Enterprise SaaS Financial Model Training Videos

Model architecture

Forgotten which sheet is which?

There is a very quick overview of each of the sheets in the Enterprise SaaS 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

• 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”.

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

• Format: We set out the dates for your actuals and your forecast. We also deal with currencies and then the tax you have to pay up once you make money
• P&Ls: There are three sheets:
  • Actual: These are the numbers you have to date
  • Forecast: These are your forecasts which the model calculates
  • Combined: This is your actual and forecasts elegantly combined
• D&A / tax: We forecast your depreciation, amortisation as well as your tax situation. We use learnings from investment banking, There’s just enough to really get your nerd on, you can also make it easy by using the defaults.

Overview

• I invented a structure that allows you to update the model with Actuals for 11 months without having to change a tonne in the model (joy!)
• You input your financials in here
• Only two numbers (clients/revenue) filter into the forecast model

Overview

• If you have a lot of annual contracts then you need to decide how to forecast them
• This sheet lets you deal with your annual contracts
• This may mean nothing to you, but if you have a lot of ARR you’ll know why this matters!

Overview

• Very little to do in this sheet other than set some assumptions such as discounts

Overview

• Nothing to do in this sheet other than look at it.

Note

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

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

• KPI: A mass of KPIs for your whole business, all in one place
• P&L for deck: You can use this as a template for something your could copy/paste into a pitch deck. Change as you want, nothing else links to it
• Source and use: Use this to calculate how much you need to raise and what your runway is. You can also use the charts for your deck
• Charts – general: Visually see what is going on for your expenses and the like
• Charts – SME: Charts related to the SME part of the business. The enterprise charts are in another sheet

Overview

• The KPI sheet is super useful to understand if your model and business makes sense.

Note

• I’m reusing an old video from the original course. In the basic version, I’m going to talk about thinking about using KPIs. The old one is a bit nerdier.

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.

Note

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

Overview

• They are charts 😉

Note

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

Overview

• Another ways at looking at revenue.

Note

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

Overview

• ENT – Graphs: These are charts based off pivot tables you can use. I use them in pitch decks to show different scenarios
• ENT – Rev Summary: Here we have some key mapping inputs (start here) and you can review the outputs of your calculations
• ENT – Rev assumptions: We create all the variables for the types and permutations of your enterprise offerings
• ENT – Rev forecast: Here you figure out how much money you are going to make!
• ENT – Staff – Tech: Figure out what your staffing requirement will be to service all those clients that are going to pay you! I actually use this as an operational tool

Overview

• MRR & Cust Summary: A summary of your MRR and Customer calculations (The calculations in the monthly and annual sheets are long)
• SME Pricing: Input your pricing assumptions for revenue. Pick from different business models
• SME – Expansion Revenue: Calculate the expansion revenue using either by additional seats, or new modules basis
• SME Prof Services: If you have professional services, calculate the cost and revenue. Can use if you want to have onboarding costs alternatively
• SME Conversion assump: All the assumptions that drive your revenue for SME revenue calculations
• SME Calcs – Monthly: Calculate the normal, monthly portion of your MRR/Bookings for SME revenue
• SME Calcs – Annual: Calculate the annual, up-front payment portion of your MRR/Bookings for SME revenue

Overview

• SME – Expansion revenue: You have two methods to calculate the expansion revenue. One is module based (sell new features) and the other is seats (but more licences). You can pick
• SME Pro Services: To do implementations for SME customers you hire people and ideally make a margin. Keep this to below 20% of your total revenue

Overview

• This is one of the most important sheets in the model
• Pay a lot of attention to it

Overview

• Set the pricing in your model

Note

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

Overview

• If you have expansion revenue, it is dealt with in here

Note

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

Overview

• If you have professional services, you include them in this sheet

Note

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

Overview

• All calculations. You can ignore unless you want to learn.

Overview

• Your staff make your business happen. There is a combination of manual inputs and automated calculations. The automated calculations for sales and support staff are on other sheets and link into the ‘staff’ sheet which acts like the hub.
• At the bottom of the sheet we have your general office running costs. These are done really simply, so there is no messing around thinking about how much pencils costs, or your specific SaaS tools you pay for. We just append an approximate monthly value to categories of staff, and simple onboarding costs (for CAPEX).
• Staff: Your staff hub. You add in the actual staff you have and then the automated calculations link in

Overview

• Expense calcs: These are just your payment costs and tech (server /email) expenses. They purely scale to your customers/transactions. We do not link enterprise to these as I presume you are talking big money and your client will wire you it

Overview

• Sales staff: We have both the calculations for your SME and Enterprise sales staff. We make assumptions on their targets and then compare that to the revenue to figure out how many people you need. This links to the Staff sheet
• SME – support staff: You can model for customer support, customer success and professional services. We just figure out what level of support is needed depending on the number of customers you have

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.

Note

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

Overview

Each marketing activity drives traffic to your site. We have a core marketing sheet where all the traffic is driven to and assumptions on traffic to trial are decided. This then feeds to your conversion assumptions sheet where you convert trial to paid.

• Marketing: Decide on your traffic to trial conversion
• Paid & organic: You get organic traffic. You pay money on adwords etc
• Email: You do email marketing to people to get traffic
• Blog & Social: You do blogger marketing and social media… stuff
• Channel sales: You have channel partners. These are only assigned to the sales supported trials

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

• Some companies have channel partnerships on a CPA/CLP basis. Set how you acquires customers in this sheet
• Note that this sheet is dealt with a little differently than others due to the CPA part (It sort of skips a normal funnel… and yes, it was a pain to figure out the logic)

Note

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

Overview

• I made a quick video to generally explain the approach I would take to filling in this model.
• You can watch this video if you want to get a 40,000 feet on how this model generally works.