wedding consultant business plan
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Table of Contents
1.0 Executive Summary......................................................................................................................11.1 Mission...........................................................................................................................................11.2 Objectives.....................................................................................................................................11.3 Keys to Success..........................................................................................................................1
2.0 Company Summary......................................................................................................................12.1 Company Ownership................................................................................................................22.2 Start-up Summary.....................................................................................................................2
Table: Start-up...............................................................................................................................2Table: Start-up Funding..............................................................................................................3Chart: Start-up...............................................................................................................................4
2.3 Company Locations and Facilities.......................................................................................43.0 Services.............................................................................................................................................44.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................4Table: Market Analysis................................................................................................................5Chart: Market Analysis (Pie)......................................................................................................5
4.2 Target Market Segment Strategy........................................................................................64.2.1 Market Needs......................................................................................................................6
4.3 Service Business Analysis......................................................................................................64.3.1 Competition and Buying Patterns................................................................................6
5.0 Strategy and Implementation Summary..............................................................................75.1 Competitive Edge......................................................................................................................75.2 Sales Strategy.............................................................................................................................7
Chart: Sales by Year.....................................................................................................................7Table: Sales Forecast...................................................................................................................8Chart: Sales Monthly....................................................................................................................8
6.0 Management Summary...............................................................................................................96.1 Personnel Plan............................................................................................................................9
Table: Personnel............................................................................................................................97.0 Financial Plan..................................................................................................................................9
7.1 Break-even Analysis...............................................................................................................10Table: Break-even Analysis.....................................................................................................10Chart: Break-even Analysis.....................................................................................................10
7.2 Projected Profit and Loss......................................................................................................11Table: Profit and Loss................................................................................................................11Chart: Profit Monthly..................................................................................................................12Chart: Profit Yearly.....................................................................................................................12Chart: Gross Margin Monthly..................................................................................................13Chart: Gross Margin Yearly......................................................................................................13
7.3 Projected Cash Flow...............................................................................................................14Chart: Cash....................................................................................................................................14Table: Cash Flow.........................................................................................................................15Table: General Assumptions...................................................................................................15
7.4 Projected Balance Sheet.......................................................................................................167.4 Projected Balance Sheet.......................................................................................................16
Table: Balance Sheet.................................................................................................................16
Page 1
Table of Contents
7.5 Business Ratios........................................................................................................................17Table: Ratios.................................................................................................................................17
Table: Sales Forecast...........................................................................................................................1Table: Personnel....................................................................................................................................2Table: Personnel....................................................................................................................................2Table: General Assumptions.............................................................................................................3Table: General Assumptions.............................................................................................................3Table: Profit and Loss..........................................................................................................................4Table: Profit and Loss..........................................................................................................................4Table: Cash Flow...................................................................................................................................5Table: Cash Flow...................................................................................................................................5Table: Balance Sheet...........................................................................................................................6Table: Balance Sheet...........................................................................................................................6
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TLC Wedding Consultants
1.0 Executive Summary
TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.
1.1 Mission
TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding or anniversary party, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.
1.2 Objectives
Whether this is our client's first wedding, a renewal of their vows or their anniversary, we want every detail of their event to be both a pleasurable and a memorable experience. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are confident that this business venture will be a success and we estimate that our net income will increase modestly by the second year.
1.3 Keys to Success
The keys to our success are as follows:
1. Service our clients' needs promptly and efficiently. 2. Maintain an excellent working relationships with vendors such as florists, hair salons and
bridal shops. 3. Maintain a professional image at all times.
2.0 Company Summary
TLC Wedding Consultants is a start-up company that provides wedding, holy union, and anniversary consulting services to brides, grooms and other family members. We are a full-service bridal consulting group and our goal is to put the "fun" back into planning a wedding, holy union or anniversary party. Too many people become overly stressed and frustrated when planning these wonderful events. We are experienced and professional consultants and will use our expertise to help create memorable and stress free events for our customers. By doing this, our clients can sit back and enjoy their event. The result? We create events suited to the couple's unique style--a true expression of their relationship and individuality as a couple.
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TLC Wedding Consultants
2.1 Company Ownership
This business will start out as a simple proprietorship, owned by its founders, Darla and Micah Johnson. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suite the future business needs.
2.2 Start-up Summary
The company founders, Darla and Micah Johnson, will handle day-to-day operations of the plan and will work collaboratively to ensure that this business venture is a success.
We estimate that our start-up costs will be $3,000 (including legal costs, logo design, advertising, direct mail, and related expenses). An additional $5,000 will be required in the bank account as an operating capital for the first two months of operation. The start-up costs are to be financed in equal portions by the owners' personal funds (i.e., Darla and Micah Johnson are investing $4,000 each).
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $200 Stationery etc. $450 Brochures $450 Insurance $300 Research and development $200 Expensed equipment $900 Other $500 Total Start-up Expenses $3,000
Start-up Assets
Cash Required $5,000 Other Current Assets $0 Long-term Assets $0 Total Assets $5,000
Total Requirements $8,000
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TLC Wedding Consultants
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $3,000 Start-up Assets to Fund $5,000 Total Funding Required $8,000
Assets
Non-cash Assets from Start-up $0 Cash Requirements from Start-up $5,000 Additional Cash Raised $0 Cash Balance on Starting Date $5,000 Total Assets $5,000
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
Darla Johnson $4,000 Micah Johnson $4,000 Additional Investment Requirement $0 Total Planned Investment $8,000
Loss at Start-up (Start-up Expenses) ($3,000)Total Capital $5,000
Total Capital and Liabilities $5,000
Total Funding $8,000
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TLC Wedding Consultants
Chart: Start-up
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Expenses Assets Investment Loans
Start-up
2.3 Company Locations and Facilities
Initially this will be a home-based business; however, by Year 5, we intend to expand our facilities into a well-equipped and operational office.
3.0 Services
We are a full-service wedding consultant group and provide the following services: etiquette advice, event scheduling, discounted invitations and products, vendor confirmation, rehearsal attendance, supervision of both ceremony and reception setup and budget planning.
4.0 Market Analysis Summary
Nearly $35 billion are spent every year on weddings and receptions. Therefore, professional wedding consultants are a commodity, not a calamity. TLC Wedding Consultants are full-service wedding consultants that offer a variety of services to our clients. We pride ourselves on being professional and courteous at all times and we have packages to suit everyone's needs.
As previously stated, marriage is a billion dollar industry, therefore, just about everyone we meet is a potential client. However, we mostly advertise to brides, grooms, and family members.
4.1 Market Segmentation
Although the flash and excitement of impending nuptials can be intoxicating, it can also be overwhelming. Therefore, we primarily market our services to the people who need them most--brides and grooms. In 1997, 2.4 million marriages took place in the United States. According to the Encarta Encyclopedia, the current US marriage rate of nine marriages per 1,000 people is still the highest rate among the industrialized countries. This marriage rate is expected to remain at the same level in the near future. In the Eugene, OR area where TLC Wedding
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TLC Wedding Consultants
Consultants plans to operate their business, over 1,500 marriages are registered each year, which creates a sizable market potential for this line of business.
Another customer segment is represented by the numerous family members and guests attending weddings, anniversaries, and similar events. This segment requires event preparation services like gift ideas, etiquette tips, etc.
Besides the wedding arrangements, which TLC Wedding Consultants believe to be their major client assignments, other events the company will provide services to include corporate retreats, etiquette training, etc. This customer segment is estimated to have the annual volume of 1,000 orders in the Eugene, OR area.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Brides & Grooms 5% 1,500 1,575 1,654 1,737 1,824 5.01% Family Members 5% 5,000 5,250 5,513 5,789 6,078 5.00% Other 5% 1,000 1,050 1,103 1,158 1,216 5.01% Total 5.00% 7,500 7,875 8,270 8,684 9,118 5.00%
Chart: Market Analysis (Pie)
Brides & Grooms
Family Members
Other
Market Analysis (Pie)
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TLC Wedding Consultants
4.2 Target Market Segment Strategy
TLC Wedding Consultants will offer its services mostly to the brides and grooms, as well as to the family members. The company will position itself as an experienced provider of wedding planning services. Unlike most of its competitors, TLC will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. This will significantly reduce the customers' time and efforts preparing for such an important event as a wedding. Moreover, by utilizing numerous supplier contacts that the company owners have established and economies of scale, TLC Wedding Consultants will be able to pass on to its customers sizable cost savings.
4.2.1 Market Needs
The market needs for wedding planning services are strongly shaped by the customers' desire to have a perfectly planned and executed wedding ceremony. Although both major customer segments, brides and grooms and family members, plan and budget for the wedding ceremony as far as a year or more in advance, they often realize that they cannot make all the necessary preparations by themselves in a cost effective manner. Strongly affected by the established social values, such customers seek professional advice to ensure that all the important aspects of the wedding ceremony meet or exceed perceived expectations.
4.3 Service Business Analysis
The wedding services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services. There are numerous florists, hair stylists, and caterers to choose from. However, there are almost no companies that will provide the full range of services associated with the wedding planning and execution.
4.3.1 Competition and Buying Patterns
Competitive analysis conducted by the company owners has shown that there are 20 companies currently offering some sort of wedding planning services in the Eugene area. However, the majority of the incumbent competitors offer only a limited line of services like catering, flower arrangements or gifts. In fact, of these 25 competitors only three offered a range of services comparable with what TLC Wedding Consultants plan to offer to its customers. The following is the list of the major competitors with a brief description of their services:
Rent-An-Action offers ceremony preparation, rehearsing and execution services. Cross & Reeves provide flower and catering arrangements and wedding consulting services. Lafayette Wedding offers its clients entertaining, catering, floral design and hair styling
services.
The market research has also shown that customers anticipate the complete wedding consulting services to be expensive and they budget accordingly. In fact, lower prices are very often associated with poor service quality. By aggregating a complete range of wedding services under one roof, TLC Wedding Consultants will offer its customers the ease of one-stop shopping.
5.0 Strategy and Implementation Summary
Our strategy is simple: we intend to provide our customers with a wide range of services custom tailored to their individual needs. Therefore, whether they require a complete package, or simply consulting on a particular service, we can help.
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TLC Wedding Consultants
5.1 Competitive Edge
By aggregating a complete range of wedding services under one roof, TLC Wedding Consultants will offer its customers the ease of one-stop shopping. The company will leverage its owners' expertise in planning such events to competitively position itself as a premier provider of wedding services. Both owners have very strong communication skills that will help develop the 'buzz' about the high quality of the services offered by TLC Wedding Consultants.
5.2 Sales Strategy
The company's sales strategy will be based on the following elements:
Advertising in the Yellow Pages - two inch by three inch ads describing the services will be placed in the local Yellow Pages.
Placing advertisements in the local press, including The Register Guard, Eugene Weekly, The Oregon Daily Emerald.
Developing affiliate relationships with other service providers (florists, hair stylists, caterers) that would receive a percentage of sales to the referred customers.
Word of mouth referrals - generating sales leads in the local community through customer referrals.
Chart: Sales by Year
Brides & Grooms
Family Members
Other
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Year 1 Year 2 Year 3
Sales by Year
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Brides & Grooms $54,200 $65,040 $71,544 Family Members $25,800 $30,960 $34,056
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TLC Wedding Consultants
Other $15,300 $18,360 $20,196 Total Sales $95,300 $114,360 $125,796
Direct Cost of Sales Year 1 Year 2 Year 3Row 1 $0 $0 $0 Row 1 $0 $0 $0 Other $0 $0 $0 Subtotal Direct Cost of Sales $0 $0 $0
Chart: Sales Monthly
Brides & Grooms
Family Members
Other
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$10,000
Mon
th 1 M
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TLC Wedding Consultants
6.0 Management Summary
Our wedding consultants are Darla and Micah Johnson. Collaboratively they have planned and serviced over 150 weddings and receptions. They are knowledgeable about all areas of planning, decorating, as well as budgeting. Darla has a BS in Communications and a minor in Interior Decorating. She has been a wedding consultant for five years and became interested in providing consultant services when she successfully planned her first five weddings for family and friends. Since then, Darla has received extensive training in wedding planning and her certification from the National Association of Wedding Consultants and Professional Wedding Planners. Micah has an Associates Degree in Fashion Design, and, like Darla, she became interested in becoming a consultant when she successfully planned her first three weddings. Micah received her certification from the National Association of Wedding Consultants and has been a wedding planner for three years. Micah enjoys all aspects of planning traditional and nontraditional weddings.
6.1 Personnel Plan
Initially, TLC Wedding Consultants' personnel will include only the two owners, both of whom will be working full time. As the personnel plan shows, we expect to hire an additional wedding consultant in the next year This person will work full time, but will not be included in the management decisions.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Owner $53,100 $76,200 $85,800 Other $0 $0 $0 Total People 0 0 0
Total Payroll $53,100 $76,200 $85,800
7.0 Financial Plan
The following subtopics represent the financial plan of TLC Wedding Consultants.
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TLC Wedding Consultants
7.1 Break-even Analysis
The following table and chart summarize our break-even analysis.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $4,804
Assumptions:
Average Percent Variable Cost 0% Estimated Monthly Fixed Cost $4,804
Chart: Break-even Analysis
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Break-even Analysis
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TLC Wedding Consultants
7.2 Projected Profit and Loss
Our projected profit and loss is shown in the following table.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $95,300 $114,360 $125,796 Direct Cost of Sales $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $0 $0 $0
Gross Margin $95,300 $114,360 $125,796 Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $53,100 $76,200 $85,800 Sales and Marketing and Other Expenses $4,550 $1,000 $2,000 Depreciation $0 $0 $0 Leased Equipment $0 $0 $0 Utilities $0 $0 $0 Insurance $0 $0 $0 Rent $0 $0 $0 Payroll Taxes $0 $0 $0 Other $0 $0 $0
Total Operating Expenses $57,650 $77,200 $87,800
Profit Before Interest and Taxes $37,650 $37,160 $37,996 EBITDA $37,650 $37,160 $37,996 Interest Expense $0 $0 $0 Taxes Incurred $9,443 $9,290 $9,657
Net Profit $28,208 $27,870 $28,339 Net Profit/Sales 29.60% 24.37% 22.53%
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TLC Wedding Consultants
Chart: Profit Monthly
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Profit Monthly
Chart: Profit Yearly
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TLC Wedding Consultants
Chart: Gross Margin Monthly
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Gross Margin Monthly
Chart: Gross Margin Yearly
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TLC Wedding Consultants
7.3 Projected Cash Flow
The following chart and table show our cash flow projections.
Chart: Cash
Net Cash Flow
Cash Balance
$0
$3,000
$6,000
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Month 1 Month 2
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Month 5 Month 6
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Month 9 Month 10
Month 11 Month 12
Cash
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TLC Wedding Consultants
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $38,120 $45,744 $50,318 Cash from Receivables $45,494 $66,279 $74,075 Subtotal Cash from Operations $83,614 $112,023 $124,394
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 $83,614 $112,023 $124,394
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $53,100 $76,200 $85,800 Bill Payments $12,748 $10,689 $11,545 Subtotal Spent on Operations $65,848 $86,889 $97,345
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 $65,848 $86,889 $97,345
Net Cash Flow $17,766 $25,134 $27,049 Cash Balance $22,766 $47,900 $74,949
Table: General Assumptions
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 25.42% 25.00% 25.42% Other 0 0 0
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TLC Wedding Consultants
7.4 Projected Balance Sheet
Three years of annual totals are presented in the Projected Balance Sheet below. First year monthly figures are included in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $22,766 $47,900 $74,949 Accounts Receivable $11,686 $14,023 $15,426 Other Current Assets $0 $0 $0 Total Current Assets $34,452 $61,923 $90,374
Long-term Assets
Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $0 $0 $0 Total Assets $34,452 $61,923 $90,374
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $1,245 $846 $958 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $1,245 $846 $958
Long-term Liabilities $0 $0 $0 Total Liabilities $1,245 $846 $958
Paid-in Capital $8,000 $8,000 $8,000 Retained Earnings ($3,000) $25,208 $53,078 Earnings $28,208 $27,870 $28,339 Total Capital $33,208 $61,078 $89,416 Total Liabilities and Capital $34,452 $61,923 $90,374
Net Worth $33,207 $61,078 $89,416
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TLC Wedding Consultants
7.5 Business RatiosThe following table outlines some of the more important ratios from the Personal Services industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 7299.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 20.00% 10.00% 17.90%
Percent of Total Assets
Accounts Receivable 33.92% 22.65% 17.07% 11.10% Other Current Assets 0.00% 0.00% 0.00% 37.10% Total Current Assets 100.00% 100.00% 100.00% 52.80% Long-term Assets 0.00% 0.00% 0.00% 47.20% Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 3.61% 1.37% 1.06% 33.90% Long-term Liabilities 0.00% 0.00% 0.00% 28.00% Total Liabilities 3.61% 1.37% 1.06% 61.90% Net Worth 96.39% 98.63% 98.94% 38.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 100.00% 100.00% 100.00% 0.00% Selling, General & Administrative Expenses 70.37% 75.63% 77.35% 72.70% Advertising Expenses 3.52% 0.87% 1.59% 2.20% Profit Before Interest and Taxes 39.51% 32.49% 30.20% 4.00%
Main Ratios
Current 27.68 73.22 94.32 1.81 Quick 27.68 73.22 94.32 1.33 Total Debt to Total Assets 3.61% 1.37% 1.06% 61.90% Pre-tax Return on Net Worth 113.38% 60.84% 42.49% 6.30% Pre-tax Return on Assets 109.28% 60.01% 42.04% 16.60%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 29.60% 24.37% 22.53% n.aReturn on Equity 84.94% 45.63% 31.69% n.a
Activity Ratios
Accounts Receivable Turnover 4.89 4.89 4.89 n.aCollection Days 57 68 71 n.aAccounts Payable Turnover 11.24 12.17 12.17 n.aPayment Days 27 37 28 n.aTotal Asset Turnover 2.77 1.85 1.39 n.a
Debt Ratios
Debt to Net Worth 0.04 0.01 0.01 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $33,207 $61,078 $89,416 n.aInterest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.36 0.54 0.72 n.aCurrent Debt/Total Assets 4% 1% 1% n.aAcid Test 18.29 56.64 78.22 n.aSales/Net Worth 2.87 1.87 1.41 n.aDividend Payout 0.00 0.00 0.00 n.a
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Appendix
Table: 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
Brides & Grooms 0% $2,900 $3,100 $3,300 $3,500 $4,000 $5,400 $4,600 $5,000 $5,200 $5,500 $5,700 $6,000 Family Members 0% $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 Other 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,300 $1,300 $1,300 $1,300 $1,300 $1,400 $1,400 Total Sales $5,700 $6,000 $6,300 $6,600 $7,200 $8,800 $8,100 $8,600 $8,900 $9,300 $9,700 $10,100
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
Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Owner 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,700 $5,700 $5,700 Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,700 $5,700 $5,700
Page 2
Appendix
Table: 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% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: 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 $5,700 $6,000 $6,300 $6,600 $7,200 $8,800 $8,100 $8,600 $8,900 $9,300 $9,700 $10,100
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $5,700 $6,000 $6,300 $6,600 $7,200 $8,800 $8,100 $8,600 $8,900 $9,300 $9,700 $10,100
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,700 $5,700 $5,700
Sales and Marketing and Other Expenses
$1,100 $250 $250 $250 $600 $250 $250 $250 $600 $250 $250 $250
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,100 $4,250 $4,250 $4,250 $4,600 $4,250 $4,250 $4,250 $4,600 $5,950 $5,950 $5,950
Profit Before Interest and Taxes $600 $1,750 $2,050 $2,350 $2,600 $4,550 $3,850 $4,350 $4,300 $3,350 $3,750 $4,150
EBITDA $600 $1,750 $2,050 $2,350 $2,600 $4,550 $3,850 $4,350 $4,300 $3,350 $3,750 $4,150
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $180 $438 $513 $588 $650 $1,138 $963 $1,088 $1,075 $838 $938 $1,038
Net Profit $420 $1,313 $1,538 $1,763 $1,950 $3,413 $2,888 $3,263 $3,225 $2,513 $2,813 $3,113
Net Profit/Sales 7.37% 21.88% 24.40% 26.70% 27.08% 38.78% 35.65% 37.94% 36.24% 27.02% 28.99% 30.82%
Page 4
Appendix
Table: Cash Flow
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
Cash Sales $2,280 $2,400 $2,520 $2,640 $2,880 $3,520 $3,240 $3,440 $3,560 $3,720 $3,880 $4,040
Cash from Receivables $0 $114 $3,426 $3,606 $3,786 $3,972 $4,352 $5,266 $4,870 $5,166 $5,348 $5,588
Subtotal Cash from Operations $2,280 $2,514 $5,946 $6,246 $6,666 $7,492 $7,592 $8,706 $8,430 $8,886 $9,228 $9,628
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $2,280 $2,514 $5,946 $6,246 $6,666 $7,492 $7,592 $8,706 $8,430 $8,886 $9,228 $9,628
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,700 $5,700 $5,700
Bill Payments $43 $1,260 $690 $765 $851 $1,255 $1,382 $1,217 $1,349 $1,655 $1,091 $1,191
Subtotal Spent on Operations $4,043 $5,260 $4,690 $4,765 $4,851 $5,255 $5,382 $5,217 $5,349 $7,355 $6,791 $6,891
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 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,043 $5,260 $4,690 $4,765 $4,851 $5,255 $5,382 $5,217 $5,349 $7,355 $6,791 $6,891
Net Cash Flow ($1,763) ($2,746) $1,256 $1,481 $1,815 $2,237 $2,210 $3,489 $3,081 $1,531 $2,437 $2,737
Cash Balance $3,237 $491 $1,747 $3,228 $5,043 $7,280 $9,491 $12,980 $16,061 $17,592 $20,029 $22,766
Page 5
Appendix
Table: Balance Sheet
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 $5,000 $3,237 $491 $1,747 $3,228 $5,043 $7,280 $9,491 $12,980 $16,061 $17,592 $20,029 $22,766 Accounts Receivable $0 $3,420 $6,906 $7,260 $7,614 $8,148 $9,456 $9,964 $9,858 $10,328 $10,742 $11,214 $11,686 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $5,000 $6,657 $7,397 $9,007 $10,842 $13,191 $16,736 $19,455 $22,838 $26,389 $28,334 $31,243 $34,452
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Assets $5,000 $6,657 $7,397 $9,007 $10,842 $13,191 $16,736 $19,455 $22,838 $26,389 $28,334 $31,243 $34,452
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 $1,237 $665 $737 $810 $1,208 $1,341 $1,172 $1,293 $1,619 $1,051 $1,148 $1,245 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 $1,237 $665 $737 $810 $1,208 $1,341 $1,172 $1,293 $1,619 $1,051 $1,148 $1,245
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $0 $1,237 $665 $737 $810 $1,208 $1,341 $1,172 $1,293 $1,619 $1,051 $1,148 $1,245
Paid-in Capital $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Retained Earnings ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000)Earnings $0 $420 $1,733 $3,270 $5,033 $6,983 $10,395 $13,283 $16,545 $19,770 $22,283 $25,095 $28,208 Total Capital $5,000 $5,420 $6,733 $8,270 $10,033 $11,983 $15,395 $18,283 $21,545 $24,770 $27,283 $30,095 $33,208 Total Liabilities and Capital $5,000 $6,657 $7,397 $9,007 $10,842 $13,191 $16,736 $19,455 $22,838 $26,389 $28,334 $31,243 $34,452
Net Worth $5,000 $5,420 $6,733 $8,270 $10,033 $11,983 $15,395 $18,283 $21,545 $24,770 $27,282 $30,095 $33,207
Page 6
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