Promerit Advertising advertising agency business plan appendix. Promerit Advertising will offer marketing services to companies that are looking to employ email marketing techniques as the cornerstone of their marketing program.

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Advertising Agency 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
Online Companies 0% $6,000 $6,000 $10,900 $12,030 $14,400 $16,000 $16,000 $17,000 $18,000 $19,000 $20,500 $23,000
Offline Companies 0% $0 $0 $0 $0 $4,000 $5,000 $4,000 $6,000 $6,000 $5,000 $7,000 $10,000
Total Sales $6,000 $6,000 $10,900 $12,030 $18,400 $21,000 $20,000 $23,000 $24,000 $24,000 $27,500 $33,000
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
Online Companies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Offline Companies $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
Robert Humphrey 0% $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Cheryl Littlejohn 0% $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Secretary/Receptionist 0% $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Salesperson 0% $0 $0 $3,000 $3,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Bookkeeper 0% $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $4,000 $4,000 $11,000 $11,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
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% 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 $6,000 $6,000 $10,900 $12,030 $18,400 $21,000 $20,000 $23,000 $24,000 $24,000 $27,500 $33,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Production Expenses $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 $6,000 $6,000 $10,900 $12,030 $18,400 $21,000 $20,000 $23,000 $24,000 $24,000 $27,500 $33,000
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 $4,000 $4,000 $11,000 $11,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
Sales and Marketing and Other Expenses $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $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
Payroll Taxes 15% $600 $600 $1,650 $1,650 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $10,300 $10,300 $18,350 $18,350 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800
Profit Before Interest and Taxes ($4,300) ($4,300) ($7,450) ($6,320) ($3,400) ($800) ($1,800) $1,200 $2,200 $2,200 $5,700 $11,200
EBITDA ($4,300) ($4,300) ($7,450) ($6,320) ($3,400) ($800) ($1,800) $1,200 $2,200 $2,200 $5,700 $11,200
Interest Expense $819 $806 $792 $778 $764 $750 $736 $722 $708 $694 $681 $667
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($5,119) ($5,106) ($8,242) ($7,098) ($4,164) ($1,550) ($2,536) $478 $1,492 $1,506 $5,019 $10,533
Net Profit/Sales -85.32% -85.09% -75.61% -59.00% -22.63% -7.38% -12.68% 2.08% 6.22% 6.27% 18.25% 31.92%
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 $1,500 $1,500 $2,725 $3,008 $4,600 $5,250 $5,000 $5,750 $6,000 $6,000 $6,875 $8,250
Cash from Receivables $0 $150 $4,500 $4,623 $8,203 $9,182 $13,865 $15,725 $15,075 $17,275 $18,000 $18,088
Subtotal Cash from Operations $1,500 $1,650 $7,225 $7,630 $12,803 $14,432 $18,865 $21,475 $21,075 $23,275 $24,875 $26,338
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 $1,500 $1,650 $7,225 $7,630 $12,803 $14,432 $18,865 $21,475 $21,075 $23,275 $24,875 $26,338
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 $11,000 $11,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
Bill Payments $237 $7,119 $7,140 $8,141 $8,142 $8,563 $8,550 $8,536 $8,522 $8,508 $8,494 $8,480
Subtotal Spent on Operations $4,237 $11,119 $18,140 $19,141 $22,142 $22,563 $22,550 $22,536 $22,522 $22,508 $22,494 $22,480
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 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667
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 $5,904 $12,786 $19,807 $20,808 $23,809 $24,230 $24,217 $24,203 $24,189 $24,175 $24,161 $24,147
Net Cash Flow ($4,404) ($11,136) ($12,582) ($13,178) ($11,006) ($9,799) ($5,352) ($2,728) ($3,114) ($900) $714 $2,190
Cash Balance $151,096 $139,960 $127,378 $114,199 $103,193 $93,395 $88,043 $85,316 $82,202 $81,302 $82,016 $84,206
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 $155,500 $151,096 $139,960 $127,378 $114,199 $103,193 $93,395 $88,043 $85,316 $82,202 $81,302 $82,016 $84,206
Accounts Receivable $0 $4,500 $8,850 $12,525 $16,925 $22,522 $29,090 $30,225 $31,750 $34,675 $35,400 $38,025 $44,688
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $165,500 $165,596 $158,810 $149,903 $141,124 $135,715 $132,485 $128,268 $127,066 $126,877 $126,702 $130,041 $138,894
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $165,500 $165,596 $158,810 $149,903 $141,124 $135,715 $132,485 $128,268 $127,066 $126,877 $126,702 $130,041 $138,894
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 $6,882 $6,869 $7,870 $7,857 $8,278 $8,265 $8,252 $8,238 $8,225 $8,211 $8,198 $8,184
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 $6,882 $6,869 $7,870 $7,857 $8,278 $8,265 $8,252 $8,238 $8,225 $8,211 $8,198 $8,184
Long-term Liabilities $100,000 $98,333 $96,666 $94,999 $93,332 $91,665 $89,998 $88,331 $86,664 $84,997 $83,330 $81,663 $79,996
Total Liabilities $100,000 $105,215 $103,535 $102,869 $101,189 $99,943 $98,263 $96,583 $94,902 $93,222 $91,541 $89,861 $88,180
Paid-in Capital $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Retained Earnings ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500) ($34,500)
Earnings $0 ($5,119) ($10,225) ($18,467) ($25,564) ($29,728) ($31,278) ($33,814) ($33,337) ($31,845) ($30,339) ($25,320) ($14,786)
Total Capital $65,500 $60,381 $55,275 $47,033 $39,936 $35,772 $34,222 $31,686 $32,163 $33,655 $35,161 $40,180 $50,714
Total Liabilities and Capital $165,500 $165,596 $158,810 $149,903 $141,124 $135,715 $132,485 $128,268 $127,066 $126,877 $126,702 $130,041 $138,894
Net Worth $65,500 $60,381 $55,275 $47,033 $39,936 $35,772 $34,222 $31,686 $32,163 $33,655 $35,161 $40,180 $50,714
Promerit Advertising advertising agency business plan appendix. Promerit Advertising will offer marketing services to companies that are looking to employ email marketing techniques as the cornerstone of their marketing program.