Automotive Repair – Sales – Valet Business Plan

Mad Keen Motors is a family-owned business located in Backwater Downs, a suburb of London. It has been under the ownership of the Keen family for 35 years and has grown from a single mechanical repair shop to five locations that deal with body and mechanical repairs, vehicle storage and towing, washing and valeting, and used car sales.

This plan is an internal document, outlining the effects of adding a website to the company. The Mad Keen Motors website will act as an additional customer service element for all our garages, offering advice on car maintenance, information about our services, staff, and location, and discount offers for website visitors on featured repairs and maintenance.

Our current customer service is excellent but requires potential customers to actively contact the company to learn about us. Most of our new business comes from referrals from current satisfied customers. We hope to make the referral process easier by encouraging existing customers to point out our website to their friends, colleagues, neighbors, and family members, building familiarity with our company long before they need emergency car care or consider buying another car. The "advice" section will establish customers’ trust in our expertise, as will our affiliation with nationally-syndicated car experts.

By helping local customers help themselves, Mad Keen hopes to build trust and relationships with existing and potential customers.

1.1 Mission

Mad Keen Motors provides excellent automotive care and service to all our customers, whether they need to buy a used car, contract major bodywork, or get a simple wash and wax.

1.2 Keys to Success

The keys to the company’s website success will be:

  1. Compiling an extensive and thorough listing of questions and answers to encourage customers to return to the site whenever they have a problem with their cars.
  2. Providing additional expert advice for unanswered questions in a timely and thorough manner.
  3. Offering web-based promotions to encourage customers to book cars into the garage through the website.
  4. Communicating the site’s existence to local businesses and residents.
  5. Getting existing customers to recommend the website to others.

1.3 Objectives

The objectives of the Mad Keen Motors website are:

  1. To drive traffic from the website to the garage.
  2. To expand the community of Mad Keen Motors customers.
  3. To provide customers with a substantial list of questions and answers regarding typical car repairs.
  4. To allow convenient bookings for service and repairs.

Automotive Repair Sales Valet Business Plan Example

Company Summary:

Mad Keen Motors is a family-owned business in Backwater Downs, London. Owned by the Keen family for 35 years, it has expanded from one repair shop to five locations offering body and mechanical repairs, vehicle storage and towing, washing and valeting, and used car sales.

2.1 Company History:

Mad Keen Motors has been successful, with annual net profits surpassing £30,000 for the past two years. We reduced the marketing budget last year, resulting in a slight sales decline. To compensate, we allocated the saved funds (and more) to create a website, aiming to boost overall sales and net profits. The table only presents last year’s performance.

Automotive Repair Sales Valet Business Plan Example

Past Performance:

FY 2003 FY 2004 FY 2005

Sales £0 £0 £798,000

Gross Margin £0 £0 £767,853

Gross Margin % 0.00% 0.00% 96.22%

Operating Expenses £0 £0 £695,820

Inventory Turnover 0.00 0.00 5.01

Balance Sheet:

FY 2003 FY 2004 FY 2005

Current Assets:

Cash £0 £0 £203,488

Inventory £0 £0 £12,040

Other Current Assets £0 £0 £70,000

Total Current Assets £0 £0 £285,528

Long-term Assets:

Long-term Assets £0 £0 £1,250,000

Accumulated Depreciation £0 £0 £15,000

Total Long-term Assets £0 £0 £1,235,000

Total Assets £0 £0 £1,520,528

Current Liabilities:

Accounts Payable £0 £0 £20,000

Current Borrowing £0 £0 £0

Other Current Liabilities (interest free) £0 £0 £0

Total Current Liabilities £0 £0 £20,000

Long-term Liabilities:

Total Liabilities £0 £0 £770,000

Paid-in Capital £0 £0 £400,000

Retained Earnings £0 £0 £314,488

Earnings £0 £0 £36,040

Total Capital £0 £0 £750,528

Total Capital and Liabilities £0 £0 £1,520,528

Other Inputs:

Payment Days 0 0 30

Products and Services:

Mad Keen Motors offers body and mechanical repairs, vehicle storage and towing, washing and valeting, and used car sales.

Market Analysis Summary:

Mad Keen will target the following market segments with its website:

1. New car owners

2. Older luxury car owners

3. Sports car owners

4. Lifetime owners

5. Buyers

4.1 Market Segmentation:

Mad Keen Motors segments its customers by type of car ownership. We believe that the type of car a person owns says volumes about their driving and therefore their garage requirements.

New car owners: Owners of newer cars are likely not to use the company’s garage repair service. If they have problems with their car, they will return to the dealer where they bought it. However, these owners will bring their cars often to the wash and valet service. The goal with these customers is to promote regular use of the wash and valet service. Eventually, as their warranty runs out, the goal will be to sell them on the efficiency, excellent service, and price competitiveness of Mad Keen Motors’ repair services.

Automotive Repair Sales Valet Business Plan Example

Market Analysis

Market Analysis
2005 2006 2007 2008 2009
New Car Owners 2% 52,000 53,040 54,101 55,183 56,287 2.00%
Sports Car Owner 5% 25,000 26,250 27,563 28,941 30,388 5.00%
Older luxury car owner 10% 30,000 33,000 36,300 39,930 43,923 10.00%
Lifetime Owners 2% 80,000 81,600 83,232 84,897 86,595 2.00%
Used Car Buyers 12% 40,000 44,800 50,176 56,197 62,941 12.00%
Total 5.40% 227,000 238,690 251,372 265,148 280,134 5.40%

4.2 Target Market Segment Strategy

We target owners of older cars or cars in need of maintenance to maximize revenue.

4.3 Service Business Analysis

The garage repair business is fragmented. Major dealerships exist, alongside smaller repair shops like Mad Keen Motors. Dealers target new and used car buyers, while small garages gain customers through word of mouth and emergency car care needs.

4.3.1 Competition and Buying Patterns

Word of mouth is crucial in the car repair business. Mad Keen Motors leads local competition through decades of reliable service. Dealerships face competition as car design becomes more specialized, but small garages like Mad Keen offer lower prices for repair work.

Strategy and Implementation Summary

Due to a limited marketing budget, we will rely on grassroots and viral marketing to promote the website. The business’s narrow geographical focus does not require extensive advertising. We will communicate with neighbors, nearby businesses, and existing customers to spread awareness of the website.

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5.1 Competitive Edge

The website’s competitive advantage includes providing a local service, drawing from 60 years of automobile repair experience, and offering an additional communication channel for customers. The website improves convenience by enabling online bookings and faster customer service.

To develop effective strategies, perform a SWOT analysis of your business using our free guide and template. Learn how to perform a SWOT analysis.

5.2 Marketing Strategy

We will tailor different sections of the website to target each car-owning group identified in the Market Segmentation.

Our marketing strategy involves mailing fliers to existing customers, neighbors, and nearby businesses. The fliers will include a special savings code, providing a 10% discount on the next visit when entered on the website.

5.3 Sales Strategy

We prioritize customer service, maintaining attractive and clean facilities, and preparing prompt repair work estimates. Building trust with customers is crucial since they often shop around for a trustworthy garage.

5.3.1 Sales Forecast

"Standard revenues" represent projected existing revenue streams over the next three years. The website is expected to contribute approximately 2.5% of monthly sales by the end of 2006, increasing to 4% by the end of 2008.

Automotive Repair Sales Valet Business Plan Example

Automotive Repair Sales Valet Business Plan Example

Sales Forecast

Sales Forecast (FY 2006 – FY 2008)

Sales

– Revenue from all Standard Streams: £804,000, £820,080, £836,482

– Increased Sales through website: £18,360, £23,000, £35,000

– Other: £0, £0, £0

– Total Sales: £822,360, £843,080, £871,482

Direct Cost of Sales (FY 2006 – FY 2008)

– Direct Costs: £32,894, £33,723, £34,859

– Other: £0, £0, £0

– Subtotal Direct Cost of Sales: £32,894, £33,723, £34,859

5.4 Milestones

The following milestones illustrate the timeline for the development and implementation of our website.

Automotive Repair Sales Valet Business Plan Example

Milestones:

Milestone Start Date End Date Budget Manager Department

Draft layout to owners 2/1/2006 2/10/2006 £250 Adrian Consultant

Website Content Developed 2/1/2006 3/1/2006 £0 Mark/Barry Owners

Initial UI Completed 2/10/2006 3/1/2006 £500 Adrian Consultant

Back End Developed 3/1/2006 3/15/2006 £700 Adrian Consultant

Design Approved 3/16/2006 3/20/2006 £0 Mark/Barry Owners

Graphics & Logos Completed3/20/2006 3/30/2006 £0 Elisabeth Admin

BETA Complete 3/20/2006 3/30/2006 £500 Adrian Consultant

User Testing 4/1/2006 4/7/2006 £200 Adrian Consultant

Necessary Changes 4/7/2006 4/11/2006 £200 Adrian Consultant

Site Launch 4/12/2006 4/12/2006 £0 Adrian Consultant

Totals £2,350

Web Plan Summary:

The development of the website is championed by Mark Keen, co-owner of Mad Keen Motors. He will manage the site’s development and work closely with Adrian Monkey on design and creation. He will also handle promotions and maintain the "Ask the Mechanic" section.

Adrian Monkey, the consultant, will handle most of the site development. He will be paid a fee for each stage of development and later receive a monthly retainer for site maintenance.

Barry Keen and Mark will collaborate on developing the content section that addresses typical car problems and maintenance tips.

Website Demographics Strategy:

The website will focus on the first three segments and target people in the local area who are interested in moving into these categories. It will provide information on buying used cars as well as links to sites with new car reviews and pricing information.

Traffic Forecast:

Based on research of other local service websites and the size of the potential market in the Backwater Downs area with Internet presence, a conservative estimate of monthly page views and unique user sessions has been created.

Website Marketing Strategy:

The website aims to provide information about cars and improve customer service through an online booking database. Key sections of the website include a Question and Answer section, an Ask the Mechanic section, a buyer’s guide, and links to car review information.

Strategic Internet Alliances:

Mad Keen Motors relies on its alliance with Adrian Monkey to maintain and update the website.

Business Model:

The website’s goal is to increase customer satisfaction and retention levels by 10%. It also aims to attract customers in the Backwater Downs area and increase sales by 7-10% over the next year.

Site Positioning:

The website will provide sports car owners with tips on car maintenance and solutions provided by the local garage. It will also offer personal service to older luxury car owners and provide online resources for buyers searching for information on used cars.

Development Requirements:

The website will be built using ColdFusion, SQL, and HTML technologies. It will have a home page, sections for Q&A and booking, and user car information.

Technical Specifications:

The user interface will be simple and professional to accommodate users with slower Internet connections. The front end will focus on easy navigation, creating interest, displaying content efficiently, and encouraging user interaction. The back end will have functionality for users to send emails for appointments and expert advice.

Resource Requirements:

The development of the website will be outsourced to consultant Adrian Monkey. The website’s content will be developed by the company owners and the secretary.

Future Development:

Future development plans will be assessed after the website has been launched and user tested. There may be additions such as an online repair booking feature.

Management Summary:

Mad Keen Motors is a family business. Mark Keen is responsible for marketing and advertising, employee training, and personnel issues. Barry Keen is the head mechanic. Elisabeth Keen handles the financial aspects of the business.

Personnel Plan:

Mad Keen Motors employs ten mechanics and eight other full-time workers in various roles.

Financial Plan:

Website expenses are projected to be £6,200 over the next year for development and maintenance. Revenues are expected to increase by £18,360 in the next year due to the website’s impact.

Break-even Analysis:

The break-even analysis shows the point at which the company’s sales equal its expenses with the website in place.

Automotive Repair Sales Valet Business Plan Example

Break-even Analysis

Monthly Revenue Break-even: £40,547

Assumptions:

– Average Percent Variable Cost: 4%

– Estimated Monthly Fixed Cost: £38,925

Projected Profit and Loss

This table outlines additions to the standard operating expenses for developing and maintaining the website. Detailed monthly numbers can be found in the appendix.

Automotive Repair Sales Valet Business Plan Example

Automotive Repair Sales Valet Business Plan Example

Automotive Repair Sales Valet Business Plan Example

Automotive Repair Sales Valet Business Plan Example

Pro Forma Profit and Loss

FY 2006 FY 2007 FY 2008

Sales £822,360 £843,080 £871,482

Direct Cost of Sales £32,894 £33,723 £34,859

Other Costs of Sales £0 £0 £0

Total Cost of Sales £32,894 £33,723 £34,859

Gross Margin £789,466 £809,357 £836,622

Gross Margin % 96.00% 96.00% 96.00%

Expenses

Payroll £402,000 £405,000 £407,000

Other Expense Account Name £0 £0 £0

Depreciation £4,800 £4,800 £4,800

Standard Operating Expenses £0 £19,000 £19,600

Website Infrastructure £0 £0 £0

Website Development £0 £0 £0

Website Maintenance £0 £1,500 £1,500

Expensed Equipment £0 £2,000 £1,200

Payroll Taxes (National Insurance, etc.) £60,300 £60,750 £61,050

Other £0 £0 £0

Total Operating Expenses £467,100 £470,550 £472,850

Profit Before Interest and Taxes £322,366 £338,807 £363,772

EBITDA £327,166 £343,607 £368,572

Interest Expense £74,800 £73,600 £71,200

Taxes Incurred £74,270 £79,562 £87,772

Net Profit £173,296 £185,645 £204,801

Net Profit/Sales 21.07% 22.02% 23.50%

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8.4 Projected Cash Flow

Mad Keen Motors is in a strong cash position right now and can afford the small expenses to start up the website. The table and chart below show our projected cash flow and cash balance.

Automotive Repair Sales Valet Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
FY 2006 FY 2007 FY 2008
Cash Received
Cash from Operations
Cash Sales £822,360 £843,080 £871,482
Subtotal Cash from Operations £822,360 £843,080 £871,482
Additional Cash Received
Sales Tax, VAT, HST/GST Received £0 £0 £0
New Current Borrowing £0 £0 £0
New Other Liabilities (interest-free) £0 £0 £0
New Long-term Liabilities £0 £0 £0
Sales of Other Current Assets £0 £0 £0
Sales of Long-term Assets £0 £0 £0
New Investment Received £0 £0 £0
Subtotal Cash Received £822,360 £843,080 £871,482
Expenditures FY 2006 FY 2007 FY 2008
Expenditures from Operations
Cash Spending £402,000 £405,000 £407,000
Bill Payments £233,402 £246,915 £254,378
Subtotal Spent on Operations £635,402 £651,915 £661,378
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out £0 £0 £0
Principal Repayment of Current Borrowing £0 £0 £0
Other Liabilities Principal Repayment £0 £0 £0
Long-term Liabilities Principal Repayment £2,000 £24,000 £24,000
Purchase Other Current Assets £0 £0 £0
Purchase Long-term Assets £0 £0 £0
Dividends £0 £0 £0
Subtotal Cash Spent £637,402 £675,915 £685,378
Net Cash Flow £184,958 £167,165 £186,103
Cash Balance £388,446 £555,611 £741,714

Projected Balance Sheet

8.5 Projected Balance Sheet

Our Net Worth will continue to grow as we pay off the mortgage for the two newest Mad Keen Motors locations.

Pro Forma Balance Sheet
FY 2006 FY 2007 FY 2008
Assets
Current Assets
Cash £388,446 £555,611 £741,714
Inventory £2,748 £2,817 £2,912
Other Current Assets £70,000 £70,000 £70,000
Total Current Assets £461,194 £628,428 £814,626
Long-term Assets
Long-term Assets £1,250,000 £1,250,000 £1,250,000
Accumulated Depreciation £19,800 £24,600 £29,400
Total Long-term Assets £1,230,200 £1,225,400 £1,220,600
Total Assets £1,691,394 £1,853,828 £2,035,226
Liabilities and Capital FY 2006 FY 2007 FY 2008
Current Liabilities
Accounts Payable £19,570 £20,359 £20,957
Current Borrowing £0 £0 £0
Other Current Liabilities £0 £0 £0
Subtotal Current Liabilities £19,570 £20,359 £20,957
Long-term Liabilities £748,000 £724,000 £700,000
Total Liabilities £767,570 £744,359 £720,957
Paid-in Capital £400,000 £400,000 £400,000
Retained Earnings £350,528 £523,824 £709,469
Earnings £173,296 £185,645 £204,801
Total Capital £923,824 £1,109,469 £1,314,269
Total Liabilities and Capital £1,691,394 £1,853,828 £2,035,226
Net Worth £923,824 £1,109,469 £1,314,269

Business Ratios

8.6 Business Ratios

The following table outlines some key ratios from the General Automotive Repair Shop industry. The Industry Profile column provides specific ratios based on the industry.

Ratio Analysis
FY 2006 FY 2007 FY 2008 Industry Profile
Sales Growth 3.05% 2.52% 3.37% 5.37%
Percent of Total Assets
Inventory 0.16% 0.15% 0.14% 8.50%
Other Current Assets 4.14% 3.78% 3.44% 24.67%
Total Current Assets 27.27% 33.90% 40.03% 45.07%
Long-term Assets 72.73% 66.10% 59.97% 54.93%
Total Assets 100.00% 100.00% 100.00

Personnel Plan

Mark Keen, Co-Owner

– Feb: £2,000

– Mar: £2,000

– Apr: £2,000

– May: £2,000

– Jun: £2,000

– Jul: £2,000

– Aug: £2,000

– Sep: £2,000

– Oct: £2,000

– Nov: £2,000

– Dec: £2,000

– Jan: £2,000

Barry Keen, Co-Owner

– Feb: £1,500

– Mar: £1,500

– Apr: £1,500

– May: £1,500

– Jun: £1,500

– Jul: £1,500

– Aug: £1,500

– Sep: £1,500

– Oct: £1,500

– Nov: £1,500

– Dec: £1,500

– Jan: £1,500

Mechanics

– Feb: £20,000

– Mar: £20,000

– Apr: £20,000

– May: £20,000

– Jun: £20,000

– Jul: £20,000

– Aug: £20,000

– Sep: £20,000

– Oct: £20,000

– Nov: £20,000

– Dec: £20,000

– Jan: £20,000

Other Staff

– Feb: £8,500

– Mar: £8,500

– Apr: £8,500

– May: £8,500

– Jun: £8,500

– Jul: £8,500

– Aug: £8,500

– Sep: £8,500

– Oct: £8,500

– Nov: £8,500

– Dec: £8,500

– Jan: £8,500

Elisabeth Keen, Admin

– Feb: £1,500

– Mar: £1,500

– Apr: £1,500

– May: £1,500

– Jun: £1,500

– Jul: £1,500

– Aug: £1,500

– Sep: £1,500

– Oct: £1,500

– Nov: £1,500

– Dec: £1,500

– Jan: £1,500

Total People: 17

Total Payroll: £33,500

Pro Forma Profit and Loss

Sales

– Feb: £67,660

– Mar: £68,000

– Apr: £68,400

– May: £68,700

– Jun: £68,350

– Jul: £68,350

– Aug: £68,350

– Sep: £68,700

– Oct: £69,050

– Nov: £69,400

– Dec: £68,700

– Jan: £68,700

Direct Cost of Sales

– Feb: £2,706

– Mar: £2,720

– Apr: £2,736

– May: £2,748

– Jun: £2,734

– Jul: £2,734

– Aug: £2,734

– Sep: £2,748

– Oct: £2,762

– Nov: £2,776

– Dec: £2,748

– Jan: £2,748

Other Costs of Sales

– Feb: £0

– Mar: £0

– Apr: £0

– May: £0

– Jun: £0

– Jul: £0

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Total Cost of Sales

– Feb: £2,706

– Mar: £2,720

– Apr: £2,736

– May: £2,748

– Jun: £2,734

– Jul: £2,734

– Aug: £2,734

– Sep: £2,748

– Oct: £2,762

– Nov: £2,776

– Dec: £2,748

– Jan: £2,748

Gross Margin

– Feb: £64,954

– Mar: £65,280

– Apr: £65,664

– May: £65,952

– Jun: £65,616

– Jul: £65,616

– Aug: £65,616

– Sep: £65,952

– Oct: £66,288

– Nov: £66,624

– Dec: £65,952

– Jan: £65,952

Gross Margin %: 96.00%

Expenses

Payroll: £33,500

Other Expense Account Name

– Feb: £0

– Mar: £0

– Apr: £0

– May: £0

– Jun: £0

– Jul: £0

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Depreciation

– Feb: £400

– Mar: £400

– Apr: £400

– May: £400

– Jun: £400

– Jul: £400

– Aug: £400

– Sep: £400

– Oct: £400

– Nov: £400

– Dec: £400

– Jan: £400

Standard Operating Expenses

– Feb: £15,000

– Mar: £15,000

– Apr: £15,000

– May: £15,000

– Jun: £15,000

– Jul: £15,000

– Aug: £15,000

– Sep: £15,000

– Oct: £15,000

– Nov: £15,000

– Dec: £15,000

– Jan: £15,000

Website Infrastructure

– Feb: £0

– Mar: £0

– Apr: £0

– May: £350

– Jun: £350

– Jul: £350

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Website Development

– Feb: £600

– Mar: £600

– Apr: £600

– May: £0

– Jun: £0

– Jul: £0

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Website Maintenance

– Feb: £0

– Mar: £0

– Apr: £0

– May: £150

– Jun: £150

– Jul: £150

– Aug: £150

– Sep: £150

– Oct: £150

– Nov: £150

– Dec: £150

– Jan: £150

Expensed Equipment

– Feb: £2,000

– Mar: £0

– Apr: £0

– May: £0

– Jun: £0

– Jul: £0

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Payroll Taxes (National Insurance, etc.): 15%

– Feb: £5,025

– Mar: £5,025

– Apr: £5,025

– May: £5,025

– Jun: £5,025

– Jul: £5,025

– Aug: £5,025

– Sep: £5,025

– Oct: £5,025

– Nov: £5,025

– Dec: £5,025

– Jan: £5,025

Other

– Feb: £0

– Mar: £0

– Apr: £0

– May: £0

– Jun: £0

– Jul: £0

– Aug: £0

– Sep: £0

– Oct: £0

– Nov: £0

– Dec: £0

– Jan: £0

Total Operating Expenses

– Feb: £38,925

– Mar: £38,925

– Apr: £38,925

– May: £38,925

– Jun: £38,925

– Jul: £38,925

– Aug: £38,925

– Sep: £38,925

– Oct: £38,925

– Nov: £38,925

– Dec: £38,925

– Jan: £38,925

Profit Before Interest and Taxes

– Feb: £26,029

– Mar: £26,355

– Apr: £26,739

– May: £27,027

– Jun: £26,691

– Jul: £26,691

– Aug: £26,691

– Sep: £27,027

– Oct: £27,363

– Nov: £27,699

– Dec: £27,027

– Jan: £27,027

EBITDA

– Feb: £26,429

– Mar: £26,755

– Apr: £27,139

– May: £27,427

– Jun: £27,091

– Jul: £27,091

– Aug: £27,091

– Sep: £27,427

– Oct: £27,763

– Nov: £28,099

– Dec: £27,427

– Jan: £27,427

Interest Expense

– Feb: £6,233

– Mar: £6,233

– Apr: £6,233

– May: £6,233

– Jun: £6,233

– Jul: £6,233

– Aug: £6,233

– Sep: £6,233

– Oct: £6,233

– Nov: £6,233

– Dec: £6,233

– Jan: £6,233

Taxes Incurred

– Feb: £5,939

– Mar: £6,037

– Apr: £6,152

– May: £6,238

– Jun: £6,137

– Jul: £6,137

– Aug: £6,137

– Sep: £6,238

– Oct: £6,339

– Nov: £6,440

– Dec: £6,238

– Jan: £6,238

Net Profit

– Feb: £13,857

– Mar: £14,085

– Apr: £14,354

– May: £14,556

– Jun: £14,320

– Jul: £14,320

– Aug: £14,320

– Sep: £14,556

– Oct: £14,791

– Nov: £15,026

– Dec: £14,556

– Jan: £14,556

Net Profit/Sales

– Feb: 20.48%

– Mar: 20.71%

– Apr: 20.99%

– May: 21.19%

– Jun: 20.95%

– Jul: 20.95%

– Aug: 20.95%

– Sep: 21.19%

– Oct: 21.42%

– Nov: 21.65%

– Dec: 21.19%

– Jan: 21.19%

Pro Forma Cash Flow

Cash Received:

– Feb to Jan: Cash Sales of £67,660, £68,000, £68,400, £68,700, £68,350, £68,350, £68,350, £68,700, £69,050, £69,400, £68,700, £68,700

Subtotal Cash from Operations:

– Feb to Jan: £67,660, £68,000, £68,400, £68,700, £68,350, £68,350, £68,350, £68,700, £69,050, £69,400, £68,700, £68,700

Additional Cash Received:

– Feb to Jan: £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0

Subtotal Cash Received:

– Feb to Jan: £67,660, £68,000, £68,400, £68,700, £68,350, £68,350, £68,350, £68,700, £69,050, £69,400, £68,700, £68,700

Expenditures:

Expenditures from Operations:

– Feb to Jan: Cash Spending of £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500, £33,500

Bill Payments:

– Feb to Jan: £20,573, £17,200, £17,299, £17,467, £19,148, £20,116, £20,130, £20,134, £20,262, £20,377, £20,479, £20,217

Subtotal Spent on Operations:

– Feb to Jan: £54,073, £50,700, £50,799, £50,967, £52,648, £53,616, £53,630, £53,634, £53,762, £53,877, £53,979, £53,717

Additional Cash Spent:

– Feb to Jan: £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0

Subtotal Cash Spent:

– Feb to Jan: £56,073, £50,700, £50,799, £50,967, £52,648, £53,616, £53,630, £53,634, £53,762, £53,877, £53,979, £53,717

Net Cash Flow:

– Feb to Jan: £11,587, £17,300, £17,601, £17,733, £15,702, £14,734, £14,720, £15,066, £15,288, £15,523, £14,721, £14,983

Cash Balance:

– Feb to Jan: £215,075, £232,375, £249,976, £267,709, £283,411, £298,145, £312,865, £327,931, £343,219, £358,742, £373,463, £388,446

Pro Forma Balance Sheet

Assets:

Current Assets:

– Feb to Jan: Cash £203,488, £215,075, £232,375, £249,976, £267,709, £283,411, £298,145, £312,865, £327,931, £343,219, £358,742, £373,463, £388,446

– Feb to Jan: Inventory £12,040, £9,334, £6,614, £3,878, £2,748, £2,734, £2,734, £2,734, £2,748, £2,762, £2,776, £2,748, £2,748

– Feb to Jan: Other Current Assets £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000, £70,000

– Feb to Jan: Total Current Assets £285,528, £294,408, £308,988, £323,854, £340,457, £356,145, £370,879, £385,599, £400,679, £415,981, £431,518, £446,211, £461,194

Long-term Assets:

– Feb to Jan: Long-term Assets £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000, £1,250,000

– Feb to Jan: Accumulated Depreciation £15,000, £15,400, £15,800, £16,200, £16,600, £17,000, £17,400, £17,800, £18,200, £18,600, £19,000, £19,400, £19,800

– Feb to Jan: Total Long-term Assets £1,235,000, £1,234,600, £1,234,200, £1,233,800, £1,233,400, £1,233,000, £1,232,600, £1,232,200, £1,231,800, £1,231,400, £1,231,000, £1,230,600, £1,230,200

Total Assets:

– Feb to Jan: £1,520,528, £1,529,008, £1,543,188, £1,557,654, £1,573,857, £1,589,145, £1,603,479, £1,617,799, £1,632,479, £1,647,381, £1,662,518, £1,676,811, £1,691,394

Liabilities and Capital:

Current Liabilities:

– Feb to Jan: Accounts Payable £20,000, £16,624, £16,718, £16,830, £18,478, £19,445, £19,459, £19,459, £19,583, £19,694, £19,805, £19,543, £19,570

– Feb to Jan: Current Borrowing £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0

– Feb to Jan: Other Current Liabilities £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0, £0

– Feb to Jan: Subtotal Current Liabilities £20,000, £16,624, £16,718, £16,830, £18,478, £19,445, £19,459, £19,459, £19,583, £19,694, £19,805, £19,543, £19,570

Long-term Liabilities:

– Feb to Jan: £750,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000, £748,000

Total Liabilities:

– Feb to Jan: £770,000, £764,624, £764,718, £764,830, £766,478, £767,445, £767,459, £767,459, £767,583, £767,694, £767,805, £767,543, £767,570

Paid-in Capital:

– Feb to Jan: £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000, £400,000

Retained Earnings:

– Feb to Jan: £314,488, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528, £350,528

Earnings:

– Feb to Jan: £36,040, £13,857, £27,942, £42,296, £56,851, £71,172, £85,492, £99,812, £114,368, £129,159, £144,185, £158,740, £173,296

Total Capital:

– Feb to Jan: £750,528, £764,385, £778,470, £792,824, £807,379, £821,700, £836,020, £850,340, £864,896, £879,687, £894,713, £909,268, £923,824

Total Liabilities and Capital:

– Feb to Jan: £1,520,528, £1,529,008, £1,543,188, £1,557,654, £1,573,857, £1,589,145, £1,603,479, £1,617,799, £1,632,479, £1,647,381, £1,662,518, £1,676,811, £1,691,394

Net Worth:

– Feb to Jan: £750,528, £764,385, £778,470, £792,824, £807,379, £821,700, £836,020, £850,340, £864,896, £879,687, £894,713, £909,268, £923,824

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