We are assuming start-up will be financed by the investors and continued financing will come through long-term loan (interest rate around 7%).
The financial plan depends on important assumptions. The monthly assumptions are included in the appendix. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the important underlying assumptions are:
For our Break-even Analysis, we assume monthly running costs which include our full payroll, rent, and utilities, and an estimation of other running costs.
Margins are harder to assume.
The table shows what we need to sell per month to break-even, according to these assumptions. This is about two-thirds of our planned sales level, so we believe we can maintain it.
It should be emphasized that revenue from equipment selling, beverage, sponsorship and equipment rental is not taken into account in order to cover the worst case.
Our projected profit and loss is shown on the Profit and Loss table. We show a conservative estimated net profit in the first year. According to the research carried out by our team, these projections are conservative and should be easily attained. The monthly estimates are included in the appendix.
The following cash flow projections show our annual amounts only. For more detailed monthly projections please see the appendix.
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
The table follows with our main business ratios. These are compared with the Industry Profile ratios as determined for the Golf Course Industry, NAICS code 713910. We do intend to improve gross margin, and inventory turnover.