Cost of goods equals purchases
Profit counts the cost of goods sold. Cash counts what you paid the supplier. The template keeps both.
Financial model template
Retail store financial model template with inventory purchases
A shop pays for goods before it sells them. The template buys stock in batches, sells it with your markup, pays staff and rent, and shows the moment when goods sit on shelves while the account runs empty.
The model answers
- How much money is tied up in stock
- What markup covers rent and staff
- How big a purchasing batch you can afford
What is inside the template
Each line is a block with plain fields. Change the numbers, delete blocks or add new ones.
- Sales with a markup on purchase cost
- Inventory purchases in batches with a set frequency
- Sales staff
- Rent, utilities and the point of sale
- Card processing fees
- Shelving and equipment as an investment
- Taxes on revenue or profit
Numbers to watch
- Markup and margin
- A 50% markup is a 33% margin. Do not confuse them when comparing with competitors.
- Stock on hand
- Money spent on goods that have not been sold yet.
- Purchase frequency
- Bigger batches give discounts but freeze more cash.
- Cash before each purchase
- The cash chart dips every time a batch is paid for.
Common mistakes in this kind of model
No shrinkage
Theft and spoilage reduce real margin. Put a percentage on top of cost.
Ignoring supplier payment terms
A deferral from the supplier can close a cash gap. Model it with the deferred payment block.
AI assistant
Check the template against your market
Tell the assistant your city and format. It looks up prices, rent and salaries online, compares them with the template and proposes changes as cards with the effect on profit and cash. You decide what to apply.
Questions
How do I model inventory?
Use the purchasing block: set the batch size and how often you buy. FinModel spreads the cost of goods in profit and the payments in cash flow.
What margin does a convenience store need?
It depends on rent and staff. The Goals screen shows what markup gives the profit you want.
Related reading
Cash flow gap: how to spot it before it happens
What a cash flow gap is, the typical causes (stock, payment terms, seasonality, loans), how to find it in a monthly forecast and six ways to close it.
Profit vs cash flow: what is the difference
Why profit and cash flow differ: depreciation, loans, inventory, payment terms, taxes and owner payouts. With examples and how to read both reports together.
Similar templates
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