Conquer your fears of finances by laying out a 3-year financial model for a business, with revenue, costs and cash flow.
Watch lessonThe blank finanical model that Amanda walks you through in this lesson.
One of the three financial models Will experiments with during the lesson.
One of the three financial models Will experiments with during the lesson.
One of the three financial models Will experiments with during the lesson.
We’ll be starting with the most basic building blocks of a financial model: Some assumptions about your business and the main sources of revenue.
Will and Amanda work through the first part of the template with you, using their 'Muffin shop' example.
Now that we have some revenue, it's time to work out our costs. We start with how much it costs to sell one of whatever it is you're selling. Depending on the sort of business you are running, these costs could either be a lot, or a little.
Will and Amanda work through the next part of the template with you, using their 'Muffin shop' example.
Next, we work out what are all the other costs that go into operating your business. Depending on the sort of business you are running, these costs could either be a lot, or a little.
Will and Amanda work through the next part of the template with you, using their 'Muffin shop' example.
In the final section of the model, Amanda helps you pull together the CapEx expenses, interest and depreciation as well as tax. This gets a bit complicated but will help you finish up your model.
Will and Amanda work through the final part of the template with you, using their 'Muffin shop' example.
Now that your model is complete, it's time to start playing with it. This is the real power of the models - Will takes you through three different scenarios with the muffin shops and runs through the possible financial ramifications.
As a bonus, if you're feeling super excited about business finances, Will takes you through how to calculate an EBIT Multipler. This is an important number for valuing a buisness for a sale.
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