Description

Homeware Marketplace Financial Model

The number of marketplaces has exploded in the past 10 years and is expected to continue doing so. Whether you are about to launch a new marketplace or fundraising for your existing business, building a solid marketplace financial model is a key step every founder must go through. While early-stage startups with a high inherent risk level are likely not to have fully accurate financial projections, building a rock-solid financial model will give you a clear advantage in understanding your business. Our expert knowledge of building this Homeware Marketplace Financial Model will give you the peace of mind that all critical decisions are based on an accurate date information.

Introduction to Homeware Marketplace Financial Model

The Homeware Marketplace Financial Model template contains the three financial statements, including the cash flows, and calculates the relevant metrics (Break-even Analysis, Diagnostic Tools, Project evaluation, and Charts). The financing options for the project include a standard long-term loan as well as an investment made by the investors. The marketing sheet (include automated inbound and outbound marketing costs sheet).

So a quick overview of the Financial Model, in the contents tab, you can see the structure of the model by clicking on any of the headlines to be redirected to the relevant worksheet.

How It Works

On the Input tab, you can feed the financial information for the model, such as sales price, cost, expenses, etc. Inputs with Peach fill and grey letters, call up (direct links from other cells) filled in grey with black letters, while calculations with white fill and black characters.

In the sensitivity analysis tab, you can see a high-level report with the main business scenarios. The tab shows the company’s profit in case of any uncertainty. For example, if the cost or expenses increase by 10%.

Another useful tab is the break-even analysis, where you can see the items needed to be sold every day and their currency value to break even.

Calculations: Here, all calculations are performed. The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign, and deducting the business variable and fixed costs, the operating profit resulting. The interest and depreciation will be calculated based on the assets financed and the gearing of the financing. With the help of working capital assumptions, we have measured the impact on business cycles. In the last, depending on the level of the investment, the relevant debt financing is calculated.

In the PnL Monthly tab: everything aggregates here into the relevant statements: profit and loss, balance sheet, and cash flow every month.

The Dashboard tab: Various graphs present the revenues, cash analysis, break-even analysis, sensitivity, assets vs. liabilities, startup summary, etc.

Key Inputs of Homeware Marketplace Financial Model

1. The growth rate, Price and Expense.
2.  Revenue Assumptions
3. Product Listing Assumptions
4. Commission Assumptions
5. Marketing Budget Sheet (which measures how many customers we get from marketing).
6. Average Payable and Receivable days your business is following.
7. Cost of Goods.
8. Fixed Asset and Capital Expenditure.
9. Tax Rate
10. Investment table
11. Loan table

Key Features of Homeware Marketplace Financial Model

Input Sheet

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

Startup Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash injected by the company so far, and based on the number of months, the amount of investment required is calculated.

A Startup Summary helps you take a realistic view of your idea and double-check whether it’s the business has enough funds to support operations.

 Monthly & Yearly Income Statement

The Homeware Marketplace Financial Model Template provides the monthly and yearly income statement structure and a framework for creating a full corporate forecasting model tailored to your particular business.

An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement to see how it accurately impacts all other parts of the statement.

The Homeware Marketplace Financial Model Template’s monthly Income Statement sheet is perfect for those requiring regular reporting and details. Additionally, 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 School 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. The Yearly Income Statement also contains several graphs, assumptions, ratios, margins, 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.

Cash Flow

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements bridge the income statement and balance sheet by how money has moved in and out of business.

Three main sections of the Cash flow Statement:

1. Operating Activities: We have included all cash in and out related to the operations of the business
2. Investing Activities: Cash from the disposal or acquisition of an will include in this section.
3. Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information thee. The tab is linked to the Financing Activities of Cash Flow Statement.

The Cashflow Statement in our Model contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs:: Payableeivable 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

A break-even analysis can help you measure how different scenarios might play out financially. For example, if you increase the marketing budget or add another employee to the payroll, how many extra sales will be needed to recover that additional expense?

We have included a Break-even analysis in our Financial Model, which will help the user determine sales. The break-even analysis will help you know the profits generated at the various sales levels at a glance. The Break-Even Analysis is the point where your total sales contribution refers to 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 is a new inclusion to our financial model. This automatically explains the condition of the business. For example, if your company’s profit is 30% of the total sales. The sheet will include favorable comments (As mentioned above in the picture). The Diagnostic Sheet is beneficial to give the company’s insights in just one line.

 Dashboard

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

Benefits of Homeware Marketplace Financial Model  Template

Encapsulate Company Performance- The Homeware Marketplace Financial Model Template analysis simplifies a company’s financial statements. It allows the user to express critical profitability and financial position information in just a few numbers. For example, the company’s net profit margin encapsulates the net effect of a company’s revenues and all expenses. Thus, it will enable the user to conclude a company’s profitability without going through lengthy account statements.

Bottom Line – A Homeware Marketplace Financial Model Template can be the key to your company’s better and informed future. Succeeding in planning your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, controlling costs, and determining company valuation.

Accommodates Investors – This model provides valuation and performance analysis charts. It enables the investors and banks to clearly determine the company’s worth considering lending funds to your company.

Integration – The model assumptions and calculations are properly integrated. So the change in the main sheet will automatically lead to the change in all related sheets easily.

Visualization Tool – This Financial model also prepares a clear communication of the quantitative outcomes. As obtained by calculations via various graphs and charts. Therefore, the user does not need to pay much attention to the financial model’s inner workings.

This Product Includes: 1 Excel File