BUSINESS PLAN
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Busweek7.xlsxSource Data & profits
| Company Name: | SexLab | ||||||||||||
| Opening Day of Business (Year 1) | 5/5/20 : Jason Ripley: Insert start date for business Format = year-month-day so 21-1-1 for Jan 1, 2021 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| Closing Day of Business (Year 1) | 5/5/21 : Jason Ripley: Insert year end date for business in format year-month-day, so 21-12-31 for Dec 31, 2021 |
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| Calculating Depreciationi Expense: | |||||||||||||
| Startup Financing: | Straight Line technique. Depreciation expense = (Original Cost - Salvage Value) / Number of years in life span | ||||||||||||
| Initial Capital invested | $ 2,400.00 | Item | Purchase Price | Salvage Value | Usefull Life | Depreciation Expense | |||||||
| Additional investment from sole-proprietorship Stakeholders | $ 321.00 | Office Acccessories, Electronics e.g., Monitors, Displays | $ 3,220.00 | $ 3,105.00 | 13.00 | $ 8.85 | |||||||
| Investment from other Managerial Staff/ Board Members/ Board Directors | $ 2,313.00 | Light/ Design Equipment | $ 2,370.00 | $ 195.00 | 9.00 | $ 241.67 | |||||||
| Capital from Financial Insitutions, Grants, Loans or Government | $ 124.00 : Jason Ripley: This will sum the two cells below: Short Term + Long Term debt | Machines | $ 900.00 | $ 700.00 | 11.00 | $ 18.18 | |||||||
| Short Term Debt (line of credit, notes payable etc.) | $ 93.00 | Raw materials | $ 1,200.00 | $ 1,150.00 | 14.00 | $ 3.57 | |||||||
| Long Term Debt Long Term Loans etc. | $ 23.00 | ||||||||||||
| Startup Expenses: | |||||||||||||
| Cast for retrofit or renovating buildings or leased space? | $ 44.00 | Sales | |||||||||||
| Cost of purchased Equipemnt? | $ 123.00 | ||||||||||||
| Cost of purchased Furniture (tables/chairs), Public Address Systems. | $ 234.00 | ||||||||||||
| Cost of Purchased Office Stationeries, Computers | $ 332.00 | ||||||||||||
| Cost of Advanced Marketing & Advertising? | $ 89.00 | ||||||||||||
| Cost of Operational Licenses to operate, or Legal fees | $ 93.00 | ||||||||||||
| Cost of Purchased Inventory | $ 125.00 | Calculation of the Total sales: | |||||||||||
| Mischallenous Costs | $ 132.00 | ||||||||||||
| Cost of Purchasing/Hiring delivery vehicles | $ 259.00 | Variable 1 (covers, $sales/hr, REVPAR etc.) | Variable 2 (Labor output$/cover, # hours, # rooms etc.) | Total Sales | |||||||||
| Cash reserve for short term debt or emergency | $ 223.00 | 25 | 9 | $ 225.00 | |||||||||
| Outstanding Accounts Payable | $ 922.00 | ||||||||||||
| Profit & Loss: | Labour Costs | ||||||||||||
| Sales | $ 225.00 | What salaries will you pay your managers (and owners)? These are fixed costs and do not change based on revenue, you incur them | |||||||||||
| Average, or expected annual growth rate for Industry sales? | 2.00% | even when your business is closed. Your Labour costs for the rest of your employees however are considered variable, because you | |||||||||||
| Mean rate of returns & Discounts for Industry. | 1.52% | alter them depending on business volumes. | |||||||||||
| Mean price volatility of item | 2.21% | Annual Salary | |||||||||||
| Mean profitability of items | 3.25% | Manager 1 | $ 1,000.00 | ||||||||||
| Salaries for Executive Staff? | $ 4,000.00 | Manager 2 | $ 1,000.00 | ||||||||||
| Employee Compensation cost | 155.28% | Manager 3 | $ 1,000.00 | ||||||||||
| Monthly costs | $ 17.92 | Manager 4 | $ 1,000.00 | ||||||||||
| Office Expenses e.g., Paper rolls, pens/pencils, envelopes, printer paper etc. | 12.89% | ||||||||||||
| Ongoing marketing budget | 3.45% | Industry average variable labour cost | 155.28% | ||||||||||
| Repairs & Maintenance (R&M) costs | 3.61% | ||||||||||||
| Utilities expense e.g., Internet | 4.85% | Rent/Lease Costs | |||||||||||
| Licence and other fees include things like a business licence, a liquor licence, consulting/accounting/legal fees. | 5.12% | If you are not purchasing your physical location, then you will likely be leasing a space. Lease costs are typically based on square | |||||||||||
| Interest expense or Mean borrowing costs. | 3.61% | footage (or square meters). The cost per square foot will be different depending on where you plan to open your business. Use | |||||||||||
| Mean Corporate tax rate for business operation. | 2.14% | sources such as www.realtor.ca, or search for commercial leasing companies in the area you are planning your virtual business. | |||||||||||
| Cash Flow: | |||||||||||||
| Accounts receivable i.e.credit one willing that affects your cash flow position. | $ 4,350.00 | Industry average per square foot cost | $ 43.00 | ||||||||||
| Total value of inventory expected at the end of the year. | $ 1,350.00 | Number of square feet required | 5.00 | $ 215.00 | Annual Lease Costs | ||||||||
| Additional purchases e.g maintenance, purchases: | $ 250.00 | ||||||||||||
| Electronics e.g., Monitors, PhonesDisplays | $ 3,220.00 | Calculating Interest Expense | |||||||||||
| Camera Light/ Design Equipment | $ 202.00 | Interest Rate | Length of Loan (yrs) | Amount Borrowed | Interest Expense (per month) | ||||||||
| Machines | $ - 0 | 1% | 1.00 | $ 124.00 | $ 0.10 | $ (124.00) | |||||||
| Raw Materials | $ 570.00 | Based on these numbers, your monthly payment will be: | $10.91 | ||||||||||
| Creditor's Payback @end of the year. | $ 150.00 | ||||||||||||
| Short term debts & Notes payable balance for end of the year. | $ 90.00 | ||||||||||||
Cash Flow
| SexLab | ||||||||||||
| Cash Flow | ||||||||||||
| January, 2020 | February, 2020 | March, 2020 | April, 2020 | May, 2020 | June, 2020 | July, 2020 | August, 2020 | September, 2020 | October, 2020 | November, 2020 | December, 2020 | |
| Cash Balance at Beginning of Month | $ 223.00 | $ (1,185.12) | $ (2,593.55) | $ (4,002.31) | $ (5,411.39) | $ (6,820.78) | $ (8,230.50) | $ (9,640.54) | $ (11,050.91) | $ (12,461.60) | $ (13,872.61) | $ (15,283.94) |
| Cash Flow From Operating Activities | ||||||||||||
| Changes in accounts receivables | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) | $ (362.50) |
| Changes in inventory | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) | $ (102.08) |
| Changes in accounts payable | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) | $ (64.33) |
| Changes in depreciation | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 |
| Net Profit | $ (558.17) | $ (558.49) | $ (558.81) | $ (559.13) | $ (559.45) | $ (559.77) | $ (560.09) | $ (560.42) | $ (560.74) | $ (561.06) | $ (561.39) | $ (561.71) |
| Total Changes in Cash from Operations | $ (1,064.40) | $ (1,064.71) | $ (1,065.03) | $ (1,065.36) | $ (1,065.68) | $ (1,066.00) | $ (1,066.32) | $ (1,066.64) | $ (1,066.97) | $ (1,067.29) | $ (1,067.61) | $ (1,067.94) |
| Cash Flow from Investing Activities | ||||||||||||
| Capital Expenditures - New Equipment | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) | $ (285.17) |
| Capital Expenditures - New Vehicles | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) | $ (47.50) |
| Total Changes in Cash from Investing | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) | $ (332.67) |
| Cash Flow from Financing Activities | ||||||||||||
| Long Term Notes Payable Repayments | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) | $ (10.80) |
| Short Term Notes Payable Repayment | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) | $ (0.25) |
| Total Changes in Cash from Financing | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) | $ (11.05) |
| Cash Balance at End of Month | $ (1,185.12) | $ (2,593.55) | $ (4,002.31) | $ (5,411.39) | $ (6,820.78) | $ (8,230.50) | $ (9,640.54) | $ (11,050.91) | $ (12,461.60) | $ (13,872.61) | $ (15,283.94) | $ (16,695.61) |
Income Statement
| SexLab | ||||||||||||
| Income Statement for Year Ending: | May 5, 2021 | |||||||||||
| Income | May, 2020 | June, 2020 | July, 2020 | August, 2020 | September, 2020 | October, 2020 | November, 2020 | December, 2020 | January, 2021 | February, 2021 | March, 2021 | April, 2021 |
| Gross Sales | $ 225.00 | $ 225.38 | $ 225.75 | $ 226.13 | $ 226.50 | $ 226.88 | $ 227.26 | $ 227.64 | $ 228.02 | $ 228.40 | $ 228.78 | $ 229.16 |
| Less Returns & Discounts | $ 3.42 | $ 3.43 | $ 3.43 | $ 3.44 | $ 3.44 | $ 3.45 | $ 3.45 | $ 3.46 | $ 3.47 | $ 3.47 | $ 3.48 | $ 3.48 |
| Net Sales | $ 221.58 | $ 221.95 | $ 222.32 | $ 222.69 | $ 223.06 | $ 223.43 | $ 223.81 | $ 224.18 | $ 224.55 | $ 224.93 | $ 225.30 | $ 225.68 |
| Cost of Goods Sold: | ||||||||||||
| Sales within U.S | $ 4.97 | $ 4.98 | $ 4.99 | $ 5.00 | $ 5.01 | $ 5.01 | $ 5.02 | $ 5.03 | $ 5.04 | $ 5.05 | $ 5.06 | $ 5.06 |
| Sales outside U.S | $ 7.31 | $ 7.32 | $ 7.34 | $ 7.35 | $ 7.36 | $ 7.37 | $ 7.39 | $ 7.40 | $ 7.41 | $ 7.42 | $ 7.44 | $ 7.45 |
| Gross Profit | $ 209.30 | $ 209.64 | $ 209.99 | $ 210.34 | $ 210.69 | $ 211.04 | $ 211.40 | $ 211.75 | $ 212.10 | $ 212.46 | $ 212.81 | $ 213.16 |
| Expenses | ||||||||||||
| Fixed Labour Cost (manager salaries) | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 | $ 333.33 |
| Variable Labour Cost | $ 349.38 | $ 349.96 | $ 350.54 | $ 351.13 | $ 351.71 | $ 352.30 | $ 352.89 | $ 353.48 | $ 354.06 | $ 354.65 | $ 355.25 | $ 355.84 |
| Rent (Lease) | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 | $ 17.92 |
| Office Expenses | $ 29.00 | $ 29.05 | $ 29.10 | $ 29.14 | $ 29.19 | $ 29.24 | $ 29.29 | $ 29.34 | $ 29.39 | $ 29.44 | $ 29.49 | $ 29.53 |
| Marketing Expense | $ 7.77 | $ 7.79 | $ 7.80 | $ 7.81 | $ 7.83 | $ 7.84 | $ 7.85 | $ 7.86 | $ 7.88 | $ 7.89 | $ 7.90 | $ 7.92 |
| Repairs & Maintenance | $ 8.12 | $ 8.14 | $ 8.15 | $ 8.16 | $ 8.18 | $ 8.19 | $ 8.20 | $ 8.22 | $ 8.23 | $ 8.25 | $ 8.26 | $ 8.27 |
| Utilities | $ 10.92 | $ 10.94 | $ 10.95 | $ 10.97 | $ 10.99 | $ 11.01 | $ 11.03 | $ 11.05 | $ 11.06 | $ 11.08 | $ 11.10 | $ 11.12 |
| Licenses & Other Fees | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Total Operating Expenses | $ 756.45 | $ 757.12 | $ 757.80 | $ 758.48 | $ 759.15 | $ 759.83 | $ 760.52 | $ 761.20 | $ 761.88 | $ 762.56 | $ 763.25 | $ 763.94 |
| EBITDA | $ (547.15) | $ (547.48) | $ (547.80) | $ (548.13) | $ (548.46) | $ (548.79) | $ (549.12) | $ (549.45) | $ (549.78) | $ (550.11) | $ (550.44) | $ (550.77) |
| Depreciation Expense | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 | $ 22.69 |
| Interest | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 |
| Taxes | $ (11.71) | $ (11.72) | $ (11.72) | $ (11.73) | $ (11.74) | $ (11.74) | $ (11.75) | $ (11.76) | $ (11.77) | $ (11.77) | $ (11.78) | $ (11.79) |
| Net Profit | $ (558.17) | $ (558.49) | $ (558.81) | $ (559.13) | $ (559.45) | $ (559.77) | $ (560.09) | $ (560.42) | $ (560.74) | $ (561.06) | $ (561.39) | $ (561.71) |
Balance Sheet
| SexLab | ||
| Balance Sheet As At: | ||
| May 5, 2020 | May 5, 2021 | |
| Current Assets | ||
| Cash and Cash Equivalents | $ 223.00 | $ (16,695.61) |
| Accounts Receivable | $ - 0 | $ 4,350.00 |
| Inventories | $ 125.00 | $ 1,350.00 |
| Total Current Assets | $ 348.00 | $ (10,995.61) |
| Fixed Assets | ||
| Electronics e.g., Monitors, PhonesDisplays | $ 123.00 | $ 3,343.00 |
| Less Accumulated Depreciation | $ - 0 | $ 8.85 |
| Camera Light/ Design Equipment | $ 234.00 | $ 436.00 |
| Less Accumulated Depreciation | $ - 0 | $ 241.67 |
| Machines | $ 332.00 | $ 332.00 |
| Less Accumulated Depreciation | $ - 0 | $ 18.18 |
| Raw Materials | $ 259.00 | $ 829.00 |
| Less Accumulated Depreciation | $ - 0 | $ 3.57 |
| Total Fixed Assets | $ 948.00 | $ 4,667.73 |
| Total Assets | $ 1,296.00 | $ (6,327.87) |
| Current Liabilities | ||
| Accounts Payable | $ 922.00 | $ 150.00 |
| Short Term Notes Payable | $ 93.00 | $ 90.00 |
| Total Current Liabilities | $ 1,015.00 | $ 240.00 |
| Long-term debt | ||
| Long Term Notes Payable | $ 23.00 | $ (106.66) |
| Total Long Term Debt | $ 23.00 | $ (106.66) |
| Total Liabilities | $ 1,038.00 | $ 133.34 |
| Owners Equity | ||
| Owners Equity/Partnership Equity/Retained Earnings | $ 258.00 | $ (6,461.21) |
Data Summary
| Metric | Value |
| Debt-Equity Ratio | 0.0210721711 |
| Debt Ratio | 0.0210721711 |
| Return on Assets | 0.0884870148 |
| Gross Profit Margin | 0.9727 |
| Cash Ratio | -69.56502101 |
| Current Ratio | -45.81502101 |
Balance Sheet (2)
| BALANCE SHEET | |||
| Year 1 (2022) | Year 2 (2023) | Year 3 (2024) | |
| Current Assets | |||
| Cash and Cash Equivalents | $ 223.00 | 16695.6050422331 | $ 33,168.21 |
| Accounts Receivable | $ - 0 | 4350 | $ 8,700.00 |
| Inventories | $ 125.00 | 1350 | $ 2,575.00 |
| Total Current Assets | $ 348.00 | 10995.6050422331 | $ 21,643.21 |
| Fixed Assets | |||
| Electronics e.g., Monitors, PhonesDisplays | $ 123.00 | 3343 | $ 6,563.00 |
| Less Accumulated Depreciation | $ - 0 | 8.8461538462 | $ 17.69 |
| Camera Light/ Design Equipment | $ 234.00 | 436 | $ 638.00 |
| Less Accumulated Depreciation | $ - 0 | 241.6666666667 | $ 483.33 |
| Machines | $ 332.00 | 332 | $ 332.00 |
| Less Accumulated Depreciation | $ - 0 | 18.1818181818 | $ 36.36 |
| Raw Materials | $ 259.00 | 829 | $ 1,399.00 |
| Less Accumulated Depreciation | $ - 0 | 3.5714285714 | $ 7.14 |
| Total Fixed Assets | $ 948.00 | 4667.7339327339 | $ 8,387.47 |
| Total Assets | $ 1,296.00 | 6327.8711094991 | $ 11,359.74 |
| Current Liabilities | |||
| Accounts Payable | $ 922.00 | 150 | $ (622.00) |
| Short Term Notes Payable | $ 93.00 | 90 | $ 87.00 |
| Total Current Liabilities | $ 1,015.00 | 240 | $ (535.00) |
| Long-term debt | |||
| Long Term Notes Payable | $ 23.00 | 106.6580173796 | $ 190.32 |
| Total Long Term Debt | $ 23.00 | 106.6580173796 | $ 190.32 |
| Total Liabilities | $ 1,038.00 | 133.3419826204 | $ (771.32) |
| Owners Equity | |||
| Owners Equity/Partnership Equity/Retained Earnings | $ 258.00 | 6461.2130921195 | $ 12,664.43 |
Break-Even Analysis
| Column1 | Year 1 | Year 2 | Year 3 | |||||
| Sale | 125 | 1350 | 2575 | BP | 600 | 4000 | ||
| Fixed Cost | 400 | 400 | 21643.2100844662 | 1300 | ||||
| Variable cost | 2 | 2 | 0 | Changes in sales Volume | ||||
| Sales volume | 32 | 2.962962963 | 1.5533980583 | Column1 | Year 1 | Year 2 | Year 3 | |
| Sales price | 1300 | 1300 | 17.6923076923 | Sale | 1296 | 6327.8711094991 | 11359.7422189982 | |
| Revenue (Total Sales) | 41600 | 3851.8518518518 | 638 | Fixed Cost | 400 | 400 | 0 | |
| Total cost (FC+VC) | 2600 | 2600 | 483.3333333333 | Variable cost | 2 | 2 | 0 | |
| Profit | 39000 | 1251.8518518518 | 332 | Sales volume | 3.3950617284 | 0.6953365396 | 0.387332733 | |
| Break Even Quantities | 1.1428571429 | -2.8571428571 | 36.3636363636 | Sales price | 1300 | 1300 | 87 | |
| Revenue (Total Sales) | 4413.5802469136 | 903.9375014155 | -535 | |||||
| Total cost (FC+VC) | 2600 | 2600 | 0 | |||||
| Profit | 1813.5802469136 | -1696.0624985845 | 0 | |||||
| Break Even Quantities | -5.612244898 | -0.2104106962 | 190.3160347592 | |||||
