The following plan outlines the financial development of Soapy Rides. The business will be initially financed by a personal investment by Mark Deshpande and will finance growth through cash flow. This will mean that the company will grow more slowly than it could, but it will ensure that Mark retains control over the direction of the company. In year three, it is hoped that the company will be able to open a second location. It is envisioned that an outside loan or equity funding will be sought at that time.
The financial projections for Soapy Rides are based on the following assumptions. These assumptions are thought to be quite conservative, as are the financial forecasts.
The table and chart below show the monthly break-even analysis calculations for Soapy Rides.
The following Profit and Loss table illustrates income and expenses monthly for the first year, and annually for the next two years.
The following Cash Flow table illustrates that if Soapy Rides meets projected sales, it will have positive cash flow after half a year of operations.
Soapy Rides' balance sheet illustrates a healthy financial position for this new company. The monthly estimates are included in the appendix.
The following table contains important ratios for the car wash industry, as determined by the Standard Industry Classification (SIC) code, 7542.
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