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Martini Astrology and Tarot

Executive Summary

Martini Astrology and Tarot is a Eugene, OR based business that specializes in astrology and tarot reading. Martini will initially be a home-based service provider operating out of the owner’s home. The founder and owner, Sarah Esppe will also offer out-call services by appointment. Sarah has forecasted the need to open a dedicated office somewhere between Years One and Three.

Martini will be based in Eugene, OR, a liberal, alternative community within the Willamette river valley. Martini will target three distinct customer segments. The first segment is composed of the under 29 year olds. This segment is growing at 15% a year and has 95,000 potential customers. The second group is aged 30-45 years with a 10% growth rate and 150,000 potential people. The last group that will be targeted is the over 46 year olds. This group is has the slowest annual growth rate of 5% with 50,000 people.

Martini’s readings will be used for consulting and entertainment purposes. Sarah’s goal will be to develop long-term relationships with the majority of her clients, utilizing her services on a weekly or bi-weekly interval. Sarah will obtain this goal by providing her clients with relevant, accurate, and quality readings at reasonable rates.

As mentioned previously, Sarah Esppe is the sole proprietor of Martini. Sarah has been providing readings for four years. Sarah’s formal training began at the Iowa Center for Astrology, recognized as one of the top three facilities in the United States. Sarah completed their 8-month program and was awarded their respected certification. Following her time at the Iowa Center, Sarah studied for four months at Tarot University in New Orleans, receiving the highest level of certification available, the Master Tarot Reader degree. Sarah will leverage this formal training to provide the finest astrology and tarot consultations.

Martini is an exciting start-up business. Sales have been conservatively forecasted to reach $68,000 in sales in Year One, rising to $86,000 by Year Three. Sarah will reach profitability in Year One.

Astrology tarot card business plan, executive summary chart image

1.1 Objectives

The objectives for the business are:

  1. Reaching break-even and positive cash flow.
  2. Make enough of a profit to maintain a location outside my home and purchase a stand at the Saturday Market and area festivals and fairs.
  3. Earn a reputation as an accurate and entertaining tarot and astrological reader.

1.2 Mission

Martini Astrology and Tarot will offer high-quality, personal astrology and tarot readings for entertainment purposes. I will offer a high level of personalized, accurate readings tailored to my clients’ needs. I will be available for in-call and out-call readings at varying prices to make astrological and tarot readings more accessible and reasonable for my clients. To gain customers’ respect and trust, Martini must be known for a high level of accuracy and quality.

1.3 Keys to Success

  1. Satisfying clients with accurate and complete quality readings for a reasonable price.
  2. Developing enough word-of-mouth and advertising revenue to maintain a client base.
  3. Purchasing a booth at the Saturday Market, where I will be able to give tarot and astrology readings each weekend.
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Company Summary

Martini Astrology and Tarot is a new company that provides high-level readings to its clients in the Eugene area. It will focus initially on giving two types of services: astrology and tarot readings. As the company grows, it will expand by purchasing a booth at the Saturday Market and other local area fairs and festivals.

2.1 Company Ownership

Martini Astrology and Tarot will be created as a sole proprietorship company based in Eugene, Oregon.

2.2 Start-up Summary

Assets include my computer, software, and books. Since most of the items I already have, the start-up costs are less than seen here. Start-up funding will be provided by the owner of the company, myself.

Astrology tarot card business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $300
Stationery etc. $120
Brochures $150
Research and development $50
Astrology Program and Tarot Cards $50
Total Start-up Expenses $670
Start-up Assets
Cash Required $200
Other Current Assets $1,000
Long-term Assets $0
Total Assets $1,200
Total Requirements $1,870
Start-up Funding
Start-up Expenses to Fund $670
Start-up Assets to Fund $1,200
Total Funding Required $1,870
Assets
Non-cash Assets from Start-up $1,000
Cash Requirements from Start-up $200
Additional Cash Raised $0
Cash Balance on Starting Date $200
Total Assets $1,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $1,870
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $1,870
Loss at Start-up (Start-up Expenses) ($670)
Total Capital $1,200
Total Capital and Liabilities $1,200
Total Funding $1,870

2.3 Company Locations and Facilities

Initially, Martini Astrology and Tarot will be run from my home, with out-call services as my main business. However, this business plan calls for establishing a location outside the home. I am currently negotiating for booth space at the 5th Street Market complex, which has good traffic, easy parking, and people with the right aura.

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Services

Martini Astrology and Tarot offers the expertise of a quality astrology and tarot reader to its clients.

3.1 Service Description

As of June 2001, Martini has two basic services available for clients:

  • Astrology Readings
  • Tarot Readings

3.2 Sales Literature

The business will begin with simple business cards listing my services. Eventually, with a larger client base, brochures will be made that include prices and what type of tarot and astrology readings are available.

3.3 Fulfillment

Key fulfillment will be delivered by the sole proprietor of Martini Astrology and Tarot. The real core value is professional expertise, provided by a combination of experience, empathy, and education.

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Market Analysis Summary

Martini will focus on customers between the ages of 15 and 60 wanting to have their astrological charts interpreted, or who are interested in tarot readings. My largest growth market will be those under the age of 29, but the market I will get the most repeat customers from will be between the ages of 30 to 45.

4.1 Market Segmentation

The market analysis numbers are based on the general population of Eugene, and were taken by the Census Board.

Astrology tarot card business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
29 and under 15% 95,000 109,250 125,638 144,484 166,157 15.00%
30-45 10% 150,000 165,000 181,500 199,650 219,615 10.00%
46 and over 5% 50,000 52,500 55,125 57,881 60,775 5.00%
Total 10.92% 295,000 326,750 362,263 402,015 446,547 10.92%

4.2 Market Needs

My target clients are those who are interested in having a glimpse into their future. They will use my readings for consulting and entertainment purposes. Ideally, they will come to me for a long-term alliance, looking for reliable readings and empathic support.

4.3 Target Market Segment Strategy

Sales forecast for October and December are higher due to holidays such as Halloween/Samhain and Christmas/Winter Solstice. Also, because much of business will be done in coffee shops, fairs, and parties, concrete sales forecast of units is difficult, but should remain fairly steady.

4.4 Service Business Analysis

The astrology and tarot business consists of thousands of smaller companies and individuals. Most are online at this time, so face-to-face service is harder to find, and not easily accessible. Most clients stumble on to these businesses by mistake or luck, and purchase depending on their needs at that time.

4.4.1 Main Competitors

My main competition will be others in the Eugene/Springfield area providing the same type of services, and services available over the Internet.

4.4.2 Competition and Buying Patterns

The key element in purchase decisions made at the client level is trust in the reputation and reliability of Martini Astrology and Tarot.

Pricing is surprisingly variable. In consulting at this level, it is easier to be priced too low than too high. Clients and potential clients expect to pay substantial fees for the best quality professional advice.

4.4.3 Business Participants

The astrology and tarot reading industry is made up of many small participants, with a few world-renowned readers.

4.4.4 Distributing a Service

Consulting is sold and purchased mainly on a word-of-mouth basis, with relationships and previous experience being by far the most important factor.

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Strategy and Implementation Summary

Martini Astrology and Tarot will focus primarily on Eugene and surrounding cities. The target customer is usually someone who would like a tarot or astrology reading, and would like to continue consulting my services in the future.

5.1 Marketing Strategy

My target market will be mainly people under the age of 40 who would like to get a tarot or astrology reading for entertainment purposes. In the beginning, I will target people in the downtown area who would like to have a quick tarot reading for $10 to $20. Once they have gotten one reading from me, I will inform them of my astrology services.

5.1.1 Positioning Statement

For clients who would like an astrology or tarot reading, Martini offers specialized, well-proven expertise. Unlike online companies, readings will be face-to-face and reasonably priced.

5.1.2 Pricing Strategy

My prices will be competitive, ranging anywhere from $10, for a quick 10 minute reading, to $25 and higher for an astrology chart print out and summary.

5.1.3 Promotion Strategy

Martini must generate and manage speaking opportunities at fairs, festivals, parties, and other arenas. The company will depend on retail traffic at it’s location, and word of mouth until a client base is formed, then will begin advertising with fliers, brochures, and classified advertisements in smaller periodicals.

5.2 Sales Strategy

Sales in our business is client service. It is a repeat business. One doesn’t sell an astrology and tarot company, one develops a reputation that gains the trust and respect of clients.

5.2.1 Sales Forecast

The Sales Forecast table and chart give a run-down on forecasted sales. I expect holidays such as Halloween, Christmas, and New Year’s Eve to be my biggest sales events, which will include being hired for parties and festivals. The first year sales forecast includes the general ramp-up expected as the business gets going.

Astrology tarot card business plan, strategy and implementation summary chart image

Astrology tarot card business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Tarot 2,134 2,347 2,582
Astrology 1,077 1,185 1,303
Other- Quick Readings 1,235 1,359 1,494
Total Unit Sales 4,446 4,891 5,380
Unit Prices Year 1 Year 2 Year 3
Tarot $14.25 $15.00 $15.00
Astrology $24.26 $25.00 $25.00
Other- Quick Readings $10.00 $10.00 $10.00
Sales
Tarot $30,420 $35,211 $38,732
Astrology $26,130 $29,618 $32,579
Other- Quick Readings $12,350 $13,585 $14,944
Total Sales $68,900 $78,414 $86,255
Direct Unit Costs Year 1 Year 2 Year 3
Tarot $2.00 $2.00 $2.00
Astrology $4.00 $4.00 $4.00
Other- Quick Readings $0.95 $1.00 $1.00
Direct Cost of Sales
Tarot $4,268 $4,695 $5,164
Astrology $4,308 $4,739 $5,213
Other- Quick Readings $1,174 $1,359 $1,494
Subtotal Direct Cost of Sales $9,750 $10,792 $11,871

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Management Summary

As a sole proprietor, management of a team will not be an issue. I expect to do this myself. The additional personnel cost of $500 per month is for administrative and support help, part time, and only when the business gets going.

6.1 Personnel Plan

Payroll is calculated for myself, and amounts are based expected profits for each month. There is also a second person for support, administrative help, etc. Profits after payroll will be put back into the business for advertising, travel, and other miscellaneous expenses.

Personnel Plan
Year 1 Year 2 Year 3
Principal $34,000 $40,000 $45,000
Other $1,500 $5,000 $6,500
Total People 2 2 2
Total Payroll $35,500 $45,000 $51,500

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Financial Plan

Martini Astrology and Tarot’s financial growth will be through cash flow. I recognize that this means we will have to grow more slowly, but it ensures stability.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. From the beginning, we realize that word of mouth and repeat customers will be critical, and can only be influenced through quality readings and customer satisfaction.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00%
Other 0 0 0

7.2 Key Financial Indicators

The following Benchmarks chart indicates the key financial indicators for the first three years. I foresee major growth in sales, especially during holiday seasons.

Astrology tarot card business plan, financial plan chart image

7.3 Break-even Analysis

The following table and chart summarize the Break-even Analysis. With relatively low monthly fixed costs, it will not be difficult to achieve the break-even point the first month. It’s important to note that most of the fixed cost is my own compensation.

Astrology tarot card business plan, financial plan chart image

Break-even Analysis
Monthly Units Break-even 276
Monthly Revenue Break-even $4,281
Assumptions:
Average Per-Unit Revenue $15.50
Average Per-Unit Variable Cost $2.19
Estimated Monthly Fixed Cost $3,675

7.4 Projected Profit and Loss

Advertising expenses are accounted for depending on the month and what holidays will be coming up. Travel expenses stay the same since most traveling will be done in the general area of Eugene and not much is expected. Other expenses include books, seminars, costumes, etc. Utilities, rent, and consultants are not taken into account because most work will not be done at home. Costs to look into at a later date might include the cost of a stand at the Saturday Market, licensing, working from a small office, etc.

Astrology tarot card business plan, financial plan chart image

Astrology tarot card business plan, financial plan chart image

Astrology tarot card business plan, financial plan chart image

Astrology tarot card business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $68,900 $78,414 $86,255
Direct Cost of Sales $9,750 $10,792 $11,871
Other $60 $65 $70
Total Cost of Sales $9,810 $10,857 $11,941
Gross Margin $59,090 $67,556 $74,314
Gross Margin % 85.76% 86.15% 86.16%
Expenses
Payroll $35,500 $45,000 $51,500
Sales and Marketing and Other Expenses $3,200 $3,875 $4,550
Depreciation $0 $0 $0
Rent $5,400 $5,800 $6,200
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $44,100 $54,675 $62,250
Profit Before Interest and Taxes $14,990 $12,881 $12,064
EBITDA $14,990 $12,881 $12,064
Interest Expense $0 $0 $0
Taxes Incurred $3,748 $3,220 $3,016
Net Profit $11,243 $9,661 $9,048
Net Profit/Sales 16.32% 12.32% 10.49%

7.5 Projected Cash Flow

The annual cash flow figures are included below and the more important detailed monthly numbers are included in the appendix. Cash flow will depend on the amount of time I spend in the field providing my service to customers, so projections may vary.

Astrology tarot card business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $68,900 $78,414 $86,255
Subtotal Cash from Operations $68,900 $78,414 $86,255
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $68,900 $78,414 $86,255
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $35,500 $45,000 $51,500
Bill Payments $19,845 $24,113 $25,547
Subtotal Spent on Operations $55,345 $69,113 $77,047
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $55,345 $69,113 $77,047
Net Cash Flow $13,555 $9,301 $9,208
Cash Balance $13,755 $23,056 $32,264

7.6 Projected Balance Sheet

The Balance Sheet in the following table shows managed but sufficient growth of net worth, and a healthy financial position. The monthly estimates are included in the appendices.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $13,755 $23,056 $32,264
Other Current Assets $1,000 $1,000 $1,000
Total Current Assets $14,755 $24,056 $33,264
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $14,755 $24,056 $33,264
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $2,313 $1,952 $2,113
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $2,313 $1,952 $2,113
Long-term Liabilities $0 $0 $0
Total Liabilities $2,313 $1,952 $2,113
Paid-in Capital $1,870 $1,870 $1,870
Retained Earnings ($670) $10,573 $20,234
Earnings $11,243 $9,661 $9,048
Total Capital $12,443 $22,104 $31,151
Total Liabilities and Capital $14,755 $24,056 $33,264
Net Worth $12,442 $22,104 $31,151

7.7 Business Ratios

The following table contains ratios from the entertainment industry, as determined by the Standard Industry Classification (SIC) Index #7299, Personal Services.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 13.81% 10.00% 8.15%
Percent of Total Assets
Other Current Assets 6.78% 4.16% 3.01% 35.03%
Total Current Assets 100.00% 100.00% 100.00% 55.79%
Long-term Assets 0.00% 0.00% 0.00% 44.21%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 15.67% 8.12% 6.35% 25.11%
Long-term Liabilities 0.00% 0.00% 0.00% 22.00%
Total Liabilities 15.67% 8.12% 6.35% 47.11%
Net Worth 84.33% 91.88% 93.65% 52.89%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.76% 86.15% 86.16% 100.00%
Selling, General & Administrative Expenses 75.24% 80.29% 82.38% 77.99%
Advertising Expenses 3.48% 3.83% 4.06% 1.85%
Profit Before Interest and Taxes 21.76% 16.43% 13.99% 3.35%
Main Ratios
Current 6.38 12.32 15.74 1.73
Quick 6.38 12.32 15.74 1.30
Total Debt to Total Assets 15.67% 8.12% 6.35% 6.16%
Pre-tax Return on Net Worth 120.47% 58.28% 38.73% 59.92%
Pre-tax Return on Assets 101.59% 53.55% 36.27% 15.38%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 16.32% 12.32% 10.49% n.a
Return on Equity 90.36% 43.71% 29.04% n.a
Activity Ratios
Accounts Payable Turnover 9.58 12.17 12.17 n.a
Payment Days 27 33 29 n.a
Total Asset Turnover 4.67 3.26 2.59 n.a
Debt Ratios
Debt to Net Worth 0.19 0.09 0.07 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $12,442 $22,104 $31,151 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.21 0.31 0.39 n.a
Current Debt/Total Assets 16% 8% 6% n.a
Acid Test 6.38 12.32 15.74 n.a
Sales/Net Worth 5.54 3.55 2.77 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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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
Tarot 0% 96 106 116 128 180 156 210 188 206 226 248 274
Astrology 0% 48 53 58 64 95 78 110 94 103 113 124 137
Other- Quick Readings 0% 58 64 70 77 84 94 102 113 124 136 149 164
Total Unit Sales 202 223 244 269 359 328 422 395 433 475 521 575
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
Tarot $10.00 $10.00 $10.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00
Astrology $20.00 $20.00 $20.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00
Other- Quick Readings $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Sales
Tarot $960 $1,060 $1,160 $1,920 $2,700 $2,340 $3,150 $2,820 $3,090 $3,390 $3,720 $4,110
Astrology $960 $1,060 $1,160 $1,600 $2,375 $1,950 $2,750 $2,350 $2,575 $2,825 $3,100 $3,425
Other- Quick Readings $580 $640 $700 $770 $840 $940 $1,020 $1,130 $1,240 $1,360 $1,490 $1,640
Total Sales $2,500 $2,760 $3,020 $4,290 $5,915 $5,230 $6,920 $6,300 $6,905 $7,575 $8,310 $9,175
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
Tarot 0.00% $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00
Astrology 0.00% $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00
Other- Quick Readings 0.00% $0.50 $0.50 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Direct Cost of Sales
Tarot $192 $212 $232 $256 $360 $312 $420 $376 $412 $452 $496 $548
Astrology $192 $212 $232 $256 $380 $312 $440 $376 $412 $452 $496 $548
Other- Quick Readings $29 $32 $70 $77 $84 $94 $102 $113 $124 $136 $149 $164
Subtotal Direct Cost of Sales $413 $456 $534 $589 $824 $718 $962 $865 $948 $1,040 $1,141 $1,260
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
Principal 0% $1,000 $1,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,000 $4,000 $5,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $500 $500 $500
Total People 1 1 1 1 1 1 1 1 1 2 2 2
Total Payroll $1,000 $1,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,500 $4,500 $5,500

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 25.00% 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 $2,500 $2,760 $3,020 $4,290 $5,915 $5,230 $6,920 $6,300 $6,905 $7,575 $8,310 $9,175
Direct Cost of Sales $413 $456 $534 $589 $824 $718 $962 $865 $948 $1,040 $1,141 $1,260
Other $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5
Total Cost of Sales $418 $461 $539 $594 $829 $723 $967 $870 $953 $1,045 $1,146 $1,265
Gross Margin $2,082 $2,299 $2,481 $3,696 $5,086 $4,507 $5,953 $5,430 $5,952 $6,530 $7,164 $7,910
Gross Margin % 83.28% 83.30% 82.15% 86.15% 85.98% 86.18% 86.03% 86.19% 86.20% 86.20% 86.21% 86.21%
Expenses
Payroll $1,000 $1,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,500 $4,500 $5,500
Sales and Marketing and Other Expenses $450 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Payroll Taxes 15% $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
Total Operating Expenses $1,900 $1,700 $2,700 $2,700 $3,700 $3,700 $3,700 $3,700 $3,700 $5,200 $5,200 $6,200
Profit Before Interest and Taxes $182 $599 ($219) $996 $1,386 $807 $2,253 $1,730 $2,252 $1,330 $1,964 $1,710
EBITDA $182 $599 ($219) $996 $1,386 $807 $2,253 $1,730 $2,252 $1,330 $1,964 $1,710
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $46 $150 ($55) $249 $347 $202 $563 $433 $563 $333 $491 $428
Net Profit $137 $449 ($164) $747 $1,040 $605 $1,690 $1,298 $1,689 $998 $1,473 $1,283
Net Profit/Sales 5.46% 16.28% -5.44% 17.41% 17.57% 11.57% 24.42% 20.60% 24.46% 13.17% 17.73% 13.98%

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 $2,500 $2,760 $3,020 $4,290 $5,915 $5,230 $6,920 $6,300 $6,905 $7,575 $8,310 $9,175
Subtotal Cash from Operations $2,500 $2,760 $3,020 $4,290 $5,915 $5,230 $6,920 $6,300 $6,905 $7,575 $8,310 $9,175
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 $2,500 $2,760 $3,020 $4,290 $5,915 $5,230 $6,920 $6,300 $6,905 $7,575 $8,310 $9,175
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 $1,000 $1,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,500 $4,500 $5,500
Bill Payments $45 $1,362 $1,307 $1,196 $1,554 $1,867 $1,645 $2,223 $2,010 $2,211 $2,086 $2,339
Subtotal Spent on Operations $1,045 $2,362 $3,307 $3,196 $4,554 $4,867 $4,645 $5,223 $5,010 $6,711 $6,586 $7,839
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 $1,045 $2,362 $3,307 $3,196 $4,554 $4,867 $4,645 $5,223 $5,010 $6,711 $6,586 $7,839
Net Cash Flow $1,455 $398 ($287) $1,094 $1,361 $363 $2,275 $1,077 $1,895 $864 $1,724 $1,336
Cash Balance $1,655 $2,053 $1,766 $2,860 $4,221 $4,584 $6,859 $7,936 $9,832 $10,695 $12,419 $13,755
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 $200 $1,655 $2,053 $1,766 $2,860 $4,221 $4,584 $6,859 $7,936 $9,832 $10,695 $12,419 $13,755
Other Current Assets $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total Current Assets $1,200 $2,655 $3,053 $2,766 $3,860 $5,221 $5,584 $7,859 $8,936 $10,832 $11,695 $13,419 $14,755
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 $1,200 $2,655 $3,053 $2,766 $3,860 $5,221 $5,584 $7,859 $8,936 $10,832 $11,695 $13,419 $14,755
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 $1,318 $1,267 $1,145 $1,492 $1,813 $1,571 $2,156 $1,936 $2,142 $2,008 $2,259 $2,313
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 $1,318 $1,267 $1,145 $1,492 $1,813 $1,571 $2,156 $1,936 $2,142 $2,008 $2,259 $2,313
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $1,318 $1,267 $1,145 $1,492 $1,813 $1,571 $2,156 $1,936 $2,142 $2,008 $2,259 $2,313
Paid-in Capital $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870 $1,870
Retained Earnings ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670) ($670)
Earnings $0 $137 $586 $422 $1,169 $2,208 $2,813 $4,503 $5,801 $7,490 $8,487 $9,960 $11,243
Total Capital $1,200 $1,337 $1,786 $1,622 $2,369 $3,408 $4,013 $5,703 $7,001 $8,690 $9,687 $11,160 $12,443
Total Liabilities and Capital $1,200 $2,655 $3,053 $2,766 $3,860 $5,221 $5,584 $7,859 $8,936 $10,832 $11,695 $13,419 $14,755
Net Worth $1,200 $1,337 $1,786 $1,622 $2,369 $3,408 $4,013 $5,703 $7,001 $8,690 $9,687 $11,160 $12,442

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