Latest update: Integrated a three statement model (monthly and annual Income Statement, Balance Sheet, Cash Flow Statement) and cap table.
This dynamic and simple to use financial model will benefit individuals interested in gauging the performance of a potential auto repair / tire and brakes shop by measuring various assumptions. Users can tweak various assertions, i.e., run different scenarios by inputting different assumptions, to see what projected cash flow will look like.
The author of this template has personal experience, in regards to finances, in the auto repair and tire shop industry. While working at a 10+ chain, his main employment objectives were providing financial analyses, tracking performance metrics, and providing financial statement maintenance.
That said, this model includes industry-based labels which are useful for individuals who are familiar with the financial side of the business. The model is also easy to use for individuals who are newer to the industry; the template includes color coded cells which inform users which cells are editable (i.e., users only input assumptions in editable cells, not cells which contain formulas). In addition, an index is included to explain what each tab is, instructions included.
The model contains separate tabs for cost and revenue assumptions; logic within the tabs allow users to choose which month each type of recurring cost and revenue items will begin. A place for one-time costs is also included. There is a separate tab in which to enter startup costs.
Dynamic logic allows users to demonstrate ramping scenarios. In ramping scenarios, volume and new revenue streams are slowly added to the business, such as by increasing the tire brands being carried and/or services that can be provided. This model accounts for the various rates for service types and average cost per tire type.
This model ultimately allows users to easily track monthly and annual business performance. Gross profits of each service type, tire type, and each part/ accessory are computed on a monthly basis. A ‘Business Overview’ tab, ‘Return’ tab, and ‘DCF Valuation’ tab is included so that users can easily analyze their auto repair business, spotting important things in one spot.
Monthly and annual summaries logically flow from total costs to total sales, integrating up to five separate loans/ financing options— which can start and end at any month within the five-year forecast.
Charts and visuals are included, which show: annual sales of each tire type/ service type, total annual expenses/ revenues/ EBITDA, a breakdown of major expenses and revenues over the 5-year forecast, running cash position (startup costs ? final month of revenues), and a return summary with ROI, IRR, and annualized returns in percentage and dollars.
Note: I am not a financial advisor and this is not financial advice. Use this template at your own risk.