Business financial model file
Consulting Practice Financial Model
Budget the consulting team's delivery time and opening runway before treating another retainer as pure margin.
Opening investment and working cash
The original small practice funds equipment, pilots and contract setup separately from a three-fixed-month cash buffer. It does not assign a cash value to a founder's reputation or assume a signed pipeline. External research advances are working cash rather than another computer purchase.
| Cash use | $ |
|---|---|
| CAPEX: Computers and secure working equipment | 8,000 |
| CAPEX: Office fit-out | 5,000 |
| CAPEX: Selected internal systems equipment | 4,000 |
| Pre-opening: Contracts, insurance and professional setup | 4,000 |
| Pre-opening: Pilot work, site and launch | 5,000 |
| Refundable deposit / tied-up cash | 3,000 |
| Opening stock / initial working inputs | 2,000 |
| Reserve: 3 selected fixed-cost months | 62,400 |
| Selected opening cash total | 93,400 |
CAPEX totals $17,000, pre-opening expense $9,000 and working cash $67,400. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
Principal, analyst and business-development budgets total$17,000 loaded/month, including replacement cost for work performed by an owner. These are original planning commitments, not personal take-home income. External specialist input covers different work from the salaried delivery hours.
| Commitment | $ per month |
|---|---|
| Principal delivery role: loaded replacement budget | 8,000 |
| Analyst: loaded budget | 6,000 |
| Business development/administration | 3,000 |
| Workspace | 1,500 |
| Software/data | 600 |
| Insurance | 500 |
| Marketing | 800 |
| Admin/fees | 400 |
| Total selected fixed cash | 20,800 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 5,000 |
| External specialist input per retainer | 600 |
| Incremental travel/research | 150 |
| Percentage-only fee allocation (2%) | 100 |
| Contribution before scheduled payroll/fixed OPEX | 4,150 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
At 20 principal hours per retainer,120 delivery hours allow six retainers;160 analyst hours at 25 each also allow six complete retainers. Plan five. Scope creep and client review cycles must fit those allocations; unpriced extra hours reduce capacity rather than create billings.
For this fixed mix and commitment, whole-unit cash break-even is 6 completed monthly retainers per month: ($20,800) ÷ $4,150, rounded up. The aggregate capacity is 6 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 3 | 15,000 | -8,350 |
| 6 | 30,000 | 4,100 |
| 5 (planned) | 25,000 | -50 |
Three completed retainers retain the whole team budget. Even five may not cover the selected monthly commitments, so review price, scope and staffing before relying on a larger sales pipeline; the retained guide price/capacity example is separate.
Practical KPI definitions
Measure net earned fee per delivery hour, funded work-in-progress and actual project margin after specialist cost. Utilization uses delivery hours/all paid professional hours, not client invoices divided by headcount. Track signed, delivered, accepted and collected retainers separately.
Retainers are assumed earned and collected in the same month. Client approvals, deposits, receivables, finance and income tax need separate cash treatment.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
What the selected model covers
The official Small Business Consulting Financial Model listing describes an editable five-year plan for operations, financial, marketing and expansion advisory. Marketing spend and acquisition cost create customers; service allocation and lifetime set active clients, with monthly billable hours and prices driving revenue. Stated outputs include profit and loss, cash forecasts, break-even and dashboard metrics.
Use a defined project behind the effective rate
Our original $6,000 fixed-fee engagement contributes $2,800 at 80 hours but $1,400 at 120. Preserving the original $2,800 contribution would require $7,400, while the assigned specialist still has only 100 hours available.
Translate signed fixed-fee scopes into effective delivery hours and rates. Agree revision and approval triggers, then confirm the specialist calendar and the pre-balance cash gap. The Consulting Practice planning guide develops the original worked case.
Planning guide