Description

Online Marketplace Financial Model

The number of marketplaces has exploded in the past ten 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 crucial step every founder must go through. While early-stage startups with an inherently high level of risk are likely not to have accurate financial projections, building a rock-solid economic model will give you a clear advantage in understanding your business. In addition, our expert knowledge of building this Online Marketplace Financial Model will give you the peace of mind that all critical decisions are based on accurate, up-to-date information.

Introduction to Online Marketplace Financial Model

The online 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 and an investment made by the investors—the marketing sheet (including 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 check 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 daily and their currency value to break even.

Calculations: Here, all analyses were performed. The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign, deducting the business variable and fixed costs, the resulting operating profit. Second, the interest and depreciation will be calculated based on the assets financed and the gearing of the financing. Third, 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.

Everything aggregates in the PnL Monthly tab 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 Online 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 Online Marketplace Financial Model

Input Sheet

This financial model template contains inputs that, when changed, impact the calculations. 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 startup summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash has been 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 the business has enough funds to support operations.

 Monthly & Yearly Income Statement

The Online 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 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 words.

The Online 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 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.

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

Online Marketplace Financial ModelThis 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 critical financial balance accounts.

Cash Flow Statement

Online Marketplace 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 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: This section consists of money from the disposal or acquisition of a will.
3. Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information. The account 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 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

Online Marketplace Financial ModelA 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 to 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 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. In addition, the sheet will include favorable comments (As mentioned above in the picture). Therefore, the Diagnostic Sheet is beneficial to give the company’s insights in just one line.

Benefits of Online Marketplace Financial Model Template

Encapsulate Company Performance- The Online 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 Online 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 determine the company’s worth considering lending funds to your company.

Integration – The model assumptions and calculations are correctly 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.

Case Study

The Online Marketplace Financial Model was prepared for one of our clients, who is an entrepreneur who has invested in multiple businesses. Now willing to invest in an e-commerce platform through foreign investment. This platform is a niche market, as he only focused on a specific product. This case study shows how we served and fulfilled our client’s requirements. For more information, click here Online Marketplace Financial Model.

Testimonial

Our goal is to offer services that meet the requirements and expectations of our customers, which is vital for establishing a favorable reputation and gaining devoted patrons. Consequently, collecting customer feedback to assess product effectiveness and enhance it accordingly is highly beneficial. The Online Marketplace Financial Model testimonial can be seen below.

This Product Includes: 1 Excel File