Ecommerce Financial Model Training Videos

Model architecture

Forgotten which sheet is which?

There is a very quick overview of each of the sheets in the e-commerce model. I’ve mapped them out just in case it is useful when checking out the videos!

CHECK OUT THE SHEETS

Overview

• The first video in the SaaS financial model explains the basic modelling concepts.
• Boring I know, but important to understand exactly what to do and what not to do as it will save you time in the long-term!

This includes:

• Formatting
• Sparklines
• Columns
• Grouping
• Navigation

Overview

• We are going to go through the model at a high level, but enough to have an idea of what is going on.
• Next, we are going to run through the basics of the model that I find some people get confused about. These are things like grouping, turning on automatic calculations, ensuring you use all threads to enable faster calculations, column structure and flows between sheets.
• Even if you are a CFO or self-proclaimed Excel nerd, I still recommend just going through this video.

Overview

• In this 40-minute video, I’m going to give you my thoughts on how I would approach filling in the model. If you have never used a huge template like mine or have much financial modelling experience, this will really help you to understand what you should be doing.
• It’s important to internalise that this model will feel overwhelming to you at the start. You just need to start and keep learning more details over time. Eventually, it will make more sense to you. Understand that my models have facilitated learning experiences, not a destination you want to get to ASAP because “an investor wants one”.
• As I commence in the video, the absolute first thing to do is to read my blog on how to fill in a financial model template. I don’t care how senior you are, you’ll learn at least one new thing. You have to do the exercise that I explain in order to triangulate (as I will constantly reiterate to you in the videos).

  Read

• I highly recommend reading this blog if you have not already How to fill in a financial model template
• I don’t care how senior you are, you’ll learn at least one new thing. You have to do the exercise that I explain in order to triangulate (as I will constantly reiterate to you in the videos).

Overview

• Learn how to use basic vs. detailed functionality built into the model
• I give you options depending on the level of detail that you want to get into

Overview

• We are going to understand the three profit and loss sheets, the pitch deck sheet, and the depreciation and tax sheet.
• The annual sheet is the most work. The forecast sheets only have around 5 assumptions to fill in. The combined sheets have none.
• The pitch deck sheet is an example of what you ‘could’ put in your deck. You can delete it for all I care (There will be no consequence, so you can delete it).
• Finally, the depreciation and tax sheet enables you to do funky calculations assuming you are profitable. The title says D&A and tax. There is no amortisation in my model because it is irrelevant to startups. I’m just used to calling it D&A because I was a banker. You don’t have to do anything if you don’t understand the sheet.
• If you want to learn more, see the SaaS video next:

Overview

• The depreciation and tax sheet enables you to do funky calculations assuming you are profitable.
• The title says D&A and tax. There is no amortisation in my model because it is irrelevant to startups. I’m just used to calling it D&A because I was a banker.
• You don’t have to do anything if you don’t understand the sheet.

Note

• I’m reusing an old video from the original course.

Overview

• How are you going to use the funds? What is your runway? We are going to go through this sheet briefly so you understand how to use it. When you have completed your model, you can use this sheet to calibrate the raise you need and runway.
• If you want a ‘little’ more detail you can read and watch the video my runway calculator page.

Overview

• We are going to learn about the importance of the KPI sheet in the model. As an investor, this is a sheet I would certainly look at first. You will use it repeatedly to check you are on the right path, and at the end to ensure your assumptions coherently make sense.
• We will also go through the charts sheet. They’re just charts so not much to learn! You use them to ensure that you are trending in the right direction.

Overview

• This is a workhorse sheet to calculate your customers and revenues.
• You are going to set assumptions for conversions from registrations to customers. It’s not the easiest set of assumptions to get your head around!

Overview

• This sheet is about setting your SKU (Stock Keeping Unit) assumptions.
• How much do you charge and what is the cost basis for your three categories of products?

Overview

• The staff sheet is the core expense sheet in the model. It enables you to do quite a lot, but also simply. Most of the sheet is for the various departments you have.
• The end allows you to add the various costs that you will have, which are mainly staff-related. Included are also the other general costs.

Overview

• This sheet comprises of automated staff calculations and your other costs.
• You will be able to set assumptions for variable staff (customer care, warehouse, photographers) so you can increase those staff regardless of whether you change to a bull or bear set of assumptions.
• You will also map out your logistics costs (shipping and return, warehouse etc) as well as your payment and tech costs. 

Overview

• We are covering all the marketing sheets in the model in this video (I couldn’t be arsed to deal with making 6).
• If you want to see some more detailed insight into the sheets (for example blog and social), you can look at the ones done for the SaaS financial model. The marketing sheets across all my models are basically exactly the same.
• See the section below:

Overview

• We deal with the main marketing sheet

Note

• I’m reusing an old video from the original course.
• I built in a market saturation function which most people won’t use. If you really need me to explain, ask.

Overview

• Core marketing sheet if you pay to acquire customers
• Also simple assumptions for organic users

Note

• I’m reusing an old video from the original course.

Overview

• If you do email marketing as a user growth channel

Overview

• Sheet for blogging and social media user acquisition.

Note

• I’m reusing an old video from the original course.

Overview

• This is the last video.
• I’ve sort of covered this in previous videos, but we will briefly go through some sense checks you should do to ensure you don’t send something to investors that make you look dumb (assuming you are raising- the model isn’t just for VC-addicted startups).