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Musical Instrument Store 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
Sales
Guitar Sales 0% $7,000 $8,500 $10,500 $10,500 $12,500 $14,500 $17,000 $17,500 $22,000 $35,000 $22,000 $18,000
Band and Orchestral Instruments 0% $3,200 $3,500 $3,460 $3,632 $3,200 $6,576 $6,576 $5,900 $7,000 $10,000 $3,100 $2,000
Amplifiers, Keyboards etc. 0% $1,200 $1,500 $1,700 $1,900 $2,000 $2,000 $2,000 $2,200 $3,000 $5,200 $2,900 $2,000
Accessories 0% $9,000 $11,004 $11,316 $13,464 $13,900 $13,500 $18,516 $17,590 $20,000 $30,000 $22,000 $15,984
Print & DVD 0% $300 $750 $800 $1,000 $1,000 $1,200 $1,200 $1,200 $2,100 $3,800 $1,200 $1,000
Rentals 0% $0 $100 $250 $300 $500 $500 $500 $600 $600 $1,000 $400 $200
Repair Labor 0% $350 $500 $650 $700 $1,005 $1,400 $1,755 $1,500 $1,900 $3,500 $2,500 $1,500
Total Sales $21,050 $25,854 $28,676 $31,496 $34,105 $39,676 $47,547 $46,490 $56,600 $88,500 $54,100 $40,684
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
Guitar Sales $4,200 $5,100 $6,300 $6,300 $7,500 $8,700 $10,200 $10,500 $13,200 $21,000 $13,200 $10,800
Band and Orchestral Instruments $1,600 $1,750 $1,730 $1,816 $1,600 $3,288 $3,288 $2,950 $3,500 $5,000 $1,550 $1,000
Amplifiers, Keyboards etc. $720 $900 $1,020 $1,140 $1,200 $1,200 $1,200 $1,320 $1,800 $3,120 $1,740 $1,200
Accessories $3,600 $4,402 $4,526 $5,386 $5,560 $5,400 $7,406 $7,036 $8,000 $12,000 $8,800 $6,394
Print & DVD $180 $450 $480 $600 $600 $720 $720 $720 $1,260 $2,280 $720 $600
Rentals $0 $100 $250 $300 $500 $500 $500 $600 $600 $1,000 $400 $200
Repair Labor $53 $75 $98 $105 $151 $210 $263 $225 $285 $525 $375 $225
Subtotal Direct Cost of Sales $10,353 $12,777 $14,404 $15,647 $17,111 $20,018 $23,578 $23,351 $28,645 $44,925 $26,785 $20,419
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
Dave Moore 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,500 $2,500 $2,500
Kayle Moore 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,500 $2,500 $2,500
C. Ray Himes 0% $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
Full-time Employee #1 0% $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700
Full-time Employee #2 0% $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700
Part-time Employee #1 0% $450 $450 $450 $450 $450 $450 $450 $550 $750 $950 $750 $450
Part-time Employee #2 0% $450 $450 $450 $450 $450 $450 $450 $550 $750 $950 $750 $450
Seasonal Employee #1 0% $0 $0 $0 $0 $0 $0 $0 $0 $700 $700 $350 $0
Total People 7 7 7 7 7 7 7 7 8 8 8 7
Total Payroll $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,700 $12,800 $15,200 $12,450 $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 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
Long-term Interest Rate 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
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 $21,050 $25,854 $28,676 $31,496 $34,105 $39,676 $47,547 $46,490 $56,600 $88,500 $54,100 $40,684
Direct Cost of Sales $10,353 $12,777 $14,404 $15,647 $17,111 $20,018 $23,578 $23,351 $28,645 $44,925 $26,785 $20,419
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $10,353 $12,777 $14,404 $15,647 $17,111 $20,018 $23,578 $23,351 $28,645 $44,925 $26,785 $20,419
Gross Margin $10,698 $13,077 $14,272 $15,849 $16,994 $19,658 $23,969 $23,139 $27,955 $43,575 $27,315 $20,265
Gross Margin % 50.82% 50.58% 49.77% 50.32% 49.83% 49.55% 50.41% 49.77% 49.39% 49.24% 50.49% 49.81%
Expenses
Payroll $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,700 $12,800 $15,200 $12,450 $11,500
Sales and Marketing and Other Expenses $6,400 $3,400 $3,400 $3,400 $5,900 $3,400 $3,400 $2,400 $4,500 $5,700 $5,900 $3,400
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Acountant Expense $800 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Utilities $1,040 $1,040 $1,130 $1,380 $1,790 $1,460 $1,370 $1,460 $1,760 $2,210 $1,400 $1,080
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Rent $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Website Maintenance $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Total Operating Expenses $22,665 $19,265 $19,355 $19,605 $22,515 $19,685 $19,595 $18,885 $22,385 $26,435 $23,075 $19,305
Profit Before Interest and Taxes ($11,968) ($6,188) ($5,083) ($3,756) ($5,521) ($27) $4,374 $4,254 $5,570 $17,140 $4,240 $960
EBITDA ($11,968) ($6,188) ($5,083) ($3,756) ($5,521) ($27) $4,374 $4,254 $5,570 $17,140 $4,240 $960
Interest Expense $1,067 $1,051 $1,035 $1,019 $1,003 $987 $971 $955 $939 $923 $906 $890
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($13,035) ($7,239) ($6,118) ($4,775) ($6,524) ($1,014) $3,404 $3,299 $4,631 $16,217 $3,334 $70
Net Profit/Sales -61.92% -28.00% -21.33% -15.16% -19.13% -2.56% 7.16% 7.10% 8.18% 18.32% 6.16% 0.17%
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 $21,050 $25,854 $28,676 $31,496 $34,105 $39,676 $47,547 $46,490 $56,600 $88,500 $54,100 $40,684
Subtotal Cash from Operations $21,050 $25,854 $28,676 $31,496 $34,105 $39,676 $47,547 $46,490 $56,600 $88,500 $54,100 $40,684
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $21,050 $25,854 $28,676 $31,496 $34,105 $39,676 $47,547 $46,490 $56,600 $88,500 $54,100 $40,684
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 $11,700 $12,800 $15,200 $12,450 $11,500
Bill Payments $408 $12,118 $8,819 $8,898 $9,220 $11,923 $9,168 $9,466 $21,860 $45,992 $73,103 $18,487
Subtotal Spent on Operations $11,908 $23,618 $20,319 $20,398 $20,720 $23,423 $20,668 $21,166 $34,660 $61,192 $85,553 $29,987
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 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969 $2,969
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 $14,877 $26,587 $23,288 $23,367 $23,689 $26,392 $23,637 $24,135 $37,629 $64,161 $88,522 $32,956
Net Cash Flow $6,173 ($733) $5,388 $8,129 $10,416 $13,284 $23,910 $22,355 $18,971 $24,339 ($34,422) $7,728
Cash Balance $74,673 $73,940 $79,328 $87,457 $97,873 $111,157 $135,067 $157,422 $176,392 $200,732 $166,310 $174,037
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 $68,500 $74,673 $73,940 $79,328 $87,457 $97,873 $111,157 $135,067 $157,422 $176,392 $200,732 $166,310 $174,037
Inventory $150,000 $139,648 $126,871 $112,467 $96,820 $79,710 $59,692 $36,114 $25,686 $31,510 $49,418 $29,464 $22,460
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $218,500 $214,321 $200,811 $191,795 $184,278 $177,583 $170,848 $171,181 $183,108 $207,902 $250,149 $195,773 $196,498
Long-term Assets
Long-term Assets $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Total Assets $226,000 $221,821 $208,311 $199,295 $191,778 $185,083 $178,348 $178,681 $190,608 $215,402 $257,649 $203,273 $203,998
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 $11,825 $8,522 $8,594 $8,820 $11,617 $8,866 $8,764 $20,361 $43,492 $72,491 $17,750 $21,374
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 $11,825 $8,522 $8,594 $8,820 $11,617 $8,866 $8,764 $20,361 $43,492 $72,491 $17,750 $21,374
Long-term Liabilities $200,000 $197,031 $194,062 $191,093 $188,124 $185,155 $182,186 $179,217 $176,248 $173,279 $170,310 $167,341 $164,372
Total Liabilities $200,000 $208,856 $202,584 $199,687 $196,944 $196,772 $191,052 $187,981 $196,609 $216,771 $242,801 $185,091 $185,746
Paid-in Capital $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Retained Earnings ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000) ($34,000)
Earnings $0 ($13,035) ($20,274) ($26,392) ($31,166) ($37,690) ($38,704) ($35,300) ($32,001) ($27,369) ($11,152) ($7,818) ($7,748)
Total Capital $26,000 $12,965 $5,726 ($392) ($5,166) ($11,690) ($12,704) ($9,300) ($6,001) ($1,369) $14,848 $18,182 $18,252
Total Liabilities and Capital $226,000 $221,821 $208,311 $199,295 $191,778 $185,083 $178,348 $178,681 $190,608 $215,402 $257,649 $203,273 $203,998
Net Worth $26,000 $12,965 $5,726 ($392) ($5,166) ($11,690) ($12,704) ($9,300) ($6,001) ($1,369) $14,848 $18,182 $18,252