Teachers’ Employment Agency Business Plan
Teacherafterschooljobs.com is a job search website designed to provide teachers with part-time or seasonal employment, supplementing their income. The site will match educated, mature, responsible educators with employers who need their assistance. While revenue will come from employer listing fees, Teacherafterschooljobs.com will have two customers: employers and employees. In addition to a job board, the site will offer useful hyperlinks to educators, increasing traffic for employers.
The Market
Educators are dedicated professionals who work for below-market wages due to various reasons. Because of this, there is a high percentage of teachers looking for supplemental income, creating a bountiful market. Teacherafterschooljobs.com will target four distinct market segments. The first is retail, with an annual growth rate of 50% and 50 potential customers. Government is the next group, with a 50% growth rate and 40 possible customers. Private daycare and camps are also targets, with a 25% growth rate and 20 potential customers. Lastly, education is a target with a 10% growth rate and 20 customers.
Competitive Edge
Teacherafterschooljobs.com has a unique pool of prospective employees: professional educators with skill sets centered on education, professionalism, passion, and dedication. This distinguishes the site from other job boards like Monster and Hotjobs, which have diverse cross sections of job seekers. Having a strong pool of prospective employees makes it easier to attract employers who want to post their jobs.
Management
Teacherafterschooljobs.com will be developed and run by Patrice and Rosario Cibella, both of whom have over a decade of experience in the education industry. Patrice worked as an eleventh-grade teacher for twelve years, with the last four years as the social studies department head. As department chairperson, she strengthened her managerial and strategic skills, making the department one of the finest in the state. Rosario also has an education background and served as the vice principal of his school for six years. This experience will be applied to lead Teacherafterschooljobs.com to become the premier specialized online job board.
Teacherafterschooljobs.com combines a solid business model, a large market potential, and a strong management team, making it poised for success. The venture will be profitable from month one, with modest gross margins for year one, increasing slightly by year three. Teacherafterschooljobs.com is forecasted to achieve a minimal gross profit by the end of year three.
1.1 Objectives
The company’s main objectives are:
1. Attract a minimum of 100 employers subscribing for a year of job listings.
2. Attract related links to provide educators with additional reasons to access the site.
3. Use increased traffic to attract additional employers to finance expansion of the Web page offerings.
1.2 Mission
Teacherafterschooljobs.com aims to provide a concise and reliable site for employers and teachers to fulfill mutual needs. Employers seek reliable employees for part-time and seasonal positions, while teachers, being underpaid professionals, require supplemental income to continue their chosen profession. The company provides a much needed resource to maintain quality educators and increase the profitability of retailers and service providers by reducing turnover rates.
Teacherafterschooljobs.com is a new venture that matches teachers seeking part-time and seasonal employment with a variety of employers seeking educated, responsible, and reliable employees. It focuses on providing a pool of employees to a pool of employers in a specific niche market. As the number of employers grows, the website can expand nationally and provide additional links to educational tools for teachers, increasing traffic and the website’s appeal.
2.1 Company Ownership
Teacherafterschooljobs.com will be incorporated and owned by Patrice and Rosario Cibella. They will be the principle owners and operators. The company has not yet been incorporated.
2.2 Start-up Summary
The start-up costs primarily include web page design, programming, and hosting charges. They will be funded through direct owner investment. Details and assumptions are shown in the following chart and tables.
Start-up
Requirements
Start-up Expenses
– Legal: $1,000
– Stationery etc.: $50
– Brochures: $1,000
– Consultants: $2,700
– Insurance: $500
– Research and Development: $1,000
– Domain Name Registration: $70
– Web Hosting: $360
– Other: $0
– Total Start-up Expenses: $6,680
Start-up Assets
– Cash Required: $0
– Other Current Assets: $0
– Long-term Assets: $0
– Total Assets: $0
Total Requirements: $6,680
Start-up Funding
Start-up Expenses to Fund: $6,680
Start-up Assets to Fund: $0
Total Funding Required: $6,680
Assets
Non-cash Assets from Start-up: $0
Cash Requirements from Start-up: $0
Additional Cash Raised: $0
Cash Balance on Starting Date: $0
Total Assets: $0
Liabilities and Capital
Liabilities
Current Borrowing: $0
Long-term Liabilities: $0
Accounts Payable (Outstanding Bills): $0
Other Current Liabilities (interest-free): $0
Total Liabilities: $0
Capital
Planned Investment
– Investor 1: $6,680
– Investor 2: $0
– Other: $0
– Additional Investment Requirement: $0
– Total Planned Investment: $6,680
Loss at Start-up (Start-up Expenses): ($6,680)
Total Capital: $0
Total Capital and Liabilities: $0
Total Funding: $6,680
Services
Teacherafterschooljobs.com provides a unique site to match the part-time and seasonal job needs of teachers with employers searching for professional, reliable, and educated employees, reducing turnover and associated costs.
Market Analysis Summary
Teacherafterschooljobs.com will focus on educational institutions to provide a pool of potential employees. Schools and institutions training teachers will be prime marketing targets. Educational institutions face the challenge of maintaining a quality faculty within limited salary constraints, making it advantageous for them to provide a quality opportunity for teachers to supplement their income.
Our focus group for the company’s income will be employers seeking part-time and seasonal employees. In our current economy, almost all employers have the need for these positions. Continually hiring employees for each need is costly. Our company will provide a unique pool of educated, stable, and professional employees. Retail establishments, food service, summer camps, park districts, and day care centers are some employers requiring employees with the professional background, demeanor, and work schedule of teachers. The joining of these two groups offers significant benefits and savings.
Market Segmentation 4.1
Our target market includes:
1. Schools at all levels for employee pool.
2. College Education majors for additional employees with the same profile.
3. Retail establishments like department and grocery stores.
4. Park districts providing summer programs for the same children taught by prospective employees.
5. Summer camps providing programs similar to park districts.
Market Analysis
| Market Analysis | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Growth | CAGR | |||||
| 50% | 50 | 75 | 113 | 170 | 255 | 50.28% |
| 50% | 40 | 60 | 90 | 135 | 203 | 50.09% |
| 25% | 20 | 25 | 31 | 39 | 49 | 25.11% |
| 10% | 20 | 22 | 24 | 26 | 29 | 9.73% |
| 42.50% | 130 | 182 | 258 | 370 | 536 | 42.50% |
Contents
4.2 Target Market Segment Strategy
Focusing on these groups aligns the pieces of the puzzle. Many job search sites are too extensive for our focus group. Our specific marketing targets align with our company’s profile and purpose. We will use a concise brochure to deliver our marketing message personally, emphasizing the professional and personal nature of our company.
4.3 Service Business Analysis
We must focus on the unique and specialized groups we want to join due to the large number of job search companies. Fortunately, the purpose and focus of our company align with the service we aim to provide.
4.3.1 Competition and Buying Patterns
The most important factor for employers will be reducing advertising costs by decreasing turnover and increasing workforce reliability and professionalism. By providing the desired pool of employees, our services will be relatively inexpensive for employers.
Passing the cost to employers allows us to offer a cost-free service to employees, increasing traffic on the site.
Strategy and Implementation Summary
Teacherafterschooljobs.com will initially target the local market, which includes many national retailers, allowing for a smooth transition to a national market. Concentrating on school districts also enables quick national expansion.
5.1 Competitive Edge
Our unique pool of employees gives us an advantage over larger job search firms focused on different careers. Our links to teachers also allow us to market related links for increased traffic. Emphasizing the professionalism, education, and dedication of teachers distinguishes our pool of employees and increases the appeal for employers.
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5.2 Milestones
The table below lists our important milestones and budget allocation. Careful planning and follow-up are essential to our success. Monthly follow-ups will be crucial for the implementation of our business.
Milestones:
Milestone Start Date End Date Budget Manager Department
Domain Name 2/13/2001 2/13/2001 $70 RC Owner
Web Hosting Research 3/1/2001 3/10/2001 $0 RC Owner
Incorportation 5/1/2001 5/1/2001 $125 RC Owner
Web Page Design 3/1/2001 4/30/2001 $1,400 ZC Webmaster
ND Business Plan Competiton 2/1/2001 3/19/2001 $50 RC,PC,ZC Owner
Other 1/1/2003 1/15/2003 $0 ABC Department
Totals $1,645
Sales Strategy:
Our sales will depend on repeat business derived from providing quality permanent, part-time, and seasonal employees. Sales will focus on annual contracts paid in advance. Plans will be offered based on a monthly charge for job listings: $20/mo for up to 10 job listings, $35/mo for 11-20 listings, $50/mo for 21-50 listings, and $75/mo for unlimited listings. All sales attempts should be made in person with the employer, and closed and paid on an annual basis. Quarterly follow-up should be done to assess the success of the listings and contacts.
The following chart and table show our projected sales. We aim to obtain a minimum of 60 employers at the $20/month level, 60 employers at the $35/month level, 36 employers at the $50/month level, and 36 employers at the $75/month level in the first year. We expect the number of employers to increase by 15-20% annually, with the higher-priced subscribers attracting national employers by the end of year two. By purchasing our own server for captive hosting of our website, costs will be reduced by the end of year two.
Sales Forecast
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Unit Sales | |||
| Up to 10 Job Listings | 60 | 90 | 120 |
| 10-20 Job Listings | 60 | 90 | 120 |
| 21-50 Job Listings | 36 | 54 | 71 |
| 51-unlimited Job Listings | 36 | 54 | 71 |
| Total Unit Sales | 192 | 288 | 382 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Up to 10 Job Listings | $20.00 | $30.00 | $40.00 |
| 10-20 Job Listings | $35.00 | $45.00 | $55.00 |
| 21-50 Job Listings | $50.00 | $60.00 | $70.00 |
| 51-unlimited Job Listings | $75.00 | $85.00 | $95.00 |
| Sales | |||
| Up to 10 Job Listings | $1,200 | $2,700 | $4,800 |
| 10-20 Job Listings | $2,100 | $4,050 | $6,600 |
| 21-50 Job Listings | $1,800 | $3,240 | $4,970 |
| 51-unlimited Job Listings | $2,700 | $4,590 | $6,745 |
| Total Sales | $7,800 | $14,580 | $23,115 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Up to 10 Job Listings | $6.00 | $9.00 | $12.00 |
| 10-20 Job Listings | $10.50 | $13.50 | $16.50 |
| 21-50 Job Listings | $20.00 | $18.00 | $28.00 |
| 51-unlimited Job Listings | $30.00 | $34.00 | $38.00 |
| Direct Cost of Sales | |||
| Up to 10 Job Listings | $360 | $810 | $1,440 |
| 10-20 Job Listings | $630 | $1,215 | $1,980 |
| 21-50 Job Listings | $720 | $972 | $1,988 |
| 51-unlimited Job Listings | $1,080 | $1,836 | $2,698 |
| Subtotal Direct Cost of Sales | $2,790 | $4,833 | $8,106 |
Management Summary
The initial owners will be the operators and managers. We will receive technical and webmaster assistance from our son Zachary, as well as support and input from our family members. The company hired for web hosting duties will also provide technical support. Additional sales and marketing personnel will be added as the business expands.
Personnel Plan
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Payroll | $2,400 | $3,000 | $4,000 |
| Other | $0 | $0 | $0 |
| Total People | 1 | 1 | 1 |
| Total Payroll | $2,400 | $3,000 | $4,000 |
We will finance growth through the cash flow produced in the business. This strategy may result in slow growth, but establishing a stable and extensive network will take time and is crucial for the success of the company.
Our sales, based on yearly contracts with payment in advance, will be key to our cash flow and growth. We understand that we may have to be flexible in accepting less than one year of payment, but if we can get a minimum of three-month commitments from each employer, we will meet our cash flow needs.
Important Assumptions
The financial plan relies on important assumptions, most of which are shown in the following table as annual assumptions. We recognize that the collection of accounts receivable is critical, but it is an area where we have little control.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 25.42% | 25.00% | 25.42% |
| Other | 0 | 0 | 0 |
The following chart and table summarize our break-even point. Since the cost per unit is a commission paid to the salespersons who are also the owners, we are operating at the minimum, with the compensation of the owners being the bulk of our costs. We are using 25% of revenue, which is high based on the above information.
Break-even Analysis:
Monthly Units Break-even: 8
Monthly Revenue Break-even: $311
Assumptions:
Average Per-Unit Revenue: $40.63
Average Per-Unit Variable Cost: $14.53
Estimated Monthly Fixed Cost: $200
Projected Profit and Loss:
Our profit and loss is shown in the following table. Our sales figures are conservative due to our start-up nature and specific target audience. We project a small profit in the first year while nearly doubling profit in each subsequent year. These figures do not consider the potential profit from Web advertising revenue and partnerships with educational tool and resource suppliers. We anticipate significant traffic to begin generating profit from these sources by midway through year two, continuing throughout year three.
Pro Forma Profit and Loss
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $7,800 | $14,580 | $23,115 |
| Direct Cost of Sales | $2,790 | $4,833 | $8,106 |
| Other | $0 | $0 | $0 |
| Total Cost of Sales | $2,790 | $4,833 | $8,106 |
| Gross Margin | $5,010 | $9,747 | $15,009 |
| Gross Margin % | 64.23% | 66.85% | 64.93% |
| Expenses | |||
| Payroll | $2,400 | $3,000 | $4,000 |
| Sales and Marketing and Other Expenses | $0 | $0 | $0 |
| Depreciation | $0 | $0 | $0 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $0 | $0 | $0 |
| Insurance | $0 | $0 | $0 |
| Rent | $0 | $0 | $0 |
| Payroll Taxes | $0 | $0 | $0 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $2,400 | $3,000 | $4,000 |
| Profit Before Interest and Taxes | $2,610 | $6,747 | $11,009 |
| EBITDA | $2,610 | $6,747 | $11,009 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $663 | $1,687 | $2,798 |
| Net Profit | $1,947 | $5,060 | $8,211 |
| Net Profit/Sales | 24.96% | 34.71% | 35.52% |
7.4 Projected Cash Flow
Due to our fixed Web hosting costs and the owners being the only employees, our cash flow in the following table remains positive throughout the year. The improvement in the cash flow as the subsequent years progress will allow for the continual updating and maintenance of the site to keep it fresh and viable. The low fixed cost of adding pages (flat fee of approximately $130/page) should be covered by our positive cash flow, thus allowing continuing expansion as necessary.
Pro Forma Cash Flow:
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $7,800 | $14,580 | $23,115 |
| Subtotal Cash from Operations | $7,800 | $14,580 | $23,115 |
| 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 | $7,800 | $14,580 | $23,115 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $2,400 | $3,000 | $4,000 |
| Bill Payments | $3,176 | $6,261 | $10,544 |
| Subtotal Spent on Operations | $5,576 | $9,261 | $14,544 |
| 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 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $5,576 | $9,261 | $14,544 |
| Net Cash Flow | $2,224 | $5,319 | $8,571 |
| Cash Balance | $2,224 | $7,543 | $16,114 |
7.5 Projected Balance Sheet
The balance sheet in the following table shows a small but continued growth of net worth in just three years, presenting a healthy financial picture. This growth in net worth will also be supplemented significantly with the possibility of Web page advertising and related links income that is not yet projected or contained in the figures.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Cash | $2,224 | $7,543 | $16,114 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $2,224 | $7,543 | $16,114 |
| Long-term Assets | |||
| Long-term Assets | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 |
| Total Assets | $2,224 | $7,543 | $16,114 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $277 | $536 | $896 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $277 | $536 | $896 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $277 | $536 | $896 |
| Paid-in Capital | $6,680 | $6,680 | $6,680 |
| Retained Earnings | ($6,680) | ($4,733) | $327 |
| Earnings | $1,947 | $5,060 | $8,211 |
| Total Capital | $1,947 | $7,007 | $15,218 |
| Total Liabilities and Capital | $2,224 | $7,543 | $16,114 |
| Net Worth | $1,947 | $7,007 | $15,218 |
7.6 Business Ratios
The following table contains important business ratios from the education services industry, as determined by the Standard Industry Classification (SIC) Index, 8299.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 86.92% | 58.54% | 9.00% |
| Percent of Total Assets | ||||
| Other Current Assets | 0.00% | 0.00% | 0.00% | 43.90% |
| Total Current Assets | 100.00% | 100.00% | 100.00% | 73.60% |
| Long-term Assets | 0.00% | 0.00% | 0.00% | 26.40% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 12.47% | 7.10% | 5.56% | 43.90% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 21.40% |
| Total Liabilities | 12.47% | 7.10% | 5.56% | 65.30% |
| Net Worth | 87.53% | 92.90% | 94.44% | 34.70% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 64.23% | 66.85% | 64.93% | 0.00% |
| Selling, General & Administrative Expenses | 39.13% | 32.15% | 29.21% | 82.20% |
| Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.10% |
| Profit Before Interest and Taxes | 33.46% | 46.28% | 47.63% | 2.40% |
| Main Ratios | ||||
| Current | 8.02 | 14.08 | 17.98 | 1.51 |
| Quick | 8.02 | 14.08 | 17.98 | 1.20 |
| Total Debt to Total Assets | 12.47% | 7.10% | 5.56% | 65.30% |
| Pre-tax Return on Net Worth | 134.08% | 96.29% | 72.34% | 4.40% |
| Pre-tax Return on Assets | 117.36% | 89.45% | 68.32% | 12.70% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 24.96% | 34.71% | 35.52% | n/a |
| Return on Equity | 100.00% | 72.22% | 53.96% | n/a |
| Activity Ratios | ||||
| Accounts Payable Turnover | 12.45 | 12.17 | 12.17 | n/a |
| Payment Days | 27 | 23 | 24 | n/a |
| Total Asset Turnover | 3.51 | 1.93 | 1.43 | n/a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.14 | 0.08 | 0.06 | n/a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n/a |
| Liquidity Ratios | ||||
| Net Working Capital | $1,947 | $7,007 | $15,218 | n/a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n/a |
| Additional Ratios | Year 1
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 | ||
| Unit Sales | |||||||||||||
| Up to 10 Job Listings | 0% | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| 10-20 Job Listings | 0% | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| 21-50 Job Listings | 0% | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
| 51-unlimited Job Listings | 0% | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
| Total Unit Sales | |||||||||||||
| 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 | |
| Up to 10 Job Listings | |||||||||||||
| 10-20 Job Listings | |||||||||||||
| 21-50 Job Listings | |||||||||||||
| 51-unlimited Job Listings | |||||||||||||
| Total Sales | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 |
Personnel Plan:
| 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 | ||
| Payroll | 0% | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 |
| Total Payroll | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 |
General Assumptions:
| 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% | 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% | 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% | 25.00% |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss:
Sales:
– Month 1 to Month 12: $650
Direct Cost of Sales:
– Month 1 to Month 12: $233
Other:
– Month 1 to Month 12: $0
Total Cost of Sales:
– Month 1 to Month 12: $233
Gross Margin:
– Month 1 to Month 12: $418
Gross Margin %:
– Month 1 to Month 12: 64.23%
Expenses:
Payroll:
– Month 1 to Month 12: $200
Sales and Marketing and Other Expenses:
– Month 1 to Month 12: $0
Depreciation:
– Month 1 to Month 12: $0
Leased Equipment:
– Month 1 to Month 12: $0
Utilities:
– Month 1 to Month 12: $0
Insurance:
– Month 1 to Month 12: $0
Rent:
– Month 1 to Month 12: $0
Payroll Taxes:
– Month 1 to Month 12: 15%
Other:
– Month 1 to Month 12: $0
Total Operating Expenses:
– Month 1 to Month 12: $200
Profit Before Interest and Taxes:
– Month 1 to Month 12: $218
EBITDA:
– Month 1 to Month 12: $218
Interest Expense:
– Month 1 to Month 12: $0
Taxes Incurred:
– Month 1 to Month 12: $65, $54
Net Profit:
– Month 1 to Month 12: $152, $163
Net Profit/Sales:
– Month 1 to Month 12: 23.42%, 25.10%
Pro Forma Cash Flow:
Cash Received:
Cash from Operations:
– Month 1 to Month 12: $650
Additional Cash Received:
– Month 1 to Month 12: $0
Sales Tax, VAT, HST/GST Received:
– Month 1 to Month 12: 0.00%
New Current Borrowing:
– Month 1 to Month 12: $0
New Other Liabilities (interest-free):
– Month 1 to Month 12: $0
New Long-term Liabilities:
– Month 1 to Month 12: $0
Sales of Other Current Assets:
– Month 1 to Month 12: $0
Sales of Long-term Assets:
– Month 1 to Month 12: $0
New Investment Received:
– Month 1 to Month 12: $0
Subtotal Cash Received:
– Month 1 to Month 12: $650
Expenditures:
Expenditures from Operations:
– Month 1 to Month 12: $200
Cash Spending:
– Month 1 to Month 12: $200
Bill Payments:
– Month 1 to Month 12: $10, $297, $287
Subtotal Spent on Operations:
– Month 1 to Month 12: $210, $497, $487
Additional Cash Spent:
– Month 1 to Month 12: $0
Sales Tax, VAT, HST/GST Paid Out:
– Month 1 to Month 12: $0
Principal Repayment of Current Borrowing:
– Month 1 to Month 12: $0
Other Liabilities Principal Repayment:
– Month 1 to Month 12: $0
Long-term Liabilities Principal Repayment:
– Month 1 to Month 12: $0
Purchase Other Current Assets:
– Month 1 to Month 12: $0
Purchase Long-term Assets:
– Month 1 to Month 12: $0
Dividends:
– Month 1 to Month 12: $0
Subtotal Cash Spent:
– Month 1 to Month 12: $210, $497, $487
Net Cash Flow:
– Month 1 to Month 12: $440, $153, $163
Cash Balance:
– Month 1 to Month 12: $440, $593, $756, $919, $1,082, $1,245, $1,408, $1,571, $1,735, $1,898, $2,061, $2,224
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 | ||||||||||||
| Cash | $0 | $440 | $593 | $756 | $919 | $1,082 | $1,245 | $1,408 | $1,571 | $1,735 | $1,898 | $2,061 | $2,224 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $0 | $440 | $593 | $756 | $919 | $1,082 | $1,245 | $1,408 | $1,571 | $1,735 | $1,898 | $2,061 | $2,224 |
| Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Assets | $0 | $440 | $593 | $756 | $919 | $1,082 | $1,245 | $1,408 | $1,571 | $1,735 | $1,898 | $2,061 | $2,224 |
| Liabilities and Capital | |||||||||||||
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $288 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 |
| 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 | $0 | $288 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $288 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 | $277 |
| Paid-in Capital | $6,680 | ||||||||||||
| Retained Earnings | ($6,680) | $152 | $315 | $479 | $642 | $805 | $968 | $1,131 | $1,294 | $1,457 | $1,620 | $1,784 | $1,947 |
| Earnings | $0 | ||||||||||||
| Total Capital | $0 | $152 | $315 | $479 | $642 | $805 | $968 | $1,131 | $1,294 | $1,457 | $1,620 | $1,784 | $1,947 |
| Total Liabilities and Capital | $0 | $440 | $593 | $756 | $919 | $1,082 | $1,245 | $1,408 | $1,571 | $1,735 | $1,898 | $2,061 | $2,224 |
| Net Worth | $0 | $152 | $315 | $479 | $642 | $805 | $968 | $1,131 | $1,294 | $1,457 | $1,620 | $1,784 | $1,947 |
Business Plan Outline
- Executive Summary
- Company Summary
- Services
- Market Analysis Summary
- Strategy and Implementation Summary
- Management Summary
- Financial Plan
- Appendix
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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