Concierge Service Business Plan

Godsend Concierge Service

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Financial Plan

The following sections will outline the important financial assumptions, key financial indictors, break-even analysis, profit and loss, cash flow, and balance sheet.

Important Assumptions

The following table highlights some of the important financial assumptions for GCS.

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 25.42% 25.00% 25.42%
Other 0 0 0

Break-even Analysis

The break-even analysis is based on the hourly rate charged to corporations, as they derive 90% of our business. The charge for individuals is slightly higher, but accounts for less than 10% of our projected revenue. This is in keeping with our conservative estimate philosophy.

Break-even Analysis
Monthly Revenue Break-even $5,263
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $4,461

Projected Profit and Loss

The following table will indicate projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $70,050 $132,795 $156,000
Direct Cost of Sales $10,671 $30,996 $32,996
Other $0 $0 $0
Total Cost of Sales $10,671 $30,996 $32,996
Gross Margin $59,379 $101,799 $123,004
Gross Margin % 84.77% 76.66% 78.85%
Expenses
Payroll $39,461 $82,992 $98,000
Sales and Marketing and Other Expenses $2,000 $1,750 $1,750
Depreciation $0 $0 $0
Depreciation $492 $492 $0
Additional payroll burdens- 7.5% $2,295 $4,424 $5,924
Comunication Equipment $2,465 $0 $0
Utilities $0 $0 $0
Insurance $900 $0 $0
Payroll Taxes $5,919 $12,449 $14,700
Other $0 $0 $0
Total Operating Expenses $53,532 $102,107 $120,374
Profit Before Interest and Taxes $5,847 ($308) $2,630
EBITDA $5,847 ($308) $2,630
Interest Expense $0 $0 $0
Taxes Incurred $1,337 $0 $668
Net Profit $4,510 ($308) $1,962
Net Profit/Sales 6.44% -0.23% 1.26%

Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $42,030 $79,677 $93,600
Cash from Receivables $20,636 $46,504 $59,954
Subtotal Cash from Operations $62,666 $126,181 $153,554
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $2,000 $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 $1,255 $7,000 $0
Subtotal Cash Received $65,921 $133,181 $153,554
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $39,461 $82,992 $98,000
Bill Payments $21,893 $50,179 $55,551
Subtotal Spent on Operations $61,354 $133,171 $153,551
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 $61,354 $133,171 $153,551
Net Cash Flow $4,567 $10 $3
Cash Balance $5,822 $5,832 $5,834

Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $5,822 $5,832 $5,834
Accounts Receivable $7,384 $13,999 $16,445
Other Current Assets $2,500 $2,500 $2,500
Total Current Assets $15,706 $22,331 $24,779
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $15,706 $22,331 $24,779
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $4,187 $4,119 $4,606
Current Borrowing $0 $0 $0
Other Current Liabilities $2,000 $2,000 $2,000
Subtotal Current Liabilities $6,187 $6,119 $6,606
Long-term Liabilities $0 $0 $0
Total Liabilities $6,187 $6,119 $6,606
Paid-in Capital $8,755 $15,755 $15,755
Retained Earnings ($3,745) $765 $457
Earnings $4,510 ($308) $1,962
Total Capital $9,520 $16,212 $18,173
Total Liabilities and Capital $15,706 $22,331 $24,779
Net Worth $9,520 $16,212 $18,173

Business Ratios

The following table contains important business ratios for the personal services industry, as determined by the Standard Industry Classification (SIC) Index code 7299.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 89.57% 17.47% 17.90%
Percent of Total Assets
Accounts Receivable 47.02% 62.69% 66.37% 11.10%
Other Current Assets 15.92% 11.20% 10.09% 37.10%
Total Current Assets 100.00% 100.00% 100.00% 52.80%
Long-term Assets 0.00% 0.00% 0.00% 47.20%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 39.39% 27.40% 26.66% 33.90%
Long-term Liabilities 0.00% 0.00% 0.00% 28.00%
Total Liabilities 39.39% 27.40% 26.66% 61.90%
Net Worth 60.61% 72.60% 73.34% 38.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.77% 76.66% 78.85% 0.00%
Selling, General & Administrative Expenses 76.37% 69.80% 72.92% 72.70%
Advertising Expenses 0.21% 0.00% 0.00% 2.20%
Profit Before Interest and Taxes 8.35% -0.23% 1.69% 4.00%
Main Ratios
Current 2.54 3.65 3.75 1.81
Quick 2.54 3.65 3.75 1.33
Total Debt to Total Assets 39.39% 27.40% 26.66% 61.90%
Pre-tax Return on Net Worth 61.42% -1.90% 14.47% 6.30%
Pre-tax Return on Assets 37.23% -1.38% 10.61% 16.60%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 6.44% -0.23% 1.26% n.a
Return on Equity 47.37% -1.90% 10.79% n.a
Activity Ratios
Accounts Receivable Turnover 3.79 3.79 3.79 n.a
Collection Days 56 73 89 n.a
Accounts Payable Turnover 6.23 12.17 12.17 n.a
Payment Days 30 30 28 n.a
Total Asset Turnover 4.46 5.95 6.30 n.a
Debt Ratios
Debt to Net Worth 0.65 0.38 0.36 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $9,520 $16,212 $18,173 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.22 0.17 0.16 n.a
Current Debt/Total Assets 39% 27% 27% n.a
Acid Test 1.35 1.36 1.26 n.a
Sales/Net Worth 7.36 8.19 8.58 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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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 25.42% 25.00% 25.42%
Other 0 0 0
Break-even Analysis
Monthly Revenue Break-even $5,263
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $4,461
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $70,050 $132,795 $156,000
Direct Cost of Sales $10,671 $30,996 $32,996
Other $0 $0 $0
Total Cost of Sales $10,671 $30,996 $32,996
Gross Margin $59,379 $101,799 $123,004
Gross Margin % 84.77% 76.66% 78.85%
Expenses
Payroll $39,461 $82,992 $98,000
Sales and Marketing and Other Expenses $2,000 $1,750 $1,750
Depreciation $0 $0 $0
Depreciation $492 $492 $0
Additional payroll burdens- 7.5% $2,295 $4,424 $5,924
Comunication Equipment $2,465 $0 $0
Utilities $0 $0 $0
Insurance $900 $0 $0
Payroll Taxes $5,919 $12,449 $14,700
Other $0 $0 $0
Total Operating Expenses $53,532 $102,107 $120,374
Profit Before Interest and Taxes $5,847 ($308) $2,630
EBITDA $5,847 ($308) $2,630
Interest Expense $0 $0 $0
Taxes Incurred $1,337 $0 $668
Net Profit $4,510 ($308) $1,962
Net Profit/Sales 6.44% -0.23% 1.26%
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $42,030 $79,677 $93,600
Cash from Receivables $20,636 $46,504 $59,954
Subtotal Cash from Operations $62,666 $126,181 $153,554
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $2,000 $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 $1,255 $7,000 $0
Subtotal Cash Received $65,921 $133,181 $153,554
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $39,461 $82,992 $98,000
Bill Payments $21,893 $50,179 $55,551
Subtotal Spent on Operations $61,354 $133,171 $153,551
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 $61,354 $133,171 $153,551
Net Cash Flow $4,567 $10 $3
Cash Balance $5,822 $5,832 $5,834
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $5,822 $5,832 $5,834
Accounts Receivable $7,384 $13,999 $16,445
Other Current Assets $2,500 $2,500 $2,500
Total Current Assets $15,706 $22,331 $24,779
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $15,706 $22,331 $24,779
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $4,187 $4,119 $4,606
Current Borrowing $0 $0 $0
Other Current Liabilities $2,000 $2,000 $2,000
Subtotal Current Liabilities $6,187 $6,119 $6,606
Long-term Liabilities $0 $0 $0
Total Liabilities $6,187 $6,119 $6,606
Paid-in Capital $8,755 $15,755 $15,755
Retained Earnings ($3,745) $765 $457
Earnings $4,510 ($308) $1,962
Total Capital $9,520 $16,212 $18,173
Total Liabilities and Capital $15,706 $22,331 $24,779
Net Worth $9,520 $16,212 $18,173
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 89.57% 17.47% 17.90%
Percent of Total Assets
Accounts Receivable 47.02% 62.69% 66.37% 11.10%
Other Current Assets 15.92% 11.20% 10.09% 37.10%
Total Current Assets 100.00% 100.00% 100.00% 52.80%
Long-term Assets 0.00% 0.00% 0.00% 47.20%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 39.39% 27.40% 26.66% 33.90%
Long-term Liabilities 0.00% 0.00% 0.00% 28.00%
Total Liabilities 39.39% 27.40% 26.66% 61.90%
Net Worth 60.61% 72.60% 73.34% 38.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.77% 76.66% 78.85% 0.00%
Selling, General & Administrative Expenses 76.37% 69.80% 72.92% 72.70%
Advertising Expenses 0.21% 0.00% 0.00% 2.20%
Profit Before Interest and Taxes 8.35% -0.23% 1.69% 4.00%
Main Ratios
Current 2.54 3.65 3.75 1.81
Quick 2.54 3.65 3.75 1.33
Total Debt to Total Assets 39.39% 27.40% 26.66% 61.90%
Pre-tax Return on Net Worth 61.42% -1.90% 14.47% 6.30%
Pre-tax Return on Assets 37.23% -1.38% 10.61% 16.60%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 6.44% -0.23% 1.26% n.a
Return on Equity 47.37% -1.90% 10.79% n.a
Activity Ratios
Accounts Receivable Turnover 3.79 3.79 3.79 n.a
Collection Days 56 73 89 n.a
Accounts Payable Turnover 6.23 12.17 12.17 n.a
Payment Days 30 30 28 n.a
Total Asset Turnover 4.46 5.95 6.30 n.a
Debt Ratios
Debt to Net Worth 0.65 0.38 0.36 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $9,520 $16,212 $18,173 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.22 0.17 0.16 n.a
Current Debt/Total Assets 39% 27% 27% n.a
Acid Test 1.35 1.36 1.26 n.a
Sales/Net Worth 7.36 8.19 8.58 n.a
Dividend Payout 0.00 0.00 0.00 n.a