Best Business Ideas Excel – How do you make a business plan for your startup? A business plan template, or company proforma, charts the trajectory of your business based on its current limitations to map its projected future, backed by hard data. Below we share how to use our Business Plan financial template (available in Microsoft Excel and Google Sheets) to save you hours of work as you start your next venture.
Mike Tyson once said, “everyone has a plan until they get punched in the mouth.” Business plans are especially important for companies that want to raise money or grow quickly. They help you project your future revenue and profits, given some critical assumptions. Your assumptions must be genuine; otherwise you will be punched in the mouth when you start and the market determines they were down.
Best Business Ideas Excel
Our Business Plan template allows you to project your company’s revenue across multiple subscriptions or services, as well as multiple products. The template has tons of charts and diagrams to visualize your profits, capital expenditures or CAPEX, employee salaries, company expenses, and so on.
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For subscriptions, we track the lifetime value, cost of acquisition and lifetime period of your subscribers, as well as other subscription-focused metrics. For products, our model allows you to factor in returns, market fees and other typical product-related expenses.
To learn the step-by-step process of creating your own business plan to project your future profit, you can watch the explanatory video above. Below we dive into the spreadsheet model of the business plan template and how its core functionality works so you can easily create your own business plan.
To start using this business plan template, enter your company name and start year in the information tab. Anything in blue is a number that needs to be entered. The validator check box can be checked once you are sure that the data entered is absolutely correct. The static inputs are those that do not change over time. The dynamic inputs, such as inflation rate, credit card fees and rent increase rate are those that are likely to change over time.
You can enter a default value in the first column or customize these numbers for anything you want later in the table. Everything is added up in the “Summary” tab to determine the net income for your business. This data is then visualized in the “Charts” tab to present your business plan to investors, partners and potential customers with the expected trajectory of your company to demonstrate the value of your proposed subscription services, products or other tangible services your business can provide.
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At the top of any “Subscription” tab, you can enter the name of your potential service. If you plan to sell your service in a marketplace such as an app store, you can enter the marketplace fee, commissions to salespeople, or the percentage of transactions that are credit card based. For example, if you sell on Amazon, 100% of your sales are credit card based. All the subscription tabs (“Subscription A”, “Subscription B”) are identical, but offer you the opportunity to separate subscriptions separately, so that they do not blur. These are all presented in the “Summary” tab to see how many new and active subscribers you have for each separate subscription.
When a user subscribes to your service, they subscribe for a number of quarters. This is called the lifetime quarter (LTQ) of the member. In this model, the subscriber is required to pay the subscription fee for four quarters. At the end of the four quarters, we expect to pay a lifetime total value (LTV) of $300. To change the number of new subscribers coming in during a given quarter, you can edit the quarters at the top of the row. When this is done, the number will be bold and in blue. This is so you know the number is different from the default you entered at the beginning.
With our business plan amortization model, you can input the new number of subscribers you expect each quarter, and we calculate the number of active subscribers that will remain on your platform. The number of active subscribers plateaus over time. This is because other members cancel or fire when new members join. This makes your active subscribers go flat. The amortization calculation is hidden, but you can see the numbers crunched with the drop-down menu to expand the rows. This amortization is the main difference between a product business plan and a subscriber business plan.
The business plan also lists all the expenses most associated with a subscription that you can modify and adjust. A subscriber has two types of expenses: expenses related to when they join, such as advertising and marketing spend needed to get each new subscriber. There are also expenses related to active subscribers, such as support or operating expenses. You can also add expenses to suit your needs.
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Subscription services come with upfront capital investments to develop the software. This can be added in the “Other” section. If you expect to create a new version of your software five years later, make sure you add it to the timeline based on the year and quarter where you expect to start development of the next service. At the bottom of the tab is the Annual Summary of all the financial metrics listed above which summarizes the total gross revenue and total product expenses for the total operating revenue for each year.
In the Summary tab, the business plan template provides all the numbers for all the subscription services and products the company offers. The business plan model calculates everything from profits to net income to contribution to CAPEX. It mixes subscriptions with products along with company-wide expenses that are expected to experience over time.
After entering all the data for your company in the information tab, product and subscription tabs and Summary tabs, you will get all the different visualizations we have created to summarize the performance of your company to investors and partners sum. For example, we visualized the revenue and expenses of all subscription services over ten years on a quarterly model. Further down we do the same thing for all your products. Our business plan template allows you to separate multiple products and multiple subscriptions into one simple business plan. In addition, we have also modularized the data to easily pull the information you want to generate your own maps.
In the Summary tab, you can also track contributions to CAPEX to see how over time you will pay off your original capital expenditures to bring your company to life. It’s all suggested below to learn in which year, and in which quarter, your break-even point is. This break-even point helps determine how many quarters it will take to recover all your investments and earn real profits. The IRR at the bottom then helps determine whether it will be a profitable venture or not.
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In addition to subscriptions, you can also calculate the future income of a product you want to sell as part of your business plan. At the top of the “Product” tab, enter the name of your product, market fee and sales commissions, and the number of credit card transactions (same as for the subscription fee). Unique to a product as opposed to a subscription is that products have inventory fees, resale prices and a cost to process a return. To project your future revenue, you can change the product price for any upcoming quarter forward. You can also update the number of products sold each quarter over the next ten years.
Our model adds inflation to each issue of the product or subscription. So for a single unit of a product, each subpart cost is listed. This could be an ingredient list, such as if you are selling a shampoo product. These costs are increased over time with the inflation tool for the most accurate measurement of future income and expenses. To turn off inflation, go to the information tab to increase or decrease the inflation rate you expect.
You can also enter operating costs, such as the processing, packaging and shipping costs for each individual product, as well as marketing and advertising expenses for a single unit. All of these expenses are added up, along with the expected rate of return, to generate your expected operating income. This is how much Product A will generate each quarter for the next 10 years.
Before selling the product, there are also CAPEX expenses to account for. For example, you need to create the product with a product model, build relationships with suppliers, create the brand and packaging design, etc. All of these capital expenditures are included in the CAPEX section, and everything is calculated for the year at the bottom. the Annual Summary, and each product is calculated separately in the Summary tab.
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The “Expenses” tab of the business plan sheet calculates the total salary and bonus costs of each employee you need for your business. This is added to the company’s overheads, which include transport, office and
