Luna’s is a new convenience store near Aspen Estates in Jenniville. Aspen Estates targets high-income individuals and young couples, making it a prime opportunity for the store. Household incomes in this area range from $85,000 to $100,000, and Luna’s is the only food store within a two-mile radius of the housing estate.

Owned by Thomas and Heidi Renner, Luna’s benefits from their perfect business partnership. With fifteen years of retail food industry experience, Heidi handles day-to-day operations, while Thomas, a certified public accountant, manages the financial side of the business.

Luna’s offers a variety of fresh, organic produce, staples, packaged foods, alcoholic and nonalcoholic drinks, prepackaged meals, pastries, newspapers, pet foods, medicines, and health and beauty items. Additionally, a small cafe rental within the store provides seating for approximately 20 people, serving breakfast, lunch, coffee, tea, cold drinks, and pastries.

Luna’s competitive edge lies in its location, customer service focus, and the expertise of its owners.

Convenience Store Cafe Business Plan Example

Luna’s Convenience Store aims to provide packaged and fresh foods, fast food, soft drinks, beer, cigarettes, groceries, and selected nonfood items to residents of Aspen Estates and surrounding neighborhoods. Our goal is to offer fair prices to customers while generating a healthy profit for the owners.

Our objectives are as follows:

1. Establish Luna’s as the preferred convenience store for the residents of Aspen Estates and neighboring areas.

2. Break even by the end of the first year.

3. Achieve a net profit of 5% within three years.

To achieve success, we must:

1. Convince Aspen Estates residents that Luna’s is their go-to convenience store.

2. Maintain an inventory turnover rate of 15 – 20 times per year.

3. Provide a wide variety of groceries, food, and household items.

Company Summary:

Luna’s Convenience Store is a start-up venture occupying a leased property on Main Street in Jenniville, just 30 yards from the main entrance of Aspen Estates. The store is part of a newly constructed building with five other storefronts, including a coffee shop, gourmet chocolate shop, gift shop, and bookstore. Luna’s is owned by Thomas and Heidi Renner.

Start-up Summary:

Funding for the enterprise will come from a combination of owner investment and bank funding. The main start-up cost will be $100,000 for inventory. Additionally, $30,000 will be allocated for fixtures and fittings. As the building is new, no maintenance is required before move-in.

Convenience Store Cafe Business Plan Example

Start-up Requirements

Legal: $500

Stationery etc.: $100

Consultants: $500

Insurance: $1,000

Rent: $3,000

Expensed Equipment: $1,300

Other: $500

Total Start-up Expenses: $6,900

Start-up Assets

Cash Required: $58,100

Start-up Inventory: $100,000

Other Current Assets: $5,000

Long-term Assets: $30,000

Total Assets: $193,100

Total Requirements: $200,000

Start-up Funding

Start-up Expenses to Fund: $6,900

Start-up Assets to Fund: $193,100

Total Funding Required: $200,000

Assets

Non-cash Assets from Start-up: $135,000

Cash Requirements from Start-up: $58,100

Additional Cash Raised: $0

Cash Balance on Starting Date: $58,100

Total Assets: $193,100

Liabilities and Capital

Liabilities

Current Borrowing: $50,000

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $50,000

Capital

Planned Investment

Investor 1: $150,000

Other: $0

Additional Investment Requirement: $0

Total Planned Investment: $150,000

Loss at Start-up (Start-up Expenses): ($6,900)

Total Capital: $143,100

Total Capital and Liabilities: $193,100

Total Funding: $200,000

Company Ownership

The company is incorporated in Delaware and is owned by Thomas Renner and his wife Heidi. Funding for start-up will come from the Renner’s own savings, and a $50,000 bank loan.

Before starting the company, Heidi Renner worked as a manager of a local supermarket, and has over 15 years of experience in this industry at management levels. Thomas is a certified CPA and ran his own practice for ten years before launching the concept of Luna’s.

Products

The store will provide typical items found in any convenience store, but items will be “higher end” than many convenience stores. Luna’s will offer fresh, organic produce, staples, packaged foods, drinks (alcoholic and nonalcoholic), prepackaged fresh meals and pastries, newspapers, pet foods, medicines, health and beauty items, etc. In addition, Luna’s will rent a small section of the store to a cafe that will provide breakfast, lunch, coffee, tea, cold drinks, and pastries. There will be seating for approximately 20 people.

Market Analysis Summary

The Aspen Estates is a newly built apartment complex in the western suburbs of Jenniville. Construction is scheduled to continue for the next eight months, but 350 condominiums and townhouses are already complete and approximately another 175 are scheduled for completion in the next eight months.

All of the residences are for sale, so it is expected that the household income of the residents of Aspen Estates will be higher than the national average, estimated at $85,000 – $100,000. Many of the residents are workers at seven large technology companies located within a 20-mile radius of the Estates. These workers tend to be young, 25 – 45, and married or living with a partner.

Market Segmentation

The “Yuppies” are young upwardly mobile individuals aged between 23 and 33 with a household income between $55,000 and $80,000. They have very active lives, are health-conscious, and are single or living with a partner.

The “Young Parents” are couples with young families aged 27 – 37. They used to be Yuppies focused on entertainment and fun, but now their main focus is their one to two children. Convenience is important to them.

The “Healthy Middles” have the highest income, ranging from $90,000 to $120,000. They spend much of their time taking care of their children, but their children are old enough to spend the occasional evening alone if their parents want a night out.

The “Healthy Middles” is the smallest market in the Aspen Estates but potentially the most lucrative for Luna’s. This group has an expected growth rate of 5% per year. The Yuppies are the next most lucrative group, as they have smaller household incomes than the “Young Parent” group but have greater disposable income since they have no children.

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The following Market Analysis table includes residents of the Aspen Estates and the surrounding neighborhoods.

Convenience Store Cafe Business Plan Example

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Potential Customers Growth

Yuppies 5% 750 788 827 868 911 4.98%

Young Parents 5% 880 924 970 1,019 1,070 5.01%

Healthy Middles 5% 500 525 551 579 608 5.01%

Total 5.00% 2,130 2,237 2,348 2,466 2,589 5.00%

4.2 Industry Analysis

– The convenience store industry is highly fragmented, with larger players such as 7-11 dominating due to their location and early growth.

– Gross profits are typically 20 – 22%, with net profits.

4.2.1 Competition and Buying Patterns

Convenience stores are small retail outlets, usually 2,000 to 3,000 square feet, selling staple groceries, beer, cigarettes, soft drinks, dairy products, gasoline, and some nonfood items. These stores provide convenience and are often open 24/7.

The typical customer is a blue-collar male aged 18-34. Beer and cigarettes represent about 1/3 of merchandise sales, but Luna’s is targeting yuppies as the professional market grows.

4.3 Target Market Segment Strategy

The key target market segments for Luna’s are those geographically close to the store, with specific income levels and lifestyles. Since the most attractive group has young children, the store will focus on providing products parents regularly need for babies and young children, such as diapers and baby food.

Strategy and Implementation Summary

Luna’s stands out with impressive customer service and a higher-end selection of food and goods compared to typical convenience stores. The store’s competitive edge comes from its prime location in a high-income neighborhood.

– Superior customer service attracts customers.

– Upselling leads to increased sales per customer.

– Marketing to high-end individuals results in higher average sales.

5.1 Competitive Edge

Luna’s competitive edge is its location and being the first to market. It is the closest store to every residence on Aspen Estates, with no other stores offering similar products within a 2-mile radius. New residents will naturally choose Luna’s as their preferred store for small grocery and household purchases.

SWOT analysis can help develop good business strategies.

5.2 Marketing Strategy

Luna’s has access to market research information from the developers of Aspen Estates, providing knowledge of a large portion of its potential market. The high-income group presents a prime opportunity for Luna’s. With its convenient location, the store requires minimal above-the-line advertising.

5.3 Sales Strategy

Luna’s aims to provide a typical convenience store selection along with impulse purchases to increase the average sale per customer. The sales staff will prioritize customer service and always ask if customers found everything they need.

5.3.1 Sales Forecast

The average customer ticket is expected to be $5.50 cents, higher than the industry average of $3.75. This is due to the demographics of the surrounding neighborhoods and the focus on branded goods and organic, healthy foods.

Convenience Store Cafe Business Plan Example

Convenience Store Cafe Business Plan Example

Sales Forecast:

Fresh Foods, Dairy and Drinks: $48,109 (Year 1), $60,136 (Year 2), $69,156 (Year 3)

Packaged Foods: $108,893 (Year 1), $143,739 (Year 2), $169,612 (Year 3)

Hard Goods: $43,378 (Year 1), $54,223 (Year 2), $65,067 (Year 3)

Beer, Wine and Cigarettes: $140,762 (Year 1), $185,806 (Year 2), $224,825 (Year 3)

Rental Income: $12,000 (Year 1), $12,600 (Year 2), $13,230 (Year 3)

Prepackaged Meals: $21,239 (Year 1), $26,336 (Year 2), $30,286 (Year 3)

Total Sales: $374,380 (Year 1), $482,839 (Year 2), $572,176 (Year 3)

Direct Cost of Sales:

Fresh Foods: $24,054 (Year 1), $30,068 (Year 2), $34,578 (Year 3)

Packaged Foods: $14,867 (Year 1), $18,435 (Year 2), $21,200 (Year 3)

Hard Goods: $187,190 (Year 1), $241,419 (Year 2), $286,088 (Year 3)

Drinks (inc. beer and wine): $0 (Year 1), $0 (Year 2), $0 (Year 3)

Prepackaged Meals: $7,216 (Year 1), $9,020 (Year 2), $10,373 (Year 3)

Subtotal Direct Cost of Sales: $233,328 (Year 1), $298,943 (Year 2), $352,240 (Year 3)

5.4 Milestones:

The table below lists program milestones, along with dates, managers, and budgets.

Convenience Store Cafe Business Plan Example

Milestones:

Write Business Plan 1/12/2002 12/31/2002 $0 Thomas/Heidi Management
Form Corporation 1/15/2003 1/15/2003 $0 Thomas Management
Negotiate Lease on Property 1/12/2002 12/31/2002 $0 Thomas Management
Store construction 1/15/2003 2/28/2003 $0 Contractors
Hire Employees 1/2/2002 1/15/2003 $0 Heidi Management
Create Collateral Materials 1/1/2003 1/15/2003 $500 Outside Agency Consultant
Grand Opening 1/3/2003 1/3/2003 $0 Heidi/Thomas Management
Totals $500

Management Summary:

Thomas and Heidi Renner are the owners and managers of Luna’s Convenience Store. They are well qualified to manage the store. Heidi has worked in management at Safeway for fifteen years. She has extensive knowledge of the retail food industry and is passionate about the business. She understands inventory management and has experience dealing with employee issues. Additionally, her position at Safeway has allowed her to build relationships with food vendors.

Thomas, a certified CPA, brings financial expertise to the business. He has dealt with the financial aspects of many small businesses and understands why they fail or succeed.

Personnel Plan:

The table below shows the projected personnel for the next three years. Luna’s aims to reduce turnover by paying higher wages and employing older individuals. The company also strives to keep employees happy.

Personnel Year 1 Year 2 Year 3
Heidi Renner $30,000 $34,000 $38,000
Thomas Renner $18,000 $22,000 $24,000
Cashiers $43,200 $45,000 $48,000
Other $0 $0 $0
Total People 0 0 0
Total Payroll $91,200 $101,000 $110,000

Financial Plan:

1. Growth will be moderate, with steady cash flows.

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2. Minimal marketing will be done, as Luna’s will rely on its convenient location and will not purchase advertising.

3. The company will use tight inventory controls to manage costs.

4. Luna’s expects to achieve higher gross margins than industry averages by targeting women and professionals.

Important Assumptions:

Luna’s does not sell anything on credit. The personnel burden is low because the company employs part-time staff in addition to the owners. Part-time employees do not receive benefits.

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

Break-even Analysis:

The table and chart below illustrate the Break-even Analysis for Luna’s.

Convenience Store Cafe Business Plan Example

Break-even Analysis:

Monthly Revenue Break-even: $33,735.

Assumptions:

Average Percent Variable Cost: 62%.

Estimated Monthly Fixed Cost: $12,710.

7.3 Projected Profit and Loss:

The table and charts below display the Projected Profit and Loss and Gross Margin for Luna’s.

Convenience Store Cafe Business Plan Example

Convenience Store Cafe Business Plan Example

Convenience Store Cafe Business Plan Example

Convenience Store Cafe Business Plan Example

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $374,380 $482,839 $572,176

Direct Cost of Sales $233,328 $298,943 $352,240

Other Costs of Goods $0 $0 $0

Total Cost of Sales $233,328 $298,943 $352,240

Gross Margin $141,052 $183,896 $219,936

Gross Margin % 37.68% 38.09% 38.44%

Expenses

Payroll $91,200 $101,000 $110,000

Sales and Marketing and Other Expenses $2,400 $2,400 $2,400

Depreciation $6,000 $6,000 $6,000

Rent $36,000 $36,000 $36,000

Utilities $6,000 $7,000 $8,000

Insurance $1,800 $1,900 $2,000

Payroll Taxes $9,120 $10,100 $11,000

Other $0 $0 $0

Total Operating Expenses $152,520 $164,400 $175,400

Profit Before Interest and Taxes ($11,468) $19,496 $44,536

EBITDA ($5,468) $25,496 $50,536

Interest Expense $4,805 $4,460 $4,100

Taxes Incurred $0 $4,511 $12,131

Net Profit ($16,273) $10,525 $28,305

Net Profit/Sales -4.35% 2.18% 4.95%

Projected Cash Flow

The following table shows the cash flow totals for three years. The cash flow remains healthy.

Convenience Store Cafe Business Plan Example

Pro Forma Cash Flow:

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $374,380 $482,839 $572,176
Subtotal Cash from Operations $374,380 $482,839 $572,176
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 $374,380 $482,839 $572,176
Expenditures
Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $91,200 $101,000 $110,000
Bill Payments $191,178 $365,820 $427,957
Subtotal Spent on Operations $282,378 $466,820 $537,957
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $3,600 $3,600 $3,600
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $30,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $315,978 $470,420 $541,557
Net Cash Flow $58,402 $12,419 $30,619
Cash Balance $116,502 $128,921 $159,540

Projected Balance Sheet:

7.5 Projected Balance Sheet

The following table is the Projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $116,502 $128,921 $159,540
Inventory $22,460 $28,777 $33,907
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $143,962 $162,698 $198,447
Long-term Assets
Long-term Assets $60,000 $60,000 $60,000
Accumulated Depreciation $6,000 $12,000 $18,000
Total Long-term Assets $54,000 $48,000 $42,000
Total Assets $197,962 $210,698 $240,447
Liabilities and Capital
Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $24,735 $30,545 $35,589
Current Borrowing $46,400 $42,800 $39,200
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $71,135 $73,345 $74,789
Long-term Liabilities $0 $0 $0
Total Liabilities $71,135 $73,345 $74,789
Paid-in Capital $150,000 $150,000 $150,000
Retained Earnings ($6,900) ($23,173) ($12,647)
Earnings ($16,273) $10,525 $28,305
Total Capital $126,827 $137,353 $165,658
Total Liabilities and Capital $197,962 $210,698 $240,447
Net Worth $126,827 $137,353 $165,658

Business Ratios:

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5411, [Convenience Stores, Independent], are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 28.97% 18.50% 2.27%
Percent of Total Assets
Inventory 11.35% 13.66% 14.10% 22.18%
Other Current Assets 2.53% 2.37% 2.08% 26.81%
Total Current Assets 72.72% 77.22% 82.53% 56.12%
Long-term Assets 27.28% 22.78% 17.47% 43.88%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 35.93% 34.81% 31.10% 26.39%
Long-term Liabilities 0.00% 0.00% 0.00% 24.87%
Total Liabilities 35.93% 34.81% 31.10% 51.26%
Net Worth 64.07% 65.19% 68.90% 48.74%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 37.68% 38.09% 38.44% 23.55%
Selling, General & Administrative Expenses 42.02% 35.91% 33.49% 16.21%
Advertising Expenses 0.00% 0.00% 0.00% 0.85%
Profit Before Interest and Taxes -3.06% 4.04% 7.78% 1.02%
Main Ratios
Current 2.02 2.22 2.65 1.68
Quick 1.71 1.83 2.20 0.71
Total Debt to Total Assets 35.93% 34.81% 31.10% 57.28%
Pre-tax Return on Net Worth -12.83% 10.95% 24.41% 4.63%
Personnel Plan
Heidi Renner 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Thomas Renner 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Cashiers 0% $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
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%
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%
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
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Pro Forma Profit and Loss
Sales $21,931 $25,940 $27,731 $33,786 $36,742 $36,066 $32,406 $31,432 $31,906 $31,112 $32,664 $32,665
Direct Cost of Sales $13,412 $16,010 $17,283 $20,902 $23,035 $22,959 $20,502 $19,600 $19,724 $19,221 $20,261 $20,419
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $13,412 $16,010 $17,283 $20,902 $23,035 $22,959 $20,502 $19,600 $19,724 $19,221 $20,261 $20,419
Gross Margin $8,519 $9,930 $10,448 $12,885 $13,707 $13,106 $11,904 $11,832 $12,182 $11,891 $12,402 $12,247
Gross Margin % 38.84% 38.28% 37.68% 38.14% 37.31% 36.34% 36.73% 37.64% 38.18% 38.22% 37.97% 37.49%
Expenses
Payroll $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
Sales and Marketing and Other Expenses $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Depreciation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Payroll Taxes 10% $760 $760 $760 $760 $760 $760 $760 $760 $760 $760 $760 $760
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710 $12,710
Profit Before Interest and Taxes ($4,191) ($2,780) ($2,262) $175 $997 $396 ($806) ($878) ($528) ($819) ($308) ($464)
EBITDA ($3,691) ($2,280) ($1,762) $675 $1,497 $896 ($306) ($378) ($28) ($319) $192 $37
Interest Expense $414 $412 $409 $407 $404 $402 $399 $397 $394 $392 $389 $387
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($4,606) ($3,192) ($2,671) ($232) $593 ($5) ($1,205) ($1,275) ($922) ($1,211) ($697) ($850)
Net Profit/Sales -21.00% -12.31% -9.63% -0.69% 1.61% -0.01% -3.72% -4.06% -2.89% -3.89% -2.

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 from Operations
Cash Sales $21,931 $25,940 $27,731 $33,786 $36,742 $36,066 $32,406 $31,432 $31,906 $31,112 $32,664 $32,665
Subtotal Cash from Operations $21,931 $25,940 $27,731 $33,786 $36,742 $36,066 $32,406 $31,432 $31,906 $31,112 $32,664 $32,665
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 $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 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $21,931 $25,940 $27,731 $33,786 $36,742 $36,066 $32,406 $31,432 $31,906 $31,112 $32,664 $32,665
Expenditures
Expenditures from Operations
Cash Spending $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
Bill Payments $167 $5,024 $5,022 $5,019 $5,549 $21,223 $27,719 $22,835 $23,656 $24,825 $23,761 $26,378
Subtotal Spent on Operations $7,767 $12,624 $12,622 $12,619 $13,149 $28,823 $35,319 $30,435 $31,256 $32,425 $31,361 $33,978
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $30,000 $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 $0
Subtotal Cash Spent $38,067 $12,924 $12,922 $12,919 $13,449 $29,123 $35,619 $30,735 $31,556 $32,725 $31,661 $34,278
Net Cash Flow ($16,137) $13,016 $14,810 $20,867 $23,293 $6,943 ($3,213) $697 $349 ($1,613) $1,003 ($1,613)
Cash Balance $41,963 $54,979 $69,788 $90,656 $113,949 $120,891 $117,678 $118,375 $118,724 $117,112 $118,115 $116,502

Pro Forma Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Starting Balances
Current Assets
Cash $58,100 $41,963 $54,979 $69,788 $90,656 $113,949 $120,891 $117,678 $118,375 $118,724 $117,112 $118,115 $116,502
Inventory $100,000 $86,588 $70,578 $53,295 $32,393 $25,338 $25,255 $22,552 $21,560 $21,696 $21,143 $22,288 $22,460
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $163,100 $133,551 $130,557

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