Mopeds Rental Business Plan
There is an exciting and profitable new business opportunity in Eugene, Oregon. University Mopeds will rent mopeds to University of Oregon students and others in need of efficient, around-town transportation. Currently, there is no similar business in Eugene catering to this market.
For slightly more than a monthly cellular phone bill, students can have their own mode of transportation during the school year. Mopeds have many advantages over cars: lower operating costs, fuel efficiency, and low maintenance. These vehicles can also be insured for $30-$50 per year.
The target market for this business is approximately 15,000 full-time students, as well as thousands of commuters from the Autzen Field area. Parking on campus is scarce, and the bus service offers limited options. This is where the economical moped comes into play.
Many students cannot afford to purchase a moped but can pay $50 per month to rent one. University Mopeds will buy used mopeds for $400-$700 and lease them out, with the average moped paid off in under one year.
In year one, University Mopeds aims to secure 1% of all full-time students, equaling 150 rented mopeds. We anticipate a minimum 15% growth rate over five years.
Assuming an average purchase price of $550 and a ten-month rental contract at $50 per month, University Mopeds can be profitable in year two.
Contents
1.1 Objectives
- Rent 150 units in year one.
- University Mopeds will be fully self-sufficient and profitable by year three.
- Rent at least 199 units by year three and 263 units by year five (15% annual growth rate).
1.2 Mission
University Mopeds will prioritize serving students. Clients will be able to rent quality means of transportation at a fair price. University Mopeds will also be a profitable business that treats employees fairly and provides financially for owners.
1.3 Keys to Success
- Good customer service and value.
- Affordable rental prices.
- Reaching the target market.
- Integrity in serving customers; resulting in repeat purchases.
Company Summary
University Mopeds will rent mopeds to University of Oregon students and others in need. There is currently no similar business in Eugene that caters to this market. For slightly more than the cost of a monthly cellular phone bill, students can have their own mode of transportation that is fairly inexpensive. The target market for this business would be approximately 15,000 full-time U of O students.
Thousands of students commute daily from the Autzen Field area. Parking on campus is scarce, and the bus offers limited options. This is where the economical moped comes into play. Students may not have the disposable income to purchase a moped but can afford $50 per month to rent one. Assuming an average purchase price of $550 and a ten-month rental at $50 per month, University Mopeds can be profitable in year two.
2.1 Start-up Summary
This company will be funded by Matthew Cavanaugh. The majority of the funding will come from private savings and local investors, plus loans backed by starting assets. The start-up costs, including inventory, legal expenses, and advertising, will total $100,000. We anticipate this company will start generating immediate cash flow.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $500 |
| Stationery etc. | $150 |
| Brochures | $0 |
| Consultants | $0 |
| Insurance | $500 |
| Rent | $1,000 |
| Research and development | $750 |
| Expensed equipment | $1,500 |
| Other | $0 |
| Total Start-up Expenses | $4,400 |
| Start-up Assets | |
| Cash Required | $33,100 |
| Start-up Inventory | $82,500 |
| Other Current Assets | $50,000 |
| Long-term Assets | $300,000 |
| Total Assets | $465,600 |
| Total Requirements | $470,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $4,400 |
| Start-up Assets to Fund | $465,600 |
| Total Funding Required | $470,000 |
| Assets | |
| Non-cash Assets from Start-up | $432,500 |
| Cash Requirements from Start-up | $33,100 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $33,100 |
| Total Assets | $465,600 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $40,000 |
| Long-term Liabilities | $300,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $340,000 |
| Capital | |
| Planned Investment | |
| Investor 1 | $100,000 |
| Investor 2 | $10,000 |
| Other | $20,000 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $130,000 |
| Loss at Start-up (Start-up Expenses) | ($4,400) |
| Total Capital | $125,600 |
| Total Capital and Liabilities | $465,600 |
| Total Funding | $470,000 |
2.2 Company Ownership
The company will be officially named University Mopeds, Incorporated and will be an S corporation to maximize tax advantages and limit liability.
2.3 Company Locations and Facilities
University Mopeds will be located in Eugene, Oregon, which is ideal due to the large student population and their need for affordable transportation. If the company succeeds, it may expand to other university towns.
Services
University Mopeds will primarily offer monthly moped rentals. Additional services will include moped safety classes and accessories.
3.1 Competitive Comparison
There is currently no competition in this market. The only potential competitors are public transportation and automobiles, which do not provide the same freedom and price flexibility as University Mopeds.
3.2 Sales Literature
University Mopeds will only distribute sales literature through newspaper publications. Direct mailing may be considered in the future, but there are no immediate plans for it.
3.3 Future Services
In the future, University Mopeds may expand into the electric vehicle market if it becomes a viable transportation alternative. This expansion would benefit from an existing customer base interested in low-cost and eco-friendly transportation options.
Market Analysis Summary
The primary target market for University Mopeds is university students, as they live close to campus and have limited budgets. Additionally, a small portion of customers outside the university community may be attracted, such as those with shorter commutes or seeking a change of pace.
4.1 Market Segmentation
The following chart and table present the market analysis figures for University Mopeds.
Market Analysis
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| University of Oregon Students | 10% | 135 | 149 | 164 | 180 | 198 | 10.05% |
| University Professors and Faculty | 10% | 10 | 11 | 12 | 13 | 14 | 8.78% |
| Lane County Residents | 2% | 10 | 10 | 10 | 10 | 10 | 0.00% |
| Total | 9.40% | 155 | 170 | 186 | 203 | 222 | 9.40% |
4.2 Market Growth
This market will grow in two ways. First, as gas prices continue to increase, driving an automobile will become more expensive, making University Mopeds a more attractive option. Second, as the number of students increases, so will the target market and the number of students interested in our product.
Strategy and Implementation Summary
The following sections outline the strategy and implementation plan for University Mopeds.
5.1 Marketing Strategy
Our main marketing strategy will be to make potential customers aware of us via campus publications. We will advertise in the Daily Emerald, Register-Guard, UO Student phonebook, and the Greek directory.
5.1.1 Distribution Strategy
We will rent mopeds directly out of the shop. To get the mopeds to Eugene, we will use a freight shipper such as UPS.
5.1.2 Marketing Programs
In order to reach our three and five year goals, we must get the idea of a moped as an acceptable means of transportation accepted. People must see others on mopeds around campus and see advertising.
5.1.3 Pricing Strategy
We will price our products at an affordable level for students while ensuring financial stability for the company and its owners. The mopeds will be priced at $50.00 per month, with a discount offered for a school year lease (10 months). Accessories will be offered above cost, but at a reasonable level.
5.1.4 Promotion Strategy
This business will be successful if the target market knows about University Mopeds and how affordable a moped rental can be. We will advertise in the Daily Emerald and the Greek Directory. We will also consider promotions such as free moped rental contests and safety courses.
5.2 Sales Strategy
Since the main part of the business will come from customers ready to rent, there will not need to be much direct selling. We will use knowledgeable salespeople to assist customers who have doubts about renting a moped. The sales staff will explain the benefits of the moped and offer safety and instructional classes for those with no riding experience.
5.2.1 Sales Forecast
We predict monthly sales will vary, but we expect to reach 450 units in the first school year of operation. Sales may be lower when school is out of session.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Moped Rentals | 3,533 | 4,500 | 5,000 |
| Moped Accessories | 7,066 | 9,000 | 10,000 |
| Other | 10,599 | 13,500 | 15,000 |
| Total Unit Sales | 21,198 | 27,000 | 30,000 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Moped Rentals | $50.00 | $50.00 | $50.00 |
| Moped Accessories | $35.00 | $35.00 | $35.00 |
| Other | $5.00 | $5.00 | $5.00 |
| Sales | |||
| Moped Rentals | $176,650 | $225,000 | $250,000 |
| Moped Accessories | $247,310 | $315,000 | $350,000 |
| Other | $52,995 | $67,500 | $75,000 |
| Total Sales | $476,955 | $607,500 | $675,000 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Moped Rentals | $5.00 | $10.00 | $11.00 |
| Moped Accessories | $11.00 | $25.00 | $25.00 |
| Other | $2.00 | $2.00 | $2.00 |
| Direct Cost of Sales | |||
| Moped Rentals | $17,665 | $45,000 | $55,000 |
| Moped Accessories | $77,726 | $225,000 | $250,000 |
| Other | $21,198 | $27,000 | $30,000 |
| Subtotal Direct Cost of Sales | $116,589 | $297,000 | $335,000 |
5.3 Milestones
University Mopeds must have attainable goals for the business. These milestones can guide the future of the company.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Open Shop For Business | 7/1/2001 | 7/1/2000 | $1,500 | M. Cavanaugh | Management |
| Rent first moped | 8/1/2001 | 8/1/2001 | $50 | Owner | Management |
| Average 150 units per month | 6/15/2002 | 6/15/2002 | $0 | Sales Staff | Sales |
| Be debt free | 7/1/2004 | 7/1/2004 | $87,500 | M. Cavanaugh | Management |
| Totals | $89,050 | ||||
Management Summary
There will be no real management structure except for the owner. He will run the business on a daily basis and oversee all facets of the operation. Assisting him will be shop employees. An on-duty mechanic will also work 20 hours per week.
6.1 Personnel Plan
We assume a shop employee will work 40 hours per week at $7.00 per hour. The mechanic will work approximately 20 hours per week at $15.00 per hour. The owner will also fill in and oversee the business. The owner salaries will not be drawn until the business is profitable and all investments have been paid back in full.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Shop Help | $24,000 | $26,400 | $29,040 |
| Mechanics | $18,000 | $19,800 | $21,780 |
| Management | $30,000 | $33,000 | $36,300 |
| Other | $3,000 | $3,300 | $3,630 |
| Total People | 4 | 4 | 5 |
| Total Payroll | $75,000 | $82,500 | $90,750 |
Financial Plan
All of the necessary start-up funds will come from the owners. It will be entirely self-financed. The owners will not draw a salary, but will receive payments for their investments as University Mopeds generates cash flow.
7.1 Important Assumptions
The following table outlines the general assumptions for University Mopeds.
| 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 | 8.50% | 8.50% | 8.50% |
| Tax Rate | 30.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
7.2 Key Financial Indicators
The following chart gives the benchmarks planned for University Mopeds.
7.3 Break-even Analysis
The chart and table below outline the Break-even Analysis.
Break-even Analysis
Monthly Units Break-even: 1,053
Monthly Revenue Break-even: $23,686
Assumptions:
– Average Per-Unit Revenue: $22.50
– Average Per-Unit Variable Cost: $5.50
– Estimated Monthly Fixed Cost: $17,896
7.4 Projected Profit and Loss
The table below shows the projected Profit and Loss.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $476,955 $607,500 $675,000
Direct Cost of Sales $116,589 $297,000 $335,000
Other $0 $0 $0
Total Cost of Sales $116,589 $297,000 $335,000
Gross Margin $360,366 $310,500 $340,000
Gross Margin % 75.56% 51.11% 50.37%
Expenses
Payroll $75,000 $82,500 $90,750
Sales and Marketing and Other Expenses $900 $1,100 $1,300
Depreciation $100,000 $100,000 $100,000
Leased Equipment $600 $600 $600
Utilities $600 $650 $700
Insurance $2,400 $2,800 $3,200
Rent $24,000 $28,000 $30,000
Payroll Taxes $11,250 $12,375 $13,613
Other $0 $0 $0
Total Operating Expenses $214,750 $228,025 $240,163
Profit Before Interest and Taxes $145,616 $82,475 $99,838
EBITDA $245,616 $182,475 $199,838
Interest Expense $28,596 $24,876 $21,011
Taxes Incurred $35,106 $17,280 $23,648
Net Profit $81,914 $40,319 $55,178
Net Profit/Sales 17.17% 6.64% 8.17%
7.5 Projected Cash Flow
The following chart and table represent the projected Cash Flow.
Pro Forma Cash Flow
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $476,955 | $607,500 | $675,000 |
| Subtotal Cash from Operations | $476,955 | $607,500 | $675,000 |
| 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 | $476,955 | $607,500 | $675,000 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $75,000 | $82,500 | $90,750 |
| Bill Payments | $142,534 | $360,154 | $427,552 |
| Subtotal Spent on Operations | $217,534 | $442,654 | $518,302 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $40,000 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $19,898 | $21,941 | $21,941 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $100,000 | $100,000 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $237,432 | $604,596 | $640,243 |
| Net Cash Flow | $239,523 | $2,904 | $34,757 |
| Cash Balance | $272,623 | $275,527 | $310,285 |
7.6 Projected Balance Sheet
The Balance Sheet table follows.
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Cash | $272,623 | $275,527 | $310,285 |
| Inventory | $4,993 | $12,719 | $14,347 |
| Other Current Assets | $50,000 | $50,000 | $50,000 |
| Total Current Assets | $327,616 | $338,247 | $374,631 |
| Long-term Assets | $300,000 | $400,000 | $500,000 |
| Accumulated Depreciation | $100,000 | $200,000 | $300,000 |
| Total Long-term Assets | $200,000 | $200,000 | $200,000 |
| Total Assets | $527,616 | $538,247 | $574,631 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $0 | $32,253 | $35,400 |
| Current Borrowing | $40,000 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $40,000 | $32,253 | $35,400 |
| Long-term Liabilities | $280,102 | $258,161 | $236,219 |
| Total Liabilities | $320,102 | $290,413 | $271,619 |
| Paid-in Capital | $130,000 | $130,000 | $130,000 |
| Retained Earnings | ($4,400) | $77,514 | $117,833 |
| Earnings | $81,914 | $40,319 | $55,178 |
| Total Capital | $207,514 | $247,833 | $303,012 |
| Total Liabilities and Capital | $527,616 | $538,247 | $574,631 |
| Net Worth | $207,514 | $247,833 | $303,012 |
7.7 Business Ratios
The standard ratios shown are for SIC code 7359, other nonclassified rental businesses.
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 27.37% | 11.11% | 7.90% |
| Percent of Total Assets | ||||
| Inventory | 0.95% | 2.36% | 2.50% | 3.40% |
| Other Current Assets | 9.48% | 9.29% | 8.70% | 45.10% |
| Total Current Assets | 62.09% | 62.84% | 65.20% | 74.30% |
| Long-term Assets | 37.91% | 37.16% | 34.80% | 25.70% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 0.00% | 12.17% | 12.17% | |
| Current Debt to Total Assets | 8% | 6% | 6% | |
| Acid Test | 8.07 | 10.09 | 10.18 | |
| Sales/Net Worth | 2.30 | 2.45 | 2.23 | |
| Dividend Payout | 0.00 | 0.00 | 0.00 |
Appendix
Sales Forecast
Unit Sales
Moped Rentals 25 285 354 414 436 356 454 376 324 300 161 48
Moped Accessories 50 570 759 828 872 712 908 752 648 600 322 96
Other 75 855 1062 1242 1308 1068 1362 1128 972 900 483 144
Total Unit Sales 150 1710 2124 2484 2616 2136 2724 2256 1944 1800 966 288
Unit Prices
Moped Rentals 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00
Moped Accessories 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00
Other 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Sales
Moped Rentals 1250 14250 17700 20700 21800 17800 22700 18800 16200 15000 8050 2400
Moped Accessories 1750 19950 24780 28980 30520 24920 31780 26320 22680 21000 11270 3360
Other 375 4275 5310 6210 6540 5340 6810 5640 4860 4500 2415 720
Total Sales 3375 38475 47790 55890 58860 48060 61290 50760 43740 40500 21735 6480
Direct Unit Costs
Moped Rentals 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Moped Accessories 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00
Other 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Subtotal Direct Cost of Sales 825 9405 11682 13662 14388 11748 14982 12408 10692 9900 5313 1584
Personnel Plan
Shop Help 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Mechanics 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Management 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Other 250 250 250 250 250 250 250 250 250 250 250 250
Total Payroll 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
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
Sales
– Month 1: $3,375
– Month 2: $38,475
– Month 3: $47,790
– Month 4: $55,890
– Month 5: $58,860
– Month 6: $48,060
– Month 7: $61,290
– Month 8: $50,760
– Month 9: $43,740
– Month 10: $40,500
– Month 11: $21,735
– Month 12: $6,480
Direct Cost of Sales
– Month 1: $825
– Month 2: $9,405
– Month 3: $11,682
– Month 4: $13,662
– Month 5: $14,388
– Month 6: $11,748
– Month 7: $14,982
– Month 8: $12,408
– Month 9: $10,692
– Month 10: $9,900
– Month 11: $5,313
– Month 12: $1,584
Other
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
Total Cost of Sales
– Month 1: $825
– Month 2: $9,405
– Month 3: $11,682
– Month 4: $13,662
– Month 5: $14,388
– Month 6: $11,748
– Month 7: $14,982
– Month 8: $12,408
– Month 9: $10,692
– Month 10: $9,900
– Month 11: $5,313
– Month 12: $1,584
Gross Margin
– Month 1: $2,550
– Month 2: $29,070
– Month 3: $36,108
– Month 4: $42,228
– Month 5: $44,472
– Month 6: $36,312
– Month 7: $46,308
– Month 8: $38,352
– Month 9: $33,048
– Month 10: $30,600
– Month 11: $16,422
– Month 12: $4,896
Gross Margin %
– Month 1: 75.56%
– Month 2: 75.56%
– Month 3: 75.56%
– Month 4: 75.56%
– Month 5: 75.56%
– Month 6: 75.56%
– Month 7: 75.56%
– Month 8: 75.56%
– Month 9: 75.56%
– Month 10: 75.56%
– Month 11: 75.56%
– Month 12: 75.56%
Expenses
Payroll
– Month 1: $6,250
– Month 2: $6,250
– Month 3: $6,250
– Month 4: $6,250
– Month 5: $6,250
– Month 6: $6,250
– Month 7: $6,250
– Month 8: $6,250
– Month 9: $6,250
– Month 10: $6,250
– Month 11: $6,250
– Month 12: $6,250
Sales and Marketing and Other Expenses
– Month 1: $500
– Month 2: $200
– Month 3: $200
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
Depreciation
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $100,000
Leased Equipment
– Month 1: $50
– Month 2: $50
– Month 3: $50
– Month 4: $50
– Month 5: $50
– Month 6: $50
– Month 7: $50
– Month 8: $50
– Month 9: $50
– Month 10: $50
– Month 11: $50
– Month 12: $50
Utilities
– Month 1: $50
– Month 2: $50
– Month 3: $50
– Month 4: $50
– Month 5: $50
– Month 6: $50
– Month 7: $50
– Month 8: $50
– Month 9: $50
– Month 10: $50
– Month 11: $50
– Month 12: $50
Insurance
– Month 1: $200
– Month 2: $200
– Month 3: $200
– Month 4: $200
– Month 5: $200
– Month 6: $200
– Month 7: $200
– Month 8: $200
– Month 9: $200
– Month 10: $200
– Month 11: $200
– Month 12: $200
Rent
– Month 1: $2,000
– Month 2: $2,000
– Month 3: $2,000
– Month 4: $2,000
– Month 5: $2,000
– Month 6: $2,000
– Month 7: $2,000
– Month 8: $2,000
– Month 9: $2,000
– Month 10: $2,000
– Month 11: $2,000
– Month 12: $2,000
Payroll Taxes
– Month 1: 15%
– Month 2: $938
– Month 3: $938
– Month 4: $938
– Month 5: $938
– Month 6: $938
– Month 7: $938
– Month 8: $938
– Month 9: $938
– Month 10: $938
– Month 11: $938
– Month 12: $938
Other
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
Total Operating Expenses
– Month 1: $9,988
– Month 2: $9,688
– Month 3: $9,688
– Month 4: $9,488
– Month 5: $9,488
– Month 6: $9,488
– Month 7: $9,488
– Month 8: $9,488
– Month 9: $9,488
– Month 10: $9,488
– Month 11: $9,488
– Month 12: $109,488
Profit Before Interest and Taxes
– Month 1: ($7,438)
– Month 2: $19,383
– Month 3: $26,421
– Month 4: $32,741
– Month 5: $34,985
– Month 6: $26,825
– Month 7: $36,821
– Month 8: $28,865
– Month 9: $23,561
– Month 10: $21,113
– Month 11: $6,935
– Month 12: ($104,592)
EBITDA
– Month 1: ($7,438)
– Month 2: $19,383
– Month 3: $26,421
– Month 4: $32,741
– Month 5: $34,985
– Month 6: $26,825
– Month 7: $36,821
– Month 8: $28,865
– Month 9: $23,561
– Month 10: $21,113
– Month 11: $6,935
– Month 12: ($4,592)
Interest Expense
– Month 1: $2,447
– Month 2: $2,436
– Month 3: $2,424
– Month 4: $2,413
– Month 5: $2,401
– Month 6: $2,389
– Month 7: $2,378
– Month 8: $2,366
– Month 9: $2,354
– Month 10: $2,342
– Month 11: $2,330
– Month 12: $2,317
Taxes Incurred
– Month 1: ($2,965)
– Month 2: $5,084
– Month 3: $7,199
– Month 4: $9,098
– Month 5: $9,775
– Month 6: $7,331
– Month 7: $10,333
– Month 8: $7,950
– Month 9: $6,362
– Month 10: $5,631
– Month 11: $1,381
– Month 12: ($32,073)
Net Profit
– Month 1: ($6,919)
– Month 2: $11,863
– Month 3: $16,797
– Month 4: $21,229
– Month 5: $22,808
– Month 6: $17,105
– Month 7: $24,110
– Month 8: $18,549
– Month 9: $14,845
– Month 10: $13,140
– Month 11: $3,223
– Month 12: ($74,836)
Net Profit/Sales
– Month 1: -205.01%
– Month 2: 30.83%
– Month 3: 35.15%
– Month 4: 37.98%
– Month 5: 38.75%
– Month 6: 35.59%
– Month 7: 39.34%
– Month 8: 36.54%
– Month 9: 33.94%
– Month 10: 32.44%
– Month 11: 14.83%
– Month 12: -1154.88%
Pro Forma Cash Flow
Cash Received
– Cash Sales
– Month 1: $3,375
– Month 2: $38,475
– Month 3: $47,790
– Month 4: $55,890
– Month 5: $58,860
– Month 6: $48,060
– Month 7: $61,290
– Month 8: $50,760
– Month 9: $43,740
– Month 10: $40,500
– Month 11: $21,735
– Month 12: $6,480
Subtotal Cash from Operations
– Month 1: $3,375
– Month 2: $38,475
– Month 3: $47,790
– Month 4: $55,890
– Month 5: $58,860
– Month 6: $48,060
– Month 7: $61,290
– Month 8: $50,760
– Month 9: $43,740
– Month 10: $40,500
– Month 11: $21,735
– Month 12: $6,480
Additional Cash Received
– Sales Tax, VAT, HST/GST Received
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
– New Current Borrowing
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
– New Other Liabilities (interest-free)
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
– New Long-term Liabilities
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
– Sales of Other Current Assets
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
– Month 12: $0
– Sales of Long-term Assets
– Month 1: $0
– Month 2: $0
– Month 3: $0
– Month 4: $0
– Month 5: $0
– Month 6: $0
– Month 7: $0
– Month 8: $0
– Month 9: $0
– Month 10: $0
– Month 11: $0
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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