Martini Astrology and Tarot
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.

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.

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.




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.

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 |