Appendix C: Quantitative Analysis Tools¶

Purpose: Ready-to-use templates and calculators for market sizing, unit economics, competitive analysis, financial modeling, and business model comparison.

Tool Category 1: Market Sizing Calculators¶

1A: TAM/SAM/SOM Calculator - Top-Down Method¶

When to Use: When reliable industry data exists from research reports (Gartner, IDC, etc.)

Template:

MARKET: ___________________________
GEOGRAPHY: _________________________
YEAR: _____

STEP 1: TOTAL ADDRESSABLE MARKET (TAM)
Total industry size globally or in region
Source: _______________________________________
Value: $_________ or ₹_________

STEP 2: SERVICEABLE ADDRESSABLE MARKET (SAM)
Portion of TAM your business model can serve
Filters applied:
- Geographic filter: _______________________ (e.g., "India only" = 5% of global)
- Customer segment filter: _________________ (e.g., "SMBs only" = 30%)
- Product category filter: _________________ (e.g., "Cloud CRM" = 15% of total CRM)

Calculation:
SAM = TAM × Geographic % × Segment % × Category %
SAM = $_________ × ___% × ___% × ___% = $_________

STEP 3: SERVICEABLE OBTAINABLE MARKET (SOM)
Realistic market share achievable in 3-5 years
Competitors: _______________________________
Market structure: ___________________________ (Winner-take-all? Fragmented?)
Realistic market share target: ___% (justify)

Calculation:
SOM = SAM × Market Share %
SOM = $_________ × ___% = $_________

REVENUE PROJECTION:
Year 1: $_________  (___% of SOM)
Year 2: $_________  (___% of SOM)
Year 3: $_________  (___% of SOM)
Year 4: $_________  (___% of SOM)
Year 5: $_________  (___% of SOM)

Example - Indian Cloud CRM for SMBs:

TAM: $80B (global CRM market, Gartner 2024)
SAM: $80B × 2.5% (India share) × 40% (SMB segment) × 100% (cloud-based) = $800M
SOM: $800M × 5% (realistic share in 5 years) = $40M

1B: Market Sizing Calculator - Bottom-Up Method¶

When to Use: When you have data on target customer counts and willingness to pay

Template:

STEP 1: IDENTIFY CUSTOMER UNITS
Total potential customers: _________
Source: ______________________________

STEP 2: FILTER TO ADDRESSABLE
Apply filters:
Filter 1 (e.g., "Has internet"): ___% remain = _________ customers
Filter 2 (e.g., "Budget >₹5L/year"): ___% remain = _________ customers
Filter 3 (e.g., "Uses competitor or manual process"): ___% remain = _________ customers

Addressable customer count: _________

STEP 3: ESTIMATE WILLINGNESS TO PAY
Research method: _______________________ (surveys, competitor pricing, etc.)
Price point: ₹_________ per customer per [month/year/transaction]

STEP 4: CALCULATE SAM
SAM = Addressable Customers × Price per Customer
SAM = _________ × ₹_________ = ₹_________

STEP 5: CALCULATE SOM (REALISTIC CAPTURE)
Penetration rate Year 1: ___% → _________ customers → ₹_________ revenue
Penetration rate Year 2: ___% → _________ customers → ₹_________ revenue
Penetration rate Year 3: ___% → _________ customers → ₹_________ revenue
Penetration rate Year 4: ___% → _________ customers → ₹_________ revenue
Penetration rate Year 5: ___% → _________ customers → ₹_________ revenue

Example - Indian SMB Accounting Software:

Total SMBs in India: 60M (MSME Ministry data)
Filter: Have computer + internet = 30% → 18M
Filter: Organized (file taxes, maintain accounts) = 40% → 7.2M
Filter: Use software (not manual) = 20% → 1.44M
SAM = 1.44M × ₹12,000/year = ₹17,280 Cr ($2.1B)
SOM Year 5 = 5% penetration × 1.44M = 72,000 customers × ₹12,000 = ₹864 Cr

1C: Market Sizing Calculator - Value-Theory Method¶

When to Use: For new markets where customer exists but current solution is inadequate

Template:

STEP 1: IDENTIFY THE JOB/PROBLEM
What problem are we solving? _________________________________
Current solution (imperfect): _______________________________

STEP 2: QUANTIFY VALUE DELIVERED
Current solution cost (time, money, inefficiency): $_________
Our solution cost: $_________
Value created (cost saved or revenue generated): $_________

Value captured (our pricing): $_________  (typically 10-30% of value created)

STEP 3: COUNT POTENTIAL CUSTOMERS
Who has this problem? ___________________________________
How many? _________
Source: ___________________________________________

STEP 4: CALCULATE SAM
SAM = Customer Count × Value Captured per Customer
SAM = _________ × $_________ = $_________

STEP 5: ADJUST FOR ADOPTION CURVE
Year 1 (Innovators 2.5%): $_________
Year 2 (Early Adopters 13.5%): $_________
Year 3 (Early Majority 34%): $_________
Year 4-5 (Late Majority 34%): $_________

Example - Expense Management Software:

Problem: Manual expense reporting takes 30 min/employee/month
Current: Excel + email + manual approval
Our solution: Automated expense app
Value: 30 min × 12 months × ₹500/hour (loaded cost) = ₹3,000/employee/year saved
Pricing: ₹300/employee/year (10% of value, easy ROI)
Potential customers: 500K companies with 10+ employees in India
SAM = 500K companies × 50 employees avg × ₹300 = ₹7,500 Cr

Tool Category 2: Unit Economics Calculators¶

2A: SaaS Unit Economics Calculator¶

Template:

CUSTOMER ACQUISITION COST (CAC)

Sales & Marketing Expense (Monthly): ₹_________

```mermaid
flowchart TD
    A[Sales & Marketing Expense Monthly: ₹_________]
    A --> B[Digital ads: ₹_________]
    A --> C[Sales salaries: ₹_________]
    A --> D[Marketing team: ₹_________]
    A --> E[Tools CRM, Marketing Automation: ₹_________]
    A --> F[Events, content: ₹_________]

New Customers Acquired (Monthly): _________

CAC (Blended) = Total S&M / New Customers CAC = ₹_________ / _________ = ₹_________

CAC by Channel: - Organic (SEO, word-of-mouth): ₹_________ - Paid (Google, Facebook Ads): ₹_________ - Outbound (Cold email, sales calls): ₹_________

CUSTOMER LIFETIME VALUE (LTV)

Monthly Recurring Revenue (MRR) per customer: ₹_________ Annual Contract Value (ACV): ₹_________ (MRR × 12)

Gross Margin: Revenue: ₹_________ COGS (hosting, support, payment processing): ₹_________ (%) Gross Margin: ₹______ (___%)

Churn Rate (Monthly): ___% Customer Lifetime (months) = 1 / Monthly Churn Customer Lifetime = 1 / ___% = _________ months

LTV = ACV × Gross Margin % × (1 / Monthly Churn) / 12 LTV = ₹_________ × % × _________ months / 12 = ₹______

LTV:CAC RATIO LTV:CAC = ₹_________ / ₹_________ = _____:1

Interpretation: - <1:1 = Unsustainable (losing money on every customer) - 1:1 to 3:1 = Need improvement - 3:1 to 5:1 = Healthy - >5:1 = Excellent (or under-investing in growth)

CAC PAYBACK PERIOD Payback Period (months) = CAC / (MRR × Gross Margin %) Payback = ₹_________ / (₹_________ × ___%) = _________ months

Interpretation: - <12 months = Excellent - 12-18 months = Good - 18-24 months = Acceptable - >24 months = Poor (need to improve unit economics or raise prices)

NET REVENUE RETENTION (NRR) Cohort: Customers from _________ (date) Starting MRR: ₹_________ After 12 months:

flowchart TD
    A[Starting MRR: ₹_________]
    A --> B[Churned: -₹_________]
    A --> C[Contraction: -₹_________]
    A --> D[Expansion upsell: +₹_________]
    A --> E[Ending MRR: ₹_________]

NRR = (Ending MRR) / (Starting MRR) × 100% NRR = ₹_________ / ₹_________ = ___%

Interpretation: - <80% = Major churn problem - 80-90% = Need improvement - 90-100% = Acceptable - 100-110% = Good - >110% = Excellent (growth from existing customers offsets churn)

RULE OF 40 Revenue Growth Rate: ___% EBITDA Margin: ___% Rule of 40 Score = Growth % + Margin % Score = ___% + ___% = ___%

Interpretation: - <40% = Underperforming (unprofitable and slow growth) - 40%+ = Healthy balance of growth and profitability

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### 2B: Marketplace Unit Economics Calculator

**Template:**

GROSS MERCHANDISE VALUE (GMV)

Monthly transactions: _________ Average order value: ₹_________ Monthly GMV = Transactions × AOV Monthly GMV = _________ × ₹_________ = ₹_________ Annual GMV = ₹_________ × 12 = ₹_________

TAKE RATE

Platform fee from seller: % (e.g., 15-20% for food delivery) Delivery fee from buyer: ₹______ (e.g., ₹40-60 per order) Other revenue (ads, premium): ₹_________

Revenue per transaction = (GMV × Take Rate %) + Delivery Fee + Other Revenue per transaction = (₹_________ × %) + ₹_______ + ₹_________ = ₹_________

Monthly Revenue = Transactions × Revenue per Transaction Monthly Revenue = _________ × ₹_________ = ₹_________

UNIT COSTS

Delivery cost per order: ₹_________ ├─ Delivery partner payout: ₹_________ ├─ Fuel, incentives: ₹_________ └─ Insurance, support: ₹_________

Payment processing (2% of GMV): ₹_________ Customer support: ₹_________ Technology (per order allocated): ₹_________

Total Cost per Order = ₹_________

CONTRIBUTION MARGIN

Revenue per Order: ₹_________ Cost per Order: ₹_________ Contribution Margin per Order = ₹_________ - ₹_________ = ₹_________ Contribution Margin % = ₹_________ / ₹_________ × 100% = ___%

Interpretation: - Negative = Losing money on every order (need scale, pricing power, or cost reduction) - 0-10% = Breakeven to low margin (need volume) - 10-20% = Healthy - 20%+ = Excellent

PATH TO PROFITABILITY

Current State: - Monthly Contribution Margin: ₹_________ (Transactions × CM per order) - Fixed Costs: ₹_________ ├─ Technology team: ₹_________ ├─ Marketing: ₹_________ ├─ G&A: ₹_________ - EBITDA: ₹_________ - ₹_________ = ₹_________ (negative if unprofitable)

Break-even transactions per month = Fixed Costs / CM per Order Break-even = ₹_________ / ₹_________ = _________ transactions/month

Current: _________ transactions → Need ___% growth to break even

CAC AND LTV (MARKETPLACE)

Customer Acquisition Cost: ₹_________ Order Frequency: _________ orders/month Customer Lifetime: _________ months Total Orders per Customer = Frequency × Lifetime = _________

LTV = Orders per Customer × CM per Order LTV = _________ × ₹_________ = ₹_________

LTV:CAC = ₹_________ / ₹_________ = _____:1

Target: >3:1 for healthy marketplace economics

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### 2C: D2C E-commerce Unit Economics Calculator

**Template:**

REVENUE PER ORDER

Average Order Value (AOV): ₹_________ Orders per customer (first year): _________ Revenue per customer (Year 1) = AOV × Orders Revenue per customer = ₹_________ × _________ = ₹_________

COST OF GOODS SOLD (COGS)

Product cost: ₹_________ (manufacturing or wholesale cost) Packaging: ₹_________ Shipping outbound: ₹_________ Payment gateway (2%): ₹_________ Returns (% of orders): ₹______

Total COGS per order = ₹_________

GROSS MARGIN

Revenue: ₹_________ COGS: ₹_________ Gross Margin = ₹_________ - ₹_________ = ₹_________ Gross Margin % = ₹_________ / ₹_________ × 100% = ___%

CUSTOMER ACQUISITION COST

Marketing spend: ₹_________ ├─ Facebook/Instagram ads: ₹_________ ├─ Google ads: ₹_________ ├─ Influencer marketing: ₹_________ ├─ Content, SEO: ₹_________

New customers acquired: _________ CAC = ₹_________ / _________ = ₹_________

CONTRIBUTION MARGIN (FIRST ORDER)

Revenue (AOV): ₹_________ COGS: ₹_________ CAC: ₹_________ Contribution Margin = ₹_________ - ₹_________ - ₹_________ = ₹_________

CM % = ₹_________ / ₹_________ × 100% = ___%

(Note: First order is often negative; profitability comes from repeat orders)

REPEAT PURCHASE ECONOMICS

Repeat rate Month 1-3: ___% Repeat rate Month 4-6: ___% Repeat rate Month 7-12: ___%

Total repeat orders (Year 1): _________ Repeat order AOV: ₹_________ (often higher than first order) Repeat order gross margin: ___% (COGS only, no CAC)

Customer LTV (Year 1): First order CM: ₹_________ Repeat orders CM: _________ orders × ₹_________ GM = ₹_________ Total LTV (Year 1) = ₹_________ + ₹_________ = ₹_________

LTV:CAC = ₹_________ / ₹_________ = _____:1

PAYBACK PERIOD

Months to payback CAC: Cumulative profit by month until CAC recovered: Month 1: ₹_________ (first order, likely negative) Month 2-3: ₹_________ Month 4-6: ₹_________ Payback achieved in Month ___

Target: <12 months payback

WORKING CAPITAL CYCLE

Days to sell inventory: ___ days Days to collect payment: ___ days (usually 1-2 for e-commerce) Days to pay suppliers: ___ days

Cash Conversion Cycle = Inventory Days + Receivable Days - Payable Days CCC = ___ + ___ - ___ = ___ days

(Negative CCC is ideal: suppliers fund inventory)

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### 2D: Fintech/Lending Unit Economics Calculator

**Template:**

LOAN PRODUCT DETAILS

Loan amount: ₹_________ Interest rate: % Tenor: _________ months EMI: ₹______

REVENUE

Interest income: ₹_________ Processing fees: ₹_________ (typically 1-3% upfront) Late fees: ₹_________ (expected, based on historical data) Insurance/cross-sell: ₹_________

Total Revenue per Loan = ₹_________

COST OF FUNDS

Source of capital: _______________________ (bank borrowing, bonds, equity) Cost of funds: ___%

Interest expense = Loan Amount × Cost of Funds % × (Tenor/12) Interest expense = ₹_________ × % × (_/12) = ₹_________

Net Interest Margin (NIM) = Interest Income - Interest Expense NIM = ₹_________ - ₹_________ = ₹_________ NIM % = ₹_________ / ₹_________ × 100% = ___%

CREDIT LOSSES

Expected Default Rate: ___% (based on credit score, segment, history) Loss Given Default (LGD): ___% (recovery rate)

Expected Credit Loss = Loan Amount × Default Rate × LGD ECL = ₹_________ × % × __% = ₹_______

OPERATING COSTS

Underwriting cost per loan: ₹_________ ├─ Credit bureau pulls: ₹_________ ├─ Verification (KYC, income): ₹_________ ├─ Underwriter time: ₹_________

Servicing cost (collections, customer support): ₹_________

Total Operating Cost = ₹_________

UNIT ECONOMICS

Revenue: ₹_________ Cost of funds: ₹_________ Credit losses: ₹_________ Operating costs: ₹_________

Net Profit per Loan = ₹_________ - ₹_________ - ₹_________ - ₹_________ = ₹_________

Return on Assets (ROA) = Net Profit / Loan Amount × (12 / Tenor) ROA = ₹_________ / ₹_________ × (12 / ___) = __% annually

RISK-ADJUSTED RETURN ON CAPITAL (RAROC)

Capital allocation (regulatory + economic): % of loan amount Capital required = ₹______ × % = ₹______

RAROC = Net Profit / Capital Required × (12 / Tenor) RAROC = ₹_________ / ₹_________ × (12 / ___) = __% annually

Target: >15% RAROC for acceptable risk-adjusted returns

PORTFOLIO LEVEL

Number of loans: _________ Total loan book: ₹_________ Blended NIM: ___% Blended NPA: ___% (non-performing assets >90 days overdue) Blended RAROC: ___%

COHORT ANALYSIS (Example: Jan 2024 Cohort)

Month 1: ___% current, ___% 30 DPD, ___% 60 DPD, ___% 90+ DPD Month 3: ___% current, ___% 30 DPD, ___% 60 DPD, ___% 90+ DPD Month 6: ___% current, ___% 30 DPD, ___% 60 DPD, ___% 90+ DPD Month 12: ___% current, ___% 30 DPD, ___% 60 DPD, ___% 90+ DPD

(Track cohort performance over time to refine underwriting)

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## Tool Category 3: Competitive Analysis Templates

### 3A: Market Share Evolution Tracker (5-Year)

**Template:**

MARKET: _______________________ PERIOD: 20__ to 20__

MARKET SIZE (₹ Cr or $M)

Year 1: ₹_________ Year 2: ₹_________ Year 3: ₹_________ Year 4: ₹_________ Year 5: ₹_________

CAGR: ___%

COMPANY MARKET SHARES

Company A: _______________________ Year 1: % (₹_____) Year 2: % (₹_____) Year 3: % (₹_____) Year 4: % (₹_____) Year 5: % (₹_____) Trend: Gaining / Stable / Losing

Company B: _______________________ [Same format]

Company C: _______________________ [Same format]

Company D: _______________________ [Same format]

Others: % (₹_____)

CONCENTRATION ANALYSIS

HHI (Herfindahl-Hirschman Index) = Σ(Market Share%)² Year 1 HHI: _______ Year 5 HHI: _______

Interpretation: - <1,000: Competitive (fragmented) - 1,000-1,800: Moderate concentration - 1,800-2,500: High concentration - >2,500: Highly concentrated (oligopoly/monopoly)

CR4 (Concentration Ratio - Top 4 Players): Year 1: ___% Year 5: ___%

INSIGHTS:

Market structure: Fragmenting / Consolidating / Stable Winner: ___________________ (gained most share) Loser: ___________________ (lost most share) Disruptor: ________________ (new entrant gaining share)

Key competitive dynamics: 1. _______________________________________________ 2. _______________________________________________ 3. _______________________________________________

---

### 3B: Competitive Positioning Scorecard

**Template:**

COMPETITORS: _________________, _________________, _________________, _________________

SCORING: 1 (Weak) to 5 (Strong)

DIMENSION 1: PRODUCT/SERVICE QUALITY Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 2: PRICING Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 3: DISTRIBUTION/REACH Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 4: BRAND/CUSTOMER TRUST Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 5: INNOVATION/TECHNOLOGY Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 6: CUSTOMER SERVICE Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

DIMENSION 7: FINANCIAL STRENGTH Company A: ___ Evidence: _______________________ Company B: ___ Evidence: _______________________ Company C: ___ Evidence: _______________________ Company D: ___ Evidence: _______________________

TOTAL SCORE (out of 35): Company A: ___ Company B: ___ Company C: ___ Company D: ___

STRATEGIC POSITIONING MAP:

High Quality/Premium │ [Company B] │ │────────────────────────────── High Price │ [Company A] │ [Company C] [Company D] │ Low Quality/Value

WHITE SPACE OPPORTUNITIES: 1. _______________________________________________ 2. _______________________________________________

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## Tool Category 4: Financial Analysis Templates

### 4A: P&L Structure by Industry Benchmarks

**Template:**

INDUSTRY: _______________ COMPANY: _______________ YEAR: FY__

REVENUE Product/Service Revenue: ₹_________ (%) Other Revenue: ₹_______ (%) TOTAL REVENUE: ₹_______ (100%)

COST OF GOODS SOLD (COGS) Direct materials: ₹_________ (%) Direct labor: ₹_______ (%) Manufacturing overhead: ₹_______ (%) TOTAL COGS: ₹_______ (__%)

GROSS PROFIT: ₹_________ (__%) Industry benchmark: __% to __% Our position: Above / In-line / Below

OPERATING EXPENSES Sales & Marketing: ₹_________ (%) Industry benchmark: __% to __% Research & Development: ₹_______ (%) Industry benchmark: __% to __% General & Administrative: ₹_______ (%) Industry benchmark: __% to __% TOTAL OPEX: ₹_______ (__%)

EBITDA: ₹_________ (__%) Industry benchmark: __% to __% Our position: Above / In-line / Below

Depreciation & Amortization: ₹_________ (__%)

EBIT (Operating Income): ₹_________ (__%)

Interest Expense: ₹_________ (%) Taxes: ₹_______ (__%)

NET INCOME: ₹_________ (__%) Industry benchmark: __% to __% Our position: Above / In-line / Below

KEY INSIGHTS: 1. Margin pressure areas: _______________________ 2. Efficiency opportunities: _____________________ 3. Benchmark comparison: _________________________

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### 4B: DuPont ROE Analysis

**Template:**

RETURN ON EQUITY (ROE) DECOMPOSITION

ROE = Net Income / Shareholders' Equity = ___%

DUPONT 3-FACTOR MODEL:

ROE = (Net Income / Revenue) × (Revenue / Assets) × (Assets / Equity) ROE = Profit Margin × Asset Turnover × Equity Multiplier

PROFIT MARGIN (Net Income / Revenue) Net Income: ₹_________ Revenue: ₹_________ Profit Margin = ___% Interpretation: How much profit per rupee of sales Industry benchmark: __% to __%
ASSET TURNOVER (Revenue / Assets) Revenue: ₹_________ Total Assets: ₹_________ Asset Turnover = ___x Interpretation: How efficiently assets generate revenue Industry benchmark: __x to __x
EQUITY MULTIPLIER (Assets / Equity) Total Assets: ₹_________ Shareholders' Equity: ₹_________ Equity Multiplier = ___x Interpretation: Financial leverage (higher = more debt) Industry benchmark: __x to __x Debt-to-Equity = (Multiplier - 1) = ___x

ROE CALCULATION: ROE = ___% × ___x × ___x = ___%

DUPONT 5-FACTOR MODEL (EXTENDED):

ROE = (EBIT/Revenue) × (Revenue/Assets) × (Assets/Equity) × (EBT/EBIT) × (NI/EBT) ROE = Operating Margin × Asset Turnover × Equity Multiplier × Interest Burden × Tax Burden

INTEREST BURDEN (EBT / EBIT) EBT (Earnings Before Tax): ₹_________ EBIT: ₹_________ Interest Burden = ___ Interpretation: Impact of interest expense (lower = more interest)
TAX BURDEN (Net Income / EBT) Net Income: ₹_________ EBT: ₹_________ Tax Burden = ___ Interpretation: Impact of taxes (lower = higher taxes)

ROE INSIGHTS: Primary ROE driver: Margin / Turnover / Leverage Weakness: _______________________________________ Improvement levers: _____________________________

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### 4C: Working Capital Cycle Analysis

**Template:**

COMPANY: _______________ PERIOD: FY__

INVENTORY

Opening inventory: ₹_________ Closing inventory: ₹_________ Average inventory = (Opening + Closing) / 2 = ₹_________

Cost of Goods Sold (COGS): ₹_________

Days Inventory Outstanding (DIO) = (Avg Inventory / COGS) × 365 DIO = (₹_________ / ₹_________) × 365 = ___ days

Interpretation: How long inventory sits before being sold Industry benchmark: ___ to ___ days

ACCOUNTS RECEIVABLE

Opening receivables: ₹_________ Closing receivables: ₹_________ Average receivables = ₹_________

Revenue: ₹_________

Days Sales Outstanding (DSO) = (Avg Receivables / Revenue) × 365 DSO = (₹_________ / ₹_________) × 365 = ___ days

Interpretation: How long to collect payment after sale Industry benchmark: ___ to ___ days

ACCOUNTS PAYABLE

Opening payables: ₹_________ Closing payables: ₹_________ Average payables = ₹_________

Cost of Goods Sold (COGS): ₹_________

Days Payable Outstanding (DPO) = (Avg Payables / COGS) × 365 DPO = (₹_________ / ₹_________) × 365 = ___ days

Interpretation: How long before we pay suppliers Industry benchmark: ___ to ___ days

CASH CONVERSION CYCLE (CCC)

CCC = DIO + DSO - DPO CCC = ___ + ___ - ___ = ___ days

Interpretation: - Positive CCC: Company funds operations (cash tied up) - Negative CCC: Suppliers fund operations (cash available) - Lower CCC = Better (less cash tied up in working capital)

Industry benchmark: ___ to ___ days Our position: Better / Worse than industry

WORKING CAPITAL REQUIREMENTS

Daily COGS = COGS / 365 = ₹_________

Working Capital Required = CCC × Daily COGS Working Capital = ___ days × ₹_________ = ₹_________

IMPROVEMENT OPPORTUNITIES: 1. Reduce DIO (inventory management): ____________ 2. Reduce DSO (faster collections): _______________ 3. Increase DPO (negotiate better payment terms): __

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## Tool Category 5: Business Model Comparison Tool

### 5A: Side-by-Side Revenue Model Comparison

**Template:**

BUSINESS: _______________ SCENARIO COMPARISON: 5-YEAR PROJECTION

MODEL A: _______________ (e.g., "Transaction-based") MODEL B: _______________ (e.g., "Subscription") MODEL C: _______________ (e.g., "Freemium")

YEAR 1 PROJECTIONS

Model A: - Customers: _________ - Revenue/customer: ₹_________ - Total revenue: ₹_________ - COGS: ₹_________ (%) - Gross margin: ₹_______ (%) - CAC: ₹_______ - LTV: ₹_________ - LTV:CAC: :1 - Cash flow: ₹______

Model B: [Same metrics]

Model C: [Same metrics]

YEAR 2-5 PROJECTIONS [Repeat for each year]

CUMULATIVE 5-YEAR COMPARISON

                Model A   Model B   Model C

Total Revenue ₹____ ₹____ ₹____ Total Gross Margin ₹____ ₹____ ₹____ Total CAC ₹____ ₹____ ₹____ Net Cash Flow ₹____ ₹____ ₹____ Customer Count ____ ____ ____ CAGR (Revenue) ___% ___% ___%

QUALITATIVE COMPARISON

Model A: _______________ Pros: 1. _______________________ 2. _______________________ Cons: 1. _______________________ 2. _______________________

Model B: _______________ [Same format]

Model C: _______________ [Same format]

RECOMMENDATION: Best model: _______________ Rationale: _______________________________________ Risk factors: _____________________________________ ```

Using These Tools Effectively¶

Best Practices¶

Start with Reliable Data: Garbage in, garbage out - verify all assumptions
Sensitivity Analysis: Test assumptions (what if CAC is 20% higher? What if churn doubles?)
Benchmark Rigorously: Compare to industry standards and top performers
Update Regularly: Monthly/quarterly updates as business evolves
Cross-Validate: Use multiple methods (e.g., top-down + bottom-up market sizing)

Common Mistakes to Avoid¶

Overly Optimistic Assumptions: "We'll capture 20% market share in Year 1" (rarely happens)
Static Models: Not updating as new data arrives
Ignoring Fixed Costs: Unit economics positive, but company unprofitable due to fixed costs
Cherry-Picking Data: Only using favorable benchmarks
Decimal False Precision: Reporting ₹12,34,56,789 when estimate accuracy is ±30%

Chapter References:

Chapter 5: Market Analysis - TAM/SAM/SOM methodology and market sizing approaches
Chapter 8: Revenue Models - Revenue model selection and optimization
Chapter 24: Financial Acumen - Financial statement analysis and metrics
Chapter 25: Unit Economics Mastery - CAC, LTV, contribution margin deep dives
Chapter 26: Pricing Strategy - Pricing frameworks and willingness-to-pay

Key Chapter Connections¶

Chapter 5: Market Analysis - Market sizing methodology (TAM/SAM/SOM calculators)
Chapter 9: SaaS & Subscription Models - SaaS metrics and unit economics
Chapter 10: Marketplace & Platform Models - Marketplace unit economics and GMV analysis
Chapter 24: Financial Acumen - P&L, DuPont, working capital analysis
Chapter 25: Unit Economics Mastery - Comprehensive unit economics frameworks

Complementary Appendices¶

Appendix A: Strategy Frameworks Library - Qualitative frameworks to complement these quantitative tools
Appendix B: 50 Business Models Decoded - Apply these calculators to real company examples
Quantitative Models Master - 15 detailed financial models with formulas

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Appendix B: 50 Business Models Decoded	Appendix D: Strategic Decision Tools	Table of Contents

Appendix C: Quantitative Analysis Tools Version 1.0 | November 2025 Part of "The Strategy Engine" by [Author]

Appendix C: Quantitative Analysis Tools¶

Tool Category 1: Market Sizing Calculators¶

1A: TAM/SAM/SOM Calculator - Top-Down Method¶

1B: Market Sizing Calculator - Bottom-Up Method¶

1C: Market Sizing Calculator - Value-Theory Method¶

Tool Category 2: Unit Economics Calculators¶

2A: SaaS Unit Economics Calculator¶

Using These Tools Effectively¶

Best Practices¶

Common Mistakes to Avoid¶

Related Content¶

Key Chapter Connections¶

Complementary Appendices¶

Navigation¶