Carpet and Upholstery Cleaning Services

Like New Carpet Cleaners is a local carpet-cleaning service operating in Fairfield County, Connecticut. Established in June 2009 as an LLC, Like New Carpet Cleaners was founded by Fred and Rebecca Smith, who run the business from their home office in Danbury, CT.

Company Ownership

Fred and Rebecca Smith founded Like New Carpet Cleaners as an LLC in June 2009. They each own 50% of the company.

Start-up Summary

The business’s start-up expenses primarily focus on three areas:

1. Website: Developing and testing a website with online ordering, scheduling, rescheduling, and customer support functionality ($30,000 estimate).

2. Delivery Van: Purchasing a van to transport cleaning staff and equipment to customer homes. One van will be used for multiple cleaning crews during initial operations ($15,000 estimate).

3. Cleaning Equipment: Acquiring 3 portable extractors and additional specialized equipment for cleanings ($15,000 estimate).

The business will operate from a home office, minimizing initial rent and overhead costs.

Carpet and Upholstery Cleaning Services Services

Start-up Requirements

Legal: $1,500

Stationery: $1,000

Insurance: $2,000

Rent: $1,000

Website: $30,000

Other: $2,000

Total Start-up Expenses: $37,500

Start-up Assets

Cash Required: $30,000

Other Current Assets: $0

Long-term Assets: $30,000

Total Assets: $60,000

Total Requirements: $97,500

Services

Like New Carpet Cleaners offers:

– Regular Carpet Cleaning

– Spot Treatment for Carpets

– Furniture Cleaning

– Leather Furniture Cleaning

– Area Rugs

– Gift Certificates

The company specializes in cleaning carpets, rugs, and upholstered items. Hardwood floors and other home-cleaning services are not included.

Through the website, customers can easily schedule appointments and set up recurring appointments.

Market Analysis Summary

The U.S. carpet and upholstery cleaning service sector was valued at $5.3 billion in 2006. The market is divided into residential and commercial services. While moderate growth is projected over the next five years, competition in the national market is high.

Like New Carpet Cleaners initially targets residential services in Fairfield County, CT, within a five-mile radius of Danbury, CT. Fairfield County has approximately 895,000 residents, with 225,000 owner-occupied condos and homes. Within the five-mile radius, an estimated 40,000 owner-occupied homes and condos spend around $4 million annually on carpet, upholstery, and floor-cleaning services. This makes it an ideal market to focus on.

Market Segmentation

Customers in this industry can be categorized as:

– Residences (individuals, families, landlords)

– Businesses (small businesses, larger businesses, insurance companies, commercial landlords)

Residences require higher customer support, pay higher rates on average, and offer additional opportunities to sell related services.

Businesses require less customer support, pay lower rates on average, and seek ongoing services without much room for upselling.

Carpet and Upholstery Cleaning Services Services

Market Analysis:

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Potential Customers Growth

Large Homes 25% 10,000 12,500 15,625 19,531 24,414 25.00%

Medium Homes 25% 20,000 25,000 31,250 39,063 48,829 25.00%

Condos and Small Homes 25% 10,000 12,500 15,625 19,531 24,414 25.00%

Total 25.00% 40,000 50,000 62,500 78,125 97,657 25.00%

Target Market Segment Strategy:

Like New Carpet Cleaners focuses on residential cleaning services because this market is more accepting of technological advances and internet customer service. The market is divided into large homes (over 5,000 sq ft), medium homes (2,000 to 5,000 sq ft), and small homes/condos (under 2,000 sq ft).

Service Business Analysis:

The carpet-cleaning business consists of multiple local businesses serving towns, as well as national franchises. Delivery vans are used to transport equipment and cleaning crews. Services are generally ordered by phone and on-site consultations are given for large homes.

Competition and Buying Patterns:

The carpet and upholstery industry in the US consists of 40,000 mostly small companies. The top ten franchises make up only 22% of the market. Customers choose based on brand name, positive references, and price.

Web Plan Summary:

The website for Like New Carpet Cleaners will convert web users to order cleaning services through a simple process, customization of services, and an online system that flags inquiries needing attention. The site includes graphics, tutorials, client testimonials, pricing explanations, a list of services, FAQs, and an about us page. Current customers can schedule and reschedule cleanings and set up recurring appointments.

Website Marketing Strategy:

The website will be marketed through search engine marketing and search engine optimization (SEO). Like New Carpet Cleaners will use Google AdWords and a search engine marketing firm to set up and optimize its account. SEO will be based on the initial design, link building, and adding informative articles about carpet cleaning.

Development Requirements:

The website requires pages for booking, scheduling, testimonials, pricing, services, FAQs, and an about us page. The back end needs the ability to adjust pricing, integrate scheduling and orders, and send alerts by email. The website will be built over two months at a cost of $30,000, with ongoing maintenance.

Strategy and Implementation Summary:

Like New Carpet Cleaning aims to expand rapidly in Fairfield County, CT, targeting residential customers. The strategy includes providing high-quality, moderately-priced service through a web-based model, low overhead, and building the brand around making carpets look "like new".

Competitive Edge:

Like New Carpet Cleaning offers complete online sales, service, and scheduling applications, reducing operating costs and offering convenience to customers.

Marketing Strategy:

The marketing strategy is to build a base of residential customers within a five-mile radius of Danbury, CT. This includes a direct mail campaign, poster advertising, and web advertising through search engine marketing and SEO.

Sales Strategy:

Sales will be automated on the website, with 75% of sales conducted online in the first year and 90% by the fifth year. Owners will handle personal inquiries and provide home estimates. No commissioned salespeople will be hired.

Sales Forecast:

The primary revenue streams are carpet cleaning and intensive spot treatments. Average services include carpet cleaning, furniture cleaning, intensive spot treatment, and area rug cleaning. Cost of sales is expected to be 35% for labor and 4-10% for supplies and gasoline. Rapid growth is anticipated as the business expands geographically.

Carpet and Upholstery Cleaning Services Services

Carpet and Upholstery Cleaning Services Services

Sales Forecast

Unit Sales

Carpet Cleaning: 3,054; 3,817; 4,772; 5,965; 7,456

Furniture Cleaning: 2,310; 2,888; 3,609; 4,512; 5,640

Intensive Spot Treatment: 3,054; 3,817; 4,772; 5,964; 7,456

Area Rugs: 1,486; 1,857; 2,322; 2,902; 3,628

Other Services: 1,486; 1,857; 2,322; 2,902; 3,628

Total Unit Sales: 11,390; 14,237; 17,796; 22,245; 27,806

Unit Prices

Carpet Cleaning: $100.00

Furniture Cleaning: $25.00

Intensive Spot Treatment: $50.00

Area Rugs: $25.00

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Other Services: $25.00

Sales

Carpet Cleaning: $305,395; $381,744; $477,180; $596,475; $745,593

Furniture Cleaning: $57,750; $72,188; $90,234; $112,793; $140,991

Intensive Spot Treatment: $152,691; $190,864; $238,580; $298,225; $372,781

Area Rugs: $37,147; $46,434; $58,042; $72,553; $90,691

Other Services: $37,147; $46,434; $58,042; $72,553; $90,691

Total Sales: $590,130; $737,663; $922,078; $1,152,598; $1,440,747

Direct Unit Costs

Carpet Cleaning: $30.00

Furniture Cleaning: $7.50

Intensive Spot Treatment: $22.50

Area Rugs: $9.75

Other Services: $11.25

Direct Cost of Sales

Carpet Cleaning: $91,619; $114,523; $143,154; $178,942; $223,678

Furniture Cleaning: $17,325; $21,656; $27,070; $33,838; $42,297

Intensive Spot Treatment: $68,711; $85,889; $107,361; $134,201; $167,751

Area Rugs: $14,487; $18,109; $22,636; $28,296; $35,369

Other Services: $16,716; $20,895; $26,119; $32,649; $40,811

Subtotal Direct Cost of Sales: $208,858; $261,072; $326,341; $407,926; $509,907

Milestones

The marketing program depends on timely completion of the key marketing tasks. Before public marketing can begin, the website service must be well tested over a two-month period. Upon completion, direct mail and poster/movie screen advertising will begin concurrently with the goal of making local residents aware of the new business and its value proposition. Web advertising will follow with the goal of converting locals searching for carpet cleaning to sales.

Carpet and Upholstery Cleaning Services Services

Milestones:

Website Build, 8/1/2009 – 10/3/2009, $30,000, RS, Operations

Direct Mail Campaign, 10/3/2009 – 12/31/2009, $10,000, FS, Marketing

Public Advertising, 11/23/2009 – 12/31/2009, $20,000, FS, Marketing

Search Engine Advertising, 11/3/2009 – 12/31/2009, $10,000, FS, Marketing

Totals, $70,000

Management Summary:

The business will be managed by owners, Fred and Rebecca Smith.

Fred Smith, CEO, will head sales and marketing. He will make client appointments and orchestrate all marketing activities.

Rebecca Smith, COO, will oversee operations and finances. She will manage all financial aspects, including bookkeeping, accounting, and financing.

In the fourth year of operation, experienced business managers will be hired to take over the CEO and COO positions, preparing the company for franchising. Fred and Rebecca Smith will transition to strategic roles.

Personnel Plan:

After six months of operation, a full-time administrative assistant will be hired to handle bookkeeping, accounts payable, and support sales and marketing activities. This will allow Fred and Rebecca Smith to focus on strategic endeavors and expansion opportunities.

After two years, an additional administrative assistant will be hired.

Personnel Plan:

Year 1, Year 2, Year 3, Year 4, Year 5

CEO, $60,000, $60,000, $60,000, $70,000, $75,000

COO, $60,000, $60,000, $60,000, $70,000, $75,000

Administrative Assistant/Manager, $18,000, $40,000, $50,000, $55,000, $60,000

Administrative Assistant 2, $0, $0, $40,000, $42,000, $45,000

Total People, 3, 3, 4, 4, 4

Total Payroll, $138,000, $160,000, $210,000, $237,000, $255,000

Financial Plan:

Like New Carpet Cleaning will add a new local base each year, financing growth with cash from existing locations and debt for vehicle and cleaning equipment purchases.

Start-up Funding:

Start-up funding will be provided by owner investment, investor funding, and a small amount of debt.

Owners will contribute $20,000 to develop a website prototype.

Investors will contribute $57,500 for a 30% share of the company.

Start-up Funding:

Start-up Expenses to Fund, $37,500

Start-up Assets to Fund, $60,000

Total Funding Required, $97,500

Assets,

Non-cash Assets from Start-up, $30,000

Cash Requirements from Start-up, $30,000

Additional Cash Raised, $0

Cash Balance on Starting Date, $30,000

Total Assets, $60,000

Liabilities and Capital:

Liabilities,

Current Borrowing, $0

Long-term Liabilities, $15,000

Accounts Payable (Outstanding Bills), $5,000

Other Current Liabilities (interest-free), $0

Total Liabilities, $20,000

Capital,

Planned Investment,

Owners, $20,000

Investor, $57,500

Additional Investment Requirement, $0

Total Planned Investment, $77,500

Loss at Start-up (Start-up Expenses), ($37,500)

Total Capital, $40,000

Total Capital and Liabilities, $60,000

Total Funding, $97,500

Break-even Analysis:

The business will benefit from a low monthly break-even point by assigning most costs directly to the cleaning service and leveraging the website to reduce administrative costs.

Carpet and Upholstery Cleaning Services Services

Break-even Analysis

Monthly Units Break-even: 705

Monthly Revenue Break-even: $36,506

Assumptions:

Average Per-Unit Revenue: $51.81

Average Per-Unit Variable Cost: $18.34

Estimated Monthly Fixed Cost: $23,586

Projected Profit and Loss

The business will experience modest profits for its first three years. The operations will scale up over a larger geographic region and result in healthy profits in the fourth and fifth years. This will demonstrate the viability of the business model for expansion.

Direct labor is estimated at 35% of sales revenue, with the actual cleaning representing about a 280% markup of the labor. Direct labor is included in the cost of sales.

Carpet and Upholstery Cleaning Services Services

Carpet and Upholstery Cleaning Services Services

Carpet and Upholstery Cleaning Services Services

Carpet and Upholstery Cleaning Services Services

Pro Forma Profit and Loss

Sales:

Year 1: $590,130

Year 2: $737,663

Year 3: $922,078

Year 4: $1,152,598

Year 5: $1,440,747

Direct Cost of Sales:

Year 1: $208,858

Year 2: $261,072

Year 3: $326,341

Year 4: $407,926

Year 5: $509,907

Other Costs of Sales:

Year 1-5: $0

Total Cost of Sales:

Year 1: $208,858

Year 2: $261,072

Year 3: $326,341

Year 4: $407,926

Year 5: $509,907

Gross Margin:

Year 1: $381,272

Year 2: $476,590

Year 3: $595,738

Year 4: $744,672

Year 5: $930,840

Gross Margin %:

Year 1-5: 64.61%

Expenses:

Payroll:

Year 1: $138,000

Year 2: $160,000

Year 3: $210,000

Year 4: $237,000

Year 5: $255,000

Marketing/Promotion:

Year 1: $60,000

Year 2: $70,000

Year 3: $80,000

Year 4: $90,000

Year 5: $100,000

Depreciation:

Year 1: $6,000

Year 2: $10,000

Year 3: $12,000

Year 4: $18,000

Year 5: $30,000

Rent:

Year 1: $10,200

Year 2: $30,000

Year 3: $40,000

Year 4: $50,000

Year 5: $60,000

Utilities:

Year 1: $1,200

Year 2: $2,000

Year 3: $2,500

Year 4: $3,000

Year 5: $3,500

Insurance:

Year 1: $3,600

Year 2: $4,000

Year 3: $5,000

Year 4: $6,500

Year 5: $8,000

Payroll Taxes:

Year 1: $52,029

Year 2: $63,161

Year 3: $80,451

Year 4: $35,550

Year 5: $38,250

Website Maintenance/Hosting:

Year 1: $6,000

Year 2: $7,000

Year 3: $8,000

Year 4: $9,000

Year 5: $10,000

Other:

Year 1-5: $6,000

Total Operating Expenses:

Year 1: $283,029

Year 2: $353,161

Year 3: $445,951

Year 4: $458,050

Year 5: $514,750

Profit Before Interest and Taxes:

Year 1: $98,243

Year 2: $123,429

Year 3: $149,787

Year 4: $286,622

Year 5: $416,090

EBITDA:

Year 1: $104,243

Year 2: $133,429

Year 3: $161,787

Year 4: $304,622

Year 5: $446,090

Interest Expense:

Year 1-5: $688

Taxes Incurred:

Year 1: $29,267

Year 2: $37,029

Year 3: $44,936

Year 4: $85,987

Year 5: $124,827

Net Profit:

Year 1: $68,289

Year 2: $86,400

Year 3: $104,851

Year 4: $200,635

Year 5: $291,263

Net Profit/Sales:

Year 1: 11.57%

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Year 2: 11.71%

Year 3: 11.37%

Year 4: 17.41%

Year 5: 20.22%

Projected Cash Flow

In the first year, cash flow will be supported by start-up funding and full payment by customers in advance. Company vans will be purchased with auto loans. When the business expands to new offices across the county, additional vans and cleaning equipment must be purchased. These will be financed through debt, including a company credit line.

Carpet and Upholstery Cleaning Services Services

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from Operations
Cash Sales $590,130 $737,663 $922,078 $1,152,598 $1,440,747
Subtotal Cash from Operations $590,130 $737,663 $922,078 $1,152,598 $1,440,747
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $590,130 $737,663 $922,078 $1,152,598 $1,440,747
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations
Cash Spending $138,000 $160,000 $210,000 $237,000 $255,000
Bill Payments $308,546 $516,001 $585,861 $688,600 $850,715
Subtotal Spent on Operations $446,546 $676,001 $795,861 $925,600 $1,105,715
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $15,000 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $18,000 $30,000 $30,000 $30,000 $30,000
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $479,546 $706,001 $825,861 $955,600 $1,135,715
Net Cash Flow $110,584 $31,662 $96,218 $196,997 $305,032
Cash Balance $140,584 $172,245 $268,463 $465,460 $770,492

Projected Balance Sheet

The net worth of the business will show healthy growth, even while liabilities will increase due to the growth of the business and the need to purchase additional assets. Liabilities will initially decrease in the second year as accounts payable from the first large expansion are paid off. After that point, growth will be more even. A cash balance will be built up with the plan of financing expansion of the business.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash $140,584 $172,245 $268,463 $465,460 $770,492
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $140,584 $172,245 $268,463 $465,460 $770,492
Long-term Assets
Long-term Assets $48,000 $78,000 $108,000 $138,000 $168,000
Accumulated Depreciation $6,000 $16,000 $28,000 $46,000 $76,000
Total Long-term Assets $42,000 $62,000 $80,000 $92,000 $92,000
Total Assets $182,584 $234,245 $348,463 $557,460 $862,492
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable $74,295 $39,556 $48,923 $57,285 $71,053
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $74,295 $39,556 $48,923 $57,285 $71,053
Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $74,295 $39,556 $48,923 $57,285 $71,053
Paid-in Capital $77,500 $77,500 $77,500 $77,500 $77,500
Retained Earnings ($37,500) $30,789 $117,190 $222,040 $422,676
Earnings $68,289 $86,400 $104,851 $200,635 $291,263
Total Capital $108,289 $194,690 $299,540 $500,176 $791,439
Total Liabilities and Capital $182,584 $234,245 $348,463 $557,460 $862,492
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
Carpet Cleaning 60 74 92 114 142 176 218 270 335 416 516 639
Furniture Cleaning 40 50 64 80 101 127 160 202 254 320 404 508
Intensive Spot Treatment 60 74 92 114 142 176 218 270 335 416 516 639
Area Rugs 20 26 34 44 57 74 96 125 163 212 276 358
Other Services 20 26 34 44 57 74 96 125 163 212 276 358
Total Unit Sales 200 251 316 397 499 627 789 994 1,251 1,576 1,986 2,504

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
CEO $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
COO $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Administrative Assistant/ Manager $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Administrative Assistant 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 2 2 2 2 2 2 3 3 3 3 3 3
Total Payroll $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000

Pro Forma Profit and Loss:

Sales:

Month 1: $11,000

Month 2: $13,720

Month 3: $17,117

Month 4: $21,357

Month 5: $26,654

Month 6: $33,272

Month 7: $41,545

Month 8: $51,886

Month 9: $64,817

Month 10: $80,990

Month 11: $101,225

Month 12: $126,547

Direct Cost of Sales:

Month 1: $3,870

Month 2: $4,830

Month 3: $6,030

Month 4: $7,529

Month 5: $9,403

Month 6: $11,746

Month 7: $14,678

Month 8: $18,347

Month 9: $22,939

Month 10: $28,688

Month 11: $35,889

Month 12: $44,910

Other Costs of Sales:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Total Cost of Sales:

Month 1: $3,870

Month 2: $4,830

Month 3: $6,030

Month 4: $7,529

Month 5: $9,403

Month 6: $11,746

Month 7: $14,678

Month 8: $18,347

Month 9: $22,939

Month 10: $28,688

Month 11: $35,889

Month 12: $44,910

Gross Margin:

Month 1: $7,130

Month 2: $8,890

Month 3: $11,087

Month 4: $13,828

Month 5: $17,251

Month 6: $21,526

Month 7: $26,867

Month 8: $33,539

Month 9: $41,878

Month 10: $52,302

Month 11: $65,336

Month 12: $81,637

Gross Margin %:

Month 1: 64.82%

Month 2: 64.80%

Month 3: 64.77%

Month 4: 64.75%

Month 5: 64.72%

Month 6: 64.70%

Month 7: 64.67%

Month 8: 64.64%

Month 9: 64.61%

Month 10: 64.58%

Month 11: 64.55%

Month 12: 64.51%

Expenses:

Payroll:

Month 1: $10,000

Month 2: $10,000

Month 3: $10,000

Month 4: $10,000

Month 5: $10,000

Month 6: $10,000

Month 7: $13,000

Month 8: $13,000

Month 9: $13,000

Month 10: $13,000

Month 11: $13,000

Month 12: $13,000

Marketing/Promotion:

Month 1: $5,000

Month 2: $5,000

Month 3: $5,000

Month 4: $5,000

Month 5: $5,000

Month 6: $5,000

Month 7: $5,000

Month 8: $5,000

Month 9: $5,000

Month 10: $5,000

Month 11: $5,000

Month 12: $5,000

Depreciation:

Month 1: $500

Month 2: $500

Month 3: $500

Month 4: $500

Month 5: $500

Month 6: $500

Month 7: $500

Month 8: $500

Month 9: $500

Month 10: $500

Month 11: $500

Month 12: $500

Rent:

Month 1: $500

Month 2: $500

Month 3: $500

Month 4: $500

Month 5: $500

Month 6: $500

Month 7: $1,200

Month 8: $1,200

Month 9: $1,200

Month 10: $1,200

Month 11: $1,200

Month 12: $1,200

Utilities:

Month 1: $50

Month 2: $50

Month 3: $50

Month 4: $50

Month 5: $50

Month 6: $50

Month 7: $150

Month 8: $150

Month 9: $150

Month 10: $150

Month 11: $150

Month 12: $150

Insurance:

Month 1: $200

Month 2: $200

Month 3: $200

Month 4: $200

Month 5: $200

Month 6: $200

Month 7: $400

Month 8: $400

Month 9: $400

Month 10: $400

Month 11: $400

Month 12: $400

Payroll Taxes:

Month 1: 15%

Month 2: $2,081

Month 3: $2,225

Month 4: $2,404

Month 5: $2,629

Month 6: $2,910

Month 7: $3,262

Month 8: $4,152

Month 9: $4,702

Month 10: $5,391

Month 11: $6,253

Month 12: $7,333

Month 13: $8,686

Website Maintenance/Hosting:

Month 1: 15%

Month 2: $500

Month 3: $500

Month 4: $500

Month 5: $500

Month 6: $500

Month 7: $500

Month 8: $500

Month 9: $500

Month 10: $500

Month 11: $500

Month 12: $500

Other:

Month 1: $500

Month 2: $500

Month 3: $500

Month 4: $500

Month 5: $500

Month 6: $500

Month 7: $500

Month 8: $500

Month 9: $500

Month 10: $500

Month 11: $500

Month 12: $500

Total Operating Expenses:

Month 1: $19,331

Month 2: $19,475

Month 3: $19,654

Month 4: $19,879

Month 5: $20,160

Month 6: $20,512

Month 7: $25,402

Month 8: $25,952

Month 9: $26,641

Month 10: $27,503

Month 11: $28,583

Month 12: $29,936

Profit Before Interest and Taxes:

Month 1: ($12,201)

Month 2: ($10,585)

Month 3: ($8,567)

Month 4: ($6,051)

Month 5: ($2,909)

Month 6: $1,014

Month 7: $1,465

Month 8: $7,587

Month 9: $15,237

Month 10: $24,799

Month 11: $36,753

Month 12: $51,701

EBITDA:

Month 1: ($11,701)

Month 2: ($10,085)

Month 3: ($8,067)

Month 4: ($5,551)

Month 5: ($2,409)

Month 6: $1,514

Month 7: $1,965

Month 8: $8,087

Month 9: $15,737

Month 10: $25,299

Month 11: $37,253

Month 12: $52,201

Interest Expense:

Month 1: $115

Month 2: $104

Month 3: $94

Month 4: $83

Month 5: $73

Month 6: $63

Month 7: $52

Month 8: $42

Month 9: $31

Month 10: $21

Month 11: $10

Month 12: $0

Taxes Incurred:

Month 1: ($3,695)

Month 2: ($3,207)

Month 3: ($2,598)

Month 4: ($1,840)

Month 5: ($895)

Month 6: $285

Month 7: $424

Month 8: $2,264

Month 9: $4,562

Month 10: $7,433

Month 11: $11,023

Month 12: $15,510

Net Profit:

Month 1: ($8,621)

Month 2: ($7,482)

Month 3: ($6,063)

Month 4: ($4,294)

Month 5: ($2,087)

Month 6: $666

Month 7: $989

Month 8: $5,282

Month 9: $10,644

Month 10: $17,344

Month 11: $25,720

Month 12: $36,191

Net Profit/Sales:

Month 1: -78.37%

Month 2: -54.53%

Month 3: -35.42%

Month 4: -20.11%

Month 5: -7.83%

Month 6: 2.00%

Month 7: 2.38%

Month 8: 10.18%

Month 9: 16.42%

Month 10: 21.42%

Month 11: 25.41%

Month 12: 28.60%

Pro Forma Cash Flow:

Cash Received:

Month 1: $11,000

Month 2: $13,720

Month 3: $17,117

Month 4: $21,357

Month 5: $26,654

Month 6: $33,272

Month 7: $41,545

Month 8: $51,886

Month 9: $64,817

Month 10: $80,990

Month 11: $101,225

Month 12: $126,547

Cash from Operations:

Month 1: $11,000

Month 2: $13,720

Month 3: $17,117

Month 4: $21,357

Month 5: $26,654

Month 6: $33,272

Month 7: $41,545

Month 8: $51,886

Month 9: $64,817

Month 10: $80,990

Month 11: $101,225

Month 12: $126,547

Additional Cash Received:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Expenditures:

Expenditures from Operations:

Month 1: $10,000

Month 2: $10,000

Month 3: $10,000

Month 4: $10,000

Month 5: $10,000

Month 6: $10,000

Month 7: $13,000

Month 8: $13,000

Month 9: $13,000

Month 10: $13,000

Month 11: $13,000

Month 12: $13,000

Bill Payments:

Month 1: $5,304

Month 2: $9,173

Month 3: $10,768

Month 4: $12,762

Month 5: $15,254

Month 6: $18,370

Month 7: $22,271

Month 8: $27,258

Month 9: $33,356

Month 10: $40,989

Month 11: $50,541

Month 12: $62,500

Subtotal Spent on Operations:

Month 1: $15,304

Month 2: $19,173

Month 3: $20,768

Month 4: $22,762

Month 5: $25,254

Month 6: $28,370

Month 7: $35,271

Month 8: $40,258

Month 9: $46,356

Month 10: $53,989

Month 11: $63,541

Month 12: $75,500

Additional Cash Spent:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Net Cash Flow:

Month 1: ($5,554)

Month 2: ($6,703)

Month 3: ($4,901)

Month 4: ($2,655)

Month 5: $150

Month 6: $3,652

Month 7: $2,024

Month 8: $10,378

Month 9: $2,211

Month 10: $25,751

Month 11: $36,434

Month 12: $49,797

Cash Balance:

Month 1: $24,446

Month 2: $17,743

Month 3: $12,842

Month 4: $10,187

Month 5: $10,337

Month 6: $13,988

Month 7: $16,013

Month 8: $26,391

Month 9: $28,601

Month 10: $54,353

Month 11: $90,787

Month 12: $140,584

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