Co-working Spaces – hotsell Dynamic 10 Year Financial Model

Opening the doors to your own co-working space is a dream come true – especially if you've spent what seems like a lifetime of searching for just the right place to do your own work in. Whether you have this kind of first-hand experience or not, planning a co-working business is exhilarating – after all, you're becoming the host of a hub of creativity and innovation.

This financial model is a flexible tool for owners to calculate financial and operational activities, manage payroll, operating expenses, capital expenditures, and calculate business profitability.

The model includes calculations for the two main revenue streams of co-working spaces (membership plans and space leasing) as well as non-operating revenue from F&B stall rentals and various sponsorships. The model provides 3 different types of Memberships (Monthly, 6 months, Annual), a detailed analysis of revenue per membership type, calculation of payroll, operating expenses, and capital expenditures as well as business financing through debt & equity.

Outputs of the template include monthly and forecasted Financial Statements (3 Statement Model), Annual Direct Cash Flow, Budget vs Actual Variance Analysis, DCF & Payback, Breakeven Analysis, and Investors Returns Waterfall.

A variety of KPIs and Financial Ratios analyzes business performance and the company's results are presented through sophisticated charts & graphs and are summarized on a professional Executive Dashboard.

The model is dynamic and allows users to select the desired forecasted Years (1 to 10). Output Reports & Charts are dynamically updated based on the selected forecast period

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

Inputs:
• General Business Info & Property Metrics (Total SF, Rentable SF, Parking Spaces)
• Allocation based on the SF/Unit for 3 different types of spaces (Co-working, Dedicated Desks, Private Offices, Events Area)
• Assumptions for Membership Revenue (Spaces & Virtual Office), Leasing Revenue (Meeting Rooms, Events, Parking) and Non-Operating Revenue (F&B, Sponsorships)
• Revenue calculation per Membership type (Total Memberships, Monthly Recurring Revenue, Cash Basis Revenue, Deferred Revenue, Renewal Waterfall)
• Payroll, OpEx & CapEx and Depreciation Assumptions and Calculations
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples

Outputs:
• Monthly Financial Statements (3 Statement hotsell Model for Budget & Actual figures)
• Budget vs Actual Variance Analysis (Monthly and Year to Date)
• Dynamic 10 Year Forecasted Financial Statements (3 Statement Model)
• Annual Direct Cash Flow
• Breakeven Analysis
• Summary of various KPIs and Financial Ratios (Memberships, Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
• Business Performance Dashboard
• Business Valuation & Payback period (incl. Discounted Cash flow, Terminal value, Unlevered & Levered Cash Flow)
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Professional Executive Summary (can be used for investment decisions)

Detailed instructions on the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.