The following section outlines the financial plan for Barney's Bullpen:
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices. From the beginning, we recognize that repeat business, weather, economic conditions, and growth of youth sports will determine our success. These reasons are why we have chosen a conservative revenue stream.
Two of the more important underlying assumptions are:
The following chart and table summarize our break-even analysis. This projection is based on very conservative estimates of revenue.
Our projected profit and loss is shown on the following table, with sales increasing from more than $200K the first year to more than $300K the third year. We show a profit in the first year with a relatively low sales forecast.
We are projecting very conservatively. The detailed monthly projections are included in the appendices.
The following section shows the cash flow projections for Barney's Bullpen for the first three years. These include repayment of the principal on a 5-year $70,000 SBA loan in equal monthly payments of $1,167, which we start repaying after the first three months of operations.
Cash flow projections are critical to our success. Our cash balance will reach its minimum in mid-2004, during a low season in the first year of operations. We believe that if we manage our cash wisely during this critical period, the following months' cash flows should be sufficient to cover all our expenses.
The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.
The balance sheet in the following table shows conservative growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendices.
The following table shows the projected businesses ratios along with comparisons for our industry, baseball batting cages (SIC Code 7999.9903). We expect to maintain healthy ratios for profitability, risk, and return.