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.
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.
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.
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.
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
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.
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
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.
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.
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%
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.
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
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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