Tennis Master Pro Shops, Inc.

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Retail Tennis Shop 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
Unit Sales
Master Franchises 0% 0 0 1 1 2 1 2 1 1 1 0 0
Franchise Stores 0% 2 2 3 3 5 6 6 8 8 8 6 3
Royalties 0% 0 2,500 3,750 7,500 12,500 20,000 22,500 30,000 37,500 62,500 120,000 200,000
Advertising Contribution 0% 0 1,875 2,812 5,625 9,375 15,000 16,875 22,500 28,125 46,875 90,000 150,000
Wholesale Sales 0% 20,000 20,780 31,170 32,340 53,900 66,240 67,020 89,360 91,700 99,500 97,440 92,400
Company Store Sales 0% 10,000 40,000 60,000 80,000 150,000 200,000 260,000 300,000 320,000 330,000 340,000 360,000
Total Unit Sales 30,002 65,157 97,736 125,469 225,782 301,247 366,403 441,869 477,334 538,884 647,446 802,403
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Master Franchises $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $125,000.00
Franchise Stores $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00
Royalties $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Advertising Contribution $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Wholesale Sales $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Company Store Sales $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Sales
Master Franchises $0 $0 $125,000 $125,000 $250,000 $125,000 $250,000 $125,000 $125,000 $125,000 $0 $0
Franchise Stores $50,000 $50,000 $75,000 $75,000 $125,000 $150,000 $150,000 $200,000 $200,000 $200,000 $150,000 $75,000
Royalties $0 $2,500 $3,750 $7,500 $12,500 $20,000 $22,500 $30,000 $37,500 $62,500 $120,000 $200,000
Advertising Contribution $0 $1,875 $2,812 $5,625 $9,375 $15,000 $16,875 $22,500 $28,125 $46,875 $90,000 $150,000
Wholesale Sales $20,000 $20,780 $31,170 $32,340 $53,900 $66,240 $67,020 $89,360 $91,700 $99,500 $97,440 $92,400
Company Store Sales $10,000 $40,000 $60,000 $80,000 $150,000 $200,000 $260,000 $300,000 $320,000 $330,000 $340,000 $360,000
Total Sales $80,000 $115,155 $297,732 $325,465 $600,775 $576,240 $766,395 $766,860 $802,325 $863,875 $797,440 $877,400
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Master Franchises 0.00% $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00 $12,500.00
Franchise Stores 0.00% $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Royalties 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Advertising Contribution 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Wholesale Sales 0.00% $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
Company Store Sales 0.00% $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30
Direct Cost of Sales
Master Franchises $0 $0 $12,500 $12,500 $25,000 $12,500 $25,000 $12,500 $12,500 $12,500 $0 $0
Franchise Stores $10,000 $10,000 $15,000 $15,000 $25,000 $30,000 $30,000 $40,000 $40,000 $40,000 $30,000 $15,000
Royalties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising Contribution $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wholesale Sales $14,000 $14,546 $21,819 $22,638 $37,730 $46,368 $46,914 $62,552 $64,190 $69,650 $68,208 $64,680
Company Store Sales $3,000 $12,000 $18,000 $24,000 $45,000 $60,000 $78,000 $90,000 $96,000 $99,000 $102,000 $108,000
Subtotal Direct Cost of Sales $27,000 $36,546 $67,319 $74,138 $132,730 $148,868 $179,914 $205,052 $212,690 $221,150 $200,208 $187,680
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
Production Personnel
Wholesale Distribution Mgr. $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Distribution Asst. $0 $0 $0 $0 $0 $0 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Customer Service $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Subtotal $0 $0 $4,000 $4,000 $4,000 $4,000 $5,250 $5,250 $5,250 $5,250 $5,250 $5,250
Sales and Marketing Personnel
Franchise Sales Dir. $0 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Franchise Salesperson $0 $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Director of Marketing $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Subtotal $0 $4,000 $7,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
General and Administrative Personnel
CEO $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
VP Corp. Dev. $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
CFO $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Controller/Systems Admin. $0 $0 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Store Operations Mgr. $0 $0 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Training Mgr. $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Administrative Asst. $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Subtotal $11,000 $11,000 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300
Other Personnel
Salaries, Company Stores $16,200 $16,200 $16,200 $32,400 $32,400 $48,600 $48,600 $48,600 $64,800 $64,800 $64,800 $64,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $16,200 $16,200 $16,200 $32,400 $32,400 $48,600 $48,600 $48,600 $64,800 $64,800 $64,800 $64,800
Total People 3 4 11 12 12 12 13 13 13 13 13 13
Total Payroll $27,200 $31,200 $49,500 $68,200 $68,200 $84,400 $85,650 $85,650 $101,850 $101,850 $101,850 $101,850
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 $80,000 $115,155 $297,732 $325,465 $600,775 $576,240 $766,395 $766,860 $802,325 $863,875 $797,440 $877,400
Direct Cost of Sales $27,000 $36,546 $67,319 $74,138 $132,730 $148,868 $179,914 $205,052 $212,690 $221,150 $200,208 $187,680
Production Payroll $0 $0 $4,000 $4,000 $4,000 $4,000 $5,250 $5,250 $5,250 $5,250 $5,250 $5,250
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $27,000 $36,546 $71,319 $78,138 $136,730 $152,868 $185,164 $210,302 $217,940 $226,400 $205,458 $192,930
Gross Margin $53,000 $78,609 $226,413 $247,327 $464,045 $423,372 $581,231 $556,558 $584,385 $637,475 $591,982 $684,470
Gross Margin % 66.25% 68.26% 76.05% 75.99% 77.24% 73.47% 75.84% 72.58% 72.84% 73.79% 74.24% 78.01%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $0 $4,000 $7,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Advertising/Promotion $8,000 $11,516 $29,773 $32,547 $60,078 $57,624 $76,640 $76,686 $80,233 $86,388 $79,744 $87,740
Travel/Entertainment $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Marketing Materials $0 $15,000 $10,000 $5,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Other Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales and Marketing Expenses $10,000 $32,516 $48,773 $50,047 $75,078 $72,624 $92,140 $92,186 $95,733 $101,888 $95,244 $103,240
Sales and Marketing % 12.50% 28.24% 16.38% 15.38% 12.50% 12.60% 12.02% 12.02% 11.93% 11.79% 11.94% 11.77%
General and Administrative Expenses
General and Administrative Payroll $11,000 $11,000 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300 $22,300
Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $2,499 $3,332 $3,332 $4,165 $4,165 $4,165 $4,998 $4,998 $4,998 $4,998
Leased Equipment $2,830 $2,830 $2,830 $5,660 $5,660 $8,490 $8,490 $8,490 $10,520 $10,520 $10,520 $10,520
Utilities $1,000 $1,000 $2,500 $3,500 $3,500 $4,500 $4,500 $4,500 $5,500 $5,500 $5,500 $5,500
Telephone/Fax $1,500 $2,000 $2,500 $2,500 $2,500 $3,000 $3,000 $3,000 $3,300 $3,300 $3,300 $3,300
Insurance $1,500 $1,500 $3,000 $3,000 $3,000 $3,600 $3,600 $3,600 $4,000 $4,000 $4,000 $4,000
Rent $4,000 $4,000 $9,000 $13,000 $13,000 $17,000 $17,000 $17,000 $21,000 $21,000 $21,000 $21,000
Payroll Taxes 22% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other General and Administrative Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $21,830 $22,330 $44,629 $53,292 $53,292 $63,055 $63,055 $63,055 $71,618 $71,618 $71,618 $71,618
General and Administrative % 27.29% 19.39% 14.99% 16.37% 8.87% 10.94% 8.23% 8.22% 8.93% 8.29% 8.98% 8.16%
Other Expenses:
Other Payroll $16,200 $16,200 $16,200 $32,400 $32,400 $48,600 $48,600 $48,600 $64,800 $64,800 $64,800 $64,800
Consultants $0 $0 $25,000 $0 $25,000 $0 $25,000 $0 $0 $0 $0 $0
Legal $0 $0 $20,000 $0 $20,000 $0 $15,000 $0 $0 $0 $0 $0
Total Other Expenses $16,200 $16,200 $61,200 $32,400 $77,400 $48,600 $88,600 $48,600 $64,800 $64,800 $64,800 $64,800
Other % 20.25% 14.07% 20.56% 9.95% 12.88% 8.43% 11.56% 6.34% 8.08% 7.50% 8.13% 7.39%
Total Operating Expenses $48,030 $71,046 $154,602 $135,739 $205,770 $184,279 $243,795 $203,841 $232,151 $238,306 $231,662 $239,658
Profit Before Interest and Taxes $4,970 $7,563 $71,811 $111,588 $258,275 $239,093 $337,436 $352,717 $352,234 $399,169 $360,320 $444,812
EBITDA $4,970 $7,563 $74,310 $114,920 $261,607 $243,258 $341,601 $356,882 $357,232 $404,167 $365,318 $449,810
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,640 $2,496 $23,698 $36,824 $85,231 $78,901 $111,354 $116,397 $116,237 $131,726 $118,906 $146,788
Net Profit $3,330 $5,067 $48,113 $74,764 $173,044 $160,192 $226,082 $236,320 $235,997 $267,443 $241,414 $298,024
Net Profit/Sales 4.16% 4.40% 16.16% 22.97% 28.80% 27.80% 29.50% 30.82% 29.41% 30.96% 30.27% 33.97%
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 $80,000 $115,155 $297,732 $325,465 $600,775 $576,240 $766,395 $766,860 $802,325 $863,875 $797,440 $877,400
Subtotal Cash from Operations $80,000 $115,155 $297,732 $325,465 $600,775 $576,240 $766,395 $766,860 $802,325 $863,875 $797,440 $877,400
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 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $80,000 $115,155 $397,732 $325,465 $600,775 $576,240 $766,395 $766,860 $802,325 $863,875 $797,440 $877,400
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 $27,200 $31,200 $49,500 $68,200 $68,200 $84,400 $85,650 $85,650 $101,850 $101,850 $101,850 $101,850
Bill Payments $1,439 $44,711 $94,124 $229,977 $194,469 $418,136 $349,882 $484,106 $468,360 $468,916 $496,465 $427,228
Subtotal Spent on Operations $28,639 $75,911 $143,624 $298,177 $262,669 $502,536 $435,532 $569,756 $570,210 $570,766 $598,315 $529,078
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 $28,639 $75,911 $143,624 $298,177 $262,669 $502,536 $435,532 $569,756 $570,210 $570,766 $598,315 $529,078
Net Cash Flow $51,361 $39,244 $254,108 $27,288 $338,106 $73,704 $330,863 $197,104 $232,115 $293,109 $199,125 $348,322
Cash Balance $141,361 $180,605 $434,713 $462,001 $800,107 $873,811 $1,204,674 $1,401,778 $1,633,893 $1,927,003 $2,126,128 $2,474,450
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 $90,000 $141,361 $180,605 $434,713 $462,001 $800,107 $873,811 $1,204,674 $1,401,778 $1,633,893 $1,927,003 $2,126,128 $2,474,450
Inventory $36,000 $29,700 $40,201 $74,051 $81,552 $146,003 $163,755 $197,905 $225,557 $233,959 $243,265 $220,229 $206,448
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $126,000 $171,061 $220,806 $508,764 $543,553 $946,110 $1,037,566 $1,402,580 $1,627,335 $1,867,852 $2,170,268 $2,346,357 $2,680,898
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $2,499 $5,831 $9,163 $13,328 $17,493 $21,658 $26,656 $31,654 $36,652 $41,650
Total Long-term Assets $0 $0 $0 ($2,499) ($5,831) ($9,163) ($13,328) ($17,493) ($21,658) ($26,656) ($31,654) ($36,652) ($41,650)
Total Assets $126,000 $171,061 $220,806 $506,265 $537,722 $936,947 $1,024,238 $1,385,087 $1,605,677 $1,841,196 $2,138,614 $2,309,705 $2,639,248
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 $41,731 $86,409 $223,754 $180,448 $406,628 $333,727 $468,494 $452,764 $452,286 $482,260 $411,937 $443,456
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 $41,731 $86,409 $223,754 $180,448 $406,628 $333,727 $468,494 $452,764 $452,286 $482,260 $411,937 $443,456
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $41,731 $86,409 $223,754 $180,448 $406,628 $333,727 $468,494 $452,764 $452,286 $482,260 $411,937 $443,456
Paid-in Capital $500,000 $500,000 $500,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000
Retained Earnings ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000) ($374,000)
Earnings $0 $3,330 $8,397 $56,510 $131,274 $304,319 $464,511 $690,593 $926,914 $1,162,910 $1,430,354 $1,671,768 $1,969,792
Total Capital $126,000 $129,330 $134,397 $282,510 $357,274 $530,319 $690,511 $916,593 $1,152,914 $1,388,910 $1,656,354 $1,897,768 $2,195,792
Total Liabilities and Capital $126,000 $171,061 $220,806 $506,265 $537,722 $936,947 $1,024,238 $1,385,087 $1,605,677 $1,841,196 $2,138,614 $2,309,705 $2,639,248
Net Worth $126,000 $129,330 $134,397 $282,510 $357,274 $530,319 $690,511 $916,593 $1,152,914 $1,388,910 $1,656,354 $1,897,768 $2,195,792
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 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00% 33.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0