Fescue & Sons Yard Care is a residential lawn care service targeting rural middle-class homes with large yards. Many families in our targeted income bracket have chosen to buy larger parcels in the nearby countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large lawns require.

Fescue & Sons Yard Care will start as a partnership, owned jointly by Red and Kikuyu Fescue. Red has worked as head landscaper at ABC Landscaping for five years and has the expertise and management experience to begin his own business. Kikuyu is a graphic designer and master gardener who will contribute to the marketing materials.

Over the first summer, Red will be the primary employee, with some part-time help from his son, Rye. Rye has worked with Red at ABC landscaping and will continue to help out at Fescue & Sons in the summers.

In the spring, we will hire an additional landscaper for seasonal work, and may hire another if demand warrants. In mid-summer of Year 2, we will purchase additional equipment.

As a business with largely seasonal profits, we will use the high summer revenues to support the business through the winter’s leaner months. We expect profits over $8,000 in the second fiscal year and over $10,000 in the third year.

Lawn and Garden Services Business Plan Example

1.1 Objectives

Our objectives for the first three years are to:

  • Create a service-based company that exceeds customer expectations.

1.2 Mission

The mission of Fescue & Sons Yard Care is to provide top-quality residential and commercial yard care service. We will strive to attract and maintain customers by providing services in a timely manner to ensure 100% customer satisfaction. Our services will exceed customer expectations.

1.3 Keys to Success

  1. Experienced landscaper with excellent customer-service skills.
  2. Commitment to high quality and professionalism in every task.
  3. Small size allowing direct management oversight of every project and employee.

Company Summary

Fescue & Sons Yard Care offers residential and commercial lawn care service, including cutting, trimming, edging, and clippings removal. Most customers use our services once every week or every two weeks, depending on rainfall. Lawn care needs vary in this area due to weather conditions. While this year is likely to be dry, future years will probably see a return to normal rain levels, which means faster-growing grass and weeds, requiring more frequent lawn care.

2.1 Company Ownership

Fescue & Sons Yard Care starts as a partnership, jointly owned by Red and Kikuyu Fescue. As the business grows, the owners will consider re-registering as a limited liability company or corporation, depending on business needs.

2.2 Start-up Summary

Fescue & Sons Yard Care’s start-up costs include:

  • Home office equipment: file cabinet, computer system (printer, scanner, and fax software)
  • Vehicle: The owners contribute a 1998 Toyota pickup to the business.
  • Two commercial mowers
  • Trimmer: used to reach grass around trees and other hard-to-reach areas
  • Edger: cuts grass that grows over the border of the lawn and driveway
  • Blowers: blasts stray clippings that litter the sidewalk and driveway
  • Hedge trimming equipment
  • Two rakes
  • Two shovels
  • Two pruners
  • Two loppers
  • Safety equipment: steel-toed shoes, goggles, gloves
  • Standard tool box with tools for simple repairs

Lawn and Garden Services Business Plan Example

Start-up Requirements

– Legal/LLC: $500

– Ad: $50

– Brochures/Business Cards: $150

– Home Office: $3,000

Accounting Software: $100

– Other: $0

– Total Start-up Expenses: $3,800

Start-up Assets

– Cash Required: $6,200

– Other Current Assets: $2,500

– Long-term Assets: $3,500

– Total Assets: $12,200

Total Requirements: $16,000

Services

Fescue & Sons Yard Care provides residential lawn care service including cutting, edging, and trimming. Optional services are available upon request. The service is offered once a week during the season, but we can adjust the schedule based on clients’ needs.

Market Analysis Summary

Fescue & Sons Yard Care targets rural middle-class families with larger lawns or properties who need lawn care services. These families often have more acreage than they can manage on their own.

We will advertise our services by canvassing neighborhoods, posting flyers, and placing advertisements in the local rural newspaper to increase visibility.

In the second year, we plan to expand our services to the urban area located 15 miles east.

Market Segmentation

Fescue & Sons Yard Care focuses on families with an annual income over $50,000. This target group has more disposable income to invest in lawn care compared to lower-income families.

Many families in our target income bracket have chosen to purchase larger parcels of land in the nearby countryside due to the high prices of homes in the urban area. However, they often lack the knowledge and resources to properly maintain their lawns.

By targeting customers with large lawns and properties, we fill the niche created by urban flight and can maintain higher profit margins. Transportation costs make it more profitable to focus on a few large lawns rather than many small ones.

By providing exceptional service to rural lawns in the first year, we aim to build a positive reputation and generate word-of-mouth referrals from customers in their former urban neighborhoods. When we expand to urban areas, our focus will be on high-end houses and large, older lots to maximize our efficiency and profits.

Lawn and Garden Services Business Plan Example

Market Analysis

Potential Customers Growth CAGR

Rural Family Income Above $50,000 3% 300 309 318 328 338 3.03%

City Family Income above $50,000 3% 14,500 15,000 15,450 15,914 16,391 3.11%

Total 3.11% 14,800 15,309 15,768 16,242 16,729 3.11%

4.2 Target Market Segment Strategy

Initially, we will canvass nearby homes in our rural town. Red will be basing the business out of our home, very close to the target market. Red will start by speaking with his own neighbors. Although some people are put off by solicitors, Red is their neighbor, so they will be more comfortable with him and he will be able to make his sales pitch. We will also put some small signs on our own lawn advertising our service.

Once Red has built up a steady list of customers, he will begin running advertisements in the local paper to gain access to different neighborhoods. In the second year, we will continue running ads and begin outreach to more affluent city customers with large lawns.

4.3 Service Business Analysis

Fescue & Sons Yard Care will be working in the lawn care industry. The industry includes residential areas (individual homes) and commercial areas (apartment complexes, business parks, schools, etc.).

The commercial side is generally serviced by larger landscaping services. The residential side is serviced by both landscaping companies and basic lawn care service companies.

The lawn care business is made up of many small companies due to the high labor intensity and low start-up costs of the industry. The industry is vulnerable to recession, as lawn care is a luxury. Lastly, the lawn care industry is seasonal, with the high season being spring through fall. There is usually little activity in the winter, but some can be achieved by acquiring a clientele that will utilize monthly maintenance through the winter months.

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4.3.1 Competition and Buying Patterns

The lawn care business can be divided into two types: residential and commercial. As a start-up or one-person business, it is much easier to enter the residential market compared with the commercial market. The commercial market is dominated by larger, established companies.

Within the residential market, there are two competitors: full-scale landscaping companies and basic lawn care services. The full-scale landscaping companies generally handle jobs outside of Fescue & Sons’ range. They service larger homes that require other landscaping activities, more equipment, and multiple employees. The margins are larger for full-scale companies because they can charge more for higher-skilled work. The other competitor is basic lawn care services, similar to Fescue & Sons Yard Care. The current competition in the residential market lacks basic quality and professionalism.

The trend among residential customers is making purchasing decisions based on referrals and perceived professionalism and quality of service.

Strategy and Implementation Summary

Fescue and Sons will rely on Red’s knowledge of the local community and top-quality landscaping skills. Initial outreach will involve direct canvassing of the neighborhood. This will be supplemented by ads showing properties we have worked on, as well as brochures and fliers hung up in local businesses.

We will also rely on word of mouth, so part of our strategy is to treat every job as if it were the most important client we have ever had. Phone calls will be returned promptly, services will be done professionally and on time, and customers will be treated with respect.

5.1 Competitive Edge

Fescue & Sons Yard Care’s competitive edges will be our high-quality work and unflagging professionalism.

During the first summer, Red will do all of the lawn care and other work, with some help from his son, Rye. Starting in May of 2006, we will hire a second, part-time employee as a landscaper. Red, Rye, and the landscaper will always work as a team, allowing for direct supervision of all workers and direct involvement with the job at hand to ensure customers receive the high quality they expect.

Fescue & Sons Yard Care’s second competitive edge is professionalism. In our business, this means returning customer inquiries promptly, showing up on time, bringing all necessary equipment, reserving breaks for times away from the customers’ yards, and cleaning up thoroughly when we leave. To facilitate communication, Red will have a cell phone at all times, where he can be reached directly or receive messages. Cell phone reception in most of the town is quite good, despite being a rural area.

All of these things will help us stand out from the local competition.

5.2 Marketing Strategy

Our marketing strategy in the first year relies largely on face-to-face contact between Red and potential customers, as well as word-of-mouth from satisfied clients. In the second year, we will place more ads, in different papers such as in the nearby city, and continue generating word-of-mouth from our customers.

5.3 Sales Strategy

Fescue & Sons Yard Care’s sales strategy will be based on one-on-one communications with potential customers. By going door to door in his own neighborhood, Red can become more familiar with these folks and take advantage of his outgoing personality.

In the startup period, we will set up the office and purchase the necessary lawn care equipment. At the same time, Red will spend three to four afternoons a week, especially on weekends, going around the neighborhood to scout out problem lawns and talk to potential customers. There are at least two upcoming weekends that are likely to be scorchers when potential customers will look outside and think that the last thing they want to do is go out and mow the lawn. These are our best days to canvass the neighborhood, offering a service many do not realize they want.

After getting in the door, Red’s challenge will be to effectively communicate his experience and skills in lawn care and related work. He will bring a portfolio of some of the nicest lawns he has worked on in the past when working as head landscaper for ABC landscapers, as well as photos of our own lawn, which is more similar to the ones in the neighborhood. He is also willing to offer a free estimate and cutting for those interested in a possible contract. Although some of the free cuttings will not turn out to be long-term customers, our competitive prices and superior service will turn most of the leads into customers.

By year two, the business will be ready to expand outside of the neighborhood. At that point, we will place more advertisements in the local paper to generate business. Red will have already built up a loyal following of customers who can serve as an effective referral system.

5.3.1 Sales Forecast

We will consider ourselves "open for business" and start our fiscal year in July 2005. We anticipate working on an average of 21 lawns per week in July, starting at around 10 the first week and up to 30 by the end of the month. These are reasonable initial forecasts for our area and our prices. We expect good feedback and word-of-mouth, as well as continued canvassing, to increase our customer base each month through the end of the season.

In September, we will begin advertising our end-of-year garden prep and winter maintenance services, which will supply revenue over the winter. Since the climate here is mild, many gardeners put off their seasonal clean-up and garden prep until it is too late. Weeds continue to grow all winter, long past when gardeners want to be out in the yard, and uncompleted garden prep forces them to do much more labor in the spring to get the garden back in shape.

Winter maintenance includes things like trellis and shed repairs, helping gardeners organize their supplies and seeds, and fixing or building cold frames for early vegetables.

Direct cost of sales for all of these projects includes gas for powered equipment and transportation costs, most equipment repair and maintenance, and the cost of any items used up in the process, like mower blades or edging strings. Unlike most big lawn care services, we are tracking direct labor costs as operating expenses, not direct cost of sales. These amounts can be found in the Personnel plan and are reflected in the Profit and Loss statement.

We also plan to do occasional tree stump removal, for which the direct cost of sales is higher since it includes the cost to rent the equipment. If this becomes a larger part of our business, we may buy our own equipment.

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Lawn and Garden Services Business Plan Example

Lawn and Garden Services Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Yard work/landscaping $34,954 $55,000 $65,000
Winter maintenance $5,500 $8,000 $10,000
Garden Prep/Cleanup $7,000 $10,000 $11,000
Tree Stump Removal $1,750 $2,500 $3,000
Total Sales $49,204 $75,500 $89,000
Direct Cost of Sales Year 1 Year 2 Year 3
Yards/Winter Maint/Gardens $3,322 $5,110 $6,020
Other $700 $1,000 $1,200
Subtotal Direct Cost of Sales $4,022 $6,110 $7,220

5.4 Milestones

We have established basic milestones to prioritize the business plan. Red is in charge of goals related to yard care and employee practices, while Kikuyu will oversee our marketing materials – brochures, business cards, ads, etc.

We have sketched out a few milestones past the first year, as details of that implementation will become clearer in the spring of 2006. For now, we are focused on setting up the office and acquiring customers.

Lawn and Garden Services Business Plan Example

Milestones:

Design brochures 4/15/2005 5/15/2005 $0 Kikuyu G&A
Print brochures and cards 5/15/2005 5/25/2005 $150 Red G&A
Set up the office 6/1/2005 6/30/2005 $3,100 Red G&A
Begin customer contacts 6/1/2005 6/15/2005 $0 Red G&A
Sign up the 10th client 6/1/2005 6/25/2005 $0 Red G&A
Ads every other month 6/1/2005 6/30/2006 $175 Kikuyu G&A
Sign up 20th client 6/25/2005 7/15/2005 $0 Red G&A
Sing up 30th client 7/15/2005 8/15/2005 $0 Red G&A
Switch to fall/winter work 10/15/2005 10/31/2005 $0 Red G&A
Switch to spring work 2/15/2006 3/15/2006 $0 Red G&A
Interview potential landscapers 3/1/2006 4/30/2006 $0 Red G&A
Begin city clients 4/1/2006 4/30/2006 $50 Red G&A
Purchase additional equipment 4/15/2006 5/15/2006 $7,000 Red G&A
Second landscaper starts 5/1/2006 5/10/2006 $1,500 Red G&A
Rye returns from school 6/1/2006 6/10/2006 $0 Red G&A
Totals $11,975

Management Summary:

Red and Kikuyu have over 10 years of experience in landscaping and outdoor design. Red, the head landscaper at ABC Landscaping for the past five years, has the design, lawn-care, and management skills to start his own business. In the spring of 2006, Red will manage the day-to-day operations while his son, Rye, and a second landscaper work under his supervision. Kikuyu, a graphic designer and master gardener, will contribute to marketing materials while maintaining her current job.

Personnel Plan:

Rye has worked part-time at ABC Landscaping with his dad for over a year and will assist in the family business during summer breaks. In the spring of 2006, we will hire at least one additional landscaper with a minimum of two years of lawn care experience and strong attention to detail. Rye is already considering potential candidates from his network. This may be a seasonal position depending on the demand for winter work.

Personnel Plan
Year 1 Year 2 Year 3
Red $29,500 $35,000 $40,000
Rye $1,300 $2,000 $2,500
Landscaper $2,700 $8,000 $10,000
Total People 3 3 3
Total Payroll $33,500 $45,000 $52,500

Financial Plan:

The following sections provide important financial information.

Start-up Funding:

The owners will contribute a truck worth $3,500 as a long-term asset to the business and $1,500 in cash for short-term assets. We are also seeking a loan of $11,000, which will be secured by the Fescues’ home equity.

Start-up Funding
Start-up Expenses to Fund $3,800
Start-up Assets to Fund $12,200
Total Funding Required $16,000
Assets
Non-cash Assets from Start-up $6,000
Cash Requirements from Start-up $6,200
Additional Cash Raised $0
Cash Balance on Starting Date $6,200
Total Assets $12,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $11,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $11,000
Capital
Planned Investment
Owners $5,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $5,000
Loss at Start-up (Start-up Expenses) ($3,800)
Total Capital $1,200

Important Assumptions:

The following table presents key financial assumptions for Fescue & Sons.

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

Projected Balance Sheet:

The projected balance sheet shows an increase in net worth from $1,200 at start-up to over $21,000 by year three as we retain earnings and repay the long-term loan.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $13,048 $19,632 $37,538
Other Current Assets $2,500 $2,500 $2,500
Total Current Assets $15,548 $22,132 $40,038
Long-term Assets
Long-term Assets $3,500 $10,500 $10,500
Accumulated Depreciation $1,152 $3,704 $6,256
Total Long-term Assets $2,348 $6,796 $4,244
Total Assets $17,896 $28,928 $44,282
Liabilities

Lawn and Garden Services Business Plan Example

Break-even Analysis:

Monthly Revenue Break-even: $3,374.

Assumptions:

– Average Percent Variable Cost: 8%.

– Estimated Monthly Fixed Cost: $3,098.

7.5 Projected Profit and Loss:

The table and charts below display our projected profit and loss. After paying salaries, we will make a modest profit in the first year, which will increase in future years. Our gross margins will remain at approximately 91 or 92%. Payroll and payroll taxes are our primary expenses as a service business.

Lawn and Garden Services Business Plan Example

Lawn and Garden Services Business Plan Example

Lawn and Garden Services Business Plan Example

Lawn and Garden Services Business Plan Example

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $49,204 $75,500 $89,000

Direct Cost of Sales $4,022 $6,110 $7,220

Other $0 $0 $0

Total Cost of Sales $4,022 $6,110 $7,220

Gross Margin $45,182 $69,390 $81,780

Gross Margin % 91.83% 91.91% 91.89%

Expenses

Payroll $33,500 $45,000 $52,500

Marketing/Promotion $125 $200 $300

Depreciation $1,152 $2,552 $2,552

Insurance $1,200 $1,200 $1,200

Licenses + bonded fees $1,200 $1,200 $1,200

Payroll Taxes $0 $0 $0

Other $0 $0 $0

Total Operating Expenses $37,177 $50,152 $57,752

Profit Before Interest and Taxes $8,005 $19,238 $24,028

EBITDA $9,157 $21,790 $26,580

Interest Expense $1,040 $935 $825

Taxes Incurred $2,090 $5,491 $6,961

Net Profit $4,876 $12,812 $16,242

Net Profit/Sales 9.91% 16.97% 18.25%

7.6 Projected Cash Flow

The following chart and table display our projected cash flow. We will repay the loan over ten years. The table also shows planned purchases of additional long-term assets in the second fiscal year.

Lawn and Garden Services Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $49,204 $75,500 $89,000
Subtotal Cash from Operations $49,204 $75,500 $89,000
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 $49,204 $75,500 $89,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $33,500 $45,000 $52,500
Bill Payments $7,752 $15,816 $17,494
Subtotal Spent on Operations $41,252 $60,816 $69,994
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 $1,104 $1,100 $1,100
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $7,000 $0
Dividends $0 $0 $0
Subtotal Cash Spent $42,356 $68,916 $71,094
Net Cash Flow $6,848 $6,584 $17,906
Cash Balance $13,048 $19,632 $37,538

Business Ratios

The following table outlines important ratios from the Lawn and Garden Services industry. The final column, Industry Profile, details specific ratios based on the industry’s Standard Industry Classification (SIC) code, 0782.

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The major difference between our ratios and the industry standard is in gross margin. The Lawn and Garden Service industry is labor intensive, and most businesses include manual labor expenses in their direct cost of sales. As a small, family-owned business without a large staff, I am treating these as operating expenses instead. If personnel costs are included, our gross margin in the first year falls around 23%, and by year three it is up around 32%, roughly the industry average.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 53.44% 17.88% 9.12%
Percent of Total Assets
Other Current Assets 13.97% 8.64% 5.65% 32.14%
Total Current Assets 86.88% 76.51% 90.42% 51.33%
Long-term Assets 13.12% 23.49% 9.58% 48.67%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 10.75% 4.30% 3.29% 25.79%
Long-term Liabilities 55.30% 30.41% 17.38% 24.81%
Total Liabilities 66.05% 34.71% 20.67% 50.60%
Net Worth 33.95% 65.29% 79.33% 49.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 91.83% 91.91% 91.89% 32.95%
Selling, General & Administrative Expenses 81.92% 74.94% 73.64% 18.41%
Advertising Expenses 0.00% 0.00% 0.00% 0.34%
Profit Before Interest and Taxes 16.27% 25.48% 27.00% 2.04%
Main Ratios
Current 8.08 17.79 27.51 1.38
Quick 8.08 17.79 27.51 0.88
Total Debt to Total Assets 66.05% 34.71% 20.67% 62.84%
Pre-tax Return on Net Worth 114.64% 96.91% 66.05% 4.79%
Pre-tax Return on Assets 38.92% 63.27% 52.40% 12.89%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 9.91% 16.97% 18.25% n.a
Return on Equity 80.25% 67.83% 46.23% n.a
Activity Ratios
Accounts Payable Turnover 5.03 12.17 12.17 n.a
Payment Days 27 38 28 n.a
Total Asset Turnover 2.75 2.61 2.01 n.a
Debt Ratios
Debt to Net Worth 1.95 0.53 0.26 n.a
Current Liab. to Liab. 0.16 0.12 0.16 n.a
Liquidity Ratios
Net Working Capital $13,624 $20,888 $38,582 n.a
Interest Coverage 7.70 20.58 29.14 n.a
Additional Ratios
Assets to Sales 0.36 0.38 0.50 n.a
Current Debt/Total Assets 11% 4% 3% n.a
Acid Test 8.08 17.79 27.51 n.a
Sales/Net Worth 8.10 4.00 2.53 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 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 $3,000 $3,504 $4,000 $3,750 $2,500 $2,250 $2,000 $1,750 $4,500 $6,250 $7,200 $8,500
Direct Cost of Sales $210 $328 $280 $345 $175 $240 $140 $205 $315 $520 $504 $760
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $210 $328 $280 $345 $175 $240 $140 $205 $315 $520 $504 $760
Gross Margin $2,790 $3,176 $3,720 $3,405 $2,325 $2,010 $1,860 $1,545 $4,185 $5,730 $6,696 $7,740
Gross Margin % 93.00% 90.65% 93.00% 90.80% 93.00% 89.33% 93.00% 88.29% 93.00% 91.68% 93.00% 91.06%

Pro Forma Cash Flow

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Pro Forma Balance Sheet:

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 $3,000 $3,504 $4,000 $3,750 $2,500 $2,250 $2,000 $1,750 $4,500 $6,250 $7,200 $8,500
Subtotal Cash from Operations $3,000 $3,504 $4,000 $3,750 $2,500 $2,250 $2,000 $1,750 $4,500 $6,250 $7,200 $8,500
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 $3,000 $3,504 $4,000 $3,750 $2,500 $2,250 $2,000 $1,750 $4,500 $6,250 $7,200 $8,500
Expenditures
Expenditures from Operations
Cash Spending $2,300 $3,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $4,000 $4,200
Bill Payments $18 $550 $564 $819 $790 $294 $261 $136 $120 $1,030 $1,654 $1,516
Subtotal Spent on Operations $2,318 $3,550 $3,064 $3,319 $3,290 $2,794 $2,761 $2,636 $2,620 $3,530 $5,654 $5,716
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
Assets Starting Balances
Current Assets
Cash $6,200 $6,790 $6,652 $7,496 $7,835 $6,953 $6,317 $5,464 $4,486 $6,274 $8,902 $10,356 $13,048
Other Current Assets $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total Current Assets $8,700 $9,290 $9,152 $9,996 $10,335 $9,453 $8,817 $7,964 $6,986 $8,774 $11,402 $12,856 $15,548
Long-term Assets
Long-term Assets $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Accumulated Depreciation $0 $96 $192 $288 $384 $480 $576 $672 $768 $864 $960 $1,056 $1,152
Total Long-term Assets $3,500 $3,404 $3,308 $3,212 $3,116 $3,020 $2,924 $2,828 $2,732 $2,636 $2,540 $2,444 $2,348
Total Assets $12,200 $12,694 $12,460 $13,208 $13,451 $12,473 $11,741 $10,792 $9,718 $11,410 $13,942 $15,300 $17,896
Liabilities and Capital
Current Liabilities
Accounts Payable $0 $531 $536 $792 $780 $285 $256 $133 $87 $975 $1,604 $1,450 $1,925
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $531 $536 $792 $780 $285 $256 $133 $87 $975 $1,604 $1,450 $1,925
Long-term Liabilities
Long-term Liabilities $11,000 $10,908 $10,816 $10,724 $10,632 $10,540 $10,448 $10,356 $10,264 $10,172 $10,080 $9,988 $9,896
Total Liabilities $11,000 $11,439 $11,352 $11,516 $11,412 $10,825 $10,704 $10,489 $10,351 $11,147 $11,684 $11,438 $11,821
Paid-in Capital $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
Retained Earnings ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800) ($3,800)
Earnings $0 $55 ($92) $492 $839 $448 ($164) ($897) ($1,832) ($937) $1,058 $2,662 $4,876
Total Capital $1,200 $1,255 $1,108 $1,692

Business Plan Outline

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