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Direct Mail 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
Marketing Campaigns 0% $0 $0 $10,000 $12,000 $15,000 $18,000 $20,000 $24,000 $24,000 $28,000 $28,000 $30,000
Market Analysis 0% $0 $0 $6,000 $8,000 $10,000 $12,000 $16,000 $16,000 $12,000 $14,000 $16,000 $20,000
Database Analysis 0% $0 $0 $3,000 $5,000 $7,000 $9,000 $10,000 $13,000 $13,000 $14,000 $15,000 $17,000
Mailing Production 0% $0 $0 $4,000 $5,000 $7,000 $7,000 $8,000 $10,000 $10,000 $12,000 $14,000 $16,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $23,000 $30,000 $39,000 $46,000 $54,000 $63,000 $59,000 $68,000 $73,000 $83,000
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
Marketing Campaigns $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Market Analysis $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Database Analysis $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mailing Production $0 $0 $1,000 $1,500 $1,750 $2,000 $2,400 $2,400 $2,000 $2,200 $2,400 $2,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $1,000 $1,500 $1,750 $2,000 $2,400 $2,400 $2,000 $2,200 $2,400 $2,800
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
Todd Graham 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
Sales Team (2) 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Creative Team (2) 0% $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Production 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
Production Team (3) 0% $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400
Office Manager 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Creative Director 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 10 10 10 10 10 10 10 10 10 10 10 10
Total Payroll $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200
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 $0 $0 $23,000 $30,000 $39,000 $46,000 $54,000 $63,000 $59,000 $68,000 $73,000 $83,000
Direct Cost of Sales $0 $0 $1,000 $1,500 $1,750 $2,000 $2,400 $2,400 $2,000 $2,200 $2,400 $2,800
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $1,000 $1,500 $1,750 $2,000 $2,400 $2,400 $2,000 $2,200 $2,400 $2,800
Gross Margin $0 $0 $22,000 $28,500 $37,250 $44,000 $51,600 $60,600 $57,000 $65,800 $70,600 $80,200
Gross Margin % 0.00% 0.00% 95.65% 95.00% 95.51% 95.65% 95.56% 96.19% 96.61% 96.76% 96.71% 96.63%
Expenses
Payroll $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200
Sales and Marketing and Other Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230 $4,230
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030 $37,030
Profit Before Interest and Taxes ($37,030) ($37,030) ($15,030) ($8,530) $220 $6,970 $14,570 $23,570 $19,970 $28,770 $33,570 $43,170
EBITDA ($37,030) ($37,030) ($15,030) ($8,530) $220 $6,970 $14,570 $23,570 $19,970 $28,770 $33,570 $43,170
Interest Expense $1,028 $1,015 $1,002 $988 $975 $962 $948 $935 $922 $908 $895 $882
Taxes Incurred ($11,418) ($11,414) ($4,810) ($2,856) ($227) $1,802 $4,086 $6,791 $5,714 $8,359 $9,803 $12,687
Net Profit ($26,641) ($26,632) ($11,222) ($6,663) ($529) $4,206 $9,535 $15,845 $13,334 $19,503 $22,873 $29,602
Net Profit/Sales 0.00% 0.00% -48.79% -22.21% -1.36% 9.14% 17.66% 25.15% 22.60% 28.68% 31.33% 35.66%
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 $0 $0 $23,000 $30,000 $39,000 $46,000 $54,000 $63,000 $59,000 $68,000 $73,000 $83,000
Subtotal Cash from Operations $0 $0 $23,000 $30,000 $39,000 $46,000 $54,000 $63,000 $59,000 $68,000 $73,000 $83,000
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 $0 $0 $23,000 $30,000 $39,000 $46,000 $54,000 $63,000 $59,000 $68,000 $73,000 $83,000
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 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200
Bill Payments ($1,559) ($3,076) ($1,349) $5,120 $8,056 $10,857 $13,964 $16,780 $18,891 $17,143 $20,571 $22,264
Subtotal Spent on Operations $26,641 $25,124 $26,851 $33,320 $36,256 $39,057 $42,164 $44,980 $47,091 $45,343 $48,771 $50,464
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 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
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 $28,241 $26,724 $28,451 $34,920 $37,856 $40,657 $43,764 $46,580 $48,691 $46,943 $50,371 $52,064
Net Cash Flow ($28,241) ($26,724) ($5,451) ($4,920) $1,144 $5,343 $10,236 $16,420 $10,309 $21,057 $22,629 $30,936
Cash Balance $124,359 $97,635 $92,184 $87,263 $88,408 $93,750 $103,987 $120,407 $130,716 $151,773 $174,402 $205,338
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 $152,600 $124,359 $97,635 $92,184 $87,263 $88,408 $93,750 $103,987 $120,407 $130,716 $151,773 $174,402 $205,338
Inventory $4,000 $4,000 $4,000 $3,000 $2,500 $1,925 $2,200 $2,640 $2,640 $2,200 $2,420 $2,640 $3,080
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $156,600 $128,359 $101,635 $95,184 $89,763 $90,333 $95,950 $106,627 $123,047 $132,916 $154,193 $177,042 $208,418
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 $156,600 $128,359 $101,635 $95,184 $89,763 $90,333 $95,950 $106,627 $123,047 $132,916 $154,193 $177,042 $208,418
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 $0 $1,507 $7,878 $10,721 $13,418 $16,430 $19,171 $21,347 $19,482 $22,856 $24,433 $27,807
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 $0 $1,507 $7,878 $10,721 $13,418 $16,430 $19,171 $21,347 $19,482 $22,856 $24,433 $27,807
Long-term Liabilities $125,000 $123,400 $121,800 $120,200 $118,600 $117,000 $115,400 $113,800 $112,200 $110,600 $109,000 $107,400 $105,800
Total Liabilities $125,000 $123,400 $123,307 $128,078 $129,321 $130,418 $131,830 $132,971 $133,547 $130,082 $131,856 $131,833 $133,607
Paid-in Capital $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000
Retained Earnings ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400) ($173,400)
Earnings $0 ($26,641) ($53,272) ($64,495) ($71,157) ($71,686) ($67,480) ($57,945) ($42,100) ($28,767) ($9,263) $13,609 $43,211
Total Capital $31,600 $4,959 ($21,672) ($32,895) ($39,557) ($40,086) ($35,880) ($26,345) ($10,500) $2,833 $22,337 $45,209 $74,811
Total Liabilities and Capital $156,600 $128,359 $101,635 $95,184 $89,763 $90,333 $95,950 $106,627 $123,047 $132,916 $154,193 $177,042 $208,418
Net Worth $31,600 $4,959 ($21,672) ($32,895) ($39,557) ($40,086) ($35,880) ($26,345) ($10,500) $2,833 $22,337 $45,209 $74,811