Growth will occur according to the number of clients and cash flow.
With approximately half of our services provided on credit, collection will be essential. With this still being a service that is not essential to everyday living, we will show that payments are necessary immediately. With a concrete system for cash flow, we will be able to keep debt to a minimum, while still providing a high level of sales.
The following assumptions are made responding to growth, and are based on economic trends from the preceding two years.
The table below outlines some business assumptions that are the basis for Buy The Time's growth, including tax rate and payment days.
Our break-even analysis is shown in further detail in the following chart and table.
This is a conservative figure since contacts have been made, and have already generated many orders for our services. Buy the Time's goal is to generate twice as much as the break-even point for a monthly standard.
Buy the Time's projected profit and loss is indicated in the following table. Gross margin should remain between 50-70% the first year, with highest profits due near the end of the year. This should prove to be accurate, since that is a time when many clients increase their spending.
The following chart and table outline the cash flow for fiscal years 2002, 2003, and 2004. For a monthly analysis, please see the attached appendix.
The Balance Sheet table for fiscal years 2002, 2003, and 2004 follows. For a monthly analysis, please see the attached appendix.
The following table provides significant ratios for the personal services industry. The final column, Industry Profile, shows ratios for this industry as it is determined by the Standard Industrial Classification (SIC) Index 7299, "miscellaneous personal services."