Locksmith Business Plan

South Kelleton Keys and Locksmith (SKelleton Keys) is a locksmith shop owned and managed by Padraic Lawkse, a certified locksmith. The business will establish a store in South Kelleton to sell lock hardware and services to building management companies, businesses, homeowners, and renters through direct selling and advertising.

Net profit will significantly increase from the first year to the third year with projected sales almost doubling. The business will expand by selling products and services and providing referrals to security product vendors when necessary. In the third year, an additional locksmith will join the business to apprentice under Pad Lawkse and expand the company.

South Kelleton Keys and Locksmith is seeking a three-year business loan to fund initial operations, along with Pad Lawkse’s capital investment.

Locksmith Business Plan Example

1.1 Objectives

The objectives for South Kelleton Keys and Locksmith are:

  1. Launch a store in a highly visible location in South Kelleton
  2. Establish relationships with ten apartment buildings as a preferred vendor for locks in the first year
  3. Achieve a doubling of sales by its third year, with gross margins better than 40%

1.2 Mission

South Kelleton Keys and Locksmith will increase security in its neighborhood by providing quality locks, skilled installation, and repair.

1.3 Keys to Success

To succeed as a locksmith business, SKelleton Keys must:

  1. Develop relationships with building owners
  2. Create community awareness of their proximity, quality, and reasonable prices
  3. Respond quickly to requests
  4. Sell “security and peace” of mind rather than “locks”

Company Summary

South Kelleton Keys and Locksmith will establish a new locksmith shop in South Kelleton. This residential community requires locks and security products ranging from simple locks to advanced products. SKelleton Keys will provide deadbolts, padlocks, cylinder locks, camlocks, safes, and key copying services.

2.1 Company Ownership

South Kelleton Keys and Locksmith is an LLC owned by Padraic Lawkse, an experienced locksmith.

2.2 Start-up Summary

Start-up expenses include liability insurance premiums, rent, legal fees, licensing fees, and stationery. A $25,000 surety bond must also be secured. Pre-launch marketing expenses include website creation, brochure design, flyers, and ads.

$40,000 in inventory must be purchased prior to opening. Current assets include shelves, display cases, a computer, and software systems. Long-term assets include a cash register system, key cutting machines, outdoor signage, and store improvements. Additional tools include hand tools, power tools, letter and number hand stamps, and a ladder. $10,000 is reserved for the purchase of a used van and its outfitting.

Locksmith Business Plan Example

Start-up

Requirements

Start-up Expenses

– Legal & Licenses – $3,000

– Surety Bond – $750

– Stationery – $2,000

– Insurance – $10,000

– Rent – $6,000

– Pre-Launch Marketing – $10,000

– Other – $1,000

– Other – $0

– Total Start-up Expenses – $32,750

Start-up Assets

– Cash Required – $44,250

– Start-up Inventory – $40,000

– Other Current Assets – $20,000

– Long-term Assets – $40,000

– Total Assets – $144,250

Total Requirements – $177,000

Products and Services

Products will be from brand names in lock and security products, such as Schlage and Master Lock, with inexpensive options as well.

Products will include:

– deadbolts

– padlocks

– cylinderlocks

– camlocks

– safes

– key rings

– key chains

– locking display cases

– locking file cabinets

– tool chests

Large and customizable items like display cases will not be held in inventory, but will be ordered to client specifications from vendors. Catalogs will be available in store for customers to choose from.

Services will include:

– cutting copies of keys

– installing all lock products sold

– on-site security consultations

– product repair (when possible)

– referrals to security system sellers who provide sales, installation and repair for more advanced security technologies (electronic and video locks, keypads, camera security systems)

Services will be executed by Padraic Lawkse, a locksmith with technical college and professional experience.

Market Analysis Summary

The locksmith industry sells to consumers and businesses, with goals of securing residential and commercial real estate and property. This market ranges from individuals securing a gym locker, to renters adding security to their rented space, to landlords, homeowners, and business owners securing buildings.

4.1 Market Segmentation

The market for locksmith products and services in South Kelleton has been segmented as shown in the Market Analysis. It is growing at a slow rate, as South Kelleton is built up and not undergoing much new development.

Building management companies work for landlords, providing management services for buildings ranging from single-family homes to large apartment complexes. The managers are tasked with reducing the risks of their landlords, providing good service for their tenants to attract and retain the best tenants, and keeping service costs down. They look for ongoing relationships with local vendors to receive relationship rates for the high volume of business they provide. Locks must be changed frequently for new apartments, front doors, mailboxes, and other rooms in buildings, both when tenants leave and when locks malfunction or are damaged. Robberies or robbery attempts may increase security concerns in buildings or areas and lead to a spree of lock upgrades.

Homeowners seek basic security for their homes, but consider locksmiths as involved in a single transaction. They will look for the reputation and experience of a company but will not spend much time comparing locksmiths. They will pick the first of the two or three they contact, and they will find those based on their visibility in the community or on the internet/Yellow Pages.

Apartment renters generally add a deadbolt to their apartments for greater security, but look for the lowest prices. They think of this work with a locksmith as a single transaction and will not spend too much time comparing prices.

Businesses with real estate may have large amounts of property to protect (inventory and assets) and look for security systems and gates as well as locks. Business owners will seek good prices, but not at the expense of quality and security. They will generally need consultation services as well. Some have large holdings and may work to create ongoing relationships, much like building managers.

Other landlords include absent owners of homes and buildings who do not use a management company. They may not work as professionally as building management companies and may choose locksmiths through simple searches.

Locksmith Business Plan Example

Market Analysis:

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

Building Management Companies 1% 100 101 102 103 104 0.99%

Homeowners 1% 8,000 8,080 8,161 8,243 8,325 1.00%

Apartment Renters 1% 7,000 7,070 7,141 7,212 7,284 1.00%

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Businesses with Real Estate 1% 1,000 1,010 1,020 1,030 1,040 0.99%

Other Landlords 1% 1,000 1,010 1,020 1,030 1,040 0.99%

Total 1.00% 17,100 17,271 17,444 17,618 17,793 1.00%

4.2 Target Market Segment Strategy

To seek profitable market segments in South Kelleton overall, SKelleton Keys will focus on building management companies, homeowners, and businesses with real estate. Each spend more on locks and generally have multiple installations sold with every deal.

Furthermore, apartment renters may be referred to SKelleton Keys by their building management companies, creating future revenues if building managers are sought out first.

4.3 Service Business Analysis

ALOA (Associated Locksmiths of America) provides the following information:

A locksmith may install locks to safeguard property, modify or repair such devices, rekey locks, make duplicate keys or cards, generate or program new keys/cards for lost keys/cards, and respond to emergency calls to unlock vehicles, homes, and businesses.

Some locksmiths also install and service electronic alarm and surveillance systems. Many locksmiths specify, design, install, and service electronic access control systems and closed circuit television (CCTV) systems. Some locksmiths maintain security hardware and software for computer systems.

A locksmith helps customers determine the correct types of locks based on security risk and provides installation services using manufacturer’s templates and/or industry specifications.

A locksmith may sell, service, and install safes for home and business use. They may also service locking devices in banks.

A locksmith repairs locks and replaces worn or malfunctioning parts.

A locksmith makes duplicate keys using a key-duplicating machine.

A locksmith may respond to emergency calls for customers locked out of a home, business, or vehicle.

For security reasons or because keys are stolen or misplaced, many businesses, hotels/motels, and apartment complex owners contract with locksmiths to provide new master key systems and reset combinations.

In our state alone, over 290 locksmith businesses are registered with ALOA, and South Kelleton includes 20.

4.3.1 Competition and Buying Patterns

Neighborhood locksmiths with shops depend on street traffic and are susceptible to aggressive marketing by other locksmith businesses. Customers choose locksmith shops based on location, range of security options, helpfulness of sales staff, and price. Some prefer hardware stores with locksmiths while others look for specialists.

Web Plan Summary

The South Kelleton Keys and Locksmith website will offer basic information about the business and details on the product line but will not offer e-commerce. Customers will be referred to the store to purchase items and to call to schedule consultations. The website will act as an extended brochure for the business.

5.1 Website Marketing Strategy

The South Kelleton Keys and Locksmith website will be marketed through search engine marketing, mentioning the website URL on business cards, brochures, ads, and flyers.

5.2 Development Requirements

The South Kelleton Keys and Locksmith website should offer functions like describing the business and the owner, showcasing store products, detailing services offered, listing partner security businesses, providing store hours, location/directions, and contact information.

Strategy and Implementation Summary

To launch South Kelleton Keys and Locksmith, credibility will be established through a quality product line and expert knowledge. Visibility will be achieved through direct selling to businesses and street/community visibility to homeowners.

6.1 Competitive Edge

South Kelleton Keys and Locksmith will compete by specializing in locks and security, establishing relationships with other security businesses, and maintaining expertise through ALOA training.

6.2 Marketing Strategy

South Kelleton Keys and Locksmith will focus on business sales to building management companies and businesses with real estate, as well as consumer sales to homeowners. Brochures, direct mail, trade publications, search engine marketing, and website development will be used for business sales. Signage, local newsletters, flyers, and website development will be used for consumer sales.

6.3 Sales Strategy

Padraic Lawkse will direct the sales efforts, focusing on qualifying potential customers through phone calls and site visits.

6.3.1 Sales Forecast

Hardware sales and installations will drive revenue. Services will provide a higher gross margin. Commissions on referrals will be profitable. Significant growth is expected in the first year, followed by annual growth of 30% in year 2 and 25% in year 3.

Locksmith Business Plan Example

Locksmith Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Hardware Products $222,964 $289,853 $362,317
Key Services $22,296 $28,985 $36,231
Repair Services $37,147 $48,291 $60,364
Installation Services $111,499 $144,949 $181,186
Emergency Services $29,756 $38,683 $48,354
Referral Commissions $74,329 $96,628 $120,785
Total Sales $497,991 $647,388 $809,235
Direct Cost of Sales Year 1 Year 2 Year 3
Hardware Cost $133,778 $171,013 $213,767
Services Cost $40,140 $52,181 $65,227
Subtotal Direct Cost of Sales $173,918 $223,195 $278,994

6.4 Milestones

The milestone chart shows the execution of pre-launch marketing activities and the use of $10,000 in marketing funding. The expense for the grand opening is to order store-branded key chains as gifts for customers who visit the store while supplies last.

Locksmith Business Plan Example

Milestones:

Milestones
Milestone Start Date End Date Budget Manager Department
Design Brochure 11/1/2009 11/15/2009 $500 Owner SKLK
Print Brochure 11/15/2009 12/1/2009 $2,000 Owner SKLK
Develop Business Mailing List 11/1/2009 12/1/2009 $0 Owner SKLK
Direct Mailing to Businesses 12/1/2009 12/15/2009 $2,000 Owner SKLK
Sales Call Follow ups 8/20/2010 9/19/2010 $0 Owner SKLK
Create Flyer and Ad 8/20/2010 9/19/2010 $500 Owner SKLK
Post Flyers and Run Ads 12/1/2009 12/15/2009 $3,000 Owner SKLK
Store Grand Opening 12/15/2009 12/15/2009 $1,000 Owner SKLK
Create Website 11/1/2009 12/1/2009 $1,000 Owner SKLK
Totals $10,000

Management Summary:

Padraic Lawkse, CEO, will manage store operations, sales and marketing, employee hiring, training, and supervision, and service provision. An assistant store manager will be hired for the first year to handle bookkeeping, purchasing, basic cleaning, and store opening and closing. Pad Lawkse will run the store on weekends and be present during the week when not on service calls.

Store staff will be increased in subsequent years. An additional locksmith apprentice will be hired in the third year to handle basic services and installations, allowing Pad Lawkse to focus on on-site consultations and more complex services.

Personnel Plan:

As the business is an LLC and Pad Lawkse is the sole member, he will receive all profits but is not required to take a salary. However, a salary is shown for tax planning and budgeting purposes. The assistant store manager will be paid a competitive salary with a bonus based on performance. Additional store staff will be hired in the second year and paid hourly. The assistant locksmith will be hired part way through the third year, receiving a salary plus bonus and encouraged to seek additional certifications.

The business will provide health insurance, paid sick leave, and paid vacation for full-time employees.

Personnel Plan
Year 1 Year 2 Year 3
Owner $51,000 $72,000 $84,000
Assistant Store Manager $48,000 $52,000 $56,000
Store Staff $0 $15,000 $35,000
Assistant Locksmith $0 $0 $20,000
Total People 2 3 4
Total Payroll $99,000 $139,000 $195,000
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Financial Plan:

South Kelleton Keys and Locksmith will launch using the owner’s savings and a long-term loan. The business will generate healthy profits and maintain a good cash balance for future growth. Additional staff will be hired, but the same basic assets (store, inventory, equipment, etc.) will be utilized. As locksmiths primarily work at customer sites, a larger facility is not necessary. The owner will maintain a cash balance in the business for emergencies and may withdraw additional cash as dividends.

Start-up Funding:

Padraic Lawkse will invest startup funding from his savings and a credit card line-of-credit. A business loan will be obtained against the assets of the business and repaid over the first three years.

Start-up Funding
Start-up Expenses to Fund $32,750
Start-up Assets to Fund $144,250
Total Funding Required $177,000
Assets
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $44,250
Additional Cash Raised $0
Cash Balance on Starting Date $44,250
Total Assets $144,250
Liabilities and Capital
Liabilities
Current Borrowing $10,000
Long-term Liabilities $70,000
Accounts Payable (Outstanding Bills) $20,000
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Owner $77,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $77,000
Loss at Start-up (Start-up Expenses) ($32,750)
Total Capital $44,250
Total Capital and Liabilities $144,250
Total Funding $177,000

Important Assumptions:

This business plan assumes a favorable job market for potential staff and the availability of storefronts to launch the business.

Break-even Analysis:

The business is expected to reach break-even from a profit perspective in the seventh month of the first year.

Locksmith Business Plan Example

Break-even Analysis

Monthly Revenue Break-even: $25,681

Assumptions:

– Average Percent Variable Cost: 35%

– Estimated Monthly Fixed Cost: $16,713

Projected Profit and Loss

The primary operating expenses for the business will be marketing and promotion. This includes advertising, producing direct mail pieces and brochures, ongoing website hosting and maintenance, and attending events.

Depreciation of long-term assets includes equipment in the store and tools for services. This includes both the equipment and tools purchased at start-up and allowances for additional purchases (shown on the cash flow statement).

Rent is expected to rise, and the business will seek a 5+ year lease on an appropriate storefront space of at least 1,000 square feet.

Insurance and bonding includes ongoing insurance payment for general liability for the store and work at client sites, as well as renewals of the surety bond each year.

Payroll taxes include payments for health insurance for full-time employees.

Store supplies include all supplies (not inventory) expensed immediately for store cleaning, maintenance, and operation.

Van fuel, maintenance, and parking cover the cost of fuel, ongoing maintenance and upkeep of the van, and parking at customer sites when only pay parking is available.

Training and education include subscriptions and coursework for Padraic Lawkse and the assistant locksmith to seek expertise in locksmith work.

Locksmith Business Plan Example

Locksmith Business Plan Example

Locksmith Business Plan Example

Locksmith Business Plan Example

Pro Forma Profit and Loss:

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $497,991 $647,388 $809,235
Direct Cost of Sales $173,918 $223,195 $278,994
Other Costs of Sales $0 $0 $0
Total Cost of Sales $173,918 $223,195 $278,994
Gross Margin $324,073 $424,193 $530,242
Gross Margin % 65.08% 65.52% 65.52%
Expenses
Payroll $99,000 $139,000 $195,000
Marketing/Promotion $36,000 $40,000 $50,000
Depreciation $18,000 $18,000 $18,000
Rent $24,000 $26,000 $28,000
Utilities $2,400 $2,500 $2,600
Insurance & Bonding $3,600 $3,800 $4,000
Payroll Taxes $0 $0 $0
Store Supplies $6,000 $10,000 $15,000
Van Fuel, Maintenance & Parking $5,550 $7,200 $7,800
Training and Education $6,000 $8,000 $15,000
Total Operating Expenses $200,550 $254,500 $335,400
Profit Before Interest and Taxes $123,523 $169,693 $194,842
EBITDA $141,523 $187,693 $212,842
Interest Expense $7,354 $5,010 $3,670
Taxes Incurred $34,851 $49,405 $57,352
Net Profit $81,318 $115,278 $133,820
Net Profit/Sales 16.33% 17.81% 16.54%

8.5 Projected Cash Flow:

Cash flow will consistently become positive by month 6, eliminating the need for additional funding to start the store and business. The business will maintain a healthy cash balance for the potential repair or replacement of equipment or other assets. The projections include steady investments in business assets to account for equipment replacement.

The cash flow table budgets for the purchase of additional tools and equipment as they wear out, break, or get lost, as well as for purchasing tools to install and maintain new security devices. This ensures that South Kelleton Keys and Locksmith can stay up to date with market releases.

The owner will take dividends from the business when cash flow allows, while keeping a cash reserve of around $50,000 during the second and third year.

Credit card debt will be paid off within the first year.

Locksmith Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $373,493 $485,541 $606,927
Cash from Receivables $83,703 $149,609 $189,051
Subtotal Cash from Operations $457,196 $635,150 $795,977
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 $457,196 $635,150 $795,977
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $99,000 $139,000 $195,000
Bill Payments $279,896 $407,988 $465,862
Subtotal Spent on Operations $378,896 $546,988 $660,862
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $10,000 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $13,200 $13,400 $13,400
Purchase Other Current Assets $6,000 $8,000 $10,000
Purchase Long-term Assets $3,000 $15,000 $20,000
Dividends $0 $45,000 $65,000
Subtotal Cash Spent $411,096 $628,388 $769,262
Net Cash Flow $46,100 $6,762 $26,715
Cash Balance $90,350 $97,112 $123,828

8.6 Projected Balance Sheet

The business will pay off its current borrowing in its first year of operation and its long-term liabilities over the first three years. Aside from a contingency fund, the business will not retain a great deal of cash in the business, but will pay profits out as dividends for the most part. Net worth will grow steadily, but not radically, over the first three years of operation for this reason.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $90,350 $97,112 $123,828
Accounts Receivable $40,795 $53,033 $66,291
Inventory $83,869 $62,147 $75,666
Other Current Assets $26,000 $34,000 $44,000
Total Current Assets $241,014 $246,292 $309,785
Long-term Assets
Long-term Assets $43,000 $58,000 $78,000
Accumulated Depreciation $18,000 $36,000 $54,000
Total Long-term Assets $25,000 $22,000 $24,000
Total Assets $266,014 $268,292 $333,785
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $83,646 $29,046 $39,118
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $83,646 $29,046 $39,118
Long-term Liabilities $56,800 $43,400 $30,000
Total Liabilities $140,446 $72,446 $69,118
Paid-in Capital $77,000 $77,000 $77,000
Retained Earnings ($32,750) $3,568 $53,847
Earnings $81,318 $115,278 $133,820
Total Capital $125,568 $195,847 $264,667
Total Liabilities and Capital $266,014 $268,292 $333,785
Net Worth $125,568 $195,847 $264,667
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8.7 Business Ratios

South Kelleton Keys and Locksmith’s business ratios are compared here to SIC code 7699 for locksmith businesses with annual sales of $500,000 to $1 million. Due to its ownership of a store, SKelleton Keys’ ratios will differ from the average locksmith of a similar volume of sales, as many locksmiths work only from a van. It will carry more inventory and will hold more accounts receivables due to its higher level of business sales. The gross margin is driven higher due to the revenue stream of referral commissions which is almost entirely gross profit.

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Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 30.00% 25.00% -1.05%
Percent of Total Assets
Accounts Receivable 15.34% 19.77% 19.86% 12.28%
Inventory 31.53% 23.16% 22.67% 13.40%
Other Current Assets 9.77% 12.67% 13.18% 36.14%
Total Current Assets 90.60% 91.80% 92.81% 61.83%
Long-term Assets 9.40% 8.20% 7.19% 38.17%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 83.646% 29.046%
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
Owner $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,000 $6,000
Assistant Store Manager $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Store Staff $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assistant Locksmith $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 2 2 2 2 2 2 2 2 2 2 2
Total Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,000 $10,000
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 $6,700 $8,710 $11,323 $14,720 $19,136 $24,876 $32,339 $42,041 $54,655 $71,051 $92,365 $120,075
Direct Cost of Sales $2,340 $3,042 $3,955 $5,141 $6,683 $8,688 $11,294 $14,682 $19,087 $24,814 $32,257 $41,935
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $2,340 $3,042 $3,955 $5,141 $6,683 $8,688 $11,294 $14,682 $19,087 $24,814 $32,257 $41,935
Gross Margin $4,360 $5,668 $7,368 $9,579 $12,453 $16,188 $21,045 $27,359 $35,568 $46,237 $60,108 $78,140
Gross Margin % 65.07% 65.07% 65.07% 65.07% 65.08% 65.08% 65.08% 65.08% 65.08% 65.08% 65.08% 65.08%
Expenses
Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,000 $10,000
Marketing/Promotion $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Depreciation $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance & Bonding $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Payroll Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Store Supplies $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Van Fuel, Maintenance & Parking 15.00% $300 $350 $400 $450 $475 $500 $500 $500

Pro Forma Cash Flow

Pro Forma Cash Flow
1 2 3 4 5 6 7 8 9 10 11 12
Cash Received
Cash from Operations
Cash Sales $5,025 $6,533 $8,492 $11,040 $14,352 $18,657 $24,254 $31,531 $40,991 $53,288 $69,274 $90,056
Cash from Receivables $0 $893 $1,943 $2,526 $3,284 $4,269 $5,549 $7,214 $9,378 $12,192 $15,850 $20,605
Subtotal Cash from Operations $5,025 $7,426 $10,435 $13,566 $17,636 $22,926 $29,804 $38,745 $50,370 $65,480 $85,124 $110,661
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 $5,025 $7,426 $10,435 $13,566 $17,636 $22,926 $29,804 $38,745 $50,370 $65,480 $85,124 $110,661
Expenditures
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,000 $10,000
Bill Payments $20,124 $3,721 $4,146 $4,690 $5,388 $6,506 $14,937 $25,531 $32,431 $41,406 $53,074 $67,941
Subtotal Spent on Operations $28,124 $11,721 $12,146 $12,690 $13,388 $14,506 $22,937 $33,531 $40,431 $49,406 $62,074 $77,941
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 $500 $500 $1,000 $1,000 $1,000 $2,000 $2,000 $2,000
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100
Purchase Other Current Assets $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $500 $500 $500 $500 $500 $500
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $29,724 $13,321 $13,746 $14,290 $15,488 $16,606 $26,037 $36,631 $43,531 $53,506 $66,174 $82,041
Net Cash Flow ($24,699) ($5,896) ($3,311) ($724) $2,148 $6,320 $3,767 $2,114 $6,838 $11,974 $18,949 $28,620
Cash Balance $19,551 $13,656 $10,345 $9,620 $11,768 $18,088 $21,855 $23,969 $30,807 $42,781 $61,730 $90,350

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