RJ Wagner and Assoc. Realty

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Real Estate Brokerage 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
Agent Sales - 25% To Company 0% $0 $2,375 $8,125 $11,250 $4,500 $4,500 $4,500 $3,375 $3,375 $12,375 $14,625 $14,625
Broker Sales - 100% To Company 0% $3,389 $3,731 $6,750 $0 $3,375 $3,375 $3,375 $0 $0 $4,500 $7,875 $7,875
Photo Service - 100% To Company 0% $0 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480
Referrals - 25% Agent/25% Company 0% $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187
Total Sales $3,576 $6,773 $15,542 $11,917 $8,542 $8,542 $8,542 $4,042 $4,042 $17,542 $23,167 $23,167
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
Agent Sales - 25% To Company $0 $238 $813 $1,125 $450 $450 $450 $338 $338 $1,238 $1,463 $1,463
Broker Sales - 100% To Company $339 $373 $675 $1,350 $675 $1,350 $675 $1,350 $1,350 $1,350 $675 $675
Photo Service - 100% To Company $0 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40
Referrals - 25% Agent/25% Company $0 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Subtotal Direct Cost of Sales $339 $681 $1,558 $2,545 $1,195 $1,870 $1,195 $1,758 $1,758 $2,658 $2,208 $2,208
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
Wagner 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
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
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% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
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 $3,576 $6,773 $15,542 $11,917 $8,542 $8,542 $8,542 $4,042 $4,042 $17,542 $23,167 $23,167
Direct Cost of Sales $339 $681 $1,558 $2,545 $1,195 $1,870 $1,195 $1,758 $1,758 $2,658 $2,208 $2,208
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $339 $681 $1,558 $2,545 $1,195 $1,870 $1,195 $1,758 $1,758 $2,658 $2,208 $2,208
Gross Margin $3,237 $6,093 $13,985 $9,372 $7,347 $6,672 $7,347 $2,285 $2,285 $14,885 $20,960 $20,960
Gross Margin % 90.52% 89.95% 89.98% 78.64% 86.01% 78.11% 86.01% 56.52% 56.52% 84.85% 90.47% 90.47%
Expenses
Payroll $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Marketing/Promotion $200 $200 $600 $700 $1,000 $700 $700 $900 $700 $700 $1,000 $700
Depreciation $150 $150 $150 $150 $125 $90 $75 $75 $75 $75 $75 $80
Utilities $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Rent $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Office Supplies $100 $100 $200 $200 $300 $300 $300 $300 $300 $300 $300 $300
Business Software $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000
Leased Equipment $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,300 $5,300 $5,800 $5,900 $6,275 $5,940 $5,925 $6,125 $5,925 $5,925 $6,225 $6,930
Profit Before Interest and Taxes ($2,063) $793 $8,185 $3,472 $1,072 $732 $1,422 ($3,841) ($3,641) $8,960 $14,735 $14,030
EBITDA ($1,913) $943 $8,335 $3,622 $1,197 $822 $1,497 ($3,766) ($3,566) $9,035 $14,810 $14,110
Interest Expense $4 $8 $13 $17 $21 $25 $29 $33 $38 $42 $46 $50
Taxes Incurred ($620) $196 $2,043 $864 $263 $177 $348 ($968) ($920) $2,229 $3,672 $3,495
Net Profit ($1,447) $588 $6,129 $2,592 $788 $530 $1,045 ($2,905) ($2,759) $6,688 $11,017 $10,485
Net Profit/Sales -40.46% 8.68% 39.44% 21.75% 9.23% 6.21% 12.23% -71.88% -68.25% 38.13% 47.55% 45.26%
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 $3,218 $6,096 $13,988 $10,725 $7,688 $7,688 $7,688 $3,638 $3,638 $15,788 $20,850 $20,850
Cash from Receivables $0 $12 $368 $707 $1,542 $1,180 $854 $854 $839 $404 $449 $1,773
Subtotal Cash from Operations $3,218 $6,108 $14,356 $11,432 $9,230 $8,868 $8,542 $4,492 $4,477 $16,192 $21,300 $22,623
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 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
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 $3,718 $6,608 $14,856 $11,932 $9,730 $9,368 $9,042 $4,992 $4,977 $16,692 $21,800 $23,123
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 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Bill Payments $10,062 $1,912 $3,142 $6,260 $6,124 $4,638 $4,905 $4,404 $3,867 $3,861 $7,822 $9,093
Subtotal Spent on Operations $13,062 $4,912 $6,142 $9,260 $9,124 $7,638 $7,905 $7,404 $6,867 $6,861 $10,822 $12,093
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 $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 $13,062 $4,912 $6,142 $9,260 $9,124 $7,638 $7,905 $7,404 $6,867 $6,861 $10,822 $12,093
Net Cash Flow ($9,344) $1,696 $8,714 $2,672 $606 $1,730 $1,137 ($2,412) ($1,890) $9,831 $10,978 $11,030
Cash Balance $412 $2,108 $10,821 $13,493 $14,099 $15,829 $16,966 $14,554 $12,663 $22,495 $33,472 $44,503
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 $9,756 $412 $2,108 $10,821 $13,493 $14,099 $15,829 $16,966 $14,554 $12,663 $22,495 $33,472 $44,503
Accounts Receivable $0 $358 $1,023 $2,209 $2,694 $2,006 $1,680 $1,680 $1,230 $795 $2,145 $4,012 $4,556
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $29,756 $20,770 $23,131 $33,030 $36,187 $36,105 $37,509 $38,646 $35,784 $33,458 $44,640 $57,485 $69,059
Long-term Assets
Long-term Assets $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Accumulated Depreciation $0 $150 $300 $450 $600 $725 $815 $890 $965 $1,040 $1,115 $1,190 $1,270
Total Long-term Assets $7,000 $6,850 $6,700 $6,550 $6,400 $6,275 $6,185 $6,110 $6,035 $5,960 $5,885 $5,810 $5,730
Total Assets $36,756 $27,620 $29,831 $39,580 $42,587 $42,380 $43,694 $44,756 $41,819 $39,418 $50,525 $63,295 $74,789
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 $10,000 $1,811 $2,934 $6,054 $5,970 $4,474 $4,758 $4,275 $3,743 $3,601 $7,519 $8,773 $9,282
Current Borrowing $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $10,000 $2,311 $3,934 $7,554 $7,970 $6,974 $7,758 $7,775 $7,743 $8,101 $12,519 $14,273 $15,282
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $10,000 $2,311 $3,934 $7,554 $7,970 $6,974 $7,758 $7,775 $7,743 $8,101 $12,519 $14,273 $15,282
Paid-in Capital $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
Retained Earnings ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244) ($23,244)
Earnings $0 ($1,447) ($859) $5,270 $7,862 $8,650 $9,180 $10,225 $7,319 $4,561 $11,249 $22,266 $32,750
Total Capital $26,756 $25,309 $25,897 $32,026 $34,618 $35,406 $35,936 $36,981 $34,075 $31,317 $38,005 $49,022 $59,506
Total Liabilities and Capital $36,756 $27,620 $29,831 $39,580 $42,587 $42,380 $43,694 $44,756 $41,819 $39,418 $50,525 $63,295 $74,789
Net Worth $26,756 $25,309 $25,897 $32,026 $34,618 $35,406 $35,936 $36,981 $34,075 $31,317 $38,005 $49,022 $59,506