FireRescue Depot

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Fire Rescue E-commerce Business Plan

Financial Plan

The following sections outline important financial information.

Important Assumptions

The following table details relevant Financial 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 30.00% 30.00% 30.00%
Other 0 0 0

Break-even Analysis

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

Break-even Analysis
Monthly Revenue Break-even $22,851
Assumptions:
Average Percent Variable Cost 39%
Estimated Monthly Fixed Cost $13,939

Projected Profit and Loss

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

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $141,300 $348,947 $415,643
Direct Cost of Sales $55,107 $136,089 $162,101
Other Costs of Goods $0 $0 $0
Total Cost of Sales $55,107 $136,089 $162,101
Gross Margin $86,193 $212,858 $253,542
Gross Margin % 61.00% 61.00% 61.00%
Expenses
Payroll $117,800 $156,400 $160,400
Sales and Marketing and Other Expenses $5,300 $3,600 $3,600
Depreciation $6,996 $6,996 $6,996
Rent $12,000 $13,000 $14,000
Utilities $3,000 $3,000 $3,000
Insurance $3,000 $3,000 $3,000
Payroll Taxes $17,670 $23,460 $24,060
Other $1,500 $1,500 $1,500
Total Operating Expenses $167,266 $210,956 $216,556
Profit Before Interest and Taxes ($81,073) $1,902 $36,986
EBITDA ($74,077) $8,898 $43,982
Interest Expense $0 $0 $0
Taxes Incurred $0 $571 $11,096
Net Profit ($81,073) $1,331 $25,890
Net Profit/Sales -57.38% 0.38% 6.23%

Projected Cash Flow

The following chart and table show the Projected Cash Flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $141,300 $348,947 $415,643
Subtotal Cash from Operations $141,300 $348,947 $415,643
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 $0 $0 $0
Subtotal Cash Received $141,300 $348,947 $415,643
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $117,800 $156,400 $160,400
Bill Payments $83,729 $182,926 $219,222
Subtotal Spent on Operations $201,529 $339,326 $379,622
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 $201,529 $339,326 $379,622
Net Cash Flow ($60,230) $9,621 $36,021
Cash Balance $11,770 $21,391 $57,412

Projected Balance Sheet

The following table presents the Projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $11,770 $21,391 $57,412
Other Current Assets $6,500 $6,500 $6,500
Total Current Assets $18,270 $27,891 $63,912
Long-term Assets
Long-term Assets $35,000 $35,000 $35,000
Accumulated Depreciation $6,996 $13,992 $20,988
Total Long-term Assets $28,004 $21,008 $14,012
Total Assets $46,274 $48,899 $77,924
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $13,847 $15,141 $18,276
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $13,847 $15,141 $18,276
Long-term Liabilities $0 $0 $0
Total Liabilities $13,847 $15,141 $18,276
Paid-in Capital $135,000 $135,000 $135,000
Retained Earnings ($21,500) ($102,573) ($101,242)
Earnings ($81,073) $1,331 $25,890
Total Capital $32,427 $33,758 $59,648
Total Liabilities and Capital $46,274 $48,899 $77,924
Net Worth $32,427 $33,758 $59,648

Business Ratios

The following table displays common Business Ratios for both FireRescue Depot and the industry. Our SIC industry class is Firefighting and related equipment - 3569.02.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 146.96% 19.11% -7.72%
Percent of Total Assets
Other Current Assets 14.05% 13.29% 8.34% 21.77%
Total Current Assets 39.48% 57.04% 82.02% 76.03%
Long-term Assets 60.52% 42.96% 17.98% 23.97%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 29.92% 30.96% 23.45% 32.40%
Long-term Liabilities 0.00% 0.00% 0.00% 16.93%
Total Liabilities 29.92% 30.96% 23.45% 49.33%
Net Worth 70.08% 69.04% 76.55% 50.67%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 61.00% 61.00% 61.00% 34.31%
Selling, General & Administrative Expenses 118.38% 60.62% 54.77% 20.80%
Advertising Expenses 0.00% 0.00% 0.00% 0.62%
Profit Before Interest and Taxes -57.38% 0.54% 8.90% 2.52%
Main Ratios
Current 1.32 1.84 3.50 2.09
Quick 1.32 1.84 3.50 1.04
Total Debt to Total Assets 29.92% 30.96% 23.45% 4.53%
Pre-tax Return on Net Worth -250.02% 5.63% 62.01% 54.20%
Pre-tax Return on Assets -175.20% 3.89% 47.46% 9.89%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -57.38% 0.38% 6.23% n.a
Return on Equity -250.02% 3.94% 43.40% n.a
Activity Ratios
Accounts Payable Turnover 7.05 12.17 12.17 n.a
Payment Days 27 29 27 n.a
Total Asset Turnover 3.05 7.14 5.33 n.a
Debt Ratios
Debt to Net Worth 0.43 0.45 0.31 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $4,423 $12,750 $45,636 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.33 0.14 0.19 n.a
Current Debt/Total Assets 30% 31% 23% n.a
Acid Test 1.32 1.84 3.50 n.a
Sales/Net Worth 4.36 10.34 6.97 n.a
Dividend Payout 0.00 0.00 0.00 n.a