SAMPLE BAKERY AND COFFEE SHOP | BUSINESS PLAN AND FEASIBILITY STUDY

Executive Summary
Introduction
Sample Bakery (SB) is a start-up coffee and bakery retail establishment located in southwest Washington. SB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.
SB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.
The Company
SB is incorporated in the state of Washington. It is equally owned and managed by its two partners.
Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Daniels & Daniels and Super Foods. Mrs. Stella Mavins brings experience in the area of finance and administration, including a stint as chief financial officer with both Bimma Roasters and the national coffee store chain, Slide-Plates.
The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations.
Products and Services
SB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. SB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.
The Market
The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.
SB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
Financial Considerations
SB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.
SB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. SB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems.
1.1 Mission
SB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists.
1.2 Keys to Success
Keys to success for SB will include:
  1. Providing the highest quality product with personal customer service.
  2. Competitive pricing.


Company Summary

SB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.
2.1 Company Ownership
SB is incorporated in the state of Washington. It is equally owned by its two partners.
2.2 Start-up Summary
SB is a start-up company. Financing will come from the partners' capital and a ten-year SBA loan. The following chart and table illustrate the company's projected initial start-up costs.
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Start-up Requirements
Start-up Expenses

Legal
$3,000
Premise renovation
$20,000
Expensed equipment
$40,000
Other
$1,000
Total Start-up Expenses
$64,000
Start-up Assets

Cash Required
$70,000
Other Current Assets
$12,000
Long-term Assets
$65,000
Total Assets
$147,000
Total Requirements
$211,000
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Start-up Funding
Start-up Expenses to Fund
$64,000
Start-up Assets to Fund
$147,000
Total Funding Required
$211,000
Assets

Non-cash Assets from Start-up
$77,000
Cash Requirements from Start-up
$70,000
Additional Cash Raised
$0
Cash Balance on Starting Date
$70,000
Total Assets
$147,000
Liabilities and Capital

Liabilities

Current Borrowing
$0
Long-term Liabilities
$100,000
Accounts Payable (Outstanding Bills)
$1,000
Other Current Liabilities (interest-free)
$0
Total Liabilities
$101,000
Capital

Planned Investment

Patterson
$55,000
Fields
$55,000
Other
$0
Additional Investment Requirement
$0
Total Planned Investment
$110,000
Loss at Start-up (Start-up Expenses)
($64,000)
Total Capital
$46,000
Total Capital and Liabilities
$147,000
Total Funding
$211,000


Products

SB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. SB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.


Market Analysis Summary

SB's focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways.
4.1 Market Segmentation
SB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.
Local Residents
SB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business.
Tourists
Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
4.1.1 Market Analysis
The chart and table below outline the total market potential of the above described customer segments. 
4.2 Target Market Segment Strategy
The dominant target market for SB is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.
4.2.1 Market Needs
Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day's activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.
4.3 Service Business Analysis
The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the immediate area, SB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment.
4.3.1 Competition and Buying Patterns
Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as SB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.
Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).
Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well.


Strategy and Implementation Summary

SB will succeed by offering consumers high quality coffee, espresso, and bakery products with personal service at a competitive price.
5.1 Competitive Edge
SB's competitive edge is the relatively low level of competition in the local area in this particular niche.
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5.2 Sales Strategy
As the chart and table show, SB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan.
http://www.bplans.com/bakery_business_plan/images/550x318xc7f079c767794b41b24f7cd65136c669.png.pagespeed.ic.EZaFFMU2C0.png
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http://www.bplans.com/bakery_business_plan/images/550x318x2a22e7554c0a4224b23f7935f16cfd66.png.pagespeed.ic.9glczJI3Hg.png
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Sales Forecast

Year 1
Year 2
Year 3
Unit Sales



Espresso Drinks
135,000
148,500
163,350
Pastry Items
86,000
94,600
104,060
Other
0
0
0
Total Unit Sales
221,000
243,100
267,410
Unit Prices
Year 1
Year 2
Year 3
Espresso Drinks
$3.00
$3.15
$3.31
Pastry Items
$1.00
$1.05
$1.10
Other
$0.00
$0.00
$0.00
Sales



Espresso Drinks
$405,000
$467,775
$540,280
Pastry Items
$86,000
$99,330
$114,726
Other
$0
$0
$0
Total Sales
$491,000
$567,105
$655,006
Direct Unit Costs
Year 1
Year 2
Year 3
Espresso Drinks
$0.25
$0.26
$0.28
Pastry Items
$0.50
$0.53
$0.55
Other
$0.00
$0.00
$0.00
Direct Cost of Sales



Espresso Drinks
$33,750
$38,981
$45,023
Pastry Items
$43,000
$49,665
$57,363
Other
$0
$0
$0
Subtotal Direct Cost of Sales
$76,750
$88,646
$102,386


Management Summary

Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Daniels & Daniels and Super Foods. Stella Mavins brings experience in the area of finance and administration, including a stint as chief financial officer with both Bimma Roasters and the national coffee store chain, Slide-Plates.
6.1 Personnel Plan
As the personnel plan shows, SB expects to make significant investments in sales, sales support, and product development personnel.

Personnel Plan

Year 1
Year 2
Year 3
Managers
$100,000
$105,000
$110,250
Pastry Bakers
$40,800
$42,840
$44,982
Baristas
$120,000
$126,000
$132,300
Other
$0
$0
$0
Total People
10
10
10
Total Payroll
$260,800
$273,840
$287,532


Financial Plan

SB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.
7.1 Break-even Analysis
SB's Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. SB should break even by the fourth month of its operation as it steadily increases its sales.
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Break-even Analysis
Monthly Units Break-even
17,255
Monthly Revenue Break-even
$38,336
Assumptions:

Average Per-Unit Revenue
$2.22
Average Per-Unit Variable Cost
$0.35
Estimated Monthly Fixed Cost
$32,343
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7.2 Projected Profit and Loss
As the Profit and Loss table shows, SB expects to continue its steady growth in profitability over the next three years of operations.

Pro Forma Profit and Loss

Year 1
Year 2
Year 3
Sales
$491,000
$567,105
$655,006
Direct Cost of Sales
$76,750
$88,646
$102,386
Other
$0
$0
$0
Total Cost of Sales
$76,750
$88,646
$102,386
Gross Margin
$414,250
$478,459
$552,620
Gross Margin %
84.37%
84.37%
84.37%
Expenses



Payroll
$260,800
$273,840
$287,532
Sales and Marketing and Other Expenses
$27,000
$35,200
$71,460
Depreciation
$60,000
$69,000
$79,350
Utilities
$1,200
$1,260
$1,323
Payroll Taxes
$39,120
$41,076
$43,130
Other
$0
$0
$0
Total Operating Expenses
$388,120
$420,376
$482,795
Profit Before Interest and Taxes
$26,130
$58,083
$69,825
EBITDA
$86,130
$127,083
$149,175
Interest Expense
$10,000
$9,500
$8,250
Taxes Incurred
$3,111
$12,146
$15,650
Net Profit
$13,019
$36,437
$45,925
Net Profit/Sales
2.65%
6.43%
7.01%
7.3 Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet SB's needs as the business generates cash flow sufficient to support operations.
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Pro Forma Cash Flow

Year 1
Year 2
Year 3
Cash Received



Cash from Operations



Cash Sales
$491,000
$567,105
$655,006
Subtotal Cash from Operations
$491,000
$567,105
$655,006
Additional Cash Received



Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$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
$0
$0
$0
Subtotal Cash Received
$491,000
$567,105
$655,006
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations



Cash Spending
$260,800
$273,840
$287,532
Bill Payments
$143,607
$186,964
$237,731
Subtotal Spent on Operations
$404,407
$460,804
$525,263
Additional Cash Spent



Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$10,000
$15,000
Purchase Other Current Assets
$0
$0
$0
Purchase Long-term Assets
$0
$20,000
$20,000
Dividends
$0
$0
$0
Subtotal Cash Spent
$404,407
$490,804
$560,263
Net Cash Flow
$86,593
$76,301
$94,744
Cash Balance
$156,593
$232,894
$327,637

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7.4 Balance Sheet
The following is a projected Balance Sheet for SB.
Pro Forma Balance Sheet

Year 1
Year 2
Year 3
Assets



Current Assets



Cash
$156,593
$232,894
$327,637
Other Current Assets
$12,000
$12,000
$12,000
Total Current Assets
$168,593
$244,894
$339,637
Long-term Assets



Long-term Assets
$65,000
$85,000
$105,000
Accumulated Depreciation
$60,000
$129,000
$208,350
Total Long-term Assets
$5,000
($44,000)
($103,350)
Total Assets
$173,593
$200,894
$236,287
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities



Accounts Payable
$14,574
$15,438
$19,907
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$14,574
$15,438
$19,907
Long-term Liabilities
$100,000
$90,000
$75,000
Total Liabilities
$114,574
$105,438
$94,907
Paid-in Capital
$110,000
$110,000
$110,000
Retained Earnings
($64,000)
($50,981)
($14,544)
Earnings
$13,019
$36,437
$45,925
Total Capital
$59,019
$95,456
$141,381
Total Liabilities and Capital
$173,593
$200,894
$236,287
Net Worth
$59,019
$95,456
$141,381
7.5 Business Ratios
The following table represents key ratios for the retail bakery and coffee shop industry. These ratios are determined by the Standard Industry Classification (SIC) Index code 5812, Eating Places.

Ratio Analysis

Year 1
Year 2
Year 3
Industry Profile
Sales Growth
0.00%
15.50%
15.50%
7.60%
Percent of Total Assets




Other Current Assets
6.91%
5.97%
5.08%
35.60%
Total Current Assets
97.12%
121.90%
143.74%
43.70%
Long-term Assets
2.88%
-21.90%
-43.74%
56.30%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
8.40%
7.68%
8.42%
32.70%
Long-term Liabilities
57.61%
44.80%
31.74%
28.50%
Total Liabilities
66.00%
52.48%
40.17%
61.20%
Net Worth
34.00%
47.52%
59.83%
38.80%
Percent of Sales




Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
84.37%
84.37%
84.37%
60.50%
Selling, General & Administrative Expenses
74.74%
71.43%
71.39%
39.80%
Advertising Expenses
0.49%
1.76%
6.87%
3.20%
Profit Before Interest and Taxes
5.32%
10.24%
10.66%
0.70%
Main Ratios




Current
11.57
15.86
17.06
0.98
Quick
11.57
15.86
17.06
0.65
Total Debt to Total Assets
66.00%
52.48%
40.17%
61.20%
Pre-tax Return on Net Worth
27.33%
50.90%
43.55%
1.70%
Pre-tax Return on Assets
9.29%
24.18%
26.06%
4.30%
Additional Ratios
Year 1
Year 2
Year 3

Net Profit Margin
2.65%
6.43%
7.01%
n.a
Return on Equity
22.06%
38.17%
32.48%
n.a
Activity Ratios




Accounts Payable Turnover
10.79
12.17
12.17
n.a
Payment Days
27
29
27
n.a
Total Asset Turnover
2.83
2.82
2.77
n.a
Debt Ratios




Debt to Net Worth
1.94
1.10
0.67
n.a
Current Liab. to Liab.
0.13
0.15
0.21
n.a
Liquidity Ratios




Net Working Capital
$154,019
$229,456
$319,731
n.a
Interest Coverage
2.61
6.11
8.46
n.a
Additional Ratios




Assets to Sales
0.35
0.35
0.36
n.a
Current Debt/Total Assets
8%
8%
8%
n.a
Acid Test
11.57
15.86
17.06
n.a
Sales/Net Worth
8.32
5.94
4.63
n.a
Dividend Payout
0.00
0.00
0.00
n.a


Appendix

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
Unit Sales













Espresso Drinks
0%
5,000
7,500
10,000
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
Pastry Items
0%
2,000
3,000
6,000
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
Other
0%
0
0
0
0
0
0
0
0
0
0
0
0
Total Unit Sales

7,000
10,500
16,000
20,833
20,833
20,833
20,833
20,833
20,833
20,833
20,833
20,833
Unit Prices

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Espresso Drinks

$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
Pastry Items

$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
Other

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Sales













Espresso Drinks

$15,000
$22,500
$30,000
$37,500
$37,500
$37,500
$37,500
$37,500
$37,500
$37,500
$37,500
$37,500
Pastry Items

$2,000
$3,000
$6,000
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
Other

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Sales

$17,000
$25,500
$36,000
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
Direct Unit Costs

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Espresso Drinks
0.00%
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
$0.25
Pastry Items
0.00%
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
Other
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Direct Cost of Sales













Espresso Drinks

$1,250
$1,875
$2,500
$3,125
$3,125
$3,125
$3,125
$3,125
$3,125
$3,125
$3,125
$3,125
Pastry Items

$1,000
$1,500
$3,000
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Other

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Direct Cost of Sales

$2,250
$3,375
$5,500
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
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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
Managers
0%
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
Pastry Bakers
0%
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
$3,400
Baristas
0%
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
Other
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People

10
10
10
10
10
10
10
10
10
10
10
10
Total Payroll

$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733

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

10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Long-term Interest Rate

10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
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

$17,000
$25,500
$36,000
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
Direct Cost of Sales

$2,250
$3,375
$5,500
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
Other

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales

$2,250
$3,375
$5,500
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
$7,292
Gross Margin

$14,750
$22,125
$30,500
$38,542
$38,542
$38,542
$38,542
$38,542
$38,542
$38,542
$38,542
$38,542
Gross Margin %

86.76%
86.76%
84.72%
84.09%
84.09%
84.09%
84.09%
84.09%
84.09%
84.09%
84.09%
84.09%
Expenses













Payroll

$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
Sales and Marketing and Other Expenses

$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
Depreciation
15%
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Utilities
5%
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
Payroll Taxes
15%
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
$3,260
Other

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Operating Expenses

$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
$32,343
Profit Before Interest and Taxes

($17,593)
($10,218)
($1,843)
$6,198
$6,198
$6,198
$6,198
$6,198
$6,198
$6,198
$6,198
$6,198
EBITDA

($12,593)
($5,218)
$3,157
$11,198
$11,198
$11,198
$11,198
$11,198
$11,198
$11,198
$11,198
$11,198
Interest Expense

$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
Taxes Incurred

($5,528)
($2,763)
($669)
$1,341
$1,341
$1,341
$1,341
$1,341
$1,341
$1,341
$1,341
$1,341
Net Profit

($12,899)
($8,289)
($2,007)
$4,024
$4,024
$4,024
$4,024
$4,024
$4,024
$4,024
$4,024
$4,024
Net Profit/Sales

-75.87%
-32.50%
-5.58%
8.78%
8.78%
8.78%
8.78%
8.78%
8.78%
8.78%
8.78%
8.78%

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

$17,000
$25,500
$36,000
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
Subtotal Cash from Operations

$17,000
$25,500
$36,000
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
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
$0
$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
$0
$0
Subtotal Cash Received

$17,000
$25,500
$36,000
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
$45,833
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

$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
$21,733
Bill Payments

$1,106
$3,295
$7,196
$11,401
$15,076
$15,076
$15,076
$15,076
$15,076
$15,076
$15,076
$15,076
Subtotal Spent on Operations

$22,839
$25,028
$28,929
$33,134
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
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
$0
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

$22,839
$25,028
$28,929
$33,134
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
$36,810
Net Cash Flow

($5,839)
$472
$7,071
$12,699
$9,024
$9,024
$9,024
$9,024
$9,024
$9,024
$9,024
$9,024
Cash Balance

$64,161
$64,633
$71,703
$84,403
$93,426
$102,450
$111,474
$120,498
$129,521
$138,545
$147,569
$156,593
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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
$70,000
$64,161
$64,633
$71,703
$84,403
$93,426
$102,450
$111,474
$120,498
$129,521
$138,545
$147,569
$156,593
Other Current Assets
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
Total Current Assets
$82,000
$76,161
$76,633
$83,703
$96,403
$105,426
$114,450
$123,474
$132,498
$141,521
$150,545
$159,569
$168,593
Long-term Assets













Long-term Assets
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
Accumulated Depreciation
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
Total Long-term Assets
$65,000
$60,000
$55,000
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
Total Assets
$147,000
$136,161
$131,633
$133,703
$141,403
$145,426
$149,450
$153,474
$157,498
$161,521
$165,545
$169,569
$173,593
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
$1,000
$3,060
$6,820
$10,898
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Current Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Current Liabilities
$1,000
$3,060
$6,820
$10,898
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
$14,574
Long-term Liabilities
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
Total Liabilities
$101,000
$103,060
$106,820
$110,898
$114,574
$114,574
$114,574
$114,574
$114,574
$114,574
$114,574
$114,574
$114,574
Paid-in Capital
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
$110,000
Retained Earnings
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
($64,000)
Earnings
$0
($12,899)
($21,187)
($23,195)
($19,171)
($15,147)
($11,124)
($7,100)
($3,076)
$948
$4,971
$8,995
$13,019
Total Capital
$46,000
$33,101
$24,813
$22,805
$26,829
$30,853
$34,876
$38,900
$42,924
$46,948
$50,971
$54,995
$59,019
Total Liabilities and Capital
$147,000
$136,161
$131,633
$133,703
$141,403
$145,426
$149,450
$153,474
$157,498
$161,521
$165,545
$169,569
$173,593
Net Worth
$46,000
$33,101
$24,813
$22,805
$26,829
$30,853
$34,876
$38,900
$42,924
$46,948
$50,971
$54,995
$59,019

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