This business financial plan is the example of projected financials of a start up venture in Miami, FL. The purpose of this plan is to establish loan investment. These mattresses are made of natural fibers; The Open wooden slat base (replaces box-spring) contours to the spines every movement in Bedroom furniture. The Natural fiber Duvets pillows make the sleeping environment just the right temperature.
The business will advertise for combined forces with local living associations and other businesses to increase exposure. The website, Swiss Magazines, industrial exhibit events, local newspaper, participate in the Home Show/ Boat Show, E-mail blast to designers, Social Media (Face book, Twitter, Etc.) are the modes of marketing to be used for the business with the following budget:
|
First year |
$100,000 |
|
Second year |
$90,000 |
|
Third year |
$90,000 |
The company is expecting to sale 700 units with average price of $1,500
The Pricing List of the Mattresses is given below:
Corona Soft:
|
Half-Queen |
$660 |
|
Twin |
$680 |
|
Full Size |
$1,070 |
|
Queen Size (2HQ) |
$1,320 |
|
Queen Size (1) |
$1,200 |
|
King Size (2TW) |
$1,360 |
Viscomania
|
Half-Queen |
$640 |
|
Twin |
$660 |
|
Full Size |
$980 |
|
Queen Size (2HQ) |
$1,280 |
|
Queen Size (1) |
$1,097 |
|
King Size (2TW) |
$1,980 |
Slat-Bases
|
Half-Queen |
$880 |
|
Twin |
$915 |
|
Full Size |
$1,275 |
|
Queen Size (2HQ) |
$1,760 |
|
King(2TW) |
$1,830 |
Manual Adjustment Slatbases Epsilon
|
Half-Queen |
$730 |
|
Twin |
$775 |
|
Full Size |
$1,095 |
|
Queen Size (2HQ) |
$1,460 |
|
King (2TW) |
$1,550 |
Fixed Slatbases Epsilon
|
Half-Queen |
$490 |
|
Twin |
$540 |
|
Full Size |
$804 |
|
Queen Size (2HQ) |
$980 |
|
King (2TW) |
$1,080 |
Following are the expected start ups expenses of the company:
Licenses $300
Accountant $400
Lawyer$500
6-Month Payroll $20,000
6-Month Lease $ 45,000
Insurance property
Lease Deposit
Advertising
Delivery vehicle
Insurance (vehicle)
Office furniture and supplies
Computer equipment and phones
Inventory for merchandise $120,000
Other operating expenses apart from the few given in start ups are as follows:
Property Lease $4,500
Insurance for Property Lease $
Insurance for Vehicle $
The Total Loan Amount the company willing to apply is $500,000
| Income Statement 5 Years | |||||
| - | Year-1 | Year-2 | Year-3 | Year-4 | Year-5 |
| No. of customers | 700 | 910 | 1183 | 1537.9 | 1999.27 |
| Average payment/customer | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 |
| Revenues | $ 1,050,000 | $ 1,365,000 | $ 1,774,500 | $ 2,306,850 | $ 2,998,905 |
| Licenses | $ 300 | ||||
| Accountant | $ 400 | ||||
| Lawyer | $ 500 | ||||
| Payroll | $ 60,000 | $ 63,000 | $ 66,150 | $ 69,458 | $ 72,930 |
| Lease | $ 90,000 | $ 90,000 | $ 90,000 | $ 90,000 | $ 90,000 |
| Insurance property | $ 3,000 | $ 3,000 | $ 3,000 | $ 3,000 | $ 3,000 |
| Advertising | $ 84,000 | $ 88,200 | $ 92,610 | $ 97,241 | $ 102,103 |
| Web & Logo Expense | $ 20,000 | ||||
| Insurance (vehicle) | $ 3,000 | $ 3,150 | $ 3,308 | $ 3,473 | $ 3,647 |
| Interest | $ 22,950 | $ 18,331 | $ 13,476 | $ 8,372 | $ 3,008 |
| Depreciation | $ 700 | $ 700 | $ 700 | $ 700 | $ 700 |
| Total Operating Expenses | $ 284,850 | $ 266,381 | $ 269,243 | $ 272,243 | $ 275,387 |
| Operating Income | $ 765,150 | $ 1,098,619 | $ 1,505,257 | $ 2,034,607 | $ 2,723,518 |
| Tax @ 7% | $ 53,561 | $ 76,903 | $ 105,368 | $ 142,422 | $ 190,646 |
| Net Income | $ 711,590 | $ 1,021,716 | $ 1,399,889 | $ 1,892,184 | $ 2,532,871 |
| Income Statement Monthly Break Ups Year-1 | ||||||||||||
| - | Month-1 | Month-2 | Month-3 | Month-4 | Month-5 | Month-6 | Month-7 | Month-8 | Month-9 | Month-10 | Month-11 | Month-12 |
| No. of customers | 50 | 53 | 54 | 56 | 57 | 56 | 59 | 61 | 62 | 63 | 65 | 64 |
| Average payment/customer | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 |
| Revenues | $ 75,600 | $ 78,750 | $ 80,850 | $ 84,000 | $ 86,100 | $ 84,000 | $ 88,200 | $ 91,350 | $ 93,450 | $ 94,500 | $ 97,650 | $ 95,550 |
| Licenses | $ 300 | |||||||||||
| Accountant | $ 400 | |||||||||||
| Lawyer | $ 500 | |||||||||||
| Payroll | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 |
| Lease | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 | $ 7,500 |
| Insurance property | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 |
| Advertising | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 |
| Web & Logo Expense | 20000 | |||||||||||
| Insurance (vehicle) | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 | $ 250 |
| Interest | $ 2,083 | $ 2,053 | $ 2,022 | $ 1,991 | $ 1,960 | $ 1,929 | $ 1,898 | $ 1,866 | $ 1,835 | $ 1,803 | $ 1,771 | $ 1,739 |
| Depreciation | $ 700 | |||||||||||
| Total Operating Expenses | $ 43,283 | $ 22,053 | $ 22,022 | $ 21,991 | $ 21,960 | $ 21,929 | $ 21,898 | $ 21,866 | $ 21,835 | $ 21,803 | $ 21,771 | $ 22,439 |
| Operating Income | $ 32,317 | $ 56,697 | $ 58,828 | $ 62,009 | $ 64,140 | $ 62,071 | $ 66,302 | $ 69,484 | $ 71,615 | $ 72,697 | $ 75,879 | $ 73,111 |
| Tax @ 7% | $ 53,561 | |||||||||||
| Net Income | $ 32,317 | $ 56,697 | $ 58,828 | $ 62,009 | $ 64,140 | $ 62,071 | $ 66,302 | $ 69,484 | $ 71,615 | $ 72,697 | $ 75,879 | $ 19,550 |
| Cash Flow Statement 5 Years | |||||
| - | Year-1 | Year-2 | Year-3 | Year-4 | Year-5 |
| Net Income | $ 711,590 | $ 1,021,716 | $ 1,399,889 | $ 1,892,184 | $ 2,532,871 |
| Add Depreciation | $ 700 | $ 700 | $ 700 | $ 700 | $ 700 |
| Inventory | $ (120,000) | $ (20,000) | $ (10,000) | $ 30,000 | $ (10,000) |
| Cash Flow From Operating Activities | $ 592,290 | $ 1,002,416 | $ 1,390,589 | $ 1,922,884 | $ 2,523,571 |
| Lease Deposit | $ (23,000) | ||||
| Delivery vehicle | $ (5,000) | ||||
| Office furniture and supplies | $ (2,000) | ||||
| Cash Flow From investing Activities | $ (30,000) | $ - | $ - | $ - | $ - |
| Bank Loan Received | $ 500,000 | ||||
| Loan repayment | $ (90,278) | $ (94,896) | $ (99,751) | $ (104,855) | $ (110,219) |
| Cash Flow From Financing Activates | $ 409,722 | $ (94,896) | $ (99,751) | $ (104,855) | $ (110,219) |
| Opening Cash Balance | $ - | $ 972,012 | $ 1,879,531 | $ 3,170,368 | $ 4,988,398 |
| Ending Cash Balance | $ 972,012 | $ 1,879,531 | $ 3,170,368 | $ 4,988,398 | $ 7,401,750 |
| Cash Flow Statement Monthly Break Ups Year-1 |
| - | Month-1 | Month-2 | Month-3 | Month-4 | Month-5 | Month-6 |
| Net Income | $ 32,317 | $ 56,697 | $ 58,828 | $ 62,009 | $ 64,140 | $ 62,071 |
| Add Depreciation | $ - | $ - | $ - | $ - | $ - | $ - |
| Inventory | $ (120,000) | $ 2,000 | $ 3,000 | $ 5,000 | $ (10,000) | $ 2,000 |
| Cash Flow From Operating Activities | $ (87,683) | $ 58,697 | $ 61,828 | $ 67,009 | $ 54,140 | $ 64,071 |
| Lease Deposit | $ (23,000) | |||||
| Delivery vehicle | $ (5,000) | |||||
| Office furniture and supplies | $ (2,000) | |||||
| Cash Flow From investing Activities | $ (30,000) | $ - | $ - | $ - | $ - | $ - |
| Bank Loan Received | $ 500,000 | |||||
| Loan repayment | $ (7,352) | $ (7,383) | $ (7,414) | $ (7,445) | $ (7,476) | $ (7,507) |
| Cash Flow From Financing Activates | $ 492,648 | $ (7,383) | $ (7,414) | $ (7,445) | $ (7,476) | $ (7,507) |
| Opening Cash Balance | $ - | $ 374,964 | $ 426,279 | $ 480,693 | $ 540,258 | $ 586,922 |
| Ending Cash Balance | $ 374,964 | $ 426,279 | $ 480,693 | $ 540,258 | $ 586,922 | $ 643,486 |
| Month-7 | Month-8 | Month-9 | Month-10 | Month-11 | Month-12 |
| $ 66,302 | $ 69,484 | $ 71,615 | $ 72,697 | $ 75,879 | $ 19,550 |
| $ - | $ - | $ - | $ - | $ - | $ 700 |
| $ 3,000 | $ 5,000 | $ (10,000) | $ 5,000 | $ 5,000 | $ (10,000) |
| $ 69,302 | $ 74,484 | $ 61,615 | $ 77,697 | $ 80,879 | $ 10,250 |
| $ - | $ - | $ - | $ - | $ - | $ - |
| $ (7,538) | $ (7,569) | $ (7,601) | $ (7,633) | $ (7,664) | $ (7,696) |
| $ (7,538) | $ (7,569) | $ (7,601) | $ (7,633) | $ (7,664) | $ (7,696) |
| $ 643,486 | $ 705,251 | $ 772,165 | $ 826,179 | $ 896,244 | $ 969,458 |
| $ 705,251 | $ 772,165 | $ 826,179 | $ 896,244 | $ 969,458 | $ 972,012 |
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