Our Custom Gaming PC Building Financial Model Structure covers all the essential aspects you need to consider when starting or scaling a Custom Gaming PC Building business. By following this structure, you can better understand your revenue streams, costs, and assets, helping you optimize profitability and strategically plan for growth.

Custom Gaming PC Building Financial Model Structure

A well-structured financial model is crucial for any Custom Gaming PC Building business: it offers a roadmap to forecasting potential revenues, understanding direct costs, planning employee roles, managing operational expenses, and identifying essential assets. This Custom Gaming PC Building financial model not only illustrates the fundamentals of the business, but it also helps identify new and profitable revenue streams. The Custom Gaming PC Building financial model structure, although robust, requires continuous refinement because market dynamics can shift unexpectedly. This adaptability is vital, because it ensures sustained growth and competitiveness.

Revenues

The revenue streams for a Custom Gaming PC Building business can be quite diverse:

Custom PC Builds: Calculate by multiplying the number of units sold by the average selling price per unit.
Component Sales: Generate revenue from individual components sold separately, calculated by component quantity sold times the average price.
Consulting Services: Provide expert advice on builds, calculated by hours billed multiplied by hourly rate.
Maintenance Services: Include revenue from repair and upgrade services, based on service fees times the number of jobs completed.
Accessory Sales: Contribute income from peripherals and accessories, calculated by the number of accessories sold times average price.
Subscription/Membership Plans: Offer recurring revenue from exclusive service plans, calculated by average membership price times number of subscribers.
Gaming Software Sales: Produce revenue from selling gaming software, calculated by units sold times the price per unit. However, the success of these streams can vary significantly depending on market demand and competition.

Cost of goods sold

The primary costs associated with these revenue streams include component procurement costs, labor for builds and repairs, and subscription service delivery costs. Each must be calculated proportionally to their respective revenue streams to maintain profitability. However, this can be challenging. Because of fluctuating expenses, it is crucial to monitor all costs closely. Although these elements are essential, they can vary significantly, which complicates the overall financial assessment.

Employees

A Custom Gaming PC Building business typically requires:

Build Technicians: Responsible for assembling custom PCs and ensuring quality control.
Sales Representatives: Manage customer interactions, promote sales, and handle transactions.
Technical Support Staff: Provide repair and maintenance services to clients.
Procurement Managers: Handle the sourcing and purchasing of components.
Marketing Specialists: Promote the business through strategic marketing campaigns.

Operating expenses

Typical operating expenses include:

Rent for retail or workshop space
Utilities for electricity and internet
Marketing and advertising costs
Salaries and wages for employees
Equipment depreciation costs
Insurance for business property and operations
Professional fees for legal and accounting services
Software and IT system expenses
Office supplies and materials
Miscellaneous administrative expenses

Insurance for business property and operations is essential; professional fees for legal and accounting services are also significant. However, these costs can accumulate quickly because they often represent a substantial portion of operating expenses. Although necessary, businesses must carefully assess their budget to manage these expenditures effectively. This balance is crucial because it ensures sustainability in the long term.

Assets

Necessary assets include:

Inventory: A wide selection of PC components and accessories.
Workshop Equipment: Tools and machines for assembly and repair.
Retail Equipment: Display and storage units for showcasing products.
Office Equipment: Computers and communication tools for daily operations.

Funding Options

Common funding sources are:

Bank Loans: Traditional financing for startups and expansions.
Venture Capital: Investment from firms seeking equity in high-growth potential businesses.
Crowdfunding: Raising small amounts of money from a large number of people via online platforms.
Bootstrapping: Using personal funds and revenue to grow the business gradually.

Driver-based financial model for Custom Gaming PC Building

A professional financial model for the Custom Gaming PC Building business must be rooted in the operating KPIs, or “drivers,” specific to the industry. For instance:

Lead Generation Rate measures potential customer interest and inquiries;
Conversion Rate indicates the percent of leads that result in sales;
Average Order Value reflects the average monetary value of orders placed within a certain period;
Customer Retention Rate denotes the percentage of repeat customers over time;
Inventory Turnover examines how frequently inventory is sold and replaced;
Build Time Efficiency (the average time taken to complete a PC build) is crucial;
Service Downtime measures the time to resolve maintenance issues;
Market Growth Rate predicts the demand for gaming PCs; this is vital for planning future strategies.

Driver-based financial planning involves identifying and understanding key activities that significantly impact business results. It establishes the relationship between financial results and resources required to achieve those results—such as personnel, marketing budgets, and equipment. If you want to know more about driver-based financial planning and why it is the right way to plan, see the founder of Modeliks explaining it in the video below.

However, this approach is essential for optimizing performance, because it allows for better decision-making. Although there are many methods available, driver-based planning stands out due to its effectiveness.

The financial plan output

The objective of the financial forecast outputs is to enable you and your management, board, or investors to quickly comprehend how your Custom Gaming PC Building business is poised to perform in the future. You should gain assurance that the plan is well-conceived, realistic, and attainable. Additionally, it’s crucial to grasp what investments are necessary to implement this plan and what the expected return on investment will be. To meet these objectives, here is a one-page template to effectively present your financial plan.

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In addition to this one-page summary of your plan, you will also require three projected financial statements:

Profit and Loss: Captures revenues, expenses, and profits within a specified period.
Balance Sheet: Presents a snapshot of assets, liabilities, and equity at a given moment.
Cash Flow Statement: Monitors the movement of cash in and out of the business over the designated timeframe.

Custom Gaming PC Building financial model summary

A professional Custom Gaming PC Building financial model will assist you in contemplating your business needs and identifying the resources needed to achieve your targets. It sets goals, measures performance, raises funding, and enables confident decisions for managing and growing your business. However, it ensures that all aspects of your business are thoroughly considered, providing a guide for long-term success, even though the process may seem daunting at first. Because of this, careful planning is crucial.

If you need help with your financial plan, try Modeliks, a financial planning solution for SMEs and startups or contact us at contact@modeliks.com and we can help.

In the last 20 years, he helped everything from startups to multi-billion-dollar conglomerates plan, manage, fundraise, and grow.