Mojo Music

Start your own business plan »

Music Retail Business Plan

Appendix

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
Unit Sales
New CDs 0% 1,000 1,000 1,300 1,400 1,800 2,000 1,500 1,200 1,600 1,600 1,900 2,100
Used CDs 0% 2,000 2,500 2,500 2,800 3,000 3,200 2,500 2,000 2,800 3,000 3,200 4,000
CD/DVD Recording Media 0% 1,000 1,000 1,000 1,300 1,500 1,300 1,000 1,000 1,000 1,300 1,700 2,000
DVD Rentals 0% 2,000 1,200 1,300 1,800 2,200 2,800 2,000 2,000 2,800 3,400 3,400 3,200
Other 0% 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 6,000 5,700 6,100 7,300 8,500 9,300 7,000 6,200 8,200 9,300 10,200 11,300
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
New CDs $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00
Used CDs $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
CD/DVD Recording Media $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
DVD Rentals $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales
New CDs $16,000 $16,000 $20,800 $22,400 $28,800 $32,000 $24,000 $19,200 $25,600 $25,600 $30,400 $33,600
Used CDs $20,000 $25,000 $25,000 $28,000 $30,000 $32,000 $25,000 $20,000 $28,000 $30,000 $32,000 $40,000
CD/DVD Recording Media $10,000 $10,000 $10,000 $13,000 $15,000 $13,000 $10,000 $10,000 $10,000 $13,000 $17,000 $20,000
DVD Rentals $6,000 $3,600 $3,900 $5,400 $6,600 $8,400 $6,000 $6,000 $8,400 $10,200 $10,200 $9,600
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $52,000 $54,600 $59,700 $68,800 $80,400 $85,400 $65,000 $55,200 $72,000 $78,800 $89,600 $103,200
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
New CDs 0.00% $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00
Used CDs 0.00% $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
CD/DVD Recording Media 0.00% $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00
DVD Rentals 0.00% $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Other 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales
New CDs $11,000 $11,000 $14,300 $15,400 $19,800 $22,000 $16,500 $13,200 $17,600 $17,600 $20,900 $23,100
Used CDs $10,000 $12,500 $12,500 $14,000 $15,000 $16,000 $12,500 $10,000 $14,000 $15,000 $16,000 $20,000
CD/DVD Recording Media $4,000 $4,000 $4,000 $5,200 $6,000 $5,200 $4,000 $4,000 $4,000 $5,200 $6,800 $8,000
DVD Rentals $2,000 $1,200 $1,300 $1,800 $2,200 $2,800 $2,000 $2,000 $2,800 $3,400 $3,400 $3,200
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $27,000 $28,700 $32,100 $36,400 $43,000 $46,000 $35,000 $29,200 $38,400 $41,200 $47,100 $54,300
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Assistant Manager 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Customer Assistants 0% $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500
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 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
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 $52,000 $54,600 $59,700 $68,800 $80,400 $85,400 $65,000 $55,200 $72,000 $78,800 $89,600 $103,200
Direct Cost of Sales $27,000 $28,700 $32,100 $36,400 $43,000 $46,000 $35,000 $29,200 $38,400 $41,200 $47,100 $54,300
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $27,000 $28,700 $32,100 $36,400 $43,000 $46,000 $35,000 $29,200 $38,400 $41,200 $47,100 $54,300
Gross Margin $25,000 $25,900 $27,600 $32,400 $37,400 $39,400 $30,000 $26,000 $33,600 $37,600 $42,500 $48,900
Gross Margin % 48.08% 47.44% 46.23% 47.09% 46.52% 46.14% 46.15% 47.10% 46.67% 47.72% 47.43% 47.38%
Expenses
Payroll $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500
Sales and Marketing and Other Expenses $20,000 $20,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Depreciation $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Payroll Taxes 15% $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $38,220 $38,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220
Profit Before Interest and Taxes ($13,220) ($12,320) $3,380 $8,180 $13,180 $15,180 $5,780 $1,780 $9,380 $13,380 $18,280 $24,680
EBITDA ($12,625) ($11,725) $3,975 $8,775 $13,775 $15,775 $6,375 $2,375 $9,975 $13,975 $18,875 $25,275
Interest Expense $819 $806 $792 $778 $764 $750 $736 $722 $708 $695 $681 $667
Taxes Incurred ($4,212) ($3,938) $776 $2,221 $3,725 $4,329 $1,513 $317 $2,601 $3,806 $5,280 $7,204
Net Profit ($9,828) ($9,188) $1,812 $5,182 $8,691 $10,101 $3,531 $740 $6,070 $8,880 $12,320 $16,809
Net Profit/Sales -18.90% -16.83% 3.03% 7.53% 10.81% 11.83% 5.43% 1.34% 8.43% 11.27% 13.75% 16.29%
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 $13,000 $13,650 $14,925 $17,200 $20,100 $21,350 $16,250 $13,800 $18,000 $19,700 $22,400 $25,800
Cash from Receivables $0 $1,300 $39,065 $41,078 $45,003 $51,890 $60,425 $63,540 $48,505 $41,820 $54,170 $59,370
Subtotal Cash from Operations $13,000 $14,950 $53,990 $58,278 $65,103 $73,240 $76,675 $77,340 $66,505 $61,520 $76,570 $85,170
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 $0 $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 $68,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,000 $82,950 $53,990 $58,278 $65,103 $73,240 $76,675 $77,340 $66,505 $61,520 $76,570 $85,170
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 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500
Bill Payments $2,648 $78,570 $53,429 $49,757 $56,607 $66,861 $65,530 $37,231 $36,917 $63,853 $61,264 $72,027
Subtotal Spent on Operations $14,148 $90,070 $64,929 $61,257 $68,107 $78,361 $77,030 $48,731 $48,417 $75,353 $72,764 $83,527
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 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
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 $15,814 $91,736 $66,595 $62,923 $69,773 $80,027 $78,696 $50,397 $50,083 $77,019 $74,430 $85,193
Net Cash Flow ($2,814) ($8,786) ($12,605) ($4,646) ($4,671) ($6,787) ($2,021) $26,943 $16,422 ($15,499) $2,140 ($23)
Cash Balance $46,186 $37,400 $24,795 $20,150 $15,479 $8,691 $6,671 $33,613 $50,035 $34,536 $36,676 $36,653
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 $49,000 $46,186 $37,400 $24,795 $20,150 $15,479 $8,691 $6,671 $33,613 $50,035 $34,536 $36,676 $36,653
Accounts Receivable $0 $39,000 $78,650 $84,360 $94,883 $110,180 $122,340 $110,665 $88,525 $94,020 $111,300 $124,330 $142,360
Inventory $0 $29,700 $31,570 $35,310 $40,040 $47,300 $50,600 $38,500 $32,120 $42,240 $45,320 $51,810 $59,730
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $49,000 $114,886 $147,620 $144,465 $155,072 $172,959 $181,631 $155,836 $154,258 $186,295 $191,156 $212,816 $238,743
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Accumulated Depreciation $0 $595 $1,190 $1,785 $2,380 $2,975 $3,570 $4,165 $4,760 $5,355 $5,950 $6,545 $7,140
Total Long-term Assets $50,000 $49,405 $48,810 $48,215 $47,620 $47,025 $46,430 $45,835 $45,240 $44,645 $44,050 $43,455 $42,860
Total Assets $99,000 $164,291 $196,430 $192,680 $202,692 $219,984 $228,061 $201,671 $199,498 $230,940 $235,206 $256,271 $281,603
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 $76,785 $51,777 $47,882 $54,378 $64,645 $64,287 $36,032 $34,785 $61,823 $58,875 $69,286 $79,475
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 $76,785 $51,777 $47,882 $54,378 $64,645 $64,287 $36,032 $34,785 $61,823 $58,875 $69,286 $79,475
Long-term Liabilities $100,000 $98,334 $96,668 $95,002 $93,336 $91,670 $90,004 $88,338 $86,672 $85,006 $83,340 $81,674 $80,008
Total Liabilities $100,000 $175,119 $148,445 $142,884 $147,714 $156,315 $154,291 $124,370 $121,457 $146,829 $142,215 $150,960 $159,483
Paid-in Capital $150,000 $150,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000 $218,000
Retained Earnings ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000) ($151,000)
Earnings $0 ($9,828) ($19,016) ($17,204) ($12,022) ($3,331) $6,770 $10,301 $11,041 $17,111 $25,991 $38,311 $55,120
Total Capital ($1,000) ($10,828) $47,984 $49,796 $54,978 $63,669 $73,770 $77,301 $78,041 $84,111 $92,991 $105,311 $122,120
Total Liabilities and Capital $99,000 $164,291 $196,430 $192,680 $202,692 $219,984 $228,061 $201,671 $199,498 $230,940 $235,206 $256,271 $281,603
Net Worth ($1,000) ($10,828) $47,984 $49,796 $54,978 $63,669 $73,770 $77,301 $78,041 $84,111 $92,991 $105,311 $122,120