Botanical Bounty
Financial Plan
Forecast
Key Assumptions
Our key assumptions
- Our market and customer base are growing and with them the opportunities for sales.
- The area has wealthy households that can afford to spend money on non essential vitamins.
- Our customers appreciate our dedication to high quality products and price controls.
- We will be able to get the 100,000 dollar loan at 8 percent based on our past success and being able to put our property up as collateral. We are a safe investment. If unplanned expenses pop up we have people interested in investing.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We will be using the loan to purchase machines and to expand our farm and our personnel to grow the highest quality botanicals and process them so they can be turned into vitamins or other products that give the customer a natural cure.
Sources of Funds
We are leveraging our business to get an $100,000 10-year loan. We will also be using the cash on hand from our current business.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $208,590 | $307,600 | $419,600 |
| Direct Costs | $62,577 | $92,280 | $125,880 |
| Gross Margin | $146,013 | $215,320 | $293,720 |
| Gross Margin % | 70% | 70% | 70% |
| Operating Expenses | |||
| Salaries & Wages | $113,700 | $129,744 | $151,066 |
| Employee Related Expenses | $22,740 | $25,949 | $30,213 |
| Sales and Marketing | $10,500 | $5,400 | $5,500 |
| Rent | $24,000 | $24,000 | $24,000 |
| Utilities | $6,000 | $6,000 | $6,000 |
| Insurance | $3,000 | $3,000 | $3,000 |
| Total Operating Expenses | $179,940 | $194,093 | $219,779 |
| Operating Income | ($33,927) | $21,227 | $73,941 |
| Interest Incurred | $7,129 | $7,238 | $6,631 |
| Depreciation and Amortization | $5,830 | $5,830 | $5,830 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $2,730 |
| Total Expenses | $255,476 | $299,441 | $360,850 |
| Net Profit | ($46,886) | $8,159 | $58,750 |
| Net Profit/Sales | (22%) | 3% | 14% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $24,463 | $29,034 | $87,541 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | $7,690 | $10,490 | $10,490 |
| Other Current Assets | |||
| Total Current Assets | $32,152 | $39,524 | $98,030 |
| Long-Term Assets | $58,300 | $58,300 | $58,300 |
| Accumulated Depreciation | ($5,830) | ($11,660) | ($17,490) |
| Total Long-Term Assets | $52,470 | $46,640 | $40,810 |
| Total Assets | $84,622 | $86,164 | $138,840 |
| Accounts Payable | $2,722 | $3,422 | $3,424 |
| Income Taxes Payable | $0 | $0 | $1,850 |
| Sales Taxes Payable | |||
| Short-Term Debt | $7,318 | $7,925 | $8,583 |
| Prepaid Revenue | |||
| Total Current Liabilities | $10,040 | $11,347 | $13,857 |
| Long-Term Debt | $86,468 | $78,543 | $69,961 |
| Long-Term Liabilities | $86,468 | $78,543 | $69,961 |
| Total Liabilities | $96,508 | $89,891 | $83,818 |
| Paid-In Capital | $35,000 | $35,000 | $35,000 |
| Retained Earnings | ($46,886) | ($38,727) | |
| Earnings | ($46,886) | $8,159 | $58,750 |
| Total Owner’s Equity | ($11,886) | ($3,727) | $55,023 |
| Total Liabilities & Equity | $84,622 | $86,164 | $138,840 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($46,886) | $8,159 | $58,750 |
| Depreciation & Amortization | $5,830 | $5,830 | $5,830 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($7,690) | ($2,800) | $0 |
| Change in Accounts Payable | $2,722 | $700 | $2 |
| Change in Income Tax Payable | $0 | $0 | $1,850 |
| Change in Sales Tax Payable | |||
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($46,023) | $11,889 | $66,432 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($58,300) | ||
| Net Cash from Investing | ($58,300) | ||
| Investments Received | $35,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $7,318 | $607 | $658 |
| Change in Long-Term Debt | $86,468 | ($7,925) | ($8,583) |
| Net Cash from Financing | $128,786 | ($7,318) | ($7,925) |
| Cash at Beginning of Period | $0 | $24,463 | $29,034 |
| Net Change in Cash | $24,463 | $4,571 | $58,507 |
| Cash at End of Period | $24,463 | $29,034 | $87,541 |
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