eCommerce 5-Year Financial Model: Simple Scaling Logic
Latest Updates: monthly and annual three statement model added as well as a capitalization table.
Video Tutorial:
eCommerce involves selling things online, but generally what this model allows the user to do is plan out their expected startup costs, revenue drivers, and opex assumptions in order to produce an output of a 5-year pro forma (monthly and annual) as well as an executive summary and DCF analysis for the project and owner/investor as well as IRR / equity multiple / ROI for each.
Revenue is driven based on three primary channels. They include organic, partners (affiliates or distribution partners that take a percentage of each sale), and ads. Each has comprehensive configurations over the 5-year period in order to plan out scale and strategy. There are up to 10 product categories or unique products, depending on what is being sold.
General OpEx is defined with up to 30 slots for G&A, R&D, and S&M as well as assumptions for cost of goods sold if this is a drop-shipping business or re-selling business. This is granular on a per product type basis.
