Advertising Consulting Business Plan

Introduction
Marrowstone Advertising Consultants offers comprehensive marketing consultation and advertising campaign creation for the nonprofit industry. Our goal is to become the preferred advertising agency for nonprofit institutions nationwide. We believe in creating long-term relationships with our clients to deliver their message in a seamless and thought-provoking way, inspiring action.

The Company
Marrowstone Advertising Consultants is a limited liability partnership registered in Delaware for tax purposes. It was founded by Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Our team includes highly respected marketing, development, and graphic art specialists with a combined 35 years of experience in nonprofit organizations.

The company has limited private investors and no plans to go public. Our main offices are located in Reston, Virginia, featuring a design lab, conference rooms, and office spaces. We expect to start offering our services in January.

The Services
Our firm offers a complete custom advertising campaign, including audio-visual and printed media such as radio and TV ads, billboards, building advertisements, brochures, direct mailing, and business cards. Our management has designed a proven and effective seven-step process to build a winning campaign.

The primary clients of Marrowstone Advertising Consultants will be small and start-up nonprofit institutions and local governments. We specialize in serving organizations with special needs, providing a superior and more effective service compared to other advertising firms.

The Market
Our focus will be on three main types of nonprofits: environmental, youth development, and cultural awareness organizations. These sectors have the greatest needs and/or are the best capitalized in the nonprofit industry.

Profitability and growth in this untapped market are expected to be strong. Over the past 15 years, the U.S. has seen an explosion of nonprofits in new fields like environmental awareness. Additionally, there is a growing gap between these organizations’ needs and what conventional advertising companies can offer.

Financial Considerations
Start-up assets required are $122,300, including cash to support operations until revenues reach an acceptable level. Start-up expenses amount to $31,700. The company’s liabilities will come from private investors, management investment, and a borrowing of $16,000 from Bank of America Commercial Investments to be paid off in two years. A long-term loan of $45,000 through Charter Bank of Richmond will be paid off in ten years.

The company expects to reach profitability in Year 2 with no significant cash flow problems anticipated. We conservatively estimate that three projects per month will guarantee a break-even point during the first three years.

Advertising Consulting Business Plan Example

1.1 Objectives:

– Achieve break-even by Year 2.

– Establish a long-term contract with The Nature Conservancy.

– Establish a minimum of 95% customer satisfaction rate to create word-of-mouth marketing.

1.2 Keys to Success:

– Differentiate our services to nonprofits to better serve their needs than generic competitors.

– Keep close contact with clients to generate repeat business and a top reputation.

– Establish a comprehensive service experience for clients, including consultation, analysis of goals and target markets, creation of custom advertising campaigns, implementation, and follow-up analysis.

1.3 Mission:

– Marrowstone Advertising Consultants provides comprehensive marketing consultation and creation of advertising campaigns for the nonprofit industry.

– We build long-term relationships with clients to deliver thought-provoking experiences that inspire action.

– Marrowstone understands and meets the special needs of nonprofit groups in delivering their messages and inspiring action.

Company Summary:

– Marrowstone Advertising Consultants is a limited liability partnership registered in Delaware.

– Founded by Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America.

– The company has a highly respected team with 35 years of combined experience in nonprofit organizations.

– Main offices located in Reston, Virginia, with design lab, conference rooms, and office spaces.

– Main clients are small and start-up nonprofit institutions and local governments.

2.1 Start-up Summary:

– Start-up assets required: $122,300 for operations until revenues reach an acceptable level.

– Start-up expenses: $31,700.

– The company has obtained $16,000 in current borrowing from Bank of America Commercial Investment.

– A long-term loan of $45,000 through Charter Bank of Richmond will be paid off in ten years.

Advertising Consulting Business Plan Example

Start-up Requirements:

– Legal: $2,000

– Insurance: $1,000

– Utilities: $200

– Rent: $2,000

Accounting and bookkeeping fees: $2,000

– Expensed equipment: $10,000

– Advertising: $6,500

– Other: $8,000

– Total Start-up Expenses: $31,700

Start-up Assets:

– Cash Required: $117,300

– Other Current Assets: $5,000

– Long-term Assets: $10,000

– Total Assets: $132,300

Total Requirements: $164,000

Start-up Funding:

– Start-up Expenses to Fund: $31,700

– Start-up Assets to Fund: $132,300

– Total Funding Required: $164,000

Assets:

– Non-cash Assets from Start-up: $15,000

– Cash Requirements from Start-up: $117,300

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $117,300

– Total Assets: $132,300

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $16,000

– Long-term Liabilities: $45,000

– Accounts Payable (Outstanding Bills): $3,000

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $64,000

– Capital:

– Planned Investment:

– Mr. Curtis Cole: $25,000

– Ms. Jennie Marks: $20,000

– Mr. David Danielson: $20,000

– Mr. Milo Winn: $8,000

– Others: $27,000

– Additional Investment Requirement: $0

– Total Planned Investment: $100,000

– Loss at Start-up (Start-up Expenses): ($31,700)

– Total Capital: $68,300

Total Capital and Liabilities: $132,300

Total Funding: $164,000

Company Ownership:

The company will have outside private investors owning 27% of the company’s shares. The rest will be owned by the senior management, including Mr. Curtis Cole (25%), Ms. Jennie Marks (20%), Mr. David Danielson (20%), and Mr. Milo Winn (8%). Other financing will come from loans.

Services:

Marrowstone Advertising Consultants offers a complete, custom advertising campaign that covers audio-visual and printed media including radio and television ads, billboards, building advertisements, brochures, direct mailing, and business cards. Our seven-step process for building a winning campaign includes:

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1. Initial consultation.

2. Analysis of nonprofit’s goals and target market demographics.

3. Planning.

4. Creation of streamlined and custom advertising campaigns.

5. Total design work of all audio-visual/printed advertising tools.

6. Implementation (usually through subcontractors).

7. Follow-up analysis.

Each project is customized to our client, and its scope, length, depth, reach, and cost are unique.

Market Analysis Summary:

Marrowstone Advertising Consultants will focus on three main types of nonprofits in the environmental, youth development, and cultural awareness fields. These organizations have the greatest needs and capitalization in the nonprofit industry.

Profitability and growth in this untapped market are expected to be strong. Over the past 15 years, there has been an explosion of nonprofits in new fields such as environmental awareness. Conventional advertising companies cannot meet the increasing needs of these organizations.

The analysis of the market using the five forces of profitability indicates a short time where growth of market share and profitability will be extremely high while demand outstrips supply. Marrowstone must create its reputation and niche in the industry during this time.

Market Segmentation:

Marrowstone will focus on the following groups of nonprofit clients:

– Environmental nonprofit institutions.

– Youth development nonprofit institutions.

– Cultural nonprofit institutions.

– Other.

These specific market segments are chosen for various reasons. The environmental segment, including organizations like the Sierra Club and the Nature Conservancy, is the fastest growing segment with some of the largest nonprofits in the nation. Youth development nonprofits, such as the Boy Scouts and The Boys and Girls Club, include well-capitalized organizations. Cultural nonprofits, such as museums, although small in size, are numerous.

The market analysis table and graph show the number of each type of organization in the greater Washington D.C. area. This will be our initial geographical focus for the first three to four years, with plans to expand nationwide in the future.

Advertising Consulting Business Plan Example

Market Analysis:

Potential Customers Growth CAGR

Environmental nonprofits 8% 34 37 40 43 46 7.85%

Youth development nonprofits 4% 44 46 48 50 52 4.26%

Cultural nonprofits 4% 128 133 138 144 150 4.04%

Other 5% 72 76 80 84 88 5.14%

Total 4.85% 278 292 306 321 336 4.85%

4.2 Service Business Analysis

The advertising industry for nonprofits is currently an unfulfilled market with demand exceeding supply. Many nonprofits have found that only the largest and most expensive advertising agencies will work with them, leaving a void that must be filled by in-house advertising.

Marrowstone believes the biggest threat comes from new entrants who also see this opportunity. The most likely entrants are pre-existing advertising agencies looking to enter new sub-markets. However, new entrants face significant switching costs and a learning curve that creates declining costs as they gain more experience.

Rivalry among advertising agencies is intense in this mature, low-growth market. The fact that there are many advertising agencies makes this a cutthroat industry.

The threat of clients doing their advertising in-house is a major factor that increases competition among firms. Marrowstone must always consider this when offering services and setting prices.

4.2.1 Competition and Buying Patterns

Competition includes all potential advertising agencies willing to accept nonprofit contracts and nonprofit organizations that handle their advertising in-house. The largest advertising agencies and nationwide agencies with significant market share pose the most competition. The industry is highly fragmented with a large number of small companies and a few large companies that seek the largest contracts. Marrowstone aims to avoid price wars by focusing on its niche strategy.

Companies enter into contracts with advertising agencies based on their professionalism, effective campaigns, price, and scope. This is difficult for new firms unless they bring personnel with them from previous firms. Nonprofits have different needs than other companies and require thought-provoking advertisements that inspire contributions. Many agencies do not accept these types of contracts, leading to higher costs and less effective management of goals.

Strategy and Implementation Summary

Marrowstone’s business strategy is to enter a focused market and offer a higher standard of quality to specialized clients. This allows them to charge a higher profit margin. This strategy requires longer project times and lower initial profitability.

5.1 Marketing Strategy

Marrowstone will contact promising organizations and offer free consultations and initial contracts at reduced prices to establish their reputation. They will also have booths at conventions, make cold calls to potential clients, and advertise in publications catering to nonprofit organizations.

5.2 Sales Strategy

Marrowstone will leverage its extensive contacts in the nonprofit industry to generate contracts. They are aggressively pursuing a long-term advertising contract with the Nature Conservancy. They have also pursued contracts with youth organizations, such as the Holson Foundation, and bid for a stop smoking campaign with the city of Frederick, Maryland.

5.2.1 Sales Forecast

Sales are based on anticipated contracts in various market segments. Revenues are based on estimated project costs and a undisclosed profit margin. The company does not have significant direct costs of sales.

Advertising Consulting Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Environmental nonprofits $93,000 $145,000 $224,000
Youth development nonprofits $33,000 $56,000 $98,000
Cultural nonprofits $69,000 $110,000 $93,000
Other $36,000 $45,000 $45,000
Total Sales $231,000 $356,000 $460,000
Direct Cost of Sales Year 1 Year 2 Year 3
Row 1 $0 $0 $0
Other $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

Management Summary

The company will have four officers, including our president, Mr. Curtiss Cole. Our head of operations will be Mr. David Danielson, along with two advertising consultants and a graphic artist. Mr. Winn will handle all audio-visual design work and will eventually have a staff of graphic artists working under him. Finances and general administration will be handled by Mrs. Marks.

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The company plans to hire additional advertising consultants, graphic artists, and administrative personnel as we obtain more contracts.

6.1 Personnel

Marrowstone’s management brings strong capabilities in creative flair, research, and a unique combination of skills from other businesses.

Mr. Curtis Cole is a former marketing executive with the Land Trust Alliance and has extensive experience working with environmental nonprofits. He has successfully launched numerous advertising and public awareness campaigns, including efforts to preserve the orca population in the Puget Sound region and reduce pollution levels in Denver, CO. Mr. Cole has an MBA in marketing and a BS in international relations.

Mr. David Danielson graduated from Penn State University with a bachelor’s degree in marketing in 1975. He has worked for Ford Motor Company and Anderson Consulting in their marketing and advertising divisions. Four years later, Mr. Danielson became the Boy Scouts of America’s chief marketing executive.

Personnel Plan
Year 1 Year 2 Year 3
Mr. Curtis Cole – president $36,000 $36,000 $60,000
Mrs. Jennie Marks – CFO $36,000 $36,000 $60,000
Mr. David Danielson – projects manager $36,000 $36,000 $45,000
Mr. Milo Winn – audio-visual director $36,000 $36,000 $36,000
Advertising consultant $36,000 $36,000 $36,000
Advertising consultant $0 $36,000 $36,000
Graphic artist $0 $0 $21,000
Total People 5 6 7
Total Payroll $180,000 $216,000 $294,000

Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have budgeted enough investment to cover these losses and have an additional credit line of $60,000 available if sales do not meet predictions.

7.1 Important Assumptions

We assume approximately 75% of sales will be on credit, with an average interest rate of 10%. These assumptions are considered conservative in case our predictions are inaccurate.

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 30.00% 30.00% 30.00%
Other 0 0 0

7.2 Break-even Analysis

Our Break-even Analysis is based on the assumption that our gross margin is 100% and that we will have minimal direct cost of sales. Since each project will vary in scope, length, and complexity, it is difficult to assign an average per unit revenue figure. However, we conservatively believe that about three projects per month during the first three years will guarantee a break-even point. This is because we will be working with smaller companies at first that have smaller projects.

Advertising Consulting Business Plan Example

Break-even Analysis

Monthly Revenue Break-even: $22,583.

Assumptions:

– Average Percent Variable Cost: 0%.

– Estimated Monthly Fixed Cost: $22,583.

7.3 Projected Cash Flow

The following is our Cash Flow table and chart. We do not expect to have any short-term cash flow problems, even though we will be operating at a loss for the first year. Our short-term loan of $16,000 will be repaid in two equal payments in 2004-2005. Our $45,000 long-term loan will be paid off in ten years.

Advertising Consulting Business Plan Example

Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $57,750 $89,000 $115,000

Cash from Receivables $121,425 $238,956 $321,668

Subtotal Cash from Operations $179,175 $327,956 $436,668

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $5,000 $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 $3,000 $0 $0

Subtotal Cash Received $187,175 $327,956 $436,668

Expenditures

Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $180,000 $216,000 $294,000

Bill Payments $95,653 $116,295 $131,741

Subtotal Spent on Operations $275,653 $332,295 $425,741

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $7,992 $3,000 $3,000

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $4,000 $4,000

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $283,645 $339,295 $432,741

Net Cash Flow ($96,470) ($11,339) $3,926

Cash Balance $20,830 $9,491 $13,418

7.4 Projected Profit and Loss

The following table itemizes our revenues and associated costs. We expect to be paying higher costs in marketing and advertising than other companies as we attempt to build sales volume. Monthly profits are projected to begin in August 2003, with yearly profits occurring in 2004. The charts following the table provide a visual representation.

Advertising Consulting Business Plan Example

Advertising Consulting Business Plan Example

Advertising Consulting Business Plan Example

Advertising Consulting Business Plan Example

Pro Forma Profit and Loss

Profit and Loss
Sales $231,000 $356,000 $460,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $7,000 $7,000 $7,000
Total Cost of Sales $7,000 $7,000 $7,000
Gross Margin $224,000 $349,000 $453,000
Gross Margin % 96.97% 98.03% 98.48%
Expenses
Payroll $180,000 $216,000 $294,000
Sales and Marketing and Other Expenses $12,000 $24,000 $24,000
Depreciation $2,000 $2,000 $2,000
Rent $12,000 $12,000 $13,000
Utilities $3,600 $3,600 $4,000
Insurance $3,000 $3,000 $3,000
Payroll Taxes $27,000 $32,400 $44,100
Travel $24,200 $12,000 $10,000
Other $7,200 $8,000 $10,000
Total Operating Expenses $271,000 $313,000 $404,100
Profit Before Interest and Taxes ($47,000) $36,000 $48,900
EBITDA ($45,000) $38,000 $50,900
Interest Expense $5,917 $5,451 $4,751
Taxes Incurred $0 $9,165 $13,245
Net Profit ($52,917) $21,384 $30,904
Net Profit/Sales -22.91% 6.01% 6.72%

Projected Balance Sheet

The following table shows the Projected Balance Sheet for Marrowstone Advertising.

Balance Sheet
Assets
Current Assets
Cash $20,830 $9,491 $13,418
Accounts Receivable $51,825 $79,869 $103,201
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $77,655 $94,360 $121,619
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $2,000 $4,000 $6,000
Total Long-term Assets $8,000 $6,000 $4,000
Total Assets $85,655 $100,360 $125,619
Liabilities and Capital
Current Liabilities
Accounts Payable $9,264 $9,585 $10,939
Current Borrowing $13,008 $10,008 $7,008
Subtotal Current Liabilities $22,272 $19,593 $17,947
Long-term Liabilities $45,000 $41,000 $37,000
Total Liabilities $67,272 $60,593 $54,947
Paid-in Capital $103,000 $103,000 $103,000
Retained Earnings ($31,700) ($84,617) ($63,233)
Earnings ($52,917) $21,384 $30,904
Total Capital $18,383 $39,767 $70,672
Total Liabilities and Capital $85,655 $100,360 $125,619
Net Worth $18,383 $39,767 $70,672
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Business Ratios

We have included industry standard ratios from the advertising consultant industry to compare with ours. Our projections indicate a healthy company that will be able to obtain and retain long-term profitability.

Ratio Analysis
Sales Growth 0.00% 54.11% 29.21% 7.51%
Accounts Receivable / Total Assets 60.50% 79.58% 82.15% 39.92%
Other Current Assets / Total Assets 5.84% 4.98% 3.98% 39.01%
Total Current Assets / Total Assets 90.66% 94.02% 96.82% 82.32%
Long-term Assets / Total Assets 9.34% 5.98% 3.18% 17.68%
Total Liabilities / Total Assets 78.54% 60.38% 43.74% 49.67%
Net Worth / Total Assets 21.46% 39.62% 56.26% 50.33%
Sales / Gross Margin 96.97% 98.03% 98.48% 100.00%
Selling, General & Administrative Expenses / Gross Margin 119.88% 92.03% 91.76% 84.13%
Advertising Expenses / Gross Margin 0.00% 0.00% 0.00% 3.06%
Profit Before Interest and Taxes / Gross Margin -20.35% 10.11% 10.63% 2.36%
Current Ratio 3.49 4.82 6.78 1.76
Quick Ratio 3.49 4.82 6.78 1.49
Total Debt to Total Assets 78.54% 60.38% 43.74% 5.71%
Pre-tax Return on Net Worth -287.86% 76.82% 62.47% 55.31%
Pre-tax Return on Assets -61.78% 30.44% 35.15% 12.78%
Net Profit Margin -22.91% 6.01% 6.72% n.a
Return on Equity -287.86% 53.77% 43.73% n.a
Accounts Receivable Turnover 3.34 3.34 3.34 n.a
Collection Days 54 90 97 n.a
Accounts Payable Turnover 11.00 12.17 12.17 n.a
Payment Days 28 29 28 n.a
Total Asset Turnover 2.70 3.55 3.66 n.a
Debt to Net Worth 3.66 1.52 0.78 n.a
Current Liabilities to Total Liabilities 0.33 0.32 0.33 n.a
Net Working Capital $55,383 $74,767 $103,672 n.a
Interest Coverage -7.94 6.60 10.29 n.a
Assets to Sales 0.37 0.28 0.27 n.a
Current Debt to Total Assets 26% 20% 14% n.a
Acid Test 1.16 0.74 1.03 n.a
Sales to Net Worth 12.57 8.95 6.51 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Reviewing the provided text, we can remove several redundant phrases to make the content more concise and impactful. Here is the revised text:

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% 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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss:

Sales $6,000 $6,000 $6,000 $6,000 $13,000 $13,000 $20,000 $41,000 $27,000 $23,000 $27,000 $43,000

Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Costs of Sales $500 $500 $500 $500 $500 $500 $500 $700 $700 $700 $700 $700 $700

Total Cost of Sales $500 $500 $500 $500 $500 $500 $500 $700 $700 $700 $700 $700 $700

Gross Margin $5,500 $5,500 $5,500 $5,500 $12,500 $12,500 $19,500 $40,300 $26,300 $22,300 $26,300 $42,300

Gross Margin % 91.67% 91.67% 91.67% 91.67% 96.15% 96.15% 97.50% 98.29% 97.41% 96.96% 97.41% 98.37%

Expenses:

Payroll $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

Sales and Marketing and Other Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Depreciation $166 $166 $166 $166 $166 $166 $166 $166 $166 $166 $166 $166 $174

Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Payroll Taxes 15% $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250

Travel 15% $1,200 $3,000 $1,000 $2,000 $2,000 $3,000 $2,000 $1,000 $2,000 $3,000 $1,000 $3,000

Other $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Total Operating Expenses $21,766 $23,566 $21,566 $22,566 $22,566 $23,566 $22,566 $21,566 $22,566 $23,566 $21,566 $23,574

Profit Before Interest and Taxes ($16,266) ($18,066) ($16,066) ($17,066) ($10,066) ($11,066) ($3,066) $18,734 $3,734 ($1,266) $4,734 $18,726

EBITDA ($16,100) ($17,900) ($15,900) ($16,900) ($9,900) ($10,900) ($2,900) $18,900 $3,900 ($1,100) $4,900 $18,900

Interest Expense $503 $497 $492 $486 $481 $475 $511 $506 $500 $495 $489 $483

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($16,769) ($18,563) ($16,558) ($17,552) ($10,547) ($11,541) ($3,577) $18,228 $3,234 ($1,761) $4,245 $18,243

Net Profit/Sales -279.48% -309.39% -275.96% -292.54% -81.13% -88.78% -17.89% 44.46% 11.98% -7.65% 15.72% 42.42%

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: $1,500 $1,500 $1,500 $1,500 $3,250 $3,250 $5,000 $10,250 $6,750 $5,750 $6,750 $10,750

Cash from Receivables: $0 $150 $4,500 $4,500 $4,500 $4,675 $9,750 $9,925 $15,525 $30,400 $20,150 $17,350

Subtotal Cash from Operations: $1,500 $1,650 $6,000 $6,000 $7,750 $7,925 $14,750 $20,175 $22,275 $36,150 $26,900 $28,100

Additional Cash Received:

Sales Tax, VAT, HST/GST Received: 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing: $0 $0 $0 $0 $0 $0 $5,000 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free): $0 $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 $0

Sales of Other Current Assets: $0 $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 $0

New Investment Received: $0 $0 $0 $0 $0 $0 $1,500 $1,500 $0 $0 $0 $0 $0

Subtotal Cash Received: $1,500 $1,650 $6,000 $6,000 $7,750 $7,925 $21,250 $21,675 $22,275 $36,150 $26,900 $28,100

Expenditures:

Expenditures from Operations:

Cash Spending: $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

Bill Payments: $3,253 $7,663 $9,330 $7,425 $8,386 $8,414 $9,343 $8,384 $7,639 $8,633 $9,528 $7,655

Subtotal Spent on Operations: $18,253 $22,663 $24,330 $22,425 $23,386 $23,414 $24,343 $23,384 $22,639 $23,633 $24,528 $22,655

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: $666 $666 $666 $666 $666 $666 $666 $666 $666 $666 $666 $666

Other Liabilities Principal Repayment: $0 $0 $0 $0

Sales Forecast
Environmental nonprofits 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $9,000 $24,000
Youth development nonprofits 0% $0 $0 $0 $0 $0 $2,000 $4,000 $4,000 $5,000 $5,000 $6,000 $7,000
Cultural nonprofits 0% $0

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