Description

Dropshipping Excel Financial Model Projection Template

This Dropshipping Excel Financial Model is the best option for your dropshipping business financial planning. This Financial Model made by Oak Business Consultant provides a dynamic yet comprehensive framework to prepare reliable financial plans and business financial analyses within the E-commerce Industry. It informs the user about short and long-term financial variable performance and gives a useful starting point for developing a financial strategy.

This financial model gives you a complete financial plan for your dropshipping business, consisting of 5-year financial statements(income statement, Cash Flow Statement, and Balance Sheet), Break-Even Analysis, Diagnostic Sheet Staup Summary Plan, etc. Further, It calculates the DCF( Discounted Cash Flow) factor and Free Cash Flow to determine the company’s valuation. Revenues are derived by applying the respective pricing assumptions (up to 7 different product quality levels). The Financial Model also calculates the main relevant financial performance ratios and KPIs banks and investors require to estimate business profitability and liquidity.

This Financial model helps you make essential financial decisions, such as when to open up a new business and manage its expenses and asset accounts. However, developing a financial plan for the business is vital to future growth and success.

Similar Business Model

SaleHoo, AliExpress, and Shopify

Key Inputs

1. Average Monthly Market Leads.
2. The growth rate of  Visitors- visitor traffic  monthly growth rate 
3. Rate of Conversion- At what percentage of Leads converted into customers.
4. Rate of Refund – at what percentage of your sold products are returned by customers.
5. Percentage of Converted Repeat Customers – At what percentage of new total customers come to your company repeatedly.
6. Average Payable and Receivable days your business is following.
7. Cost of Good Sold Percentage of each Product.
8. Inventory Rate
9. Average Products purchased by the customers
10. The average amount spent by customers in each category.
11. Tax Rate
12. Cost of goods sold, how many percentages of revenue spends as COGS
13. Gateway Transaction Variable and Fixed Charges.

Key Features of Dropshipping Excel Financial Model Template Projection Template

Input Sheet

This financial model template contains inputs that, when changed, impact the calculations, and, therefore, the changes are applied to all relevant sheets. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes.

Startup Summary

This sheet provides you and your investors with an analysis of a new start-up’s investment requirements. It helps the business present a snapshot of the company to prospective investors and raise capital.

Monthly & Yearly Income Statement

The monthly Income Statement sheet of the Dropshipping Excel Financial Model is perfect for those who require regular reporting and details. Additionally, the income statement contains all revenue streamlines with gross earnings and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands every Dropshipping business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits or otherwise.

Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses important for a Financial Plan. The Yearly Income Statement also contains several graphs, assumptions, ratios, margins, net profit, earnings, cost of services, and profit after tax.

Balance Sheet

This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. This also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore, this specific financial model gives you the perfect space to analyze your key financial balance accounts.

CashFlow

The Cash Flow statement is one of the most important financial statements because each business’s main goal is to generate cash flow. This shows how much business has consolidated money and how much is not enough to attract additional financing. This sheet also contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow, and beginning and end cash balances. This is a perfect template for your company’s cash flow management.

Break-Even Analysis

The break-even analysis will help you know at a glance the profits generated at the various sales levels. The Break-Even Analysis refers to the point where your total sales contribution is fixed cost at zero profit and loss. This Technique is primarily based on marginal costing, which behaves differently at various levels of output activity.

Project Evaluation

Since the table calculates Return on Investment, Investor’s Future Equity Share, and Cash Burn Rate Analysis, analyzing the company’s performance becomes easy to capture potential investors.

Diagnostic Sheet

This Diagnostic sheet automatically calculates the data, such as the Profitability ratio, Net operating expense ratio to expense, etc., that will provide financial commentary about the company’s financials.

Dashboard

Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you with a graphical management tool that enables you to track all your relevant financial KPIs, improve cash flow management, and allow you to track expenses, sales, and net revenue in detail to meet and outperform the financial objectives of your business.

Benefits of Dropshipping Business Excel Financial Model Template

1. Visualize Goals Outcome: Visualizing your goals before they happen is a powerful technique that helps the user gain momentum toward achieving them. A financial model will help you identify clear actions to put yourself in the best financial position when an expert consultant spells out what things need to be done! It is much easier to take action with confidence.
2. Uniform Methodology: The major benefit of a dropshipping financial model is that it promotes a uniform methodology. So the user can compare changes in a company’s operations over time.
3. Achieving Best Returns: The user can maximize return on investments through meticulous financial planning. So a proper analysis of the liquidity positions, liabilities, and opportunities against the financial goals can help get good returns.
4. Mitigate Risk: The financial model can mitigate the company’s financial risk. It will allow users to determine what-if or simulation analysis. The user can predict the outcome of marketing campaigns, the cost of entering a new market, and the effect of price changes on the industry.
5. Provide Financial Assistance: This Financial Model Excel template enables you to begin your startup planning with the maximum assistance and least confusion. No composing equations and formulas, no designing and programming, and no need to hire a costly external consultant required.
6. Well-Formatted & Presented: All core 3-financial statements (income statement, cash flow, and Balance Sheet) are accurately presented and connected with the input and formatted in a well-structured way. Also, it follows a particular color theme, which is consistent in all sheets.

This Product Includes: 1 Excel File