Event Planning Business Plan

Corporate Retreat Professionals

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Financial Plan

The following subtopics will provide financial information.

7.1 Important Assumptions

See the following table for the company's general assumptions.

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

7.2 Break-even Analysis

This Break-even Analysis projects the figure of approximately $10,000 as the monthly sales Break-even point.

Break-even Analysis
Monthly Revenue Break-even $10,174
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost $7,660

7.3 Projected Profit and Loss

The following table indicates the projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $94,366 $188,005 $214,813
Direct Cost of Sales $23,314 $32,065 $38,130
Other $0 $0 $0
Total Cost of Sales $23,314 $32,065 $38,130
Gross Margin $71,052 $155,940 $176,683
Gross Margin % 75.29% 82.94% 82.25%
Expenses
Payroll $60,700 $73,200 $80,000
Sales and Marketing and Other Expenses $1,100 $1,200 $1,200
Depreciation $1,668 $1,668 $1,664
Leased Equipment $0 $0 $0
Utilities $1,200 $1,200 $1,200
Insurance $2,400 $2,400 $2,400
Rent $14,400 $14,400 $14,400
Payroll Taxes $10,455 $15,030 $16,050
Other $0 $0 $0
Total Operating Expenses $91,923 $109,098 $116,914
Profit Before Interest and Taxes ($20,871) $46,842 $59,769
EBITDA ($19,203) $48,510 $61,433
Interest Expense $0 $0 $0
Taxes Incurred $0 $11,711 $15,191
Net Profit ($20,871) $35,132 $44,578
Net Profit/Sales -22.12% 18.69% 20.75%

7.4 Projected Cash Flow

The following table indicates projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $23,592 $47,001 $53,703
Cash from Receivables $49,432 $119,826 $155,047
Subtotal Cash from Operations $73,023 $166,827 $208,750
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 $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $12,000 $0 $0
Subtotal Cash Received $85,023 $166,827 $208,750
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $60,700 $73,200 $80,000
Bill Payments $50,527 $79,651 $88,849
Subtotal Spent on Operations $111,227 $152,851 $168,849
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 $111,227 $152,851 $168,849
Net Cash Flow ($26,203) $13,976 $39,901
Cash Balance $15,397 $29,372 $69,273

7.5 Projected Balance Sheet

The following table indicates the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $15,397 $29,372 $69,273
Accounts Receivable $21,343 $42,521 $48,584
Inventory $4,250 $5,846 $6,952
Other Current Assets $0 $0 $0
Total Current Assets $40,990 $77,739 $124,809
Long-term Assets
Long-term Assets $5,000 $5,000 $5,000
Accumulated Depreciation $1,668 $3,336 $5,000
Total Long-term Assets $3,332 $1,664 $0
Total Assets $44,322 $79,403 $124,809
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $6,593 $6,543 $7,371
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $6,593 $6,543 $7,371
Long-term Liabilities $0 $0 $0
Total Liabilities $6,593 $6,543 $7,371
Paid-in Capital $62,000 $62,000 $62,000
Retained Earnings ($3,400) ($24,271) $10,861
Earnings ($20,871) $35,132 $44,578
Total Capital $37,729 $72,861 $117,438
Total Liabilities and Capital $44,322 $79,403 $124,809
Net Worth $37,729 $72,861 $117,438
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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 $10,174
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost $7,660
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $94,366 $188,005 $214,813
Direct Cost of Sales $23,314 $32,065 $38,130
Other $0 $0 $0
Total Cost of Sales $23,314 $32,065 $38,130
Gross Margin $71,052 $155,940 $176,683
Gross Margin % 75.29% 82.94% 82.25%
Expenses
Payroll $60,700 $73,200 $80,000
Sales and Marketing and Other Expenses $1,100 $1,200 $1,200
Depreciation $1,668 $1,668 $1,664
Leased Equipment $0 $0 $0
Utilities $1,200 $1,200 $1,200
Insurance $2,400 $2,400 $2,400
Rent $14,400 $14,400 $14,400
Payroll Taxes $10,455 $15,030 $16,050
Other $0 $0 $0
Total Operating Expenses $91,923 $109,098 $116,914
Profit Before Interest and Taxes ($20,871) $46,842 $59,769
EBITDA ($19,203) $48,510 $61,433
Interest Expense $0 $0 $0
Taxes Incurred $0 $11,711 $15,191
Net Profit ($20,871) $35,132 $44,578
Net Profit/Sales -22.12% 18.69% 20.75%
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $23,592 $47,001 $53,703
Cash from Receivables $49,432 $119,826 $155,047
Subtotal Cash from Operations $73,023 $166,827 $208,750
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 $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $12,000 $0 $0
Subtotal Cash Received $85,023 $166,827 $208,750
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $60,700 $73,200 $80,000
Bill Payments $50,527 $79,651 $88,849
Subtotal Spent on Operations $111,227 $152,851 $168,849
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 $111,227 $152,851 $168,849
Net Cash Flow ($26,203) $13,976 $39,901
Cash Balance $15,397 $29,372 $69,273
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $15,397 $29,372 $69,273
Accounts Receivable $21,343 $42,521 $48,584
Inventory $4,250 $5,846 $6,952
Other Current Assets $0 $0 $0
Total Current Assets $40,990 $77,739 $124,809
Long-term Assets
Long-term Assets $5,000 $5,000 $5,000
Accumulated Depreciation $1,668 $3,336 $5,000
Total Long-term Assets $3,332 $1,664 $0
Total Assets $44,322 $79,403 $124,809
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $6,593 $6,543 $7,371
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $6,593 $6,543 $7,371
Long-term Liabilities $0 $0 $0
Total Liabilities $6,593 $6,543 $7,371
Paid-in Capital $62,000 $62,000 $62,000
Retained Earnings ($3,400) ($24,271) $10,861
Earnings ($20,871) $35,132 $44,578
Total Capital $37,729 $72,861 $117,438
Total Liabilities and Capital $44,322 $79,403 $124,809
Net Worth $37,729 $72,861 $117,438