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Custom Quilt Artist Business Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Crib quilts - machine 0% 1 0 1 2 3 3 3 3 3 1 2 2
Queen quilts - machine 0% 0 1 2 1 2 1 2 1 1 2 2 1
King quilts - machine 0% 0 0 0 0 0 0 0 0 1 0 0 0
Crib quilts - hand 0% 0 1 1 1 0 0 0 0 1 1 0 1
Queen quilts - hand 0% 1 0 0 1 0 1 0 0 0 1 0 0
King quilts - hand 0% 0 0 0 0 0 0 0 1 0 0 1 0
Total Unit Sales 2 2 4 5 5 5 5 5 6 5 5 4
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Crib quilts - machine $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00
Queen quilts - machine $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
King quilts - machine $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Crib quilts - hand $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00
Queen quilts - hand $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00 $1,375.00
King quilts - hand $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00 $1,900.00
Sales
Crib quilts - machine $600 $0 $600 $1,200 $1,800 $1,800 $1,800 $1,800 $1,800 $600 $1,200 $1,200
Queen quilts - machine $0 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $1,000 $2,000 $2,000 $1,000
King quilts - machine $0 $0 $0 $0 $0 $0 $0 $0 $1,500 $0 $0 $0
Crib quilts - hand $0 $750 $750 $750 $0 $0 $0 $0 $750 $750 $0 $750
Queen quilts - hand $1,375 $0 $0 $1,375 $0 $1,375 $0 $0 $0 $1,375 $0 $0
King quilts - hand $0 $0 $0 $0 $0 $0 $0 $1,900 $0 $0 $1,900 $0
Total Sales $1,975 $1,750 $3,350 $4,325 $3,800 $4,175 $3,800 $4,700 $5,050 $4,725 $5,100 $2,950
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Crib quilts - machine 0.00% $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00
Queen quilts - machine 0.00% $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00
King quilts - machine 0.00% $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00
Crib quilts - hand 0.00% $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00
Queen quilts - hand 0.00% $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00
King quilts - hand 0.00% $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00
Direct Cost of Sales
Crib quilts - machine $40 $0 $40 $80 $120 $120 $120 $120 $120 $40 $80 $80
Queen quilts - machine $0 $80 $160 $80 $160 $80 $160 $80 $80 $160 $160 $80
King quilts - machine $0 $0 $0 $0 $0 $0 $0 $0 $100 $0 $0 $0
Crib quilts - hand $0 $40 $40 $40 $0 $0 $0 $0 $40 $40 $0 $40
Queen quilts - hand $80 $0 $0 $80 $0 $80 $0 $0 $0 $80 $0 $0
King quilts - hand $0 $0 $0 $0 $0 $0 $0 $100 $0 $0 $100 $0
Subtotal Direct Cost of Sales $120 $120 $240 $280 $280 $280 $280 $300 $340 $320 $340 $200
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Owner 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 1 1 1 1 1 1 1 1 1 1 1 1
Total Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $1,975 $1,750 $3,350 $4,325 $3,800 $4,175 $3,800 $4,700 $5,050 $4,725 $5,100 $2,950
Direct Cost of Sales $120 $120 $240 $280 $280 $280 $280 $300 $340 $320 $340 $200
Contracted Hand-Quilter $350 $150 $150 $500 $0 $350 $0 $400 $150 $500 $400 $150
Total Cost of Sales $470 $270 $390 $780 $280 $630 $280 $700 $490 $820 $740 $350
Gross Margin $1,505 $1,480 $2,960 $3,545 $3,520 $3,545 $3,520 $4,000 $4,560 $3,905 $4,360 $2,600
Gross Margin % 76.20% 84.57% 88.36% 81.97% 92.63% 84.91% 92.63% 85.11% 90.30% 82.65% 85.49% 88.14%
Expenses
Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Sales and Marketing and Other Expenses $50 $50 $50 $50 $50 $25 $25 $25 $25 $25 $25 $25
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mortgage % for quilting room $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Website hosting and maintenance $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Insurance $0 $0 $0 $0 $0 $0 $200 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Travel to conventions and quilting events $0 $0 $0 $0 $0 $0 $200 $0 $0 $0 $0 $300
Total Operating Expenses $2,215 $2,215 $2,215 $2,215 $2,215 $2,190 $2,590 $2,190 $2,190 $2,190 $2,190 $2,490
Profit Before Interest and Taxes ($710) ($735) $745 $1,330 $1,305 $1,355 $930 $1,810 $2,370 $1,715 $2,170 $110
EBITDA ($710) ($735) $745 $1,330 $1,305 $1,355 $930 $1,810 $2,370 $1,715 $2,170 $110
Interest Expense $17 $16 $15 $15 $14 $13 $12 $11 $10 $10 $9 $8
Taxes Incurred ($218) ($225) $219 $395 $387 $403 $275 $540 $708 $512 $648 $31
Net Profit ($509) ($526) $511 $921 $904 $939 $643 $1,259 $1,652 $1,194 $1,513 $71
Net Profit/Sales -25.77% -30.05% 15.25% 21.29% 23.79% 22.50% 16.91% 26.79% 32.71% 25.27% 29.66% 2.42%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $1,975 $1,750 $3,350 $4,325 $3,800 $4,175 $3,800 $4,700 $5,050 $4,725 $5,100 $2,950
Subtotal Cash from Operations $1,975 $1,750 $3,350 $4,325 $3,800 $4,175 $3,800 $4,700 $5,050 $4,725 $5,100 $2,950
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 $1,975 $1,750 $3,350 $4,325 $3,800 $4,175 $3,800 $4,700 $5,050 $4,725 $5,100 $2,950
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Bill Payments $12 $357 $171 $619 $1,182 $907 $1,233 $1,168 $1,462 $1,445 $1,513 $1,580
Subtotal Spent on Operations $2,012 $2,357 $2,171 $2,619 $3,182 $2,907 $3,233 $3,168 $3,462 $3,445 $3,513 $3,580
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 $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $2,012 $2,457 $2,271 $2,719 $3,282 $3,007 $3,333 $3,268 $3,562 $3,545 $3,613 $3,680
Net Cash Flow ($37) ($707) $1,079 $1,606 $518 $1,168 $467 $1,432 $1,488 $1,180 $1,487 ($730)
Cash Balance $1,563 $856 $1,935 $3,541 $4,059 $5,226 $5,693 $7,126 $8,614 $9,794 $11,282 $10,552
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $1,600 $1,563 $856 $1,935 $3,541 $4,059 $5,226 $5,693 $7,126 $8,614 $9,794 $11,282 $10,552
Inventory $1,000 $880 $760 $520 $308 $308 $308 $308 $330 $374 $352 $374 $224
Other Current Assets $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total Current Assets $3,600 $3,443 $2,616 $3,455 $4,849 $5,367 $6,534 $7,001 $8,456 $9,988 $11,146 $12,656 $11,776
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $3,600 $3,443 $2,616 $3,455 $4,849 $5,367 $6,534 $7,001 $8,456 $9,988 $11,146 $12,656 $11,776
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $352 $151 $579 $1,152 $866 $1,194 $1,119 $1,414 $1,394 $1,459 $1,555 $704
Current Borrowing $2,050 $2,050 $1,950 $1,850 $1,750 $1,650 $1,550 $1,450 $1,350 $1,250 $1,150 $1,050 $950
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $2,050 $2,402 $2,101 $2,429 $2,902 $2,516 $2,744 $2,569 $2,764 $2,644 $2,609 $2,605 $1,654
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $2,050 $2,402 $2,101 $2,429 $2,902 $2,516 $2,744 $2,569 $2,764 $2,644 $2,609 $2,605 $1,654
Paid-in Capital $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Retained Earnings ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950) ($950)
Earnings $0 ($509) ($1,035) ($524) $397 $1,301 $2,240 $2,883 $4,142 $5,793 $6,987 $8,500 $8,572
Total Capital $1,550 $1,041 $515 $1,026 $1,947 $2,851 $3,790 $4,433 $5,692 $7,343 $8,537 $10,050 $10,122
Total Liabilities and Capital $3,600 $3,443 $2,616 $3,455 $4,849 $5,367 $6,534 $7,001 $8,456 $9,988 $11,146 $12,656 $11,776
Net Worth $1,550 $1,041 $515 $1,026 $1,947 $2,851 $3,790 $4,433 $5,692 $7,343 $8,537 $10,050 $10,122