DocBuzz, Inc. is a medical marketing company specializing in pharmaceutical, biotechnical, and medical device detailing for the benefit of the medical community. DocBuzz, Inc. is the only company of its kind, owned and operated by practicing physicians.

The pharmaceutical market is highly profitable, with annual revenue exceeding $96.3 billion. However, the pharmaceutical industry faces a time constraint for research, development, branding, marketing, sales, and gaining trust from the medical community.

Similarly, the biotech and medical device industries also face similar time constraints and competition within their respective industries.

DocBuzz, Inc. has developed a method that allows these industries to benefit from prelaunch marketing, branding, and postlaunch sales support. We achieve this through the direct intervention of practicing physicians, providing credibility through our network of physicians and medical professionals. Our e-detailing services, including live conferences, access to current information, medical chat rooms, and online marketing, are the most cost-effective in the market.

Pharmaceutical, biotech, and medical device industries can contract with DocBuzz, Inc. for marketing services at 75% of their current budget. In addition, our unique incentive program allows participating physicians and medical practitioners to earn additional revenue.

DocBuzz offers the medical community up-to-date industry information and the option to request samples, additional product information, or a visit from a pharmaceutical representative.

Keys to our success include improving access to pharmaceuticals for prescribing doctors through Internet technology, recruiting and retaining medical professionals through our value incentive referral point program, providing evidence-based analysis for the pharmaceutical industry, and maintaining controlled growth to ensure the quality of our service.

Medical Internet Marketing Business Plan Example

1.2 Mission

DocBuzz, Inc. offers pharmaceutical, biotechnical, and medical device manufacturers a reliable alternative to in-house resources for sales and marketing. We improve the return on sales and marketing investment by accelerating the physician learning curve on prelaunch, new, and existing products. This is achieved through web access to educational detailing and marketing research. Additionally, DocBuzz, Inc. benefits small and innovative biotechnology and pharmaceutical companies without an extensive sales force in North America.

1.3 Objectives

  • To establish ourselves as a premier pharmaceutical e-detailing company, targeting medical professionals such as physicians, nurse practitioners, physician assistants, dentists, and podiatrists.
  • We will offer value-added services such as CME, current medical information updates, and physician meeting facilities.
  • To hire staff to implement our business concept.
  • To sign up 5% of the more than 650K prescribing medical professionals by year three and provide 300K pharmaceutical detailing per year by year three.
  • To reach a break-even point of $35,936 by the end of year two.

Company Summary

DocBuzz, Inc. was founded by experienced physicians as a company providing high-level expertise in e-detailing of pharmaceutical, biotechnical products, and medical equipment to physicians and other medical professionals. It serves to capitalize on the growing number of small and mid-sized companies, as well as established larger companies, to improve awareness and increase the written prescription pattern of pharmaceutical products.

2.1 Company Ownership

DocBuzz, Inc. is a privately held Delaware corporation. The founders and managing partners are Robert E. Rayder, MD, FAAP, and Michael Y. Wu, MD, FAAP.

2.2 Start-up Summary

Total start-up expenses, including legal costs, logo design, stationery, and related expenses, amount to $99,000. The table below illustrates a complete breakdown of all start-up assets and requirements. Currently, we have no short-term liabilities.

Medical Internet Marketing Business Plan Example

Start-up Funding

Start-up Expenses to Fund: $99,000

Start-up Assets to Fund: $309,000

Total Funding Required: $408,000

Assets

Non-cash Assets from Start-up: $5,000

Cash Requirements from Start-up: $304,000

Additional Cash Raised: $0

Cash Balance on Starting Date: $304,000

Total Assets: $309,000

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $0

Capital

Planned Investment

Investor 1: $158,000

Investor 2: $250,000

Additional Investment Requirement: $0

Total Planned Investment: $408,000

Loss at Start-up (Start-up Expenses): ($99,000)

Total Capital: $309,000

Total Capital and Liabilities: $309,000

Total Funding: $408,000

Start-up Requirements

Start-up Expenses

Legal: $3,000

Stationery etc.: $20,000

Brochures: $7,500

Consultants: $20,000

Insurance: $2,500

Rent: $10,000

Research and Development: $5,000

Expensed Equipment: $30,000

Other: $1,000

Total Start-up Expenses: $99,000

Start-up Assets

Cash Required: $304,000

Other Current Assets: $5,000

Long-term Assets: $0

Total Assets: $309,000

Total Requirements: $408,000

2.3 Company Locations and Facilities

DocBuzz, Inc., currently occupies a shared office space at 2476 North University Drive, Pembroke Pines, FL 33024. Prior to implementation, separate facilities with easy access and the ability to have T-1 or T-4 connections will be required to implement our Internet program.

Services

DocBuzz, Inc., offers e-detailing of pharmaceutical products and augmentation of pharmaceutical companies sales forces. According to the IMS Health Report, pharmaceutical detailing is a $50 billion a year industry. Detailing provides information on new pharmaceutical products, face-to-face meetings with medical professionals, and is vital for introducing new products. DocBuzz, Inc., offers e-detailing through the Internet, websites, personal referral networks, conferences, and Web conferences to achieve effective results at a lower cost.

3.1 Service Description

DocBuzz, Inc., provides physician assisted marketing and sales of pharmaceutical products. Our service is vital during the introduction of new products, prelaunch, and increasing present market share. We have the understanding of physicians’ needs and offer 24/7 service through our online literature and sampling requests.

One of the tasks of a pharmaceutical company is to provide educational descriptions of their products to targeted physicians. This is cost effectively achieved through the Internet’s 24/7 access availability and our unique incentive program (VIRP).

3.2 Sales Literature

All literature, product descriptions, and other information will be available for immediate access through our Internet site. Detailed information will be mailed to the medical professional prior to a DocBuzz, Inc., representative conference or visit.

3.3 Competitive Comparison

Competition in the pharmaceutical industry is intense. Timely development of new products and making strategic alliances successful are top issues facing the industry. DocBuzz, Inc., faces competition from other e-detailing companies and traditional sales and marketing representatives.

3.4 Technology

DocBuzz, Inc., has complete e-detailing facilities with the ability to deliver interactive multimedia presentations. We provide live chat and prerecorded video presentations on a private and secured site.

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3.5 Future Services

Once we achieve market share in the US, we will expand to South America, Japan, Israel, and Europe.

3.6 Fulfillment

DocBuzz, Inc., provides consulting, sales, and marketing services to the pharmaceutical industry. We charge an upfront fee for our consulting service and generate additional income by selling our clients’ products.

Market Analysis Summary

Currently, the largest market segment is the pharmaceutical industry. DocBuzz, Inc., targets pharmaceutical, biotechnical, and medical device companies. The market has shown sustained annual growth of approximately 11 percent.

4.1 Market Segmentation

DocBuzz, Inc., works with large pharmaceutical companies as well as smaller companies with solid financial bases. We also target medical professionals, the biotech industry, and medical device manufacturers. Our ability to reach the medical decision maker sets us apart from our competitors.

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Medical Internet Marketing Business Plan Example

Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Pharmaceutical Companies 14% 31 35 40 46 52 13.80%
Medical Professionals 14% 650,000 741,000 844,740 963,004 1,097,825 14.00%
Bio Tech 17% 1,000,000 1,170,000 1,368,900 1,601,613 1,873,887 17.00%
Medical Devices 7% 3,000,000 3,210,000 3,434,700 3,675,129 3,932,388 7.00%
Total 10.39% 4,650,031 5,121,035 5,648,380 6,239,792 6,904,152 10.39%

4.2 Target Market Segment Strategy

Building a successful Internet e-detailing site is paramount for DocBuzz, Inc. to provide the quantity and quality of service that will ensure the total success of our venture. Each of our target markets uses the access to information that the Internet provides. DocBuzz, Inc. provides the much-needed up-to-date information to medical professionals and provides additional service by assigning a sales and marketing representative to work directly with them.

Each of our target markets has specific unique needs. DocBuzz, Inc. focuses on the common needs shared by these markets. In addition to providing the services that fill our target markets’ needs, we also offer an economic incentive for companies to choose our services.

4.2.1 Market Trends

Cost escalation continues in research and development, and sales and marketing. Each of our target markets shares the same rising cost of developing and marketing a product. DocBuzz, Inc. provides a more cost-effective method of marketing finished products to the market place. E-detailing provides instant access to qualified and interested decision makers within the medical community.

Additionally, DocBuzz, Inc. works with companies to provide market branding, strategic marketing, prelaunch and postlaunch consulting. Our services provide speed and access 24/7, with the ability to download product information immediately. DocBuzz, Inc. representatives will follow up with these professionals and secure sales at about 75% of the current sales and marketing expense.

4.2.2 Market Growth

Pharmaceutical companies enjoy between 10-15 percent annual growth, according to IMS Health marketing surveys. Additionally, the biotech industry has an annual growth rate of approximately 14% and the medical device industry is growing at about 7% per year. With e-detailing, we can further increase growth.

Strategy and Implementation Summary

The initial focus of DocBuzz, Inc. is the United States pharmaceutical market, emphasizing the sale of pharmaceutical products to all targeted professionals. A special DocBuzz, Inc. liaison is assigned to evaluate pharmaceutical companies’ current market position, strength, and weaknesses. Then, DocBuzz, Inc. designs a complimentary e-marketing strategy and a targeted list of medical professional end users. Due to the revenue generated by the pharmaceutical industry, this is the primary targeted industry. The growing biotech and medical devices industries will receive similar service, requiring prelaunch marketing and focusing the medical community’s attention on new products and their benefits prior to official launch.

5.1 Competitive Edge

The pharmaceutical industry is under increasing pressure to improve profitability due to pressure from non-pharmaceutical related entities. For example, Well-Point, a California HMO, recently petitioned the FDA to change three major top revenue generating prescription antihistamines to over-the-counter status. DocBuzz recognizes this development and will assist the pharmaceutical industry to speed up through prelaunch education and marketing to increase profit.

The key to successful e-detailing is an extensive, loyal, and active medical professional network. DocBuzz, Inc. is a physician-owned company, which is vital. As practicing physicians, we understand how to recruit and retain physicians. We have developed recruitment and retention tools, such as our unique VIRP, CME programs, chat rooms, live conferences, and an extensive prize gallery. We better than anyone else understand why a physician has certain prescribing habits and what will encourage them to change those habits.

Building this type of loyal network is a new business concept, and several start-up companies are in various developmental stages to provide similar services. These start-up companies target only the "top tier" pharmaceutical companies. In addition to the "top tier" pharmaceutical companies, DocBuzz, Inc. also targets small- and medium-sized pharmaceutical, biotech, and medical device companies. As a physician-owned company, we have developed a unique retention program (VIRP) that caters to the needs of physicians.

Currently, there is no e-detailing to the thousands of advanced practice registered nurses (ARNPs) and physician assistants (PAs) who prescribe millions of prescriptions yearly. DocBuzz, Inc. intends to market to these significant physician extenders as well. We also plan to expand our service to the thousands of physicians in training (interns, residents, and medical students).

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5.2 Marketing Strategy

DocBuzz, Inc.’s marketing strategy is the core of the main strategy:

  • DocBuzz, Inc. will utilize the principal’s personal contacts within the pharmaceutical, biotech, and medical device industry.
  • All brochures and interactive CD presentations will be designed and created by DocBuzz, Inc.
  • Personal telephone calls by one of the physicians will follow every mailing of material.
  • Live presentations and question and answer sessions will be arranged by DocBuzz, Inc.

5.2.1 Pricing Strategy

DocBuzz, Inc. has developed a pricing strategy that provides a solid profit for our company while offering good value for our client companies.

  • The industry average per face-to-face detailing is $200, with poor to moderate effectiveness.
  • DocBuzz, Inc. provides e-detailing availability 24/7 for the modest charge of $150 per e-detailing.
  • DocBuzz, Inc. offers discounts for high-volume clients (package discounts).

5.2.2 Promotion Strategy

We depend on our extensive network of physicians and other professional contacts within the medical community. As technology and our client industries change, we will adapt our strategies.

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Networking and Support:

  • DocBuzz, Inc. will use known contacts of the company’s principals as a base to build our network core.
  • DocBuzz, Inc. will use the Internet to deliver literature mailing requests and real-time demonstrations.
  • Literature mailing, phone sales, automated multimedia Power Point presentations, and personal visits by our principal physicians.

5.3 Sales Strategy

Due to critical internal information that is not for public disclosure, the specific sales strategy has been omitted.

5.3.1 Sales Forecast

The monthly sales forecast summary is included in the appendix. The annual sales projections are included in the following table.

Medical Internet Marketing Business Plan Example

Medical Internet Marketing Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Pharmaceutical Companies $1,775,000 $1,900,000 $3,000,000
Medical Professionals $717,000 $500,000 $1,000,000
Bio-Tech $1,440,000 $430,000 $1,714,200
Medical Devices $600,000 $750,000 $850,000
Other $0 $234,800 $417,992
Total Sales $4,532,000 $3,814,800 $6,982,192

5.4 Strategic Alliances

  1. Professional groups like the AMA and other specialty organizations.
  2. IMS Health (to capture individual data and physician prescription patterns).
  3. PEER GROUP is providing marketing/consulting through non-Internet media.
  4. Technology alliance (i.e. DELL, IBM, ATT).
  5. Established Internet product distribution organizations – Amazon.com, Buy.com, various Travel sites.
  6. Other medical Internet sites for cross-promotion.

5.5 Milestones

The table below indicates milestones critical to our success. Each milestone is replaced as it is reached.

Our business plan is a living document that constantly changes and grows. We review our milestones on a monthly basis and meet with our strategic consultants until they can be replaced with our own employees.

Milestones
Milestone Start Date End Date Budget Manager Department
Interview Plan Consultants 3/4/2001 5/1/2001 $0 Mike Wu Admin
Write Business Plan 5/3/2001 6/3/2001 $1,500 DFN Consultant
Presign Pharma companies 5/20/2001 7/5/2001 $600 Mike Wu Admin
Call Center Alliance 5/1/5393 7/5/2001 $0 DFN Consultant
Global-Outsource Call Center 7/5/2001 12/30/2001 $3,000 Christian Rose G-O President
Other 5/1/2001 12/30/2001 $0 Dr. Rayner Admin
Totals $5,100

Management Summary

We recognize the need to fill management gaps on a temporary basis with virtual executives. Our plan is a living document that evolves with our company. We meet monthly to review milestones with strategic consultants until replaced by our own employees.

  • Robert E. Rayder, MD, FAAP – Founder and Principal
  • Michael Y. Wu, MD, FAAP – Founder and Principal
  • CEO (TBA) – An MBA with pharmaceutical and Internet expertise to manage the company
  • IT Director (TBA) – Oversees IT development and web development
  • CFO (TBA) – In charge of overall finance
  • Marketing Director (TBA) – Develops and implements marketing plan

6.1 Management Team Gaps

We acknowledge management team gaps, which will be filled temporarily by a virtual management team that will be compensated for their specific services. This allows us to avoid hiring someone who may not be a good fit for our company just because they are qualified for the position.

6.2 Personnel Plan

The table below details our personnel plan. For virtual management positions, we have listed their office title. Names will be added once we hire individuals for these positions.

Personnel Plan
Year 1 Year 2 Year 3
Dr. Wu $75,000 $75,000 $82,500
Dr. Rayder $75,000 $75,000 $82,500
CEO $50,004 $50,004 $55,000
IT Director $39,996 $39,996 $44,000
Marketing Director $39,996 $39,996 $44,000
Secretary $22,800 $23,500 $25,000
Secretary 2 $0 $22,800 $23,500
Secretary 3 $0 $22,800 $23,500
Bookkeeper $0 $0 $22,800
Secretary 4 $0 $0 $22,800
Secretary 5 $0 $0 $28,000
CFO $50,004 $50,004 $55,000
Total People 7 9 12
Total Payroll $352,800 $399,100 $508,600

Financial Plan

We seek funding of $836,000 to support our growth plan, management style, and vision. This funding has been divided into three phases, but further funding may not be necessary.

Our three-year sales projection, profit and loss statement, cash flow analysis, and balance sheet support our financial plan.

7.1 Important Assumptions

The table below summarizes key financial assumptions.

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

7.2 Key Financial Indicators

The benchmark chart below indicates our key financial indicators for the first three years. Sales and operating expenses are projected to significantly increase during times of expansion.

Medical Internet Marketing Business Plan Example

The table below summarizes the break-even analysis, calculated based on the company’s "burn rate." This approach provides the investor with a more accurate risk assessment of the venture.

Medical Internet Marketing Business Plan Example

Break-even Analysis
Monthly Revenue Break-even $55,836
Assumptions:
Average Percent Variable Cost 2%
Estimated Monthly Fixed Cost $54,976

7.4 Projected Profit and Loss

The table and charts below summarize the profit and loss for the first three fiscal years.

Medical Internet Marketing Business Plan Example

Medical Internet Marketing Business Plan Example

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $4,532,000 $3,814,800 $6,982,192

Direct Cost of Sales $69,765 $112,000 $169,000

Other Production Expenses $0 $0 $0

Total Cost of Sales $69,765 $112,000 $169,000

Gross Margin $4,462,235 $3,702,800 $6,813,192

Gross Margin % 98.46% 97.06% 97.58%

Expenses

Payroll $352,800 $399,100 $508,600

Sales and Marketing and Other Expenses $204,000 $214,000 $224,000

Depreciation $0 $0 $0

Leased Equipment $30,000 $30,000 $30,000

Utilities $0 $0 $0

Insurance $0 $0 $0

Rent $19,992 $20,000 $20,000

Payroll Taxes $52,920 $59,865 $76,290

Other $0 $0 $0

Total Operating Expenses $659,712 $722,965 $858,890

Profit Before Interest and Taxes $3,802,523 $2,979,835 $5,954,302

EBITDA $3,802,523 $2,979,835 $5,954,302

Interest Expense $0 $0 $0

Taxes Incurred $1,140,757 $893,951 $1,786,291

Net Profit $2,661,766 $2,085,885 $4,168,011

Net Profit/Sales 58.73% 54.68% 59.69%

7.5 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing cash flow per month and the other representing the monthly balance. The annual cash flow figures are included in the following table.

Medical Internet Marketing Business Plan Example

Pro Forma Cash Flow:

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $4,532,000 $3,814,800 $6,982,192
Subtotal Cash from Operations $4,532,000 $3,814,800 $6,982,192
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 $4,532,000 $3,814,800 $6,982,192

Projected Balance Sheet:

The balance sheet shows healthy growth of net worth and strong financial position. The monthly estimates are included in the appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $3,087,294 $5,160,951 $9,409,162
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $3,092,294 $5,165,951 $9,414,162
Long-term Assets
Total Long-term Assets $0 $0 $0
Total Assets $3,092,294 $5,165,951 $9,414,162
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $121,528 $109,300 $189,500
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $121,528 $109,300 $189,500
Long-term Liabilities $0 $0 $0
Total Liabilities $121,528 $109,300 $189,500
Paid-in Capital $408,000 $408,000 $408,000
Retained Earnings ($99,000) $2,562,766 $4,648,651
Earnings $2,661,766 $2,085,885 $4,168,011
Total Capital $2,970,766 $5,056,651 $9,224,662
Total Liabilities and Capital $3,092,294 $5,165,951 $9,414,162
Net Worth $2,970,766 $5,056,651 $9,224,662
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Business Ratios:

The following table shows the projected business ratios. We expect to maintain healthy ratios for profitability, risk, and return. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8742, Management Consulting Services, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% -15.83% 83.03% 8.60%
Percent of Total Assets
Other Current Assets 0.16% 0.10% 0.05% 46.70%
Total Current Assets 100.00% 100.00% 100.00% 74.90%
Long-term Assets 0.00% 0.00% 0.00% 25.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 3.93% 2.12% 2.01% 42.80%
Long-term Liabilities 0.00% 0.00% 0.00% 17.20%
Total Liabilities 3.93% 2.12% 2.01% 60.00%
Net Worth 96.07% 97.88% 97.99% 40.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 98.46% 97.06% 97.58% 0.00%
Selling, General & Administrative Expenses 39.73% 42.39% 37.88% 83.50%
Advertising Expenses 1.32% 1.83% 1.15% 1.20%
Profit Before Interest and Taxes 83.90% 78.11% 85.28% 2.60%
Main Ratios
Current 25.45 47.26 49.68 1.59
Quick 25.45 47.26 49.68 1.26
Total Debt to Total Assets 3.93% 2.12% 2.01% 60.00%
Pre-tax Return on Net Worth 128.00% 58.93% 64.55% 4.40%
Pre-tax Return on Assets 122.97% 57.68% 63.25% 10.90%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 58.73% 54.68% 59.69% n.a
Return on Equity 89.60% 41.25% 45.18% n.a
Activity Ratios
Accounts Payable Turnover 12.49 12.17 12.17 n.a
Payment Days 27 32 24 n.a
Total Asset Turnover 1.47 0.74 0.74 n.a
Debt Ratios
Debt to Net Worth 0.04 0.02 0.02 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $2,970,766 $5,056,651 $9,224,662 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.68 1.35 1.35 n.a
Current Debt/Total Assets 4% 2% 2% n.a
Acid Test 25.45 47.26 49.68 n.a
Sales/Net Worth 1.53 0.75 0.76 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 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Pharaceutical Companies $100,000 $125,000 $130,000 $135,000 $140,000 $145,000 $150,000 $155,000 $160,000 $165,000 $170,000 $200,000
Medical Professionals $30,000 $60,000 $120,000
Dr. Wu 0% $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250
Dr. Rayder 0% $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250
CEO 0% $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
IT Director 0% $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Marketing Director 0% $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Secretary 0% $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900
Secretary 2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Secretary 3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bookkeeper 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Secretary 4 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Secretary 5 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
CFO 0% $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Total People 7 7 7 7 7 7 7 7 7 7 7 7
Total Payroll $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400 $29,400

General Assumptions:

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
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

Pro Forma Profit and Loss:

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 $210,000 $265,000 $330,000 $365,000 $240,000 $247,000 $530,000 $540,000 $550,000 $565,000 $320,000 $370,000
Direct Cost of Sales $2,700 $2,650 $3,050 $3,170 $3,450 $3,960 $17,860 $5,075 $5,900 $6,750 $7,150 $8,050
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $2,700 $2,650 $3,050 $3,170 $3,450 $3,960 $17,860 $5,075 $5,900 $6,750 $7,150 $8,050
Gross Margin $207,300 $262,350 $326,950 $361,830 $236,550 $243,040 $512,140 $534,925 $544,100 $558,250 $312,850 $361,950
Gross Margin % 98.71% 99.00% 99.08% 99.13% 98.56% 98.40% 96.63% 99.06% 98.93%
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 Sales $210,000 $265,000 $330,000 $365,000 $240,000 $247,000 $530,000 $540,000 $550,000 $565,000 $320,000 $370,000
Subtotal Cash from Operations $210,000 $265,000 $330,000 $365,000 $240,000 $247,000 $530,000 $540,000 $550,000 $565,000 $320,000 $370,000

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
Cash $304,000 $482,134 $643,212 $852,715 $1,077,744 $1,168,785 $1,302,805 $1,714,295 $2,044,508 $2,390,353 $2,747,570 $2,857,303 $3,087,294
Total Current Assets $309,000 $487,134 $648,212 $857,715 $1,082,744 $1,173,785 $1,307,805 $1,719,295 $2,049,508 $2,395,353 $2,752,570 $2,862,303 $3,092,294
Total Liabilities $0 $71,507 $87,424 $106,544 $116,775 $80,715 $83,090 $174,566 $168,815 $172,273 $177,198 $106,419 $121,528
Total Capital $309,000 $415,627 $560,789 $751,170 $965,968 $1,093,070 $1,224,715 $1,544,730 $1,880,694 $2,223,081 $2,575,373 $2,755,884 $2,970,766

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