Wrestling Entertainment Business Plan
Professional wrestling is currently at the peak of its popularity. For the past year, professional wrestling has dominated the Top 10 cable television shows, with 7 out of 10 spots occupied by wrestling. Even NBA superstar Shaquille O’Neal revealed that his favorite TV show is professional wrestling during an interview on the Tonight Show hosted by Jay Leno.
A national survey conducted by the NBC Television Network last February listed the "top viewer sports" in America, with professional wrestling securing the second spot, just behind the National Football League. Major League Baseball and the National Basketball Association followed as the third and fourth most-watched sports, respectively.
Professional wrestling appeals to a wide range of demographics, from 3-year-olds to 93-year-olds. It attracts 40% female viewers and has a strong following in the 21 to 49-year-old male market. A staggering 35 million people watch professional wrestling on TV every week, and millions more attend live events.
The two major contenders in the pro wrestling industry are the World Wrestling Federation (WWF), led by President Vince McMahon Jr., and the Ted Turner-owned World Championship Wrestling (WCW).
TV Guide predicts that WWF will generate $550 million in revenue this year, while WCW is expected to make $350 million. Vince McMahon took WWF public earlier this year and raised an additional $250 million. He has even ventured into forming his own professional football league, The Extreme Football League, to compete with the National Football League.
However, a significant gap exists between the top two wrestling organizations and the rest. The closest competitor, Extreme Championship Wrestling (ECW), based in New York/Philadelphia, fails to appeal to a broad audience due to its excessive violence and hardcore nature. ECW’s ratings for their weekly Friday television program on The Nashville Network (TNN) consistently fall below 1.0, while TNN guarantees advertisers a 2.5 rating. On the other hand, IWA Championship Wrestling (IWA) aims to create a family-friendly television product and live events to maximize its appeal to viewers, sponsors, advertisers, and live event attendees.
The goal of IWA is to become the third largest wrestling organization in the industry within three years. Additionally, they aim to generate at least 10% of the revenue earned by the second largest organization (WCW), amounting to approximately $35 million per year. To achieve this, projected costs are expected to be lower than a quarter of the revenue, ensuring a profitable scenario for everyone involved.
IWA Championship Wrestling’s objectives for the first three years of expansion and growth are as follows:
1. Become the third most popular professional wrestling organization.
2. Secure a national cable television contract for a weekly one-hour program.
3. Begin production of the weekly pro wrestling program.
4. Recruit top established talent and develop new talent, writers, and managers.
5. Syndicate and distribute television programming worldwide.
6. Promote live event tours in areas where television programming is seen.
IWA Championship Wrestling’s mission is to establish a family-oriented television program for domestic and international distribution and sale. This will be supported by live event tours. Additional revenues will be generated through quarterly pay-per-view events, sponsorships and advertising revenues, merchandising, the creation of an IWA Professional Wrestling School, and personal appearances fees for IWA talent.
Within 3 years, IWA aims to become recognized and established as the #3 professional wrestling organization and a major player in the industry. Their programming will consistently receive TV ratings in the 2.0 to 2.5 range, and they will have used established stars to attract viewers while developing new talent.
Within five years, IWA aims to challenge the second most popular position in the industry currently held by WCW and generate approximately $35 million per year in revenue.
IWA’s appeal is based on providing "family oriented" and "family friendly" professional sports entertainment programming and live events. They are committed to "family" values and aim to fill the void currently existing in professional wrestling.
Currently, the only pro wrestling programming available is WWF and WCW, which are similar in format and design, emphasizing extreme violence, vulgarity, disrespect, nudity, and alcohol use. The alternative, Extreme Championship Wrestling (ECW), only appeals to the hardcore, extreme fans.
IWA encourages fans to have their children follow their programming and aims to create strong, positive, and family-oriented role models. They want to put the emphasis on talent, skill, and ability rather than demented storylines.
By appealing to the majority of wrestling fans, IWA aims to have a unique and strong position in the industry that will maximize profit potential.
The purpose of this business plan is to present IWA to prospective investors and raise $500,000 of equity capital needed to secure a position in the top three most popular wrestling shows within the industry. This will be achieved through a weekly, family-oriented television program and a series of family-oriented live events.
IWA is owned by 3 principals and the principal contact is Rob Russen, from Sarasota, FL. Russen has extensive experience in professional wrestling, having been a local promoter and forming successful wrestling organizations.
The start-up summary includes projected costs and revenues for producing a monthly tape-delayed television production, which will yield the weekly television programming. Revenue sources include sponsorship participation, television advertising, gate attendance and/or site fees for live events, merchandise sales, and food and beverage sales at events. Cost assumptions include the purchase of television time, event production costs, television production costs, and advertising expenses.
Start-up Funding
Start-up Expenses to Fund
$82,450
Start-up Assets to Fund
$450,000
Total Funding Required
$532,450
Assets
Non-cash Assets from Start-up
$0
Cash Requirements from Start-up
$450,000
Additional Cash Raised
$0
Cash Balance on Starting Date
$450,000
Total Assets
$450,000
Liabilities and Capital
Liabilities
Current Borrowing
$72,000
Long-term Liabilities
$302,945
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free)
$0
Total Liabilities
$374,945
Capital
Planned Investment
Investor 1
$52,000
Investor 2
$50,000
Investor 3
$25,505
Investor 4
$30,000
Other
$0
Additional Investment Requirement
$0
Total Planned Investment
$157,505
Loss at Start-up (Start-up Expenses)
($82,450)
Total Capital
$75,055
Total Capital and Liabilities
$450,000
Total Funding
$532,450
Start-up
Requirements
Start-up Expenses
Legal
$5,000
Stationery etc.
$1,500
Staffing
$6,500
Insurance
$500
Rent
$6,000
Editing Suite
$12,950
Expensed equipment
$50,000
Other
$0
Total Start-up Expenses
$82,450
Start-up Assets
Cash Required
$450,000
Start-up Inventory
$0
Other Current Assets
$0
Long-term Assets
$0
Total Assets
$450,000
Total Requirements
$532,450
Products and Services
IWA Championship Wrestling shall produce and develop a weekly syndicated professional wrestling television programming geared to the viewing masses in a “family oriented/family friendly” format to achieve mass viewership, mass potential, and mass profitability.
While the top two wrestling organizations currently have a stronghold on the business, they are, for all intents and purposes, mirror images of each other creating the same type of product that is limited in its nature and appeal. IWA programming will always be family oriented and, thus, have great mass appeal, projecting the IWA into the #3 position within the industry within 3 years.
In addition to using established, well known pro wrestling stars including former WWF and WCE stars and outstanding ladies wrestling stars, the IWA will develop its own stars of the future as we have in the past when discovering and working with current WWF and WCE stars.
Former WWF Stars: Tatanka, Sweet Stan Lane, Hillbilly Cousin Ike, Sgt. Slaughter, The Bushwhackers, Demolition Axe, Doink the Clown, The Wild Samoans, The Rock and Roll Express, Salvatore Sincere, Jerry “The King” Lawler.
Former WCW Stars: The Midnight Express, The Masked Superstar, Ronnie Garvin, Michael “P.S.” Hayes, One Man Gang, Tracy Smothers, Ivan Koloff, Big Al Greene.
Ladies Wrestling Stars: Malia Hosaka, Candi Devine, Bambi, Peggy Lee Leather, Missy Hyatt.
Curent WWF Stars: Cactus Jack/Mankind, Meridian, Dean Malenko, X-pad.
Current WCW Stars: Diamond Dallas Page, Madusa Micelli, Shane Douglas, Billy Kidman, Bam Bam Bigelow.
3.1 Merchandising
The IWA will create a line of souvenir and concession items, which will include photos, posters, t-shirts, hats, banners, bumper stickers, action figures, and home videos.
3.2 Tours
The IWA, using a network of international agents and promoters, will tour on a "sold" events basis guaranteeing a profit plus a percentage of all gate revenues both domestically and internationally. Among areas already expressing interest in promoting IWA tours are Australia, New Zealand, Russia, Great Britain, the Philippines, and Israel.
Market Analysis Summary
IWA will direct its efforts to the production of family-oriented television programming and live events, procuring sponsorships, television advertising, and merchandising deals all designed to firmly carve our niche as the #3 professional wrestling organization in the industry, both domestically and worldwide.
Geographically, the company will initially direct its efforts in two key areas: domestic syndication of its weekly television programming and live event tours both throughout the continental United States and internationally, via syndication of its weekly television programming and sold live event tours working with established agents and promoters worldwide.
IWA management believes its decisions to use established name talent in a family-oriented format will ensure maximum mass appeal, maximum ratings, and maximum profits, all designed to firmly entrench the IWA into a solid #3 position within the industry, while also carving out a financial piece of the lucrative pro wrestling revenue pie projected to be a minimum of 10% of revenues projected by the current #2 organization (WCW), or approximately $35 million within the first 3 years.
Because of our extensive experience on the highest levels of the pro wrestling industry, we have the ability to produce quality television programming at rates well below that of our competitors, attract the top available “name” stars to work with us, and attract the best, new young talent in the industry to develop future stars.
Professional wrestling is the hottest sports entertainment available on television and at live events throughout the country. TV Guide estimates that 35 million people watch professional wrestling from the WWF, WCW, and ECW on television each and every week, and millions more flock to the arenas to see the live events with ticket prices of up to $35 each.
Pro wrestling has always used television as its base of exposure and popularity. During the entire decade of the ’90s there were only a handful of professional wrestling organizations to secure nationally syndicate television contracts. The IWA did it TWICE!
With the proper financial backing to sustain the production and distribution of IWA television programming, it is a well-founded conclusion, based on our track record and experience, that the #3 position within the industry is a realistic and achievable goal for IWA.
4.1 Market Segmentation
Professional wrestling is true family entertainment. The following chart and table contain interesting facts about pro wrestling fans, based on Scarborough Research:
Market Analysis
Potential Customers:
– White Collar Family Oriented Viewers: 6,880,000 (Year 1), 8,256,000 (Year 2), 9,907,200 (Year 3), 11,888,640 (Year 4), 14,266,368 (Year 5)
– White Collar Non Family Oriented Viewers: 9,820,000 (Year 1), 12,275,000 (Year 2), 15,343,750 (Year 3), 19,179,688 (Year 4), 23,974,610 (Year 5)
– Blue Collar Family Oriented Viewers: 5,460,000 (Year 1), 6,715,800 (Year 2), 8,260,434 (Year 3), 10,160,334 (Year 4), 12,497,211 (Year 5)
– Blue Collar Non Family Oriented Viewers: 13,000,000 (Year 1), 16,900,000 (Year 2), 21,970,000 (Year 3), 28,561,000 (Year 4), 37,129,300 (Year 5)
Total: 35,160,000 (Year 1), 44,146,800 (Year 2), 55,481,384 (Year 3), 69,789,662 (Year 4), 87,867,489 (Year 5)
4.2 Target Market Segment Strategy
The IWA plans to approach the marketplace through family-oriented programming and live events. The target is nationwide and international distribution of our weekly, one-hour television program.
Concerned parents will embrace the IWA as the true alternative in professional sports entertainment. They will not be worried when their children watch our programming or buy our merchandise. In fact, parents will gladly buy tickets for the entire family to attend our live events.
The increase in the popularity of professional wrestling continues despite other organizations’ lack of family values. Thus, the IWA can achieve greater success by appealing directly to family values, family-oriented programming, live events, and a majority of the population.
If we succeed in our target market strategy, our product and services will be widely accepted and received over time. We anticipate becoming the #3 professional wrestling organization in the industry within 3 years.
4.3 Service Business Analysis
The popularity of professional wrestling is at an all-time high. The top two organizations dominate cable TV ratings and earn almost $1 billion annually. 35 million people watch it on TV every week, and millions attend live events.
Demand for American style professional wrestling has spread worldwide. The IWA has received inquiries for tours and TV proposals from various countries.
Rob Russen, the founder of the IWA, has the experience, expertise, and contacts to make our goals and ambitions a reality.
4.3.1 Competition and Buying Patterns
Competition in professional wrestling is established, identified, and limited. The World Wrestling Federation (WWF) is the top organization, while World Championship Wrestling (WCW) is a distant second. Extreme Championship Wrestling (ECW) has limited appeal due to its nature.
Strategy and Implementation Summary
The IWA plans to create family-oriented television programming and live events. We will negotiate an annual TV contract and schedule our monthly television productions. We will also seek an advertising agency to sell sponsorship packages and advertising inventory within the program.
We anticipate having our programming on-air within 3 months of start-up.
5.1 Competitive Edge
The IWA will be the only company marketing our specific programming and products to the masses. We will provide family-oriented/family-friendly programming to appeal to the masses, distinguishing us from our competitors.
We will keep our pricing family-friendly and below that of our competitors. Our ticket prices will be 60% less than competitors, and our pay-per-view events will cost 35% less during the first 3 years.
5.2 Sales Strategy
Our sales strategy is to keep ticket and pay-per-view pricing family-oriented. We propose ticket prices of $15 for ringside seats and $10 to $12 for reserved and general admission seating. Children under 12 will receive substantial discounts.
By comparison, ringside seats and pay-per-view programming from our competitors are more expensive.
5.2.1 Sales Forecast
Our sales forecast includes projected annual total revenues.
Sales Forecast
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Sponsorship Participation | $1,000,000 | $2,600,000 | $6,370,000 |
| TV Advertising | $428,000 | $1,112,800 | $2,726,360 |
| Pay-Per-View | $3,840,000 | $9,984,000 | $24,460,800 |
| Gate Attendance/Site Sales | $180,000 | $468,000 | $1,146,600 |
| Merchandise Sold at Events | $18,000 | $46,800 | $114,660 |
| Other Merchandise | $36,000 | $93,600 | $229,320 |
| Food and Beverage Sold at Events | $36,000 | $93,600 | $229,320 |
| Total Sales | $5,538,000 | $14,398,800 | $35,277,060 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Sponsorship Participation | $380,780 | $1,142,340 | $3,427,019 |
| TV Advertising | $90,000 | $270,000 | $810,000 |
| Pay-Per-View | $720,000 | $2,160,000 | $6,480,000 |
| Gate Attendance/Site Sales | $54,120 | $162,360 | $487,080 |
| Merchandise Sold at Events | $4,100 | $12,300 | $36,900 |
| Other Merchandise | $12,000 | $36,000 | $108,000 |
| Food and Beverage Sold at Events | $18,000 | $54,000 | $162,000 |
| Subtotal Direct Cost of Sales | $1,279,000 | $3,837,000 | $11,511,000 |
Management Summary
Unlike our competitors, the IWA does not intend, during the first 3 years of this plan, to offer guaranteed contracts to individual talent. Instead, all talent, including wrestlers, production people, referees, announcers, etc., will be booked as independent contractors for our monthly events, keeping our costs down and profits high.
Only an office manager, secretary, and production technician will be full-time employees during this time frame.
Personnel Plan
The following table contains IWA’s projected personnel calculations.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Partners | $159,996 | $319,992 | $735,982 |
| Marketing | $72,000 | $144,000 | $331,200 |
| Performers | $600,000 | $1,200,000 | $2,760,000 |
| Production | $1,200,000 | $2,400,000 | $5,520,000 |
| Admin | $100,000 | $200,000 | $460,000 |
| Total People | 75 | 150 | 400 |
| Total Payroll | $2,131,996 | $4,263,992 | $9,807,181 |
Based on detailed financial projections from our Balance Sheet, if the company receives the sought-after approximately $500,000 in funding, it will operate profitably.
The following table and chart show our projected Break-even Analysis.
Break-even Analysis
Monthly Revenue Break-even: $281,711
Assumptions:
– Average Percent Variable Cost: 23%
– Estimated Monthly Fixed Cost: $216,650
7.2 Projected Profit and Loss
The table below contains the projected profit and loss information for IWA.
The formula for IWA’s success is consistent revenues from specific sponsorship packages and advertising revenues from our television programming.
Each weekly program has 14 minutes of commercial advertising time divided into 60-second, 30-second, or 20-second spots. We can keep up to 10 minutes of that commercial time for re-sale.
In our television programming format, there are 5 basic segments, plus an open and a close. Our goal is to find major sponsors to host at least 4 of these segments. Each sponsor will contribute $250,000 annually to be the exclusive presentor of that segment of the show each week.
TV advertising revenue projections are based on IWA selling 28 30-second spots per show at a cost of $1,500. This adds up to $43,000 per show or $504,000 in gross annual advertising sales. After subtracting ad agency commissions (15%), this results in $428,000 in annual advertising revenue for IWA.
Our pay-per-view income projections are based on our share (40%) of quarterly events with a 0.2% buy rate at $19.95 per household. This totals $3.8 million in annual pay-per-view revenues for IWA.
Attendance revenue is modestly based on 1,500 tickets sold per month/event at $10 each over the 12 shows per year. Site fees are a minimum of $20,000 per TV taping, including travel, rooms, and food. This results in $180,000 in annual gate attendance or site fees revenues for IWA.
Merchandise projections at events are conservatively based on each of the 1,500 attendees spending $1 each per show over the 12 shows per year. This totals $18,000 in annual live event merchandise revenues for IWA.
Food and beverage revenues at live events are based on each of the 1,500 attendees spending $2 each per show over the 12 shows per year. This totals $36,000 in annual food and beverage revenues for IWA.
All financial projections here are conservative and within industry standards.
Pro Forma Profit and Loss:
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $5,538,000 | $14,398,800 | $35,277,060 |
| Direct Cost of Sales | $1,279,000 | $3,837,000 | $11,511,000 |
| Other | $0 | $0 | $0 |
| Total Cost of Sales | $1,279,000 | $3,837,000 | $11,511,000 |
| Gross Margin | $4,259,000 | $10,561,800 | $23,766,060 |
| Gross Margin % | 76.91% | 73.35% | 67.37% |
| Expenses | |||
| Payroll | $2,131,996 | $4,263,992 | $9,807,181 |
| Sales and Marketing and Other Expenses | $98,000 | $283,000 | $840,500 |
| Depreciation | $20,000 | $20,000 | $20,000 |
| Leased Equipment | $4,800 | $9,600 | $19,200 |
| Utilities | $4,800 | $9,600 | $19,200 |
| Insurance | $6,000 | $12,000 | $24,000 |
| Rent | $14,400 | $28,800 | $57,600 |
| Payroll Taxes | $319,799 | $639,599 | $1,471,077 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $2,599,795 | $5,266,591 | $12,258,759 |
| Profit Before Interest and Taxes | $1,659,205 | $5,295,209 | $11,507,301 |
| EBITDA | $1,679,205 | $5,315,209 | $11,527,301 |
| Interest Expense | $30,313 | $21,156 | $13,997 |
| Taxes Incurred | $415,522 | $1,318,513 | $2,921,215 |
| Net Profit | $1,213,370 | $3,955,540 | $8,572,089 |
| Net Profit/Sales | 21.91% | 27.47% | 24.30% |
Projected Cash Flow:
The following table and chart display our projected cash flow.
Pro Forma Cash Flow
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $1,384,500 | $3,599,700 | $8,819,265 |
| Cash from Receivables | $3,464,181 | $9,696,190 | $23,859,063 |
| Subtotal Cash from Operations | $4,848,681 | $13,295,890 | $32,678,328 |
| 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 | $172,000 | $0 | $0 |
| Subtotal Cash Received | $5,020,681 | $13,295,890 | $32,678,328 |
Projected Balance Sheet
7.4 Projected Balance Sheet
The Balance Sheet below contains important cash flow information, as well as assets, liabilities, and capital expectations.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $92,801 | $1,018,292 | $5,146,130 |
| Accounts Receivable | $689,319 | $1,792,229 | $4,390,960 |
| Inventory | $117,242 | $351,725 | $1,055,175 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $899,361 | $3,162,246 | $10,592,265 |
| Long-term Assets | |||
| Long-term Assets | $1,000,000 | $3,000,000 | $5,000,000 |
| Accumulated Depreciation | $20,000 | $40,000 | $60,000 |
| Total Long-term Assets | $980,000 | $2,960,000 | $4,940,000 |
| Total Assets | $1,879,361 | $6,122,246 | $15,532,265 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $176,580 | $525,514 | $1,445,033 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $176,580 | $525,514 | $1,445,033 |
| Long-term Liabilities | $242,356 | $180,767 | $99,178 |
| Total Liabilities | $418,936 | $706,281 | $1,544,211 |
| Paid-in Capital | $329,505 | $329,505 | $329,505 |
| Retained Earnings | ($82,450) | $1,130,920 | $5,086,460 |
| Earnings | $1,213,370 | $3,955,540 | $8,572,089 |
| Total Capital | $1,460,425 | $5,415,965 | $13,988,054 |
| Total Liabilities and Capital | $1,879,361 | $6,122,246 | $15,532,265 |
| Net Worth | $1,460,425 | $5,415,965 | $13,988,054 |
7.5 Business Ratios
The following table contains information from the entertainment industry, as determined by the Standard Industry Classification (SIC) Index code 7999, Amusement and Recreation, Not Elsewhere Classified.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 160.00% | 145.00% | 15.20% |
| Percent of Total Assets | ||||
| Accounts Receivable | 36.68% | 29.27% | 28.27% | 5.00% |
| Inventory | 6.24% | 5.75% | 6.79% | 3.50% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 34.40% |
| Total Current Assets | 47.85% | 51.65% | 68.20% | 42.90% |
| Long-term Assets | ||||
| Long-term Assets | 52.15% | 48.35% | 31.80% | 57.10% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 9.40% | 8.58% | 9.30% | 36.40% |
| Long-term Liabilities | 12.90% | 2.95% | 0.64% | 23.30% |
| Total Liabilities | 22.29% | 11.54% | 9.94% | 59.70% |
| Net Worth | 77.71% | 88.46% | 90.06% | 40.30% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 76.91% | 73.35% | 67.37% | 0.00% |
| Selling, General & Administrative Expenses | 54.85% | 45.88% | 42.93% | 76.60% |
| Advertising Expenses | 0.22% | 0.29% | 0.42% | 2.60% |
| Profit Before Interest and Taxes | 29.96% | 36.78% | 32.62% | 2.00% |
| Main Ratios | ||||
| Current | 5.09 | 6.02 | 7.33 | 1.17 |
| Quick | 4.43 | 5.35 | 6.60 | 0.75 |
| Total Debt to Total Assets | 22.29% | 11.54% | 9.94% | 59.70% |
| Pre-tax Return on Net Worth | 111.54% | 97.38% | 82.17% | 2.40% |
| Pre-tax Return on Assets | 86.67% | 86.15% | 74.00% | 6.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 21.91% | 27.47% | 24.30% | n.a |
| Return on Equity | 83.08% | 73.03% | 61.28% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 6.03 | 6.03 | 6.03 | n.a |
| Collection Days | 57 | 42 | 43 | n.a |
| Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| Sponsorship Participation | $113,333 | $93,333 | $83,333 | $83,333 | $83,333 | $73,333 | $63,333 | $73,333 | $73,333 | $83,333 | $83,333 | $93,333 |
| TV Advertising | $36,417 | $35,417 | $35,417 | $35,417 | $35,417 | $35,417 | $35,417 | $35,417 | $35,417 | $35,417 | $36,417 | $36,417 |
| Pay-Per-View | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 | $320,000 |
| Gate Attendance/Site Sales | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
| Merchandise Sold at Events | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Other Merchandise | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Food and Beverage Sold at Events | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Total Sales | $492,250 | $471,250 | $461,250 | $461,250 | $461,250 | $451,250 | $441,250 | $451,250 | $451,250 | $461,250 | $462,250 | $472,250 |
Personnel Plan:
| Partners | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 |
| Marketing | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Performers | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Production | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Admin | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 | $8,333 |
| Total People | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 |
| Total Payroll | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 |
General Assumptions:
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss:
| Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
| Sales | $492,250 | $471,250 | $461,250 | $461,250 | $461,250 | $451,250 | $441,250 | $451,250 | $451,250 | $461,250 | $462,250 | $472,250 |
| Direct Cost of Sales | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Cost of Sales | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 | $106,583 |
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $123,063 | $117,813 | $115,313 | $115,313 | $115,313 | $112,813 | $110,313 | $112,813 | $112,813 | $115,313 | $115,563 | $118,063 | |
| Cash from Receivables | $0 | $12,306 | $368,663 | $353,188 | $345,938 | $345,938 | $345,688 | $338,188 | $331,188 | $338,438 | $338,688 | $345,963 | |
| Subtotal Cash from Operations | $123,063 | $130,119 | $483,975 | $468,500 | $461,250 | $458,750 | $456,000 | $451,000 | $444,000 | $453,750 | $454,250 | $464,025 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $60,000 | $112,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $183,063 | $242,119 | $483,975 | $468,500 | $461,250 | $458,750 | $456,000 | $451,000 | $444,000 | $453,750 | $454,250 | $464,025 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | $177,666 | |
| Bill Payments | $10,466 | $309,607 | $183,024 | $180,538 | $180,469 | $180,317 | $177,748 | $175,345 | $177,693 | $177,707 | $180,063 | $180,319 | |
| Subtotal Spent on Operations | $188,132 | $487,274 | $360,690 | $358,204 | $358,135 | $357,983 | $355,414 | $353,012 | $355,359 | $355,373 | $357,729 | $357,985 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | $5,049 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | $83,333 | |
| Dividends | $0 | $0 | $0 | ||||||||||
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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