NAME CLASS 2014-2015
SPECIMEN PROFORMA OF PROJECT REPORT (PHOTOGRAPHY (PHOTOGRAPHY STUDIO) PROJECT REPORT OF THE ENTERPRISE
NAME OF THE UNITS AND ADDRESS Ms. Duggal photography studio Greater Kailash TELEPHONE Office Personal
xxxxx xxxxx xxxxx xxxxx
NAME AND ADDRESS OF THE PROMOTER S. Amarjeet Duggal D-!!" Mayapuri" #e$ Delhi - %%!& CONSTITUTION OF THE FIRM Proprietor firm QUALIFICATION OF THE ENTREPRENEUR % years free lance photography experience LOCATION M 'loc( Mar(et Greater Kailash Mar(et NAME AND ADDRESS OF THE BANK )D*+ 'A#K G,A, KA/0AS) MA,K
SPECIMEN PROFORMA OF PROJECT REPORT (PHOTOGRAPHY (PHOTOGRAPHY STUDIO) PROJECT REPORT OF THE ENTERPRISE
NAME OF THE UNITS AND ADDRESS Ms. Duggal photography studio Greater Kailash TELEPHONE Office Personal
xxxxx xxxxx xxxxx xxxxx
NAME AND ADDRESS OF THE PROMOTER S. Amarjeet Duggal D-!!" Mayapuri" #e$ Delhi - %%!& CONSTITUTION OF THE FIRM Proprietor firm QUALIFICATION OF THE ENTREPRENEUR % years free lance photography experience LOCATION M 'loc( Mar(et Greater Kailash Mar(et NAME AND ADDRESS OF THE BANK )D*+ 'A#K G,A, KA/0AS) MA,K
ACKNOWLEDGEMENT
/ am 1ery 1ery than than(f (ful ul to e1er e1eryo yone ne $ho $ho all all supp suppor orte ted d me" me" for for / ha1e ha1e completed my project effecti1ely and moreo1er on time.
/ am e2ually grateful to my teacher 3333333333 $ho ga1e me moral support and guided me in different matters regarding the topic. she had 4een 1ery (ind and patient $hile suggesting me the outlines of this project and correcting my dou4ts. / than( her for her o1erall supports.
0ast 4ut not the least" / $ould li(e to than( my parents $ho helped me a lot in gathering different information" collecting data and guiding me from from time time to time time in ma(in ma(ing g this this proj projec ect. t. Desp Despit ite e of thei theirr 4usy 4usy sched schedul ules es"" they they ga1e ga1e me diff differ eren entt idea ideas s in ma(i ma(ing ng this this proj projec ectt uni2ue.
han(ing you you
Name
CLASS
EXECUTIVE SUMMARY !
OBJECTIVES
"!
MISSION
#!
KEYS TO SUCCESS
$!
COMPANY SUMMARY
%!
COMPANY OWNERSHIP
&!
START'UP SUMMARY
!
SERVICES
!
MARKET ANALYSIS SUMMARY
*!
MARKET SEGMENTATION
+!
TARGET MARKET SEGMENT STRATEGY
!
SERVICE BUSINESS ANALYSIS
"!
COMPETITION AND BUYING PATTERNS
#!
STRATEGY , IMPLEMENTATION SUMMARY
$!
COMPETITIVE EDGE
%!
MARKETING STRATEGY
&!
SALES STRATEGY
!
SALES FORECAST
!
MILESTONES
*!
MANAGEMENT SUMMARY
20.
PERSONNEL PLAN
"!
FINANCIAL PLAN
""!
START'UP FUNDINGBREAK'EVEN ANALYSIS
"#!
PROJECTED PROFIT AND LOSS
"$!
PROJECTED BALANCE SHEET
"%!
BUSINESS RATIOS
"&!
LONG'TERM PLAN
EXECUTIVE SUMMARY Ms. D5GGA0 +ommercial Photography" located in and ser1ing Delhites $ill ser1e small and medium-si6ed 4usinesses and nonprofits for all of their studio photography needs 4y creating 4eautiful shots that ser1e the client7s needs" offering excellent ser1ice and flexi4ility $ith a personal touch" and offering 1alueadded ser1ices related to photography. *ounded and directed 4y 1eteran freelance commercial photographer Priyan(a D5GGA0" Ms. Duggal+ommercial Photography intends to raise `8"9%"%%% 4y adding limited partners to the 4usiness in order to open a studio space" hire staff" and undergo a ne$ mar(eting campaign.
Sales and profits from the 4usiness are projected to rise steadily" from `98":%"%%% re1enues and `8%%"%%% profits in the first year to `&8%%"%%% re1enues and `;;%"%%% profits in year 8. Gross margins and net profit margins $ill 4e relati1ely steady at &8< and 9< respecti1ely.
he (eys to success for the 4usiness include=
sta4lishing Ms. Duggal Photography as flexi4le to the needs of small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo editing" and framing of photos in a 1ariety of digital formats
Ma(ing 4usinesses feel at home at studio > part of creati1ity.
OBJECTIVES Ms. Duggal +ommercial Photography see(s to enter the top three commercial
photography
pro1iders
in
the
,ochester"
#3
metropolitan area $ithin fi1e years. ?e see( the follo$ing o4jecti1es $ithin that fi1e year period=
o 4e in the top three photography studios of mar(et share
o exceed `;%% thousand in annual re1enue
o support fi1e full-time staff
MISSION Ms. Duggal+ommercial Photography see(s to ser1e small and medium-si6ed 4usinesses and non-profits for all of their studio photography needs 4y creating 4eautiful shots that ser1e the client7s needs" offering excellent ser1ice and flexi4ility $ith a personal touch" and offering 1alue-added ser1ices related to photography. Ms. Duggalintends to offer personali6ed ser1ice to ma(e it easy for small 4usinesses to outsource their photography needs. KEYS TO SUCCESS
sta4lishing Ms. DuggalPhotography as flexi4le to the needs of small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo editing" framing" and production of photos in a 1ariety of formats
Ma(ing 4usinesses feel at home in studio > part of creati1ity.
COMPANY SUMMARY Ms.
Duggal+ommercial
Photography
$ill
4e
4ased
in
a
con1eniently-located studio space $ithin the commercial centre of Greater Kailash area. he company $as founded 4y Priyan(a D5GGA0 in ;;;. *or more than ten years" Ms. Duggal has operated as a freelance photographer speciali6ing in commercial shoots" esta4lishing a reputation among small 4usinesses as a professional and talented photographer. O1er this time" D5GGA07s 4usiness has steadily gro$n" including a 1ariety of returning clients $ho rely on Ms. Duggalfor their product photography for pamphlets" 4rochures" $e4sites" and other mar(eting collateral. Ms. Duggalhas operated $ithout a de1oted studio during this time" tra1eling to client sites and setting up a studio space $here1er possi4le.
COMPANY OWNERSHIP Ms. Duggal +ommercial Photography $as esta4lished as a sole proprietorship in ;;; and is currently 4eing re-esta4lished as a limited lia4ility partnership to facilitate the participation of in1esting partners. +urrently" all shares of Ms. Duggal +ommercial Photography are o$ned 4y M-! D.//a0!
START'UP SUMMARY Start-up expenses include the legal fees associated $ith reincorporating the 4usiness" permits associated $ith a studio space" and the 4uild-out of the studio space.
Mar(eting includes a promotional campaign to alert customers and potential customers to the ser1ices and capacity Ms. Duggal +ommercial Photography is adding. ,ent includes t$o months of studio rent to co1er the 4uild-out period and t$o additional months for a security deposit.
0ong-term assets include additional photography e2uipment @cameras" tripods" 4ac(drops" *lashes" lighting that must 4e purchased.
START-UP ,B5/,M#S
Start-up xpenses 0egal Stationery etc. /nsurance ,ent Mar(eting Studio 'uild-Out otal Start-up xpenses Start-up Assets +ash ,e2uired Other +urrent Assets 0ong-term Assets otal Assets otal ,e2uirements
` !8"%%% ` %"%%% ` %"%%% ` C%"%%% ` "%%"%%% ` !%"%%% ` !"8"%%% ` "8%"%%% ` %"%%% ` 9"%%"%%% ` ":%"%%% ` 1+%1+++
SERVICES Ser1ices to 4e offered include the follo$ing=
Studio commercial photography
On-site commercial photography
Set dressing ser1ices for photo shoots
Photo editing and digital editing $or(
Deli1ery of prints or digital files of photo shoots
*raming of photos
?e4 portal to access digital files from shoots and manage editing process $ith clients
,ental
of
the
studio
space
to su4contractors
$hen
time allo$s
/n the future" as additional staff is added" there are plans to offer graphic design ser1ices for the photos ta(en" and to expand to a multi-room studio to allo$ for multiple shoots simultaneously.
MARKET ANALYSIS SUMMARY he mar(et for commercial photography includes all 4usinesses and non-profits. *or Ms. Duggal +ommercial Photography" the target mar(et is small and medium-si6ed 4usinesses and nonprofits @those $ith Marriages and parties etc. 4ased $ithin the city limits of Delhi #+,.
/n the past t$o years" the mar(et for commercial photography in +ity has contracted due to the recent economic do$nturn. /t is estimated 4y the /ndian +ham4er of +ommerce that commercial
photography has shrun( from `8.& million to `.8 million annual re1enues
since
t$o
years
ago.
Small
and
medium-si6ed
4usinesses $hich formerly used large commercial studios can no longer afford their rates. his has created an opportunity for smaller photography studios $ith lo$er o1erhead and prices to ser1e this mar(et and sei6e mar(et share in time for a mar(et ups$ing.
MARKET SEGMENTATION Ve23 Sma00 B.-45e--e-6 hese 4usinesses are generally run 4y their o$ners. Photography needs tend to 4e for their 4asic mar(eting
collateral
@signs"
menus"
pamphlets"
4rochures"
$e4sites" ne$sletters" etc.. hese 4usinesses generally 4egin 4y ta(ing these photographs in-house" 4ut" o1er time" determine that this method produces su4-standard results. hey then see( inexpensi1e freelance photographers $ho can 2uic(ly handle their needs.
Sma00 B.-45e--e-6 hese 4usinesses ha1e ongoing and regular needs for photography of their products and ser1ices" such as 2uarterly catalogs. hey appreciate esta4lishing relationships $ith 1endors $ho understand their $ay of $or(ing" allo$ them access to the creati1e process" and reduce the stress of creating mar(eting materials. hey prefer to $or( $ith one 1endor for all photography needs and $ill 4e reluctant to change that 1endor once it is found.
Me74.m
B.-45e--e-6
hese
4usinesses
ha1e
mar(eting
departments $hich outsource photography to photo studios. hey ha1e a higher 1olume of photography needs than smaller 4usinesses and pay great attention to the 2uality of the images as $ell as the price. Eolume discounts may 4e needed to retain 4usinesses in this category.
MARKET ANALYSIS
Yea2
Yea2 " Yea2 #
Yea2
Yea2
$
%
Potential
G289:;
+ustomers Eery Small
%<
"%%%
"%%
"!%
"99
":
%.%%<
'usinesses Small
8<
8%%
8&8
::
&:%
C&
.;C<
'usinesses Medium
!%<
!%%
!%
!CC
9:
8
!%.%!<
1*%
"1%*
"1$#
"1%#
"!<
CAGR
'usinesses otal "!< 1++
+hart= Mar(et Analysis @Pie
TARGET MARKET SEGMENT STRATEGY 0arger 4usinesses in the city are ser1ed 4y large studios $ho can send photographers to the client site or set up shoots $ith little notice. hese 4usinesses re2uire photography 1endors $ith the capacity to shoot in multiple locations at the same time.
Smaller 4usinesses" on the other hand" are comforta4le $or(ing $ith smaller photography studios. hey are generally unhappy $ith larger studios" as they find they are not a priority compared $ith the larger clients of the studio. hey $ant the same le1el of ser1ice" scaled to the needs and 4udget of their 4usiness" and only a smaller studio can pro1ide this.
*urthermore" larger 4usinesses often 4ring a great deal of photo editing $or( in-house to their mar(eting departments. Smaller 4usinesses 1alue the a4ility of a photo studio to handle this $or( as their mar(eting or design departments often do not ha1e the capacity to deal $ith this $or( $hen ne$ materials are 4eing de1eloped.
Medium and small 4usinesses can pro1ide ongoing $or(. )o$e1er" $ithout ser1ing 1ery small 4usinesses" Ms. Duggal$ill miss out on capturing smaller customers 4efore they gro$. ?or(ing $ith 1ery small 4usinesses can also pro1ide a $ide 4ase of customers" ma(ing the re1enue streams of the 4usiness less suscepti4le to the loss of any one customer.
SERVICE BUSINESS ANALYSIS he commercial photography industry is characteri6ed 4y local photo studios $hich ser1e cities or small regions. Eery fe$ 4usinesses gro$ 4eyond this geographic range. ?ithin a local mar(et" there are do6ens of photo studios in operation. 'usinesses see( photography 1endors through referrals" internet search" and the local yello$ pages. Photography studios generally 4ase their charges on the time of the shoot as $ell as the num4er of edited photos pro1ided.
Specific competitors for +ommercial Photography include=
Ca=4:a0 S:.748- - sta4lished !8 years ago and operating a small studio" this company focuses on product photography only
T40a> S:.748 - sta4lished % years ago" this company does not operate a studio" 4ut uses student photographers to offer lo$erpriced on-site photography shoots
M-! D.//a0 P;8:8/2a=;e2- - sta4lished 9 years ago" this company su4contracts all of its photography $or( to freelance photographers" acting as a 4ro(er 4et$een these freelancers and clients. his leads to a lo$er le1el of 2uality assurance" and some client dissatisfaction
COMPETITION AND BUYING PATTERNS here are 1ery fe$ 4arriers to entry into the commercial photography 4usiness. At the lo$-end of the mar(et" freelance photographers $ith inexpensi1e digital cameras start $or( officially and unofficially e1ery day. )o$e1er" at the high end of the mar(et" 2uality photographers $or(ing $ith the 4est e2uipment and a studio space are protected 4y the capital re2uired to purchase e2uipment and to rent and 4uild out a studio.
+ustomers among small and medium-si6ed 4usinesses see( lo$ prices" 4ut $ill not sacrifice 2uality. he 4est 2uality is o4tained in the
controlled
en1ironment
of
a
studio"
$ith
$ell-trained
photographers and high-2uality e2uipment. +ustomers choose 4et$een photo studios 4ased on their $e4sites and portfolios of $or(" as $ell as the personal assurances of the salesperson they $or( $ith at the studio that their needs $ill 4e ta(en care of.
?ord of mouth is extremely important for this 4usiness. ?hile the product of the $or( 4ecomes 1ery 1isi4le" it is important that customers feel so strongly a4out the experience of $or(ing $ith their photo studio that they tal( a4out it to other 4usinesses and contacts. hese referrals are extremely helpful in generating 4usiness.
STRATEGY AND IMPLEMENTATION SUMMARY o 4uild its reputation as a 2uality choice for commercial photography in the city" D5GGA07s +ommercial Photography $ill focus on small and medium-si6ed 4usinesses. hese include=
Eery Small 'usinesses @under !% employees
Small 'usinesses @!% to !%% employees
Medium 'usinesses @!%% to 8%% employees
o reach these target mar(ets" Ms. Duggal $ill use email mar(eting" 4usiness net$or(ing" and $e4 mar(eting to find clients and to ensure that clients find Mr.. D5GGA0. he +O" Priyan(a D5GGA0" $ill sell to clients" and 4oth he and an additional team of assistant photographers $ill 4e assigned to client photo shoots in the D5GGA07s studio and" $hen needed" at client sites.
COMPETITIVE EDGE Mr.. D5GGA07s +ommercial Photography has a competiti1e edge from the reputation of Priyan(a D5GGA0 in the 4usiness community as a high-2uality photographer $ho is easy to $or( $ith and attenti1e to the needs of clients. Ms. Duggal $ill continue to
de1elop
this
competiti1e
edge
4y
training
additional
photographers $ith his signature style of photography and high attention to customer ser1ice.
MARKETING STRATEGY he mar(eting strategy for Ms. Duggal +ommercial Photography is 4ased on the 4elief that using a fe$ mar(eting tactics extremely $ell is prefera4le to using many mar(eting tactics $ith moderate success $ith each. *ollo$ing are components of initial mar(eting campaign=
Ema40 Ma2>e:45/6 mailing a ne$ 4usiness announcement and then monthly ne$sletters $ith details on ne$ pac(ages" the de1elopment of the studio" and ne$ hires to past clients and other targets in the 4usiness community. #e$sletters $ill include helpful tips on ho$ to use photography and this $ill 4e used to gain permission from mar(eting departments at prospecti1e client 4usinesses to 4e sent the ne$sletters. ?ithin these emailsF calls to action to encourage 4usiness referrals.
B.-45e-- Ne:982>45/6 Priyan(a D5GGA0 $ill promote the 4usiness through the local chapter of ) @)industan imes" the +ham4er of +ommerce" and the 'usiness O$ner7s Association. hrough these meetings" Ms. Duggal $ill introduce his company7s $or( to other 4usiness o$ners" share leads on 4usiness" and recei1e 4oth exposure and 2ualified referrals. o encourage mem4ers of net$or(ing groups to use D5GGA07s ser1ices so that they are educated referrers" Ms. Duggal $ill offer a !8< discount on ser1ices to mem4ers of the net$or(ing group on their first purchase.
We? Ma2>e:45/6 Ms. D5GGA0 Photography $ill purchase search engine ad1ertising $ith Google around commercial photography (ey$ords for the city mar(et and gear its ad1ertisements to$ards the needs of small and medium-si6ed 4usinesses. *urthermore" Ms. D5GGA0 Photography7s $e4site $ill 4e optimi6ed for higher search engine ran(ing under these (ey$ords.
SALES STRATEGY he company7s sales strategy is to utili6e the experience of Priyan(a D5GGA0 as salesperson. Ms. Duggal $ill 4e a4le to assure clients of $hat the company and its photographers can accomplish as all $ill 4e personally trained 4y him.
o increase the closing rate of prospects" Ms. Duggal $ill meet clients at their 4usinesses $hene1er possi4le to go 4eyond phone con1ersations. )e $ill use a portfolio of images and testimonials. Ms. Duggal $ill use Salesforce.com as a tool to manage the sales process" and to train additional salespeople $hen the time comes.
he scheduling and fulfillment of ser1ices $ill 4e administered 4y the office manager" $ho $ill use Salesforce.com and Buic('oo(s to manage clients and capture information related to orders. Standard procedures for order fulfillment $ill 4e created 4y Ms. Duggal and chec(ed on an ongoing 4asis.
SALES FORECAST Sales for photo shoots are expected to dri1e the 4usiness and $ill gro$ $ith the gro$ing staff. Additional photographers $ill 4e hired to meet the need first as part-time and then as full-time staff.
Supplementary re1enue streams $ill 4e photo editing ser1ices and printing and framing of images. *inally" off-hours for the studio $ill 4e rented for e1ents of other purposes to create monthly stream of re1enue.
a
steady
SALES FORECAST
SALES FORECAST
Yea2
Yea2
Yea2
Yea2
Yea2
"
#
$
%
`!%:"99!
`!8:"C
`9%%"%%% `9&%"%%% `8%"%%%
`88"98
`:;"&8;
`;%"%%%
`!%"%%% `8%"%%%
`!9"9!
`!;"8!
`8%"%%%
`&%"%%%
`%%"%%%
`&":9C
`9:"%%%
`9:"%%%
`%"%%%
`8%"%%%
`98:":9:
`9;!"!
`&:"%%% `:%%"%%% `&8%"%%%
Sales Photo Shoots Photo diting Print. > *rame Studio ,ental otal Sales Direct +ost of Sales Print. > *rame +ost Other +ost of Sales Su4total Direct +ost of Sales
Yea2
Yea2 "
Yea2 #
Yea2 $
Yea2 %
`&";
`!"&9
`9&"8%%
`8!"8%%
`&8"%%%
`89";8
`8C"C;
`&"%%
`;%"%%%
`!"8%%
`+1*&
`+1%&"
`+1*++ `$"1%++
`1%++
MILESTONES he promotional mar(eting 4efore the opening of the studio is in a t$o month period in $hich an initial ?e4 mar(eting and email mar(eting campaign $ill ta(e place" directed 4y the +O" $ith some help from the part-time administrati1e assistant" and mar(eting 1endors @a ?e4 mar(eting specialist. *urthermore" ads $ill 4e placed to specifically highlight the studio as a rental option for other uses.
?e4 Mar(eting specialist $ill 4e hired to set-up and maintain Google Ad$ords campaign and to optimi6e $e4site for search engines.
+onstant +ontact $ill 4e used to maintain email mar(eting $ith announcements a4out the studio opening" ne$ staff" and ne$ ser1ices.
MILESTONES
M/0SO#S Milestone Sign 0ease on
S. Date ;F9%F!%9
. Date ;F9%F!%9
'udget ` %
Department Operations
Studio )ire Part-ime
FF!%9
FF!%9
` %
Operations
Staff rain Part-ime
FF!%9
!F9F!%9
` %
Operations
Staff Open Studio *or
FF!%
FF!%
` %
Operations
'usiness ?e4 Mar(eting
FF!%9
!F9F!%9
` C"%%%
Mar(eting
+ampaign mail Mar(eting
;FF!%
%FF!%
` "%%%
Mar(eting
` "%%%
Mar(eting
+ampaign ,ental Studio
F8F!%9 !F9F!%9
Mar(eting otals
`+1+++
MANAGEMENT SUMMARY Priyan(a D5GGA0 $ill act as +O of Ms. Duggal +ommercial Photography. Ms. Duggal has extensi1e industry" sales" and operational experience. /mmediate hires $ill include one part-time assistant photographer and one part-time administrati1e assistant.
he
+O
$ill
4e
responsi4le
for
sales
and
mar(eting"
management of all staff" and fulfillment of client ser1ices.
he first part-time assistant photographer $ill 4e Pa0a> A;.@a" a recent graduate of the School of Eisual Arts and an accomplished photographer ne$ in the industry. he assistant photographer $ill assist on shoots during training and 4egin to ta(e the lead on photo shoots o1er time. )e $ill mo1e to full-time $ithin one year if sales projections are met.
he administrati1e assistant $ill 4e responsi4le for 4oo((eeping @accounts paya4le and recei1a4le" scheduling of shoots and la4or" and fielding calls for rental of the studio and initial sales in2uiries. )e or she $ill execute mar(eting campaigns @update $e4site" print 4rochures and portfolios" etc. )e or she $ill offer customer ser1ice to ans$er 4asic 2uestions 4y phone or email.
PERSONNEL PLAN Ms. Duggal +ommercial Photography $ill 4egin its expansion $ith one
part-time
assistant
photographer
and
one
part-time
administrati1e assistant" $ith the understanding that 4oth positions $ill gro$ to full-time shortly. ach year an additional assistant photographer $ill 4e added. PERSONNEL
PERSONNEL PLAN
3ear ` :%"%%% `99"&9:
3ear ! ` :%"%%% `C"%%%
3ear 9 ` :%"%%% `;";!%
3ear ` :%"%%% `8";&
3ear 8 ` :%"%%% `89";;9
`;"%;
`!C"9
`%"%%%
`8"%%%
`8%"%%%
Assistant Assistant
`%
`9";!
`8"%%%
`9%"%%%
`9"!%%
Photographer ! Assistant
`%
`%
`%
`8"%%%
`98"%%%
Photographer 9 Assistant
`%
`%
`%
`
`8"%%%
Photographer otal People
9
9
:
&
+O Assistant Photographer Administrati1e
T8:a0 Pa32800
` !"&88 `8%"!C:
`:";!%
` !%";! `!8";9
FINANCIAL PLAN he launch of the 4usiness $ill 4e financed 4y the founder7s in1estment and credit and 4y in1estments from limited partners. /n exchange for `8"9%"%%% in1estment in the 4usiness at startup" limited partners $ill recei1e ;< o$nership shares. he initial funding re2uirements are modest for the 4usiness.
he gro$th of the 4usiness" 4eyond the first year" $ill 4e financed 4y the free cash flo$s generated 4y the 4usiness. his $ill allo$ for the expansion of staff to include additional photographers" the ramping up of mar(eting expenditures" and the resulting increase in sales. Only one photographer $ill 4e added per year in order to ma(e sure that there is time for ade2uate training of ne$ staff.
START'UP FUNDING *unding for the 4usiness is in part from personal loans" credit cards" and D5GGA0.
he
cash
in1estment
remainder
of
4y
the
o$ner"
funding
$ill
4e
three limited partners in the form of e2uity in1estment.
Priyan(a
from one
to
START-UP FUNDING
Start-up xpenses to *und ` !"8%% Start-up Assets to *und ` :"%%% ` &%"8%% otal *unding ,e2uired Assets #on-cash Assets from Start-up ` 9"%%% ` 8"%%% +ash ,e2uirements from Start-up ` 8"%%% +ash 'alance on Starting Date otal Assets ` :"%%% 0ia4ilities and +apital 0ia4ilities +urrent 'orro$ing ` 8"%%% 0ong-term 0ia4ilities ` 8"%%% ` !"8%% Accounts Paya4le @Outstanding 'ills ` !"8%% otal 0ia4ilities +apital ` 8"%%% ` 89"%%% O$ner > 0imited Partners ` 8C"%%% otal Planned /n1estment 0oss at Start-up @Start-up xpenses @` !"8%% otal +apital ` 99"8%% ` :"%%% otal +apital and 0ia4ilities ` &%"8%% T8:a0 F.5745/
BREAK'EVEN ANALYSIS
he 4rea( e1en for the 4usiness is high
As
the salaries of staff are relati1ely fixed.
Monthly 'ills and other xpenses are also to 4e met.
BREAK-EVEN ANALYSIS
Monthly ,e1enue 'rea(-e1en Assumptions= A1erage Percent Earia4le +ost E-:4ma:e7 M85:;03 F4e7 C8-:
`!!"!!C
!%< `&"C%
PROJECTED PROFIT AND LOSS
Gross margins are expected to remain consistent" as most costs of the 4usiness are not direct costs of sales. he greatest cost of the ser1ice is la4or" $hich is part of salaries and not cost of sales" for example.
/n year !" profit is expected to drop as capacity is increased to prepare for gro$th. his $ill rectify in future years as sales come in line $ith the payroll expenses.
PROJECTED BALANCE SHEET
he 4usiness is projected to sho$ gro$th in retained earnings @$hich allo$ for di1idends to 4e paid as there are not su4stantial additional capital expenditures needed after the launch. here $ill 4e healthy gro$th in net $orth o1er the first fi1e years of operation" as additional de4t is not re2uired to fund the 4usiness.
PRO FORMA PROFIT AND LOSS
Sales Direct +ost of Sales otal +ost of Sales Gross Margin Gross Margin < xpenses Payroll Mar(etingFPromotion Depreciation ,ent 5tilities /nsurance Payroll axes Other otal Operating xp. Profit @/nt. > ax '/DA axes /ncurred #et Profit #et ProfitFSales
3ear `98:":9
3ear ! `9;!"!
3ear 9 `&:"%%
3ear `:%%"%%
3ear 8 `&8%"%%%
: `&%";C:
`C%"8:!
% `%C";%
% `!"8%
`C&"8%%
`&%";C:
`C%"8:!
% `%C";%
% `!"8%
`C&"8%%
`!C8":8
% `9"8:! `9:&"%
% `8&"8%
`8:!"8%%
% C%.%<
&;.:<
% &&.!<
% &:.!8<
&8.%%<
`!"&88 `8%"!C
`:";!
`!%";!
`!8";9
% `8%"%%% `:"%%% `!:":% `9"8%% `9"8%% `!"&9C `&"%%% `!;:"C
`:%"%%% `:"%%% `!&"&C9 `9"C%% `"%%% `9%"!CC `!%"%%% `989"&;
`&%";C!
! `%9"&%
`":88
`&:";C!
C `%;"&%
`&":88
`!9":
: `9:"%%% `:"%%% `!8"!%% `9"%%% `9"%%% `!!"89 `"%% `!:%"!
: `&!"%%
; `8"9
`9:"%%% `:"%%% `!"%%% `!"%% `!"%% `C"%; `!"%%%
`&C"%%
`8&"9
`!":
`8"9%
`!"!;8
`%+1+"
`#%1*#
`$*1&
$!+$<
*!#<
+!$$<
C `9"! `"1%*& "!+<
`&%"%%% `:"%%% `!;"&! `"!%% `"8%% `9:"&&; `!8"%%% `!%"C8
`!";& `**1%*
#!""<
PRO FORMA BALANCE SHEET
Assets @+. Assets +ash Acc. ,ecei1a4le Other +. Assets otal +urrent Assets Assets @0ong-term 0. erm Assets Acc. Depreciation otal 0ong-term Assets otal Assets
3ear `8%"%; `!"!; `"%%% `&8"!;;
3ear ! `C;"8C! `!&"8;C `"%%% `C"C%
3ear 9 `!";: `99"8% `"%%% `8:"::
3ear `:&"%: `!"!!C `"%%% `!%"!&
3ear 8 `!!&"&:% `8!"&C8 `"%%% `!C"8:
`9%"%%%
`9%"%%%
`9%"%%%
`9%"%%%
`9%"%%%
`:"%%%
`!"%%%
`C"%%%
`!"%%%
`9%"%%%
`!"%%%
`C"%%%
`!"%%%
`:"%%%
`%
`;;"!;;
`9:"C% `:C"::
`!:"!& `!C"8:
0/A'/0//S A#D +AP/A0 +urrent 0ia4ilities Accounts Paya4le otal 0ia4ilities Paid-in +apital ,etained arnings arnings otal +apital otal 0ia4ilities> +apital #et ?orth
`8"&&
`:"C%
`!%";;
`!:"!8;
`9!"CC
`8"&&
`:"C%
`!%";;
`!:"!8;
`9!"CC
`8C"%%%
`8C"%%%
`8C"%%%
`8C"%%%
`8C"%%%
@`!"8%% `8%"%C! `C9"8C! `**1"** `#1%"
`!8"8C!
`9;"&C&
`8;"!%
`;"89;
`98"&;9
`;":C&
`&!"8;:
`;;"8;
`;"9&8
`&"&
`;%"%8 `!C":;C
`#&1+ `&1$&&
`"&1"$ `"1%$&
`*1#%
`*+1+% `"$1&*
`$1$$
