Financial Models

This is a SaaS or general recurring revenue/website based financial mode for any business that has customers who pay a fee on a monthly basis. There is traffic, free user pool, and conversion rates to paid tiers for up to 5 pricing tiers.

The model starts off by defining the start year and funding sources as well as displays minimum equity requirements. The meat and potatoes of this forecasting tool dive into how users are acquired. It starts off with a defined monthly traffic count that grows on a monthly basis in each of the 5 years. Then, configure inputs for each year for the following: Conversion to Free Users ,Monthly Churn Free Users, Conversion Free to Paid Users, Direct from Traffic to Paid (no free sign-up), % of Free User Pool Converted to Paid User, % of Paid Users that land in each pricing tier, price per pricing tier, churn per tier. There is a sensitivity for all the primary revenue drivers to easily set a base and then see what happens if various levers are higher or lower from the base assumptions. Operating expenses, startup costs, and capital expenditures are defined in their own schedules. OpEx works by defining a start month for each line item and a monthly value for each year per line item. There is a wide range of cost of goods sold assumptions that should fit most situations. A monthly and annual profit and loss pro forma auto-populate based on the assumptions. This rolls up into a financial overview that includes only the key financial line items as well as lots of visualizations. There is an investor distributions schedule if applicable and a DCF analysis, IRR, and equity multiple outputs.