Easy Forecast for Capital Expenditures When I was working in airline industry, capital budgeting was a large part of the of budgeting and forecasting process. Makes sense. Lots of airplanes and equipment at the airports. You didn’t want to get your depreciation forecast wrong and mess up the cash flow forecast. Big problems. You spent […]
Excel
Sales Pipeline Conversion Model
Sales Pipeline Conversion Model I have been meaning to create a sales pipeline model for a while. How many of us forecast increases in software bookings based on the number of sales reps, their quota, and achievement levels? I can raise my hand to this question. # of Sales Reps x Quota x % Achievement […]
SaaS Revenue Forecast Model
SaaS Revenue Forecast Model I try to keep my financial statement models as simple as possible. I don’t forecast on one tab, but I also don’t have 30+ tabs of assumptions and formulas. I build my models around the operations of the business and the important metrics. Enough detail to be accurate and supportable but […]
How to Calculate Customer Lifetime Value (CLTV)
What is Customer Lifetime Value (CLTV) Customer Lifetime Value (CLTV) is the revenue or margin that you receive from one customer over the lifetime of that customer. The term “Customer Lifetime Value” is known by many words. It’s also known as Lifetime Value (LTV) or CLTV. In this post, I explain how to calculate Customer […]
How I Forecast Operating Expenses
Forecast Operating Expenses In a previous post, I discussed how I forecast headcount expenses and the related physical heads and benefits. Of course, this is just one piece of the corporate expense puzzle. It is also important to have an easy and quick way to forecast operating expenses without hard coding numbers month-by-month. Excel Template […]
How to Create the Dreaded Excel Waterfall Chart
Excel Waterfall Chart Somewhere along the line, we’ve all been asked to create an Excel waterfall chart for a Board or management presentation. Waterfall charts are a very “simple” and powerful visual method to present year-over-year changes or whatever time period you are measuring. Presenting variances via a bunch of numbers on a spreadsheet can […]