Contents
Pizzeria Franchise Business Plan
This plan is highly focused and promises to follow a path of prosperity. It is based on conservative sales figures, and actual sales may be higher. The projections are authentic and will be used as the budget for the business. 4 Moons Pizzeria will show a profit almost immediately and increase sales and profits each year.
1.1 Objectives
The objective is to lease a site at 555 West Blue Plum Lane. We will remodel the interior according to the Franchisor’s design. We plan to duplicate the successful formula used by Franchisor and create our own success in our 4 Moons Pizzeria. We plan to train our crew for outstanding results in quality food and customer service. Our objectives are as follows.
- Be the first 4 Moons Pizzeria in Nevada
- Provide the highest quality product, duplicating Franchisor’s successful pizzerias in Oregon
- Give top-notch service in a quick and efficient manner
- Maintain a simple menu to keep food costs low
- Maintain competitive, fast-casual dining at a mid-range price point
- Use marketing strategies to quickly build volume
- Achieve first year sales over $677,000 with 6% annual growth
- Maintain and expand an outstanding reputation as the best neighborhood pizzeria
1.2 Mission
4 Moons Pizzeria exists to generate sales and profit while serving our customers. These two reasons for our existence are inextricable. If one aspect does not exist, the other will cease to exist.
- We will always offer a fresh product and welcoming environment
- We will remain cheerful, courteous, well-trained, and focused on pleasing our guests
- We will strive to become the first destination of choice for those in our neighborhood and community
- Our staff will be offered a workplace where they can prosper and grow in a dignified, fun, and rewarding manner
- We will support and contribute to our community schools, churches, groups, and businesses
1.3 Keys to Success
Our policy as operating managing members is to greet, visit, or at least smile at every table.
We will respond to any feedback, positive or negative, by visiting the table or answering the phone call. We aim to satisfy our customers using every available means.
We are committed to the success and happiness of our staff.
We will provide quality food and beverage at all times.
We will consistently follow the Franchisor’s proven methods.
Company Summary
Established in 1958, 4 Moons Pizzerias are an award-winning "Home of the brick oven Pizza". They offer a comfortable, friendly ambience with a new "Modern Pizzeria" design. The menu features pizza, hot calzones, strombollis, sandwiches, baked pastas, and fresh tossed salads. The pizza dough is made fresh daily on site. Beverages include soft drinks, imported and domestic beer, micro brews, and an impressive wine list. Food ingredients are the finest available, including USDA Choice meats.
2.1 Company Ownership
We are an LLC, limited liability company, with four managing owners holding an equal share (25%) and interest in the franchise.
- Carol Mittani: General Managing Owner – Manages all daily restaurant and company operations.
- Steve Solutrian: Vice Managing Owner / Sales and restaurant operations. Manages daily operations and sales trends.
- Diane Solutrian: Vice Managing Owner / All office procedures. Manages daily operations.
- Rikard Mittani: Vice Managing Owner / Marketing and future finances and investments. Manages daily operations.
2.2 Start-up Summary
We hope to take advantage of an existing structure located at 555 West Blue Plum Lane, at Lakeside Center. It is 2,828 square feet. We will remodel according to the Franchisor’s designs to make our concept both visually and functionally suitable.
Construction is estimated at $214,630 – see attached "Franchisor’s Construction Cost Sheet" for item breakdown.*
Start-up cash on hand is estimated for 3 months working capital, inventory, labor, and rent.
Short-term assets include phone equipment, smallwares, booths, chairs, tables, pendants, sconces, and lighting.
Long-term assets include all kitchen equipment, POS system, and signage.
*Confidential and proprietary information omitted from this sample plan.
Start-up Expenses:
– Remodel Costs: $214,630
– Proscreen/Wallpaper-Menu Boards: $3,644
– Insurance: $1,500
– Franchise Fee: $25,000
– 1st month rent: $4,242
– Drafting/Engineering: $3,000
– City fees/Misc costs: $2,491
– Beer and wine license: $500
– Training/travel: $2,000
– Utility start-up costs: $5,000
– Design: $4,200
– Total Start-up Expenses: $266,207
Start-up Assets:
– Cash Required: $87,286
– Start-up Inventory: $10,000
– Other Current Assets: $41,775
– Long-term Assets: $99,732
– Total Assets: $238,793
Total Requirements: $505,000
Services:
4 Moons Pizzerias are comfortable and inviting. We are a fast-casual operation with dine in, take-out, and delivery. The decor and theme revolve around the open kitchen with brick arches and distinct lighting. Our energy and atmosphere will appeal to families, groups, and schools.
The pizzeria’s power and energy will come from the attentive and courteous service provided by our managers and staff. Our fresh menu will be prepared by our motivated kitchen team, and carefully orchestrated to provide the best service to our customers. We will have at least one manager on duty at all times.
Our hours are Sunday through Thursday 11 am to 10 pm, and Friday and Saturday 11 am to 11 pm. Take-out is available during store hours. Delivery hours are 4 pm to closing every day. We offer delivery all day on Saturday, Sunday, and some holidays.
Market Analysis Summary:
Ohno is one of the fastest-growing cities in America, with Nevada being voted the best small business state in the country. Ohno is a diverse community with a strong labor market, low taxes, affordable housing, and natural amenities, making it an attractive place to live and do business.
The greater Ohno metropolitan area population has grown one third in the last decade and is projected to grow 11.4% in the next five years.
The median age is 36 years old with household incomes averaging $65,895. With a strong local economy, we have a population with disposable cash for dining and entertainment.
According to the Nevada Restaurant Association, Nevada restaurants are expected to lead the nation in sales growth at 7.6%. Nevada is also the fastest-growing state in the union.
Market Segmentation:
4 Moons target market is a three-mile radius of the site location. Within this area, there is a population of 121,705. The total number of households is 48,839 with an average income of $58,197.
This area is densely populated and a desirable part of town. It is an underserved portion, especially to the west up to the Caughlin Ranch area. It is located near two popular malls, Parklane and Shopper’s Square.
Our target market includes adults aged 20 to 54 who socialize and have families. Children are a big part of our market, making up a third of the population in this area. Ages 4 to 19 prefer pizza over any fast food and often influence family dining decisions. According to one study, 93% of the U.S. population eats pizza. With effective marketing, a superior product, and proper management, we can reach and exceed our projected sales goals.
In this area, we have some of the best schools. 4 Moons Pizzerias support local area school groups, sports teams, and church groups through sponsorships, discounts, and donations.
Market Analysis
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Ages 0-19 (fast food) | 4% | 30,426 | 31,643 | 32,909 | 34,225 | 35,594 | 4.00% |
| Ages 20-54 (disposable cash) | 4% | 61,583 | 64,046 | 66,608 | 69,272 | 72,043 | 4.00% |
| Over 55 | 3% | 26,775 | 27,685 | 28,626 | 29,599 | 30,605 | 3.40% |
| Total | 3.87% | 118,784 | 123,374 | 128,143 | 133,096 | 138,242 | 3.87% |
4.2 Target Market Segment Strategy
We haven’t ruled any group or class out in our target market area. Everyone eats pizza. Most residents in this area value exceptional service, mouth-watering food, and a family-friendly atmosphere. We believe everyone will appreciate our value-based menu. We are committed to community involvement and sponsor school/group teams.
We strongly believe we will overcome any competition in our area. Local competition includes Sticky Paws Pizza, Damynos, Gridlow’s Pizza, Hoopla Take-and-Bake, Clodhopper’s, and Little Sayzar. Most of these are at least two miles from our location and are no competition to our concepts, ideals, fresh products, and welcoming service.
4.3 Service Business Analysis
- Represent 17% of all restaurants.
- Americans eat approximately 100 acres of pizza a day.
- Pizza is a $32+ billion per year industry with continuing overall restaurant growth.
- Accounts for 10% of all food service sales.
- 93% of Americans eat pizza at least once a month.
- 67% of Americans order pizza for a casual evening with friends.
- Children between 3-11 prefer pizza over all other food groups.
4.3.1 Competition and Buying Patterns
4 Moons Pizzerias are competitive in the mid-price range, fast casual dining market. With an average ticket of $17.00, we are priced above Hoopla Take-and-Bake and Damyno but below Squaretable.
Quality, quick, and simple is the goal of 4 Moons Pizzerias. Customers are provided with the highest quality product. Store design provides a warm and friendly environment.
Strategy and Implementation Summary
Emphasize service
Differentiate ourselves with SERVICE! Establish our business offering as a clear and viable alternative for our target market.
Build a relationship-oriented business
Build long-term relationships with customers. Become their restaurant and destination of choice. Make them understand the value of the relationship.
Focus on target markets
Focus our offerings on specific population groups. Do not compete for the buyers of "fast food" or "take and bake" restaurants. Sell to smart, quality-conscious customers.
Utilize the various skills of our Managing Owners and learn through the extensive training program provided by Franchisor.
5.1 Competitive Edge
Our competitive edge will be our customer service experience and management approach. Our smiling, good-natured approach to all customers will be evident and highly appreciated.
We will constantly monitor our product to ensure quality food and beverage at all times. Our recipes are delicious, made fresh daily, and our toppings go all the way to the edge of the pizza crust.
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5.2 Marketing Strategy
We will start our marketing during the construction phase. Our main factor in success is simply that a person can enjoy a good pizza, fast service, and friendly familiar faces.
We will all be involved in Sales and Marketing. We will gather information about the neighborhoods, use our POS System to track top sellers and gather a customer base for marketing offers.
- Kids school tours
- Gift Certificate Program
- Phone book advertisement
- Coupons
- Door hangers
- Sporting events for schools and group events
- Eye-catching signage
- Excellent service and high-quality food
- Word of mouth
5.3 Sales Strategy
The marketing strategy discussed previously in this business plan will generate the desired sales.
We require our staff to have a thorough understanding of the menus, ingredients, and methods of preparation for all our foods. We train our staff to always describe and recommend items, even to regular customers, and to always upsell. Upselling almost always brings in better tips because the checks are higher.
We will emphasize service to differentiate ourselves. We will establish our business offerings as a clear and viable alternative, distinguishing ourselves from "slow delivery", "frozen dough", and "average" pizza chains.
We will build long-term relationships with our customers, becoming their destination of choice for delivery, takeout, and dine-in. We will sell ourselves as the best neighborhood and community pizzeria.
5.3.1 Sales Forecast
We are forecasting sales of approximately $677,000 in our first fiscal year (May 2005 to April 2006) with an opening date of mid-May 2005. We foresee sales increasing at .5% monthly, an overall yearly rate of 6% per year. Our forecast is conservative and is based on an average of $17.00 per order.
We are convinced that our business will increase with time. We have a strong management team who will be on property daily to monitor daily operations. We will constantly monitor food quality, customer service, and costs.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Total Restaurant Sales | $677,297 | $717,935 | $761,011 |
| Other | $0 | $0 | $0 |
| Total Sales | $677,297 | $717,935 | $761,011 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Cost of Sales | $135,461 | $143,590 | $152,206 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $135,461 | $143,590 | $152,206 |
Management Summary
4 Moons is a franchise with four members. We will owner operate our pizzeria daily. Starting salaries will be low to reduce labor costs. Each member will have a generalized assignment and will be trained in all restaurant operations. We are an experienced and well-balanced team.
- Please see our attached resumes for a summary.*
Carol Mittani will be the General Manager working every day for success. Steve Solutrian, Diane Solutrian, and Rikard Mittani will be on site during various hours, including peak dinner hours and weekends.
* Confidential and proprietary information omitted from this sample plan.
6.1 Personnel Plan
We plan to have a part-time staff, including pizza makers, delivery drivers, and counter persons. We will have a staff of 10 employees during peak business levels.
Our first month will have a higher labor rate due to training, pre-opening preparation, and grand opening labor.
We have forecasted labor at 18% of gross sales and will strive to keep payroll at 18% or lower.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Wages | $126,738 | $129,228 | $136,982 |
| Other | $0 | $0 | $0 |
| Total People | 14 | 14 | 14 |
| Total Payroll | $126,738 | $129,228 | $136,982 |
Financial Plan
Our main concerns are time management for labor costs, proper purchasing and food preparation, handling, and control of cheese consumption to keep food costs down. Growth will be sustained through increased sales.
7.1 Start-up Funding
Our start-up figures are approximate costs for the start-up of a 4 Moons Pizzeria franchise.
4 Moons has an initial investment of $160,000, with $25,000 covering the franchise fee.
Our estimated start-up cost is $505,000. We are seeking an SBA Loan of $345,000 (see Long-term liability line).
| Start-up Funding | |
| Start-up Expenses to Fund | $266,207 |
| Start-up Assets to Fund | $238,793 |
| Total Funding Required | $505,000 |
| Assets | |
| Non-cash Assets from Start-up | $151,507 |
| Cash Requirements from Start-up | $87,286 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $87,286 |
| Total Assets | $238,793 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $345,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $345,000 |
| Capital | |
| Planned Investment | |
| Solutrian, Steve, and Diane | $75,000 |
| Mittani, Rikard, and Carol | $75,000 |
| Additional Investment Requirement | $10,000 |
| Total Planned Investment | $160,000 |
| Loss at Start-up (Start-up Expenses) | ($266,207) |
| Total Capital | ($106,207) |
| Total Capital and Liabilities | $238,793 |
| Total Funding | $505,000 |
7.2 Important Assumptions
We project profit based on the performance of other franchises and our own judgment.
- We assume that by using marketing and sales strategies, maintaining good customer relationships, providing fresh food, and implementing good management practices, we will succeed.
- To meet the sales goal in the first year, we need to sell 111 checks each day with a $17 per check average.
- Our sales each day should reach a minimum average of $1,881.43.
- Our forecast is based on an average. Some months will increase and others will decrease. We do not predict any major decreases in sales, as Ohno area restaurants are busy year-round.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 0.00% | 0.00% | 0.00% |
| Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
| Tax Rate | 30.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
7.3 Break-even Analysis
Break-even is based on fixed costs, including rent, insurance, maintenance, investor note, pre-opening amortization, as well as controllables such as service labor, kitchen labor, management labor, excess rent, advertising, royalty, and legal/professional fees.
| Break-even Analysis | |
| Monthly Revenue Break-even | $22,254 |
| Assumptions: | |
| Average Percent Variable Cost | 20% |
| Estimated Monthly Fixed Cost | $17,804 |
7.4 Projected Profit and Loss
The Profit and Loss table shows the company’s expected steady growth in profitability over the next three years. We predict a conservative 6% annual increase in sales.
The first month may have higher payroll due to employee training and restaurant set up.
Our operating expenses include a monthly rent estimate of $4,242, royalty fees of 5% of gross sales, equipment rental and repair, utilities projected at 11% of gross sales, administrative charges such as PC charges, cleaning supplies, payroll charges, and office supplies.
Marketing fees are 4% of gross sales per month.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $677,297 $717,935 $761,011
Direct Cost of Sales $135,461 $143,590 $152,206
Other Costs of Sales $0 $0 $0
Total Cost of Sales $135,461 $143,590 $152,206
Gross Margin $541,836 $574,345 $608,805
Gross Margin % 80.00% 80.00% 80.00%
Expenses
Payroll $126,738 $129,228 $136,982
Marketing/Promotion $0 $0 $0
Depreciation $30,000 $30,000 $30,000
Rent $50,904 $50,904 $52,431
Royalty fees $0 $0 $0
Equip rent/repair $3,000 $5,400 $5,400
Utilities $0 $0 $0
Admin charges $3,000 $3,000 $3,000
Total Operating Expenses $213,642 $218,532 $227,813
Profit Before Interest and Taxes $328,194 $355,813 $380,992
EBITDA $358,194 $385,813 $410,992
Interest Expense $23,367 $21,648 $19,738
Taxes Incurred $91,448 $100,249 $108,376
Net Profit $213,378 $233,915 $252,878
Net Profit/Sales 31.50% 32.58% 33.23%
Projected Cash Flow
The cash flow depends on assumptions for daily operational management, traffic counts, inventory turnover, payment days, and accounts receivable management. We do not predict any new financing until we open our second franchise.
Principal amounts are based on a loan of $345,000 with a 10-year SBA Loan at 7% interest.
7.6 Projected Balance Sheet
The balance sheet is solid, and we shouldn’t have trouble meeting our debt obligations as long as we achieve our sales objectives.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Cash | $338,382 | $575,990 | $831,592 |
| Inventory | $6,044 | $6,407 | $6,791 |
| Other Current Assets | $41,775 | $41,775 | $41,775 |
| Total Current Assets | $386,201 | $624,171 | $880,159 |
| Long-term Assets | |||
| Long-term Assets | $99,732 | $99,732 | $99,732 |
| Accumulated Depreciation | $30,000 | $60,000 | $90,000 |
| Total Long-term Assets | $69,732 | $39,732 | $9,732 |
| Total Assets | $455,933 | $663,903 | $889,891 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $26,338 | $26,725 | $28,071 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $26,338 | $26,725 | $28,071 |
| Long-term Liabilities | $322,424 | $296,092 | $267,855 |
| Total Liabilities | $348,762 | $322,817 | $295,926 |
| Paid-in Capital | $160,000 | $160,000 | $160,000 |
| Retained Earnings | ($266,207) | ($52,829) | $181,086 |
| Earnings | $213,378 | $233,915 | $252,878 |
| Total Capital | $107,171 | $341,086 | $593,964 |
| Total Liabilities and Capital | $455,933 | $663,903 | $889,891 |
| Net Worth | $107,171 | $341,086 | $593,964 |
7.7 Business Ratios
The company’s projected business ratios are provided in the following table. The final column, Industry Profile, shows ratios for the "Pizza Restaurant Industry", based on the Standard Industry Classification 5812.0600 with annual sales of $500,000 to $999,000.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 6.00% | 6.00% | 5.24% |
| Percent of Total Assets | ||||
| Inventory | 1.33% | 0.97% | 0.76% | 4.34% |
| Other Current Assets | 9.16% | 6.29% | 4.69% | 35.11% |
| Total Current Assets | 84.71% | 94.02% | 98.91% | 43.74% |
| Long-term Assets | ||||
| Long-term Assets | 15.29% | 5.98% | 1.09% | 56.26% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 5.78% | 4.03% | 3.15% | 18.93% |
| Long-term Liabilities | 70.72% | 44.60% | 30.10% | 25.48% |
| Total Liabilities | 76.49% | 48.62% | 33.25% | 44.41% |
| Net Worth | 23.51% | 51.38% | 66.75% | 55.59% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 80.00% | 80.00% | 80.00% | 61.91% |
| Selling, General & Administrative Expenses | 48.50% | 47.42% | 46.77% | 39.08% |
| Advertising Expenses | 4.43% | 0.00% | 0.00% | 2.55% |
| Profit Before Interest and Taxes | 48.46% | 49.56% | 50.06% | 1.38% |
| Main Ratios | ||||
| Current | 14.66 | 23.36 | 31.35 | 1.14 |
| Quick | 14.43 | 23.12 | 31.11 | 0.79 |
| Total Debt to Total Assets | 76.49% | 48.62% | 33.25% | 49.97% |
| Pre-tax Return on Net Worth | 284.43% | 97.97% | 60.82% | 3.97% |
| Pre-tax Return on Assets | 66.86% | 50.33% | 40.60% | 7.93% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 31.50% | 32.58% | 33.23% | n.a |
| Return on Equity | 199.10% | 68.58% | 42.57% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 23.52 | 23.07 | 23.07
Pro Forma Profit and Loss Sales: – Month 1: $28,750 – Month 2: $57,500 – Month 3: $57,788 – Month 4: $58,076 – Month 5: $58,366 – Month 6: $58,658 – Month 7: $58,952 – Month 8: $59,246 – Month 9: $59,542 – Month 10: $59,840 – Month 11: $60,139 – Month 12: $60,440 Direct Cost of Sales: – Month 1: $5,750 – Month 2: $11,500 – Month 3: $11,557 – Month 4: $11,616 – Month 5: $11,673 – Month 6: $11,732 – Month 7: $11,791 – Month 8: $11,849 – Month 9: $11,909 – Month 10: $11,968 – Month 11: $12,028 – Month 12: $12,088 Other Costs of Sales: – Month 1-12: $0 Total Cost of Sales: – Month 1: $5,750 – Month 2: $11,500 – Month 3: $11,557 – Month 4: $11,616 – Month 5: $11,673 – Month 6: $11,732 – Month 7: $11,791 – Month 8: $11,849 – Month 9: $11,909 – Month 10: $11,968 – Month 11: $12,028 – Month 12: $12,088 Gross Margin: – Month 1: $23,000 – Month 2: $46,000 – Month 3: $46,231 – Month 4: $46,460 – Month 5: $46,693 – Month 6: $46,926 – Month 7: $47,161 – Month 8: $47,397 – Month 9: $47,633 – Month 10: $47,872 – Month 11: $48,111 – Month 12: $48,352 Gross Margin %: – Month 1-12: 80.00% Expenses: Payroll: – Month 1: $10,000 – Month 2: $10,350 – Month 3: $10,402 – Month 4: $10,454 – Month 5: $10,506 – Month 6: $10,558 – Month 7: $10,611 – Month 8: $10,664 – Month 9: $10,718 – Month 10: $10,771 – Month 11: $10,825 – Month 12: $10,879 Marketing/Promotion: 4% of sales Depreciation: – Month 1-12: $2,500 Rent: – Month 1-12: $4,242 Royalty fees: 5% of sales Equip rent/repair: – Month 1-12: $250 Utilities: 11% of sales Admin charges: – Month 1-12: $250 Total Operating Expenses: – Month 1: $17,242 – Month 2: $17,592 – Month 3: $17,644 – Month 4: $17,696 – Month 5: $17,748 – Month 6: $17,800 – Month 7: $17,853 – Month 8: $17,906 – Month 9: $17,960 – Month 10: $18,013 – Month 11: $18,067 – Month 12: $18,121 Profit Before Interest and Taxes: – Month 1: $5,758 – Month 2: $28,408 – Month 3: $28,587 – Month 4: $28,764 – Month 5: $28,945 – Month 6: $29,126 – Month 7: $29,308 – Month 8: $29,491 – Month 9: $29,673 – Month 10: $29,859 – Month 11: $30,044 – Month 12: $30,231 EBITDA: – Month 1: $8,258 – Month 2: $30,908 – Month 3: $31,087 – Month 4: $31,264 – Month 5: $31,445 – Month 6: $31,626 – Month 7: $31,808 – Month 8: $31,991 – Month 9: $32,173 – Month 10: $32,359 – Month 11: $32,544 – Month 12: $32,731 Interest Expense: – Month 1-12: $2,013 Taxes Incurred: – Month 1: $1,124 – Month 2: $7,922 – Month 3: $7,979 – Month 4: $8,036 – Month 5: $8,094 – Month 6: $8,152 – Month 7: $8,210 – Month 8: $8,268 – Month 9: $8,327 – Month 10: $8,386 – Month 11: $8,445 – Month 12: $8,505 Net Profit: – Month 1: $2,622 – Month 2: $18,485 – Month 3: $18,619 – Month 4: $18,751 – Month 5: $18,886 – Month 6: $19,020 – Month 7: $19,156 – Month 8: $19,293 – Month 9: $19,429 – Month 10: $19,567 – Month 11: $19,706 – Month 12: $19,845 Net Profit/Sales: – Month 1-12: 9.12% – 32.83% Pro Forma Cash Flow Cash Received: – Month 1: $28,750 – Month 2: $57,500 – Month 3: $57,788 – Month 4: $58,076 – Month 5: $58,366 – Month 6: $58,658 – Month 7: $58,952 – Month 8: $59,246 – Month 9: $59,542 – Month 10: $59,840 – Month 11: $60,139 – Month 12: $60,440 Subtotal Cash from Operations: – Month 1: $28,750 – Month 2: $57,500 – Month 3: $57,788 – Month 4: $58,076 – Month 5: $58,366 – Month 6: $58,658 – Month 7: $58,952 – Month 8: $59,246 – Month 9: $59,542 – Month 10: $59,840 – Month 11: $60,139 – Month 12: $60,440 Expenditures: Expenditures from Operations: – Month 1-12: Cash Spending: – Month 1: $10,000 – Month 2: $10,350 – Month 3: $10,402 – Month 4: $10,454 – Month 5: $10,506 – Month 6: $10,558 – Month 7: $10,611 – Month 8: $10,664 – Month 9: $10,718 – Month 10: $10,771 – Month 11: $10,825 – Month 12: $10,879 Bill Payments: – Month 1: $263 – Month 2: $8,538 – Month 3: $27,619 – Month 4: $26,300 – Month 5: $26,404 – Month 6: $26,506 – Month 7: $26,612 – Month 8: $26,717 – Month 9: $26,822 – Month 10: $26,929 – Month 11: $27,034 – Month 12: $27,142 Subtotal Spent on Operations: – Month 1: $10,263 – Month 2: $18,888 – Month 3: $38,021 – Month 4: $36,753 – Month 5: $36,910 – Month 6: $37,065 – Month 7: $37,224 – Month 8: $37,382 – Month 9: $37,539 – Month 10: $37,700 – Month 11: $37,860 – Month 12: $38,021 Additional Cash Spent: – Month 1-12: Sales Tax, VAT, HST/GST Paid Out: – Month 1-12: Principal Repayment of Current Borrowing: – Month 1-12: Other Liabilities Principal Repayment: – Month 1-12: Long-term Liabilities Principal Repayment: – Month 1: $0 – Month 2: $1,993 – Month 3: $2,005 – Month 4: $2,017 – Month 5: $2,028 – Month 6: $2,040 – Month 7: $2,052 – Month 8: $2,064 – Month 9: $2,076 – Month 10: $2,088 – Month 11: $2,100 – Month 12: $2,113 Purchase Other Current Assets: – Month 1-12: Purchase Long-term Assets: – Month 1-12: Dividends: – Month 1-12: Subtotal Cash Spent: – Month 1: $10,263 – Month 2: $20,881 – Month 3: $40,026 – Month 4: $38,770 – Month 5: $38,938 – Month 6: $39,105 – Month 7: $39,276 – Month 8: $39,446 – Month 9: $39,615 – Month 10: $39,788 – Month 11: $39,960 – Month 12: $40,134 Net Cash Flow: – Month 1: $18,487 – Month 2: $36,619 – Month 3: $17,762 – Month 4: $19,306 – Month 5: $19,428 – Month 6: $19,553 – Month 7: $19,676 – Month 8: $19,800 – Month 9: $19,927 – Month 10: $20,052 – Month 11: $20,179 – Month 12: $20,306 Cash Balance: – Month 1: $105,773 – Month 2: $142,393 – Month 3: $160,154 – Month 4: $179,460 – Month 5: $198,888 – Month 6: $218,441 – Month 7: $238,117 – Month 8: $257,918 – Month 9: $277,845 – Month 10: $297,897 – Month 11: $318,076 – Month 12: $338,382 Pro Forma Balance Sheet Assets Starting Balances 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 $87,286 $105,773 $142,393 $160,154 $179,460 $198,888 $218,441 $238,117 $257,918 $277,845 $297,897 $318,076 $338,382 Inventory $10,000 $4,250 $5,750 $5,779 $5,808 $5,837 $5,866 $5,896 $5,925 $5,955 $5,984 $6,014 $6,044 Other Current Assets $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 $41,775 Total Current Assets $139,061 $151,798 $189,918 $207,708 $227,043 $246,499 $266,082 $285,788 $305,617 $325,574 $345,656 $365,865 $386,201 Long-term Assets Long-term Assets $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 $99,732 Accumulated Depreciation $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000 Total Long-term Assets $99,732 $97,232 $94,732 $92,232 $89,732 $87,232 $84,732 $82,232 $79,732 $77,232 $74,732 $72,232 $69,732 Total Assets $238,793 $249,030 $284,650 $299,940 $316,775 $333,731 $350,814 $368,020 $385,349 $402,806 $420,388 $438,097 $455,933 Liabilities and Capital Current Liabilities Accounts Payable $0 $7,616 $26,743 $25,420 $25,521 $25,620 $25,722 $25,824 $25,924 $26,028 $26,130 $26,234 $26,338 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 $7,616 $26,743 $25,420 $25,521 $25,620 $25,722 $25,824 $25,924 $26,028 $26,130 $26,234 $26,338 Long-term Liabilities $345,000 $345,000 $343,007 $341,002 $338,985 $336,957 $334,917 $332,865 $330,801 $328,725 $326,637 $324,537 $322,424 Total Liabilities $345,000 $352,616 $369,750 $366,422 $364,506 $362,577 $360,639 $358,689 $356,725 $354,753 $352,767 $350,771 $348,762 Paid-in Capital $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 Retained Earnings ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) ($266,207) Earnings $0 $2,622 $21,107 $39,725 $58,476 $77,362 $96,382 $115,538 $134,831 $154,260 $173,828 $193,533 $213,378 Total Capital ($106,207) ($103,585) ($85,100) ($66,482) ($47,731) ($28,845) ($9,825) $9,331 $28,624 $48,053 $67,621 $87,326 $107,171 Total Liabilities and Capital $238,793 $249,030 $284,650 $299,940 $316,775 $333,731 $350,814 $368,020 $385,349 $402,806 $420,388 $438,097 $455,933 General Assumptions Plan Month 1 2 3 4 5 6 7 8 9 10 11 12 Current Interest Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Tax Rate 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 0
Business Plan Outline
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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.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!