The financial plan contains these essential factors:
Difficulties and Risks
The following critical assumptions will determine the potential for future success.
The following chart and table summarize our break-even analysis. Our fixed costs will be approximately $14,800 per month at the onset and we expect to reach the break-even point in the third year of operation.
The following represents the projected profit and loss for Rose Petal Nursery based, on sales and expenses, for 2004 and beyond. We are anticipating a steady increase in sales through July. Business is expected to slow during the autumn and winter.
The cash flow projections are outlined below. These projections are based on our basic assumptions with revenue generation factors carrying the most significant weight regarding the outcome. We are anticipating that we will have a steadily increasing cash flow as the business continues to grow.
Rose Petal Nursery's balance sheet is outlined below.
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) Code 5193.02, Flowers and Nursery Stock are shown for comparison.
The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model: