Everywhere Assistant

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Administrative Service Business Plan

Financial Plan

The following sections will outline important financial information.

8.1 Important Assumptions

The following table details important Financial 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

8.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even $2,913
Assumptions:
Average Percent Variable Cost 5%
Estimated Monthly Fixed Cost $2,767

8.3 Projected Profit and Loss

The following table and charts will indicate Projected Profit and Loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $20,240 $39,668 $50,418
Direct Cost of Sales $1,012 $1,983 $2,521
Other Costs of Sales $0 $0 $0
Total Cost of Sales $1,012 $1,983 $2,521
Gross Margin $19,228 $37,684 $47,897
Gross Margin % 95.00% 95.00% 95.00%
Expenses
Payroll $24,000 $24,000 $24,000
Sales and Marketing and Other Expenses $1,200 $1,200 $750
Depreciation $1,404 $1,404 $1,404
Rent $1,800 $1,800 $1,800
Utilities $600 $600 $600
Insurance $600 $600 $600
Payroll Taxes $3,600 $3,600 $3,600
Other $0 $0 $0
Total Operating Expenses $33,204 $33,204 $32,754
Profit Before Interest and Taxes ($13,976) $4,480 $15,143
EBITDA ($12,572) $5,884 $16,547
Interest Expense $0 $0 $0
Taxes Incurred $0 $1,344 $4,543
Net Profit ($13,976) $3,136 $10,600
Net Profit/Sales -69.05% 7.91% 21.02%

8.4 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $5,060 $9,917 $12,604
Cash from Receivables $10,641 $25,393 $35,402
Subtotal Cash from Operations $15,701 $35,310 $48,006
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 $15,701 $35,310 $48,006
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $24,000 $24,000 $24,000
Bill Payments $8,026 $10,999 $14,144
Subtotal Spent on Operations $32,026 $34,999 $38,144
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 $32,026 $34,999 $38,144
Net Cash Flow ($16,326) $312 $9,863
Cash Balance $474 $786 $10,649

8.5 Projected Balance Sheet

The following table provides information regarding the Projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $474 $786 $10,649
Accounts Receivable $4,539 $8,897 $11,308
Other Current Assets $0 $0 $0
Total Current Assets $5,014 $9,683 $21,957
Long-term Assets
Long-term Assets $7,000 $7,000 $7,000
Accumulated Depreciation $1,404 $2,808 $4,212
Total Long-term Assets $5,596 $4,192 $2,788
Total Assets $10,610 $13,875 $24,745
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $786 $915 $1,185
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $786 $915 $1,185
Long-term Liabilities $0 $0 $0
Total Liabilities $786 $915 $1,185
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings ($6,200) ($20,176) ($17,040)
Earnings ($13,976) $3,136 $10,600
Total Capital $9,824 $12,960 $23,560
Total Liabilities and Capital $10,610 $13,875 $24,745
Net Worth $9,824 $12,960 $23,560

8.6 Business Ratios

The following table provides information regarding business ratios specific to Everywhere Assistant as well as rations specific to the Administrative Service Consultant industry. Please note that making a comparison of a virtual assistant and a administrative service consultant is a difficult comparison.  It is expected that the ratios will be quite different between the two as a VA is a home based, in this case single individual business.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 95.98% 27.10% 6.98%
Percent of Total Assets
Accounts Receivable 42.79% 64.12% 45.70% 26.80%
Other Current Assets 0.00% 0.00% 0.00% 43.95%
Total Current Assets 47.26% 69.79% 88.73% 75.76%
Long-term Assets 52.74% 30.21% 11.27% 24.24%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.41% 6.59% 4.79% 31.78%
Long-term Liabilities 0.00% 0.00% 0.00% 17.26%
Total Liabilities 7.41% 6.59% 4.79% 49.04%
Net Worth 92.59% 93.41% 95.21% 50.96%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.00% 95.00% 95.00% 100.00%
Selling, General & Administrative Expenses 164.05% 87.09% 73.98% 85.31%
Advertising Expenses 0.00% 0.00% 0.00% 1.02%
Profit Before Interest and Taxes -69.05% 11.29% 30.03% 1.90%
Main Ratios
Current 6.38 10.59 18.53 1.88
Quick 6.38 10.59 18.53 1.48
Total Debt to Total Assets 7.41% 6.59% 4.79% 3.41%
Pre-tax Return on Net Worth -142.26% 34.57% 64.27% 55.78%
Pre-tax Return on Assets -131.73% 32.29% 61.20% 7.72%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -69.05% 7.91% 21.02% n.a
Return on Equity -142.26% 24.20% 44.99% n.a
Activity Ratios
Accounts Receivable Turnover 3.34 3.34 3.34 n.a
Collection Days 55 82 98 n.a
Accounts Payable Turnover 11.21 12.17 12.17 n.a
Payment Days 27 28 27 n.a
Total Asset Turnover 1.91 2.86 2.04 n.a
Debt Ratios
Debt to Net Worth 0.08 0.07 0.05 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $4,228 $8,768 $20,772 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.52 0.35 0.49 n.a
Current Debt/Total Assets 7% 7% 5% n.a
Acid Test 0.60 0.86 8.99 n.a
Sales/Net Worth 2.06 3.06 2.14 n.a
Dividend Payout 0.00 0.00 0.00 n.a