3 KiB
3 KiB
Section 9 | Lesson 49 - Build Financial Statements for Private Companies
Notes
forecasts
- project 3-5 years
- start with sales projections
- called "pro forma"
definitions
- ASP, Average Selling Price
\[ \text{ASP} = \frac{\text{Total Revenue}}{\text{Total Units Sold}} \]
- TAM, Total Adjustable Market
\[ \text{TAM} = \text{Number of Potential Customers} \times \text{ASP} \]
-
Year over Year Growth \[ \text{Year Over Year Growth (\%)} = \left( \frac{\text{Units Sold in Current Year} - \text{Units Sold in Previous Year}}{\text{Units Sold in Previous Year}} \right) \times 100 \]
- For the first year (2025): No growth is calculated because there is no previous year.
-
For subsequent years:
- Subtract the units sold in the previous year from the units sold in the current year.
- Divide the result by the units sold in the previous year.
- Multiply by 100 to express it as a percentage.
modeling a company
-
start with TAM
- how much %
- how much time
list assumptions
- start with sales
Market Analysis Table
| Number of Potential Customers | 500,000 | ||
| ASP (Average Selling Price) | ₪100,000.00 | ||
| TAM (Number x ASP) | ₪50,000,000,000.00 | ||
| Percent Market Share (Year 10) | 10% | ₪5,000,000,000 | |
| Units by Year 10 | 50,000 |
Sales Growth Table
| Year | Title | Units Sold | Year Over Year Growth % | Revenue | Notes |
|---|---|---|---|---|---|
| 2025 | units in year 1 | 20 | 0.0 | ₪2,000,000.00 | |
| 2026 | units in year 2 | 200 | 900.0 | ₪20,000,000.00 | |
| 2027 | units in year 3 | 4000 | 1900.0 | ₪400,000,000.00 | |
| 2028 | units in year 4 | 8400 | 110.0 | ₪840,000,000.00 | |
| 2029 | units in year 5 | 15540 | 85.0 | ₪1,554,000,000.00 | |
| 2030 | units in year 6 | 26418 | 70.0 | ₪2,641,800,000.00 | |
| 2031 | units in year 7 | 35664 | 35.0 | ₪3,566,400,000.00 | |
| 2032 | units in year 8 | 44580 | 25.0 | ₪4,458,000,000.00 | |
| 2033 | units in year 9 | 49038 | 10.0 | ₪4,903,800,000.00 | |
| 2034 | units in year 10 | 51490 | 5.0 | ₪5,149,000,000.00 |