SAAS Products

This is a financial model for SaaS startups of any size/scale that need to account for a wide range of flexibility in the attributes that describe an average customer cohort. 5 year monthly and annual P&L / cash flow summaries are included as well as a contribution and distribution summary / DCF analysis with IRR/equity multiple.

This template is able to be used for customers that have varying contract lengths or month-to-month terms. Based on a wide range of other configurations, the expected customers added/lost and total count will display as well as the resulting revenue. The model is flexible enough to handle any customer count value/growth and contract value. Don't be afraid of decimals either if you are starting up with a really low customer count. The logic will handle this just fine. The following assumptions can be configured for each of the three customer pools: Start Month Average Contract Length (months) Starting Organic Customer Count % Increase in Monthly Organic Customers Added % Improvement in Monthly Growth Ad Spend per Month Cost per Acquisition % Improvement in CPA Acquired Customers via Ad Spend per Month Average Contract Value % Improvement in Contract Value Contract Value per Month % Increase in Contract Value at Renewal - This assumption is how it is possible for negative churn $ to happen if it is applicable to your revenue structure. Retention Rate at Contract Term % Improvement in Retention Customer Service Reps and Sales Reps will scale based on ratios defined against the new customers being added. Where applicable, the assumptions are configurable across each of the five years. The main use case for this template is low volume, high value customers but it is flexible enough to handle any general SaaS business logic. Lots of visuals were included so the final results can be easily understood. There is a yearly executive summary tab that displays high level total revenue, S&M, G&A, and R&D costs as well as COGS down to Net Income. There is the optionality to have debt as a funding source as well as investors (and their share of profits). If an exit month is chosen, the trailing 12-month revenue is multiplied by a defined multiple that will determine terminal value and any outstanding debt is repaid on that month. A DCF analysis is shown for both the owner equity and investor equity if applicable. All the generally accepted metrics for SaaS businesses have been included and visualized, such as average CaC, average months to pay back CaC, average life of customer, net churn (negative churn if the assumptions result in existing customers paying more than lost customer revenue each month), average LTV, and average LTV to CaC ratio. If the total value of each contract is collected from the customer at the beginning of the term, there is an option to mark that specific logic as 'yes'. If this is selected, the cash flow will produce the correct monthly cash flow accordingly. If 'no' is selected on this box, then the cash will be evenly spread through the length of the contract term per customer. The box for this is at the bottom of the 'Control' tab.