The basis for planning has been to look forward with conservative estimates for revenue and expenses. We are committed to the steady growth of revenues through tight control of all inventory, services, and managing sponsorship funds. Our financial plan focus will be to remain profitable while building adequate cash reserves for further stages of development.
We anticipate carrying one month worth of inventory, with the concession turning over more often, and the majority of items in the sales areas will be sold on cash basis, while the website sales will be mostly by credit card (unless customers request a hold at the box office for cash payment). The majority of items in the gallery will be sold on consignment and therefore do not affect inventory turnover.
Our personnel burden will be relatively low at 15% based on assumption that the only benefits paid will be minimal vacation for full time positions, employment fees, and healthcare plan.
The estimate of 8% funding on credit refers to the delay between commitment of funding and actual receipt of funds.
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
Based on our forecasted monthly fixed costs and aniticipated average monthly revenues our monthy break-even forecast is displayed in the table and chart below.
Our projected annual surplus is shown in the table. March surplus is due to the annual Oscar Night fundraiser, and we anticipate adding another major fundraiser to our lowest income month (perhaps August), to help with surplus that may dip at that time. A "Summer Soiree" at the Cinematheque may help to make August a high surplus month instead of a low one. Assumption of a modest first year August fundraiser is included in the table results.
Note that the surplus shown in the second and third years will not actually be a surplus. The profits will be utilized to help update facilities (after a modest phase one opening build-out to get open in the first year), expand personnel, and develop the Miami Beach International Film Festival.
Cash flow projections are critical to Cinematheque's success. The monthly cash flow is shown in the illustration, with one bar representing the Cash Flow per month, and the other the monthly Cash Balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.
Notice the levels of Cash Balance grows to allow development of future projects.
Notice that the Net Cash Flow, is of course, typically low of non-profit organizations in the first year of such an expansion.
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 appendix.