Barney’s Bullpen is a for-profit corporation in North Dakota. We will lease a 15,000 square/ft. facility to offer a central, indoor location for guests to practice baseball and softball skills. The facility will include batting cages, pitching areas, team skills areas, meeting area, equipment rental, & rest area. In addition, Barney’s Bullpen will offer group coaching clinics and one-on-one skills training, as well as facilitate youth league board meetings.

Youth baseball and softball programs have significantly increased in popularity in the past decade. Facilities offering similar amenities draw guests from up to 40 miles away, as long as they provide a safe, clean, state-of-the-art environment for honing skills. Within a 20 mile radius of the proposed facility, there are over 4,000 children in little league baseball, 2,000 in girls softball, 2,500 in adult softball, 300 in High school Baseball/Softball, and 4 colleges. All of these could be regular customers for Barney’s Bullpen.

Parents want to give their children an advantage in organized sports activities. Group coaching alone is not enough to develop the skills required to play at an above average level in baseball and softball. Private coaches and skill trainers are fully booked by eager parents seeking one-on-one training for their child. “Select” baseball and softball leagues are growing in popularity, and advanced skills training is a requirement for participation. This indoor facility will cater to the increasing need for individualized skills training year-round.

Barney’s Bullpen currently has little to no competition in the service area. There is one outdoor batting cage facility located in Cedar Hill, approximately 10 miles away. This facility is closed during inclement weather and has limited utilization during the summer. The next closest facility is in Euless, 20 miles from Duncanville and 40 miles from Waxahatchie. This business was opened two years ago by two youth league coaches who recognized a need for this type of facility. From our personal experience, we found that a two-hour wait was common on winter weekends without reservations. Weeknights did not require reservations for the batting cages, but one-hour waits were common. The team skills areas do require reservations. The indoor competition is open for 53 hours a week, while the outdoor facility has a potential of 50 plus hours a week, depending on weather.

Barney’s Bullpen will provide a quality indoor baseball training environment for committed athletes and amateurs alike. We project 20% facility usage for the first year, with a 25% growth rate in the second year. Barney’s Bullpen is positioned to thrive in the growing sports environment of the Best Southwest area of Dallas county.

1.1 Mission: Barney’s Bullpen will provide a quality indoor baseball training environment for both serious and recreation-minded individuals. The primary goal is to promote baseball fundamentals for all ages, generating a positive revenue stream for continued growth.

1.2 Objectives:

1. Barney’s Bullpen will begin operations in the spring.

2. In the first year, we expect 20% facility usage.

3. For the second year, we project a 25% growth rate.

4. In the third year, we anticipate matching the community growth rate of 15%.

1.3 Keys to Success:

1. Great location.

2. High quality customer service.

3. Contracts with skilled local baseball instructors.

4. Multiple options under one roof to keep customers engaged.

Baseball Batting Cages Business Plan Example

Barney’s Bullpen is a for-profit North Dakota corporation. We will lease a 15,000 square/ft. facility where guests can learn and practice baseball and softball skills. The facility will include batting cages, pitching areas, team skills areas, meeting area, equipment rental, and a rest area. In addition, Barney’s Bullpen will offer group coaching clinics, one-on-one skills training, and youth league board meetings.

Youth baseball and softball programs have become increasingly popular. Facilities with similar amenities draw guests up to 40 miles away if they provide a safe, clean, state-of-the-art facility for honing skills. Within a 20 mile radius, there are 4,000+ children in little league baseball, 2000+ in girls softball, 2500+ in adult softball, 300+ in high school baseball/softball, and 4 colleges. These are potential customers for Barney’s Bullpen.

Parents want to give their children an advantage in organized sports activities. Group coaching is not enough to develop above-average skills for baseball and softball. Private coaches and trainers are fully booked by parents seeking one-on-one training. "Select" baseball and softball leagues require advanced skills training. This indoor facility caters to the increasing need for individualized year-round training.

Barney’s Bullpen has little to no competition in the service area. The closest facility is in Cedar Hill, approximately 10 miles away. This facility is closed during inclement weather and has limited utilization in the summer. The next closest facility is in Euless, 20 miles from Duncanville and 40 miles from Waxahatchie. A two-hour wait is common on winter weekends without reservations. Weeknights require no reservations for the batting cages, but one-hour waits are common. Team skill areas require reservations. The indoor facility is open for 53 hours a week, while the outdoor facility is open potentially for over 50 hours a week, depending on weather.

Barney’s Bullpen will provide a quality indoor baseball training environment for serious athletes and amateur enthusiasts. We project a conservative facility usage of 20% in the first year and a 25% growth rate for the second year. Barney’s Bullpen will flourish in the growing sports environment of the Best Southwest area of Dallas county.

1.1 Mission

Barney’s Bullpen will provide a quality indoor baseball training environment for both serious and recreation-minded individuals. The primary goal is to promote baseball fundamentals of offense and defense for all ages. By focusing on this goal, Barney’s Bullpen will provide a service to the local youth, generating a positive revenue stream for continued growth.

1.2 Objectives

– Barney’s Bullpen will commence operation in the spring.

– In the first year of operation, we expect a conservative 20% usage.

– For the second year, we project a growth rate of 25%.

– For the third year, we expect to match the community growth rate of 15%.

1.3 Keys to Success

– Our great location.

– High quality customer service.

– Contracts with skilled local baseball instructors.

– Multiple options under one roof to keep customers engaged.

Baseball Batting Cages Business Plan Example

Company Summary

Barney’s Bullpen is a for-profit Texas corporation. We will lease a 15,000 square/ft. facility to provide a climate-controlled, well-equipped central location for baseball enthusiasts to learn and practice their skills.

This indoor facility will include:

– Iron Mike hitting lanes.

– Individual lanes with portable mounds for pitching or “L” screens for live hitting practice.

– Utility lanes for various drills.

Additionally, Barney’s Bullpen offers these services:

– Local instructors for clinics.

– Private instructors for personalized hitting and pitching lessons.

– Video analysis for both hitting and pitching.

Due to the growth of youth sports and North Texas’ unpredictable weather, indoor facilities are necessary for our youth to compete with teams that have year-round training access.

2.1 Start-up Summary

We require less than $80,000 of start-up funding to cover opening costs. These costs will be financed through investments and an SBA loan. Details are shown in the following table and chart.

Baseball Batting Cages Business Plan Example

Start-up Requirements

Start-up Expenses

Legal: $0

Advertising: $2,500

Utilities/Deposits: $2,500

Insurance / 1 yr: $10,000

Special use permit: $1,100

Rent Deposit: $6,250

Contractor services: $3,500

Freight Charges: $2,000

Other: $0

Total Start-up Expenses: $27,850

Start-up Assets

Cash Required: $3,000

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Other Current Assets: $11,150

Long-term Assets: $36,000

Total Assets: $50,150

Total Requirements: $78,000

Start-up Funding

Start-up Expenses to Fund: $27,850

Start-up Assets to Fund: $50,150

Total Funding Required: $78,000

Assets

Non-cash Assets from Start-up: $47,150

Cash Requirements from Start-up: $3,000

Additional Cash Raised: $0

Cash Balance on Starting Date: $3,000

Total Assets: $50,150

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $70,000

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $70,000

Capital

Planned Investment

Barney Crouch: $2,000

Jen Crouch: $6,000

Additional Investment Requirement: $0

Total Planned Investment: $8,000

Loss at Start-up (Start-up Expenses): ($27,850)

Total Capital: ($19,850)

Total Capital and Liabilities: $50,150

Total Funding: $78,000

2.2 Company Ownership

Barney’s Bullpen is a Limited Liability Corporation based in North Dakota, owned by Barney and Jen Crouch. The legal name is Barney’s Bullpen, LLC.

Services

Barney’s Bullpen promotes and enhances baseball/softball skills for residents of all ages and genders. Our services include:

– Hitting lanes with Iron Mike pitching machines. These lanes can be rented for $25 per 1/2 hour or $40 per hour. They are also available as coin operated machines, with $1 for 20 pitches. There are 4 lanes for baseball and 2 lanes for softball.

– Utility lanes. These lanes are approximately 14′ x 70′ and can be rented for $25 per 1/2 hour or $40 per hour.

– Private instructions for teams or individuals. The price is based on the formula: 1 hr Lane Rental + Instructor fee. The instructor fees will be determined by the instructor, with 20% retained by Barney’s Bullpen.

– A winter Skills and Drills league for specific age groups. Teams pay a $300 registration fee to participate and compete for awards based on points earned.

– Video analysis of hitting and pitching (target date 2nd year). The estimated cost is $75 for 1/2 hour.

The building’s open layout allows for customization of options for different events. Fees for special events will depend on the number of participants and length of the event. Advertising space on the league websites can be negotiated in lieu of charging fees for league meetings.

Market Analysis Summary

The baseball market in our area is large and growing. From peewee leagues to adult softball to high school teams, North Dakota residents love baseball. Barney’s Bullpen will cater to the following market segments:

– Amateur baseball and softball leagues for children and high school students in 12 cities. There are over 6,000 kids playing baseball/softball in this area, with approximately 1/4 participating in competitive leagues.

– Adult softball leagues. The level of interest from this group is uncertain.

– Serious high school and collegiate athletes seeking off-season training.

Market Segmentation

High School Baseball/Softball Teams: These teams need indoor practice space during the winter months.

Youth Leagues: Our main focus will be on recreational baseball players, who start practicing in late April.

Adult Softball Leagues: We expect to draw mostly from the competitive divisions.

Other potential customers include youth groups at local churches and team building events for area businesses.

Baseball Batting Cages Business Plan Example

Market Analysis:

Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Local High Schools 2% 300 306 312 318 324 1.94%

Area Little Leagues 5% 6,000 6,300 6,615 6,946 7,293 5.00%

Adult Softball leagues 2% 2,500 2,550 2,601 2,653 2,706 2.00%

Total 4.07% 8,800 9,156 9,528 9,917 10,323 4.07%

4.2 Target Market Segment Strategy:

We will initially focus on Classic or Select baseball and high school players. Expanding our focus to include all areas of baseball and softball can be accommodated by the facility. By catering to classic players, we can maximize the advantages of our indoor facility and cater to their desire to improve their skills all year. High school and collegiate teams will provide a stable repeat customer base.

4.2.1 Market Needs:

Parents seek advantages for their children in organized sports activities. Group coaching is insufficient for above-average performance in baseball and softball. Private coaches and skill trainers are in high demand. Skills training is crucial for participants in "Select" baseball and softball leagues. Our indoor facility will meet the increasing need for individualized skills training year-round.

4.3 Service Business Analysis:

Barney’s Bullpen is a service-oriented and entertainment business. Customers seek entertainment and stress relief, as well as serious training. Coaches require meeting places during the off-season, access to various facilities, and private lessons for children. Other potential areas to explore include theme events for church or business groups, dedicated time slots for local professional athletes, or sponsoring tournaments.

Variety of customers and market needs necessitate specific focus, appropriate advertising, hours of operation, and customer service. Separate nights or sections for different age groups or interests will prevent frustration for skilled players and ensure fun for casual players.

4.3.1 Competition and Buying Patterns:

Direct competition is limited, with only one outdoor-only facility in City F, offering six hitting lanes. The only competing indoor facility is 20-40 miles away. Our strategic advantage lies in our location, which is easily accessible to high schoolers and parents, and is near vacant land that may be developed into a baseball/softball complex. We also compete with after-school programs, athletic events, and other entertainment choices. Convincing potential customers that Barney’s Bullpen offers a healthier and more fun alternative will be our challenge.

Our success depends on establishing a loyal clientele who bring their families, friends, colleagues, and peers to Barney’s Bullpen. Local sponsorship and word-of-mouth will be crucial for our reputation in the community.

Strategy and Implementation Summary:

To be successful, we will send email notifications to youth league coaches and make personal contact with high school and college coaches. Quality service, availability, and competitive pricing are essential for meeting our sales forecast.

5.1 Competitive Edge:

Barney’s Bullpen has a major competitive edge as the only facility of its kind within a 20-mile radius. We have established relationships with youth leagues, high schools, and colleges. Our management team has a passion for the sport and enjoys teaching baseball skills.

5.2 Marketing Strategy:

Marketing efforts will vary based on demand throughout the year. In winter, when outdoor activity is restricted, and leagues are not playing, marketing efforts can be reduced. However, during late spring and early summer, maintaining visibility will be important.

Startup Marketing:

– Email notification to local classic coaches.

– Flyers distributed to high school and college coaches.

– Advertisements at local sports businesses and facilities.

– Advertisements in local papers.

– Word-of-mouth.

– Barney’s Bullpen website.

Spring and Summer Marketing:

– Donations to area youth leagues, with discount coupons.

– Spring break and school holiday specials.

– Attending league coaches’ meetings.

– Summer programs, hitting leagues, and clinics.

Fall and Winter Marketing:

– Advertisements in local papers.

– Word-of-mouth.

– Barney’s Bullpen website.

5.3 Sales Strategy:

Sales efforts will target coaches, parents, and players through email and direct contact. Initial sales strategies include incentives such as two-for-one batting tokens, shirts for the first 100 customers, and discount coupons. Continuous sales efforts will vary depending on the time of year.

Sales Strategy:

– Discount membership packages.

– Yearly league donations.

– Spring break and school holiday discounts.

– Trophies for hitting champions.

– Tournament specials with discount coupons.

5.3.1 Sales Forecast:

Sales are expected to peak from October to March, with potential for higher sales due to weather conditions. Sales growth of 10-20% is projected for 2005 and 2006. Credit sales will account for 10% of total sales.

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Direct Cost of Sales includes fees for instructors and league prizes. The facility retains 20% of instructor fees and uses 50% of registration fees for league prizes.

Operating costs for maintenance, repair, and equipment replacement are reflected in the Profit and Loss table.

Baseball Batting Cages Business Plan Example

Baseball Batting Cages Business Plan Example

Sales Forecast

Year 1 Year 2 Year 3

Sales

Iron Mikes $98,226 $117,871 $141,445

Pitching Lanes $52,479 $60,351 $69,403

Hitting league $27,000 $24,000 $24,000

Instructor fees collected $5,900 $6,200 $6,500

Skills & Drills League registration fees $1,800 $1,500 $2,100

Utility Lanes $52,479 $60,351 $69,403

Total Sales $237,884 $270,273 $312,852

Direct Cost of Sales

Year 1 Year 2 Year 3

Skills & Drills League prizes $900 $750 $1,050

Instructor fees paid $4,720 $4,960 $5,200

Row 3 $0 $0 $0

Subtotal Direct Cost of Sales $5,620 $5,710 $6,250

5.4 Milestones

The following milestones are to be used as a roadmap to the success of Barney’s Bullpen. The marketing milestones will be ongoing. While the Internet site will be a useful tool in marketing, it is not critical that it be launched on opening day. The dates given for the Web milestones are optimistic. All other milestones will need to be followed as closely as possible.

Baseball Batting Cages Business Plan Example

Milestones

Milestone Start Date End Date Budget Manager Department

TBD 1/1/2004 1/1/2004 $0 TBD Department

Web link to Leagues 1/15/2004 2/28/2004 $0 Willis Web

Acquire Financing 1/15/2004 2/28/2004 $0 Willis Management

Secure location 1/1/2004 2/28/2004 $0 Willis Management

Order Iron Mikes 2/15/2004 3/1/2004 $0 Willis All

Open for Business 3/1/2004 4/1/2004 $0 Willis All

E-mail Database 3/1/2004 5/1/2004 $0 Willis plus Web Admin Marketing

Contact Leagues & Schools 3/1/2004 5/15/2004 $0 Willis Marketing

Launch Website 4/1/2004 8/1/2004 $0 Web Admin Web

All services operational 9/1/2004 1/1/2005 $0 TBD All

1 year anniversary 3/1/2005 4/1/2005 $0 Willis All

Totals

Personnel Plan

Personnel Plan Year 1 Year 2 Year 3

Owner $30,000 $32,000 $34,000

Bookkeeper $12,000 $14,000 $14,000

Part time #1 $7,600 $7,700 $7,800

Part time #2 $6,400 $7,700 $7,800

Total People 4 4 4

Total Payroll $56,000 $61,400 $63,600

Financial Plan

The following section outlines the financial plan for Barney’s Bullpen:

– Start-up funding of $78,000 is required. $36,000 is for the purchase of the Iron Mike Pitching equipment and associated netting, control panel, and other required equipment. Rent, utilities, and advertising are the only monthly expenses listed in the start-up requirements. Insurance will be an annual expense.

– The start-up capital will be obtained through a combination of investor contributions ($8,000) and an SBA long-term loan ($70,000).

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices. We recognize that repeat business, weather, economic conditions, and growth of youth sports will determine our success. These reasons are why we have chosen a conservative revenue stream.

Two of the more important underlying assumptions are:

– We assume a strong economy, without major recession.

– We assume that there are no unforeseen changes in the growth of classic baseball participation to make our services immediately obsolete.

General Assumptions Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 8.00% 8.00% 8.00%

Long-term Interest Rate 8.00% 8.00% 8.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0

Break-even Analysis

The following chart and table summarize our break-even analysis. This projection is based on very conservative estimates of revenue.

Baseball Batting Cages Business Plan Example

Break-even Analysis

Monthly Revenue Break-even: $14,659

Assumptions:

– Average Percent Variable Cost: 2%

– Estimated Monthly FixedCost: $14,313

Projected Profit and Loss:

Our projected profit and loss is shown in the following table. Sales increase from over $200K in the first year to over $300K in the third year. We forecast a profit in the first year with a relatively low sales forecast.

We are projecting very conservatively. Detailed monthly projections are included in the appendices.

Baseball Batting Cages Business Plan Example

Baseball Batting Cages Business Plan Example

Baseball Batting Cages Business Plan Example

Baseball Batting Cages Business Plan Example

Pro Forma Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $237,884 $270,273 $312,852
Direct Cost of Sales $5,620 $5,710 $6,250
Other Costs of Sales $0 $0 $0
Total Cost of Sales $5,620 $5,710 $6,250
Gross Margin $232,264 $264,563 $306,602
Gross Margin % 97.64% 97.89% 98.00%
Expenses
Payroll $56,000 $61,400 $63,600
Marketing/Promotion $4,600 $5,500 $6,000
Depreciation $5,143 $5,143 $5,143
Rent $86,004 $88,000 $92,000
Utilities $6,000 $6,000 $6,000
Insurance $0 $10,000 $10,000
Payroll Taxes $0 $0 $0
Equipment Repair and Maintenance $3,034 $4,225 $4,858
Ball and bat replacement $1,050 $1,811 $2,082
Other (incl. property taxes) $9,925 $10,000 $10,000
Total Operating Expenses $171,755 $192,078 $199,683
Profit Before Interest and Taxes $60,509 $72,485 $106,919
EBITDA $65,652 $77,628 $112,062
Interest Expense $5,250 $4,200 $3,080
Taxes Incurred $16,578 $20,485 $31,152
Net Profit $38,681 $47,799 $72,687
Net Profit/Sales 16.26% 17.69% 23.23%

8.4 Projected Cash Flow

The following section shows the cash flow projections for Barney’s Bullpen for the first three years. These include repayment of the principal on a 5-year $70,000 SBA loan in equal monthly payments of $1,167, which we start repaying after the first three months of operations.

Cash flow projections are critical to our success. Our cash balance will reach its minimum in mid-2004, during a low season in the first year of operations. We believe that if we manage our cash wisely during this critical period, the following months’ cash flows should be sufficient to cover all our expenses.

The annual cash flow figures are included here, and the more important detailed monthly numbers are included in the appendices.

Baseball Batting Cages Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $214,096 $243,246 $281,567
Cash from Receivables $18,150 $26,260 $30,276
Subtotal Cash from Operations $232,245 $269,505 $311,843
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 $232,245 $269,505 $311,843
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $56,000 $61,400 $63,600
Bill Payments $124,245 $156,929 $170,149
Subtotal Spent on Operations $180,245 $218,329 $233,749
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 $10,500 $14,000 $14,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $4,600 $7,200
Subtotal Cash Spent $190,745 $236,929 $254,949
Net Cash Flow $41,500 $32,576 $56,894
Cash Balance $44,500 $77,076 $133,970

Projected Balance Sheet

The balance sheet in the following table shows conservative growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Cash $44,500 $77,076 $133,970
Accounts Receivable $5,639 $6,406 $7,416
Other Current Assets $11,150 $11,150 $11,150
Total Current Assets $61,289 $94,633 $152,536
Long-term Assets
Long-term Assets $36,000 $36,000 $36,000
Accumulated Depreciation $5,143 $10,286 $15,429
Total Long-term Assets $30,857 $25,714 $20,571
Total Assets $92,146 $120,347 $173,108
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $13,815 $12,816 $14,089
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $13,815 $12,816 $14,089
Long-term Liabilities $59,500 $45,500 $31,500
Total Liabilities $73,315 $58,316 $45,589
Paid-in Capital $8,000 $8,000 $8,000
Retained Earnings ($27,850) $6,231 $46,831
Earnings $38,681 $47,799 $72,687
Total Capital $18,831 $62,031 $127,518
Total Liabilities and Capital $92,146 $120,347 $173,108
Net Worth $18,831 $62,031 $127,518
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Business Ratios

The following table shows the projected businesses ratios along with comparisons for our industry, baseball batting cages (SIC Code 7999.9903). We expect to maintain healthy ratios for profitability, risk, and return.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 13.62% 15.75% 5.73%
Percent of Total Assets
Accounts Receivable 6.12% 5.32% 4.28% 7.08%
Other Current Assets 12.10% 9.26% 6.44% 33.26%
Total Current Assets 66.51% 78.63% 88.12% 43.21%
Long-term Assets
Long-term Assets 33.49% 21.37% 11.88% 56.79%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 14.99% 10.65% 8.14% 21.91%
Long-term Liabilities 64.57% 37.81% 18.20% 28.81%
Total Liabilities 79.56% 48.46% 26.34% 50.72%
Net Worth 20.44% 51.54% 73.66% 49.28%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 97.64% 97.89% 98.00% 100.00%
Selling, General & Administrative Expenses 63.80% 76.90% 76.28% 76.43%
Advertising Expenses 2.16% 1.90% 1.64% 2.77%
Personnel Plan
Owner 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Bookkeeper 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Part time #1 0% $600 $600 $700 $400 $400 $400 $600 $700 $800 $800 $800 $800
Part time #2 0% $600 $600 $700 $0 $0 $0 $600 $700 $800 $800 $800 $800
Total People 4 4 4 3 3 3 4 4 4 4 4 4
Total Payroll $4,700 $4,700 $4,900 $3,900 $3,900 $3,900 $4,700 $4,900 $5,100 $5,100 $5,100 $5,100
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Long-term Interest Rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
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%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Sales $24,680 $18,048 $11,416 $5,908 $11,908 $8,908 $17,416 $24,980 $31,080 $26,080 $32,180 $25,280
Direct Cost of Sales $160 $240 $320 $320 $320 $320 $320 $400 $480 $1,010 $1,090 $640
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $160 $240 $320 $320 $320 $320 $320 $400 $480 $1,010 $1,090 $640
Gross Margin $24,520 $17,808 $11,096 $5,588 $11,588 $8,588 $17,096 $24,580 $30,600 $25,070 $31,090 $24,640
Gross Margin % 99.35% 98.67% 97.20% 94.58% 97.31% 96.41% 98.16% 98.40% 98.46% 96.13% 96.61% 97.47%
Expenses
Payroll $4,700 $4,700 $4,900 $3,900 $3,900 $3,900 $4,700 $4,900 $5,100 $5,100 $5,100 $5,100
Marketing/Promotion $1,200 $500 $500 $100 $750 $100 $100 $100 $250 $250 $250 $500
Depreciation $429 $429 $429 $429 $429 $429 $429 $429 $429 $429 $429 $429
Rent $5,734 $5,734 $5,734 $5,734 $5,734 $5,734 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment Repair and Maintenance $306 $306 $138 $69 $295 $69 $138 $306 $306 $367 $367 $367
Ball and bat replacement 15% $122 $122 $55 $28 $28 $28 $55 $122 $122 $122 $122 $122
Other (incl. property taxes) $850 $825 $825 $825 $825 $825 $825 $825 $825 $825 $825 $825
Total Operating Expenses $13,841 $13,116 $13,080 $11,584 $12,460 $11,584 $15,346 $15,782 $16,132 $16,193 $16,193 $16,443
Profit Before Interest and Taxes $10,679 $4,692 ($1,984) ($5,996) ($872) ($2,996) $1,750 $8,798 $14,468 $8,877 $14,897 $8,197
EBITDA $11,108 $5,121 ($1,556) ($5,567) ($444) ($2,567) $2,178 $9,227 $14,897 $9,305 $15,325 $8,625
Interest Expense $467 $467 $467 $459 $451 $443 $436 $428 $420 $412 $404 $397
Taxes Incurred $3,064 $1,268 ($735) ($1,936) ($397) ($1,032) $394 $2,511 $4,214 $2,539 $4,348 $2,340
Net Profit $7,149 $2,958 ($1,716) ($4,518) ($926) ($2,408) $920 $5,859 $9,834 $5,925 $10,145 $5,460
Net Profit/Sales 28.97% 16.39% -15.03% -76.48% -7.78% -27.03% 5.28% 23.46% 31.64% 22.72% 31.52% 21.60%

Pro Forma Cash Flow

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 Sales $22,212 $16,243 $10,274 $5,317 $10,717 $8,017 $15,674 $22,482 $27,972 $23,472 $28,962 $22,752
Cash from Receivables $0 $82 $2,446 $1,783 $1,123 $611 $1,181 $919 $1,767 $2,518 $3,091 $2,628
Subtotal Cash from Operations $22,212 $16,325 $12,720 $7,100 $11,840 $8,628 $16,855 $23,401 $29,739 $25,990 $32,053 $25,380
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 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $22,212 $16,325 $12,720 $7,100 $11,840 $8,628 $16,855 $23,401 $29,739 $25,990 $32,053 $25,380
Expenditures
Expenditures from Operations
Cash Spending $4,700 $4,700 $4,900 $3,900 $3,900 $3,900 $4,700 $4,900 $5,100 $5,100 $5,100 $5,100
Bill Payments $413 $12,321 $9,890 $7,746 $6,178 $8,455 $7,133 $11,448 $13,856 $15,681 $14,689 $16,433
Subtotal Spent on Operations $5,113 $17,021 $14,790 $11,646 $10,078 $12,355 $11,833 $16,348 $18,956 $20,781 $19,789 $21,533
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $5,113 $17,021 $14,790 $12,813 $11,245 $13,522 $13,000 $17,515 $20,123 $21,948 $20,956 $22,700
Net Cash Flow $17,099 ($696) ($2,069) ($5,713) $596 ($4,894) $3,856 $5,886 $9,616 $4,042 $11,098 $2,681
Cash Balance $20,099 $19,403 $17,333 $11,620 $12,216 $7,322 $11,178 $17,064 $26,679 $30,722 $41,820 $44,500

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