Integrity Auto Sales

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Used Auto Sales 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
Low-end vehicles 0% 20 25 30 30 25 20 18 20 25 25 30 30
Average vehicles 0% 12 15 15 15 12 10 10 11 12 12 15 15
High-end vehicles 0% 6 7 7 7 5 4 4 5 7 7 10 10
Loan sales 0% 10 12 15 15 12 10 10 12 15 15 20 20
Warranty sales 0% 10 12 12 12 12 10 10 10 12 12 12 12
Other/consignments 0% 4 5 5 5 4 2 2 4 4 4 5 5
Total Unit Sales 62 76 84 84 70 56 54 62 75 75 92 92
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
Low-end vehicles $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
Average vehicles $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $4,900.00 $4,900.00 $4,900.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
High-end vehicles $10,000.00 $10,000.00 $10,000.00 $10,000.00 $9,900.00 $9,800.00 $9,800.00 $9,900.00 $9,900.00 $10,000.00 $10,000.00 $10,000.00
Loan sales $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00
Warranty sales $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00
Other/consignments $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
Sales
Low-end vehicles $40,000 $50,000 $60,000 $60,000 $50,000 $40,000 $36,000 $40,000 $50,000 $50,000 $60,000 $60,000
Average vehicles $60,000 $75,000 $75,000 $75,000 $60,000 $49,000 $49,000 $53,900 $60,000 $60,000 $75,000 $75,000
High-end vehicles $60,000 $70,000 $70,000 $70,000 $49,500 $39,200 $39,200 $49,500 $69,300 $70,000 $100,000 $100,000
Loan sales $4,000 $4,800 $6,000 $6,000 $4,800 $4,000 $4,000 $4,800 $6,000 $6,000 $8,000 $8,000
Warranty sales $2,000 $2,400 $2,400 $2,400 $2,400 $2,000 $2,000 $2,000 $2,400 $2,400 $2,400 $2,400
Other/consignments $20,000 $25,000 $25,000 $25,000 $20,000 $10,000 $10,000 $20,000 $20,000 $20,000 $25,000 $25,000
Total Sales $186,000 $227,200 $238,400 $238,400 $186,700 $144,200 $140,200 $170,200 $207,700 $208,400 $270,400 $270,400
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
Low-end vehicles 0.00% $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Average vehicles 0.00% $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00
High-end vehicles 0.00% $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00 $8,000.00
Loan sales 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
Warranty sales 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
Other/consignments 0.00% $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00
Direct Cost of Sales
Low-end vehicles $24,000 $30,000 $36,000 $36,000 $30,000 $24,000 $21,600 $24,000 $30,000 $30,000 $36,000 $36,000
Average vehicles $42,000 $52,500 $52,500 $52,500 $42,000 $35,000 $35,000 $38,500 $42,000 $42,000 $52,500 $52,500
High-end vehicles $48,000 $56,000 $56,000 $56,000 $40,000 $32,000 $32,000 $40,000 $56,000 $56,000 $80,000 $80,000
Loan sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Warranty sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other/consignments $18,000 $22,500 $22,500 $22,500 $18,000 $9,000 $9,000 $18,000 $18,000 $18,000 $22,500 $22,500
Subtotal Direct Cost of Sales $132,000 $161,000 $167,000 $167,000 $130,000 $100,000 $97,600 $120,500 $146,000 $146,000 $191,000 $191,000
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
Production Personnel
Owner/Manager $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Sales and Marketing Personnel
Sales Manager $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,000
General and Administrative Personnel
Secretary/Records Admin $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,300
Lot Attendant $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,350
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,650
Other Personnel
Accountant $500 $0 $0 $500 $0 $0 $500 $0 $0 $500 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $500 $0 $0 $500 $0 $0 $500 $0 $0 $500 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $9,700 $9,200 $9,200 $9,700 $9,200 $9,200 $9,700 $9,200 $9,200 $9,700 $9,200 $10,150
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 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
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 $186,000 $227,200 $238,400 $238,400 $186,700 $144,200 $140,200 $170,200 $207,700 $208,400 $270,400 $270,400
Direct Cost of Sales $132,000 $161,000 $167,000 $167,000 $130,000 $100,000 $97,600 $120,500 $146,000 $146,000 $191,000 $191,000
Production Payroll $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $135,500 $164,500 $170,500 $170,500 $133,500 $103,500 $101,100 $124,000 $149,500 $149,500 $194,500 $194,500
Gross Margin $50,500 $62,700 $67,900 $67,900 $53,200 $40,700 $39,100 $46,200 $58,200 $58,900 $75,900 $75,900
Gross Margin % 27.15% 27.60% 28.48% 28.48% 28.49% 28.22% 27.89% 27.14% 28.02% 28.26% 28.07% 28.07%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $3,000
Advertising/Promotion $2,000 $2,000 $1,000 $1,000 $1,000 $500 $500 $1,000 $1,000 $1,000 $1,000 $2,000
Web Page Maintenance $400 $400 $400 $400 $200 $200 $200 $200 $200 $200 $400 $400
Cleaning/Maintenance $700 $700 $500 $500 $500 $500 $500 $500 $500 $500 $500 $700
Travel/Auctions $400 $400 $400 $200 $200 $200 $200 $200 $200 $200 $200 $400
Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales and Marketing Expenses $6,000 $6,000 $4,800 $4,600 $4,400 $3,900 $3,900 $4,400 $4,400 $4,400 $4,600 $6,500
Sales and Marketing % 3.23% 2.64% 2.01% 1.93% 2.36% 2.70% 2.78% 2.59% 2.12% 2.11% 1.70% 2.40%
General and Administrative Expenses
General and Administrative Payroll $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,650
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $100 $0 $0 $100 $0 $0 $100 $0 $0 $100 $0 $0
Leased Equipment $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Payroll Taxes 15% $1,455 $1,380 $1,380 $1,455 $1,380 $1,380 $1,455 $1,380 $1,380 $1,455 $1,380 $1,523
Other General and Administrative Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $9,755 $9,580 $9,580 $9,755 $9,580 $9,580 $9,755 $9,580 $9,580 $9,755 $9,580 $10,173
General and Administrative % 5.24% 4.22% 4.02% 4.09% 5.13% 6.64% 6.96% 5.63% 4.61% 4.68% 3.54% 3.76%
Other Expenses:
Other Payroll $500 $0 $0 $500 $0 $0 $500 $0 $0 $500 $0 $0
Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contract/Consultants-Accountant Review Books $0 $0 $400 $0 $0 $400 $0 $0 $400 $0 $0 $400
Total Other Expenses $500 $0 $400 $500 $0 $400 $500 $0 $400 $500 $0 $400
Other % 0.27% 0.00% 0.17% 0.21% 0.00% 0.28% 0.36% 0.00% 0.19% 0.24% 0.00% 0.15%
Total Operating Expenses $16,255 $15,580 $14,780 $14,855 $13,980 $13,880 $14,155 $13,980 $14,380 $14,655 $14,180 $17,073
Profit Before Interest and Taxes $34,245 $47,120 $53,120 $53,045 $39,220 $26,820 $24,945 $32,220 $43,820 $44,245 $61,720 $58,828
EBITDA $34,345 $47,120 $53,120 $53,145 $39,220 $26,820 $25,045 $32,220 $43,820 $44,345 $61,720 $58,828
Interest Expense $1,405 $1,393 $1,382 $1,370 $1,358 $1,347 $1,335 $1,323 $1,312 $1,300 $1,288 $1,568
Taxes Incurred $9,852 $13,718 $15,522 $15,503 $11,358 $7,642 $7,083 $9,269 $12,753 $12,884 $18,130 $17,178
Net Profit $22,988 $32,009 $36,217 $36,173 $26,503 $17,831 $16,527 $21,628 $29,756 $30,062 $42,302 $40,081
Net Profit/Sales 12.36% 14.09% 15.19% 15.17% 14.20% 12.37% 11.79% 12.71% 14.33% 14.42% 15.64% 14.82%
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 $186,000 $227,200 $238,400 $238,400 $186,700 $144,200 $140,200 $170,200 $207,700 $208,400 $270,400 $270,400
Subtotal Cash from Operations $186,000 $227,200 $238,400 $238,400 $186,700 $144,200 $140,200 $170,200 $207,700 $208,400 $270,400 $270,400
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 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $30,000 $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 $316,000 $227,200 $238,400 $238,400 $186,700 $144,200 $140,200 $170,200 $207,700 $208,400 $270,400 $320,400
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 $9,700 $9,200 $9,200 $9,700 $9,200 $9,200 $9,700 $9,200 $9,200 $9,700 $9,200 $10,150
Bill Payments $8,280 $247,395 $217,281 $199,345 $189,690 $109,426 $85,071 $113,011 $165,637 $195,852 $171,867 $266,790
Subtotal Spent on Operations $17,980 $256,595 $226,481 $209,045 $198,890 $118,626 $94,771 $122,211 $174,837 $205,552 $181,067 $276,940
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 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
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 $19,980 $258,595 $228,481 $211,045 $200,890 $120,626 $96,771 $124,211 $176,837 $207,552 $183,067 $278,940
Net Cash Flow $296,020 ($31,395) $9,919 $27,355 ($14,190) $23,574 $43,429 $45,989 $30,863 $848 $87,333 $41,460
Cash Balance $363,820 $332,425 $342,344 $369,699 $355,509 $379,084 $422,513 $468,502 $499,365 $500,213 $587,546 $629,006
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 $67,800 $363,820 $332,425 $342,344 $369,699 $355,509 $379,084 $422,513 $468,502 $499,365 $500,213 $587,546 $629,006
Inventory $50,000 $145,200 $177,100 $183,700 $183,700 $143,000 $110,000 $107,360 $132,550 $160,600 $160,600 $210,100 $210,100
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $117,800 $509,020 $509,525 $526,044 $553,399 $498,509 $489,084 $529,873 $601,052 $659,965 $660,813 $797,646 $839,106
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $100 $100 $100 $200 $200 $200 $300 $300 $300 $400 $400 $400
Total Long-term Assets $0 ($100) ($100) ($100) ($200) ($200) ($200) ($300) ($300) ($300) ($400) ($400) ($400)
Total Assets $117,800 $508,920 $509,425 $525,944 $553,199 $498,309 $488,884 $529,573 $600,752 $659,665 $660,413 $797,246 $838,706
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 $240,132 $210,628 $192,930 $186,013 $106,620 $81,363 $107,525 $159,077 $190,234 $162,921 $259,451 $212,830
Current Borrowing $100,000 $198,000 $196,000 $194,000 $192,000 $190,000 $188,000 $186,000 $184,000 $182,000 $180,000 $178,000 $226,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $100,000 $438,132 $406,628 $386,930 $378,013 $296,620 $269,363 $293,525 $343,077 $372,234 $342,921 $437,451 $438,830
Long-term Liabilities $0 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Total Liabilities $100,000 $468,132 $436,628 $416,930 $408,013 $326,620 $299,363 $323,525 $373,077 $402,234 $372,921 $467,451 $468,830
Paid-in Capital $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Retained Earnings ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200) ($12,200)
Earnings $0 $22,988 $54,997 $91,214 $127,386 $153,889 $171,721 $188,248 $209,875 $239,631 $269,693 $311,995 $352,076
Total Capital $17,800 $40,788 $72,797 $109,014 $145,186 $171,689 $189,521 $206,048 $227,675 $257,431 $287,493 $329,795 $369,876
Total Liabilities and Capital $117,800 $508,920 $509,425 $525,944 $553,199 $498,309 $488,884 $529,573 $600,752 $659,665 $660,413 $797,246 $838,706
Net Worth $17,800 $40,788 $72,797 $109,014 $145,186 $171,689 $189,521 $206,048 $227,675 $257,431 $287,493 $329,795 $369,876