Description

Online Bicycle Store Financial Model

If you have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the country. We have drafted an Online Bicycle Financial Model that will ensure that your new Online Bicycle Shop business is well planned out, including all financials, explains the business opportunity, and is legally compliant with all laws.

Introduction to our Online Bicycle Store Financial Model Template

Online Bicycle Store Financial Model presents the business case of a brand-new start-up with an upfront investment in sporting location and necessary equipment and sports gear. The model contains the three financial statements including the cash flows and calculates the relevant metrics (Sensitivity Analysis, 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 will include automated inbound and outbound marketing costs sheet which estimates the number of customers captured.

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

Online Bicycle Store Financial Model Input Tab

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

Sensitivity and Breakeven Analysis

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

The break-even analysis tab is useful to determine the number of units and revenue required to achieve break even.

Calculations: 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 is resulting. Based on the assets financed and the gearing of the financing, the interest and depreciation calculation is done. With the help of working capital assumptions, we have measured the impact on business cycles. The PnL Monthly tab has aggregation with relevant statements: profit and loss, balance sheet, and cash flow every month.

Moving to the Project Valuation tab, a company valuation is performed by using the free cash flows with discount rates to the firm and then a series of investment metrics are presented (IRR, NPV, ROE).

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

Key Inputs of Online Bicycle Store Financial Model

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

Key Features of Online Bicycle Store 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. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes. This also helps in making future projections.

Startup Summary for Online Bicycle Store Financial Model

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 Online Bicycle Store Financial Model provides the monthly and yearly income statement structure and a framework for creating a full corporate forecasting model tailored to your particular business.

This integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement. This is to see how it impacts all other parts of the statements accurately and consistently. This feature helps in calculating future projections.

The monthly Income Statement sheet of the Online Bicycle Store Financial Model is perfect for those who require regular reporting and details. It has gross earnings, net earnings linked with a revenue analysis sheet to ensure accurate reporting. Additionally, Income Statement contains all revenue streamlines. Oak Business Consultants understands every 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, net profit, earnings, cost of services, and profit after tax.

Balance Sheet for Online Bicycle Store Financial Model

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 for Online Bicycle Store Financial Model

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 act as a bridge between the income statement and balance sheet. It depicts how money moves in and out of the business.

Three main sections of Cash flow Statement:

1. Operating Activities: We have included all cash in and out related to the operations of the business
2. Investing Activities: Any cash from the disposal of an asset and acquisition and investments is included in this section that is linked to the inputs and fixed asset tab.
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 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, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow, 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?

A coup this we have included a Break-even analysis to our Financial Model which will help the user to determine sales. 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 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 for Online Bicycle Store Business

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.

Marketing Budget Sheet

The template contains a marketing budget sheet which evaluates all possible marketing channels. The Sheet tell you how many expected customers you will have with different channels. For example, spending $2000 on Facebook marketing will bring 1,000 active customers. It is advisable to enter the conversion rates from the internet for more accuracy.

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 in the above picture). These comments are based on the financial data present in the income statement, balance sheet, and Cash flow. The Diagnostic Sheet is very helpful 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 Online Bicycle Store Financial Model

Encapsulate Company Performance- The Online Bicycle Store Financial Model 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. It will enable the user to conclude a company’s profitability without going through lengthy accounts statements.

Bottom Line – A Online Bicycle Store financial model can be the key to your company’s better and informed future. Succeeding to plan your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, control 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 actual worth considering lending funds to your company.

Based on Financial Principles – We did in-depth research on a Online Bicycle Store business model to create this financial model with logically correct financial and economic principles and assumptions.

Properly Integrated – The model assumptions and calculation have proper integration. 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