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Insurance Agency Business Plan

Appendix

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09%
Long-term Interest Rate 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09% 9.09%
Tax Rate 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Accounting Services 0% $0 $0 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Insurance Sales 0% $290 $1,255 $1,290 $1,325 $1,355 $1,415 $1,550 $1,760 $1,790 $1,855 $1,855 $1,885
Miscellaneous 0% $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,625 $1,625 $1,625
Total Sales $290 $1,255 $1,790 $3,325 $3,355 $3,415 $4,050 $4,260 $4,290 $4,480 $4,480 $4,510
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Direct Cost of Sales (owner/agent salary) $2,200 $2,200 $2,200 $2,200 $2,200 $2,500 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Other Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $2,200 $2,200 $2,200 $2,200 $2,200 $2,500 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $290 $1,255 $1,790 $3,325 $3,355 $3,415 $4,050 $4,260 $4,290 $4,480 $4,480 $4,510
Direct Cost of Sales $2,200 $2,200 $2,200 $2,200 $2,200 $2,500 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $2,200 $2,200 $2,200 $2,200 $2,200 $2,500 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Gross Margin ($1,910) ($945) ($410) $1,125 $1,155 $915 $1,650 $1,860 $1,890 $2,080 $2,080 $2,110
Gross Margin % -658.62% -75.30% -22.91% 33.83% 34.43% 26.79% 40.74% 43.66% 44.06% 46.43% 46.43% 46.78%
Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Promotion $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Depreciation $85 $85 $85 $85 $85 $85 $85 $85 $85 $85 $85 $85
Employee Benefits $0 $0 $0 $250 $250 $250 $250 $250 $250 $250 $250 $250
Rent $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Utilities $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Telephone/DSL/Cell $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Office Supplies $50 $50 $100 $50 $50 $100 $50 $50 $100 $100 $100 $100
Professional Services $0 $0 $0 $0 $250 $0 $0 $0 $0 $0 $0 $0
Training/Licensing $0 $0 $0 $0 $0 $0 $0 $90 $100 $100 $0 $0
Insurance $0 $0 $0 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Miscellaneous $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Total Operating Expenses $1,135 $1,135 $1,185 $1,485 $1,735 $1,535 $1,485 $1,575 $1,635 $1,635 $1,535 $1,535
Profit Before Interest and Taxes ($3,045) ($2,080) ($1,595) ($360) ($580) ($620) $165 $285 $255 $445 $545 $575
EBITDA ($2,960) ($1,995) ($1,510) ($275) ($495) ($535) $250 $370 $340 $530 $630 $660
Interest Expense $113 $112 $111 $110 $109 $108 $181 $179 $177 $175 $173 $171
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($3,158) ($2,192) ($1,706) ($470) ($689) ($728) ($16) $106 $78 $270 $372 $404
Net Profit/Sales -1088.83% -174.63% -95.29% -14.13% -20.53% -21.31% -0.40% 2.48% 1.81% 6.02% 8.30% 8.95%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $247 $1,067 $1,522 $2,826 $2,852 $2,903 $3,443 $3,621 $3,647 $3,808 $3,808 $3,834
Subtotal Cash from Operations $248 $1,115 $1,712 $3,102 $3,351 $3,406 $3,958 $4,230 $4,286 $4,452 $4,480 $4,506
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $248 $1,115 $1,712 $3,102 $3,351 $3,406 $13,958 $4,230 $4,286 $4,452 $4,480 $4,506
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $112 $3,363 $3,363 $3,421 $3,718 $3,962 $4,055 $3,984 $4,071 $4,127 $4,122 $4,023
Subtotal Spent on Operations $112 $3,363 $3,363 $3,421 $3,718 $3,962 $4,055 $3,984 $4,071 $4,127 $4,122 $4,023
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $129 $129 $130 $131 $132 $133 $263 $263 $266 $268 $270 $273
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $241 $3,492 $3,493 $3,552 $3,850 $4,095 $4,318 $4,247 $4,337 $4,395 $4,392 $4,296
Net Cash Flow $7 ($2,377) ($1,781) ($449) ($499) ($689) $9,640 ($18) ($52) $57 $88 $209
Cash Balance $12,007 $9,630 $7,850 $7,400 $6,901 $6,212 $15,852 $15,834 $15,783 $15,840 $15,928 $16,137
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $12,000 $12,007 $9,630 $7,850 $7,400 $6,901 $6,212 $15,852 $15,834 $15,783 $15,840 $15,928 $16,137
Accounts Receivable $0 $42 $182 $260 $482 $486 $495 $587 $618 $622 $650 $650 $654
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $12,000 $12,049 $9,812 $8,109 $7,882 $7,387 $6,708 $16,439 $16,452 $16,405 $16,489 $16,577 $16,791
Long-term Assets
Long-term Assets $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Accumulated Depreciation $0 $85 $170 $255 $340 $425 $510 $595 $680 $765 $850 $935 $1,020
Total Long-term Assets $3,000 $2,915 $2,830 $2,745 $2,660 $2,575 $2,490 $2,405 $2,320 $2,235 $2,150 $2,065 $1,980
Total Assets $15,000 $14,964 $12,642 $10,854 $10,542 $9,962 $9,198 $18,844 $18,772 $18,640 $18,639 $18,642 $18,771
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $3,251 $3,250 $3,297 $3,586 $3,827 $3,922 $3,849 $3,934 $3,990 $3,988 $3,889 $3,887
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $3,251 $3,250 $3,297 $3,586 $3,827 $3,922 $3,849 $3,934 $3,990 $3,988 $3,889 $3,887
Long-term Liabilities $15,000 $14,871 $14,742 $14,612 $14,481 $14,349 $14,216 $23,953 $23,690 $23,424 $23,156 $22,886 $22,613
Total Liabilities $15,000 $18,122 $17,992 $17,909 $18,067 $18,176 $18,138 $27,802 $27,624 $27,414 $27,144 $26,775 $26,500
Paid-in Capital $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Retained Earnings ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000) ($15,000)
Earnings $0 ($3,158) ($5,349) ($7,055) ($7,525) ($8,213) ($8,941) ($8,957) ($8,852) ($8,774) ($8,504) ($8,133) ($7,729)
Total Capital $0 ($3,158) ($5,349) ($7,055) ($7,525) ($8,213) ($8,941) ($8,957) ($8,852) ($8,774) ($8,504) ($8,133) ($7,729)
Total Liabilities and Capital $15,000 $14,964 $12,642 $10,854 $10,542 $9,962 $9,198 $18,844 $18,772 $18,640 $18,639 $18,642 $18,771
Net Worth $0 ($3,158) ($5,349) ($7,055) ($7,525) ($8,213) ($8,941) ($8,957) ($8,852) ($8,774) ($8,504) ($8,133) ($7,729)