Quick and Dirty Auto Repair
Financial Plan
Forecast
Key Assumptions
Our key assumptions are:
- People need cars to get to their jobs on time and make money.
- Cars break down
- Not everyone has the ability to pay for new parts and expensive service.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We will be buying $350K long term assets mainly shop equipment. The rest of the money will be spent on legal fees.
Sources of Funds
Each of the founders will contribute a fourth of the initial investment of $250K. We are also taking on a long-term loan and some credit card debt.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $5,308,400 | $5,500,000 | $5,990,000 |
| Direct Costs | $2,441,864 | $2,530,000 | $2,755,400 |
| Gross Margin | $2,866,536 | $2,970,000 | $3,234,600 |
| Gross Margin % | 54% | 54% | 54% |
| Operating Expenses | |||
| Salaries & Wages | $676,800 | $742,968 | $858,955 |
| Employee Related Expenses | $135,360 | $148,594 | $171,791 |
| Sales | $16,800 | $16,800 | $16,800 |
| Marketing | $16,200 | $16,200 | $16,200 |
| Rent | $30,000 | $30,000 | $30,000 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $875,160 | $954,562 | $1,093,746 |
| Operating Income | $1,991,376 | $2,015,438 | $2,140,854 |
| Interest Incurred | $14,080 | $9,793 | $7,822 |
| Depreciation and Amortization | $16,667 | $16,666 | $16,667 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $3,347,771 | $3,511,021 | $3,873,635 |
| Net Profit | $1,960,629 | $1,988,979 | $2,116,365 |
| Net Profit/Sales | 37% | 36% | 35% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $100,000 | $1,985,651 | $3,952,778 | $6,045,320 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $50,000 | $50,000 | $50,000 | $50,000 |
| Other Current Assets | $50,000 | $50,000 | $50,000 | $50,000 |
| Total Current Assets | $200,000 | $2,085,651 | $4,052,778 | $6,145,320 |
| Long-Term Assets | $350,000 | $350,000 | $350,000 | $350,000 |
| Accumulated Depreciation | ($16,667) | ($33,333) | ($50,000) | |
| Total Long-Term Assets | $350,000 | $333,333 | $316,667 | $300,000 |
| Total Assets | $550,000 | $2,418,985 | $4,369,445 | $6,445,320 |
| Accounts Payable | $0 | $0 | $0 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $91,644 | $38,519 | $40,490 | $42,561 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $91,644 | $38,519 | $40,490 | $42,561 |
| Long-Term Debt | $213,356 | $174,837 | $134,347 | $91,786 |
| Long-Term Liabilities | $213,356 | $174,837 | $134,347 | $91,786 |
| Total Liabilities | $305,000 | $213,356 | $174,837 | $134,347 |
| Paid-In Capital | $250,000 | $250,000 | $250,000 | $250,000 |
| Retained Earnings | ($5,000) | ($5,000) | $1,955,629 | $3,944,608 |
| Earnings | $1,960,629 | $1,988,979 | $2,116,365 | |
| Total Owner’s Equity | $245,000 | $2,205,629 | $4,194,608 | $6,310,973 |
| Total Liabilities & Equity | $550,000 | $2,418,985 | $4,369,445 | $6,445,320 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $1,960,629 | $1,988,979 | $2,116,365 |
| Depreciation & Amortization | $16,667 | $16,667 | $16,667 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | $0 | $0 | $0 |
| Change in Accounts Payable | $0 | $0 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $1,977,296 | $2,005,645 | $2,133,032 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | ($53,125) | $1,971 | $2,072 |
| Change in Long-Term Debt | ($38,519) | ($40,490) | ($42,561) |
| Net Cash from Financing | ($91,644) | ($38,519) | ($40,490) |
| Cash at Beginning of Period | $100,000 | $1,985,651 | $3,952,778 |
| Net Change in Cash | $1,885,651 | $1,967,126 | $2,092,542 |
| Cash at End of Period | $1,985,651 | $3,952,778 | $6,045,320 |
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