Golden Valley Real Estate

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Start-Up Real Estate 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
Retired couples relocating to Tucson 0% $5,000 $10,000 $5,000 $12,000 $7,000 $12,000 $5,000 $15,000 $12,000 $10,000 $7,800 $9,000
Others 0% $0 $0 $0 $0 $0 $0 $3,000 $0 $3,000 $0 $2,000 $0
Total Sales $5,000 $10,000 $5,000 $12,000 $7,000 $12,000 $8,000 $15,000 $15,000 $10,000 $9,800 $9,000
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
Row 1 $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
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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
Mrs. Susan Egan 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
Part-time receptionist 0% $0 $0 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 1 1 1 1 1 2 2 2 2 2 2 2
Total Payroll $3,000 $3,000 $3,000 $3,000 $3,000 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
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 $5,000 $10,000 $5,000 $12,000 $7,000 $12,000 $8,000 $15,000 $15,000 $10,000 $9,800 $9,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $5,000 $10,000 $5,000 $12,000 $7,000 $12,000 $8,000 $15,000 $15,000 $10,000 $9,800 $9,000
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $3,000 $3,000 $3,000 $3,000 $3,000 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Sales and Marketing and Other Expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Utilities $100 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $0 $0 $0 $0 $0 $1,100 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $450 $450 $450 $450 $450 $675 $675 $675 $675 $675 $675 $675
Travel 15% $0 $0 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0
Other $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Total Operating Expenses $6,750 $6,950 $6,950 $7,950 $6,950 $9,775 $8,675 $9,675 $8,675 $8,675 $8,675 $8,675
Profit Before Interest and Taxes ($1,750) $3,050 ($1,950) $4,050 $50 $2,225 ($675) $5,325 $6,325 $1,325 $1,125 $325
EBITDA ($1,750) $3,050 ($1,950) $4,050 $50 $2,225 ($675) $5,325 $6,325 $1,325 $1,125 $325
Interest Expense $498 $495 $493 $490 $488 $485 $483 $480 $478 $475 $473 $470
Taxes Incurred ($674) $767 ($733) $1,068 ($131) $522 ($347) $1,454 $1,754 $255 $196 ($44)
Net Profit ($1,573) $1,789 ($1,710) $2,492 ($306) $1,218 ($810) $3,392 $4,093 $595 $457 ($102)
Net Profit/Sales -31.47% 17.89% -34.20% 20.77% -4.38% 10.15% -10.13% 22.61% 27.29% 5.95% 4.66% -1.13%
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 $4,250 $8,500 $4,250 $10,200 $5,950 $10,200 $6,800 $12,750 $12,750 $8,500 $8,330 $7,650
Cash from Receivables $0 $25 $775 $1,475 $785 $1,775 $1,075 $1,780 $1,235 $2,250 $2,225 $1,499
Subtotal Cash from Operations $4,250 $8,525 $5,025 $11,675 $6,735 $11,975 $7,875 $14,530 $13,985 $10,750 $10,555 $9,149
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 $1,500 $1,500 $0 $0 $0 $0
Subtotal Cash Received $4,250 $8,525 $5,025 $11,675 $6,735 $11,975 $9,375 $16,030 $13,985 $10,750 $10,555 $9,149
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 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Bill Payments $3,119 $3,628 $5,161 $3,803 $6,435 $4,372 $6,216 $4,404 $7,085 $6,357 $4,903 $4,835
Subtotal Spent on Operations $6,119 $6,628 $8,161 $6,803 $9,435 $8,872 $10,716 $8,904 $11,585 $10,857 $9,403 $9,335
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 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Purchase Other Current Assets $0 $0 $0 $2,000 $0 $1,000 $0 $2,000 $0 $0 $0 $0
Purchase Long-term Assets $0 $1,500 $0 $2,000 $0 $2,000 $0 $2,000 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000
Subtotal Cash Spent $6,419 $8,428 $8,461 $11,103 $9,735 $12,172 $11,016 $13,204 $11,885 $11,157 $9,703 $10,635
Net Cash Flow ($2,169) $97 ($3,436) $572 ($3,000) ($197) ($1,641) $2,826 $2,100 ($407) $852 ($1,486)
Cash Balance $42,331 $42,428 $38,992 $39,564 $36,564 $36,367 $34,726 $37,552 $39,652 $39,245 $40,097 $38,611
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 $44,500 $42,331 $42,428 $38,992 $39,564 $36,564 $36,367 $34,726 $37,552 $39,652 $39,245 $40,097 $38,611
Accounts Receivable $0 $750 $2,225 $2,200 $2,525 $2,790 $2,815 $2,940 $3,410 $4,425 $3,675 $2,920 $2,771
Other Current Assets $3,500 $3,500 $3,500 $3,500 $5,500 $5,500 $6,500 $6,500 $8,500 $8,500 $8,500 $8,500 $8,500
Total Current Assets $48,000 $46,581 $48,153 $44,692 $47,589 $44,854 $45,682 $44,166 $49,462 $52,577 $51,420 $51,517 $49,882
Long-term Assets
Long-term Assets $5,000 $5,000 $6,500 $6,500 $8,500 $8,500 $10,500 $10,500 $12,500 $12,500 $12,500 $12,500 $12,500
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $5,000 $5,000 $6,500 $6,500 $8,500 $8,500 $10,500 $10,500 $12,500 $12,500 $12,500 $12,500 $12,500
Total Assets $53,000 $51,581 $54,653 $51,192 $56,089 $53,354 $56,182 $54,666 $61,962 $65,077 $63,920 $64,017 $62,382
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 $3,000 $3,454 $5,038 $3,586 $6,291 $4,163 $6,073 $4,167 $6,872 $6,193 $4,741 $4,682 $4,448
Current Borrowing $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $18,000 $18,454 $20,038 $18,586 $21,291 $19,163 $21,073 $19,167 $21,872 $21,193 $19,741 $19,682 $19,448
Long-term Liabilities $45,000 $44,700 $44,400 $44,100 $43,800 $43,500 $43,200 $42,900 $42,600 $42,300 $42,000 $41,700 $41,400
Total Liabilities $63,000 $63,154 $64,438 $62,686 $65,091 $62,663 $64,273 $62,067 $64,472 $63,493 $61,742 $61,382 $60,848
Paid-in Capital $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $21,500 $23,000 $23,000 $23,000 $23,000 $23,000
Retained Earnings ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($31,000)
Earnings $0 ($1,573) $215 ($1,495) $998 $691 $1,909 $1,099 $4,491 $8,584 $9,179 $9,636 $9,534
Total Capital ($10,000) ($11,573) ($9,785) ($11,495) ($9,003) ($9,309) ($8,091) ($7,401) ($2,510) $1,584 $2,179 $2,636 $1,534
Total Liabilities and Capital $53,000 $51,581 $54,653 $51,192 $56,089 $53,354 $56,182 $54,666 $61,962 $65,077 $63,920 $64,017 $62,382
Net Worth ($10,000) ($11,573) ($9,785) ($11,495) ($9,003) ($9,309) ($8,091) ($7,401) ($2,510) $1,584 $2,179 $2,635 $1,534