Hart Fraeme Gallery

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Art Sales Custom Framing Business Plan

Appendix

Sales Forecast
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sales
Unframed Artwork 0% $3,750 $4,500 $7,500 $13,500 $4,500 $4,000 $3,750 $3,750 $3,500 $2,250 $2,500 $3,150
Framed Artwork 0% $3,750 $4,500 $7,500 $13,500 $4,500 $4,000 $3,750 $3,750 $3,500 $2,250 $2,500 $3,150
Special Orders 0% $400 $420 $500 $650 $475 $400 $380 $375 $365 $350 $360 $375
Custom Framing 0% $22,500 $27,000 $31,000 $38,000 $31,000 $28,000 $24,000 $22,500 $21,000 $13,500 $15,000 $18,700
Total Sales $30,400 $36,420 $46,500 $65,650 $40,475 $36,400 $31,880 $30,375 $28,365 $18,350 $20,360 $25,375
Direct Cost of Sales Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Unframed Artwork $2,250 $2,700 $4,500 $8,100 $2,700 $2,400 $2,250 $2,250 $2,100 $1,350 $1,500 $1,900
Materials for Framing $7,900 $9,500 $10,900 $13,300 $10,900 $9,800 $8,400 $7,900 $7,400 $4,700 $5,300 $6,600
Framing Supplies and Maintenance $600 $750 $750 $900 $750 $750 $600 $600 $600 $300 $450 $600
Subtotal Direct Cost of Sales $10,750 $12,950 $16,150 $22,300 $14,350 $12,950 $11,250 $10,750 $10,100 $6,350 $7,250 $9,100
Personnel Plan
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Owner 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Assistant Manager 0% $0 $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Sales and Design Associates 0% $2,880 $2,880 $2,880 $2,880 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $6,880 $6,880 $6,880 $6,880 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
Pro Forma Profit and Loss
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sales $30,400 $36,420 $46,500 $65,650 $40,475 $36,400 $31,880 $30,375 $28,365 $18,350 $20,360 $25,375
Direct Cost of Sales $10,750 $12,950 $16,150 $22,300 $14,350 $12,950 $11,250 $10,750 $10,100 $6,350 $7,250 $9,100
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $10,750 $12,950 $16,150 $22,300 $14,350 $12,950 $11,250 $10,750 $10,100 $6,350 $7,250 $9,100
Gross Margin $19,650 $23,470 $30,350 $43,350 $26,125 $23,450 $20,630 $19,625 $18,265 $12,000 $13,110 $16,275
Gross Margin % 64.64% 64.44% 65.27% 66.03% 64.55% 64.42% 64.71% 64.61% 64.39% 65.40% 64.39% 64.14%
Expenses
Payroll $6,880 $6,880 $6,880 $6,880 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
Marketing/Promotion $1,500 $1,000 $1,500 $1,500 $1,000 $750 $500 $500 $500 $500 $500 $500
Depreciation $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Percentage Rent $3,000 $3,700 $4,700 $6,700 $4,000 $3,600 $3,200 $3,000 $2,900 $1,900 $2,000 $2,500
Payroll Taxes 15% $1,032 $1,032 $1,032 $1,032 $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 $1,140
Utilities $1,500 $1,500 $2,000 $2,000 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Accounting Services 15% $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Other $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Total Operating Expenses $18,562 $18,762 $20,762 $22,762 $19,890 $19,240 $18,590 $18,390 $18,290 $17,290 $17,390 $17,890
Profit Before Interest and Taxes $1,088 $4,708 $9,588 $20,588 $6,235 $4,210 $2,040 $1,235 ($25) ($5,290) ($4,280) ($1,615)
EBITDA $1,338 $4,958 $9,838 $20,838 $6,485 $4,460 $2,290 $1,485 $225 ($5,040) ($4,030) ($1,365)
Interest Expense $697 $685 $673 $662 $650 $638 $627 $615 $603 $592 $580 $568
Taxes Incurred $117 $1,207 $2,674 $5,978 $1,676 $1,072 $424 $186 ($189) ($1,765) ($1,458) ($655)
Net Profit $274 $2,816 $6,240 $13,948 $3,910 $2,500 $989 $434 ($440) ($4,117) ($3,402) ($1,528)
Net Profit/Sales 0.90% 7.73% 13.42% 21.25% 9.66% 6.87% 3.10% 1.43% -1.55% -22.44% -16.71% -6.02%
Pro Forma Cash Flow
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Cash Received
Cash from Operations
Cash Sales $30,400 $36,420 $46,500 $65,650 $40,475 $36,400 $31,880 $30,375 $28,365 $18,350 $20,360 $25,375
Subtotal Cash from Operations $30,400 $36,420 $46,500 $65,650 $40,475 $36,400 $31,880 $30,375 $28,365 $18,350 $20,360 $25,375
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 $30,400 $36,420 $46,500 $65,650 $40,475 $36,400 $31,880 $30,375 $28,365 $18,350 $20,360 $25,375
Expenditures Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Expenditures from Operations
Cash Spending $6,880 $6,880 $6,880 $6,880 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600 $7,600
Bill Payments $408 $12,744 $27,479 $36,809 $49,723 $20,895 $24,540 $21,349 $21,548 $19,990 $11,065 $16,948
Subtotal Spent on Operations $7,288 $19,624 $34,359 $43,689 $57,323 $28,495 $32,140 $28,949 $29,148 $27,590 $18,665 $24,548
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 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
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 $520 $520 $520 $520 $520 $520 $520 $520 $520 $520 $520 $520
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $9,208 $21,544 $36,279 $45,609 $59,243 $30,415 $34,060 $30,869 $31,068 $29,510 $20,585 $26,468
Net Cash Flow $21,192 $14,876 $10,221 $20,041 ($18,768) $5,985 ($2,180) ($494) ($2,703) ($11,160) ($225) ($1,093)
Cash Balance $41,192 $56,068 $66,289 $86,330 $67,562 $73,547 $71,367 $70,873 $68,170 $57,010 $56,784 $55,691
Pro Forma Balance Sheet
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Assets Starting Balances
Current Assets
Cash $20,000 $41,192 $56,068 $66,289 $86,330 $67,562 $73,547 $71,367 $70,873 $68,170 $57,010 $56,784 $55,691
Inventory $23,000 $12,250 $12,950 $16,150 $22,300 $14,350 $12,950 $11,250 $10,750 $10,100 $6,350 $7,250 $9,100
Other Current Assets $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Total Current Assets $46,500 $56,942 $72,518 $85,939 $112,130 $85,412 $89,997 $86,117 $85,123 $81,770 $66,860 $67,534 $68,291
Long-term Assets
Long-term Assets $39,000 $39,520 $40,040 $40,560 $41,080 $41,600 $42,120 $42,640 $43,160 $43,680 $44,200 $44,720 $45,240
Accumulated Depreciation $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000
Total Long-term Assets $39,000 $39,270 $39,540 $39,810 $40,080 $40,350 $40,620 $40,890 $41,160 $41,430 $41,700 $41,970 $42,240
Total Assets $85,500 $96,212 $112,058 $125,749 $152,210 $125,762 $130,617 $127,007 $126,283 $123,200 $108,560 $109,504 $110,531
Liabilities and Capital Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Current Liabilities
Accounts Payable $0 $11,838 $26,268 $35,119 $49,031 $20,073 $23,828 $20,629 $20,871 $19,628 $10,505 $16,252 $20,207
Current Borrowing $85,000 $83,600 $82,200 $80,800 $79,400 $78,000 $76,600 $75,200 $73,800 $72,400 $71,000 $69,600 $68,200
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $85,000 $95,438 $108,468 $115,919 $128,431 $98,073 $100,428 $95,829 $94,671 $92,028 $81,505 $85,852 $88,407
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $85,000 $95,438 $108,468 $115,919 $128,431 $98,073 $100,428 $95,829 $94,671 $92,028 $81,505 $85,852 $88,407
Paid-in Capital $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Retained Earnings ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500) ($19,500)
Earnings $0 $274 $3,090 $9,330 $23,279 $27,188 $29,688 $30,678 $31,112 $30,672 $26,555 $23,153 $21,624
Total Capital $500 $774 $3,590 $9,830 $23,779 $27,688 $30,188 $31,178 $31,612 $31,172 $27,055 $23,653 $22,124
Total Liabilities and Capital $85,500 $96,212 $112,058 $125,749 $152,210 $125,762 $130,617 $127,007 $126,283 $123,200 $108,560 $109,504 $110,531
Net Worth $500 $774 $3,590 $9,830 $23,779 $27,688 $30,188 $31,178 $31,612 $31,172 $27,055 $23,653 $22,124