The quick model produces the same quality of product as the other models but it has been designed so that you can literally produce the end product in a few minutes. The way we accomplish this is to use assumptions about revenues and expenses where in the other models you can build detailed revenue and expense models. For instance, in the Quick model we ask you how much revenue growth per year that you are estimating. For each year you can use a different growth percentage and in the first year you can also project monthly growth by percentage per month. Accordingly, for each year you can project the direct Cost of Goods as a percentage of sales. As volumes increase, for instance, you will probably be able to get better margins so you would reduce the COGS each year. Also, if you look at the sample outputs you will see three basic groups of expenses. We usually call these General & Administrative, Sales and Marketing and Research & Development but they could be labeled any name desired. In the Quick Model these expenses are reflected as a percentage of sales, whereas in the other models there are detailed schedules for each of these expense categories.
The Custom Model delivers the same quality as the Quick Model but you have unlimited flexibility in the creation of Revenue and Expense categories. For example, in the Quick Model revenues are calculated as a percentage of growth compared to the previous year. In the Custom Model you can develop much more sophisticated projections, such as in the case for example, of a company that will project revenue based on how many sales people they can train and hire. In this case, each time they hire a new sales person, their revenues would increase.
This is just one example but there are many variations and ways to calculate revenue growth. The same is true for all of the expense categories and the Custom Model allows you build detailed expense schedules so that you can show line item details for every month for five years instead of reflecting expenses as a percentage of sales. Also with the Custom Model is the Payroll section which allows you to specify various job types and each individual within those types. You can project when you will hire each person, the amount they will be paid and the system will calculate raises, fringe benefits and taxes and then project them in the appropriate month and year.
The Franchise Model gives you all of the flexibility of the Custom Model with added features for those businesses dependant on multiple locations which migh be owned internally or franchised or a combination of both. In situations such as restaurants where the plan is to open multiple locations, this model is very easy to project based on how many locations you plan to open and when. Each location can be specified as being corporate owned, a franchise or jointly owned by the parent corporation and an owner/operator. Revenues or franchise fees are automatically calculated and presented within the parent corporation numbers as well as being presented for a single location.
Up to three models can be projected for the additional locations so in the case where there might be different models such as small, medium and large stores or outlets. In the case of restaurants for instance, you might have a carry out only, a sit down restaurant and a combination of both. The deck in this model has plenty of added slides so you can determine which ones are right for your particular presentation.