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Online College Bookstore 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
Textbook Exchange 0% $1,000 $25,000 $35,000 $50,000 $35,000 $50,000 $60,000 $75,000 $80,000 $90,000 $115,000 $125,000
Classifieds 0% $1,000 $20,000 $25,000 $40,000 $30,000 $45,000 $50,000 $60,000 $75,000 $70,000 $80,000 $100,000
Auctions 0% $1,000 $10,000 $20,000 $25,000 $20,000 $25,000 $30,000 $30,000 $25,000 $30,000 $35,000 $40,000
Retail 0% $1,000 $2,500 $5,000 $10,000 $10,000 $12,500 $15,000 $20,000 $20,000 $25,000 $35,000 $50,000
Advertisement 0% $1,000 $2,500 $5,000 $10,000 $15,000 $20,000 $25,000 $25,000 $30,000 $40,000 $50,000 $55,000
Total Sales $5,000 $60,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,000 $255,000 $315,000 $370,000
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
Textbook Exchange $1,000 $5,000 $10,000 $15,000 $20,000 $30,000 $40,000 $45,000 $40,000 $50,000 $60,000 $75,000
Classifieds $1,000 $2,000 $5,000 $10,000 $15,000 $20,000 $25,000 $27,000 $30,000 $33,000 $40,000 $50,000
Auction $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $17,500 $20,000 $20,000 $22,000 $25,000 $25,000
Retail $1,000 $1,500 $5,000 $10,000 $12,000 $15,000 $20,000 $22,000 $25,000 $25,000 $27,000 $30,000
Advertisement $1,000 $2,500 $5,000 $5,000 $10,000 $10,000 $15,000 $20,000 $20,000 $25,000 $27,000 $30,000
Subtotal Direct Cost of Sales $5,000 $13,500 $30,000 $47,500 $67,000 $90,000 $117,500 $134,000 $135,000 $155,000 $179,000 $210,000
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
Gerald Owens 0% $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500
Kelley Mitchell 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Andrea Powers 0% $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750
College Reps (1 at each College for phase 1) 0% $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000
Students Interns 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 22 22 22 22 22 22 22 22 22 22 22 22
Total Payroll $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250
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 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Long-term Interest Rate 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Tax Rate 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00% 27.00%
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 $5,000 $60,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,000 $255,000 $315,000 $370,000
Direct Cost of Sales $5,000 $13,500 $30,000 $47,500 $67,000 $90,000 $117,500 $134,000 $135,000 $155,000 $179,000 $210,000
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $5,000 $13,500 $30,000 $47,500 $67,000 $90,000 $117,500 $134,000 $135,000 $155,000 $179,000 $210,000
Gross Margin $0 $46,500 $60,000 $87,500 $43,000 $62,500 $62,500 $76,000 $95,000 $100,000 $136,000 $160,000
Gross Margin % 0.00% 77.50% 66.67% 64.81% 39.09% 40.98% 34.72% 36.19% 41.30% 39.22% 43.17% 43.24%
Expenses
Payroll $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Web Hosting $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Website Enhancement Projects $25,000 $10,000 $10,000 $10,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $10,000 $10,000
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988
Other General and Administrative Expenses $100 $100 $100 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total Operating Expenses $64,598 $49,598 $49,598 $49,998 $64,998 $64,998 $64,998 $64,998 $64,998 $64,998 $49,998 $49,998
Profit Before Interest and Taxes ($64,598) ($3,098) $10,403 $37,503 ($21,998) ($2,498) ($2,498) $11,003 $30,003 $35,003 $86,003 $110,003
EBITDA ($64,598) ($3,098) $10,403 $37,503 ($21,998) ($2,498) ($2,498) $11,003 $30,003 $35,003 $86,003 $110,003
Interest Expense $35 $33 $31 $29 $26 $24 $22 $20 $17 $15 $13 $11
Taxes Incurred ($17,451) ($845) $2,800 $10,118 ($5,946) ($681) ($680) $2,965 $8,096 $9,447 $23,217 $29,698
Net Profit ($47,182) ($2,285) $7,571 $27,356 ($16,077) ($1,841) ($1,839) $8,018 $21,889 $25,541 $62,773 $80,294
Net Profit/Sales -943.64% -3.81% 8.41% 20.26% -14.62% -1.21% -1.02% 3.82% 9.52% 10.02% 19.93% 21.70%
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 $5,000 $60,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,000 $255,000 $315,000 $370,000
Subtotal Cash from Operations $5,000 $60,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,000 $255,000 $315,000 $370,000
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 $125,000 $25,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $130,000 $85,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,000 $255,000 $315,000 $370,000
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 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250
Bill Payments $598 $18,269 $28,707 $49,019 $74,008 $92,769 $121,007 $148,260 $167,937 $174,572 $195,968 $219,227
Subtotal Spent on Operations $34,848 $52,519 $62,957 $83,269 $108,258 $127,019 $155,257 $182,510 $202,187 $208,822 $230,218 $253,477
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 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $35,148 $52,819 $63,257 $83,569 $108,558 $127,319 $155,557 $182,810 $202,487 $209,122 $230,518 $253,777
Net Cash Flow $94,852 $32,181 $26,743 $51,431 $1,442 $25,181 $24,443 $27,190 $27,513 $45,878 $84,482 $116,223
Cash Balance $97,167 $129,349 $156,092 $207,523 $208,964 $234,145 $258,588 $285,777 $313,290 $359,168 $443,650 $559,873
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 $2,315 $97,167 $129,349 $156,092 $207,523 $208,964 $234,145 $258,588 $285,777 $313,290 $359,168 $443,650 $559,873
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $7,315 $102,167 $134,349 $161,092 $212,523 $213,964 $239,145 $263,588 $290,777 $318,290 $364,168 $448,650 $564,873
Long-term Assets
Long-term Assets $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Total Assets $157,315 $252,167 $284,349 $311,092 $362,523 $363,964 $389,145 $413,588 $440,777 $468,290 $514,168 $598,650 $714,873
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 $17,334 $27,101 $46,573 $70,948 $88,766 $116,088 $142,669 $162,141 $168,065 $188,702 $210,712 $246,941
Current Borrowing $5,000 $4,700 $4,400 $4,100 $3,800 $3,500 $3,200 $2,900 $2,600 $2,300 $2,000 $1,700 $1,400
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $5,000 $22,034 $31,501 $50,673 $74,748 $92,266 $119,288 $145,569 $164,741 $170,365 $190,702 $212,412 $248,341
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $5,000 $22,034 $31,501 $50,673 $74,748 $92,266 $119,288 $145,569 $164,741 $170,365 $190,702 $212,412 $248,341
Paid-in Capital $210,000 $335,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000
Retained Earnings ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685) ($57,685)
Earnings $0 ($47,182) ($49,467) ($41,896) ($14,540) ($30,617) ($32,458) ($34,297) ($26,279) ($4,390) $21,151 $83,923 $164,218
Total Capital $152,315 $230,133 $252,848 $260,419 $287,775 $271,698 $269,857 $268,018 $276,036 $297,925 $323,466 $386,238 $466,533
Total Liabilities and Capital $157,315 $252,167 $284,349 $311,092 $362,523 $363,964 $389,145 $413,588 $440,777 $468,290 $514,168 $598,650 $714,873
Net Worth $152,315 $230,133 $252,848 $260,419 $287,775 $271,698 $269,857 $268,018 $276,036 $297,925 $323,466 $386,238 $466,533