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Decorative Pottery 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
Sales
Arts and Craft Festivals 0% $8,000 $8,000 $10,000 $21,000 $24,000 $26,000 $17,000 $25,000 $30,000 $0 $0 $8,000
Galleries 0% $0 $0 $0 $5,000 $8,000 $11,000 $14,000 $16,000 $24,000 $10,000 $10,000 $12,000
Internet 0% $0 $0 $0 $2,000 $4,000 $6,000 $5,000 $7,000 $13,000 $4,000 $5,000 $6,000
Total Sales $8,000 $8,000 $10,000 $28,000 $36,000 $43,000 $36,000 $48,000 $67,000 $14,000 $15,000 $26,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Arts and Craft Festivals $3,000 $3,000 $4,000 $5,000 $6,000 $7,000 $5,000 $7,000 $10,000 $0 $0 $2,000
Galleries $0 $0 $0 $1,000 $1,500 $2,000 $3,000 $4,000 $5,200 $2,000 $2,000 $2,200
Internet $0 $0 $0 $400 $1,000 $1,500 $1,250 $1,800 $2,000 $890 $1,200 $1,500
Subtotal Direct Cost of Sales $3,000 $3,000 $4,000 $6,400 $8,500 $10,500 $9,250 $12,800 $17,200 $2,890 $3,200 $5,700
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
Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Bookkeeper/Website Administrator 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Ceramic Artists (3) 0% $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
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 $8,000 $8,000 $10,000 $28,000 $36,000 $43,000 $36,000 $48,000 $67,000 $14,000 $15,000 $26,000
Direct Cost of Sales $3,000 $3,000 $4,000 $6,400 $8,500 $10,500 $9,250 $12,800 $17,200 $2,890 $3,200 $5,700
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $3,000 $3,000 $4,000 $6,400 $8,500 $10,500 $9,250 $12,800 $17,200 $2,890 $3,200 $5,700
Gross Margin $5,000 $5,000 $6,000 $21,600 $27,500 $32,500 $26,750 $35,200 $49,800 $11,110 $11,800 $20,300
Gross Margin % 62.50% 62.50% 60.00% 77.14% 76.39% 75.58% 74.31% 73.33% 74.33% 79.36% 78.67% 78.08%
Expenses
Payroll $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Sales and Marketing and Other Expenses $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Depreciation $178 $178 $178 $178 $178 $178 $178 $178 $178 $178 $178 $178
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128 $19,128
Profit Before Interest and Taxes ($14,128) ($14,128) ($13,128) $2,472 $8,372 $13,372 $7,622 $16,072 $30,672 ($8,018) ($7,328) $1,172
EBITDA ($13,950) ($13,950) ($12,950) $2,650 $8,550 $13,550 $7,800 $16,250 $30,850 ($7,840) ($7,150) $1,350
Interest Expense $497 $494 $492 $489 $486 $483 $481 $478 $475 $472 $470 $467
Taxes Incurred ($4,388) ($4,387) ($4,086) $595 $2,366 $3,867 $2,142 $4,678 $9,059 ($2,547) ($2,339) $212
Net Profit ($10,238) ($10,236) ($9,534) $1,388 $5,520 $9,022 $4,999 $10,916 $21,138 ($5,943) ($5,458) $494
Net Profit/Sales -127.97% -127.95% -95.34% 4.96% 15.33% 20.98% 13.89% 22.74% 31.55% -42.45% -36.39% 1.90%
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 $8,000 $8,000 $10,000 $28,000 $36,000 $43,000 $36,000 $48,000 $67,000 $14,000 $15,000 $26,000
Subtotal Cash from Operations $8,000 $8,000 $10,000 $28,000 $36,000 $43,000 $36,000 $48,000 $67,000 $14,000 $15,000 $26,000
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 $8,000 $8,000 $10,000 $28,000 $36,000 $43,000 $36,000 $48,000 $67,000 $14,000 $15,000 $26,000
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 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Bill Payments $212 $6,250 $3,138 $5,743 $14,192 $17,725 $20,782 $14,827 $26,135 $34,403 $1,882 $2,165
Subtotal Spent on Operations $15,212 $21,250 $18,138 $20,743 $29,192 $32,725 $35,782 $29,827 $41,135 $49,403 $16,882 $17,165
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $332 $332 $332 $332 $332 $332 $332 $332 $332 $332 $332 $332
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 $15,544 $21,582 $18,470 $21,075 $29,524 $33,057 $36,114 $30,159 $41,467 $49,735 $17,214 $17,497
Net Cash Flow ($7,544) ($13,582) ($8,470) $6,925 $6,476 $9,943 ($114) $17,841 $25,533 ($35,735) ($2,214) $8,503
Cash Balance $22,656 $9,074 $605 $7,530 $14,006 $23,949 $23,835 $41,677 $67,210 $31,475 $29,261 $37,764
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 $30,200 $22,656 $9,074 $605 $7,530 $14,006 $23,949 $23,835 $41,677 $67,210 $31,475 $29,261 $37,764
Inventory $0 $3,300 $3,300 $4,400 $7,040 $9,350 $11,550 $10,175 $14,080 $18,920 $16,030 $12,830 $7,130
Other Current Assets $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Total Current Assets $42,200 $37,956 $24,374 $17,005 $26,570 $35,356 $47,499 $46,010 $67,757 $98,130 $59,505 $54,091 $56,894
Long-term Assets
Long-term Assets $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Accumulated Depreciation $0 $178 $356 $534 $712 $890 $1,068 $1,246 $1,424 $1,602 $1,780 $1,958 $2,136
Total Long-term Assets $15,000 $14,822 $14,644 $14,466 $14,288 $14,110 $13,932 $13,754 $13,576 $13,398 $13,220 $13,042 $12,864
Total Assets $57,200 $52,778 $39,018 $31,471 $40,858 $49,466 $61,431 $59,764 $81,333 $111,528 $72,725 $67,133 $69,758
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 $6,148 $2,956 $5,274 $13,605 $17,025 $20,300 $13,966 $24,951 $34,340 $1,813 $2,011 $4,474
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $6,148 $2,956 $5,274 $13,605 $17,025 $20,300 $13,966 $24,951 $34,340 $1,813 $2,011 $4,474
Long-term Liabilities $60,000 $59,668 $59,336 $59,004 $58,672 $58,340 $58,008 $57,676 $57,344 $57,012 $56,680 $56,348 $56,016
Total Liabilities $60,000 $65,816 $62,292 $64,278 $72,277 $75,365 $78,308 $71,642 $82,295 $91,352 $58,493 $58,359 $60,490
Paid-in Capital $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Retained Earnings ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800) ($32,800)
Earnings $0 ($10,238) ($20,473) ($30,007) ($28,619) ($23,099) ($14,077) ($9,078) $1,838 $22,976 $17,033 $11,574 $12,068
Total Capital ($2,800) ($13,038) ($23,273) ($32,807) ($31,419) ($25,899) ($16,877) ($11,878) ($962) $20,176 $14,233 $8,774 $9,268
Total Liabilities and Capital $57,200 $52,778 $39,018 $31,471 $40,858 $49,466 $61,431 $59,764 $81,333 $111,528 $72,725 $67,133 $69,758
Net Worth ($2,800) ($13,038) ($23,273) ($32,807) ($31,419) ($25,899) ($16,877) ($11,878) ($962) $20,176 $14,233 $8,774 $9,268