Michael's Video Service

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Video Production 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
Video services 0% $5,000 $7,000 $12,000 $13,000 $13,000 $13,000 $14,000 $14,000 $14,000 $15,000 $15,000 $14,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $5,000 $7,000 $12,000 $13,000 $13,000 $13,000 $14,000 $14,000 $14,000 $15,000 $15,000 $14,000
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
Video services $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
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
Michael Morisson 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Other 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 2 2 2 2 2 2 2 2 2 2 2 2
Total Payroll $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
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% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
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 $7,000 $12,000 $13,000 $13,000 $13,000 $14,000 $14,000 $14,000 $15,000 $15,000 $14,000
Direct Cost of Sales $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Gross Margin $4,600 $6,600 $11,600 $12,600 $12,600 $12,600 $13,600 $13,600 $13,600 $14,600 $14,600 $13,600
Gross Margin % 92.00% 94.29% 96.67% 96.92% 96.92% 96.92% 97.14% 97.14% 97.14% 97.33% 97.33% 97.14%
Expenses
Payroll $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Sales and Marketing and Other Expenses $1,300 $1,300 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Depreciation $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Gas $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Utilities & phone $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Payroll Taxes 15% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $8,800 $8,800 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100
Profit Before Interest and Taxes ($4,200) ($2,200) $2,500 $3,500 $3,500 $3,500 $4,500 $4,500 $4,500 $5,500 $5,500 $4,500
EBITDA ($2,200) ($200) $4,500 $5,500 $5,500 $5,500 $6,500 $6,500 $6,500 $7,500 $7,500 $6,500
Interest Expense $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Taxes Incurred ($2,010) ($1,175) $0 $250 $250 $250 $500 $500 $500 $750 $750 $500
Net Profit ($4,690) ($3,525) $0 $750 $750 $750 $1,500 $1,500 $1,500 $2,250 $2,250 $1,500
Net Profit/Sales -93.80% -50.36% 0.00% 5.77% 5.77% 5.77% 10.71% 10.71% 10.71% 15.00% 15.00% 10.71%
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 $1,250 $1,750 $3,000 $3,250 $3,250 $3,250 $3,500 $3,500 $3,500 $3,750 $3,750 $3,500
Cash from Receivables $0 $125 $3,800 $5,375 $9,025 $9,750 $9,750 $9,775 $10,500 $10,500 $10,525 $11,250
Subtotal Cash from Operations $1,250 $1,875 $6,800 $8,625 $12,275 $13,000 $13,250 $13,275 $14,000 $14,250 $14,275 $14,750
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 $1,250 $1,875 $6,800 $8,625 $12,275 $13,000 $13,250 $13,275 $14,000 $14,250 $14,275 $14,750
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 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Bill Payments $110 $3,318 $4,174 $5,642 $6,817 $5,850 $5,892 $7,067 $6,133 $7,075 $6,350 $6,375
Subtotal Spent on Operations $4,110 $7,318 $8,174 $9,642 $10,817 $9,850 $9,892 $11,067 $10,133 $11,075 $10,350 $10,375
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 $4,110 $7,318 $8,174 $9,642 $10,817 $9,850 $9,892 $11,067 $10,133 $11,075 $10,350 $10,375
Net Cash Flow ($2,860) ($5,443) ($1,374) ($1,017) $1,458 $3,150 $3,358 $2,208 $3,867 $3,175 $3,925 $4,375
Cash Balance $57,140 $51,698 $50,323 $49,307 $50,765 $53,915 $57,273 $59,482 $63,348 $66,523 $70,448 $74,823
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 $60,000 $57,140 $51,698 $50,323 $49,307 $50,765 $53,915 $57,273 $59,482 $63,348 $66,523 $70,448 $74,823
Accounts Receivable $0 $3,750 $8,875 $14,075 $18,450 $19,175 $19,175 $19,925 $20,650 $20,650 $21,400 $22,125 $21,375
Inventory $2,000 $1,600 $1,200 $800 $1,400 $1,000 $600 $1,200 $800 $1,400 $1,000 $600 $1,200
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $62,000 $62,490 $61,773 $65,198 $69,157 $70,940 $73,690 $78,398 $80,932 $85,398 $88,923 $93,173 $97,398
Long-term Assets
Long-term Assets $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000
Accumulated Depreciation $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Total Long-term Assets $240,000 $238,000 $236,000 $234,000 $232,000 $230,000 $228,000 $226,000 $224,000 $222,000 $220,000 $218,000 $216,000
Total Assets $302,000 $300,490 $297,773 $299,198 $301,157 $300,940 $301,690 $304,398 $304,932 $307,398 $308,923 $311,173 $313,398
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 $3,180 $3,988 $5,413 $6,622 $5,655 $5,655 $6,863 $5,897 $6,863 $6,138 $6,138 $6,863
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 $3,180 $3,988 $5,413 $6,622 $5,655 $5,655 $6,863 $5,897 $6,863 $6,138 $6,138 $6,863
Long-term Liabilities $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000
Total Liabilities $300,000 $303,180 $303,988 $305,413 $306,622 $305,655 $305,655 $306,863 $305,897 $306,863 $306,138 $306,138 $306,863
Paid-in Capital $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000
Retained Earnings ($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)
Earnings $0 ($4,690) ($8,215) ($8,215) ($7,465) ($6,715) ($5,965) ($4,465) ($2,965) ($1,465) $785 $3,035 $4,535
Total Capital $2,000 ($2,690) ($6,215) ($6,215) ($5,465) ($4,715) ($3,965) ($2,465) ($965) $535 $2,785 $5,035 $6,535
Total Liabilities and Capital $302,000 $300,490 $297,773 $299,198 $301,157 $300,940 $301,690 $304,398 $304,932 $307,398 $308,923 $311,173 $313,398
Net Worth $2,000 ($2,690) ($6,215) ($6,215) ($5,465) ($4,715) ($3,965) ($2,465) ($965) $535 $2,785 $5,035 $6,535