Writing Business Plans/business plan

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Question
Dear Sir,

Can you provide me any "small business" business plan that can start within $50 to $100 thousand dollar.

Regards
Rujan

Answer
RUJAN,
THIS  IS  A  SAMPLE  BUSINESS  PLAN  FOR   A  SMALL  BUSINESS. THIS  FORMAT  IS  APPLICAPABLE  TO   ALL  SMALL  BUSINESS.

Outline   Topic   Table   Chart
1.0    Executive Summary
  Highlights
1.1   Objectives      
1.2   Mission      
1.3   Keys to Success      
2.0    Company Summary   Startup   Startup
3.0    Product Description       
4.1   Market Segmentation      
4.2   Target Market Segment Strategy      
4.3   Market Needs      
4.4         
5.0    Strategy and Implementation Summary       
<5.1   Competitive Edge      
5.2   Sales Strategy   Sales Forecast

6.0    Management Summary       
7.0    Financial Plan       
7.1      Break-even   Break-even
7.2   Projected Profit and Loss      
7.3   Projected Cash Flow   Cash Flow   Cash Flow


Executive Summary
The Dollar Store is a start-up retail store  that provides interesting merchandise options at bargain prices. Financing will come from the private investments of owners Ted Brinkman and Jim Spencer. They will donate equity that will be cleared at the end of 36 months. Dividends will be paid quarterly on the outstanding equity.
The Dollar Store will be incorporated as an LLC corporation. This will shield the owners from issues of personal liability and double taxation. The investors will be treated as shareholders and therefore will not be liable for more than their personal investments. The majority owner Ted Brinkman, will contribute from his personal savings toward this business venture. With an agressive marketing plan The Dollar Store expects to experience steady growth as it becomes more familiar to the general public.
With the financing in place The Dollar Store will be able to successfully open and maintain operations through year one. The large capital investments of the owners will provide the public with a unique and innovative store that will cater to the needs of those on fixed incomes such as low income families, the elderly, and the large student population in the Bend area. The successful operation of the Dollar Store will provide a customer base that will allow it to be self-sufficient.


1.1 Objectives
1.   To provide a wide range of merchandise at reasonable prices.
2.   To achieve a healthy profit margin within the first year.
3.   To achieve a modest net profit by year two.
4.   To be an active and vocal member of the community, and provide continual re-investment through participation in community activities and financial contributions.
1.2 Mission
The Dollar Store provides a variety of interesting merchandise options at bargain prices. Dedicated to customer service the Dollar Store will give its patrons the kind of service that is respectful and prompt. Employees of the Dollar Store will also be treated in a professional manner with a rewarding work environment and fair compensation. The Dollar Store wants each customer to feel as though he/she has gotten Fifth Avenue treatment at a bargain price.
1.3 Keys to Success
To succeed in this business we must:
  Sell a broad range of products.
  Provide for the satisfaction of 100% of our customers.
  Be an active member of the community.
  Encourage customer input.
Company Summary
The Dollar Store sells products and provides excellent customer service for the general public. We have leased a retail store which we use to market and merchandise our products. It is located one mile from Main St. on River Way in Bend, Oregon. The company was incorporated on January 2.
2.1 Company Ownership
The Dollar Store is a privately held corporation. It will be registered as a Subchapter S, with ownership Ted Brinkman (60%), Jim Spencer (40%).
2.2 Start-up Summary
The building will be leased with a down payment of $3,000 on a four year lease.
Start-up costs will be financed through a combination of owner investment and short-term borrowing. The start-up chart shows the distribution of financing.
Other miscellaneous expenses include:
  Marketing/advertising consultancy fees  for assistance in designing our grand-opening ads and brochures.
  Legal fees for corporate organization filings.
  Retail merchandising/designing fees for store layout and minor renovations.

Start-up Funding
Start-up Expenses to Fund   $13,000
Start-up Assets to Fund   $73,500
Total Funding Required   $86,500
Assets    
Non-cash Assets from Start-up   $31,000
Cash Requirements from Start-up   $42,500
Additional Cash Raised   $0
Cash Balance on Starting Date   $42,500
Total Assets   $73,500
Liabilities and Capital   
Liabilities   
Current Borrowing   $0
Long-term Liabilities   $0
Accounts Payable (Outstanding Bills)   $6,000
Other Current Liabilities (interest-free)   $500
Total Liabilities   $6,500
Capital   
Planned Investment   
Ted Brinkman   $40,000
Jim Spencer   $30,000
Other   $10,000
Additional Investment Requirement   $0
Total Planned Investment   $80,000
Loss at Start-up (Start-up Expenses)   ($13,000)
Total Capital   $67,000
Total Capital and Liabilities   $73,500
Total Funding    $86,500

Start-up
Requirements   
Start-up Expenses   
Legal   $300
Stationery, etc.   $200
Brochures   $500
Marketing consultants   $1,000
Insurance   $200
Rent   $3,000
Building renovations   $5,000
Expensed equipment   $1,500
Other   $1,300
Total Start-up Expenses   $13,000
Start-up Assets   
Cash Required   $42,500
Start-up Inventory   $20,000
Other Current Assets   $1,000
Long-term Assets   $10,000
Total Assets   $73,500
Total Requirements   $86,500



Products
The Dollar Store sells a variety of quality discount merchandise. The types of merchandise we will carry will include items such as dishware, household goods, toys, cosmetics, candy, greeting cards, and a list of items too exhaustive to list here. A dedicated staff is committed to providing excellent customer service.
The merchandise is purchased from a variety of well-known manufacturers such as Procter & Gamble, General Mills, American Greetings as well as a number of other generic branded companies. Shipments arrive on a daily basis. We will continue to find new product lines that can be added to our inventory.
We are able to sell products at very low prices, because we will purchase items from discontinued lines, seconds, over runs, etc., that cannot be sold to a manufacturer's usual retail customers.



Market Analysis Summary
We expect sales to increase steadily as consumers find that they can purchase a variety of quality items at bargain prices. We intend to tap into the retail market with pricing that will encourage quantity buying, and our pricing will attract consumers on fixed budgets.
Our target market is the lower income portion of the Bend and Redmond community. This includes working class individuals, the elderly, and students, many of whom are price conscious and looking to find a value for their dollar.
4.1 Market Segmentation
The market analysis pie chart shows potential customers and the company's target markets. The Dollar Store intends to provide affordable shopping alternatives to working class families with incomes under $25,000, for elderly people on fixed incomes, and also a large student population that tend to be on strict budgets. Bend makes up the largest market segment. We expect this market to grow at a rate of 10% per year. This market constitutes the general public who are looking for affordable merchandise at bargain prices. Redmond constitutes the second largest market with a fast growing retirement community. There are also many bedroom communities that shop in the Bend area that will add to the percentage of consumers.



Market Analysis
     Year 1   Year 2   Year 3   Year 4   Year 5   
Potential Customers   Growth          CAGR
Elderly   10%    40,000    44,000    48,400    53,240    58,564    10.00%
Students   10%    20,000    22,000    24,200    26,620    29,282    10.00%
Working Class Families   10%    50,000    55,000    60,500    66,550    73,205    10.00%
Total   10.00%    110,000    121,000    133,100    146,410    161,051    10.00%

4.2 Target Market Segment Strategy
We focus on the price conscious consumer who is looking for value as well as quality. Both the Bend and the Redmond groups will be marketed to as they are isolated populations which do most of their shopping in the greater Bend area. If we can attract and keep these consumers the word will continue to spread about what our store has to offer.
4.3 Industry Analysis
In an ever changing economy the discount store model is becoming more popular with the consumer. Providing a large selection of bargain-priced items is our intended goal.
4.3.1 Competition and Buying Patterns
Consumers demand quality customer service, fair pricing, and a convenient location.
Competition is very tough with customer service and location key components. The selection of merchandise a store provides is also very important.



Strategy and Implementation Summary
The Dollar Store uses a strategy of total market service. Our promise is in our location and the products we sell, the people we attract, and the atmosphere we create.
We will present a store that is pleasant to shop in with a large variety of merchandise to choose from.
Ultimately, we are selling more than just merchandise. We are selling ourselves. We want to provide the kind of customer service that will provide an atmosphere that creates a positive shopping experience for our customers.
Strategic Assumptions:
1.   Every person with income limitations or on fixed incomes is a potential customer.
2.   Marketing to these segments of the population will lead to an expansion in overall market growth.
5.1 Competitive Edge
Our location is a very important competitive edge. We are located in the popular Riverway Mall which has a high appeal to many different kinds of consumers. There is a good mix of high and low end shops with several quality restaurants near by. With easy access from Main St. the Riverway Mall is a popular destination not only for Bend residents, but for people commuting from Redmond and the outlying areas.
Another competitive edge we will have over our competition is the large variety of merchandise we will carry. With the sources we are working with it will be possible to carry many name brand items at a discount price. Add a staff committed to providing great customer service and the Dollar Store will be an attractive stop for the consumer.
5.2 Marketing Strategy
The Dollar Store will benchmark our objectives for sales promotion and mass selling.
We are focusing our marketing effort on the community of consumers that want a store which has an interesting variety of merchandise at bar gin prices. We will implement a strategy that treats these customers as a community. This means our marketing resources will be centered around both sales promotions (events, displays) and personal sales (customer service, friendly atmosphere).
  We will stay within our marketing budget.
  Marketing promotions will be consistent with the Mission Statement.
5.3 Sales Strategy
Employees are paid a straight wage but can achieve a semi-yearly bonus based on profits and customer satisfaction rates.
All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.
5.3.1 Sales Forecast
The following table and chart give a run-down on forecasted sales. We expect sales to increase at a rate of 10% by April. We would like to see another increase of 10% by August.
We expect to experience a steady growth throughout our first year even though we are a new business enterprise. As we become more familiar to the public we expect to gain more market share and would like to see progressive growth as we head into the following year. The Dollar Store, with an aggressive marketing approach expects to increase its share of the market by offering a unique option to discount shopping.
Note: For company purchases, the per-unit price of inventory purchases includes cost of shipping.


Sales Forecast
  Year 1   Year 2   Year 3
Sales         
Perishable Items   $113,500    $136,200    $163,440
Non-Perishible Items   $212,000    $254,400    $305,280
Total Sales   $325,500    $390,600    $468,720
Direct Cost of Sales   Year 1   Year 2   Year 3
Perishable Items   $56,750    $68,100    $81,720
Non-Perishable Items   $106,000    $127,200    $152,640
Subtotal Direct Cost of Sales   $162,750    $195,300    $234,360
5.4 Milestones
The milestone table shows how the responsibilities break down in the start up of our store. Ted Brinkman will head up the drafting of the business plan and will conduct the drive to secure funding. Jim Spencer will work to secure a site for the store and will handle the details with the personnel plan. Our accountant Dick Garret will set up our accounting plan.


Milestones
Milestone   Start Date   End Date   Budget   Manager   Department
Business Plan   1/1/2003   2/3/2003   $1,000    Brinkman   Owner
Secure Start Up Funding   2/17/2003   4/3/2003   $500    Brinkman   Owner
Site Selection   3/1/2003   4/22/2003   $1,500    Spencer   Management
Personal Plan   6/4/2003   6/21/2003   $500    Spencer   Management
Accounting Plan   7/8/2003   7/19/2003   $1,000    Tollman   Accounting
Totals         $4,500       



Management Summary
The owners of the Dollar Store believe very strongly that relationships should be forthright, work should be structured with enough room for creativity, and pay should be fair and equitable in relation to what the industry is paying. With the right people in place the Dollar Store will have the incentives to encourage quality people to stay.
Ted Brinkman and Jim Spencer worked together as managers of a group of large regional retail operations (name omitted) before starting the Dollar Store. Over the past 10 years, under their direction, the organization became the largest and most well-known in their area. The owners of the company were looking to sell the company to a national organization and it was at that point that Jim and Ted decided to branch out on their own. Both bring extensive retail marketing and finance knowledge to the company. They have the knowledge, experience and contacts to make the company a success.
6.1 Personnel Plan
The personnel plan is included in the following table. It shows the owner's salary in which Mr. Brinkman only wants a small draw at the initial start of the store. There will be four full-time employees and four part-time employees. Mr Spencer will act as the full-time manager to oversee many of the day-to-day functions of the store. Store employees will start at an hourly rate and raises will come after the stores first year of operation. The manager will start at a monthly salary. Salaries and hourly rates are shown in the table below. Full-time employees will qualify for full benefits.

Personnel Plan
  Year 1   Year 2   Year 3
Owner   $24,000    $28,000    $30,000
Owner/Manager   $30,000    $31,500    $33,000
Full Time   $16,800    $17,000    $18,500
Full Time   $16,800    $17,000    $18,500
Full Time   $16,800    $17,000    $18,500
Full Time   $16,800    $17,000    $18,500
Part Time   $6,000    $5,900    $6,300
Part Time   $6,000    $5,900    $6,300
Part Time   $6,000    $5,900    $6,300
Part Time   $6,000    $5,900    $6,300
Total People   10   10    10
Total Payroll   $145,200    $151,100    $162,200



-----------------------------------------------------
Financial Plan
1.   Growth will be moderate; cash flows steady.
2.   Marketing costs will remain below 15% of sales.
3.   The company will invest residual profits into financial markets and not company expansion (unless absolutely necessary).
4.   Future cash investments will use NOV projections to achieve maximum return with limited risk.
7.1 Important Assumptions
The personnel burden is very low because benefits are not paid to part-timers. And the short-term interest rate is extraordinarily low because of Mr. Brinkman's long-standing relationship with High Desert Credit Union.

General Assumptions
  Year 1   Year 2   Year 3
Plan Month   1   2   3
Current Interest Rate   7.00%    7.00%    7.00%
Long-term Interest Rate   20.00%    20.00%    20.00%
Tax Rate   25.42%    25.00%    25.42%
Other   0    0    0

7.2 Break-even Analysis
A Break-even Analysis table has been completed on the basis of average costs/prices. With fixed costs, average sales, and average variable costs, the table and chart show what we need per month to break-even.



Break-even Analysis
Monthly Revenue Break-even   $37,570
Assumptions:   
Average Percent Variable Cost   50%
Estimated Monthly Fixed Cost   $18,785
7.3 Projected Cash Flow
We are positioning ourselves in the market as a medium risk concern with steady cash flows. Accounts payable is paid at the end of each month, while sales are in cash, giving the Dollar Store an excellent cash structure. Fifty percent of cash above a TBA amount will be invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held.



Pro Forma Cash Flow
  Year 1   Year 2   Year 3
Cash Received         
Cash from Operations         
Cash Sales   $325,500    $390,600    $468,720
Subtotal Cash from Operations   $325,500    $390,600    $468,720
Additional Cash Received         
Sales Tax, VAT, HST/GST Received   $0    $0    $0
New Current Borrowing   $3,000    $0    $0
New Other Liabilities (interest-free)   $0    $0    $0
New Long-term Liabilities   $0    $0    $0
Sales of Other Current Assets   $0    $0    $0
Sales of Long-term Assets   $0    $0    $0
New Investment Received   $2,000    $0    $0
Subtotal Cash Received   $330,500    $390,600    $468,720
Expenditures   Year 1   Year 2   Year 3
Expenditures from Operations         
Cash Spending   $145,200    $151,100    $162,200
Bill Payments   $219,294    $241,402    $272,314
Subtotal Spent on Operations   $364,494    $392,502    $434,514
Additional Cash Spent         
Sales Tax, VAT, HST/GST Paid Out   $0    $0    $0
Principal Repayment of Current Borrowing   $100    $1,200    $1,200
Other Liabilities Principal Repayment   $0    $0    $0
Long-term Liabilities Principal Repayment   $0    $0    $0
Purchase Other Current Assets   $0    $0    $0
Purchase Long-term Assets   $0    $0    $0
Dividends   $0    $0    $0
Subtotal Cash Spent   $364,594    $393,702    $435,714
Net Cash Flow   ($34,094)   ($3,102)   $33,006
Cash Balance   $8,406    $5,304    $38,311
7.4 Projected Profit and Loss
We predict advertising costs will go down in the next three years. We will be able to find what has worked well for us and concentrate on those advertising methods. Normally, a start-up concern will operate with negative profits through the first two years. We will avoid that kind of operating loss by knowing our target markets.








Pro Forma Profit and Loss
  Year 1   Year 2   Year 3
Sales   $325,500    $390,600    $468,720
Direct Cost of Sales   $162,750    $195,300    $234,360
Other Costs of Goods   $0    $0    $0
Total Cost of Sales   $162,750    $195,300    $234,360
Gross Margin   $162,750    $195,300    $234,360
Gross Margin %   50.00%    50.00%    50.00%
Expenses         
Payroll   $145,200    $151,100    $162,200
Sales and Marketing and Other Expenses   $12,000    $0    $0
Depreciation   $1,143    $1,143    $1,143
Rent   $36,000    $0    $0
Utilities   $3,300    $0    $0
Insurance   $3,600    $0    $0
Payroll Taxes   $21,780    $22,665    $24,330
Other   $2,400    $0    $0
Total Operating Expenses   $225,423    $174,908    $187,673
Profit Before Interest and Taxes   ($62,673)   $20,392    $46,687
EBITDA   ($61,530)   $21,535    $47,830
Interest Expense   $34    $161    $77
Taxes Incurred   $0    $5,058    $11,847
Net Profit   ($62,707)   $15,173    $34,763
Net Profit/Sales   -19.26%    3.88%    7.42%
7.5 Projected Balance Sheet
All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2006.
Pro Forma Balance Sheet
  Year 1   Year 2   Year 3
Assets         
Current Assets         
Cash   $8,406    $5,304    $38,311
Inventory   $23,650    $28,380    $34,056
Other Current Assets   $1,000    $1,000    $1,000
Total Current Assets   $33,056    $34,684    $73,367
Long-term Assets         
Long-term Assets   $10,000    $10,000    $10,000
Accumulated Depreciation   $1,143    $2,286    $3,429
Total Long-term Assets   $8,857    $7,714    $6,571
Total Assets   $41,914    $42,399    $79,938
Liabilities and Capital   Year 1   Year 2   Year 3
Current Liabilities         
Accounts Payable   $32,221    $18,733    $22,709
Current Borrowing   $2,900    $1,700    $500
Other Current Liabilities   $500    $500    $500
Subtotal Current Liabilities   $35,621    $20,933    $23,709
Long-term Liabilities   $0    $0    $0
Total Liabilities   $35,621    $20,933    $23,709
Paid-in Capital   $82,000    $82,000    $82,000
Retained Earnings   ($13,000)   ($75,707)   ($60,534)
Earnings   ($62,707)   $15,173    $34,763
Total Capital   $6,293    $21,466    $56,229
Total Liabilities and Capital   $41,914    $42,399    $79,938
Net Worth   $6,293    $21,466    $56,229
7.6 Business Ratios
We expect our net profit margin and gross margin, to increase steadily over the three-year period. Our net working capital will increase handsomely by year three, proving that we have the cash flows to remain a going concern. The following table shows these important financial ratios, based upon NAICS industry code 452112, Discount Department Stores.

Ratio Analysis
  Year 1   Year 2   Year 3   Industry Profile
Sales Growth   0.00%    20.00%    20.00%    6.06%
Percent of Total Assets          
Inventory   56.43%    66.94%    42.60%    47.62%
Other Current Assets   2.39%    2.36%    1.25%    28.89%
Total Current Assets   78.87%    81.81%    91.78%    80.40%
Long-term Assets   21.13%    18.19%    8.22%    19.60%
Total Assets   100.00%    100.00%    100.00%    100.00%
Current Liabilities   84.99%    49.37%    29.66%    17.64%
Long-term Liabilities   0.00%    0.00%    0.00%    10.82%
Total Liabilities   84.99%    49.37%    29.66%    28.46%
Net Worth   15.01%    50.63%    70.34%    71.54%
Percent of Sales          
Sales   100.00%    100.00%    100.00%    100.00%
Gross Margin   50.00%    50.00%    50.00%    27.06%
Selling, General & Administrative Expenses   69.26%    46.12%    42.54%    9.93%
Advertising Expenses   0.00%    0.00%    0.00%    1.10%
Profit Before Interest and Taxes   -19.25%    5.22%    9.96%    3.24%
Main Ratios          
Current   0.93    1.66    3.09    3.98
Quick   0.26    0.30    1.66    1.18
Total Debt to Total Assets   84.99%    49.37%    29.66%    41.68%
Pre-tax Return on Net Worth   -996.49%    94.25%    82.89%    7.89%
Pre-tax Return on Assets   -149.61%    47.72%    58.31%    13.53%
Additional Ratios   Year 1   Year 2   Year 3   
Net Profit Margin   -19.26%    3.88%    7.42%    n.a
Return on Equity   -996.49%    70.68%    61.82%    n.a
Activity Ratios          
Inventory Turnover   10.84    7.51    7.51    n.a
Accounts Payable Turnover   7.62    12.17    12.17    n.a
Payment Days   28    41    27    n.a
Total Asset Turnover   7.77    9.21    5.86    n.a
Debt Ratios          
Debt to Net Worth   5.66    0.98    0.42    n.a
Current Liab. to Liab.   1.00    1.00    1.00    n.a
Liquidity Ratios          
Net Working Capital   ($2,564)   $13,752    $49,658    n.a
Interest Coverage   -1,821.00    126.66    606.32    n.a
Additional Ratios          
Assets to Sales   0.13    0.11    0.17    n.a
Current Debt/Total Assets   85%    49%    30%    n.a
Acid Test    0.26    0.30    1.66    n.a
Sales/Net Worth   51.73    18.20    8.34    n.a
Dividend Payout   0.00    0.00    0.00    n.a


Sales Forecast
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Sales          
Perishable Items   0%   $6,000    $6,500    $7,000    $7,500    $8,500    $9,000    $9,000    $9,000    $10,000    $12,000    $12,000    $17,000
Non-Perishible Items   0%   $12,000    $13,000    $14,000    $15,000    $17,000    $18,000    $18,000    $18,000    $19,000    $21,000    $21,000    $26,000
Total Sales      $18,000    $19,500    $21,000    $22,500    $25,500    $27,000    $27,000    $27,000    $29,000    $33,000    $33,000    $43,000
Direct Cost of Sales      Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Perishable Items      $3,000    $3,250    $3,500    $3,750    $4,250    $4,500    $4,500    $4,500    $5,000    $6,000    $6,000    $8,500
Non-Perishable Items      $6,000    $6,500    $7,000    $7,500    $8,500    $9,000    $9,000    $9,000    $9,500    $10,500    $10,500    $13,000
Subtotal Direct Cost of Sales      $9,000    $9,750    $10,500    $11,250    $12,750    $13,500    $13,500    $13,500    $14,500    $16,500    $16,500    $21,500

Personnel Plan
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Owner   0%   $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000    $2,000
Owner/Manager   0%   $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500    $2,500
Full Time   0%   $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400
Full Time   0%   $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400
Full Time   0%   $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400
Full Time   0%   $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400    $1,400
Part Time   0%   $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500
Part Time   0%   $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500
Part Time   0%   $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500
Part Time   0%   $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500
Total People      10    10    10    10    10    10    10    10    10    10    10    10
Total Payroll      $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100

General Assumptions
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Plan Month      1   2   3   4   5   6   7   8   9   10   11   12
Current Interest Rate      7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%    7.00%
Long-term Interest Rate      20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%    20.00%
Tax Rate      30.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%    25.00%
Other      0    0    0    0    0    0    0    0    0    0    0    0

Pro Forma Profit and Loss
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Sales      $18,000    $19,500    $21,000    $22,500    $25,500    $27,000    $27,000    $27,000    $29,000    $33,000    $33,000    $43,000
Direct Cost of Sales      $9,000    $9,750    $10,500    $11,250    $12,750    $13,500    $13,500    $13,500    $14,500    $16,500    $16,500    $21,500
Other Costs of Goods      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Total Cost of Sales      $9,000    $9,750    $10,500    $11,250    $12,750    $13,500    $13,500    $13,500    $14,500    $16,500    $16,500    $21,500
Gross Margin      $9,000    $9,750    $10,500    $11,250    $12,750    $13,500    $13,500    $13,500    $14,500    $16,500    $16,500    $21,500
Gross Margin %      50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%    50.00%
Expenses          
Payroll      $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100
Sales and Marketing and Other Expenses      $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000
Depreciation      $95    $95    $95    $95    $95    $95    $95    $95    $95    $95    $95    $95
Rent      $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000    $3,000
Utilities      $300    $300    $300    $300    $300    $300    $300    $300    $300    $300    $300    $0
Insurance      $300    $300    $300    $300    $300    $300    $300    $300    $300    $300    $300    $300
Payroll Taxes   15%    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815    $1,815
Other      $200    $200    $200    $200    $200    $200    $200    $200    $200    $200    $200    $200
Total Operating Expenses      $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,810    $18,510
Profit Before Interest and Taxes      ($9,810)   ($9,060)   ($8,310)   ($7,560)   ($6,060)   ($5,310)   ($5,310)   ($5,310)   ($4,310)   ($2,310)   ($2,310)   $2,990
EBITDA      ($9,715)   ($8,965)   ($8,215)   ($7,465)   ($5,965)   ($5,215)   ($5,215)   ($5,215)   ($4,215)   ($2,215)   ($2,215)   $3,085
Interest Expense      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $18    $17
Taxes Incurred      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Net Profit      ($9,810)   ($9,060)   ($8,310)   ($7,560)   ($6,060)   ($5,310)   ($5,310)   ($5,310)   ($4,310)   ($2,310)   ($2,328)   $2,973
Net Profit/Sales      -54.50%    -46.46%    -39.57%    -33.60%    -23.77%    -19.67%    -19.67%    -19.67%    -14.86%    -7.00%    -7.05%    6.91%

Pro Forma Cash Flow
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Cash Received          
Cash from Operations          
Cash Sales      $18,000    $19,500    $21,000    $22,500    $25,500    $27,000    $27,000    $27,000    $29,000    $33,000    $33,000    $43,000
Subtotal Cash from Operations      $18,000    $19,500    $21,000    $22,500    $25,500    $27,000    $27,000    $27,000    $29,000    $33,000    $33,000    $43,000
Additional Cash Received          
Sales Tax, VAT, HST/GST Received   0.00%    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
New Current Borrowing      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $3,000    $0
New Other Liabilities (interest-free)      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
New Long-term Liabilities      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Sales of Other Current Assets      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Sales of Long-term Assets      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
New Investment Received      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $2,000    $0
Subtotal Cash Received      $18,000    $19,500    $21,000    $22,500    $25,500    $27,000    $27,000    $27,000    $29,000    $33,000    $38,000    $43,000
Expenditures      Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Expenditures from Operations          
Cash Spending      $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100    $12,100
Bill Payments      $6,221    $6,931    $16,152    $17,965    $18,768    $21,013    $20,913    $20,115    $20,185    $22,318    $25,242    $23,472
Subtotal Spent on Operations      $18,321    $19,031    $28,252    $30,065    $30,868    $33,113    $33,013    $32,215    $32,285    $34,418    $37,342    $35,572
Additional Cash Spent          
Sales Tax, VAT, HST/GST Paid Out      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Principal Repayment of Current Borrowing      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $100
Other Liabilities Principal Repayment      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Long-term Liabilities Principal Repayment      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Purchase Other Current Assets      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Purchase Long-term Assets      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Dividends      $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Subtotal Cash Spent      $18,321    $19,031    $28,252    $30,065    $30,868    $33,113    $33,013    $32,215    $32,285    $34,418    $37,342    $35,672
Net Cash Flow      ($321)   $469    ($7,252)   ($7,565)   ($5,368)   ($6,113)   ($6,013)   ($5,215)   ($3,285)   ($1,418)   $658    $7,328
Cash Balance      $42,180    $42,649    $35,397    $27,832    $22,465    $16,352    $10,340    $5,125    $1,840    $421    $1,079    $8,406

Pro Forma Balance Sheet
     Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Assets   Starting Balances          
Current Assets          
Cash   $42,500    $42,180    $42,649    $35,397    $27,832    $22,465    $16,352    $10,340    $5,125    $1,840    $421    $1,079    $8,406
Inventory   $20,000    $11,000    $10,725    $11,550    $12,375    $14,025    $14,850    $14,850    $14,850    $15,950    $18,150    $18,150    $23,650
Other Current Assets   $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000    $1,000
Total Current Assets   $63,500    $54,180    $54,374    $47,947    $41,207    $37,490    $32,202    $26,190    $20,975    $18,790    $19,571    $20,229    $33,056
Long-term Assets          
Long-term Assets   $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000    $10,000
Accumulated Depreciation   $0    $95    $190    $286    $381    $476    $571    $667    $762    $857    $952    $1,048    $1,143
Total Long-term Assets   $10,000    $9,905    $9,810    $9,714    $9,619    $9,524    $9,429    $9,333    $9,238    $9,143    $9,048    $8,952    $8,857
Total Assets   $73,500    $64,084    $64,183    $57,661    $50,826    $47,013    $41,631    $35,523    $30,213    $27,932    $28,619    $29,181    $41,914
Liabilities and Capital      Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month 10   Month 11   Month 12
Current Liabilities          
Accounts Payable   $6,000    $6,395    $15,554    $17,342    $18,067    $20,315    $20,242    $19,445    $19,445    $21,475    $24,471    $22,361    $32,221
Current Borrowing   $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $3,000    $2,900
Other Current Liabilities   $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500    $500
Subtotal Current Liabilities   $6,500    $6,895    $16,054    $17,842    $18,567    $20,815    $20,742    $19,945    $19,945    $21,975    $24,971    $25,861    $35,621
Long-term Liabilities   $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0    $0
Total Liabilities   $6,500    $6,895    $16,054    $17,842    $18,567    $20,815    $20,742    $19,945    $19,945    $21,975    $24,971    $25,861    $35,621
Paid-in Capital   $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $80,000    $82,000    $82,000
Retained Earnings   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)   ($13,000)
Earnings   $0    ($9,810)   ($18,870)   ($27,181)   ($34,741)   ($40,801)   ($46,111)   ($51,422)   ($56,732)   ($61,042)   ($63,352)   ($65,680)   ($62,707)
Total Capital   $67,000    $57,190    $48,130    $39,819    $32,259    $26,199    $20,889    $15,578    $10,268    $5,958    $3,648    $3,320    $6,293
Total Liabilities and Capital   $73,500    $64,084    $64,183    $57,661    $50,826    $47,013    $41,631    $35,523    $30,213    $27,932    $28,619    $29,181    $41,914
Net Worth   $67,000    $57,190    $48,130    $39,819    $32,259    $26,199    $20,889    $15,578    $10,268    $5,958    $3,648    $3,320    $6,293  

Writing Business Plans

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Leo Lingham

Expertise

Questions could cover business analysis, business planning, business development, strategic planning, corporate planning, corporate development, manpower planning etc

Experience

18 years working managerial experience in business planning,
strategic planning, organization planning , human resource planning etc.

plus

24 years in management consulting covering business planning,strategic planning, marketing planning, product planning,
sales planning etc

Organizations
BESTBUSICON Pty Ltd--PRINCIPAL

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINISTRATION

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