ERP Software
Financial Model

What are the key revenue streams?

Your revenue model is built on three pillars: monthly subscriptions, one-time setup fees, and transaction-based pricing. In 2026, subscriptions range from the $299/month 'Core' plan to the $1,999/month 'Enterprise' plan. On top of that, you charge one-time setup fees between $1,500 and $7,500, plus a small per-transaction fee that adds a usage-based component to your income. This blended model captures both recurring and one-time value from customers.

How is customer acquisition modeled?

Customer growth is driven directly by your marketing budget and acquisition efficiency. In the first year (2026), you're projected to spend $150,000 on marketing with a Customer Acquisition Cost (CAC) of $2,500, which yields 60 new customers. The model assumes your CAC will improve over time, dropping to $1,800 by 2030, while your trial-to-paid conversion rate climbs from 25% to 40%. The key lever here is making your marketing spend more effective as you scale.

What is the path to profitability?

The business is projected to reach its breakeven date in January 2028, which is 25 months after launch. You'll navigate early losses, with a negative EBITDA of -$458k in Year 1 and -$181k in Year 2, which is typical for a high-growth software company investing in product and sales. The business turns profitable in Year 3 with a projected EBITDA of $730k, scaling rapidly to over $5.3 million by Year 5 as revenue growth outpaces fixed costs.

What are the major operating costs?

Your cost structure is dominated by payroll, followed by marketing spend and direct hosting costs. In 2026, your Cost of Goods Sold (COGS), which includes cloud infrastructure and third-party APIs, runs at 9.0% of total revenue. Variable costs like sales commissions and payment processing add another 10%. The rest is largely fixed overhead, including $9,200 in monthly expenses for things like rent and software, plus your staff salaries. As you grow, your direct costs become more efficient, dropping to just 5.5% of revenue by 2030.

What does the hiring plan look like?

Your staffing plan starts lean and scales with revenue. In 2026, the team consists of 3.5 full-time equivalents (FTEs), including a full-time CEO and Lead Engineer, plus fractional roles in sales, marketing, and customer success. The largest salary expense is the Lead Software Engineer at $140,000. The plan models significant growth in the engineering and sales teams, with the Lead Engineer role expanding to 3.0 FTEs and the Sales Manager role growing to 2.5 FTEs by 2030, reflecting a focus on product development and market expansion.

How much capital is required?

You'll need to fund $95,000 in one-time capital expenditures (CAPEX) in the first six months of 2026 to cover essentials like initial software licenses ($25k), IT equipment ($18k), and legal setup ($8k). The cash flow analysis Excel shows your cash balance hitting a low point of $158k in January 2028, right as you hit breakeven. Managing your cash burn through the first two years of negative EBITDA is defintely the most critical financial challenge. Finance: draft a 13-week cash flow forecast to monitor this closely.

How do the financial statements connect?

This is a fully integrated three-statement financial model, meaning the Income Statement, Cash Flow Statement, and Balance Sheet all work together. For example, the net income from your P&L flows into cash flow from operations and retained earnings on the balance sheet. This integrated structure provides a complete financial picture, showing the journey from a Year 1 EBITDA loss of -$458k to a strong Return on Equity (ROE) of 8.09. It's the comprehensive view investors require to truly understand the mechanics of your business financial planning.

This ERP financial model is built in Excel, so every single assumption is 100% editable to match your specific business plan. You can easily adapt the pre-built framework for revenue streams, operating costs, and hiring to create a financial projection template that truly reflects your strategy, saving you dozens of hours.

Adjust pricing tiers and sales mix

Modify customer acquisition cost (CAC)

Update salary and hiring timelines

Input your own funding and CAPEX

Get a clear, long-term view of your business with detailed five-year forecasts for all three financial statements. This long-range financial projection template helps you anticipate future cash needs, model different growth scenarios, and make smarter strategic decisions for your enterprise resource planning software.

Income Statement projections

Balance Sheet forecasts

Cash Flow Statement analysis

Annual summaries and charts

The model provides a clear breakdown of both one-time startup costs and recurring operational expenses. We've included a detailed section for initial investments like software development, legal setup, and office equipment, helping you accurately budget for your launch and avoid early cash flow surprises.

Detailed launch cost section

Pre-populated operating expenses

Separate COGS and SG&A tracking

Clear view of your initial burn rate

You need to know how your numbers stack up. This financial model is built with SaaS industry benchmarks for key metrics like hosting costs as a percentage of revenue and trial-to-paid conversion rates, giving your financial forecast a solid foundation based on market realities.

Compare against SaaS standards

Validate your core assumptions

Refine forecasts with real-world data

Build credibility with investors

Work where you're most comfortable. The template is designed to function perfectly in both Microsoft Excel and Google Sheets, giving you the flexibility to collaborate with your team in real-time or work offline on your desktop. The core formulas and dashboards are cross-compatible.

Use on Windows or Mac

Share instantly with Google Sheets

Collaborate with your team online

No feature loss between platforms

Get an immediate, high-level overview of your business performance with a pre-built visual dashboard. It automatically pulls key data from your financial statements to display charts and graphs for revenue, profitability, and cash flow, making it easy to track progress and present results.

Visualize key performance indicators

Track MRR growth and churn

Monitor cash balance at a glance

Simplify reporting to stakeholders

This isn't just a spreadsheet; it's a professional, investor-ready report. The clean formatting, clear assumption tables, and integrated financial statements are structured exactly how venture capitalists and lenders expect to see them, helping you present your business financial planning with confidence.

Professionally formatted P&L

Clear documentation of assumptions

Follows standard accounting principles

Designed to answer investor questions