etermine your terminal value using a going-out cap rate, then estimate your net sale proceeds. See Real Estate Principles: A Value Approach, Exhitbit 19-3.
jonecam
727_houston.docx|
727 Inc |
|
|
Executive Summary
727 Inc
727 Inc is a Buffalo Gastropub specializing in craft beer and new age pub food.
Food and Beer
We offer 50 craft beers on tap. 10 of them from local western new York breweries. Our food menu specializes in fresh game burgers. Such as Elk, Venison, Ostrich, Duck and Buffalo Meat. We also have the best mac and cheese in western new York. The award winning recipe can be used to mac any kind of mac and cheese that you can think of. From Jalapeno Cheddar Mac to Lobster to Soft Pretzel Mac. All of which pair nicely with Our craft brew on tap.
30 something financially mobile people
We cater to the upwardly mobile 30 something crowd that has a small disposable income and the taste to spend it wisely.
600,000
Financial Highlights
As you can see from the graph below our first year at 727 Inc has been a great success. Our revenue has climbed to almost 800,000 dollars. B keeping our costs down and using our vendors frugally we have managed to Net over 600,000.
Financial Highlights by Year
We expect to cover all opening costs and turn a small profit in 9 months time.
Financial Highlights by Year
Financing Needed
The business is already self sufficient having grossed 17K in the first week of operation
Company
Company Overview
Company History
Management Team
Products and Services
Products and Services
Competitors
Target Market
Market Overview
Market Needs
Strategy and Implementation
Marketing Plan
Overview
Positioning
Pricing
Promotion
Distribution
Milestones
|
Milestone |
Due Date |
Financial Plan
Revenue Forecast
Revenue Forecast
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Revenue |
|
|
|
|
|
|
Test |
$761,700 |
|
|
|
|
|
Credit Card Sales |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
Total Revenue |
$4,601,700 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
Direct Cost |
|
|
|
|
|
|
Gas Bill |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
|
Mortgage |
$102,336 |
$102,336 |
$102,336 |
$102,336 |
$102,336 |
|
Direct Labor |
|
|
|
|
|
|
Total Direct Cost |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
|
Gross Margin |
$4,493,364 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
|
Gross Margin % |
98% |
97% |
97% |
97% |
97% |
Revenue by Month
About the Revenue Forecast
Our Financial goals are to pay back all of the opening costs associated with getting open. We do expect to turn a solid profit in 9 months. We have used a small budget to advertise on local radio stations as well as the free press that is handed out in the neighborhood.
Personnel Plan
Personnel Table
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Pres |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Total |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
About the Personnel Plan
Budget
Budget Table
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Operating Expenses |
|
|
|
|
|
|
Salary |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Employee Related Expenses |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
|
Utilities |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
|
Office Supplies |
|
|
|
|
|
|
Insurance |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
|
Total Operating Expenses |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
Expenses by Month
About the Budget
Starting Balances
|
Assets |
|
|
Cash |
$200,000 |
|
Accounts Receivable |
$0 |
|
Inventory |
$80,000 |
|
Long-Term Assets |
$150,000 |
|
Accumulated Depreciation |
$0 |
|
|
|
|
Liabilities |
|
|
Accounts Payable |
|
|
Corporate Taxes Payable |
|
|
Sales Taxes Payable |
$15,000 |
|
Short-Term Debt |
|
|
Long-Term Debt |
|
|
|
|
|
Capital |
|
|
Paid-In Capital |
|
|
Retained Earnings |
$415,000 |
|
|
|
Cash Flow Assumptions
Cash Flow Assumptions
|
|
|
|
Cash Inflow |
|
|
% of Sales on Credit |
100% |
|
Avg Collection Period (Days) |
30 |
|
Cash Outflow |
|
|
% of Purchases on Credit |
83% |
|
Avg Payment Delay (Days) |
15 |
|
Inventory |
|
|
Months to Keep on Hand |
0 |
|
Minimum Inventory Purchase |
$0 |
About the Cash Flow Assumptions
Loans and Investments
Loans and Investments Table
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Total Amount Received |
|
|
|
|
|
Sources of Funds
Use of Funds
Financial Statements
Profit and Loss Statement
Profit and Loss Statement
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Revenue |
$4,601,700 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
|
|
|
|
|
|
|
Direct Costs |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
|
|
|
|
|
|
|
|
Gross Margin |
$4,493,364 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
|
Gross Margin % |
98% |
97% |
97% |
97% |
97% |
|
Operating Expenses |
|
|
|
|
|
|
Salary |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Employee Related Expenses |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
|
Utilities |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
|
Office Supplies |
|
|
|
|
|
|
Insurance |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
|
Total Operating Expenses |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
|
|
|
|
|
|
|
|
Operating Income |
$4,414,764 |
$3,653,064 |
$3,653,064 |
$3,653,064 |
$3,653,064 |
|
|
|
|
|
|
|
|
Interest Incurred |
|
|
|
|
|
|
Depreciation and Amortization |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
|
Income Taxes |
$383,667 |
$317,018 |
$317,018 |
$317,018 |
$317,018 |
|
Total Expenses |
$600,603 |
$533,954 |
$533,954 |
$533,954 |
$533,954 |
|
Net Profit |
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Net Profit / Sales |
87% |
86% |
86% |
86% |
86% |
Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement
Balance Sheet
Balance Sheet
|
As of Period's End |
Starting Balances |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Cash |
$200,000 |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
$17,271,160 |
|
Accounts Receivable |
$0 |
$414,500 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
|
Inventory |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
Other Current Assets |
|
|
|
|
|
|
|
Total Current Assets |
$280,000 |
$4,335,257 |
$7,663,031 |
$10,999,074 |
$14,335,117 |
$17,671,160 |
|
|
|
|
|
|
|
|
|
Long-Term Assets |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
|
Accumulated Depreciation |
$0 |
($30,000) |
($60,000) |
($90,000) |
($120,000) |
($150,000) |
|
Total Long-Term Assets |
$150,000 |
$120,000 |
$90,000 |
$60,000 |
$30,000 |
$0 |
|
|
|
|
|
|
|
|
|
Total Assets |
$430,000 |
$4,455,257 |
$7,753,031 |
$11,059,074 |
$14,365,117 |
$17,671,160 |
|
|
|
|
|
|
|
|
|
Accounts Payable |
|
$4,473 |
$4,470 |
$4,467 |
$4,464 |
$4,461 |
|
Income Taxes Payable |
|
$34,687 |
$26,418 |
$26,418 |
$26,418 |
$26,418 |
|
Sales Taxes Payable |
$15,000 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Short-Term Debt |
|
|
|
|
|
|
|
Prepaid Revenue |
|
|
|
|
|
|
|
Total Current Liabilities |
$15,000 |
$39,160 |
$30,888 |
$30,885 |
$30,882 |
$30,879 |
|
Long-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
$15,000 |
$39,160 |
$30,888 |
$30,885 |
$30,882 |
$30,879 |
|
|
|
|
|
|
|
|
|
Paid-in Capital |
|
|
|
|
|
|
|
Retained Earnings |
$415,000 |
$415,000 |
$4,416,097 |
$7,722,143 |
$11,028,189 |
$14,334,235 |
|
Earnings |
|
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Total Owner's Equity |
$415,000 |
$4,416,097 |
$7,722,143 |
$11,028,189 |
$14,334,235 |
$17,640,281 |
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$430,000 |
$4,455,257 |
$7,753,031 |
$11,059,074 |
$14,365,117 |
$17,671,160 |
About the Balance Sheet
Cash Flow Statement
Cash Flow Statement
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Net Cash Flow from Operations |
|
|
|
|
|
|
Net Profit |
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Depreciation and Amortization |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
|
Change in Accounts Receivable |
($414,500) |
$94,500 |
$0 |
$0 |
$0 |
|
Change in Inventory |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Change in Accounts Payable |
$4,473 |
($3) |
($3) |
($3) |
($3) |
|
Change in Income Tax Payable |
$34,687 |
($8,269) |
$0 |
$0 |
$0 |
|
Change in Sales Tax Payable |
($15,000) |
$0 |
$0 |
$0 |
$0 |
|
Change in Prepaid Revenue |
|
|
|
|
|
|
Net Cash Flow from Operations |
$3,640,757 |
$3,422,274 |
$3,336,043 |
$3,336,043 |
$3,336,043 |
|
Investing & Financing |
|
|
|
|
|
|
Assets Purchased or Sold |
|
|
|
|
|
|
Investments Received |
|
|
|
|
|
|
Change in Long-Term Debt |
|
|
|
|
|
|
Change in Short-Term Debt |
|
|
|
|
|
|
Dividends & Distributions |
|
|
|
|
|
|
Net Cash Flow from Investing & Financing |
|
|
|
|
|
|
Cash at Beginning of Period |
$200,000 |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
|
Net Change in Cash |
$3,640,757 |
$3,422,274 |
$3,336,043 |
$3,336,043 |
$3,336,043 |
|
Cash at End of Period |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
$17,271,160 |
Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement
|
727 Inc |
|
|
|
|
|
|
|
1 |
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Appendix
Revenue Forecast
Revenue Forecast Table (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Test |
$38,700 |
$38,700 |
$41,300 |
$45,500 |
$53,200 |
$58,700 |
$69,400 |
$74,900 |
$75,700 |
$83,400 |
$87,700 |
$94,500 |
|
Credit Card Sales |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
|
Total Revenue |
$358,700 |
$358,700 |
$361,300 |
$365,500 |
$373,200 |
$378,700 |
$389,400 |
$394,900 |
$395,700 |
$403,400 |
$407,700 |
$414,500 |
|
Direct Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Bill |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
|
Mortgage |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
$8,528 |
|
Direct Labor |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Direct Cost |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
|
Gross Margin |
$349,672 |
$349,672 |
$352,272 |
$356,472 |
$364,172 |
$369,672 |
$380,372 |
$385,872 |
$386,672 |
$394,372 |
$398,672 |
$405,472 |
|
Gross Margin % |
97% |
97% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Revenue |
|
|
|
|
|
|
Test |
$761,700 |
|
|
|
|
|
Credit Card Sales |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
Total Revenue |
$4,601,700 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
Direct Cost |
|
|
|
|
|
|
Gas Bill |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
|
Mortgage |
$102,336 |
$102,336 |
$102,336 |
$102,336 |
$102,336 |
|
Direct Labor |
|
|
|
|
|
|
Total Direct Cost |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
|
Gross Margin |
$4,493,364 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
|
Gross Margin % |
98% |
97% |
97% |
97% |
97% |
Personnel Plan
Personnel Table (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Pres |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
|
Total |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Pres |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Total |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
Budget
Budget Table (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salary |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
|
Employee Related Expenses |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
|
Utilities |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
|
Office Supplies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
|
Total Operating Expenses |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Operating Expenses |
|
|
|
|
|
|
Salary |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Employee Related Expenses |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
|
Utilities |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
|
Office Supplies |
|
|
|
|
|
|
Insurance |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
|
Total Operating Expenses |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
Loans and Investments
Loans and Investments Table (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Total Amount Received |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Total Amount Received |
|
|
|
|
|
Profit and Loss Statement
Profit and Loss Statement (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Revenue |
$358,700 |
$358,700 |
$361,300 |
$365,500 |
$373,200 |
$378,700 |
$389,400 |
$394,900 |
$395,700 |
$403,400 |
$407,700 |
$414,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Costs |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
$9,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
$349,672 |
$349,672 |
$352,272 |
$356,472 |
$364,172 |
$369,672 |
$380,372 |
$385,872 |
$386,672 |
$394,372 |
$398,672 |
$405,472 |
|
Gross Margin % |
97% |
97% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
98% |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salary |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
$4,000 |
|
Employee Related Expenses |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
$800 |
|
Utilities |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
$1,600 |
|
Office Supplies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
|
Total Operating Expenses |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
$6,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$343,122 |
$343,122 |
$345,722 |
$349,922 |
$357,622 |
$363,122 |
$373,822 |
$379,322 |
$380,122 |
$387,822 |
$392,122 |
$398,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Incurred |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
|
Income Taxes |
$29,804 |
$29,805 |
$30,032 |
$30,399 |
$31,073 |
$31,555 |
$32,490 |
$32,972 |
$33,042 |
$33,716 |
$34,092 |
$34,687 |
|
Total Expenses |
$47,882 |
$47,883 |
$48,110 |
$48,477 |
$49,151 |
$49,633 |
$50,568 |
$51,050 |
$51,120 |
$51,794 |
$52,170 |
$52,765 |
|
Net Profit |
$310,818 |
$310,817 |
$313,190 |
$317,023 |
$324,049 |
$329,067 |
$338,832 |
$343,850 |
$344,580 |
$351,606 |
$355,530 |
$361,735 |
|
Net Profit / Sales |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
87% |
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Revenue |
$4,601,700 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
$3,840,000 |
|
|
|
|
|
|
|
|
Direct Costs |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
$108,336 |
|
|
|
|
|
|
|
|
Gross Margin |
$4,493,364 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
$3,731,664 |
|
Gross Margin % |
98% |
97% |
97% |
97% |
97% |
|
Operating Expenses |
|
|
|
|
|
|
Salary |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
$48,000 |
|
Employee Related Expenses |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
$9,600 |
|
Utilities |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
$19,200 |
|
Office Supplies |
|
|
|
|
|
|
Insurance |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
$1,800 |
|
Total Operating Expenses |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
$78,600 |
|
|
|
|
|
|
|
|
Operating Income |
$4,414,764 |
$3,653,064 |
$3,653,064 |
$3,653,064 |
$3,653,064 |
|
|
|
|
|
|
|
|
Interest Incurred |
|
|
|
|
|
|
Depreciation and Amortization |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
|
Income Taxes |
$383,667 |
$317,018 |
$317,018 |
$317,018 |
$317,018 |
|
Total Expenses |
$600,603 |
$533,954 |
$533,954 |
$533,954 |
$533,954 |
|
Net Profit |
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Net Profit / Sales |
87% |
86% |
86% |
86% |
86% |
Balance Sheet
Balance Sheet (With Monthly Detail)
|
As of Period's End |
Starting Balances |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Cash |
$200,000 |
$173,895 |
$487,213 |
$800,530 |
$1,116,220 |
$1,435,743 |
$1,762,292 |
$2,093,859 |
$2,435,191 |
$2,781,541 |
$3,128,621 |
$3,482,727 |
$3,840,757 |
|
Accounts Receivable |
$0 |
$358,700 |
$358,700 |
$361,300 |
$365,500 |
$373,200 |
$378,700 |
$389,400 |
$394,900 |
$395,700 |
$403,400 |
$407,700 |
$414,500 |
|
Inventory |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
Other Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
$280,000 |
$612,595 |
$925,913 |
$1,241,830 |
$1,561,720 |
$1,888,943 |
$2,220,992 |
$2,563,259 |
$2,910,091 |
$3,257,241 |
$3,612,021 |
$3,970,427 |
$4,335,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Assets |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
|
Accumulated Depreciation |
$0 |
($2,500) |
($5,000) |
($7,500) |
($10,000) |
($12,500) |
($15,000) |
($17,500) |
($20,000) |
($22,500) |
($25,000) |
($27,500) |
($30,000) |
|
Total Long-Term Assets |
$150,000 |
$147,500 |
$145,000 |
$142,500 |
$140,000 |
$137,500 |
$135,000 |
$132,500 |
$130,000 |
$127,500 |
$125,000 |
$122,500 |
$120,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$430,000 |
$760,095 |
$1,070,913 |
$1,384,330 |
$1,701,720 |
$2,026,443 |
$2,355,992 |
$2,695,759 |
$3,040,091 |
$3,384,741 |
$3,737,021 |
$4,092,927 |
$4,455,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable |
|
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
$4,473 |
|
Income Taxes Payable |
|
$29,804 |
$29,805 |
$30,032 |
$30,399 |
$31,073 |
$31,555 |
$32,490 |
$32,972 |
$33,042 |
$33,716 |
$34,092 |
$34,687 |
|
Sales Taxes Payable |
$15,000 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Short-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities |
$15,000 |
$34,277 |
$34,278 |
$34,505 |
$34,872 |
$35,546 |
$36,028 |
$36,963 |
$37,445 |
$37,515 |
$38,189 |
$38,565 |
$39,160 |
|
Long-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
$15,000 |
$34,277 |
$34,278 |
$34,505 |
$34,872 |
$35,546 |
$36,028 |
$36,963 |
$37,445 |
$37,515 |
$38,189 |
$38,565 |
$39,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained Earnings |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
$415,000 |
|
Earnings |
|
$310,818 |
$621,635 |
$934,825 |
$1,251,848 |
$1,575,897 |
$1,904,964 |
$2,243,796 |
$2,587,646 |
$2,932,226 |
$3,283,832 |
$3,639,362 |
$4,001,097 |
|
Total Owner's Equity |
$415,000 |
$725,818 |
$1,036,635 |
$1,349,825 |
$1,666,848 |
$1,990,897 |
$2,319,964 |
$2,658,796 |
$3,002,646 |
$3,347,226 |
$3,698,832 |
$4,054,362 |
$4,416,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$430,000 |
$760,095 |
$1,070,913 |
$1,384,330 |
$1,701,720 |
$2,026,443 |
$2,355,992 |
$2,695,759 |
$3,040,091 |
$3,384,741 |
$3,737,021 |
$4,092,927 |
$4,455,257 |
|
As of Period's End |
Starting Balances |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Cash |
$200,000 |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
$17,271,160 |
|
Accounts Receivable |
$0 |
$414,500 |
$320,000 |
$320,000 |
$320,000 |
$320,000 |
|
Inventory |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
Other Current Assets |
|
|
|
|
|
|
|
Total Current Assets |
$280,000 |
$4,335,257 |
$7,663,031 |
$10,999,074 |
$14,335,117 |
$17,671,160 |
|
|
|
|
|
|
|
|
|
Long-Term Assets |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
$150,000 |
|
Accumulated Depreciation |
$0 |
($30,000) |
($60,000) |
($90,000) |
($120,000) |
($150,000) |
|
Total Long-Term Assets |
$150,000 |
$120,000 |
$90,000 |
$60,000 |
$30,000 |
$0 |
|
|
|
|
|
|
|
|
|
Total Assets |
$430,000 |
$4,455,257 |
$7,753,031 |
$11,059,074 |
$14,365,117 |
$17,671,160 |
|
|
|
|
|
|
|
|
|
Accounts Payable |
|
$4,473 |
$4,470 |
$4,467 |
$4,464 |
$4,461 |
|
Income Taxes Payable |
|
$34,687 |
$26,418 |
$26,418 |
$26,418 |
$26,418 |
|
Sales Taxes Payable |
$15,000 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Short-Term Debt |
|
|
|
|
|
|
|
Prepaid Revenue |
|
|
|
|
|
|
|
Total Current Liabilities |
$15,000 |
$39,160 |
$30,888 |
$30,885 |
$30,882 |
$30,879 |
|
Long-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
$15,000 |
$39,160 |
$30,888 |
$30,885 |
$30,882 |
$30,879 |
|
|
|
|
|
|
|
|
|
Paid-in Capital |
|
|
|
|
|
|
|
Retained Earnings |
$415,000 |
$415,000 |
$4,416,097 |
$7,722,143 |
$11,028,189 |
$14,334,235 |
|
Earnings |
|
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Total Owner's Equity |
$415,000 |
$4,416,097 |
$7,722,143 |
$11,028,189 |
$14,334,235 |
$17,640,281 |
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$430,000 |
$4,455,257 |
$7,753,031 |
$11,059,074 |
$14,365,117 |
$17,671,160 |
Cash Flow Statement
Cash Flow Statement (With Monthly Detail)
|
2016 |
Jan '16 |
Feb '16 |
Mar '16 |
Apr '16 |
May '16 |
Jun '16 |
Jul '16 |
Aug '16 |
Sep '16 |
Oct '16 |
Nov '16 |
Dec '16 |
|
Net Cash Flow from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit |
$310,818 |
$310,817 |
$313,190 |
$317,023 |
$324,049 |
$329,067 |
$338,832 |
$343,850 |
$344,580 |
$351,606 |
$355,530 |
$361,735 |
|
Depreciation and Amortization |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
|
Change in Accounts Receivable |
($358,700) |
$0 |
($2,600) |
($4,200) |
($7,700) |
($5,500) |
($10,700) |
($5,500) |
($800) |
($7,700) |
($4,300) |
($6,800) |
|
Change in Inventory |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Change in Accounts Payable |
$4,473 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Change in Income Tax Payable |
$29,804 |
$1 |
$227 |
$367 |
$674 |
$482 |
$935 |
$482 |
$70 |
$674 |
$376 |
$595 |
|
Change in Sales Tax Payable |
($15,000) |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Change in Prepaid Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow from Operations |
($26,105) |
$313,318 |
$313,317 |
$315,690 |
$319,523 |
$326,549 |
$331,567 |
$341,332 |
$346,350 |
$347,080 |
$354,106 |
$358,030 |
|
Investing & Financing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Purchased or Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments Received |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Long-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Short-Term Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends & Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow from Investing & Financing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at Beginning of Period |
$200,000 |
$173,895 |
$487,213 |
$800,530 |
$1,116,220 |
$1,435,743 |
$1,762,292 |
$2,093,859 |
$2,435,191 |
$2,781,541 |
$3,128,621 |
$3,482,727 |
|
Net Change in Cash |
($26,105) |
$313,318 |
$313,317 |
$315,690 |
$319,523 |
$326,549 |
$331,567 |
$341,332 |
$346,350 |
$347,080 |
$354,106 |
$358,030 |
|
Cash at End of Period |
$173,895 |
$487,213 |
$800,530 |
$1,116,220 |
$1,435,743 |
$1,762,292 |
$2,093,859 |
$2,435,191 |
$2,781,541 |
$3,128,621 |
$3,482,727 |
$3,840,757 |
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
|
Net Cash Flow from Operations |
|
|
|
|
|
|
Net Profit |
$4,001,097 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
$3,306,046 |
|
Depreciation and Amortization |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
|
Change in Accounts Receivable |
($414,500) |
$94,500 |
$0 |
$0 |
$0 |
|
Change in Inventory |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Change in Accounts Payable |
$4,473 |
($3) |
($3) |
($3) |
($3) |
|
Change in Income Tax Payable |
$34,687 |
($8,269) |
$0 |
$0 |
$0 |
|
Change in Sales Tax Payable |
($15,000) |
$0 |
$0 |
$0 |
$0 |
|
Change in Prepaid Revenue |
|
|
|
|
|
|
Net Cash Flow from Operations |
$3,640,757 |
$3,422,274 |
$3,336,043 |
$3,336,043 |
$3,336,043 |
|
Investing & Financing |
|
|
|
|
|
|
Assets Purchased or Sold |
|
|
|
|
|
|
Investments Received |
|
|
|
|
|
|
Change in Long-Term Debt |
|
|
|
|
|
|
Change in Short-Term Debt |
|
|
|
|
|
|
Dividends & Distributions |
|
|
|
|
|
|
Net Cash Flow from Investing & Financing |
|
|
|
|
|
|
Cash at Beginning of Period |
$200,000 |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
|
Net Change in Cash |
$3,640,757 |
$3,422,274 |
$3,336,043 |
$3,336,043 |
$3,336,043 |
|
Cash at End of Period |
$3,840,757 |
$7,263,031 |
$10,599,074 |
$13,935,117 |
$17,271,160 |
|
|
|
|
|
21 |
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
