Scaling out a services business such as a plumbing business involves quite extensive financial planning. You need to account for truck purchases, plumber wages, payroll taxes, variable costs related to your total headcount/truck count, and fixed overheads. This financial model lets you set key assumptions for all of those items and create a comprehensive financial forecast.
Create a 10-year financial statement and key metric forecast that includes monthly and annual Income Statement, Balance Sheet, and Cash Flow Statement.
All input cells in the spreadsheet are clearly marked and the tabs that contain input cells are all light yellow. As you are going through the initial overview of the sheet, be sure to enter your own assumptions for all relevant areas and zero out anything that is not relevant for your scaling strategy of the plumbing business.
Note, this model would fit an electrician business endeavor pretty closely as well.
Revenue Assumptions:
- Configure up to three general service lines that your plumbing business will provide (tier 1/2/3) These are different based on the level of skill required by the plumbers providing the service and the types of services offered. They will have differing revenue factors, variable costs, plumber wages, benefits, and more that can all be configured.
- Define starting job completion count per month
- Define monthly growth of jobs completed and adjust yearly
- Define average ticket value per tier
- Define average hours required to complete each job (will drive wages)
- Define average jobs a given plumber in each tier can complete each month (this will drive scaling headcounts / truck counts required)
Expense Assumptions:
- For each tier, define hourly wage of plumbers
- Average equipment / material cost per job
- Other variable costs per plumber headcount / truck count per month
- Insurance cost per truck per month
- Maintenance cost per truck per month
- Payroll Taxes/Benefits per tier
- % of revenue paid by credit cards and fees therein
- Fixed cost schedule (slots for sales and marketing and general and administrative)
Output Reports (Up to 10 Years Each):
- Financial Statements (three statement model) monthly and annual
- Pro forma detail monthly and annual
- DCF Analysis (for investor / owner / investor group) IRR, ROIC annual
- Annual Executive Summary
- Key financial metric visualizations
- CapEx Schedule
- Debt Schedule