Skate Park NW (SP) is a new skate skiing resort in the Oregon Cascades with miles of groomed trails. With its unique trails and strong management team, SP can execute its business plan effectively.
Skate skiing, created by Bill Koch, is a rapidly growing form of nordic skiing that appeals to active individuals as a fun cross-training activity for runners and cyclists. SP will promote the sport’s popularity by sponsoring races and clinics.
SP has three keys to success: convenience, well-groomed trails, and customer service. By offering convenience to customers from the Willamette River Valley, who would otherwise have to travel to Mt. Bachelor, SP gains a competitive edge. By maintaining well-groomed trails and prioritizing customer service, SP can attract and retain customers.
SP has targeted two market segments: beginners and experienced skiers. The beginner segment consists of individuals interested in trying skate skiing for the first time. The second group consists of experienced skaters from other sports, seeking a winter activity that keeps them fit and entertained.
To generate awareness for SP and skate skiing, the marketing strategy includes printed materials distributed at retail locations and competitive races, advertisements in local outdoor/sport journals, and sponsoring races and clinics. These initiatives aim to attract both participants and spectators.
SP forecasts profitability in year one, with net profit projected at 9.96% in year two and 13.26% in year three. Sales are expected to reach $235,082 in year two and $276,221 in year three. SP presents an exciting opportunity with an unmet market need, a well-designed business model, and an experienced management team.
1.1 Objectives:
– Create the #1 skate ski park in the Cascades.
– Offer convenient skiing to a wider audience.
– Achieve profitability within two years.
1.2 Mission:
Skate Park NW aims to create the premier skate skiing facility in the Cascades, appealing to professionals and beginners alike. Our goal is to ensure maximum customer satisfaction.
1.3 Keys to Success:
– Convenience: The facilities must be easily accessible to attract sufficient visitors.
– Quality: Regular grooming of the trails to maintain excellent conditions.
– Benchmark customer service: Providing top-notch customer service is our top priority.
Skate Park (SP) was established as a skate skiing park serving residents of Eugene, Salem, Bend, and surrounding communities. It provides 25 miles of groomed skate ski trails, rentals, and a lodge. SP meets the demand for skate skiing in the Willamette area of the Cascades, as currently, Mt. Bachelor is the only available option. SP caters to beginners and seasoned professionals.
2.1 Company Ownership:
SP is a privately-held Oregon Corporation with Sarah Sckeei as the principal stockholder.
2.2 Start-up Summary:
SP requires the following equipment for startup:
– Office equipment for three desk areas
– Ski rentals: 20 pairs of skis with bindings, 60 pairs of boots, and 25 pairs of poles
– Snowmobiles with grooming tractor pulls (2)
– Construction materials for lodge renovation
SP has secured an existing large cabin that will be renovated into a lodge and rental area. Through a licensing agreement with the National Forest Service, SP has obtained permission to use Forest roads as skate trails. These roads exhibit ideal characteristics for skate trails, including flat width-wise terrain, suitable width in feet, and passage through the mountains. The lodge will serve as the operations base, and the snowmobiles will be used to groom the extensive skate trails.
Additionally, SP will require the following equipment for its snack bar and small gift/pro shop:
– Microwave
– Commercial freezer and refrigerator
– Assorted serving dishes, pots, and utensils
– Unit electric heating elements (2)
– Espresso machine (subsidized by the espresso bean vendor)
– Shelves, display racks, and hanging units
– Cash register.
– Legal: $4,000
– Stationery: $100
– Brochures: $300
– Consultants: $4,000
– Insurance: $2,000
– Rent: $2,000
– Equipment: $26,000
– Building materials: $23,000
– Other: $5,656
– Total Start-up Expenses: $67,056
– Cash Required: $52,944
– Other Current Assets: $0
– Long-term Assets: $70,000
– Total Assets: $122,944
– $190,000
– $67,056
– $122,944
– $190,000
– $70,000
– $52,944
– $0
– $52,944
– $122,944
– $0
– $0
– $0
– $0
– $0
– $100,000
– $90,000
– $0
– $190,000
– ($67,056)
– $122,944
– $122,944
– $190,000
SP offers skate skiing trails, lessons, and rentals. Skate skiing is a new nordic skiing technique that uses a groomed trail with a hard packed snow surface. The skater places weight on one leg, pushing off and transferring weight onto the other ski. This technique was created by American Bill Koch 20 years ago and has become quite popular. SP will have a lodge open for rentals and rest.
Skate Park will have a limited snack bar serving prepared food items and warm drinks, including an automatic espresso machine. It will also offer hot chocolate and tea.
The market is divided into beginners and experienced users. SP’s strategy is to raise awareness about skate skiing and increase the number of participants. The lack of groomed trails in the area has been a limiting factor.
SP will target two groups:
– Beginners: Cross country skiers new to skate skiing or learning to ski.
– Experienced users: Skiers looking for groomed trails closer than Mt. Bachelor.
Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Potential Customers Growth Total
Beginners 23% 76,554 94,161 115,818 142,456 175,221 23.00%
Experienced 12% 34,887 39,073 43,762 49,013 54,895 12.00%
Total 19.87% 111,441 133,234 159,580 191,469 230,116 19.87%
4.2 Target Market Segment Strategy
SP is targeting two groups: beginners and experienced skiers. Beginners are individuals who are looking to try skate skiing after hearing about its benefits as cross training for running or cycling. They enjoy participating in various outdoor activities and are open to new challenges. Experienced skiers, on the other hand, are attracted to Skate Park NW because it offers excellent facilities and trails that are more convenient than those in Bend. These skiers come from the Willamette River Valley.
4.3 Service Business Analysis
Skate skiing, created by Bill Koch, an American Olympic XC skier, has gained popularity as an endurance sport that provides excellent cross training during the winter. Although Mt Bachelor is the only area in Oregon that currently offers groomed skate trails, as the popularity of skate skiing increases, more areas for this sport are expected to be developed.
4.3.1 Competition and Buying Patterns
In Oregon, Mt Bachelor in Bend is the only other venue that offers groomed skate trails. However, Skate Park NW provides a more accessible location for skaters from the Willamette River Valley. With the convenience and availability of venues, the adoption rates for skate skiing are expected to grow significantly.
Strategy and Implementation Summary
SP aims to attract both experienced skiers and beginners to its convenient location. To attract beginners, SP plans to raise awareness about skate skiing as a new and exciting sport. For experienced skiers, SP plans to provide a more accessible alternative to Bend by offering outstanding facilities and trails.
5.1 Competitive Edge
SP’s competitive edge lies in its convenience. It offers a convenient skate skiing option to people in Salem, Eugene, Portland, and surrounding communities. Currently, individuals interested in skate skiing have to drive to Bend, making SP’s location a competitive advantage.
5.2 Marketing Strategy
SP’s marketing strategy includes distributing printed materials at races, outdoor retail outlets, and advertising in local outdoor journals. SP also plans to sponsor races and clinics to generate interest and increased participation in skate skiing.
5.3 Sales Strategy
SP’s sales strategy focuses on encouraging new people to try skate skiing and attracting experienced skiers to SP instead of driving to Bend. By communicating with individuals interested in other human-powered activities, SP aims to educate them about skate skiing. SP also plans to organize a race series during the winter to cater to competitive athletes and maintain fitness levels.
5.3.1 Sales Forecast
SP forecasts strong and steady sales growth based on the assumption that skate skiing is still a relatively new sport with a steep adoption curve. Additionally, SP benefits from limited competition in nearby areas due to the specific land requirements for quality skate trails. SP has secured the use of a special area of land that offers perfect trails, further reducing competition from other venues. During the summer months, the lodge will serve as a home base for day hikes through the mountains.
Sales Forecast
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Food & Beverages | $14,437 | $17,775 | $23,225 |
| Beginners- ski related sales | $57,466 | $118,531 | $137,998 |
| Experienced- ski related sales | $53,814 | $98,776 | $114,998 |
| Total Sales | $125,717 | $235,082 | $276,221 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Food | $6,497 | $7,999 | $10,451 |
| Beginners | $5,747 | $9,878 | $11,500 |
| Experienced | $5,381 | $23,508 | $27,622 |
| Subtotal Direct Cost of Sales | $17,625 | $41,385 | $49,573 |
5.4 Milestones
– Business plan completion
– Secure building and lease for trails
– First race in series
– Profitability
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| B plan completion | 6/1/2002 | 1/15/2003 | $400 | Sarah | operations |
| Secure building lease | 1/1/2003 | 1/15/2003 | $500 | Sarah | operations |
| Opening day | 1/1/2003 | 1/15/2003 | $2,000 | Sarah | operations |
| First race | 1/1/2003 | 2/17/2003 | $3,000 | Sarah | marketing |
| Profitability | 1/1/2003 | 12/31/2003 | $0 | Sarah | operations |
| Totals | $5,900 | ||||
Web Plan Summary
A website will be used as a source of information disbursal. It will list services offered, directions, special events, etc.
6.1 Website Marketing Strategy
The website will be marketed by submitting the site to search engines and including the URL in all printed materials.
6.2 Development Requirements
The University of Oregon computer science students will be tapped to provide qualified, below-market programmers capable of quickly generating a professional website.
Management Summary
SP will be led by Sarah Sckeei, a veteran of the outdoor industry. After graduating from Panoma College, Sarah worked for an adventure guide service that provided various outdoor trips. Sarah spent seven years with this organization, leading trips for four years and managing the organization for the final three years. In her management role, Sarah increased sales by 37%. Following her time at the adventure guide service, Sarah obtained her MBA from the University of Oregon to further enhance her skills and analytical frameworks.
Following her MBA, Sarah worked at Mt. Bachelor, responsible for their skate skiing and snowshoe programs. After two years at Mt. Bachelor, Sarah decided to start her own business and began writing a business plan. Through her contacts, Sarah discovered the opportunity to lease National Forest Service access roads for ski trails. As the deal progressed, Sarah actively sought out capital and quickly raised the necessary funds.
7.1 Personnel Plan
– President: Operations and business development, assorted activities
– Groomer: Responsible for trail maintenance
– Rentals: Operates the rental facility
– Instructors: Paid hourly, working 20-30 hours a week, also assisting other staff when there are not enough customers for lessons. The business promotes a team-oriented environment where everyone helps each other.
– Misc: Assists in the snack shop and gift/pro shop, able to handle a range of tasks.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Sarah | $24,000 | $30,000 | $35,000 |
| Groomer | $13,500 | $13,500 | $13,500 |
| Rental | $18,000 | $22,000 | $25,000 |
| Instructor | $15,000 | $18,000 | $22,000 |
| Misc. | $13,500 | $13,500 | $13,500 |
| Total People | 8 | 8 | 8 |
| Total Payroll | $84,000 | $97,000 | $109,000 |
The following sections outline important financial information.
8.1 Important Assumptions
The following table details the important 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 |
The Break-even analysis indicates that approximately $13,500 in monthly revenue is needed to reach the Break-even point.
Break-even Analysis
Monthly Revenue Break-even: $13,588
Assumptions:
– Average Percent Variable Cost: 14%
– Estimated Monthly Fixed Cost: $11,683
Projected Profit and Loss:
The table and charts below illustrate the projected profit and loss.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $125,717 $235,082 $276,221
Direct Cost of Sales $17,625 $41,385 $49,573
Other Costs of Sales $0 $0 $0
Total Cost of Sales $17,625 $41,385 $49,573
Gross Margin $108,092 $193,698 $226,647
Gross Margin % 85.98% 82.40% 82.05%
Expenses
Payroll $84,000 $97,000 $109,000
Sales and Marketing and Other Expenses $3,600 $3,600 $3,600
Depreciation $13,992 $13,992 $13,992
Rent $16,500 $21,000 $21,000
Utilities $4,700 $5,300 $5,600
Insurance $4,800 $4,800 $4,800
Payroll Taxes $12,600 $14,550 $16,350
Other $0 $0 $0
Total Operating Expenses $140,192 $160,242 $174,342
Profit Before Interest and Taxes ($32,100) $33,456 $52,305
EBITDA ($18,108) $47,448 $66,297
Interest Expense $0 $0 $0
Taxes Incurred $0 $10,037 $15,692
Net Profit ($32,100) $23,419 $36,614
Net Profit/Sales -25.53% 9.96% 13.26%
8.4 Projected Cash Flow
The following table and chart indicate Projected Cash Flow.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash Sales $125,717 $235,082 $276,221
Subtotal Cash from Operations $125,717 $235,082 $276,221
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 $125,717 $235,082 $276,221
Expenditures
Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $84,000 $97,000 $109,000
Bill Payments $51,788 $100,434 $115,304
Subtotal Spent on Operations $135,788 $197,434 $224,304
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $135,788 $197,434 $224,304
Net Cash Flow ($10,071) $37,648 $51,916
Cash Balance $42,873 $80,522 $132,438
Projected Balance Sheet
Assets
Year 1 Year 2 Year 3
Current Assets
Cash $42,873 $80,522 $132,438
Other Current Assets $0 $0 $0
Total Current Assets $42,873 $80,522 $132,438
Long-term Assets
Long-term Assets $70,000 $70,000 $70,000
Accumulated Depreciation $13,992 $27,984 $41,976
Total Long-term Assets $56,008 $42,016 $28,024
Total Assets $98,881 $122,538 $160,462
Liabilities and Capital
Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $8,037 $8,274 $9,585
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $8,037 $8,274 $9,585
Long-term Liabilities $0 $0 $0
Total Liabilities $8,037 $8,274 $9,585
Paid-in Capital $190,000 $190,000 $190,000
Retained Earnings ($67,056) ($99,156) ($75,737)
Earnings ($32,100) $23,419 $36,614
Total Capital $90,844 $114,263 $150,877
Total Liabilities and Capital $98,881 $122,538 $160,462
Net Worth $90,844 $114,263 $150,877
Sales Growth 0.00% 86.99% 17.50% 3.50%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 27.24%
Total Current Assets 43.36% 65.71% 82.54% 33.11%
Long-term Assets 56.64% 34.29% 17.46% 66.89%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 8.13% 6.75% 5.97% 13.25%
Long-term Liabilities 0.00% 0.00% 0.00% 37.31%
Total Liabilities 8.13% 6.75% 5.97% 50.56%
Net Worth 91.87% 93.25% 94.03% 49.44%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.98% 82.40% 82.05% 100.00%
Selling, General & Administrative Expenses 111.51% 72.43% 68.80% 75.44%
Advertising Expenses 0.00% 0.00% 0.00% 1.71%
Profit Before Interest and Taxes -25.53% 14.23% 18.94% 1.72%
Main Ratios
Current 5.33 9.73 13.82 1.31
Quick 5.33 9.73 13.82 0.97
Total Debt to Total Assets 8.13% 6.75% 5.97% 57.21%
Pre-tax Return on Net Worth -35.33% 29.28% 34.67% 1.10%
Pre-tax Return on Assets -32.46% 27.30% 32.60% 2.56%
Additional Ratios
Net Profit Margin -25.53% 9.96% 13.26% n.a
Return on Equity -35.33% 20.50% 24.27% n.a
Activity Ratios
Accounts Payable Turnover 7.44 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 1.27 1.92 1.72 n.a
Debt Ratios
Debt to Net Worth 0.09 0.07 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $34,836 $72,247 $122,853 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.79 0.52 0.58 n.a
Current Debt/Total Assets 8% 7% 6% n.a
Acid Test 5.33 9.73 13.82 n.a
Sales/Net Worth 1.38 2.06 1.83 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Appendix
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 $5,431 $6,202 $9,100 $9,358 $2,784 $2,309 $2,284 $7,908 $14,583 $20,263 $20,096 $25,399
Direct Cost of Sales
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food $653 $698 $743 $788 $540 $326 $315 $259 $293 $540 $574 $770
Beginners $172 $201 $322 $329 $68 $68 $68 $400 $760 $1,040 $1,027 $1,292
Experienced $226 $264 $423 $432 $90 $90 $90 $333 $633 $867 $856 $1,077
Subtotal Direct Cost of Sales $1,051 $1,163 $1,488 $1,548 $698 $485 $473 $992 $1,686 $2,446 $2,456 $3,139
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
Sarah $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Groomer $1,500 $1,500 $1,500 $1,500 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500
Rental $1,500 $1,500 $1,500 $1,500 $0 $0 $0 $1,500 $1,500 $1,500 $3,000 $4,500
Instructor $1,500 $1,500 $1,500 $1,500 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $3,000
Misc. $1,500 $1,500 $1,500 $1,500 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 5 5 5 5 1 1 1 5 5 5 6 8
Total Payroll $8,000 $8,000 $8,000 $8,000 $2,000 $2,000 $2,000 $8,000 $8,000 $8,000 $9,500 $12,500
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:
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 | $5,431 | $6,202 | $9,100 | $9,358 | $2,784 | $2,309 | $2,284 | $7,908 | $14,583 | $20,263 | $20,096 | $25,399
Direct Cost of Sales | $1,051 | $1,163 | $1,488 | $1,548 | $698 | $485 | $473 | $992 | $1,686 | $2,446 | $2,456 | $3,139
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Total Cost of Sales | $1,051 | $1,163 | $1,488 | $1,548 | $698 | $485 | $473 | $992 | $1,686 | $2,446 | $2,456 | $3,139
Gross Margin | $4,381 | $5,039 | $7,613 | $7,810 | $2,086 | $1,824 | $1,811 | $6,916 | $12,897 | $17,817 | $17,640 | $22,260
Gross Margin % | 80.66% | 81.25% | 83.65% | 83.46% | 74.91% | 79.01% | 79.27% | 87.45% | 88.44% | 87.93% | 87.78% | 87.64%
Expenses |
Payroll | $8,000 | $8,000 | $8,000 | $8,000 | $2,000 | $2,000 | $2,000 | $8,000 | $8,000 | $8,000 | $9,500 | $12,500
Sales and Marketing and Other Expenses | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300
Depreciation | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166 | $1,166
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $500 | $500 | $500 | $500 | $500 | $2,000 | $2,000 | $2,000
Utilities | $600 | $600 | $600 | $600 | $100 | $100 | $100 | $100 | $100 | $600 | $600 | $600
Insurance | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400
Payroll Taxes | 15% | $1,200 | $1,200 | $1,200 | $1,200 | $300 | $300 | $300 | $1,200 | $1,200 | $1,200 | $1,425 | $1,875
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Total Operating Expenses | $13,666 | $13,666 | $13,666 | $13,666 | $4,766 | $4,766 | $4,766 | $11,666 | $11,666 | $13,666 | $15,391 | $18,841
Profit Before Interest and Taxes | ($9,285) | ($8,627) | ($6,053) | ($5,856) | ($2,680) | ($2,942) | ($2,955) | ($4,750) | $1,231 | $4,151 | $2,249 | $3,419
EBITDA | ($8,119) | ($7,461) | ($4,887) | ($4,690) | ($1,514) | ($1,776) | ($1,789) | ($3,584) | $2,397 | $5,317 | $3,415 | $4,585
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Net Profit | ($9,285) | ($8,627) | ($6,053) | ($5,856) | ($2,680) | ($2,942) | ($2,955) | ($4,750) | $1,231 | $4,151 | $2,249 | $3,419
Net Profit/Sales | -170.97% | -139.11% | -66.52% | -62.57% | -96.28% | -127.40% | -129.40% | -60.07% | 8.44% | 20.48% | 11.19% | 13.46%
Pro Forma Cash Flow:
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12
Cash Received |
Cash from Operations | $5,431 | $6,202 | $9,100 | $9,358 | $2,784 | $2,309 | $2,284 | $7,908 | $14,583 | $20,263 | $20,096 | $25,399
Subtotal Cash from Operations | $5,431 | $6,202 | $9,100 | $9,358 | $2,784 | $2,309 | $2,284 | $7,908 | $14,583 | $20,263 | $20,096 | $25,399
Additional Cash Received |
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0
Subtotal Cash Received | $5,431 | $6,202 | $9,100 | $9,358 | $2,784 | $2,309 | $2,284 | $7,908 | $14,583 | $20,263 | $20,096 | $25,399
Expenditures |
Expenditures from Operations |
Cash Spending | $8,000 | $8,000 | $8,000 | $8,000 | $2,000 | $2,000 | $2,000 | $8,000 | $8,000 | $8,000 | $9,500 | $12,500
Bill Payments | $185 | $5,554 | $5,673 | $5,990 | $5,923 | $2,291 | $2,084 | $2,121 | $3,515 | $4,278 | $6,954 | $7,219
Subtotal Spent on Operations | $8,185 | $13,554 | $13,673 | $13,990 | $7,923 | $4,291 | $4,084 | $10,121 | $11,515 | $12,278 | $16,454 | $19,719
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 | $0 | $0
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $52,944 | $50,190 | $42,837 | $38,264 | $33,633 | $28,494 | $26,511 | $24,711 | $22,498 | $25,565 | $33,551 | $37,193 | $42,873 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $52,944 | $50,190 | $42,837 | $38,264 | $33,633 | $28,494 | $26,511 | $24,711 | $22,498 | $25,565 | $33,551 | $37,193 | $42,873 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
| Accumulated Depreciation | $0 | $1,166 | $2,332 | $3,498 | $4,664 | $5,830 | $6,996 | $8,162 | $9,328 | $10,494 | $11,660 | $12,826 | $13,992 |
| Total Long-term Assets | $70,000 | $68,834 | $67,668 | $66,502 | $65,336 | $64,170 | $63,004 | $61,838 | $60,672 | $59,506 | $58,340 | $57,174 | $56,008 |
| Total Assets | $122,944 | $119,024 | $110,505 | $104,766 | $98,969 | $92,664 | $89,515 | $86,549 | $83,170 | $85,071 | $91,891 | $94,367 | $98,881 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $5,366 | $5,474 | $5,788 | $5,847 | $2,222 | $2,015 | $2,004 | $3,376 | $4,046 | $6,715 | $6,941 | $8,037 |
| 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 | $5,366 | $5,474 | $5,788 | $5,847 | $2,222 | $2,015 | $2,004 | $3,376 | $4,046 | $6,715 | $6,941 | $8,037 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $5,366 | $5,474 | $5,788 | $5,847 | $2,222 | $2,015 | $2,004 | $3,376 | $4,046 | $6,715 | $6,941 | $8,037 |
| Paid-in Capital | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 | $190,000 |
| Retained Earnings | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) | ($67,056) |
| Earnings | $0 | ($9,285) | ($17,912) | ($23,966) | ($29,822) | ($32,502) | ($35,444) | ($38,399) | ($43,150) | ($41,919) | ($37,768) | ($35,519)
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!