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Pest control invoice template free for organizations

hey if you're looking to start a pest control business and you need a set of financial projections maybe for a potential lender maybe an SBA loan or maybe maybe you're presenting to a potential investor and you need to show a financial forecast and you've come to the right place because we have built a financial projection template built specifically for a pest control business now I'm going to show you kind of two variations or two different ways that we filled out this template so it's it's really the same template but we've got one version I'm going to spend most of my time on for a single unit Pest Control business but we also know that that it's kind of fun to dream about multiple units or or maybe you already have one unit and you're looking to to add a second location of your business so maybe you're already operating a business in in one city you want to open a second or third location in in another geography this template works for multi-unit or multilocation Pest Control businesses so I'm going to walk you through how to fill the template out again spending most of my time on focusing on a single unit because that's what you're going to probably need to present to you know a potential SBA lender for example if you're looking for a loan to get the the business off the ground now you might have plans to grow in the future I would recommend that you just show the SBA lender the first unit you're going to build you can you can tell them you know if things go well you want to expand in the future but don't scare away your SBA lender don't don't show him your your plan for 20 locations in the next 5 years that that will probably scare them away so let's focus on getting the the financing you need for the first location and then we'll go from there all right with that out of the way I just want to mention the link to this template is in the description of the video below so you can go to the description grab this template and if you stick around to the very end of the video as a thank you for sticking around to the end I'm going to send you a coupon code I'm going to give you access to a coupon code um so that you can take a discount on this template and before I dive in just a little bit more background so my name is Adam hxa I'm the co-founder of projection hub and we help entrepreneurs and business owners create Financial projections for potential investors and lenders I spent a little over a decade as an SBA lender myself where during my time as the executive director I I oversaw the approval of 1500 SBA loans to all sorts of different businesses and industries and so I really have that hat that SBA lender hat on or that business lender hat on when I'm thinking about how do we need to create these projections in a format and a structure that's going to be lender friendly and so that's that's our goal here all right so with that out of the way let me dive into how this template works okay so we are starting here on the add a glance Tab and you can see kind of once you've finished filling in the inputs of your various assumptions you you are going to be able to see some nice graphs and charts and things you can pull into a business plan or a pitch deck for investors and then you're going to have a 5-year income statement summary a 5-year cash flow summary a 5-year balance sheet summary and then the income statement cash flow and balance sheet all broken down by month for each of the five years so the SBA is going to typically require the first two years to be broken down monthly we just go ahead and give you the whole five in case they ask for that so you have all that level of detail now in order produce these reports we have a little bit of work to do so we need to come back to our input assumptions tab here so the first thing you need to know about these input tabs every cell that's highlighted in blue is an assumption that you can change okay and so I know some of you excel's not your thing you might be feeling overwhelmed already I'm going to try to walk you through it and and make it easy for you but I did just want to mention that if you get through this and you're like you know what I just want somebody F to fill this out for me I want someone to just handle this for me get it ready for my SBA lender and and make sure I put my best foot forward we do offer that service we offer a template fill out service uh where you can tell us about your plans for the business we'll fill the model out for you and then you know record a video that walks you through the the the numbers and gives you confidence so when you're presenting to A lender you have ownership of those numbers you understand the numbers so if that's something you're interested in you can reach out to to us at support projection hub.com leave us a comment in the comment section below and we'll help you out with that okay with that out of the way let's see how this works so you can change the start month here you can set a starting cash balance so let's say this is a startup sry starting cash balance is zero you can set location one opening on month one of the model you've got accounts receivable um so opening AR opening accounts receivable is probably going to be zero because it's a startup right so you won't have any no one's going to owe you money yet on day one this average Day sales outstanding so this means how many days does it take you to collect payment after you provide the service so if you are doing pest control for example in a for residential and maybe you're just doing like on call like you know somebody's got a wasp problem Yellow Jacket problem at their house you come out and you spray for that right you're going to charge them when you do that service right but you might have other customers so let me step back you're going to charge them when you you do that service right and so if that's the case you're going to put average Day sales outstanding as one it's going to take you one day to collect you're going to collect on the same day that you provide the service now you might also have some clients that you go and you spray for you know pest on a regular basis maybe a monthly basis maybe a quarterly basis what whatever that is so you might you might do that and then uh invoice them and then they pay that invoice but they might not pay the invoice for 20 days 30 days right uh after you provide the service so you might have some mix of of payment that's coming 30 days after the service some mix of payments that come the same day you provide the service all in all maybe it it averages out to 15 days on average perhaps so that's why we have that set to 15 so you can you can make adjustments to that on the accounts payable side this is how fast you pay your bills so our opening accounts payable is going to be zero again you're not going to ow anybody on day one average days payables outstanding we set that to 15 some of your expenses you're going to get an invoice for you might wait 20 days 30 days to pay right maybe some of your suppliers you give you terms and you don't have to pay pay right away or you put things on a credit card you pay for it today you put on a credit card but you don't pay the credit card for you know a month right and so when the cash actually leaves your account your bank account that's that's when it's officially paid right so picking something like 15 days probably makes sense there too all right current inventory balance again we're startup so we're going to say zero but starting inventory for each location we're saying initially day one we're going to buy $500 worth of initial inventory or supplies and then we're going to keep I'm going to put this at 100% so this basically means we're going to keep one month of supply of inventory on hand at all times and the model will just figure that out for you in terms of equity investment here we're saying we're going to put in equity investment at 50,000 for the first or in the first month here to help cover startup costs so what are the startup costs going to be well we've got uh leasehold improvements so let's say we're going to rent an office maybe with a warehouse to store inventory and supplies and but that office needed some work and so we're actually going to do $35,000 worth of improvements remodeling to get that ready for uh opening day and then we can set the life expectancy in years this just helps us figure out how to calculate depreciation so if we say 20 years it just means that that's going to be depreciated that asset's going to be depreciated over the useful life of 20 years and then you can just always select month one if if this is for a startup you're you're going to purchase that in month one now month one you're also going to need some tools and equipment and you know of course depending on what you want to do you could probably spend a whole lot more than $10,000 on tools and equipment or you could probably spend less so to get started so you know figure out exactly what services you want to provide what what equipment you're going to need to be able to do that and you enter that number in here now you could also add a vehicle so if you're going to purchase a vehicle you could add a vehicle in here you can select from this drop down vehicles I am going to assume for the sake of Simplicity that you're going to lease vehicles in this model but you could purchase a vehicle here and you'd want to add that in add the price of that vehicle in here and then let's say we also buy $10,000 worth of software computers printers that sort of thing electronics that you might need for the office and then we're going to look at our loan so let's say we have a startup loan here of 75,000 and it's we're going to get it on month one we're going to make our first payment on month two we're going to have an interest rate of 10% and a term of 120 months or 10year term all right so that's on the input page uh assumptions page now let's look at the revenue and cost of goods sold okay so for this one location let's say uh we are going to uh add one technician right off the bat so maybe you're the owner but then you're also going to have an employee technician so you're going to add one in month one of the business you're going to add a second technician here in month 6 a third technician in month 13 and then another technician every the first month of every year up until the end of the 5 years this is a 5year model so you know and you don't have to add six technicians you or you could add 10 or you could add one ever you know you can adjust this as needed but this gives you an example of how you can model in adding new technicians as you grow from there we're going to say okay the maximum weekly billable hours per employeee so this is the number of hours that you actually think your technicians are going to be doing billable work or basically that they're getting paid for right so it's probably not going to be not every minute of every day is not billable right and so let's let's say it's 35 hours of the maybe 40 hour work week and then your rate per billable hour so you need to think about this because let's say you've you're charging $50 every time you come out to a house and just do like a maintenance spray and it might you know it might take might take 10 minutes to do for the technician you are you're but you're charging 50 bucks for that right so let's say it actually takes 10 minutes to do the to do the job but it took 20 minutes to get there and then it takes 20 minutes to get to the next place and the next home and then 10 minutes again to provide that service so within 1 hour you're only doing 20 minutes of actual spraying or whatever the you know treatment but between the travel time maybe you're saying on average I can get two jobs done for every hour at 50 bucks uh a service so my actual billable rate here is $100 an hour okay so that's that's the idea now you might have other you know other services where like you're coming out for a one-time you know problem again like a there's a yellow jacket infestation and technicians out there for an hour trying to to fix this now that might be you know that might be $150 service fee because maybe it's $100 for the time but $50 for the travel time as well right so you're still trying to you're trying to get some billable hour rate so you can set kind of what you want that goal to be but but this is what you're shooting for you want to enter in what's that billable rate per hour that you're hoping to get for each of those technicians so that gives you a base Revenue per employee per week 3500 this allows you to kind of give a ramp up period for new employees so if you say okay I'm going to hire a new employee but I think it's going to take a few months to actually get them up to billing out 35 hours so if you if you say it's going to take 3 months the way the model will work is in the first month they're basically going to be like 11 hours or 1/3 of 35 so 11 to 12 hours worth of billable the next month they'll be 23 hours billable the next month they'll be up to 35 hours billable and so you can kind of spread that out over time and then this is the annual rate increase in terms of you know in year two we're going to be charging $105 an hour increase that that rate by 5% or whatever percentage you want okay that's the revenue side now on the cost of goods sold side we have kind of two sections here we've got the direct labor and the job materials so for the direct labor let's say we're going to pay our technicians $2,600 a month plus 8% of their wages here we have set as benefits so this is just grabbing this number whatever number you put in there and it's multiplying by 08 to say okay we're going to have some additional benefits here now you want to make sure that this 2600 is is kind of the all-in cost now this could be maybe you're not paying benefits but it could be your portion of taxes right so we could say taxes and benefits okay so that's that's labor cost and then on the material side we what we want here is the job materials used per employee per month and so here's here's how we do this I have this little box out here I can say all right I want to assume that on average our job materials cost 10% of our Revenue so we're doing Pest Control the the supplies the spray that we're doing you know the the the consumable materials that we're using on the job we want to know how much that's going to cost okay so if I say 10% then this table this little field is going to do the math for me so it's it's white here because I don't want you to change this I want you to leave that as it is it's got a little calculation here working and so if you change this and say no it's actually only 5% you can see that automatically changes so I'm going to set that to 10% for now now okay so that is it on the revenue and cost of goods sold and let's look at the other operating expenses so you can set various operating expenses in kind of three different ways you can set them as a percentage of Revenue a per location fixed cost or a corporate level fixed cost so the corporate level would come into play if you have multiple locations which we're going to get into in a minute but so this for advertising I set that as a percentage of Revenue and so the model will automatically say okay it's going to look each month what was our Revenue we're going to apply 5% of that towards advertising for credit card processing fees that's usually about 3% for fuel 3% sales commission so instead of adding a salaried sales employee you can just set a percentage of Revenue that's going to go towards sales the sales team and so that kind of is all-encompassing it covers however you end up doing it whether it's just a Comm straight commission or whether you pay a base plus commission like this is the percentage you're kind of shooting for and this can vary I mean you can decide based on your industry and location and what the market bears how much you're going to need to pay in terms of uh sales commission but um that that can be a starting point I I think for Simplicity sake I like using the percentage method so that it scales with you as you grow vehicle leasing same idea you're going to keep adding additional technicians instead of coming over here you could purchase vehicles and you need to add in every time you add a new technician they're going to need their own vehicle you could add in purchases of vehicles over time you you could do it that way but the kind of the elegant way of this vehicle leasing by doing it as a percentage of Revenue when you add a new technician they're going to drive more Revenue as they drive more Revenue this vehicle leasing cost is just going to go Auto go up automatically in conjunction with that um increase in Revenue so I really like to to think about it that way um you can also set fixed costs so you've got things like rent supplies Insurance these are all per location fixed costs and then for the salaries here for a single unit location I'm just going to have myself as an owner here at paid 75,000 a year and then let's say I'm hoping to be able to hire general manager starting in year 4 so month 37 here I'm going to hire this general manager paid 80,000 a year to just run basically run the dayto DAT of the business right is the idea so that is really it on the single unit location you can kind of see the results here you have a a small loss in the first year but ramping up towards profitability as you fill this out what you want to do is take a look at your cash flow statement so come to the cash flow statement make sure you look at this row cash at the beginning of the period you want to make sure that this never goes below zero if it goes below zero you're out of money so we don't want to present that to the bank and so keep keep that in mind and so if it does go below Zer you need to either increase revenue or decrease expenses somehow right okay so now I just want to show you real quick what a multi-unit would look like so I think again I think you should send the single unit if if you're just starting out send the single unit version to your lender but if you want to dream a little bit about what a multi-unit could look like I'll just show you how how you you would fill this out differently then just real quick so you can add in location 2 three and four and let's say you want to add a new location every 18 months let's say you need a second round of equity investment to help you open location to so you need to invest another 50,000 and you'll notice that this says month one so why doesn't this say month 18 because you're you're opening location two in month 18 right well here's a pretty cool thing that we got built in here so if you select which location this is referencing the model is automatically going to look and say okay location two we know location 2 doesn't open till month 18 so when I say month one it's relative to the location opening month so you can see that right there relative the lo location opening month so that means if you put month one here that Equity investment is going to come through on month 18 when that second location opens all right same it's the same structure here with the fixed assets so you can have you know leas hold improvements for the offices and the new cities again just put month one it's going to reference this and know when you open those locations same thing with tools and equipment you can have a loan for each location again as long as you pick the associated location you just select month one and you're going to be good to go on that now this table down here how much cash do I need this is kind of cool so it's going to it's going to tell you whether you have sufficient cash to open the location now look based on this look at all the cash we have available we don't need to borrow we don't need to borrow for startup loan location number four so we could just delete this and it's going to end up taking that out so you see new debt for for location so we're just not going to have any new new debt or Equity we're just going to use the cash that's available in the business okay and so you can see yep we' we've got the cash available we don't need to borrow anything here right so that's how that would work and then really the revenue side is going to be exactly the same this is just going to know okay we opened a new location it's going to follow this same exact pattern so it's going to follow the same structure for the second location and the Third location same thing with this the only difference would be here now let's say you know you're going to you you've got a A Pest Control Empire planned here and you're going to need to hire a CEO and so in month 25 you're going to hire a CEO to help you scale the business in month 37 you're going to hire a CFO at the corporate level and then here you're going to hire a general manager maybe you hire a general manager right away each time a new location opens so month one of each time a new location opens boom you're hiring a general man manager for that new uh office location and then you can kind of see how this ends up again we have kind of a small loss in the first year but then this ramps up to 3.1 million and you know almost half a million profitability there by the end of year five all right so that is it I'll I'll leave you at that but again as a thank you for sticking around to the end of the video that you can go to the description of the video below and you're going to find a link to a form you're going to fill that form out and and when you fill the form out we're going to email you our most upto-date discount code use that discount code at checkout to take a discount on this particular template as I thank you for sticking around and if you have any questions you need help filling it out you want to talk about your SBA loan request uh feel free to reach out to us at support projection hub.com we'd be happy to help all right thanks [Music]