Spartina Internet Business Model

8/2/2019 Spartina Internet Business Model

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Welcome to the Spartina Internet Business Financial ModelCopyright 2009 Spartina Inc.

For complete information about this spreadsheet, please download our document, SIBFM

Instructions.doc. In this workbook, cells highlighted in yellow are places for you to enter data. There

are comments associated with some of the cells to guide your input. The recommended order for

com letin the worksheet is as follows:

Step 1: Forecast your traffic on Traffic Forecast sheet (Row 4 all across.)

Step 2: Go to Revenue and fill out the numbers.

Step 3: Think about how many people you will need, forecast Headcount

Step 4: Go to the Budget sheet and estimate your other expenses

Step 5: Complete Cash Waterfall and update monthly

Step 6: Go to line 10 ofRoll-up and add growth rates.

Send feedback via www.spartina.com - helping Internet entrepreneurs succeed


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Your Company Name

Headcount - Confidential Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Mon

CEO $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $

CFO

CTO & Lead Developer $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Developer

Dir. Engineering

Front End DeveloperBusiness Dev't & Sales

Client Support

VP Marketing

Dir Product Mgmt $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Graphic design

$17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $

Bonus reserve 5.00% $875 $875 $875 $875 $875 $875 $875 $875 $875

Total with bonus $18,375 $18,375 $18,375 $18,375 $18,375 $18,375 $18,375 $18,375 $18,375 $

Taxes & benefits 11.00% $2,021 $2,021 $2,021 $2,021 $2,021 $2,021 $2,021 $2,021 $2,021

TOTAL $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $

Headcount 3 3 3 3 3 3 3 3 3

Instructions

4) Proceed to the Budget tab

1) In column A list your employess by title or their name

2) Enter monthly gross (pre-tax) salary information in the gray cells

3) This information will automatically roll-up into the Budget tab


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Your Company Name

FINANCIAL PROJECTIONS

January February March April May June July A

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 M

REVENUE All Revenue (tab Rev) $77 $153 $383 $789 $1,578 $2,366 $3,260 $

STAFF EXPENSES All Headcount (Heads) $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $20,396 $

CONSULTANTS Finance $250 $250 $250 $250 $250 $250 $250

Legal $500 $500 $500 $500 $500 $500 $500

Technology $500 $500 $500 $500 $500 $500 $500

Content & Editorial $500 $500 $500 $500 $500 $500 $500

Website Design $500 $500 $500 $500 $500 $500 $500

Marketing (SEO, PR) $500 $500 $500 $500 $500 $500 $500

Other $500 $500 $500 $500 $500 $500 $500

$3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $

TOTAL STAFF & CONSULTANTS $23,646 $23,646 $23,646 $23,646 $23,646 $23,646 $23,646 $

MARKETING Marketing (Paid traffic) $100 $100 $100 $200 $200 $300 $300

OPERATIONS Hosting Provider $100 $100 $100 $100 $100 $100 $100 Phone $125 $125 $125 $125 $125 $125 $125

Rent $500 $500 $500 $500 $500 $500 $500

Office Internet $150 $150 $150 $150 $150 $150 $150

SaaS $150 $150 $150 $150 $150 $150 $150

Software/License Renewal $50 $50 $50 $50 $50 $50 $50

Equipment (Hardware) $250 $250 $250 $250 $250 $250 $250

Supplies, Office Furn. $50 $50 $50 $50 $50 $50 $50

Travel $500 $500 $500 $500 $500 $500 $500

Conference/Tradeshows $500 $500 $500 $500 $500 $500 $500

Dues/Subscriptions $50 $50 $50 $50 $50 $50 $50

Insurance $50 $50 $50 $50 $50 $50 $50

Petty Cash/Entertainment $150 $150 $150 $150 $150 $150 $150

$2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625

CAPITAL EXPENSES DC Equipment $0 $0 $0 $0 $0 $0 $0

TOTAL EXPENSE $26,271 $26,271 $26,271 $26,271 $26,271 $26,271 $26,271

GROSS PROFIT (Sales - Marketing) -$24 $53 $283 $589 $1,378 $2,066 $2,960

NET PROFIT -$26,195 -$26,118 -$25,889 -$25,483 -$24,694 -$23,905 -$23,011 -

Interest Earned 0.00% $0 $0 $0 $0 $0 $0 $0

New Capital Interest $0 $0 $0 $0 $0 $250,000 $0

CASH ON HAND $100,000 $73,805 $47,687 $21,798 -$3,684 -$28,378 $197,717 $174,706 $


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Your Company Name

Traffic Waterfall Forecasting Model Overview

Traffic January February March April May

Plan 500 1,000 2,500 5,000 10,000

January 400 1,000 2,500 5,000 10,000February 2,500 5,000 10,000

March 5,000 10,000

April 10,000

May

June

On this sheet, the vertical column is what you think

will happen in a month, and the last value in each

column is what actually happened. Month by month,

you enter the actually data and reforecast the

remaining months. As the numbers change here, they

will affect the Meta Revenue worksheet.


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June July August September October November December

15,000 20,000 25,000 35,000 50,000 75,000 100,000

15,000 20,000 25,000 35,000 50,000 75,000 100,00015,000 20,000 25,000 35,000 50,000 75,000 100,000

15,000 20,000 25,000 35,000 50,000 75,000 100,000

15,000 20,000 25,000 35,000 50,000 75,000 100,000

15,000 20,000 25,000 35,000 50,000 75,000 100,000

20,000 25,000 35,000 50,000 75,000 100,000

July 25,000 35,000 50,000 75,000 100,000

August 35,000 50,000 75,000 100,000

September 50,000 75,000 100,000

October 75,000 100,000

November 100,000

December


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Total % of Plan

339,000 100.00%

338,900 99.97%337,900 99.68%

335,400 98.94%

330,400 97.46%

320,400 94.51%

305,400 90.09%

285,400 84.19%

260,400 76.81%

225,400 66.49%

175,400 51.74%

100,400 29.62%

400 0.12%


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Your Company Name

META Revenue

January February March April May June July August September O ctober Nove

Traffic (Visitors) 500 1,000 2,500 5,000 10,000 15,000 20,000 25,000 35,000 50,000 75,

Pageviews/Visitor 2 2 2 3 3 3 4 4 4 5 5

Pageviews (PV) 1,000 2,000 5,000 15,000 30,000 45,000 80,000 100,000 140,000 250,000 375

Clickthrough Rate/Visitor

Affiliate Network 0.50% 0.50% 0.50% 0.75% 0.75% 0.75% 1.00% 1.00% 1.00% 1.25%

AdSense 0.50% 0.50% 0.50% 0.80% 0.80% 0.80% 1.00% 1.00% 1.00% 1.20%

Subscription 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%

E-commerce 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%

Total CTR/Visitor 1.20% 1.20% 1.20% 1.75% 1.75% 1.75% 2.20% 2.20% 2.20% 2.65%

CPM (% Pages with Ads) 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 5

Revenue Rates

Affiliate Network $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10

AdSense $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25

CPM $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00

Subscription $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $

E-commerce $49.00 $49.00 $49.00 $49.00 $49.00 $49.00 $49.00 $49.00 $49.00 $49.00 $

Revenue

Affiliate Network (V) $0.25 $0.50 $1.25 $3.75 $7.50 $11.25 $20.00 $25.00 $35.00 $62.50 $

AdSense (PV) $1.25 $2.50 $6.25 $30.00 $60.00 $90.00 $200.00 $250.00 $350.00 $750.00 $1,1

CPM (PV) $1.00 $2.00 $5.00 $15.00 $30.00 $45.00 $80.00 $100.00 $140.00 $250.00 $3

Subscription (V) $49.50 $99.00 $247.50 $495.00 $990.00 $1,485.00 $1,980.00 $2,475.00 $3,465.00 $4,950.00 $7,4

Ecommerce (V) $24.50 $49.00 $122.50 $245.00 $490.00 $735.00 $980.00 $1,225.00 $1,715.00 $2,450.00 $3,6

Total revenue $77 $153 $383 $789 $1,578 $2,366 $3,260 $4,075 $5,705 $8,463 $1

Revenue per visitor $0.15 $0.15 $0.15 $0.16 $0.16 $0.16 $0.16 $0.16 $0.16 $0.17

Paid Traffic Budget $100 $100 $100 $200 $200 $300 $300 $500 $1,000 $1,000 $

Cost per visitor (Paid Traffic) $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30

Paid visitors 333 333 333 667 667 1,000 1,000 1,667 3,333 3,333

% paid 67% 33% 13% 13% 7% 7% 5% 7% 10% 7%

% free 33% 67% 87% 87% 93% 93% 95% 93% 90% 93%

Blended cost/visitor $0.20 $0.10 $0.04 $0.04 $0.02 $0.02 $0.02 $0.02 $0.03 $0.02

NET -$24 $53 $283 $589 $1,378 $2,066 $2,960 $3,575 $4,705 $7,463 $1

NET PER VISITOR -$0.05 $0.05 $0.11 $0.12 $0.14 $0.14 $0.15 $0.14 $0.13 $0.15

NET MARGIN -31% 35% 74% 75% 87% 87% 91% 88% 82% 88%


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Your Company Name

REVENUE

Year 1 Year 2 Year 3

Average monthly visitors 28,250 150,000 200,000

Average revenue per visitor $0.16 $0.20 $0.25Total revenue $54,494 $360,000 $600,000

EXPENSES 25.00% 30.00%

Heads 3.2 4 5.2

Headcount $244,755.00 $305,943.75 $397,726.88

Consultants $39,000.00 $48,750.00 $63,375.00

$0.00

Marketing $5,800.00 $7,250.00 $9,425.00

$0.00

Operations $31,500.00 $39,375.00 $51,187.50

Capital Equipment Purchases $0 $0 $0

Total expenses $321,055 $401,319 $521,714

NET $(266,561) $(41,319) $78,286

Margin -489% -11% 13%

Blended cost per visitor $0.0171 $0.0040 $0.0039

Net per visitor $0.1436 $0.1960 $0.2461

Margin per visitor 89% 98% 98%

A portion of this roll-up data goes into the executive summaries that you might use for investor


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Year 4 Year 5

250,000 500,000

$0.35 $0.40$1,050,000 $2,400,000

35.00% 40.00%

7.02 9.828

$536,931.28 $751,703.79

$85,556.25 $119,778.75

$0.00 $0.00

$12,723.75 $17,813.25

$0.00 $0.00

$69,103.13 $96,744.38

$0 $0

$704,314 $986,040

$345,686 $1,413,960

33% 59%

$0.0042 $0.0030

$0.3458 $0.3970

99% 99%

presentations.


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Your Company Name

Cash Waterfall Forecasting Model Overview

January February March April May

Plan $25,000.00 $20,000.00 $15,000.00 $10,000.00 $5,000.00

January $20,000.00 $15,000.00 $10,000.00 $5,000.00February $15,000.00 $10,000.00 $5,000.00

March $10,000.00 $5,000.00

April $5,000.00

May

June

You start with your projections. Then each month, take the cash figure

from your accounting system, and enter the real cash that has gone out.

(This doesnt account for the accruals.)

The top line represents the plan or forecast for year, and it wont change.

By looking at this waterfall sheet, you can compare actuals to the plan.


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June July August September October November

$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

$250,000.00 $225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

$225,000.00 $200,000.00 $175,000.00 $150,000.00 $125,000.00

July $200,000.00 $175,000.00 $150,000.00 $125,000.00

August $175,000.00 $150,000.00 $125,000.00

September $150,000.00 $125,000.00

October $125,000.00

November

December


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December Total % of Plan

$100,000.00 $1,300,000 100.00%

$100,000.00 $1,275,000 98.08%$100,000.00 $1,255,000 96.54%

$100,000.00 $1,240,000 95.38%

$100,000.00 $1,230,000 94.62%

$100,000.00 $1,225,000 94.23%

$100,000.00 $975,000 75.00%

$100,000.00 $750,000 57.69%

$100,000.00 $550,000 42.31%

$100,000.00 $375,000 28.85%

$100,000.00 $225,000 17.31%

$100,000.00 $100,000 7.69%

$0 0.00%

Spartina Internet Business Model

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