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Solar Water Heater Distributor 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
Professional install 0% $0 $0 $6,589 $9,854 $11,454 $13,545 $13,989 $14,022 $14,585 $15,655 $15,878 $16,002
DIY 0% $0 $0 $0 $8,573 $9,965 $11,784 $12,170 $12,199 $12,689 $13,620 $13,814 $13,922
Total Sales $0 $0 $6,589 $18,427 $21,419 $25,329 $26,159 $26,221 $27,274 $29,275 $29,692 $29,924
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
Professional install $0 $0 $2,965 $4,434 $5,154 $6,095 $6,295 $6,310 $6,563 $7,045 $7,145 $7,201
DIY $0 $0 $0 $3,858 $4,484 $5,303 $5,477 $5,490 $5,710 $6,129 $6,216 $6,265
Subtotal Direct Cost of Sales $0 $0 $2,965 $8,292 $9,639 $11,398 $11,772 $11,800 $12,273 $13,174 $13,361 $13,466
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
Sara 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
Sales 0% $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Sales 0% $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Warehouse 0% $0 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Warehouse 0% $0 $0 $0 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Customer service 0% $0 $0 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Bookkeeper/ HR 0% $0 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Total People 1 4 5 7 7 7 7 7 7 7 7 7
Total Payroll $2,000 $6,700 $8,000 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300
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 $0 $0 $6,589 $18,427 $21,419 $25,329 $26,159 $26,221 $27,274 $29,275 $29,692 $29,924
Direct Cost of Sales $0 $0 $2,965 $8,292 $9,639 $11,398 $11,772 $11,800 $12,273 $13,174 $13,361 $13,466
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $2,965 $8,292 $9,639 $11,398 $11,772 $11,800 $12,273 $13,174 $13,361 $13,466
Gross Margin $0 $0 $3,624 $10,135 $11,780 $13,931 $14,388 $14,422 $15,001 $16,101 $16,331 $16,458
Gross Margin % 0.00% 0.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00%
Expenses
Payroll $2,000 $6,700 $8,000 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300
Sales and Marketing and Other Expenses $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Depreciation $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033 $1,033
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
Utilities $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Insurance $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650
Payroll Taxes 15% $300 $1,005 $1,200 $1,695 $1,695 $1,695 $1,695 $1,695 $1,695 $1,695 $1,695 $1,695
Other $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Total Operating Expenses $7,383 $12,788 $14,283 $18,078 $18,078 $18,078 $18,078 $18,078 $18,078 $18,078 $18,078 $18,078
Profit Before Interest and Taxes ($7,383) ($12,788) ($10,659) ($7,943) ($6,298) ($4,147) ($3,690) ($3,656) ($3,077) ($1,977) ($1,747) ($1,620)
EBITDA ($6,350) ($11,755) ($9,626) ($6,910) ($5,265) ($3,114) ($2,657) ($2,623) ($2,044) ($944) ($714) ($587)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($7,383) ($12,788) ($10,659) ($7,943) ($6,298) ($4,147) ($3,690) ($3,656) ($3,077) ($1,977) ($1,747) ($1,620)
Net Profit/Sales 0.00% 0.00% -161.77% -43.11% -29.40% -16.37% -14.11% -13.94% -11.28% -6.75% -5.89% -5.41%
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 $0 $0 $1,647 $4,607 $5,355 $6,332 $6,540 $6,555 $6,818 $7,319 $7,423 $7,481
Cash from Receivables $0 $0 $0 $165 $5,238 $13,895 $16,162 $19,018 $19,621 $19,692 $20,505 $21,967
Subtotal Cash from Operations $0 $0 $1,647 $4,771 $10,592 $20,227 $22,702 $25,573 $26,440 $27,011 $27,928 $29,447
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 $0 $0 $1,647 $4,771 $10,592 $20,227 $22,702 $25,573 $26,440 $27,011 $27,928 $29,447
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 $2,000 $6,700 $8,000 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300 $11,300
Bill Payments $145 $4,374 $5,160 $8,409 $14,082 $15,442 $17,156 $17,518 $17,560 $18,048 $18,925 $19,110
Subtotal Spent on Operations $2,145 $11,074 $13,160 $19,709 $25,382 $26,742 $28,456 $28,818 $28,860 $29,348 $30,225 $30,410
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 $2,145 $11,074 $13,160 $19,709 $25,382 $26,742 $28,456 $28,818 $28,860 $29,348 $30,225 $30,410
Net Cash Flow ($2,145) ($11,074) ($11,513) ($14,938) ($14,790) ($6,515) ($5,754) ($3,245) ($2,421) ($2,337) ($2,296) ($962)
Cash Balance $91,855 $80,782 $69,268 $54,331 $39,541 $33,026 $27,273 $24,028 $21,607 $19,270 $16,973 $16,011
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 $94,000 $91,855 $80,782 $69,268 $54,331 $39,541 $33,026 $27,273 $24,028 $21,607 $19,270 $16,973 $16,011
Accounts Receivable $0 $0 $0 $4,942 $18,597 $29,424 $34,526 $37,983 $38,631 $39,466 $41,730 $43,493 $43,969
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $94,000 $91,855 $80,782 $74,210 $72,928 $68,965 $67,552 $65,256 $62,659 $61,073 $60,999 $60,466 $59,980
Long-term Assets
Long-term Assets $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000
Accumulated Depreciation $0 $1,033 $2,066 $3,099 $4,132 $5,165 $6,198 $7,231 $8,264 $9,297 $10,330 $11,363 $12,396
Total Long-term Assets $62,000 $60,967 $59,934 $58,901 $57,868 $56,835 $55,802 $54,769 $53,736 $52,703 $51,670 $50,637 $49,604
Total Assets $156,000 $152,822 $140,716 $133,111 $130,796 $125,800 $123,354 $120,025 $116,395 $113,776 $112,669 $111,103 $109,584
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 $4,205 $4,887 $7,941 $13,569 $14,871 $16,572 $16,933 $16,960 $17,418 $18,288 $18,469 $18,570
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 $4,205 $4,887 $7,941 $13,569 $14,871 $16,572 $16,933 $16,960 $17,418 $18,288 $18,469 $18,570
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $4,205 $4,887 $7,941 $13,569 $14,871 $16,572 $16,933 $16,960 $17,418 $18,288 $18,469 $18,570
Paid-in Capital $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000 $165,000
Retained Earnings ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000)
Earnings $0 ($7,383) ($20,171) ($30,830) ($38,773) ($45,071) ($49,218) ($52,908) ($56,564) ($59,642) ($61,619) ($63,366) ($64,986)
Total Capital $156,000 $148,617 $135,829 $125,170 $117,227 $110,929 $106,782 $103,092 $99,436 $96,358 $94,381 $92,634 $91,014
Total Liabilities and Capital $156,000 $152,822 $140,716 $133,111 $130,796 $125,800 $123,354 $120,025 $116,395 $113,776 $112,669 $111,103 $109,584
Net Worth $156,000 $148,617 $135,829 $125,170 $117,227 $110,929 $106,782 $103,092 $99,436 $96,358 $94,381 $92,634 $91,014