Gourmet Gourmet Coffee Coffee & Espresso Espresso Shop SAMPLE BUSINESS PLAN TEMPLATE
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Table of Contents
Chapter 1: Executive Summary Chapter 2: Operations Plan Chapter 3: 3: Products and Services Chapter 4: Market Analysis Chapter 5: Sales and Marketing Plan Chapter 6: Company Management Chapter 7: Financial Plan Chapter 8: Appendices
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1.0 Execut Executive ive Summar Summaryy [Your Business Name Here] strives to provide the highest quality products and services to our customers. We believe in customer focused decision making that involves voice of customer feedback in everything we do, from the products we offer to the way we reach the market and the community, Our number one goal is to make our customer happy, no matter the cost, so that they feel confident and motivated to recommend us to their network of family, friends, and colleagues. The Products and Services [Your Business Name Here] will provide our our customers with high quality coffees, espresso, cappuccino, hot teas, teas, and small food items and desserts. desserts. We will seek out and purchase our own products for sale in the store from local, regional, and national distributors. From gourmet coffees to fresh baked goods and and snacks, our gourmet coffee shop will offer a wide range of of drinks and food targeted at our target target market including professional men and women.
The Indust Industry ry 722213 Snack and Nonalcoholic Beverage Beverage Bars Bars This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn or (2) serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption on or near the premises. These establishments may carry and sell a combination of snack, nonalcoholic beverage, and other related products (e.g., coffee beans, mugs, coffee makers) but generally promote and sell a unique snack or nonalcoholic beverage. http://www.census.gov/epcd/ec97/industry/E722213.HTM
NAICS code
NAICS Title (and link to definition)
Establishments
Sales ($1,000)
Annual payroll Paid ($1,000) employees
72
Accommodation & foodservices
545,0 545,068 68 350,3 350,399 99,19 ,194 4 97,00 97,007,3 7,396 96 r 9,451 9,451,22 ,226 6
722
Foodservices & drinking places
486,9 486,906 06 251,9 251,941 41,76 ,763 3 70,33 70,333,5 3,544 44 r 7,754 7,754,56 ,567 7
7222
Limited-service eating places
214,7 214,774 74 107,7 107,788 88,07 ,072 2 27,48 27,483,0 3,082 82 r 3,327 3,327,00 ,001 1
72221
Limited-service eating places
214,7 214,774 74 107,7 107,788 88,07 ,072 2 27,48 27,483,0 3,082 82 r 3,327 3,327,00 ,001 1
722213 Snack & nonalcoholic beverage bars
36,498 10,511,105 2,651,569
r 31 310,397
7222131 Ice cream & soft serve shops
9,753
2,120,143
488,082
69,425
7222132 Frozen yogurt shops
1,582
304,191
73,379
11,422
7222133 Donut shops
6,792
2,329,466
604,078
61,421
7222134 Bagel shops
3,926
1,445,838
399,348
45,972
3
7222135 Coffee shops
6,843
2,001,380
467,197
56,592
7222136 Cookie shops
1,798
412,655
100,003
10,908
7222137 Other snack & nonalcoholic beverage bars
5,804
1,897,432
519,482
r 54,657
Financial Considerations [Your Busines Businesss Name Here] will fund its startup startup with a capital loan from an investor in the amount amount of $100,000, $100,000, which is enough enough startup startup capital capital to purchase purchase all necessary necessary equipment and provide enough working capital to cover any cash flow deficits during the startup phase. The loan will be paid back over a 3 year period and a 10% equity equity stake in the company will be offered as consideration.
Income Statement $1,000,000 $800,000 $600,000
Gross Sales
$400,000
GROSS PROFIT
$200,000
NET PROFIT
$0 -$200,000 Year 1
Year 2
Year 3
[Your Business Name Here] objective objective is to startup startup and launch launch a successful successful gourmet gourmet coff coffee ee shop shop in the the [your market location here] which will provide top notch service and high quality quality food and beverage beveragess in a relaxing relaxing and comfortab comfortable le atmosphere. atmosphere. The keys to the success of [Your of [Your Business Name Here] include prompt, courteous service and quality quality food and drinks, drinks, strong strong relationsh relationship ip buildi building ng and maintenanc maintenance, e, keeping keeping our customers customers happy happy no matter the the cost, smart marketin marketing g and advertising advertising,, and steady steady growth generated through a firm understanding understanding of our our customers and their respective value drivers drivers and tastes. tastes.
4
2.0 Ope Operat ration ionss Plan [Your Business Name Here] strives to provide the highest quality products and services to our customers. We believe in customer focused decision making that involves voice of customer feedback in everything we do, from the products we offer to the way we reach the market market and the the community, Our number one goal is to make our customer happy, no matter the cost, so that they feel confident and a nd motivated to recommend us to their network of family, friends, and colleagues. Serving [Insert Your Geographic Area Here] with a total population of [Insert of [Insert Population Here] and served market coverage of [Insert of [Insert Number of Square Miles Here] we will will be be able able to profita profitably bly provid provide e our produ products cts and servic services es for our custom customers ers.. [Your Business Name Here] has elected to operate as a Limited Liability Corporation (LLC). An LLC is easy to set up, has lower state taxes, taxes, is more flexible, the owners have limited liability for the actions and debts of the company, and it is suitable for smaller companies with a single owner. As an LLC, [Your Business Name Here] can elect to be taxed as a sole proprietor, partnership, S corporation or C corporation, providing much flexibility. Upon comparing different different entities of business and for valid business reasons, [Your Business Name Here] will will elect elect to execut execute e a tax-free tax-free merg merger er into into an S-Cor S-Corp. p. This This provides provides for less adminis administrativ trative e paperwork paperwork and record record keeping, keeping, while still allowing allowing for the financial financial benefit benefit of pass-throu pass-through gh taxation. taxation.
Startup Startup Expenses
$25,000
Inventory Office Supplies/M Supplies/M aterials aterials Sales Sales and and M arketi arketi ng
$20,000
Equipment/Software/Hardware Remodeling/Décor
$15,000 $10,000
Legal/Financial/Consulting Insurance Rent/Deposit Other 1 Other 2
$5,000
Other 3 Other 4
$0
Other 5
5
Startup Expenses Inventory Office Supplies/Materials Sales and Marketing Equipment/Software/Hardware Remodeling/Décor Legal/Financial/Consulting Insurance Rent/Deposit Other 1 Other 2 Other 3 Other 4 Other 5 TOTAL ST ARTUP EXPENSES
$20,000 $500 $15,000 $25,000 $25,000 $1,000 $1,000 $3,000 $0 $0 $0 $0 $0 $90,500
[Your Business Name Here] will operate operate out of of a rented rented retail business business locatio location n to keep keep capital startu startup p investment investmentss low. Our operatin operating g headquarte headquarters rs are located located at [Insert Your Address Here] which is centrally located to the served market and is equipped to provide provide our products products and and services services in a comfortab comfortable le and clean atmosphere atmosphere..
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3.0 Products and Services
[Your Business Name Here] will offer offer the the following following core products products to our our customers customers,, with additional products added as demand demand and feedback from our customers customers indicates. • • • • • • •
Gourmet coffee and espresso Cappuccino, Lattes, and Mochas Sandwiches and Sides Pastries and Cookies Soda, Juice, and other beverages Soups and Salads Other Items as identified during startup and based on supplier offering
[Your Business Name Here]’s Here] ’s competitors in our served geographic geographic market, including their respective strengths and weaknesses, include: Competitor #1 a. Strengths i. Website ii. Time in Business iii. Relationsh Relationships ips with customers customers iv. Variet Varietyy of menu menu offere offered d v. Price vi. Atmosphere vii. Economies of scale b. Weaknesses i. Customer service ii. Product Product offering offering iii. Marketing and Advertising 2. Competitor #2 3. Competitor #3 1.
[In this section, enter your market’s top 3 unique competitors and list their strengths and weaknesses. Example strengths and weaknesses weaknesses are listed above under Competitor Competitor #1.]
A collection of sales literature, listed below, will be developed develope d to ensure [Your Business Name Here] presents a consistent image to the market and to effectively communicate the value value of the the products products offered offered to potent potential ial customers customers in an integrat integrated ed marketing marketing campaign.
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• • • • • • • •
8.5x11" Full Page 4 Color Flyer 8.5x11" 8.5x11" Tri-Fold 4 Color Brochure Brochure 4 Color Postcard Business Business Card Card Design Envelope Design with Business Business Name and and Logo Fax and Letter Head Design Location Location Signage Signage Website
Supplies required to operate the business on a day-to-day day -to-day basis will be procured from local suppliers suppliers.. These supplies supplies include include office office supplies, supplies, packaging, packaging, condiments condiments and and supplies, cups, cups, lids, napkins and other paper paper items, marketing materials, merchandising displays, and other tangibles required required to service our customers, customers, display the products, and execute execute the services services we offer. Equipment will be procured from local distributors and retailers and store improvements will be contracted out to local tradesmen. Ingredients for our menu will be b e procured from local and regional suppliers.
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4.0 Market Analysis 722213 Snack and Nonalcoholic Beverage Beverage Bars Bars This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn or (2) serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption consumption on or near the premises. These establishments may carry and sell a combination of snack, nonalcoholic beverage, and other related products (e.g., coffee beans, mugs, coffee makers) but generally promote and sell a unique snack or nonalcoholic beverage. beverage. http://www.census.gov/epcd/ec97/industry/E722213.HTM
NAICS code
NAICS Title (and link to definition)
Establishments
Sales ($1,000)
Annual payroll Paid ($1,000) employees
72
Accommodation & foodservices
545,0 545,068 68 350,3 350,399 99,19 ,194 4 97,00 97,007,3 7,396 96 r 9,451 9,451,22 ,226 6
722
Foodservices & drinking places
486,9 486,906 06 251,9 251,941 41,76 ,763 3 70,33 70,333,5 3,544 44 r 7,754 7,754,56 ,567 7
7222
Limited-service eating places
214,7 214,774 74 107,7 107,788 88,07 ,072 2 27,48 27,483,0 3,082 82 r 3,327 3,327,00 ,001 1
72221
Limited-service eating places
214,7 214,774 74 107,7 107,788 88,07 ,072 2 27,48 27,483,0 3,082 82 r 3,327 3,327,00 ,001 1
722213 Snack & nonalcoholic beverage bars
36,498 10,511,105 2,651,569
r 31 310,397
7222131 Ice cream & soft serve shops
9,753
2,120,143
488,082
69,425
7222132 Frozen yogurt shops
1,582
304,191
73,379
11,422
7222133 Donut shops
6,792
2,329,466
604,078
61,421
7222134 Bagel shops
3,926
1,445,838
399,348
45,972
7222135 Coffee shops
6,843
2,001,380
467,197
56,592
7222136 Cookie shops
1,798
412,655
100,003
10,908
7222137 Other snack & nonalcoholic beverage bars
5,804
1,897,432
519,482
r 54,657
[Your Business Name Here] will will market market its servic services es to lower lower and and middle middle aged aged men men and women as they are are determined determined to to be the primary frequent frequent visitors visitors to gourmet gourmet coffee coffee shops where where they can enjoy enjoy a deliciou deliciouss snack, snack, coffee, coffee, and entert entertainme ainment nt in a relaxing relaxing and friendly environment. [In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc. based on your location and served geographic area.]
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Annual Revenue and Cost by Product Category $180,000.00 $160,000.00 $140,000.00 $120,000.00 $100,000.00 $80,000.00 $60,000.00
TOTAL REVENUE
$40,000.00
TOTAL COST
$20,000.00 $0.00 1 2 3 4 5 6 7 8 9 1 0 c e i c e i c e i c e i c e i c e i c e i c e i c e c e i v v v v v v v v v i e r S e r S e r S e r S e r S e r S e r S e r S e r e r v / S / / / / / / / / S t t t t t t t t t c c c c c c c c c t / d u o d u o d u o d u o d u o d u o d u o d u o d u d u c r o r r r r r r r r P P P P P P P P P P r o
Monthly Revenue and COGS
$45,000.00 $40,000.00 $35,000.00 $30,000.00 $25,000.00 Revenue
$20,000.00
Cost $15,000.00 $10,000.00 $5,000.00 $0.00 1
2
3
4
5
6
7
8
9
10
11 11
12 12
Month
[Your Business Name Here] will offer our products and services to the target markets identified above. We will reach our target market segments in the following ways: 1. 2. 3. 4. 5. 6.
Advertising in the yellow pages, both print and online. Direct Mail marketing campaigns to our target market. Signage on our building and all vehicles used used Advertising in local newspapers and other media Webs Websit ite e – 5 pag page e with with onlin online e me menu nu Business cards, flyers, and brochures brochures handed out to potential potential customers as opportunities present themselves.
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Our company will be competing competing with other restaurants restaurants and cafes throughout the area including including those those that offer offer a similar similar menu menu to their their customers. customers. We will provide our customers customers with a comfortable, safe place to grab a coffee and light snack or just just have a drink drink while enjoying enjoying the relaxing relaxing environment environment and courteous courteous service.
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5.0 Sales and and Marketing Marketing Strategy Strategy [Your Business Name Here] will achieve or exceed its sales forecasts through an aggressive marketing and and advertising campaign, relationship building, building, and competitive business structure that offers additional value to our customers customers compared compared to other other local coffee bars, restaurant restaurantss and cafes. cafes. Our competitiv competitive e edge will be our our high quality quality and affordable affordable menu menu and prompt, prompt, courteous courteous service. service. By offering offering great tasting tasting food, food, high quality quality service, service, and depend dependable able results results all in a relaxing relaxing and comforta comfortable ble environmen environmentt we can offer offer more value value to our customer than the competition. We will launch an integrated marketing campaign that is specifically developed to showcase the strengths of our business model and menu, our guarantee of quality and satisfaction, and our value proposition that offers offer s more value to the customer than available alternatives. We will develop and market an image of a high quality provider of our products products and and services. services. This image image will be presented presented in our our marketing marketing materials, materials, sell sheets, signage, website, and the presentation and attitude of our employees. Service will be completed with a smile, and the customer will receive unparalleled service and response to questions, problems, or requests. In addition to actively and aggressively pursuing new customers, [Your Business Name Here] will also operate with the knowledge that effective marketing achieves positive scale when current customers customers are 100% satisfied and recommend our bar to their network of friends, family, and associates. By developing a strong strong reputation for exceptional style, quality, and value we can be assured that that current customers will not have a reason to look elsewhere and readily recommend us to their friends, family, and associates. [Your Busin Business ess Name Here] Here] will identify identify the geograp geographic hic target target market market segment. segment. We will then execute a multi multi level marketing and advertising campaign, consisting consisting of direct mail and advertising in local newspapers and other media. All marketing and advertising media will wil l be consistent and professional, presenting an image of a well established and successful Pizzeria restaurant. The chart and table below illustrates the forecasted sales revenue anticipated by [Your Business Name Here]. Year over year growth growth for the first first three years is 10%, and this high growth rate is reflective of a new business penetrating penetrating the market aggressively aggressively through a highly targeted targeted and well executed marketing campaign. Subsequent annual growth is forecasted to be be around 5% which is based on economic economic growth within the targeted targeted geographi geographicc market and new customers. customers.
12
Monthly Revenue and COGS
$45,000.00 $40,000.00 $35,000.00 $30,000.00 $25,000.00 Revenue
$20,000.00
Cost $15,000.00 $10,000.00 $5,000.00 $0.00 1
2
3
4
5
6
7
8
9
10
11 11
12 12
Month
Year Over Year Growth Revenue and COGS COGS
$900,000.00 $800,000.00 $700,000.00 $600,000.00 $500,000.00
Revenue
$400,000.00
COGS
$300,000.00 $200,000.00 $100,000.00 $0.00 Year 1
Year 2
Year 3
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2nd and 3rd Year Anticipated Anticipated Revenue Growth and COG C OGS S Increase 30% 25% 20% 15% 10% 5% 0% Year 2 Revenue Growth Rate
Year 2 Cost Increase Rate
Year 3 Revenue Growth Rate
Year 3 Cost Increase
[Your Business Name Here] will offer competitiv competitive e pricing pricing on its items to their their customers customers that are in line line with other other competitor competitors. s. This is is importa important nt to to secure secure the the business business and to meet our sales forecasts, and to ensure that our customers become repeat visitors to our Pizzeria Pizzeria restauran restaurant. t. Price elasticit elasticityy has been been proven proven to exist exist to some some degree degree in the industry, industry, so if if a business business charges charges too much much for their their products products they will will experience experience a drop drop in sales, at least short term until the the customers get used to the increase, which exceeds the value of the additional margin made in the sales. Although our pricing strategy strategy will be competitive with our competition, competition, our shop’s printed printed price will will be slightly slightly higher higher and we will run run sales and offer offer coupons coupons to bring bring our price in line with the rest of the market, such as punch cards to receive free product, special deal drinks, and daily specials. specials. This will be done so the customer feels they are getting getting a deal on our our product product and are receiving receiving extra extra value. value. This is a proven, proven, valid strategy in the price competitive market we are operating in, and generates a repeat customer base that will be critical to our long term success. Below are the top level milestones in the startup and launch of [Your Business Name Here] in [Enter Year of Launch Here], Here] , starting [En [Enter ter Start Start Dat Date e of Timelin Timeline] e]..
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15
6.0 Management Summary
[Your Business Name Here] will be structured around the following core disciplines. 1. Owner – Operator 1. Sale Sales, s, Mark Market etin ing g 2. Operat eratiions 3. Finance 4. Strate Strategy gy Develo Developme pment nt and and Deploy Deploymen mentt 2. Cash Cashie ierr and and Staff taff
[Owner - Opera [Owner Operator tor Name] – [Add detail abou aboutt what they bring to the the busines businesss as the owner-manag owner -manager, er, includin including g strengths strengths,, experience, experience, age, educatio education, n, etc.] etc.] Opti Optional onal – Add a picture Employee Annual Salary Overview
Owner Employee 1 Employee 2 Employee 3 Employee 4 Employee 5 Employee 6 Employee 7 Consultant 1 Consultant 2
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EMPLOYMEN EMPLOY MENT T PLAN PLAN - MON MONTHL THLY Y AND ANNU ANNUAL AL TOTALS Janua January ry - Dece Decembe mberr Owner Employee 1 Employee 2 Employee 3 Employee 4 Employee 5 Employee 6 Employee 7 Consultant 1
Monthly Salary $5,000.00 $3,750.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $0.00 $0.00 $50.00
# of People 1 1 1 1 1 1 1 1 1
TOTAL SALARY $60,000 $45,000 $30,000 $30,000 $30,000 $30,000 $0 $0 $600
Consultant 2
$50.00
1
$600
TOTAL
$226,200
EMPLOY EMP LOYMEN MENT T PLAN PLAN - ANNU ANNUAL AL GROWT GROWTH H RATE RATE Growth Rate (%) Owner Employee 1 Employee 2 Employee 3 Employee 4 Employee 5 Employee 6 Employee 7 Consultant 1 Consultant 2
Year 1 0.00% $60,000 $45,000 $30,000 $30,000 $30,000 $30,000 $0 $0 $600 $600
Year 2 3.00% $61,800 $46,350 $30,900 $30,900 $30,900 $30,900 $0 $0 $618 $618
Year 3 3.00% $63,654 $47,741 $31,827 $31,827 $31,827 $31,827 $0 $0 $637 $637
TOTAL
$226,200
$232,986
$239,976
17
7.0 Financial Plan [Your Business Name Here] will fund fund its startup startup with with a capital loan loan from an investo investorr in the amount amount of $100,000, $100,000, which is enough enough startup startup capital to purchase purchase all necessar necessaryy equipment equipment and provide provide adequate adequate working working capital during during the startup startup phase. phase. The loan will be paid back over a period of 3 years and a 10% equity stake in the company will be offered as consideration. 7.1 StartStart-up up Summar Summary y
Startup Startup Expenses Inventory
$25,000
Office Supplies/M Supplies/M aterials aterials Sales Sales and M arketing
$20,000
Equipment/Software/Hardware Remodeling/Décor Legal/Financial/Consulting
$15,000
Insurance Rent/Deposit
$10,000
Other 1 Other 2
$5,000
Other 3 Other 4 Other 5
$0
Startup Assets
$20,000 Current Assets - Cash
$15,000
Current Assets - Inventory Other 1 Other 2
$10,000
Other 3 Other 4 Other 5
$5,000
Long Term Assets
$0
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Funding Sources
$100,000 Owner 1 Owner 2
$80,000
Owner 3 Investor 1
$60,000
Investor 2 Investor 3
$40,000
Bank 1 Bank 2 Bank 3
$20,000 $0
7.2 Financial Financial Inputs Inputs
Financial Inputs
Sales on Credit % Employee Benefits as % of Salary Returns as % Of Sales Commission % Of Sales Payroll Tax Rate Income Tax Rate Interest Rate - Capital Loans Interest Rate - Revolving Credit 0.00% 0.00%
5.00% 5.00% 10.00 10.00% % 15.00 15.00% % 20.00 20.00% % 25.00 25.00% % 30.00% 30.00%
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7.3 Balance Balance Sheet Sheet BALANCE SHEET ASSETS Current Assets Cash Accounts Receivable Inventor y Other Current Assets Total Current Assets Fixed Assets Land Facilities Equipment (Less Accumulated Depreciation) Total Fixed Assets Other Assets TOTAL ASSETS
Year 1
Year 2
Year 3
$20,321
$82,436
$262,826
$40,321
$82,436
$262,826
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$65,321
$107,436
$287,826
$20,000
LIABILITIES Current Liabilities Short Term Notes Payable Income Taxes Due Other Current Liabilities Total Current Liabilities
0
$21,649
$63,204
$0
$21,649
$63,204
Long Term Liabilities Long Term Notes Payable Other Long Term Liabilities Total Long Term Liabilities
$0
$0
$0
NET WORTH Paid In Capital Retained Earnings Total Equity TOTAL LIABILITIES AND EQUITY
$1,000 $64,321 $65,321 $65,321
$85,788 $85,788 $107,436
$224,621 $224,621 $287,826
20
Balance Sheet $300,000 $250,000 $200,000
TOTAL ASSETS
$150,000 TOTAL LIABILITIES AND EQUITY
$100,000 $50,000 $0 Year 1
Year 2
Year 3
7.4 BreakBreak-Eve Even n Point Point A key factor factor will be the the success success of the the securing securing customers customers cost cost effectivel effectivelyy to achieve achieve the sales forecasts. forecasts. In this this business business it often often takes time to develop develop a consisten consistentt customer customer and and referral base, and a positive positive name in the community. community. Monthly Break Even Analysis
Monthly Fixed Cost
Break Even (Revenue)
0 $
0 0 0 , 5 $
0 0 0 , 0 1 $
0 0 0 , 5 1 $
0 0 0 , 0 2 $
0 0 0 , 5 2 $
0 0 0 , 0 3 $
0 0 0 , 5 3 $
0 0 0 , 0 4 $
0 0 0 , 5 4 $
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Annual Break Even Analysis
Annual Fixed Fixed Cost Cost
Break Even Even ( Revenue)
0 $
0 0 0 , 0 5 $
0 0 0 , 0 0 1 $
0 0 0 , 0 5 1 $
0 0 0 , 0 0 2 $
0 0 0 , 0 5 2 $
0 0 0 , 0 0 3 $
0 0 0 , 0 5 3 $
0 0 0 , 0 0 4 $
0 0 0 , 0 5 4 $
0 0 0 , 0 0 5 $
7.5 Income State Statement ment
Income Statement $1,000,000 $800,000 $600,000
Gross Sales
$400,000
GROSS PROFIT
$200,000
NET PROFIT
$0 -$200,000 Year 1
Year 2
Year 3
22
G&A Expense Breakdown Salaries and Wages Emplo Emplo yee Benefit Benefit s Payroll Taxes Taxes Professio nal nal Services M arketing and and Advert ising
Rent Equip ment ment Rental
Maint enance enance
Depreciation
Insurance Util iti es & Phone Offi ce Supplies Travel & Entert ainment ainment Entert ainment ainment Interest on Loans Professio nal nal Design Services Cleaning Services
INCOME STATEMENT
Year 1
Year 2
Year 3
Income Gross Sales (Commissions) (Returns and Allowances) Net Sales (Cost of Goods) GROSS PROFIT
$480,600 $0 $24,030 $456 $456,5 ,570 70 $178,200 $278 $278,3 ,370 70
$624,780 $0 $31,239 $593 $593,5 ,541 41 $187,110 $406 $406,4 ,431 31
$812,214 $0 $40,611 $771 $771,6 ,603 03 $196,466 $575 $575,1 ,138 38
Expenses (General and Administrative) Salaries and W ages Employee Benefits Payroll Taxes Professional Services Marketing and Advertising Rent Equipment Rental Maintenance Depreciation Insurance Utilities & Phone Office Supplies Travel & Entertainment Entertainment Interest on Loans Professional Design Services Cleaning Services TOTAL EXPENSES Net Income Before Taxes Prov Provis isio ion n for for Taxe Taxes s on Inco Income me NET PROFIT
$226,200 $33,930 $27,144 $250 $5,000 $18,000 $0 $2,000 $500 $500 $1,000 $25 $0 $0 $0 $0 $0 $314 $314,5 ,549 49 -$36,179 -$9, -$9,40 407 7 -$26 -$26,7 ,772 72
$232,986 $34,948 $27,958 $250 $5,000 $18,000 $0 $2,000 $500 $500 $1,000 $25 $0 $0 $0 $0 $0 $323 $323,1 ,167 67 $83,264 $21,6 21,64 49 $61, $61,61 615 5
$239,976 $35,996 $28,797 $250 $5,000 $18,000 $0 $2,000 $500 $500 $1,000 $25 $0 $0 $0 $0 $0 $332 $332,0 ,044 44 $243,094 $63 $63,204 ,204 $179 $179,8 ,889 89
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7.6 Cash Cash Flow Flow Statem Statement ent Cash is king, and it is critical to our success that we maintain a positive cash position throughout our term of business. CASHFLOW STATEMENT CASH RECEIPTS Income From Sales Cash Sales Collections Total Cash From Sales Income From Financing Interest Income Loan Proceeds Equity Capital Investments Total Cash From Financing Other Cash Receipts TOTAL CASH RECEIPTS CASH DISBURSEMENTS Inventory Operating Expenses Commi mmissions/Retu Return rns s/All /Allow owa ances Capital Purchases Loan Payments Income Tax Payments Investor Dividend Payments Owner’s Draw TOTAL CASH DISBURSEMENTS NET CASH FLOW Opening Cash Balance Cash Receipts Cash Disbursements ENDING CASH BALANCE
Year 1
Year 2
Year 3
$480,600
$624,780
$812,214
$480 $480,6 ,600 00
$624 $624,7 ,780 80
$812 $812,2 ,214 14
$580 $580,6 ,600 00
$624 $624,7 ,780 80
$812 $812,2 ,214 14
$20,000 $492,249 $24,03 ,030 $25,000
$509,777 $3 $31,23 ,239
$528,009 $40,61 ,611
0
$21,649
$63,204
$561 $561,2 ,279 79
$562 $562,6 ,665 65
$63 $631,8 1,825 25
$1,000 $580,600 $561,279 $20,3 20,32 21
$20,321 $624,780 $562,665 $82, $82,43 436 6
82436.197 $812,214 $631,825 $262, 262,8 826
$100,000
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Cashflow Statement $900,000 $800,000 $700,000 $600,000 $500,000
Cash Receipts
$400,000
Cash Disbursements ENDING CASH BALANCE
$300,000 $200,000 $100,000 $0 Year 1
Year 2
Year 3
7.7 Ratios Ratios Ratio Analysis
Year 1
Year 2
Year 3
Liquidity Ratios Current Ratio Quick Ratio
#DIV/0! #DIV/0!
3.81 3.81
4.16 4.16
Efficiency Ratios Fixed Asset Turnover Total Asset Turnover
19.22 7.36
24.99 5.82
32.49 2.82
Profitability Ratios Gross Margin Net Profit Margin Return On Assets Return On Equity
0.58 -0.06 -0.41 -0.41
0.65 0.10 0.57 0.72
0.71 0.22 0.62 0.80
Solvency Ratios Debt To Equity Debt To Assets Coverage Of Fixed Costs
1.53 1.53 0.88
1.17 0.93 1.26
0.45 0.35 1.73
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