Long Term Models for Startups or Acquisitions or …
If you are raising money for a startup, considering an acquisition, you want
a long term model for converting free to paid or for any other reason the MPMW
stands alone. You can build a full financial model that:
Lets you develop and refine your long term plan.
Makes it easy to look at worst-case scenarios.
Quickly and convincingly answers what-if questions from investors and upper
management.
Presents your plan in a readily readable form that gives investors or
management confidence that you have ‘done your homework’.
You can use your model to print circulation reports, P&Ls, cash flows and
balance sheets, but the most useful report is a print-out of the assumptions you
put into the model.
At a glance investors or managers can see your assumptions about:
New business production by source over time, including price and term,
credit, cancel and bad debt percentages, and renewal assumptions.
H1 |
Month |
# |
Subs/ |
Cost/ |
Promo |
BRE |
% |
% |
No |
% |
Sub. |
# |
% |
Renl |
H2 |
Begin |
Mo |
Month |
Month |
Cost |
Cost |
Cr |
BD |
Is |
Canc |
Rate |
Iss. |
|
Line |
H3 |
|
|
000 |
000 |
$/Sub |
$/Sub |
|
|
BD |
|
|
|
|
Code |
1 |
1/92 |
12 |
5.00 |
22.0 |
|
|
100.0 |
40.0 |
3 |
20.0 |
18.95 |
12 |
100.0 |
TV 1 Yr |
2 |
1/93 |
12 |
5.50 |
24.0 |
|
|
100.0 |
40.0 |
3 |
20.0 |
20.95 |
12 |
100.0 |
TV 1 Yr |
3 |
1/94 |
12 |
5.75 |
28.0 |
|
|
100.0 |
40.0 |
3 |
20.0 |
20.95 |
12 |
100.0 |
TV 1 Yr |
Expected newsstand sales, ad sales and ancillary product sales over time.
Hiring plans, including salaries and planned raises.
H1 |
|
Month |
# |
Start |
Mos |
% |
Month |
% |
$000 |
H2 |
|
Hired |
|
Sal |
Bet |
Incr |
Incr |
Incr |
Incr |
H3 |
|
|
|
$000 |
Inc |
|
|
|
|
1 |
Production Mgr. |
1/91 |
1 |
60 |
12 |
5 |
|
|
|
2 |
Production Asst. |
1/91 |
1 |
25 |
12 |
5 |
|
|
|
3 |
Secretaries |
|
|
|
|
|
|
|
|
Expenses, including production and distribution, editorial, ad sales,
fulfillment, G&A and any other expense categories.
H1 |
Month |
Occ |
T/E |
Tel/ |
Staty/ |
Insur |
Ac/Lgl |
Cons |
Furn/ |
H2 |
Begin |
Costs |
Costs |
Tel |
Sup/Eq |
Costs |
Fees |
Fees |
Equip |
H3 |
|
$000 |
$000 |
$000 |
$000 |
$000 |
$000 |
$000 |
$000 |
1 |
1/91 |
10.000 |
0.500 |
3.000 |
4.000 |
2.500 |
|
|
2.000 |
2 |
7/91 |
10.300 |
0.515 |
3.090 |
4.120 |
2.575 |
|
|
2.060 |
3 |
1/92 |
10.609 |
0.530 |
3.183 |
4.244 |
2.652 |
|
|
2.122 |
4 |
7/92 |
10.927 |
0.546 |
3.278 |
4.371 |
2.732 |
|
|
2.186 |
|