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Pottery Studio 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
Group Instruction 0% $1,200 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,000 $4,000 $3,000 $3,500 $3,500
Studio Time 0% $2,000 $3,000 $3,500 $3,500 $3,500 $3,500 $3,500 $4,000 $4,000 $3,000 $3,500 $3,500
Pottery 0% $800 $1,000 $1,200 $1,200 $1,200 $1,500 $1,500 $1,600 $1,800 $1,200 $1,500 $2,000
Gift Basket Pottery 0% $500 $700 $900 $1,000 $1,000 $800 $1,200 $1,500 $2,000 $300 $500 $600
Other 0% $300 $330 $363 $399 $439 $395 $435 $478 $850 $540 $594 $594
Total Sales $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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
Group Instruction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Studio Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Pottery $400 $500 $600 $600 $600 $750 $750 $800 $900 $600 $750 $1,000
Gift Basket Pottery $200 $300 $400 $430 $430 $300 $500 $700 $900 $100 $200 $250
Other $150 $165 $182 $200 $220 $198 $217 $239 $425 $270 $297 $297
Subtotal Direct Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
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% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Instructor 0% $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250
Aides 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750
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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
Direct Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
Gross Margin $4,050 $6,065 $7,782 $7,870 $7,890 $7,948 $8,167 $9,839 $10,425 $7,070 $8,347 $8,647
Gross Margin % 84.38% 86.27% 86.82% 86.49% 86.33% 86.43% 84.77% 84.98% 82.41% 87.94% 87.00% 84.82%
Expenses
Payroll $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750
Sales and Marketing and Other Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Depreciation $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Rent $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Payroll Taxes 15% $863 $863 $863 $863 $863 $863 $863 $863 $863 $863 $863 $863
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070
Profit Before Interest and Taxes ($4,020) ($2,005) ($288) ($200) ($180) ($122) $98 $1,770 $2,356 ($1,000) $278 $578
EBITDA ($3,663) ($1,648) $69 $157 $177 $235 $455 $2,127 $2,713 ($643) $635 $935
Interest Expense $83 $83 $82 $81 $79 $78 $76 $75 $74 $72 $71 $70
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($4,103) ($2,088) ($370) ($280) ($259) ($200) $22 $1,695 $2,282 ($1,072) $207 $508
Net Profit/Sales -85.48% -29.70% -4.13% -3.08% -2.83% -2.17% 0.22% 14.64% 18.04% -13.33% 2.15% 4.98%
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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
Subtotal Cash from Operations $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750
Bill Payments $68 $2,046 $2,046 $2,044 $2,043 $2,075 $3,064 $3,755 $4,100 $4,704 $2,073 $3,199
Subtotal Spent on Operations $5,818 $7,796 $7,796 $7,794 $7,793 $7,825 $8,814 $9,505 $9,850 $10,454 $7,823 $8,949
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 $0 $0 $166 $166 $166 $166 $166 $166 $166 $166 $166 $166
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 $5,818 $7,796 $7,962 $7,960 $7,959 $7,991 $8,980 $9,671 $10,016 $10,620 $7,989 $9,115
Net Cash Flow ($1,018) ($766) $1,001 $1,139 $1,180 $1,204 $655 $1,907 $2,634 ($2,580) $1,605 $1,079
Cash Balance $12,882 $12,116 $13,117 $14,256 $15,436 $16,641 $17,296 $19,203 $21,837 $19,258 $20,863 $21,942
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 $13,900 $12,882 $12,116 $13,117 $14,256 $15,436 $16,641 $17,296 $19,203 $21,837 $19,258 $20,863 $21,942
Inventory $7,000 $6,250 $5,285 $4,104 $2,874 $1,624 $1,377 $1,614 $1,913 $2,448 $1,478 $1,372 $1,702
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $20,900 $19,132 $17,401 $17,221 $17,130 $17,061 $18,017 $18,910 $21,116 $24,285 $20,735 $22,235 $23,644
Long-term Assets
Long-term Assets $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000
Accumulated Depreciation $0 $357 $714 $1,071 $1,428 $1,785 $2,142 $2,499 $2,856 $3,213 $3,570 $3,927 $4,284
Total Long-term Assets $44,000 $43,643 $43,286 $42,929 $42,572 $42,215 $41,858 $41,501 $41,144 $40,787 $40,430 $40,073 $39,716
Total Assets $64,900 $62,775 $60,687 $60,150 $59,702 $59,276 $59,875 $60,411 $62,260 $65,072 $61,165 $62,308 $63,360
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 $1,978 $1,978 $1,976 $1,975 $1,974 $2,939 $3,619 $3,940 $4,636 $1,967 $3,069 $3,779
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 $1,978 $1,978 $1,976 $1,975 $1,974 $2,939 $3,619 $3,940 $4,636 $1,967 $3,069 $3,779
Long-term Liabilities $10,000 $10,000 $10,000 $9,834 $9,668 $9,502 $9,336 $9,170 $9,004 $8,838 $8,672 $8,506 $8,340
Total Liabilities $10,000 $11,978 $11,978 $11,810 $11,643 $11,476 $12,275 $12,789 $12,944 $13,474 $10,639 $11,575 $12,119
Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Retained Earnings ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100)
Earnings $0 ($4,103) ($6,191) ($6,561) ($6,841) ($7,100) ($7,300) ($7,278) ($5,584) ($3,302) ($4,374) ($4,167) ($3,659)
Total Capital $54,900 $50,797 $48,709 $48,339 $48,059 $47,800 $47,600 $47,622 $49,316 $51,598 $50,526 $50,733 $51,241
Total Liabilities and Capital $64,900 $62,775 $60,687 $60,150 $59,702 $59,276 $59,875 $60,411 $62,260 $65,072 $61,165 $62,308 $63,360
Net Worth $54,900 $50,797 $48,709 $48,339 $48,059 $47,800 $47,600 $47,622 $49,316 $51,598 $50,526 $50,733 $51,241