Dating Matchmaking Service Business Plan

CompuDate

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Financial Plan

The following sections will outline important financial information.

8.1 Important Assumptions

The following table details important financial assumptions.

General Assumptions
2003 2004 2005
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 30.00% 30.00% 30.00%
Other 0 0 0

8.2 Break-even Analysis

The Break-even Analysis indicates what is needed in monthly revenue to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even $7,236
Assumptions:
Average Percent Variable Cost 7%
Estimated Monthly Fixed Cost $6,729

8.3 Projected Profit and Loss

The following table and charts present the Projected Profit and Loss.

Pro Forma Profit and Loss
2003 2004 2005
Sales $70,287 $141,662 $181,366
Direct Cost of Sales $4,920 $9,916 $12,696
Other Costs of Sales $0 $0 $0
Total Cost of Sales $4,920 $9,916 $12,696
Gross Margin $65,367 $131,746 $168,670
Gross Margin % 93.00% 93.00% 93.00%
Expenses
Payroll $51,000 $76,000 $86,000
Sales and Marketing and Other Expenses $3,600 $4,000 $4,500
Depreciation $0 $0 $0
Rent $6,600 $6,600 $6,600
Utilities $2,400 $2,400 $2,400
Insurance $1,500 $1,500 $1,500
Payroll Taxes $7,650 $11,400 $12,900
Website development/maintenance $8,000 $2,000 $3,000
Total Operating Expenses $80,750 $103,900 $116,900
Profit Before Interest and Taxes ($15,383) $27,846 $51,770
EBITDA ($15,383) $27,846 $51,770
Interest Expense $7,000 $7,000 $7,000
Taxes Incurred $0 $6,254 $13,431
Net Profit ($22,383) $14,592 $31,339
Net Profit/Sales -31.85% 10.30% 17.28%

8.4 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow. Please note that during the month of January there was a cash infusion. This was an investment that Suzie made into the business. Please also note that there was an increase of long-term liabilities. This can be broken down into the purchase of the existing business and needed start-up equipment.

Pro Forma Cash Flow
2003 2004 2005
Cash Received
Cash from Operations
Cash Sales $70,287 $141,662 $181,366
Subtotal Cash from Operations $70,287 $141,662 $181,366
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $70,000 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $140,287 $141,662 $181,366
Expenditures 2003 2004 2005
Expenditures from Operations
Cash Spending $51,000 $76,000 $86,000
Bill Payments $44,445 $50,097 $62,962
Subtotal Spent on Operations $95,445 $126,097 $148,962
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 $40,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $135,445 $126,097 $148,962
Net Cash Flow $4,842 $15,564 $32,404
Cash Balance $19,396 $34,960 $67,364

8.5 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

Pro Forma Balance Sheet
2003 2004 2005
Assets
Current Assets
Cash $19,396 $34,960 $67,364
Other Current Assets $2,000 $2,000 $2,000
Total Current Assets $21,396 $36,960 $69,364
Long-term Assets
Long-term Assets $40,000 $40,000 $40,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $40,000 $40,000 $40,000
Total Assets $61,396 $76,960 $109,364
Liabilities and Capital 2003 2004 2005
Current Liabilities
Accounts Payable $3,225 $4,198 $5,262
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,225 $4,198 $5,262
Long-term Liabilities $70,000 $70,000 $70,000
Total Liabilities $73,225 $74,198 $75,262
Paid-in Capital $0 $0 $0
Retained Earnings $10,554 ($11,829) $2,763
Earnings ($22,383) $14,592 $31,339
Total Capital ($11,829) $2,763 $34,102
Total Liabilities and Capital $61,396 $76,960 $109,364
Net Worth ($11,829) $2,763 $34,102

8.6 Business Ratios

The following table details common business ratios of this business as well as the Personal Services Industry, NAICS code 812990. Please note that the variance of current assets of this company and the industry can be explained that the bulk of CompuDate's value is in its software and that it is not in need of many other assets.

Ratio Analysis
2003 2004 2005 Industry Profile
Sales Growth 117.39% 101.55% 28.03% 9.31%
Percent of Total Assets
Other Current Assets 3.26% 2.60% 1.83% 51.05%
Total Current Assets 34.85% 48.03% 63.43% 68.55%
Long-term Assets 65.15% 51.97% 36.57% 31.45%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.25% 5.45% 4.81% 27.03%
Long-term Liabilities 114.01% 90.96% 64.01% 35.17%
Total Liabilities 119.27% 96.41% 68.82% 62.20%
Net Worth -19.27% 3.59% 31.18% 37.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.00% 93.00% 93.00% 49.13%
Selling, General & Administrative Expenses 124.85% 82.70% 75.72% 25.78%
Advertising Expenses 0.00% 0.00% 0.00% 1.18%
Profit Before Interest and Taxes -21.89% 19.66% 28.54% 4.34%
Main Ratios
Current 6.63 8.81 13.18 1.85
Quick 6.63 8.81 13.18 1.42
Total Debt to Total Assets 119.27% 96.41% 68.82% 66.03%
Pre-tax Return on Net Worth 189.22% 754.48% 131.28% 6.63%
Pre-tax Return on Assets -36.46% 27.09% 40.94% 19.52%
Additional Ratios 2003 2004 2005
Net Profit Margin -31.85% 10.30% 17.28% n.a
Return on Equity 0.00% 528.14% 91.90% n.a
Activity Ratios
Accounts Payable Turnover 12.92 12.17 12.17 n.a
Payment Days 31 27 27 n.a
Total Asset Turnover 1.14 1.84 1.66 n.a
Debt Ratios
Debt to Net Worth 0.00 26.86 2.21 n.a
Current Liab. to Liab. 0.04 0.06 0.07 n.a
Liquidity Ratios
Net Working Capital $18,171 $32,763 $64,102 n.a
Interest Coverage -2.20 3.98 7.40 n.a
Additional Ratios
Assets to Sales 0.87 0.54 0.60 n.a
Current Debt/Total Assets 5% 5% 5% n.a
Acid Test 6.63 8.81 13.18 n.a
Sales/Net Worth 0.00 51.27 5.32 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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General Assumptions
2003 2004 2005
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 30.00% 30.00% 30.00%
Other 0 0 0
Break-even Analysis
Monthly Revenue Break-even $7,236
Assumptions:
Average Percent Variable Cost 7%
Estimated Monthly Fixed Cost $6,729
Pro Forma Profit and Loss
2003 2004 2005
Sales $70,287 $141,662 $181,366
Direct Cost of Sales $4,920 $9,916 $12,696
Other Costs of Sales $0 $0 $0
Total Cost of Sales $4,920 $9,916 $12,696
Gross Margin $65,367 $131,746 $168,670
Gross Margin % 93.00% 93.00% 93.00%
Expenses
Payroll $51,000 $76,000 $86,000
Sales and Marketing and Other Expenses $3,600 $4,000 $4,500
Depreciation $0 $0 $0
Rent $6,600 $6,600 $6,600
Utilities $2,400 $2,400 $2,400
Insurance $1,500 $1,500 $1,500
Payroll Taxes $7,650 $11,400 $12,900
Website development/maintenance $8,000 $2,000 $3,000
Total Operating Expenses $80,750 $103,900 $116,900
Profit Before Interest and Taxes ($15,383) $27,846 $51,770
EBITDA ($15,383) $27,846 $51,770
Interest Expense $7,000 $7,000 $7,000
Taxes Incurred $0 $6,254 $13,431
Net Profit ($22,383) $14,592 $31,339
Net Profit/Sales -31.85% 10.30% 17.28%
Pro Forma Cash Flow
2003 2004 2005
Cash Received
Cash from Operations
Cash Sales $70,287 $141,662 $181,366
Subtotal Cash from Operations $70,287 $141,662 $181,366
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $70,000 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $140,287 $141,662 $181,366
Expenditures 2003 2004 2005
Expenditures from Operations
Cash Spending $51,000 $76,000 $86,000
Bill Payments $44,445 $50,097 $62,962
Subtotal Spent on Operations $95,445 $126,097 $148,962
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 $40,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $135,445 $126,097 $148,962
Net Cash Flow $4,842 $15,564 $32,404
Cash Balance $19,396 $34,960 $67,364
Pro Forma Balance Sheet
2003 2004 2005
Assets
Current Assets
Cash $19,396 $34,960 $67,364
Other Current Assets $2,000 $2,000 $2,000
Total Current Assets $21,396 $36,960 $69,364
Long-term Assets
Long-term Assets $40,000 $40,000 $40,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $40,000 $40,000 $40,000
Total Assets $61,396 $76,960 $109,364
Liabilities and Capital 2003 2004 2005
Current Liabilities
Accounts Payable $3,225 $4,198 $5,262
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,225 $4,198 $5,262
Long-term Liabilities $70,000 $70,000 $70,000
Total Liabilities $73,225 $74,198 $75,262
Paid-in Capital $0 $0 $0
Retained Earnings $10,554 ($11,829) $2,763
Earnings ($22,383) $14,592 $31,339
Total Capital ($11,829) $2,763 $34,102
Total Liabilities and Capital $61,396 $76,960 $109,364
Net Worth ($11,829) $2,763 $34,102
Ratio Analysis
2003 2004 2005 Industry Profile
Sales Growth 117.39% 101.55% 28.03% 9.31%
Percent of Total Assets
Other Current Assets 3.26% 2.60% 1.83% 51.05%
Total Current Assets 34.85% 48.03% 63.43% 68.55%
Long-term Assets 65.15% 51.97% 36.57% 31.45%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.25% 5.45% 4.81% 27.03%
Long-term Liabilities 114.01% 90.96% 64.01% 35.17%
Total Liabilities 119.27% 96.41% 68.82% 62.20%
Net Worth -19.27% 3.59% 31.18% 37.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.00% 93.00% 93.00% 49.13%
Selling, General & Administrative Expenses 124.85% 82.70% 75.72% 25.78%
Advertising Expenses 0.00% 0.00% 0.00% 1.18%
Profit Before Interest and Taxes -21.89% 19.66% 28.54% 4.34%
Main Ratios
Current 6.63 8.81 13.18 1.85
Quick 6.63 8.81 13.18 1.42
Total Debt to Total Assets 119.27% 96.41% 68.82% 66.03%
Pre-tax Return on Net Worth 189.22% 754.48% 131.28% 6.63%
Pre-tax Return on Assets -36.46% 27.09% 40.94% 19.52%
Additional Ratios 2003 2004 2005
Net Profit Margin -31.85% 10.30% 17.28% n.a
Return on Equity 0.00% 528.14% 91.90% n.a
Activity Ratios
Accounts Payable Turnover 12.92 12.17 12.17 n.a
Payment Days 31 27 27 n.a
Total Asset Turnover 1.14 1.84 1.66 n.a
Debt Ratios
Debt to Net Worth 0.00 26.86 2.21 n.a
Current Liab. to Liab. 0.04 0.06 0.07 n.a
Liquidity Ratios
Net Working Capital $18,171 $32,763 $64,102 n.a
Interest Coverage -2.20 3.98 7.40 n.a
Additional Ratios
Assets to Sales 0.87 0.54 0.60 n.a
Current Debt/Total Assets 5% 5% 5% n.a
Acid Test 6.63 8.81 13.18 n.a
Sales/Net Worth 0.00 51.27 5.32 n.a
Dividend Payout 0.00 0.00 0.00 n.a