The financial plan contains these essential factors:
The financial plan depends on Important Assumptions, most of which are shown in the following table. The key underlying assumptions are:
Our Break-even Analysis is shown below.
The most important assumption in the Projected Profit and Loss statement is a steady growth into 2006. The increase in gross margin is based on an agressive marketing approach, and it is critical.
Month-by-month assumptions for profit and loss are included in the appendix.
The following table and chart illustrate McKenzie Roller Rink's cash flow situation. Cash Flow will be negative for year one as we start up the business and slowly create awareness about our facility. We have planned for this with enough extra cash to keep the cash balance positive.
The balance sheet is quite solid. We do not project any real trouble meeting our debt obligations - as long as we can achieve our specific objectives.
Business Ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7999, Roller Rinks are shown for comparison.
The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model: