Professional Documents
Culture Documents
Table of Contents
Page 2
Page 1
Chart: Highlights
1.1 Objectives
1. Penetrate the automotive restoration market here in the Highland Valley. Within the next
twelve months, it is the objective of the company to market to the local area to promote our
business in the Highland Valley and surrounding areas, our market segment will be 30 to 65
years old men and women who own old American cars. After year two we plan to expand
our business to the Carahge City, Mythtate area. Our studies indicate that the Carahge City
area doesn't have a lot of competition for our business.
2. Substantially increase profitability. We will encourage price-sensitive jobs to go elsewhere
by normalizing the pricing structure. This will allow for more high-end custom work to be
performed for the less price-sensitive restoration market sector. This pricing will insure
a quadrupling of net profits during the third year.
3. To improve the administrative processes of the company. This will allow a reduction in the
owner's involvement in simple administrative tasks from 50% of his time to 20%, thereby
allowing him more time for sales and marketing tasks.
1.2 Mission
Our mission at Phaethon's Chariot is to always perform the highest quality work at the best
price around.
We can achieve this by only using the best of everything to do our restoration.
We produce high-quality work using the best parts and supplies available in the market
place today.
We only employ the most knowledgeable people to work for our shop.
We have a metal fabricator who will build any part that we can't locate for your car.
All of our restoration technicians go through a rigorous application process before we hire
them. We employ only the best people to do our work.
Page 2
At Phaethon's Chariot Restorations you will get only the best quality work done on your car.
1.3 Keys to Success
Keys to success for the company will include:
1.
2.
3.
4.
Page 3
Fixtures
Hand Tools
Jigs and Work Stands
Auto Hand Tools
Spray Painting Equipment
Inventory will consist of restoration materials. Custom panels, parts, seats, fabrics,
instruments, etc. will be purchased either by the car owners, or by Phaethon's Chariot on a
just-in-time, as needed basis.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Logo Design - Artwork
Stationery etc.
Sales Literature
Insurance
Rent
Utilities
Computer Network - Office/Shop
Website Development
Office Furniture
Fixtures
Total Start-up Expenses
$1,000
$3,000
$500
$4,000
$1,500
$1,800
$1,200
$6,000
$700
$3,000
$800
$23,500
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$10,000
$2,000
$30,000
$100,000
$142,000
Total Requirements
$165,500
Page 4
Chart: Start-up
Page 5
Quality full restoration or custom services, including engine, custom body work and paint.
Timely completion of the work on their cars.
Competitive rates.
Close attention to detail, and commitment to quality.
Ability to offer ideas for alternatives and close customer services.
Phaethon's Chariot has the ability to meet all these demands. The owner has a long work
history in this field, and has extremely high standards in regards to the shop's work. The owner
and the foreman will make sure that the shop's employees meet these standards. The owner
also understands that, not only quality work, but the attention and care bestowed on the
customer and their cars will result in a good reputation.
LOCATION
There is no specific geographical location for potential customers. They are located all over the
United States. They send their cars to whom and where they feel will do the best job, based on
reputation. This reputation comes largely from "word of mouth", i.e. seeing the quality of a car
that was restored by Phaethon's Chariot at a show, and referrals by others in the business. We
feel that eventually 50% of Phaethon's Chariot's customers will come from out of state.
INDUSTRY TRENDS
This is a large market that has seen an upturn in the last few years. All indications are that this
will continue for many years until leveling off at possibly double or triple the current market.
One company in this area, Car Barn Renewals, has a waiting list of three years. They not
taking any new business at this time. The owner of this shop is well acquainted with the quality
of work that will be preformed by Phaethon's Chariot and has indicated to Mr. Isoroku
Tarnmaclahan that he would refer anyone inquiring about new services to Phaethon's Chariot.
This will not only increase the number of potential customers for Phaethon's Chariot in the
start-up phase, but will provide a valuable word-of-mouth reputation for them.
COMPETITION
There are two other companies in the Centerton area that offer services similar to Phaethon's
Chariot's. One has been in business for 40 years and has an extremely high reputation within
the restoration community. They currently have more work than the shop can handle and has a
waiting list of three years. They are not taking any new customers. They also usually has one or
more cars in most shows. The owner of Phaethon's Chariot worked for them while learning his
trade.
The other shop has been in business 15 years. They currently have a wait of 160 days for any
new work. However most of their work is new business (first time customers) as their
reputation in the community is not good and they rarely have repeat business.
PRICING
Phaethon's Chariot's labor rates will be $45 per hour. Both of the other shops charge $65
per/hr. Phaethon's Chariot feels that this is a competitive rate and will not impact the bottom
line in a negative manner.
Page 6
ADVERTISING
Phaethon's Chariot has a modest program of marketing its services that include the following:
1.
2.
3.
4.
5.
6.
7.
8.
Flyers
Discounts
Newspaper and magazines ads
Press releases and magazines articles
Car shows
Local radio stations
Website
Calendars
Each of these marketing approaches has the advantage of being low cost and creating service
awareness. The company is also considering the possibility of having a grand opening program
that would feature discounts, food, a local radio disc jockey and other promotional ideas.
We feel that the company website is one of our best marketing strategies. It is linked to City
Search.com and many other classic car restoration oriented websites and portals. The site has
news about our business, answers to FAQ's and pictures of cars we've restored and the process
of the restoration.
4.1 Market Segmentation
The market for auto restoration reflects the buyer's income bracket and standard of living in
much the same way that the restoration market is segmented. Below are listed market
segments based on size of pocketbook and quality of production:
1. Material Outlets. Suppliers of auto body and paint supplies, interior supplies and
mechanical parts.
2. Simple jobs. Simple repair jobs and service are the next level in our sales chain.
3. Paint. Custom paint work such as murals and flames, will provide some income.
4. Restoration. Complete restoration jobs, and complete paint work.
5. Custom Work. Custom body work such as, top chops and channels, this would be
considered our high end of work.
The average age of our customers is 30 to 65 years old with an average income is $60,000 per
year, with most full restoration customers having incomes of over $100,000. The gender is
predominantly male, with a college education, and coming from Centerton county and
surrounding areas. Some of the more recent trends come from the increasing coverage of
our industry on television, with shows such as American Muscle Car, Dream Car Garage and the
like. These types of shows have helped auto restoration to grow to a billion dollar a year
industry in the United States.
Page 7
Market Analysis
Potential Customers
Males 30 to 65 years old
Other
Total
Year 1
Year 2
Year 3
Year 4
Year 5
20
10
30
34
10
44
58
10
68
99
13
112
168
17
185
Growth
70%
30%
57.58%
CAGR
70.24%
14.19%
57.58%
Page 8
Page 9
Our competitive edge will come from hard work and customer satisfaction, we will only produce
top quality work that is show ready when it leaves the shop. This will spawn good word of
mouth, which will in turn generate work from past and present customers of our shop.
5.2 Marketing Strategy
As mentioned in the previous section, it is important to the marketing strategy to develop an
attractive image to the trade. This can be done in a number of ways:
1. Advertising. Most restoration shops interviewed suggested Hemmings Motor News as the
best place to advertise. In the regional telephone directory Yellow Pages two classification
are possible: Auto Restoration--Antique & Classic, or Auto Body Repair & Paint. These two
publications both have directories. In Hemmings, a color 1/4 page ad would run $1,700 per
month for a year if signed by December 1, 2004, which provides a 15% discount. This
averages out to $1,411 per insertion, even less for black and white. A quarter page ad in
the Yellow Pages runs $1,200 a year.
2. Join The Chamber of Commerce. The image of Phaethon's Chariot Restorations would be
elevated by joining the Chamber of Commerce. This would cost only $300 per year.
Advertising on their electronic sign alongside the Interstate is free for 90 days. At present
the sign would give 100 impressions per day to the shop. We expect this to
increase Phaethon's income by about 10% during that 90-day period.
3. Advertising. Development of a top quality logo and photography which can be used in ads,
brochures, name cards, etc. Not counting printing costs, which vary by quantity and quality
of paper chosen, the design costs for this would run about $1,500. A day's photography
would be an additional $850-$1,600.
4. Participation in Car Shows. Another image-building marketing tactic is participating in
local car shows. These car shows are held just for the fun of it. This would require time and
effort, but not much in the way of money. This should be coordinated to insure compatibility
with the show's concept and our image. If we attend a show out of the local area, costs
would increase due to the expense of food, lodging, and protected transportation of a
finished car to the show. A photo album can never compete with the real hardware.
In addition to the above-mentioned activities designed to elevate the company's image, it is
essential to market directly to the selected target clients who all go to local car shows. Success
in making inroads into these names would set the stage for entry into the more prestigious auto
restorers guild.
Marketing these prime prospects must be carried out in a thoughtful organized way. Color
literature including the newly designed logo should be completed as a first step. When
marketing these prospects it will be important to present a portfolio of Phaethon's
Chariot's most innovative work. A relaxed face-to-face meeting, resulting in good
communication between Phaethon's Chariot and the project car's owners, should be all that's
needed to generate a first order.
Networking is also very useful. It is important, once the logo and artwork materials have been
completed, for the owner to make a point of introducing herself to important players in
the restoration world surrounding Centerton. Good contacts include hot rod businesses, parts
stores, custom car clubs, suppliers of paint, etc.
Page 10
Page 11
Sales Forecast
Year 1
Year 2
Year 3
Page 12
Sales
Restoration Work
Paint Work
Parts
Service
Total Sales
Direct Cost of Sales
Restoration Work
Paint Work
Parts
Service
Subtotal Direct Cost of Sales
$145,008
$49,236
$72,399
$44,400
$311,044
$250,000
$64,007
$108,599
$48,800
$471,406
$324,000
$83,209
$162,899
$53,600
$623,707
Year 1
$26,717
$9,063
$13,000
$17,760
$66,540
Year 2
$50,000
$12,801
$19,548
$19,520
$101,869
Year 3
$64,800
$16,642
$29,322
$21,440
$132,203
5.4 Milestones
The milestone table is set up as a flow-chart. The milestone table is specific in detail, allowing
for the smooth flow of functions that are necessary to set up the restoration shop on schedule
for the Grand Opening. Each function is timed to coincide with the proper execution and time
needed to complete each task. Each manager has specific duties assigned specifically to his
area of expertise. The end of the milestone table also shows the beginning of the 2005
marketing plan.
Chart: Milestones
Page 13
Table: Milestones
Milestones
Milestone
Company Identity
Business Plan Review
Advertising
Car Shows
Employee Hired
Grand Opening
Totals
Start Date
7/10/2004
5/1/2004
12/1/2004
11/1/2004
11/20/2004
8/30/2004
End Date
9/15/2004
8/1/2004
12/1/2005
5/1/2006
11/16/2005
10/15/2004
Budget
$7,500
$0
$42,000
$4,800
$20,800
$1,000
$76,100
Manager
Isoroku
Isoroku
Isoroku
Isoroku
Jane
Jane
Department
Marketing
Finance
Marketing
Marketing
HR
Marketing
Page 14
Personnel Plan
Year 1
Year 2
Year 3
Owner
Foreman
Sheet Metal & Body Technician(s)
Automotive Mechanic(s)
Painting Technician
Admin Asst.
Total People
$21,000
$17,400
$12,831
$15,162
$6,750
$9,000
6
$40,000
$22,400
$45,000
$52,000
$24,000
$20,800
8
$45,000
$30,000
$50,000
$58,000
$27,000
$22,800
8
Total Payroll
$82,143
$204,200
$232,800
Page 15
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$23,500
$142,000
$165,500
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$132,000
$10,000
$0
$10,000
$142,000
$0
$119,000
$6,000
$5,500
$130,500
Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment
$35,000
$0
$0
$35,000
($23,500)
$11,500
$142,000
Total Funding
$165,500
Break-even Analysis
Monthly Revenue Break-even
$20,506
Assumptions:
Average Percent Variable Cost
21%
Page 16
$16,120
Page 17
Year 2
Year 3
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
$311,044
$66,540
$0
$66,540
$471,406
$101,869
$0
$101,869
$623,707
$132,203
$0
$132,203
Gross Margin
Gross Margin %
$244,504
78.61%
$369,537
78.39%
$491,504
78.80%
$82,143
$22,500
$19,992
$21,600
$15,200
$24,000
$0
$8,000
$204,200
$22,500
$20,000
$15,200
$24,000
$0
$0
$0
$232,800
$22,500
$20,000
$24,000
$0
$0
$0
$0
$193,435
$285,900
$299,300
$51,069
$71,061
$6,672
$13,319
$83,637
$103,637
$5,852
$23,335
$192,204
$212,204
$4,720
$56,245
Net Profit
Net Profit/Sales
$31,078
9.99%
$54,449
11.55%
$131,239
21.04%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Fixtures
Total Operating Expenses
Page 18
Page 19
Chart: Cash
Page 20
Year 2
Year 3
$311,044
$311,044
$471,406
$471,406
$623,707
$623,707
$20,716
$5,000
$0
$0
$0
$0
$0
$336,759
$31,396
$7,500
$0
$0
$0
$0
$0
$510,301
$41,539
$5,000
$0
$0
$0
$0
$0
$670,246
Year 1
Year 2
Year 3
$82,143
$176,173
$258,316
$204,200
$207,975
$412,175
$232,800
$238,889
$471,689
$20,716
$3,500
$0
$16,476
$0
$2,400
$9,000
$310,408
$31,396
$6,000
$0
$17,492
$0
$4,000
$0
$471,063
$41,539
$7,500
$0
$18,570
$0
$4,000
$0
$543,298
$26,352
$36,352
$39,239
$75,590
$126,949
$202,539
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Page 21
Year 2
Year 3
$36,352
$17,818
$30,000
$84,170
$75,590
$26,083
$30,000
$131,674
$202,539
$28,695
$30,000
$261,233
$102,400
$19,992
$82,408
$166,578
$106,400
$39,992
$66,408
$198,082
$110,400
$59,992
$50,408
$311,641
Year 1
Year 2
Year 3
$23,476
$1,500
$5,500
$30,476
$16,522
$3,000
$5,500
$25,022
$19,913
$500
$5,500
$25,913
Long-term Liabilities
Total Liabilities
$102,524
$133,000
$85,032
$110,054
$66,462
$92,375
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$35,000
($32,500)
$31,078
$33,578
$166,578
$35,000
($1,422)
$54,449
$88,027
$198,082
$35,000
$53,027
$131,239
$219,266
$311,641
$33,578
$88,027
$219,266
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Net Worth
Page 22
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
51.56%
32.31%
1.55%
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
10.70%
18.01%
50.53%
49.47%
100.00%
13.17%
15.15%
66.47%
33.53%
100.00%
9.21%
9.63%
83.83%
16.17%
100.00%
9.44%
29.30%
52.30%
47.70%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
18.30%
61.55%
79.84%
20.16%
12.63%
42.93%
55.56%
44.44%
8.32%
21.33%
29.64%
70.36%
20.70%
28.94%
49.64%
50.36%
100.00%
78.61%
68.62%
6.43%
16.42%
100.00%
78.39%
66.84%
1.40%
17.74%
100.00%
78.80%
57.76%
1.40%
30.82%
100.00%
100.00%
73.48%
1.33%
0.60%
2.76
2.18
79.84%
132.22%
26.65%
5.26
4.22
55.56%
88.36%
39.27%
10.08
8.97
29.64%
85.51%
60.16%
1.95
1.31
55.95%
1.18%
2.67%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Year 1
Year 2
Year 3
9.99%
92.55%
11.55%
61.86%
21.04%
59.85%
n.a
n.a
5.98
8.25
28
1.87
4.64
12.17
36
2.38
4.83
12.17
27
2.00
n.a
n.a
n.a
n.a
3.96
0.23
1.25
0.23
0.42
0.28
n.a
n.a
$53,694
7.65
$106,651
14.29
$235,320
40.72
n.a
n.a
0.54
18%
2.18
9.26
0.42
13%
4.22
5.36
0.50
8%
8.97
2.84
n.a
n.a
n.a
n.a
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Page 23
Dividend Payout
0.29
0.00
0.00
n.a
Page 24
Appendix
Table: Sales Forecast
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
$5,000
$1,500
$3,000
$3,600
$13,100
$5,750
$1,755
$3,360
$3,600
$14,465
$6,613
$2,053
$3,763
$3,000
$15,429
$7,604
$2,402
$4,215
$3,900
$18,122
$8,745
$2,811
$4,721
$3,900
$20,176
$10,057
$3,289
$5,287
$3,600
$22,232
$11,565
$3,848
$5,921
$3,600
$24,935
$13,300
$4,502
$6,632
$3,900
$28,334
$15,295
$5,267
$7,428
$3,900
$31,890
$17,589
$6,163
$8,319
$3,900
$35,971
$20,228
$7,210
$9,318
$3,900
$40,656
$23,262
$8,436
$10,436
$3,600
$45,734
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$675
$313
$0
$1,440
$2,428
$810
$359
$3,000
$1,440
$5,609
$972
$413
$1,000
$1,200
$3,585
$1,166
$475
$1,000
$1,560
$4,202
$1,400
$547
$1,000
$1,560
$4,506
$1,680
$629
$1,000
$1,440
$4,748
$2,016
$723
$1,000
$1,440
$5,178
$2,419
$831
$1,000
$1,560
$5,810
$2,902
$956
$1,000
$1,560
$6,418
$3,483
$1,099
$1,000
$1,560
$7,142
$4,179
$1,264
$1,000
$1,560
$8,004
$5,015
$1,454
$1,000
$1,440
$8,909
Sales
Restoration Work
Paint Work
Parts
Service
Total Sales
0%
0%
0%
0%
0%
0%
0%
0%
Page 1
Appendix
Table: Personnel
Personnel Plan
Owner
Foreman
Sheet Metal & Body Technician(s)
Automotive Mechanic(s)
Painting Technician
Admin Asst.
Total People
Total Payroll
0%
0%
0%
0%
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$1,000
$0
$0
$0
$0
$0
1
$1,000
$1,000
$0
$0
$0
$0
2
$1,000
$1,000
$0
$0
$0
$0
2
$2,000
$1,000
$0
$0
$0
$1,000
3
$2,000
$1,500
$0
$0
$0
$1,000
3
$2,000
$1,500
$1,833
$2,166
$0
$1,000
5
$2,000
$1,700
$1,833
$2,166
$0
$1,000
5
$2,000
$1,700
$1,833
$2,166
$0
$1,000
5
$2,000
$2,000
$1,833
$2,166
$1,500
$1,000
6
$2,000
$2,000
$1,833
$2,166
$1,500
$1,000
6
$2,000
$2,000
$1,833
$2,166
$1,750
$1,000
6
$2,000
$2,000
$1,833
$2,166
$2,000
$1,000
6
$1,000
$2,000
$2,000
$4,000
$4,500
$8,499
$8,699
$8,699
$10,499
$10,499
$10,749
$10,999
Page 2
Appendix
Table: 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
$13,100
$14,465
$15,429
$18,122
$20,176
$22,232
$24,935
$28,334
$31,890
$35,971
$40,656
$45,734
$2,428
$5,609
$3,585
$4,202
$4,506
$4,748
$5,178
$5,810
$6,418
$7,142
$8,004
$8,909
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,428
$5,609
$3,585
$4,202
$4,506
$4,748
$5,178
$5,810
$6,418
$7,142
$8,004
$8,909
Gross Margin
$10,673
$8,856
$11,844
$13,920
$15,670
$17,484
$19,756
$22,524
$25,472
$28,829
$32,652
$36,824
Gross Margin %
81.47%
61.22%
76.76%
76.81%
77.67%
78.64%
79.23%
79.49%
79.87%
80.14%
80.31%
80.52%
$1,000
$2,000
$2,000
$4,000
$4,500
$8,499
$8,699
$8,699
$10,499
$10,499
$10,749
$10,999
$0
$1,000
$1,000
$1,500
$1,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
Depreciation
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
$1,666
Rent
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
Utilities
$2,000
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
Insurance
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$0
$1,000
$0
$1,000
$0
$1,200
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$1,000
$0
$1,000
$0
$1,000
$9,466
$10,666
$10,866
$12,466
$12,966
$17,965
$18,165
$18,165
$19,965
$20,665
$20,915
$21,165
$1,207
($1,810)
$978
$1,454
$2,704
($481)
$1,591
$4,359
$5,507
$8,164
$11,737
$15,659
EBITDA
$2,873
($144)
$2,644
$3,120
$4,370
$1,185
$3,257
$6,025
$7,173
$9,830
$13,403
$17,325
Interest Expense
$588
$590
$587
$572
$561
$554
$548
$549
$534
$527
$536
$525
Taxes Incurred
$185
($720)
$117
$264
$643
($311)
$313
$1,143
$1,492
$2,291
$3,360
$4,540
Expenses
Payroll
Marketing/Promotion
Payroll Taxes
Fixtures
Net Profit
Net Profit/Sales
15%
$433
($1,680)
$273
$617
$1,500
($725)
$731
$2,667
$3,481
$5,346
$7,840
$10,594
3.30%
-11.62%
1.77%
3.41%
7.43%
-3.26%
2.93%
9.41%
10.92%
14.86%
19.28%
23.16%
Page 3
Appendix
Table: Cash Flow
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Sales
$13,100
$14,465
$15,429
$18,122
$20,176
$22,232
$24,935
$28,334
$31,890
$35,971
$40,656
$45,734
$13,100
$14,465
$15,429
$18,122
$20,176
$22,232
$24,935
$28,334
$31,890
$35,971
$40,656
$45,734
$872
$0
$963
$1,000
$1,028
$1,000
$1,207
$0
$1,344
$0
$1,481
$0
$1,661
$0
$1,887
$1,000
$2,124
$0
$2,396
$0
$2,708
$2,000
$3,046
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$13,972
$16,428
$17,457
$19,328
$21,520
$23,713
$26,595
$31,221
$34,014
$38,367
$45,363
$48,779
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
Cash Received
Cash from Operations
6.66%
$1,000
$2,000
$2,000
$4,000
$4,500
$8,499
$8,699
$8,699
$10,499
$10,499
$10,749
$10,999
Bill Payments
$6,429
$13,056
$18,478
$8,061
$12,625
$13,125
$13,323
$14,762
$16,595
$17,542
$19,982
$22,195
$7,429
$15,056
$20,478
$12,061
$17,125
$21,624
$22,022
$23,461
$27,094
$28,041
$30,731
$33,194
$872
$963
$1,028
$1,207
$1,344
$1,481
$1,661
$1,887
$2,124
$2,396
$2,708
$3,046
$0
$0
$500
$1,000
$500
$0
$0
$0
$1,000
$0
$0
$500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,336
$1,342
$1,349
$1,356
$1,363
$1,370
$1,376
$1,383
$1,390
$1,397
$1,404
$1,410
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$0
$0
$0
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$9,837
$17,561
$23,555
$16,824
$21,532
$25,674
$26,259
$27,931
$32,808
$33,034
$36,042
$39,350
$4,135
($1,133)
($6,098)
$2,504
($12)
($1,961)
$336
$3,290
$1,206
$5,333
$9,321
$9,429
Cash Balance
$14,135
$13,003
$6,904
$9,409
$9,397
$7,435
$7,772
$11,062
$12,268
$17,601
$26,922
$36,352
Page 4
Appendix
Table: Balance Sheet
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$10,000
$2,000
$30,000
$42,000
$14,135
$4,855
$30,000
$48,990
$13,003
$11,219
$30,000
$54,221
$6,904
$7,633
$30,000
$44,538
$9,409
$8,403
$30,000
$47,812
$9,397
$9,012
$30,000
$48,409
$7,435
$9,496
$30,000
$46,932
$7,772
$10,357
$30,000
$48,128
$11,062
$11,620
$30,000
$52,682
$12,268
$12,837
$30,000
$55,105
$17,601
$14,284
$30,000
$61,886
$26,922
$16,007
$30,000
$72,929
$36,352
$17,818
$30,000
$84,170
$100,000
$0
$100,000
$142,000
$100,200
$1,666
$98,534
$147,524
$100,400
$3,332
$97,068
$151,289
$100,600
$4,998
$95,602
$140,140
$100,800
$6,664
$94,136
$141,948
$101,000
$8,330
$92,670
$141,079
$101,200
$9,996
$91,204
$138,136
$101,400
$11,662
$89,738
$137,866
$101,600
$13,328
$88,272
$140,954
$101,800
$14,994
$86,806
$141,911
$102,000
$16,660
$85,340
$147,226
$102,200
$18,326
$83,874
$156,803
$102,400
$19,992
$82,408
$166,578
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$6,000
$0
$5,500
$11,500
$12,428
$0
$5,500
$17,928
$18,215
$1,000
$5,500
$24,715
$7,641
$1,500
$5,500
$14,641
$12,188
$500
$5,500
$18,188
$12,682
$0
$5,500
$18,182
$12,833
$0
$5,500
$18,333
$14,209
$0
$5,500
$19,709
$16,013
$1,000
$5,500
$22,513
$16,879
$0
$5,500
$22,379
$19,244
$0
$5,500
$24,744
$21,386
$2,000
$5,500
$28,886
$23,476
$1,500
$5,500
$30,476
Long-term Liabilities
Total Liabilities
$119,000
$130,500
$117,664
$135,592
$116,322
$141,037
$114,973
$129,614
$113,617
$131,805
$112,254
$130,436
$110,884
$129,217
$109,508
$129,217
$108,125
$130,638
$106,735
$129,114
$105,338
$130,082
$103,934
$132,820
$102,524
$133,000
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$35,000
($23,500)
$0
$11,500
$142,000
$35,000
($23,500)
$433
$11,933
$147,524
$35,000
($23,500)
($1,247)
$10,253
$151,289
$35,000
($23,500)
($974)
$10,526
$140,140
$35,000
($24,500)
($357)
$10,143
$141,948
$35,000
($25,500)
$1,143
$10,643
$141,079
$35,000
($26,500)
$418
$8,918
$138,136
$35,000
($27,500)
$1,149
$8,649
$137,866
$35,000
($28,500)
$3,816
$10,316
$140,954
$35,000
($29,500)
$7,297
$12,797
$141,911
$35,000
($30,500)
$12,643
$17,143
$147,226
$35,000
($31,500)
$20,484
$23,984
$156,803
$35,000
($32,500)
$31,078
$33,578
$166,578
$11,500
$11,933
$10,253
$10,526
$10,143
$10,643
$8,918
$8,649
$10,316
$12,797
$17,143
$23,984
$33,578
Assets
Starting Balances
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Net Worth
Page 5