity utilisation, service rates and direct costs.
•  Product revenue including purchase quantity, cost price and mark-up;
•  Direct expense inputs including direct expense per fitness, exercise and service category;
•  Direct and non-direct staff cost inputs including staff numbers, average salary per full time position, average employer's social security percentage of salary, average annual bonus and bonus payment months.
•  Other costs inputs including marketing costs and admin 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_Dashboard' 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
•  The model contains a flexible timeline that allows for a mix of actual and forecast period across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model up to 10 separate fitness and exercise programs and service categories and 10 product categories with their own unique direct cost setup;
•  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 reduce risk of formula inconsistencies;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Fitness and exercise programs – 10 categories
Services – 10 categories;
Products – 10 categories;
Staff costs – 5 direct categories and 5 non-direct categories;
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities
•  Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate 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.