The House of Pine

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Retail Furniture Manufacturer 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
Furniture 0% $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
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
Furniture $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
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
Manager 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
Assistant Manager 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
Office Manager/Bookkeeper 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
Checkers 0% $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
Production Staff 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Stockers 0% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Total People 9 9 9 9 9 9 9 9 9 9 9 9
Total Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
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% 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 $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Direct Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Gross Margin $30,000 $38,000 $39,000 $41,000 $45,000 $48,000 $55,000 $47,000 $49,000 $48,000 $44,000 $48,000
Gross Margin % 60.00% 63.33% 55.71% 54.67% 52.94% 53.33% 55.00% 55.29% 54.44% 56.47% 55.70% 50.53%
Expenses
Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Sales and Marketing and Other Expenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Depreciation $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502
Profit Before Interest and Taxes ($8,502) ($502) $498 $2,498 $6,498 $9,498 $16,498 $8,498 $10,498 $9,498 $5,498 $9,498
EBITDA ($7,550) $450 $1,450 $3,450 $7,450 $10,450 $17,450 $9,450 $11,450 $10,450 $6,450 $10,450
Interest Expense $1,069 $1,056 $1,042 $1,028 $1,014 $1,000 $986 $972 $958 $945 $931 $917
Taxes Incurred ($2,871) ($467) ($163) $441 $1,645 $2,549 $4,654 $2,258 $2,862 $2,566 $1,370 $2,574
Net Profit ($6,700) ($1,090) ($381) $1,029 $3,839 $5,949 $10,858 $5,268 $6,678 $5,987 $3,197 $6,007
Net Profit/Sales -13.40% -1.82% -0.54% 1.37% 4.52% 6.61% 10.86% 6.20% 7.42% 7.04% 4.05% 6.32%
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 $37,500 $45,000 $52,500 $56,250 $63,750 $67,500 $75,000 $63,750 $67,500 $63,750 $59,250 $71,250
Cash from Receivables $0 $417 $12,583 $15,083 $17,542 $18,833 $21,292 $22,583 $24,875 $21,292 $22,458 $21,200
Subtotal Cash from Operations $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
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 $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
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 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Bill Payments $358 $11,368 $30,171 $54,228 $51,669 $61,759 $60,506 $65,809 $46,566 $60,270 $48,627 $48,604
Subtotal Spent on Operations $25,358 $36,368 $55,171 $79,228 $76,669 $86,759 $85,506 $90,809 $71,566 $85,270 $73,627 $73,604
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 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
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 $27,024 $38,034 $56,837 $80,894 $78,335 $88,425 $87,172 $92,475 $73,232 $86,936 $75,293 $75,270
Net Cash Flow $10,476 $7,383 $8,246 ($9,561) $2,957 ($2,091) $9,120 ($6,142) $19,143 ($1,894) $6,415 $17,180
Cash Balance $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031
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 $5,800 $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031
Accounts Receivable $0 $12,500 $27,083 $32,000 $35,667 $39,375 $43,042 $46,750 $45,417 $43,042 $43,000 $40,292 $42,842
Inventory $50,000 $30,000 $24,200 $34,100 $37,400 $44,000 $46,200 $49,500 $41,800 $45,100 $40,700 $38,500 $51,700
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $55,800 $58,776 $74,942 $98,005 $95,410 $108,676 $112,451 $128,579 $113,404 $133,472 $127,136 $128,643 $161,573
Long-term Assets
Long-term Assets $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
Accumulated Depreciation $0 $952 $1,904 $2,856 $3,808 $4,760 $5,712 $6,664 $7,616 $8,568 $9,520 $10,472 $11,424
Total Long-term Assets $60,000 $59,048 $58,096 $57,144 $56,192 $55,240 $54,288 $53,336 $52,384 $51,432 $50,480 $49,528 $48,576
Total Assets $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
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 $10,390 $28,360 $52,518 $49,608 $59,749 $58,289 $64,273 $44,544 $58,648 $47,039 $46,062 $73,700
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 $10,390 $28,360 $52,518 $49,608 $59,749 $58,289 $64,273 $44,544 $58,648 $47,039 $46,062 $73,700
Long-term Liabilities $130,000 $128,334 $126,668 $125,002 $123,336 $121,670 $120,004 $118,338 $116,672 $115,006 $113,340 $111,674 $110,008
Total Liabilities $130,000 $138,724 $155,028 $177,520 $172,944 $181,419 $178,293 $182,611 $161,216 $173,654 $160,379 $157,736 $183,708
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 ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200)
Earnings $0 ($6,700) ($7,790) ($8,171) ($7,142) ($3,303) $2,646 $13,504 $18,772 $25,450 $31,437 $34,634 $40,641
Total Capital ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441
Total Liabilities and Capital $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
Net Worth ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441