FynbosFarm aims to establish itself as a leading player in the hydroponics and instant turf market. Led by a successful businessman, the project will focus on intensive production and workforce development. The company is dedicated to enhancing the taste and quality of vegetables through innovative food technology. It will also provide education, experience, and research opportunities in hydroponics. With the guidance of expert consultant Mike Shelly, the project will supply vegetables for local and international markets and instant turf for the local market.

The main crops to be cultivated include instant turf, long-life tomatoes, cucumbers, and colored peppers. The tomatoes will be grown on 4ha of plastic, yielding 2100,000 kgs per year, while cucumbers and peppers will be grown on 1ha of plastic, producing 205,000 kgs and 250,000 kgs per year respectively. The remaining 30ha will be allocated to turf production.

To finance the purchase of a new farm and cover development costs, the company is seeking both short-term and long-term funding. This funding will also be used to manage startup expenses and offset first-year losses. It is anticipated that the company will turn a profit in its second year of operation. Production is estimated to begin within 8 months of constructing the first tunnel.

Hydroponics Farm Business Plan Example

The objective of this project is to establish an intensive farm, producing high-quality produce for the national and international market year round.

FynbosFarm is a KZN-based company with a two-fold mission:

– to produce high-quality, nutritional, and flavorful vegetables for local and international consumption.

– to create opportunities for leadership and highly productive teamwork for local women who work on the farm.

The women working on the farm will be organized into intensive work groups and will be paid incentives based on production and performance in addition to their standard wages.

Keys to Success:

– Efficient production using greenhouses.

– No existing projects of this magnitude in the KZN region.

– Experience in the vegetable industry since 1996.

Company Summary:

FynbosFarm is a partnership of successful businessmen developing a small farm into a highly productive hydroponics and instant turf project.

Hydroponics is the growing of high-quality vegetables in high-tech, multi-span greenhouses. The produce is grown in 15L bags with a medium used to support the root system. The plants are automatically fed nutrients through irrigation systems. They are grown in the best suitable conditions to maximize fruit production.

Instant turf will be grown in open field production, irrigated via overhead spray units using runoff fertilizer from the greenhouses. This effective fertilizer will meet all the turf’s requirements. The turf will be harvested with a sod cutter and sold by the square meter.

The company will initially focus on tomatoes, peppers, and cucumbers in the tunnels and will later expand to other vegetables and the fresh cut flower market.

Company Ownership:

FynbosFarm is owned jointly by its two founders, one of whom will serve as the project manager.

Start-up Summary:

The company is seeking investment for acquiring the vegetable farm, modifying facilities, purchasing multi-spans and equipment, and funding operating expenses.

Facilities:

– Six large greenhouses for vegetables

– Irrigation, fertilization, temperature control, and water treatment devices

– Outdoor production of instant lawn

– Pack houses and washbay facilities

Business office building

An additional portion of the operation will be the growing of instant lawn to meet the demand from local nurseries and landscapers.

The largest portion of the start-up requirements is for purchasing the site, constructing necessary buildings and infrastructure, and digging a well.

The start-up period is five months, including construction and one and a half months for growing the first crops, to be sold beginning in July.

Hydroponics Farm Business Plan Example

Start-up Requirements

Start-up Expenses:

– Legal: R70,000

– Borehole testing: R10,000

– Seedlings: R128,000

– Sawdust: R155,000

– Plant bags: R57,753

– Twine and clips: R28,000

– Site leveling: R250,000

– Other: R95,000

– Total Start-up Expenses: R793,753

Start-up Assets:

– Cash Required: R5,000

– Other Current Assets: R0

– Long-term Assets: R20,000,000

– Total Assets: R20,005,000

Total Requirements: R20,798,753

Products

Hydroponics is the production of vegetables in temperature-controlled tunnels. The structures being used are richelle multi-spans, which come complete with computer temperature sensors, automatic opening and closing vents, automatic misting units, and temperature-controlled fans. The advantages of growing in high-tech tunnels are:

– Faster, longer growth

– Harvest labour reduced by 80%

– Decrease loss in weight gain by reducing harvest time

– Eliminate weight loss from shock

Vegetables

FynbosFarm will produce tomatoes, peppers, and cucumbers with the capacity to produce more than 2,550,000 kg of vegetables per year.

Instant lawn

The company will produce 30ha of instant lawn, selling between 20-25ha per year.

Research and development

The company will seek contact with local and international companies to acquire new hybrids of vegetables that grow faster and are hardier in our climate. In addition, the company will track other available species and systems and collaborate with universities and researchers involved in greens to find the best-flavored, large, and firm vegetables.

Future product plans

The company aims to explore flower production as a high-revenue venture and considers the production of bananas due to the current shortage and high selling prices.

Market Analysis Summary

In addition to supplying major supermarkets, FynbosFarm will target open-air markets such as Fruit and Veg City and VegExpress. They will also focus on wholesale live vegetable markets, fresh farmers’ markets, and export to neighboring states and international markets.

Market Segmentation

For this plan, the focus will be on retail outlets and VegCity shops within a 45-mile radius of our location.

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Hydroponics Farm Business Plan Example

Market Analysis:

Retail outlets: 25% Growth: 100, 125, 156, 195, 244. CAGR: 24.98%

vegcities: 10% Growth: 20, 22, 24, 26, 29. CAGR: 9.73%

Other: 25% Growth: 50, 63, 79, 99, 124. CAGR: 25.49%

Total: 23.62% Growth: 170, 210, 259, 320, 397. CAGR: 23.62%

4.2 Target Market Segment Strategy:

The target customers are major retail outlets and export markets for vegetables.

For instant lawn, the target customers are nursery and garden centres, landscapers, and private customers.

4.3 Industry Analysis:

The hydroponic industry is new in the S.A. market in terms of research and developed farms. Start-up costs for a fully state-of-the-art project are a major factor.

Two important factors are the selected markets, where high-quality vegetables must be sold to retrieve the highest price, and project size, as retail outlets require year-round supply.

A project of this magnitude will create interest among major vegetable outlet markets.

4.3.1 Competition and Buying Patterns:

FynbosFarm aims to be the biggest growers of hydroponics in the KZN region. There is minimal competition, and the advantage of large-scale hydroponics is the availability of year-round vegetable production in large quantities, which appeals to major retail outlets and exporters.

Strategy and Implementation Summary:

FynbosFarm’s strategy is to profitably and efficiently utilize present and future agricultural technology in vegetable production. Developing a profitable vegetable farm with custom-innovated equipment will provide a significant industry advantage.

Utilizing horticultural technology will also double the utilization of the climate controlled portion of the overhead.

The company’s goals in the first year are to develop the complete project, plant all 6ha for production, and construct grading and pack shed.

The long-term plan is to produce more selective vegetables and enter the fresh flower market.

5.1 Competitive Edge:

FynbosFarm’s main advantages are efficient production using greenhouses, no existing projects of this magnitude in the KZN region, and experience in the vegetable industry since 1996.

Performing a SWOT analysis will help develop good business strategies.

5.2 Marketing Strategy:

FynbosFarm will aggressively market and supply its products to selected outlets, focusing on local markets and export options. Emphasis will be on reliable year-round output from climate-controlled hydroponics facilities and the ability to produce in-demand non-native vegetables.

Marketing for turf will target regional greenhouses and landscapers.

Future marketing avenues, such as a website and internet advertising, are not included in this plan.

5.3 Sales Strategy:

Sales process for vegetables and instant turf is primarily wholesale marketing. Vegetables will be transported in refrigerated trucks as per orders, and instant turf will be palletized on open back trucks as per orders.

5.3.1 Sales Forecast:

Exceptional sales are expected in the first year. Direct unit costs include agricultural labor force costs, which make up roughly 35% of all direct costs each month.

Hydroponics Farm Business Plan Example

Hydroponics Farm Business Plan Example

Sales Forecast Table

| | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |

|:————-:|:———:|:———:|:———:|:———:|:———:|

| Unit Sales | | | | | |

| Tomatoes | 2,100,000 | 1,500,000 | 2,100,000 | 1,500,000 | 2,100,000 |

| Peppers | 205,000 | 210,000 | 205,000 | 210,000 | 205,000 |

| Cucumbers | 250,000 | 250,000 | 250,000 | 250,000 | 250,000 |

| Instant Turf | 150,000 | 200,000 | 200,000 | 200,000 | 200,000 |

| Total Unit Sales | 2,705,000 | 2,160,000 | 2,755,000 | 2,160,000 | 2,755,000 |

| | | | | | |

| Unit Prices | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |

| Tomatoes | R4.00 | R4.25 | R4.50 | R4.75 | R5.00 |

| Peppers | R10.00 | R10.50 | R11.00 | R11.50 | R12.00 |

| Cucumbers | R1.80 | R1.90 | R2.10 | R2.20 | R2.30 |

| Instant Turf | R10.00 | R11.00 | R12.00 | R13.00 | R14.00 |

| | | | | | |

| Sales | | | | | |

| Tomatoes | R8,400,000 | R6,375,000 | R9,450,000 | R7,125,000 | R10,500,000 |

| Peppers | R2,050,000 | R2,205,000 | R2,255,000 | R2,415,000 | R2,460,000 |

| Cucumbers | R450,000 | R475,000 | R525,000 | R550,000 | R575,000 |

| Instant Turf | R1,500,000 | R2,200,000 | R2,400,000 | R2,600,000 | R2,800,000 |

| Total Sales | R12,400,000| R11,255,000| R14,630,000| R12,690,000| R16,335,000|

| | | | | | |

| Direct Unit Costs | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |

| Tomatoes | R2.00 | R2.13 | R2.25 | R2.38 | R2.50 |

| Peppers | R5.00 | R5.25 | R5.50 | R5.75 | R6.00 |

| Cucumbers | R0.90 | R0.95 | R1.05 | R1.10 | R1.15 |

| Instant Turf | R4.80 | R5.28 | R5.76 | R6.24 | R6.72 |

| | | | | | |

| Direct Cost of Sales | | | | | |

| Tomatoes | R4,200,000 | R3,187,500 | R4,725,000 | R3,562,500 | R5,250,000 |

| Peppers | R1,025,000 | R1,102,500 | R1,127,500 | R1,207,500 | R1,230,000 |

| Cucumbers | R225,000 | R237,500 | R262,500 | R275,000 | R287,500 |

| Instant Turf | R720,000 | R1,056,000 | R1,152,000 | R1,248,000 | R1,344,000 |

| Subtotal Direct Cost of Sales | R6,170,000 | R5,583,500 | R7,267,000 | R6,293,000 | R8,111,500 |

5.4 Milestones

The table and chart below outline the main milestones for the first year.

Hydroponics Farm Business Plan Example

Milestones:

Milestones
Milestone Start Date End Date Budget Manager Department
Raise funding 11/1/2004 1/15/2005 R0 ABC Department
Begin Construction 2/1/2005 2/5/2005 R15,000,000 ABC Department
Begin First Crop Planting 5/10/2005 5/15/2005 R5,000,000 ABC Department
Begin Sales 7/1/2005 7/10/2005 R0 ABC Department
Begin Turf Sales 10/1/2005 10/10/2005 R0 ABC Department
Total Sales over R12 Million 7/1/2005 6/30/2006 R0 ABC Department
Totals R20,000,000

Management Summary:

The project manager has 10 years of experience in the vegetable industry.

[Proprietary and confidential information removed].

6.1 Personnel Plan:

The personnel plan includes the project manager, who will oversee all design and construction of the hydroponics facilities, and a consultant specializing in hydroponics. Wages for the agricultural laborers who will tend the produce are included in the Sales Forecast table as part of the direct unit costs.

Personnel Plan:

Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Project manager R420,000 R420,000 R453,600 R489,888 R529,079
Consultant R60,000 R63,000 R66,150 R69,457 R72,930
Total People 2 2 2 2 2
Total Payroll R480,000 R483,000 R519,750 R559,345 R602,009

Financial Plan:

The financial plan is outlined in the following tables and charts. With initial loans, we can construct the hydroponics facilities and begin crop development. Based on the high demand for these products, we expect solid sales in the first year, with improving margins.

7.1 Start-up Funding:

FynbosFarm needs to fund its start-up requirements. The owner will provide personal investment and is seeking long-term borrowing, using two other successful agricultural ventures he owns as collateral.

Start-up Funding:

Start-up Funding
Start-up Expenses to Fund R793,753
Start-up Assets to Fund R20,005,000
Total Funding Required R20,798,753
Assets
Non-cash Assets from Start-up R20,000,000
Cash Requirements from Start-up R5,000
Additional Cash Raised R0
Cash Balance on Starting Date R5,000
Total Assets R20,005,000
Liabilities and Capital
Liabilities
Current Borrowing R0
Long-term Liabilities R18,000,000
Accounts Payable (Outstanding Bills) R0
Other Current Liabilities (interest-free) R0
Total Liabilities R18,000,000
Capital
Planned Investment
Owners R2,798,753
Investor R0
Additional Investment Requirement R0
Total Planned Investment R2,798,753
Loss at Start-up (Start-up Expenses) (R793,753)
Total Capital R2,005,000
Total Capital and Liabilities R20,005,000
Total Funding R20,798,753
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7.2 Important Assumptions:

  • Steady demand for these products
  • No major climate change that would make these products easier to grow without hydroponics in this area

7.3 Break-even Analysis:

Based on our monthly fixed costs, we need to sell the number of units shown below each month to break-even. Given the high demand for these products and our expertise in this industry, we should exceed this amount even in the first month of the plan, after our initial start-up period for construction and first crop growth.

Hydroponics Farm Business Plan Example

Break-even Analysis

Monthly Units Break-even: 57,047

Monthly Revenue Break-even: R261,511

Assumptions:

Average Per-Unit Revenue: R4.58

Average Per-Unit Variable Cost: R2.28

Estimated Monthly Fixed Cost: R131,388

7.4 Projected Profit and Loss

The following table and charts display our projected Profit and Loss statement. Monthly details for the first year can be found in the appendix.

Hydroponics Farm Business Plan Example

Hydroponics Farm Business Plan Example

Hydroponics Farm Business Plan Example

Hydroponics Farm Business Plan Example

Pro Forma Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5
Sales R12,400,000 R11,255,000 R14,630,000 R12,690,000 R16,335,000
Direct Cost of Sales R6,170,000 R5,583,500 R7,267,000 R6,293,000 R8,111,500
Other Costs of Sales R0 R0 R0 R0 R0
Total Cost of Sales R6,170,000 R5,583,500 R7,267,000 R6,293,000 R8,111,500
Gross Margin R6,230,000 R5,671,500 R7,363,000 R6,397,000 R8,223,500
Gross Margin % 50.24% 50.39% 50.33% 50.41% 50.34%
Expenses
Payroll R480,000 R483,000 R519,750 R559,345 R602,009
Marketing/Promotion R10,000 R10,500 R11,025 R11,907 R12,860
Depreciation R666,660 R666,700 R666,700 R666,700 R666,700
H.P.s R120,000 R120,600 R121,203 R121,203 R120,600
Fuel R100,000 R105,000 R110,250 R115,726 R121,550
Maintenance R20,000 R21,000 R22,050 R23,153 R24,310
Payroll Taxes R0 R0 R0 R0 R0
Other R180,000 R189,000 R198,450 R208,373 R218,719
Total Operating Expenses R1,576,660 R1,595,800 R1,649,428 R1,706,407 R1,766,748
Profit Before Interest and Taxes R4,653,340 R4,075,700 R5,713,572 R4,690,593 R6,456,752
EBITDA R5,320,000 R4,742,400 R6,380,272 R5,357,293 R7,123,452
Interest Expense R1,759,750 R1,663,000 R1,550,500 R1,413,000 R1,138,000
Taxes Incurred R868,077 R723,810 R1,248,922 R983,278 R1,595,626
Net Profit R2,025,513 R1,688,890 R2,914,150 R2,294,315 R3,723,126
Net Profit/Sales 16.33% 15.01% 19.92% 18.08% 22.79%

7.5 Projected Cash Flow

The following table and chart show our projected cash flow, including estimated repayments of the principal borrowing amount.

Hydroponics Farm Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from Operations
Cash Sales R1,860,000 R1,688,250 R2,194,500 R1,903,500 R2,450,250
Cash from Receivables R9,471,833 R9,665,383 R12,144,769 R10,953,616 R13,570,761
Subtotal Cash from Operations R11,331,833 R11,353,633 R14,339,269 R12,857,116 R16,021,011
Additional Cash Received
Sales Tax, VAT, HST/GST Received R0 R0 R0 R0 R0
New Current Borrowing R0 R0 R0 R0 R0
New Other Liabilities (interest-free) R0 R0 R0 R0 R0
New Long-term Liabilities R0 R0 R0 R0 R0
Sales of Other Current Assets R0 R0 R0 R0 R0
Sales of Long-term Assets R0 R0 R0 R0 R0
New Investment Received R0 R0 R0 R0 R0
Subtotal Cash Received R11,331,833 R11,353,633 R14,339,269 R12,857,116 R16,021,011

7.6 Projected Balance Sheet

The Balance Sheet shows a steady increase in Net Worth over the next five years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash R1,668,970 R2,640,193 R5,118,779 R6,187,566 R6,889,633
Accounts Receivable R1,068,167 R969,534 R1,260,264 R1,093,148 R1,407,137
Other Current Assets R0 R0 R0 R0 R0
Total Current Assets R2,737,137 R3,609,727 R6,379,044 R7,280,714 R8,296,770
Long-term Assets
Long-term Assets R20,000,000 R20,000,000 R20,000,000 R20,000,000 R20,000,000
Accumulated Depreciation R666,660 R1,333,360 R2,000,060 R2,666,760 R3,333,460
Total Long-term Assets R19,333,340 R18,666,640 R17,999,940 R17,333,240 R16,666,540
Total Assets R22,070,477 R22,276,367 R24,378,984 R24,613,954 R24,963,310

7.7 Business Ratios

The following table outlines some key ratios from the Hydroponic Crops Grown Under Cover industry. The Industry Profile column provides specific ratios based on the industry as classified by the Standard Industry Classification (SIC) code, 0182.9902.

Sales Forecast

Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth 0.00% -9.23% 29.99% -13.26% 28.72% -1.70%
Percent of Total Assets
Accounts Receivable 4.84% 4.35% 5.17% 4.44% 5.64% 2.94%
Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 24.83%
Total Current Assets 12.40% 16.20% 26.17% 29.58% 33.24% 39.79%
Long-term Assets 87.60% 83.80% 73.83% 70.42% 66.76% 60.21%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 4.12% 1.92% 3.55% 1.24% 3.73% 22.33%
Long-term Liabilities 77.61% 72.41% 61.04% 54.36% 37.58% 22.42%
Total Liabilities 81.74% 74.33% 64.59% 55.60% 41.31% 44.75%
Net Worth 18.26% 25.67% 35.41% 44.40% 58.69% 55.25%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 50.24% 50.39% 50.33% 50.41% 50.34% 46.28%
Selling, General & Administrative Expenses 33.91% 35.39% 30.41% 32.33% 27.55% 29.76%
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.36%
Profit Before Interest and Taxes 37.53% 36.21% 39.05% 36.96% 39.53% 0.30%
Main Ratios
Current 3.01 8.45 7.37 23.79 8.90 1.08
Quick 3.01 8.45 7.37 23.79 8.90 0.38
Total Debt to Total Assets 81.74% 74.33% 64.59% 55.60% 41.31% 54.22%
Pre-tax Return on Net Worth 71.79% 42.18% 48.22% 29.99% 36.30% 0.29%
Pre-tax Return on Assets 13.11% 10.83% 17.08% 13.32% 21.31% 0.63%
Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Net Profit Margin 16.33% 15.01% 19.92% 18.08% 22.79% n.a
Return on Equity 50.25% 29.53% 33.75% 21.00% 25.41% n.a
Activity Ratios
Accounts Receivable Turnover 9.87 9.87 9.87 9.87 9.87 n.a
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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Tomatoes 0% 100,000 200,000 300,000 300,000 200,000 100,000 0 0 100,000 200,000 300,000 300,000
Peppers 0% 10,000 15,000 20,000 30,000 30,000 30,000 25,000 20,000 15,000 0 0 10,000
Cucumbers 0% 20,000 45,000 45,000 15,000 0 0 20,000 45,000 45,000 15,000 0 0
Instant Turf 0% 0 0 0 30,000 30,000 30,000 30,000 30,000 0 0 0 0
Total Unit Sales 130,000 260,000 365,000 375,000 260,000 160,000 75,000 95,000 160,000 215,000 300,000 310,000
Unit Prices
Tomatoes R4.00 R4.00 R4.00 R4.00 R4.00 R4.00 R4.00 R4.00 R4.00 R4.00 R4.00
Peppers R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00
Cucumbers R1.80 R1.80 R1.80 R1.80 R1.80 R1.80 R1.80 R1.80 R1.80 R1.80 R1.80
Instant Turf R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00 R10.00

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Project manager 0% R35,000 R35,000 R35,000 R35,000 R35,000 R35,000 R35,000 R35,000 R35,000 R35,000 R35,000
Consultant 0% R5,000 R5,000 R5,000 R5,000 R5,000 R5,000 R5,000 R5,000 R5,000 R5,000 R5,000
Total People 2 2 2 2 2 2 2 2 2 2 2
Total Payroll R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales R536,000 R1,031,000 R1,481,000 R1,827,000 R1,400,000 R1,000,000 R586,000 R581,000 R631,000 R827,000 R1,200,000 R1,300,000
Direct Cost of Sales R268,000 R515,500 R740,500 R907,500 R694,000 R494,000 R287,000 R284,500 R315,500 R413,500 R600,000 R650,000
Other Costs of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Total Cost of Sales R268,000 R515,500 R740,500 R907,500 R694,000 R494,000 R287,000 R284,500 R315,500 R413,500 R600,000 R650,000
Gross Margin R268,000 R515,500 R740,500 R919,500 R706,000 R506,000 R299,000 R296,500 R315,500 R413,500 R600,000 R650,000
Gross Margin % 50.00% 50.00% 50.00% 50.33% 50.43% 50.60% 51.02% 51.03% 50.00% 50.00% 50.00% 50.00%
Expenses
Payroll R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000
Marketing/Promotion R833 R833 R833 R833 R833 R833 R833 R833 R833 R833 R833 R833
Depreciation R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555 R55,555
H.P.s R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000 R10,000
Fuel R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333 R8,333
Maintenance R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667 R1,667
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 R80,400 R154,650 R222,150 R274,050 R210,000 R150,000 R87,900 R87,150 R94,650 R124,050 R180,000 R195,000
Cash from Receivables R15,187 R469,625 R889,100 R1,268,653 R1,540,852 R1,178,667 R838,270 R497,958 R495,267 R541,903 R713,518 R1,022,833
Subtotal Cash from Operations R95,587 R624,275 R1,111,250 R1,542,703 R1,750,852 R1,328,667 R926,170 R585,108 R589,917 R665,953 R893,518 R1,217,833
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Other Liabilities (interest-free) R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Long-term Liabilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Sales of Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Sales of Long-term Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
New Investment Received R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Subtotal Cash Received R95,587 R624,275 R1,111,250 R1,542,703 R1,750,852 R1,328,667 R926,170 R585,108 R589,917 R665,953 R893,518 R1,217,833
Expenditures
Expenditures from Operations
Cash Spending R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000 R40,000
Bill Payments R14,988 R460,361 R780,955 R1,070,712 R1,274,454 R997,133 R736,304 R475,541 R473,098 R512,296 R643,006 R879,016
Subtotal Spent on Operations R54,988 R500,361 R820,955 R1,110,712 R1,314,454 R1,037,133 R776,304 R515,541 R513,098 R552,296 R683,006 R919,016
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Principal Repayment of Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Other Liabilities Principal Repayment R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Long-term Liabilities Principal Repayment R30,000 R30,000 R60,000 R60,000 R60,000 R90,000 R90,000 R90,000 R90,000 R90,000 R90,000 R90,000
Purchase Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Purchase Long-term Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Dividends R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0
Subtotal Cash Spent R84,988 R530,361 R880,955 R1,170,712 R1,374,454 R1,127,133 R866,304 R605,541 R603,098 R642,296 R773,006 R1,009,016
Net Cash Flow R10,599 R93,914 R230,295 R371,991 R376,398 R201,534 R59,866 (R20,433) (R13,181) R23,657 R120,512 R208,817
Cash Balance R15,599 R109,513 R339,807 R711,799 R1,088,197 R1,289,731 R1,349,597 R1,329,164 R1,315,983 R1,339,640 R1,460,153 R1,668,970

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