Podcast Channel Financial Model (10 Year Financial Forecast)

General Assumptions

Starts with basic model questions on the start date of the model, tax rate assumption, working capital assumptions, and funding assumptions.

Revenue and Direct Cost Assumptions

Revenue assumptions are the anticipated factors that drive a company’s income generation over a specific period. These assumptions form the basis for financial projections and are crucial for planning and decision-making. In our model, we have included detailed inputs by Revenue category. We have included monthly input fields for the Channel, including # of Subscribers, Subscriber growth %, # of Subscribers churned, # of Recordings in the Channel Catalogue, # of Downloads / Listens, Listening Duration time (hours), # of Impressions, Ad Revenue, Cost Per Thousand Impressions (CPM) $ rate, Affiliate Marketing Revenue and Merchandise or Product Sales Revenue.

We have also included Direct Costs of running a Podcast Channel, including Content Creation Costs, Marketing & Promotion Costs, Editing & Post-Production Costs, and Hosting & Distribution Costs, all as a % of Revenue.

Operating Expenses Assumptions

Operating expense assumptions are typically based on historical data, industry benchmarks, market trends, and management’s judgment. They are crucial for estimating the business’s total cost and determining profitability. Like revenue assumptions, it’s essential to regularly review and adjust operating expense assumptions to reflect changes in the business environment and ensure the accuracy of financial forecasts. In our model, we have included detailed inputs on Staff costs (Owner, Other) and Typical Operational Expenditure items likely for a Podcast Channel business, including Studio Rental costs, Software, Music and Licensing Fees, Subscription and Service costs, Legal and Accounting fees, Website and Other costs. However, you can add any other expenses relevant to your business to this sheet.

Funding, Capex, and Other Assumptions

Capital expenditure (Capex) assumptions refer to the anticipated investments a company plans to make in long-term assets, such as property, plant, equipment, and technology, over a specific period. These assumptions are crucial for financial planning, budgeting, and forecasting, impacting the company’s cash flow, profitability, and growth prospects. We have included an ‘Initial Costs’ schedule, which shows the main costs of starting a Podcast Channel business, including Camera, Audio Equipment, Office Equipment, Lighting Equipment, and Other Costs.

We have also included a Capital Structure assumption section (showing the % of Initial Costs funded by Equity vs Debt).

A Fixed asset schedule has been included, showing the main items likely to be on a company’s capex sheet, the total costs, and the assumed useful life of each asset.

Monthly Projections (10-year period)

We have broken down projections Month-by-month when projecting income statements, balance sheets, and cash flow statements. The monthly forecasts are provided over a 10-year time frame. This is particularly useful for businesses looking at month-on-month trends and insights, which leads to better decision-making and budgeting should there be a need to either raise more capital, pursue growth opportunities from excess capital, or pay down interest-bearing debt. Monthly projections also help a business ascertain what performance may be seasonal in nature when looking at growth projections on a month-over-previous-years-month basis.

Annual Projections (10 Year period)

The model has annualized financial projections of income statements, balance sheets, and cash flow statements over a 10-year time frame. Annual projections provide an excellent overview of expected revenues, expenses, profits, cash flow, and other key financial metrics for the upcoming year. Yearly predictions are essential for any company’s strategic planning, budgeting, fundraising, and performance evaluation at any stage of its business cycle.

Podcast Channel Financial Metrics & Other Metrics

Podcast Channel Financial metrics and Ratios have been included, which highlights # of Subscribers, Subscriber growth %, # of Subscribers churned, # of Recordings in the Channel Catalogue, # of Downloads / Listens, Listening Duration time (hours), # of Impressions, Ad Revenue, Cost Per Thousand Impressions (CPM) $ rate, Affiliate Marketing Revenue and Merchandise or Product Sales Revenue, Direct Costs and Operational Costs as a % of Revenue, Profitability Ratios – all over a 10-year time frame.

Summary of Financial Statements (10-Year period)

Summarized Financial Statements over a 10-year time frame help for better snapshots of financial performance. Income Statement, Balance Sheet, and Cash Flow Statement are all provided.

Charts

Charts available including Profitability Margins (Gross Profit Margin, EBITDA Margin, and Net Profit Margin), Revenue vs Direct Costs Projections, Revenue by Category, and Cashflow Summary

DCF Valuation

We have included a Discounted Cash Flow (DCF) Valuation model showing the Business’s Net Present Value (NPV) based on a series of growth rates and assumptions. Weighted Average Cost of Capital Assumptions includes Risk-Free rate, Beta, Risk Premium, and Equity Risk Premium. A DCF valuation is a method used to estimate the value of an investment, business, or asset by discounting its expected future cash flows to present value. It is based on the principle that the value of an investment is determined by the present value of its future cash flows. The DCF valuation technique is widely used in finance, investment analysis, and corporate finance for making investment decisions, determining the fair value of securities, and evaluating the worth of businesses.

Depreciation Schedule

The detailed depreciation schedule shows additions/disposals to the business’ fixed asset register. Sections included Camera, Audio Equipment, Office Equipment, Lighting Equipment, Others.

Debt Schedule

Debt schedule provided with interest rate assumptions and payback period assumptions included.

Equity Schedule

Equity schedule provided with assumptions on all investments into the business by investors or owners.