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What's So Great About
Rocket Pro Forma?

You need a financial plan that's as awesome as your vision!

I’ve worked with thousands of entrepreneurs, and most of them are way better with customers than they are with numbers. Why?

  • Founders often have limited financial knowledge

  • Spreadsheets scare people

  • Assumptions change, so financials need constant updating

  • Investors ask you to test different assumptions

 

Even the founders who love spreadsheets can use a big head start—with a template that does the heavy lifting. Then they can focus on whatever needs tweaking.

Rocket Pro Forma is the tool I built to help myself quickly prepare financial projections for a wide range of startups. Now I'm making it available to you.

Innovation #1: Work Faster and Smarter
Does your spreadsheet look like this? Rocket Pro Forma has a wizard that walks you through entering your assumptions. You'll find yourself working quickly without getting overwhelmed. And you'll know that you won't have forgotten anything.

Rocket Pro Forma Wizard.jpg

Innovation #2: Learn As You Go
Rocket Pro Forma is full of short instructional videos that walk you through the important concepts. It's like having a skilled instructor sitting with you as you prepare your financial projections!

Innovation #3: Skip the Little Boxes
It's much quicker to enter three years of assumptions using just a few numbers (vs. needing to enter 36 different monthly values...and then needing to change those 36 monthly values every time your assumptions change). This is the biggest blocker with all the other available financial models. Save yourself time and headache by choosing Rocket Pro Forma.

You still get all the little monthly boxes, but they're created for you—you're welcome!

 

Here's a video walkthrough of how easy it is to enter (and update) three years of assumptions >

Innovation #4: Focus Your Efforts
Rocket Pro Forma gives you three business models to choose from:

  1. Transactions / Services (Virtual)

  2. Physical Items with Manufacturing / Inventory

  3. Subscriptions

Then it lets you feed them into each other. Physical items can feed subscriptions like Nest or Ring. Subscriptions can feed transactions like Amazon Prime memberships. Transactions can feed subscriptions like how some Uber riders purchase monthly Ride Pass subscriptions. You get the idea.

Innovation #5: Plan Wisely
All of your sales come from somewhere. I've seen incredibly smart people raise money based on imaginary sales that never materialize. This leads to disappointed investors. And bankruptcy. 

Instead, Rocket Pro Forma gives you the following sales funnels:

  1. Founders

  2. Organic Site Traffic

  3. Paid Ad Sales

  4. Direct Sales

  5. Channel / Affiliate Sales

  6. (And any business model feeding any others)

And So Much More!
Rocket Pro Forma gives you incredible realism—with a simple interface:

  1. Training of each new sales person along with ramp time to full quota.

  2. Subscription churn, upgrades, and downgrades.

  3. Manufacturing and inventory (Rocket Pro Forma will even optimize your production runs if you'd like).

  4. A broad range of possible expenses. Even a quick glance will give you the mental framework to navigate toward a profitable future.

  5. Multiple fundraising rounds and/or loans.

  6. All of the accounting is handled for you, so your COGS are appropriate to your business model—and kept separate from your Operating and Capital Expenses.

Will Your Business Work?

About 50% of small businesses fail, according to the Small Business Association. Three out of four venture-backed startups don’t return investors’ capital, according to the Wall Street Journal. 

And that was before Covid-19. Now it’s more important than ever to build—or pivot to—a profitable business model. 

 

Can you find a scalable way to acquire customers? Can you make money doing it?

Well-crafted pro forma financial projections help you stay in business, avoid bankruptcy, and achieve your vision. They can also help you raise money, if that’s your goal. Either way, your financial projections are key to your success.

 

I used to build financial projections for entrepreneurs. Then I realized that I was often doing more harm than good—because founders weren’t learning what they needed to know. They were simply presenting my work to investors, but they didn’t understand it. Which meant that they couldn’t explain the numbers. Worst of all, they couldn’t update their pro forma financials as things evolved.

That’s when I started developing my Rocket Pro Forma spreadsheet.

The result? Founders quickly get a handle on their own numbers. Everybody wins!

  • What kinds of businesses does this work best for?
    The Rocket Pro Forma template works best for online businesses (which is perfect for our new Covid-19 world). You can mix and match the following business models: subscriptions, transactions, inventory, and manufacturing. Rocket Pro Forma is great for SaaS (software as a service), eCommerce and online stores (with or without inventory), online marketplaces, hardware / IoT devices with or without subscriptions. Here's a video walkthrough of how to choose your business models:
  • Which kinds of business doesn't this work for?
    This wasn't designed for real estate, investment portfolios, television or movie production, or physical retail with lots of stores.
  • Is there a money back guaratee?
    Yes! There is a 30-day unconditional money back guarantee. Simply contact us and we’ll refund your money with no questions asked.
  • Can't I just make my own spreadsheet?
    Absolutely! I've made a ton of them. But I got tired of re-creating the wheel every time so I built this template that I can keep re-using. It's saved me a ton of time plus I make fewer mistakes (because spreadsheets have bugs just like software). Rocket Pro Forma also acts as a checklist so that I don't forget anything.
  • How often do you update Rocket Pro Forma?
    All the time! Here's the list of recent improvements: November 30, 2022 Subscription years 1 and 2 now grey out properly in all instances where subscription tiers don't start until years 2 or 3. Added round robin customer acquisition to Transactions revenue model in order to handle low % Tiers. Will expand to other revenue models in next update. Required financing now gracefully handles not needing any financing if cash flow never goes negative. Added 10-Second Startup Valuator to Financing tab: Our proven system to know exactly what your startup is worth right now. Rebuilt 5-Minute Sales Forcaster (formerly Growth-Based Sales Funnel) to make it easier to understand. August 31, 2022 Hiring plan now properly handles 100% salary reduction in all instances. Growth-Based Sales Funnel now defaults to 1 sale in month 1 of year 2 if the last month of the 1st year had zero, solving an issue where low-sale models would return 0 sales in years 2 and 3. August 12, 2022 Made Units Revenue Model more resilient if $0 is entered for COGS. Made Units Revenue model more resilient when using Human Override option. Adjusted Marketplace model to more accurately predict listings when Sellers only list a few times per year. Adjusted marketplace model to more accurately gray out affected controls when start dates are adjusted for each price tier. Removed option to iteratively set launch month of Marketplace based on target # of Sellers or Buyers. June 3, 2022 Marketplace now defaults to acquiring Buyers as a multiple of current # of Sellers, to make it easier to map out customer acquisition. Pitch Deck Slide subsection for Revenue now properly displays plural names of Transactions and Units. Removed "Limit # of Transactions that Buyers Complete per Month" in Marketplace settings, since it was never used. May 26, 2022 Marketplace section of Customers tab now zeros out correctly in all instances. May 8, 2022 Marketplace section of Customers tab now grays out correctly in all instances where it's not being used in the model. Updated Customers tab to calculate Direct Sales commissions properly in all instances. Updated Customers tab to calculate revenue from Tier 3 Unit sales with multiple items properly in all instances. Updated Customers tab to properly handle Y2 and Y3 Units>Transactions sales in all instances. April 2, 2022 Improved dashboard for Growth-Based Sales Funnel to show Churn + # of Active Subs @ End of Period + dynamically adjust to Marketplace and Units models Added "From Growth-Based Funnel" line to Row 5 of Pitch Deck Slide (hidden by default) to properly account for all customer acquisition funnels. Adjusted Financing tab to properly reflect "Cash Flow from Operating Activities" in all instances. March 14, 2022 Cleaned up more language from transfer to Growth-Based and More Detailed Sales Funnels. Financing Tab: Year 4 and Year 5 of Subscribers for implied acquisition value now calculate properly in all instances. Added "Cumulative Sales Over Time" row to Growth-Based Sales Assumptions section of Customers tab to reduce confusion about how the sales funnel is additive. January 20, 2022 Rocket Pro Forma is noticeably faster to use, now that we've streamlined some of the calculations in the Customers tab. Combined former Top-Down and Bottom-Up Sales Funnels into one section, so you now have 6 additive sales funnels to layer. Former "Top-Down Sales Targets" is now called "Growth-Based Sales Funnel". Advanced Growth-Based Sales Funnel settings now calculate properly in all instances where Starting # of Sales is specified. Cleaned up language/instructions for entering assumptions into Growth-Based Sales Funnel. Renamed "Flat" curve in Advanced Growth-Based Sales Funnel settings to "Even". Added "How To" videos for Sales Funnels, COGS, and Fulfillment January 3, 2022 You can now manually edit the Top-Down Sales Targets in Row 1503 of the Customers Tab ("Top-Down Sales Targets per Month") Added a straight % category to Fulfillment options ("Our fulfillment averages 8% of revenue" without having to worry about the details) Added a Shopify category to Fulfillment options Fulfillment (shipping) costs can now be booked as either COGS or G&A, and now defaults to COGS (accounting standard is G&A, but many founders prefer COGS to see all variable costs in one place) Income Statement now properly accounts for Marketplace spend to acquire Buyers in all instances Subscriptions Revenue Model no properly calculates ongoing sales commissions for Direct Sales in Bottom Up Sales Targets in all instances. Subscriptions Revenue Model no properly calculates ongoing sales commissions for Channel Partners in Bottom Up Sales Targets in all instances. December 28, 2021 Updated subscription calcs to properly handle Deferred Revenue in all instances. Fixed issue where annual EBIDTA could be summed incorrectly when fulfillment options were active. November 10, 2021 Added one-time COGS for Subscriptions (as a supplement to monthly COGS). COGS for Transactions and Subscriptions now both support more than one COGS expense, which are customizable. FIxed issue in Hiring Plan where entering text in Column B could display a #REF error. Added readout to Top-Down Sales section of Assumptions tab to estimate annual growth based on the monthly growth % that is input. Separated Annual vs. Monthly Balance and Churn sections in Subscriptions section of Assumptions tab to make each easier to understand. Website Traffic Assumptions section of Assumptions tab now de-activates when not applicable. It's only relevant for Bottom-Up Sales, Selling Ad & Data revenue model, and Two-Sided Marketplaces. October 29, 2021 Balance Sheet: Updated Accounts Payable calculation. Dynamic Hiring: Fixed edge case in Dynamic Hiring Based on Time (Hiring Tab) where setting "Hire Every X # of Months" to zero would cause a #REF error. Dynamic Hiring: Addressed issue where G&A headcount could be tabulated incorrectly in Hiring Plan tab. Use of Funds tab: $ amounts are now calculated on the cash basis instead of accrual—which is more relevant to how the money will be spent. Financing tab: Reworked the IRR and Money-Over-Money calculations at the bottom of the tab to be more accurate when evaluating the opportunity for investors. October 14, 2021 Updated Hiring Plan to properly calculate dynamic headcount in all instances. Updated Use of Funds tab to default to # of months of financing required, which you can manually override. October 1, 2021 Major update to Hiring Plan Tab + other assorted fixes Updated Contract / Billable section of Hiring Plan to support Contractors with or without billing out to clients (starting in Row 112 of Hiring Plan) Added ability in Hiring Plan to include or exclude individual contractors when calculating Headcount for the Pitch Deck Slide. Added optional End Month for contractors in case you want to stop working with them—especially useful for hiring in years 2 and 3 to replace contractors in year 1. Added Dynamic Hiring to Hiring Plan Tab - You can now automatically scale hiring based on # of customers, time, and/or revenue (starting in Row 133 of Hiring Plan) Updated how training and ramp-to-quota are calculated for Direct Sales people—it's now more robust if you want to add sales people (+ you can use the new Dynamic Hiring based on Time to add sales people) Changed salary reduction in Hiring Plan to "% Reduction in Salary" which is hopefully less confusing than "% of Salary" To help people understand the exact timing of their funding needs: Added financing needed per month section to Cash Flow Statement rows 171 & 172. September 24, 2021 Updated language to "Revenue Models" (from Business Models) in all instances Fixed calc for Y1 COGS in Dashboard tab > Likely Case (Row 10). Updated pointer to New Invoices per Period for Units Accounts Receivable in Cash Flow Statement. August 20, 2021 Major update that includes numerous small adjustments plus: New Top Down Sales engine that handles low-volume sales (for consulting, high-ticket items, etc.) and also offers advanced options to customize the sales growth curve for year 1. August 9, 2021 Transaction Revenue Model no longer calculates additional transaction fees for waitlist when Marketplace is active. Moved COGS calculations for manufacturing / inventory into Customers tab from Income Statement - in order to clean up the Income Statement. Fixed conditional formatting (greying out) of manufacturing / inventory sections in Customers tab. Added a Notes column to the Assumptions tab. Fixed calculations of Operating Expense categories in Section 6 of Navigation tab. August 5, 2021 Adjusted Marketplace calculation for Buyers who are repeat listing each month in all 3 tiers. July 5, 2021 Added named ranges for monthly and annual churn in Subscriptions business model. Repeat sales for Units now trigger in Y1 as long as the Units biz model is active (it no longer has to be the primary to trigger in Y1). May 10, 2021 Adjusted Marketplace churn to properly format for Buyers vs. Sellers driving transactions. Annual Tier 2 and Tier 3 Subscriptions now use a slightly more accurate calculation for annual churn. Marketplace rows in Cash Management Assumptions now disable / enable properly when Marketplace is activated in Transactions biz model. May 4, 2021 Adjusted Cash Flow Statement to properly handle repayment of initial loan. Adjusted Pitch Deck Slide to properly display GMV and CAC in years 4 and 5 April 26, 2021 Adjusted Pitch Deck Slide Y4 and Y5 to 1) not show investment and 2) properly multiply Ads & Data and Hourly Billing in Revenue detail section. April 19, 2021 Adjusted inventory predictions on Income Statement to properly reflect # of Units per Transaction for all 3 Units Price Points. Adjusted matching COGS on Income Statement to properly reflect # of Units per Transaction for all 3 Units Price Points. March 15, 2021 Added ARR, MRR, and # of Subscribers as options to calculate potential acquisition value in Implied Acquisition Value section of Fianancing tab. Start Month for inventory of all 3 Unit tiers now adjusts for type of manufacturing ("Batched" vs. "Drop Ship" and "Just In Time" Adjusted low cash position of Financing tab to exclude annual totals. Properly handle Expense per Employee on Pitch Deck Slide in situations with zero employees. Added calculation of trials needed to drive requested # of subscriptions for Top Down Sales Targets in Assumptions tab. Updated indication of year in hints for Assumptions tab whenever you enter a start month to properly handle models that start on months other than January. January 27, 2021 Updated Nav Bar in row 1 of Assumptions tab to dynamically adjust hyperlinks based on which biz models are active. Pitch Deck Slide now automatically shows correct third key metric when Subscriptions is set as primary and either Transactions or Units is secondary. Restored the ability of Top-Down Sales Targets to automatically choose the appropriate start month for the primary business model. Added years 4 and 5 to the Fulfillment hidden section of the Pitch Deck Slide. January 25, 2021 Tier 2 and Tier 3 COGS for Units now enable / disable properly in the Assumptions tab. Limited input for number of months in Batched manufacturing to an integer number of months in Units COGS section of the Assumptions tab (because this model doesn't support days / partial months). Bottom-up Ad Sales now properly reflects year 3 ad spend in all instances. January 4, 2021 Income Statement COGS for Transactions now updates correctly for all tiers when Marketplace is active. December 23, 2020 Added a few new options to Pitch Deck Slide customization of Key Metrics 2 and 3: Gross Merchandise Values (for Marketplace models) and Global CAC. "None" option for Pitch Deck Slide now blanks out Key Metric 2 and/or 3. "<Auto>" option is now the default that automatically adjusts based on the selected revenue model(s). Added dates to all appropriate fields in Assumptions tab (Month X of Year Y) to translate from 1 to 36 moths into easily understandable English. Adjusted Transaction / Marketplace sales via Channel Partners in Y2 and Y3 of Customers tab line 38 to properly reflect Start Month for Seller Acquisition by Partners from line 678 of Assumptions tab Cleaned up Marketplace language around Buyers, Sellers, and Listings vs. Transactions on Assumptions and Customers tabs. Avg Transaction Amount in Cost of Sales for Transactions section of Assumptions tab now shows correct amounts when Marketplace model is active for all 3 tiers. Adjusted CAC Spend if You're Only Using Top-Down Sales Targets in line 13 of Customers tab to turn itself off when Bottom-Up Sales are activated. Adjusted Transactions Key Metric in Pitch Deck Slide to display Marketplace transactions regardless of whether Buyers or Sellers are paying the transaction fees. Moved Website Traffic Assumptions into its own section on the Assumptions Tab. Updated Use of Funds tab to automatically use # of months to break-even reported at top of Financing Tab. Added option to Use of Funds tab to Break Out Salaries Separately or not. November 22, 2020 Adjusted three tiers to reflect retail price rather than GMV in quick margin calculations in Unit COGS section of Assumptions tab. November 19, 2020 Adjusted Website customer calculator in Bottom-Up Sales Funnels section of Assumptions tab to properly reflect Website conversion ratio. November 17, 2020 Adjusted Payment Processing Costs in Unit Economics for Transactions in Dashboard tab to gracefully handle instances where # of Transactions = zero. Adjusted Payment Processing Costs in Unit Economics for Transactions in Dashboard tab to automatically gray out when Payment Processing Costs = zero for all three years. Adjusted Lifetime Revenue per Customer for Unit Economics for both Transactions and Units to properly reflect the # of Purchases over an average customer's lifetime. November 9, 2020 Fixed issue where Operating Expenses line of Pitch Deck Slide could show negative numbers under certain circumstances. Added Advanced Settings for App Store section to Assumptions tab so you can now apply App Store commissions to specific biz models (Transactions, Units, and / or Subscriptions) Units biz model now incorporates "Avg # of Units Purchased per Retail Transaction" from Assumptions tab into inventory planning for each Tier. Updated Implied Acquisition Value section of Financing tab to let you choose between EBITDA and Revenue when entering a multiple to calculate exit price. Adjusted Exit Multiple and IRR calculations section in Financing tab to only use cash flow (vs. EBITDA in previous version). Added hidden year 4 and year 5 columns to FInancing tab to evaluate Acquisition Value and Exit Multiple for those years. Consolidated Exit Multiple & IRR Calculation into one section with checkbox to include / exclude Acquisition Value. Subsections of "Step 2: Using Primary Biz Model(s) as Source of Sales for Other Biz Model(s)" section of Assumptions tab now gray out properly depending on which biz models are active. November 6, 2020 Fixed issue where Operating Expenses line of Pitch Deck Slide could show negative numbers under certain circumstances. Fixed issue where entering zero for CPC or CVR would cause #DIV errors. Added Global CAC section to Dashboard tab. Updated Transactions and Units pricing sections of Assumptions tab to reflect global CAC. Updated Subscription Per Customer Unit Economics calculations in Assumptions Tab to reflect global CAC. Fixed issue where Quick Ratio in Dashboard tab would occasionally display giant numbers. November 5, 2020 Key Metric #2 of Pitch Deck Slide no longer displays FALSE under certain circumstances. Credit card charges can now be assigned to COGS—only if 1) the box is checked and 2) % of sales with credit card fees is set to 100% for all 3 years. Added legal disclaimer to Navigation tab. Added more how-to videos to the Assumptions tab (Ad & Data biz model, Marketplace biz model, virtual COGS, physical COGS, and one-time & annual OpEx) Gave Website traffic it's own home in the Assumptions tab that's separate from whether the Website drives sales (because website traffic now also drives Marketplace and Ads / Data biz models). Gave Website sales their own 3-year CVC settings that are now separate from Paid Ads 3-year CVR settings. November 3, 2020 Marketplace tiers now gray out for years before they become active. November 2, 2020 Direct Sales Commissions are now calculated as a positive number on the income statement. Subscription revenue recognized from Direct Sales now properly account for tier 2 and tier 3 Subscriptions in all instances. October 29, 2020 Transactions are now displayed correctly in Pitch Deck Slide for all combinations of Marketplace biz model settings. Adjusted calculation of Accounts Receivable for Subscriptions to no longer include Deferred Revenue. Rebuilt the way that the Cash Flow Statement handles Accounts Payable so that rent and salaries are always paid in the month they're due vs. other expenses for which payment can be delayed. October 27, 2020 Added line for Ad & Data Sales + Hourly Billing to hidden breakout of Revenue detail. Adjusted how total revenue is calculated on the Income Statement in order to better reflect all revenue streams. October 26, 2020 Updated Cash Flow Statement to properly account for new employee furniture / computer purchases in Year 1. October 23, 2020 Updated Transactions business model to properly handle repeat customers when Transactions is not the primary business model. Updated Units business model to properly handle repeat customers when Units is not the primary business model. October 22, 2020 Updated Hiring tab to allow discounted salaries for a certain # of starting months (an improvement from previous all-or-nothing functionality). Adjusted green indicators in Hiring Tab column D to preform better when either column B or C is deleted (vs. set to zero). Adjusted Transactions line in Pitch Deck Slide to better handle Buyers driving transactions in a Marketplace business model. Added Fulfillment and Distribution to G&A section of Operating Expenses. October 21, 2020 Updated Pitch Deck Slide to better handle customized names of Buyers and Sellers in Key Metrics for Marketplace business model. Updated Pitch Deck Slide to properly credit cash flow for Batched (pre-paid) inventory vs. Just In Time / Drop Shipped inventory (added a new section on the Cash Flow Statement to track this). October 20, 2020 Updated NPV calculation in Financing tab to reflect cash flows instead of simply EBITDA. Updated the Change in Work in Progress Inventory on the Cash Flow Statement to reference the correct cells on the Income Statement. Updated Transactions section starting in row 4 of Cash Flow Statement to properly reflect cash in from Top Down Sales Targets. Updated Units section starting in row 44 of Cash Flow Statement to properly reflect cash in from Top Down Sales Targets. October 19, 2020 Updated Customers tab to turn off appropriate inputs when Bottom Up Sales is disabled. Updated Marketing Spend on Channel Partners per Month line 297 of Income Statement to more accurately reflect settings in Assumptions tab. Updated Retail & Wholesale Margin calculations for Tier 2 Units on Assumptions tab to reflect the proper COGS. Updating hiring spend (desk + computer) to properly calculate per-hire spend in Year 1. Updated Paid Ad spend to properly calculate in situations where start month was greater than 12. October 16, 2020 Added Fulfillment Expenses to Assumptions tab, with calculations added to Customers and Income Statement tabs (Amazon & Other / Shopify) Moved Credit Card Expenses into Selling Expenses on Assumptions tab and Income Statement October 13, 2020 Adjusted available Buyer calculations in Marketplace model to more accurately reflect churned Buyers. Adjusted Marketplace Transactions from Buyers to properly reflect # of newly onboarded Buyers each month in situations where Buyers are driving Marketplace transactions. October 8, 2020 Marketplace now supports flat fee per transaction (in addition to % fee per transaction). Adjusted line 22 of Pitch Deck Slide to properly display revenue from Marketplace transactions. Deleted 5 hidden sheets for older versions of Pitch Deck Slides. Hidden revenue detail on Pitch Deck Slide now dynamically adapts when Marketplace is active. Adjusted Cash Flow Statement to properly account for Marketplace fees. October 7, 2020 You can now choose whether Sellers or Buyers drive the transactions in your Marketplace, which can make a big difference in the number of transactions. Made the Pitch Deck Slide more resilient so you can now change the names of the Key Metrics in cells C4, C14, and C16. Adjusted Revenue Growth % calc in Y4 and Y5 of Pitch Deck Slide to properly refer to Revenue line. Adjusted 2nd and 3rd Key Metrics for Y4 and Y5 in Pitch Deck Slide to automatically disappear if one or both isn't being used. Adjusted Start Month for Marketplace to solve a potential error in some situations where the Transactions business model was disabled. Adjusted Pitch Deck Slide to properly count Buyers, Sellers, and Transactions for Marketplace configurations. Adjusted "Active Sellers - Tier 2 & 3 (Incl. Newly Onboarded)" line 594 and 595 of Customers tab to properly include newly onboarded Sellers. Adjusted "Monthly Budget to Acquire Buyers" line 606 of Customers tab to properly reflect Y2 and Y3 budget set in line 285 of Assumptions tab. Adjusted "Total Revenue Recognized" line 86 of Income Statement to include Marketplace revenue under all circumstances. October 5, 2020 Adjusted Navigation tab to include Top Down Paid Ads to Close Gap for summaries of all three business models. Set MKT_Active to also include if Transactions business model is active. Added "Inventory - Work in Progress" to Balance Sheet to better capture manufacturing batches that have been started but not completed. Updated "Change in Inventory (COGS)" line 130 of Cash Flow Statement to include new "Inventory - Work in Progress" subtotal. Updated "Cash at Start of Period*" line 52 of Pitch Deck Slide to properly reflect starting cash for Q2, Q3, and Q4. October 1, 2020 First version of Marketplace functionality! You can turn Marketplace on / off inside of the Transactions business model. Updated Cash Flow Statement to reflect Change in Accounts Receivable across new Marketplace and Ad / Data income streams. Added small green lights to Hiring Tab to show if each position has been hired at some point in 3 years—makes it easier to read at a glance. Updated Pitch Deck Slide to label Year 4 and Year 5 to match Years 1, 2, and 3. Added Sellers and Buyers as optional key metrics on Pitch Deck Slide to support the new Marketplace functionality. September 29, 2020 Updated Customers tab to properly reflect Y2 and y3 "Ad Spend per Month" from Assumptions tab. Updated Navigation tab to point to the new Pitch Deck Slide. Naming Transactions & Units now handle plurals for words that end in "y". September 21, 2020 Added credit card per-transaction flat fee to Assumptions tab, to handle 30 cents + 2.7%. Also created new "# of Purchases Counter" section in Customers tab to add up all transactions per month. Updated "Trials from Ads to Close Gap" in hidden section of Pitch Deck Slide to properly reflect annual totals. Added ability to decide whether 1) new + existing customers or 2) only new customers drive secondary business models. This can have a large effect on # of sales fo rthose secondary business models. September 15, 2020 Updated Pitch Deck Slide to better handle blank entries for Key Metric #2 and Key Metric #3 Assumptions tab now grays out sections for years that aren't relevant—in order to declutter and make things easier for users to understand. September 14, 2020 Consolidated Pitch Deck Slide into one tab (it used to be six separate tabs) Pitch Deck Slide now automatically customizes itself based on the business models you choose. Pitch Deck Slide now has an option to override key metric #2 and key metric #3 to your choice. Pitch Deck Slide now offers year 4 and year 5 with adjustable growth rates via a hidden group along the top. Adjusted returns and allowances to properly reflect Tier 2 and Tier 3 as negative numbers in Customers tab, Income Statement, and Pitch Deck Slide. September 3, 2020 Added "Ads / Data Revenue" to Assumptions tab, so you can now monetize both your customers and your website visitors. Also updated Income Statement and Cash Flow Statement accordingly. Updated Cash Flow Statement to better reflect accounts payable for monthly and annual subscriptions. Also updated Customers tab to support. September 2, 2020 Updated Unit COGS to better handle zero-month lead times and 0-month batching (same as selecting Just-In-Time or Dropship options for Unit COGS). Added "Skip Sales Quota" to Hiring Plan Column G which allows you to exclude certain sales people from selling the quota (to more accurately model complex sales teams). Added "Free Months at Start" to Hiring Plan for founders and other early employees who will work for free for an initial period. Updated Basic Salary Subtotals section in Hiring Tab to accurately reflect total salaries in four categories: COGS, S&M, R&D, and G&A. August 21, 2020 Added starting cash in bank to total invested before this model starts in Financing Tab Updated exit multiple on Financing Tab August 17, 2020 Upgraded Top Down Sales Targets to better handle repeat customers Updated Investment & Financing* line in all Pitch Deck Slides to not include loan payments (cash out) August 2, 2020 Updated Units assumptions to reflect Avg # of Units Purchased per Retail Transaction for each tier Updated Units assumptions to reflect Y2 and Y3 discounts for Tier 2 and Tier 3 Avg # of Months to Repeat Purchase must now be set between 1 and 37 months (setting it to zero months would create an infinite loop) Repeats now feed back into the # of customers from which to calculate future repeat sales, since existing repeats are most likely to repeat again July 24, 2020 Published a major upgrade with intelligence to automatically map out your sales and revenue plan via Top-Down Targets You can also map out a Bottom-Up Sales Strategy to achieve your Top-Down Targets, and you can close any gap with Paid Ads. July 23, 2020 Upgraded return calculations for Units Adjusted renewal period for annual subscriptions by one month in "Churn for Subscriptions" section of Customers tab Adjusted trial to subscription conversions from Direct Sales and Channel Partners by one month in "New Subs Channel Partner Commissions & Cash Flow Calc" section of Customers tab Moved previous cash invested by founders into Financing tab (from Assumptions tab) July 20, 2020 Disabling Tier 3 Units now grays out both buinsess model and COGS assumptions Fixed inventory prediction engine for manufacturing batches that start after month 1 Activating human override now grays out inventory prediction engine for all three tiers of Units. July 16, 2020 Base Case, Best Case, and Worst Case scenarios in Dashboard tab now handle zero revenue years more gracefully. Updated the way the Assumptions tab calculates CAC for subscriptions without trials. Updated the way Office Build-Out in CapEx flows through to the Cash Flow Statement. Updated Sheet Protection of Changelog tab so that people can delete it if they want. July 14, 2020 Fixed % of new customers allocated across 3 tiers for Services, Units, and Subscriptions business models. July 13, 2020 Moved hourly billing FTEs to bottom of Hiring Plan tab to reduce confusion. Added bottom-up sales funnel in Assumptions tab (which is calculate in Customer tab) Made Hiring Plan tab more resilient when adding and removing rows Hiring Plan tab now alerts with red box when Cost Type isn't present in Column H, which often happen when people create new rows in the Hiring Plan tab. Removed unused Range Names from Hiring Plan tab Fixed annualized revenue per employee calculation in Hiring Plan tab Assumptions tab now lets you assign one-time purchase of computer and furniture for new hires to either OpEx (default) or CapEx July 10, 2020 Fixed the formatting of the Assumptions tab including moving notes out of input boxes and greying out sections as they are disabled. Added Waitlist funnel # of sales + revenue to all 6 pitch deck slides Set all waitlists to zero for all tiers of all 3 business models July 7, 2020 Income statement now ignores batched manufacturing for Tier 2 and Tier 3 units if they are disabled. June 29, 2020 Fixed more totals for pitch deck slides to solve for weird bug in Google Sheets that occasionally shows #REF errors even though the formulas are correct #stupidgoogle Added waitlist sales to Cash Flow Statement for Services and Units Added checkbox to turn on / off trials for subscriptions & re-wired Customers tab to respond accordingly (if there isn't a trial then everyone who would've been a trial converts to paid at 100%) June 17, 2020 Fixed plurals for customized vocab for Transactions and Units business models in multiple locations across all tabs. June 16, 2020 Now correctly caculate COGS for Units biz model in Income Statement Now correctly caculate COGS for Units biz model in all Pitch Deck Slides June 15, 2020 Now show "Investment & Financing" by default in Pitch Deck Slides to make it easier to understand where $ is coming from and how much $ your company needs to raise for this plan Now calculate all Pitch Deck Slides using Named Ranges in order to avoid summing bug in Google Sheets Adjusted some Capital Expenses to appear as negative values on the Cash Flow Statement, in order to accurately represent cash flow Adjusted Cash Out for Operations line of all Pitch Deck Slides to reflect Accounts Payable length June 10, 2020 Added on/off checkbox for Startup Costs > Operating Expenses (OpEx) Added on/off checkbox for Startup Costs > Capital Expenses (CapEx) Adjusted cash flow calculations for Startup Costs > Capital Expenses (CapEx) June 9, 2020 Added 3-Year Summary to Income Statement Added 3-Year Summary to Cash Flow Statement Added 3-Year Summary to Balance Sheet Adjusted booking calculations (net to your company) for sales of subscriptions by channel partners to more accurately account for sales commissions to channel partners. Prepaid Expenses are now properly accounted for on Cash Flow Statement Adjusted quota calculation for direct sales teams that don't require training or ramp to quota Adjusted calculation of repeat customers for Transactions and Units to reflect customizable year 2 and year 3 settings Adjusted calculation of customers coming into Transactions and Units from other biz models to reflect adjustable year 2 and year 3 settings June 8, 2020 Added waitlist functionality for both Services and Units. Customers from waitlist will be added and charged the first month that each tier becomes available. Fixed an issue where start month for tier 2 and 3 of Units was tied to start months of Transactions. Broke out recognized revenue per tier for Channel sales for Services, Units, and Subscriptions in Customer tab—to correct issue where channel commission were not being subtracted. June 6, 2020 % of tier 3 subscribers is now calculated correctly (was using % of tier 2 subscribers for tier 3 instead) Reversed Accounts Payable to properly calculate cash flow June 3, 2020 Added hourly billing as a new biz model / revenue stream to Hiring Plan, Customers tab, Income Statement, and Cash Flow Statement Removed OpEx and CapEx Hooks from Customers tab Changed name of Start Here tab to Assumptions tab (now that you "Start Here" on the Navigation tab) June 1, 2020 Updated calculation of subscribers at end of period in Monthly Subscription Pitch Deck Slide Removed script for naming ranges Fixed issue with custom start month set in Start Here tab (needed to update row 3 of Hiring Tab) Fixed OpEx subtotals in expansion groups. for all six pitch deck slides May 29, 2020 Updated calculation of Investment & Financing in quarterly pitch deck slides May 26, 2020 Created new Customers Tab out of existing Hooks tab. Simplified Income Statement Tab by moving all customer calculations into Customers Tab. Fixed issue where entering start month of zero for pricing tiers could case REF error. Added OpEx salaries into Navigation tab to make it more intutive to get the full picture of operating expenses by category. May 22, 2020 Changed the name of this spreasheet to Rocket Pro Forma (why didn't I think of that sooner lol) Added "Next" buttons to Navigation tab to simplify the user experience. Added a table of contents to the Navigation tab to orient users and make it easier for them to jump around the spreadsheet. Dashboard section covering Accounts Payable Days now handles AP = 0 correctly. May 21, 2020 Made Organic and Paid Ad sales funnels much easier to use. Combined CVRs (conversion rates) for website Organic and Paid Ad sales funnels into one number (vs. separate CVRs for Transactions, Units, and Services). May 15, 2020 Added Dashboard tab with common metrics and KPIs to evaluate the projected financials incl. accounts receivable days, accounts payable days, operating expense measures as % of revenue, inventory turns, simple breakeven calcualtions, working capital, quick ratio Added more How To videos Changed Subscription calculations to End of Period in Pitch Deck Slide (both Quarterly and Monthly) May 14, 2020 Implemented first version of upgrading from an old version of Rocket Pro Forma to a new one. Formatted Start Here and Finance Tabs to match new Navigation Tab interface Average expense per employee to all Pitch Deck Slides (3 quarterly + 3 monthly) May 12, 2020 Added Accounts Receivable for Annual Subscriptions (and left a hook for AR for Monthly Subscriptions if needed, but thinking that Monthly Subs will pay up front via credit card) May 11, 2020 Added Accounts Payable (in months) for better cash planning and management. Enter in Start Here tab. Changes are reflected in Cash Flow Statement and Balance Sheet. Adjusted some calculations on Balance Sheet to recalculate Shareholders' Equity Pitch Deck Slides - Added average (operating) expense per employee Unit sales through partners now factor in AR # of months partners take to pay (in addition to standard AR from customers) Added concept of Outstanding CapEx to delay payment on purchases of Equipment, Tooling, and Other CapEx Added checkbox in Start Here to "Allow Upgrades and Downgrades Between Subscription Tiers?" May 8, 2020 All 6 Pitch Deck Slides now show a more friendly cash tracker at the bottom (cash in and cash out per period) Added cash from other biz model sales funnels to Services and Units in the Cash Flow Statement Months and Years can now be customized to either be generic (Mo 1 of Year 1) or start the financial projections on a specific month of a specific year (Apr of 2021) May 7, 2020 Updated inventory calculation in Balance Sheet to include all three tiers of Unit sales. May 6, 2020 Added start month for office rent + security deposit that is accounted for on Cash Flow Statement and Balance Sheet as a prepaid expense Cinco de Mayo, 2020 Updated Navigation tab with instructions and dynamic activation of selected business models Manufacturing batches can now be manually overridden in Hooks tab Start Here tab now accepts # of units for manufacturing runs (used to be dollar value, which was more difficult to work with) Added Other category to CapEx purchases (to provide more flexibility) CapEx can now be manually overridden in Hooks tab. Also fixed calculations for years 2 and 3. May 4, 2020 Added Navigation tab to guide user through the customization process Fixed sales funnel flow for multiple business models active at once Fixed greying out / decativation for inactive business models Added calculation for # of units manufactured for Batched inventory May 1, 2020 Moved naming for Service and Unit terminology above menu to choose main biz model (vs. below where it was confusing because it causes the menu to turn red). Now smarter about guessing plurals for Service and Unit terminology that ends in "s" (like Class / Classes) April 30, 2020 Fixed bug in Transactions Pitch Deck Slide where quarterly sales (Q2, Q3, Q4) weren't being calculated properly April 27, 2020 Units- Updated COGS calculations for pricing tiers 2 and 3
  • What isn't handled by Rocket Pro Forma?
    I'm updating the spreadsheet all the time (see below for the change log). The next things on my to-do list are: - Taxes and depreciation - Use of Funds summary + chart + burn rate - Dashboard of common KPIs - Allowing transactions to happen more than once per day and also less than once per month - Scenarios / sensitivity analysis (base case, worse case, and better case) - Improve building out both sides of a marketplace business (sellers & buyers) - Add subscriptions longer than 1 year - Curve calculator to project three years of sales and match to your sales funnels Things that Rocket Pro Forma probably won't handle any time soon: - More than three pricing tiers for any business model (you can use averages and/or add your own tab of you have more subscription tiers). - Detailed marketing breakdown by channel (you can use average spend, cost-per-click, and conversion ratios). Rocket Pro Forma is powerful and I've been getting great feedback from the entrepreneurs who have used it. You're welcome to check it out and use the money-back guarantee if you're not satisfied.
  • Why three years?
    The world is moving so quickly that it’s hard to plan even three years ahead. I used to do 5-year projections, but switched a decade ago and haven’t looked back.
  • How do I enter my assumptions?
    Mostly by entering three values for year 1, year 2, and year 3 along with a growth rate. The Rocket Pro Forma template automatically does all the work filling out the 36 monthly cells for you. And then you can easily change your assumptions as needed. Here's a video walkthrough of how easy it is to enter (and update) three years of assumptions:
  • What is the format of the Rocket Pro Forma template?
    It’s a Google spreadsheet. You can make your own copy and customize it to your business. The great thing about Google Sheets is that you can share them online. I often collaborate on financial models with entrepreneurs in real time.
  • Can I use Excel?
    The short answer is yes. You can download Rocket Pro Forma as an Excel file from Google Sheets. The long answer is that I haven’t tried to open it in Excel in a long time (in fact, I like Google Sheets so much that I haven’t installed Excel on my computer in over a year).
  • What if I’m afraid of spreadsheets?
    I’ve designed Rocket Pro Forma to do all of the work for you, even if you hate spreadsheets. You simply enter your assumptions and you’ll automatically see a killer pitch deck slide plus income statement, cash flow statement, and balance sheet. Your accountant and your potential investors will all love you.
  • What if I’m awesome at spreadsheets?
    Rocket Pro Forma is perfect for you! It does a lot of the heavy lifting, and then you can customize to your heart’s content. I’ve seen entrepreneurs and their hired guns do all kinds of cool extensions of the Rocket Pro Forma template.
  • How often do you update Rocket Pro Forma?
    All the time! Here are the last few years of improvements: September 30, 2023 Beta version of export to Excel! Hiring Plan - Rows gray out if no salary or no start date (to reduce visual clutter) Hiring Plan - Added % of hires with recruiting fees (set on Assumptions tab) Hiring Plan - Internally made COLUMN() dynamic Hiring Plan - Now break out 1099 comntractor payments by category, and also added to Income Statement Hiring Plan - Dynamic Hires based on sales and revenue now start at 1 hire in all circumstances. Units - Completely rewrote COGS engine to improve handling of manufacturing and inventory, and to easily see # of units produced Units - COGS engine now handles $0 COGS properly Units - Fixed issue where # of Units sold wouldn't calculate properly at low sales volumes if distribution across tiers was less than 50% Units - Fixed issue where number of units returned was not displaying properly at top of Customers tab Units - Returns now multiplies cost by the correct # of Units in all instances for sales of multiple Units Units - Returns now calculates return costs using COGS (landed cost) whenever retail price = zero (for giveaways, especially when monetized via Subscriptions) Transactions - Fixed issue where # of Units sold wouldn't calculate properly at low sales volumes if distribution across tiers was less than 50% Subscriptions - Fixed an issue where total # of new subscribers added per month could be off by 1 Subscriptions - Fixed issue where deferred revenue could lead to incorrect calculation of monthly cash flow Subscriptions - Created foundation for allowing subscriptions of any # of months (monthly, quarterly, semi-annually, annually, etc.) Transactions - Manually adding new Transactions per tier in Customers tab now works properly in all instances May 2, 2023 Fixed issue where some sales people weren't being excluded from sales quota in Hiring Plan tab. February 27, 2023 Fixed UI issue where #x of Buyers in Markeplace Settings wasn't graying out properly Fixed year 4 and year 5 Implied Acquisition Value to work properly in all instances Acquiring Buyers as multiple of Sellers in Marketplace settings no longer allows negative numbers Fixed Cash Burn in years 4 and 5 on Pitch Deck Slide January 10, 2023 Reworked hidden cash flow section (rows 59-67) of Pitch Deck Slide to mirror Cash Flow Statement categories Added Net Cash Burn and Runway Months to Pitch Deck Slide Added %s option for each tier to COGS for Transactions, Units, and Subscriptions revenue models Tweaked 5-Minute Sales Funnel target for Y1 to show growth rate % Adjusted round robin customer acquisition for Transactions to handle rounding better in Tier 1 in order to always exactly match target # of sales Customer acquisition for Y2 and Y3 marketplace can no longer go negative if multiple of buyers is reduced in Y2 or Y3 When Marketplace buyers drive transactions, the number of Tier 1 buyers is calculated correctly in all instances Added ability to activate / deactivate Global COGS with a checkbox November 30, 2022 Subscription years 1 and 2 now grey out properly in all instances where subscription tiers don't start until years 2 or 3. Added round robin customer acquisition to Transactions revenue model in order to handle low % Tiers. Will expand to other revenue models in next update. Required financing now gracefully handles not needing any financing if cash flow never goes negative. Added 10-Second Startup Valuator to Financing tab: Our proven system to know exactly what your startup is worth right now. Rebuilt 5-Minute Sales Forcaster (formerly Growth-Based Sales Funnel) to make it easier to understand. August 31, 2022 Hiring plan now properly handles 100% salary reduction in all instances. Growth-Based Sales Funnel now defaults to 1 sale in month 1 of year 2 if the last month of the 1st year had zero, solving an issue where low-sale models would return 0 sales in years 2 and 3. August 12, 2022 Made Units Revenue Model more resilient if $0 is entered for COGS. Made Units Revenue model more resilient when using Human Override option. Adjusted Marketplace model to more accurately predict listings when Sellers only list a few times per year. Adjusted marketplace model to more accurately gray out affected controls when start dates are adjusted for each price tier. Removed option to iteratively set launch month of Marketplace based on target # of Sellers or Buyers. June 3, 2022 Marketplace now defaults to acquiring Buyers as a multiple of current # of Sellers, to make it easier to map out customer acquisition. Pitch Deck Slide subsection for Revenue now properly displays plural names of Transactions and Units. Removed "Limit # of Transactions that Buyers Complete per Month" in Marketplace settings, since it was never used. May 26, 2022 Marketplace section of Customers tab now zeros out correctly in all instances. May 8, 2022 Marketplace section of Customers tab now grays out correctly in all instances where it's not being used in the model. Updated Customers tab to calculate Direct Sales commissions properly in all instances. Updated Customers tab to calculate revenue from Tier 3 Unit sales with multiple items properly in all instances. Updated Customers tab to properly handle Y2 and Y3 Units>Transactions sales in all instances. April 2, 2022 Improved dashboard for Growth-Based Sales Funnel to show Churn + # of Active Subs @ End of Period + dynamically adjust to Marketplace and Units models Added "From Growth-Based Funnel" line to Row 5 of Pitch Deck Slide (hidden by default) to properly account for all customer acquisition funnels. Adjusted Financing tab to properly reflect "Cash Flow from Operating Activities" in all instances. March 14, 2022 Cleaned up more language from transfer to Growth-Based and More Detailed Sales Funnels. Financing Tab: Year 4 and Year 5 of Subscribers for implied acquisition value now calculate properly in all instances. Added "Cumulative Sales Over Time" row to Growth-Based Sales Assumptions section of Customers tab to reduce confusion about how the sales funnel is additive. January 20, 2022 Rocket Pro Forma is noticeably faster to use, now that we've streamlined some of the calculations in the Customers tab. Combined former Top-Down and Bottom-Up Sales Funnels into one section, so you now have 6 additive sales funnels to layer. Former "Top-Down Sales Targets" is now called "Growth-Based Sales Funnel". Advanced Growth-Based Sales Funnel settings now calculate properly in all instances where Starting # of Sales is specified. Cleaned up language/instructions for entering assumptions into Growth-Based Sales Funnel. Renamed "Flat" curve in Advanced Growth-Based Sales Funnel settings to "Even". Added "How To" videos for Sales Funnels, COGS, and Fulfillment January 3, 2022 You can now manually edit the Top-Down Sales Targets in Row 1503 of the Customers Tab ("Top-Down Sales Targets per Month") Added a straight % category to Fulfillment options ("Our fulfillment averages 8% of revenue" without having to worry about the details) Added a Shopify category to Fulfillment options Fulfillment (shipping) costs can now be booked as either COGS or G&A, and now defaults to COGS (accounting standard is G&A, but many founders prefer COGS to see all variable costs in one place) Income Statement now properly accounts for Marketplace spend to acquire Buyers in all instances Subscriptions Revenue Model no properly calculates ongoing sales commissions for Direct Sales in Bottom Up Sales Targets in all instances. Subscriptions Revenue Model no properly calculates ongoing sales commissions for Channel Partners in Bottom Up Sales Targets in all instances. December 28, 2021 Updated subscription calcs to properly handle Deferred Revenue in all instances. Fixed issue where annual EBIDTA could be summed incorrectly when fulfillment options were active. November 10, 2021 Added one-time COGS for Subscriptions (as a supplement to monthly COGS). COGS for Transactions and Subscriptions now both support more than one COGS expense, which are customizable. FIxed issue in Hiring Plan where entering text in Column B could display a #REF error. Added readout to Top-Down Sales section of Assumptions tab to estimate annual growth based on the monthly growth % that is input. Separated Annual vs. Monthly Balance and Churn sections in Subscriptions section of Assumptions tab to make each easier to understand. Website Traffic Assumptions section of Assumptions tab now de-activates when not applicable. It's only relevant for Bottom-Up Sales, Selling Ad & Data revenue model, and Two-Sided Marketplaces. October 29, 2021 Balance Sheet: Updated Accounts Payable calculation. Dynamic Hiring: Fixed edge case in Dynamic Hiring Based on Time (Hiring Tab) where setting "Hire Every X # of Months" to zero would cause a #REF error. Dynamic Hiring: Addressed issue where G&A headcount could be tabulated incorrectly in Hiring Plan tab. Use of Funds tab: $ amounts are now calculated on the cash basis instead of accrual—which is more relevant to how the money will be spent. Financing tab: Reworked the IRR and Money-Over-Money calculations at the bottom of the tab to be more accurate when evaluating the opportunity for investors. October 14, 2021 Updated Hiring Plan to properly calculate dynamic headcount in all instances. Updated Use of Funds tab to default to # of months of financing required, which you can manually override. October 1, 2021 Major update to Hiring Plan Tab + other assorted fixes Updated Contract / Billable section of Hiring Plan to support Contractors with or without billing out to clients (starting in Row 112 of Hiring Plan) Added ability in Hiring Plan to include or exclude individual contractors when calculating Headcount for the Pitch Deck Slide. Added optional End Month for contractors in case you want to stop working with them—especially useful for hiring in years 2 and 3 to replace contractors in year 1. Added Dynamic Hiring to Hiring Plan Tab - You can now automatically scale hiring based on # of customers, time, and/or revenue (starting in Row 133 of Hiring Plan) Updated how training and ramp-to-quota are calculated for Direct Sales people—it's now more robust if you want to add sales people (+ you can use the new Dynamic Hiring based on Time to add sales people) Changed salary reduction in Hiring Plan to "% Reduction in Salary" which is hopefully less confusing than "% of Salary" To help people understand the exact timing of their funding needs: Added financing needed per month section to Cash Flow Statement rows 171 & 172. September 24, 2021 Updated language to "Revenue Models" (from Business Models) in all instances Fixed calc for Y1 COGS in Dashboard tab > Likely Case (Row 10). Updated pointer to New Invoices per Period for Units Accounts Receivable in Cash Flow Statement. August 20, 2021 Major update that includes numerous small adjustments plus: New Top Down Sales engine that handles low-volume sales (for consulting, high-ticket items, etc.) and also offers advanced options to customize the sales growth curve for year 1. August 9, 2021 Transaction Revenue Model no longer calculates additional transaction fees for waitlist when Marketplace is active. Moved COGS calculations for manufacturing / inventory into Customers tab from Income Statement - in order to clean up the Income Statement. Fixed conditional formatting (greying out) of manufacturing / inventory sections in Customers tab. Added a Notes column to the Assumptions tab. Fixed calculations of Operating Expense categories in Section 6 of Navigation tab. August 5, 2021 Adjusted Marketplace calculation for Buyers who are repeat listing each month in all 3 tiers. July 5, 2021 Added named ranges for monthly and annual churn in Subscriptions business model. Repeat sales for Units now trigger in Y1 as long as the Units biz model is active (it no longer has to be the primary to trigger in Y1). May 10, 2021 Adjusted Marketplace churn to properly format for Buyers vs. Sellers driving transactions. Annual Tier 2 and Tier 3 Subscriptions now use a slightly more accurate calculation for annual churn. Marketplace rows in Cash Management Assumptions now disable / enable properly when Marketplace is activated in Transactions biz model. May 4, 2021 Adjusted Cash Flow Statement to properly handle repayment of initial loan. Adjusted Pitch Deck Slide to properly display GMV and CAC in years 4 and 5 April 26, 2021 Adjusted Pitch Deck Slide Y4 and Y5 to 1) not show investment and 2) properly multiply Ads & Data and Hourly Billing in Revenue detail section. April 19, 2021 Adjusted inventory predictions on Income Statement to properly reflect # of Units per Transaction for all 3 Units Price Points. Adjusted matching COGS on Income Statement to properly reflect # of Units per Transaction for all 3 Units Price Points. March 15, 2021 Added ARR, MRR, and # of Subscribers as options to calculate potential acquisition value in Implied Acquisition Value section of Fianancing tab. Start Month for inventory of all 3 Unit tiers now adjusts for type of manufacturing ("Batched" vs. "Drop Ship" and "Just In Time" Adjusted low cash position of Financing tab to exclude annual totals. Properly handle Expense per Employee on Pitch Deck Slide in situations with zero employees. Added calculation of trials needed to drive requested # of subscriptions for Top Down Sales Targets in Assumptions tab. Updated indication of year in hints for Assumptions tab whenever you enter a start month to properly handle models that start on months other than January. January 27, 2021 Updated Nav Bar in row 1 of Assumptions tab to dynamically adjust hyperlinks based on which biz models are active. Pitch Deck Slide now automatically shows correct third key metric when Subscriptions is set as primary and either Transactions or Units is secondary. Restored the ability of Top-Down Sales Targets to automatically choose the appropriate start month for the primary business model. Added years 4 and 5 to the Fulfillment hidden section of the Pitch Deck Slide. January 25, 2021 Tier 2 and Tier 3 COGS for Units now enable / disable properly in the Assumptions tab. Limited input for number of months in Batched manufacturing to an integer number of months in Units COGS section of the Assumptions tab (because this model doesn't support days / partial months). Bottom-up Ad Sales now properly reflects year 3 ad spend in all instances. January 4, 2021 Income Statement COGS for Transactions now updates correctly for all tiers when Marketplace is active. December 23, 2020 Added a few new options to Pitch Deck Slide customization of Key Metrics 2 and 3: Gross Merchandise Values (for Marketplace models) and Global CAC. "None" option for Pitch Deck Slide now blanks out Key Metric 2 and/or 3. "<Auto>" option is now the default that automatically adjusts based on the selected revenue model(s). Added dates to all appropriate fields in Assumptions tab (Month X of Year Y) to translate from 1 to 36 moths into easily understandable English. Adjusted Transaction / Marketplace sales via Channel Partners in Y2 and Y3 of Customers tab line 38 to properly reflect Start Month for Seller Acquisition by Partners from line 678 of Assumptions tab Cleaned up Marketplace language around Buyers, Sellers, and Listings vs. Transactions on Assumptions and Customers tabs. Avg Transaction Amount in Cost of Sales for Transactions section of Assumptions tab now shows correct amounts when Marketplace model is active for all 3 tiers. Adjusted CAC Spend if You're Only Using Top-Down Sales Targets in line 13 of Customers tab to turn itself off when Bottom-Up Sales are activated. Adjusted Transactions Key Metric in Pitch Deck Slide to display Marketplace transactions regardless of whether Buyers or Sellers are paying the transaction fees. Moved Website Traffic Assumptions into its own section on the Assumptions Tab. Updated Use of Funds tab to automatically use # of months to break-even reported at top of Financing Tab. Added option to Use of Funds tab to Break Out Salaries Separately or not. November 22, 2020 Adjusted three tiers to reflect retail price rather than GMV in quick margin calculations in Unit COGS section of Assumptions tab. November 19, 2020 Adjusted Website customer calculator in Bottom-Up Sales Funnels section of Assumptions tab to properly reflect Website conversion ratio. November 17, 2020 Adjusted Payment Processing Costs in Unit Economics for Transactions in Dashboard tab to gracefully handle instances where # of Transactions = zero. Adjusted Payment Processing Costs in Unit Economics for Transactions in Dashboard tab to automatically gray out when Payment Processing Costs = zero for all three years. Adjusted Lifetime Revenue per Customer for Unit Economics for both Transactions and Units to properly reflect the # of Purchases over an average customer's lifetime. November 9, 2020 Fixed issue where Operating Expenses line of Pitch Deck Slide could show negative numbers under certain circumstances. Added Advanced Settings for App Store section to Assumptions tab so you can now apply App Store commissions to specific biz models (Transactions, Units, and / or Subscriptions) Units biz model now incorporates "Avg # of Units Purchased per Retail Transaction" from Assumptions tab into inventory planning for each Tier. Updated Implied Acquisition Value section of Financing tab to let you choose between EBITDA and Revenue when entering a multiple to calculate exit price. Adjusted Exit Multiple and IRR calculations section in Financing tab to only use cash flow (vs. EBITDA in previous version). Added hidden year 4 and year 5 columns to FInancing tab to evaluate Acquisition Value and Exit Multiple for those years. Consolidated Exit Multiple & IRR Calculation into one section with checkbox to include / exclude Acquisition Value. Subsections of "Step 2: Using Primary Biz Model(s) as Source of Sales for Other Biz Model(s)" section of Assumptions tab now gray out properly depending on which biz models are active. November 6, 2020 Fixed issue where Operating Expenses line of Pitch Deck Slide could show negative numbers under certain circumstances. Fixed issue where entering zero for CPC or CVR would cause #DIV errors. Added Global CAC section to Dashboard tab. Updated Transactions and Units pricing sections of Assumptions tab to reflect global CAC. Updated Subscription Per Customer Unit Economics calculations in Assumptions Tab to reflect global CAC. Fixed issue where Quick Ratio in Dashboard tab would occasionally display giant numbers. November 5, 2020 Key Metric #2 of Pitch Deck Slide no longer displays FALSE under certain circumstances. Credit card charges can now be assigned to COGS—only if 1) the box is checked and 2) % of sales with credit card fees is set to 100% for all 3 years. Added legal disclaimer to Navigation tab. Added more how-to videos to the Assumptions tab (Ad & Data biz model, Marketplace biz model, virtual COGS, physical COGS, and one-time & annual OpEx) Gave Website traffic it's own home in the Assumptions tab that's separate from whether the Website drives sales (because website traffic now also drives Marketplace and Ads / Data biz models). Gave Website sales their own 3-year CVC settings that are now separate from Paid Ads 3-year CVR settings. November 3, 2020 Marketplace tiers now gray out for years before they become active.
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