For our break-even analysis, we assume running costs which include our full payroll, rent, and utilities, and an estimation of other running costs. The chart shows what we need to sell per month to break even, according to these assumptions.
This business plan assumes an eventual 10% profit and is built using the following allocations of gross revenue:
The Cash Flow table, below, shows a solid cash balance from day one. Because Red White & Bloom will sell on a cash-basis only, and will stock only slightly more than one month's inventory at any time, we do not anticipate any problems with cash flow, once we have obtained sufficient start-up funds.
The Balance Sheet, below, shows our projected assets and liabilities for the three years of the plan, including accumulated depreciation of long-term assets.
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5992, Florists, are shown for comparison.
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