Nonprofit Trade Association Business Plan

CMBA Proposal

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Financial Plan

7.0 Financial Plan

• We want to finance growth solely through cash flow. We recognize that this means we will have to grow more slowly than we might like but that no assessment of members or borrowing is necessary.
• The most important factor in our case is attention to details and to the plan. Therefore, we need to develop a permanent system of communication and accountability between the executive director and the board of directors and officers.
• We are also assuming beginning cash reserves on June 30th of $12,000 according the the Treasurer.

7.1 Important Assumptions

Notes for Sales chart for 1999-2000 (FY2000):

Revenues:

1. Dues revenue assumes 50 members (new and renewing) at $250 from Exec. Dir. visiting all potential members in state and calling potential associate members.
2. Meeting revenue assumes 20 people per monthly meeting paying $25 each for dinner and meeting.
3. Motorcycle Show revenue assumes 11,000 consumers @$10 and 20,000 sq ft @$1.
4. SuperRide revenue comes from Registrations, Exhibitors, Advertisers, Sponsors, and Specials. Separate chart is attached for projected SuperRide forecast.
5. Awards Banquet Revenue assumes 400 people paying $30 each plus $5,000 sponsorships.
6. Conference Revenue assumes 200 people paying $125 each plus $5,000 sponsors and exhibitors.

Costs:

1. Motorcycle Show costs include $10,000 for space, $9,000 advertising, $1,000 other costs.
2. SuperRide costs include Promotion expense, cost of Event, and General expenses such as credit card charges, postage for confirmations, etc.

General Assumptions

General Assumptions
	FY 2000	FY 2001	FY 2002
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	0.00%	0.00%	0.00%
Other	0	0	0

7.2 Projected Surplus or Deficit

Our projected profit and loss is shown on the following table, with sales increasing from more than $195K the first year to more than $263K the third. Profits may be applied to legislative activities, marketing activities, or held for contingencies.

The detailed monthly projections are included in the appendices.

Surplus and Deficit

Surplus and Deficit
	FY 2000	FY 2001	FY 2002
Funding	$195,000	$225,200	$263,200
Direct Cost	$128,550	$146,100	$170,100
Other	$0	$0	$0
	------------	------------	------------
Total Direct Cost	$128,550	$146,100	$170,100
Gross Surplus	$66,450	$79,100	$93,100
Gross Surplus %	34.08%	35.12%	35.37%
Expenses:
Payroll	$43,200	$49,000	$59,000
Sales and Marketing and Other Expenses	$1,380	$6,400	$7,450
Depreciation	$0	$0	$0
Rent	$6,000	$6,500	$7,000
Rent	$0	$0	$0
Telephone service	$1,200	$1,500	$1,800
Utilities	$0	$0	$0
Payroll Taxes	$3,888	$4,410	$5,310
Other	$0	$0	$0
	------------	------------	------------
Total Operating Expenses	$55,668	$67,810	$80,560
Surplus Before Interest and Taxes	$10,782	$11,290	$12,540
Interest Expense	$0	$0	$0
Taxes Incurred	$0	$0	$0
Net Surplus	$10,782	$11,290	$12,540
Net Surplus/Sales	5.53%	5.01%	4.76%

7.3 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

Cash



Cash Flow

Pro Forma Cash Flow
	FY 2000	FY 2001	FY 2002
Cash Received
Cash from Operations:
Cash Funding	$195,000	$225,200	$263,200
Cash from Receivables	$0	$0	$0
Subtotal Cash from Operations	$195,000	$225,200	$263,200
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	$195,000	$225,200	$263,200
Expenditures	FY 2000	FY 2001	FY 2002
Expenditures from Operations:
Cash Spending	$13,713	$16,050	$18,635
Payment of Accounts Payable	$168,948	$197,595	$231,731
Subtotal Spent on Operations	$182,661	$213,645	$250,366
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	$182,661	$213,645	$250,366
Net Cash Flow	$12,339	$11,555	$12,834
Cash Balance	$24,339	$35,895	$48,728

7.4 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

Balance Sheet

Pro Forma Balance Sheet
Assets
Current Assets	FY 2000	FY 2001	FY 2002
Cash	$24,339	$35,895	$48,728
Other Current Assets	$0	$0	$0
Total Current Assets	$24,339	$35,895	$48,728
Long-term Assets
Long-term Assets	$0	$0	$0
Accumulated Depreciation	$0	$0	$0
Total Long-term Assets	$0	$0	$0
Total Assets	$24,339	$35,895	$48,728
Liabilities and Capital
Current Liabilities	FY 2000	FY 2001	FY 2002
Accounts Payable	$1,557	$1,823	$2,116
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$1,557	$1,823	$2,116
Long-term Liabilities	$0	$0	$0
Total Liabilities	$1,557	$1,823	$2,116
Paid-in Capital	$0	$0	$0
Accumulated Surplus/Deficit	$12,000	$22,782	$34,072
Surplus/Deficit	$10,782	$11,290	$12,540
Total Capital	$22,782	$34,072	$46,612
Total Liabilities and Capital	$24,339	$35,895	$48,728
Net Worth	$22,782	$34,072	$46,612