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BikeArt

Executive Summary

The Concept
BikeArt’s mission is to provide the customer with functional items and art work made out of recycled bicycle parts. The art work will be made by three local artists, one of which is Steve’s wife Shoodnt. Some of the featured products are: wall clocks, picture frames, chairs, tables, mobiles, wind chimes, book ends, kitchen utensil holders, and many other products.

BikeArt will be a stand-alone kiosk located in the busy Valley River Mall. Through the outstanding terms and conditions of its lease, BikeArt will be able to display its larger items on the surrounding floor space. This should significantly increase sales as walk through traffic in the mall is very high.

BikeArt is forecasted to reach profitability by month nine and will have profits of almost $40,000 by year three.

Beginnings
The first month will be used to set up the kiosk and get things underway. During this month the part-time employees will be hired and trained. Sales will begin slowly during this first month. From the second month on, sales will steadily increase from the flow of customers that pass by the kiosk.

Total startup costs are $45,000. This will be financed through $25,000 put forward by Steve Useitagyen as equity and another $20,000 in a long-term small business loan.

The Company
The company will be a sole proprietorship owned and operated by Steve Useitagyen.

Steve Useitagyen is well qualified to work in this niche market. He received a joint degree in business administration and art design from the University of Portland. Throughout college Steve worked at a bicycle shop, initially as a mechanic, then moved up to sales, and then after college managed the shop for two years.

BikeArt will use three part-time employees to man the kiosk, in addition to Steve who will take care of the hiring, payroll, and purchasing.

The Market
BikeArt will target two market segments, industrial art aficionados and bicycle enthusiasts. Both of these groups are populous in Eugene. BikeArt is focusing on these two groups because they are the most likely consumers of this type of art work.

BikeArt has several competitors:

  • Other retailers in the mall.
  • Art galleries.
  • Bicycle retailers.

BikeArt will leverage its competitive advantage of existing in a niche market by being the only retailer that exclusively deals with bicycle artwork. Since the mall gets lots of foot traffic all day, it is like having your own show room in the middle of the hallway of a crowded mall.

Success
The company plans to grow slowly and establish a sustainable level of sales and cash flow before seeking to expand. Once this is done, BikeArt will seek to set up other kiosks in Salem, Corvallis, and Portland. This expansion is estimated to occur sometime after year three.

The Break-even Analysis indicates $15,212 is needed in monthly revenue to reach the break-even point. Pricing of BikeArt’s products will be based on a desired net margin of 12%. Because BikeArt’s products will be locally created works of art, prices are estimated to range from $40 to $500 per piece.

The business is forecasted to reach profitability by month nine and will have revenues of $147,000 and profits of $35,500 by the end of year two.

1.1 Mission

BikeArt’s mission is to provide the customer with functional items and art work made out of recycled bicycle parts.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

1.2 Objectives

The objectives for the first three years of operation include:

  • To create a product-based kiosk whose primary goal is to exceed customer’s expectations.
  • The increase in the number of products sold by 20% each year.
  • To develop a sustainable retail outlet that sells artwork and functional items made out of recycled parts.
  • Bicycle art business plan, executive summary chart image

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Company Summary

BikeArt is a stand alone kiosk located in the Valley River Mall that sells pieces of art, furniture, and other items manufactured out of recycled bicycle parts.  While some of the items are functional, they all can be considered art as they are aesthetically pleasing.  In addition to the kiosk, BikeArt will warehouse their purchased products as well as do the back end accounting in Steve Useitagyen’s home.  Steve is the founder and operator of BikeArt.

BikeArt will use three part-time employees to man the kiosk, in addition to Steve who will take care of the hiring, payroll, and purchasing.

The business is forecasted to reach profitability by month nine and will have revenues of $147,000 by the end of year two.

2.1 Company Ownership

BikeArt is a sole proprietorship founded and owned by Steve Useitagyen. 

2.2 Start-up Summary

BikeArt will incur the following start-up costs:

  • Wheeled kiosk.
  • Cash register.
  • Computer system with printer and Internet connection.
  • Desk, chair, and file cabinet.
  • Legal fees associated with business formation and contract review.
Bicycle art business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $300
Insurance $0
Rent $0
Other $0
Total Start-up Expenses $300
Start-up Assets
Cash Required $41,600
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $3,100
Total Assets $44,700
Total Requirements $45,000
Start-up Funding
Start-up Expenses to Fund $300
Start-up Assets to Fund $44,700
Total Funding Required $45,000
Assets
Non-cash Assets from Start-up $3,100
Cash Requirements from Start-up $41,600
Additional Cash Raised $0
Cash Balance on Starting Date $41,600
Total Assets $44,700
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $20,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $20,000
Capital
Planned Investment
Steve $25,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $25,000
Loss at Start-up (Start-up Expenses) ($300)
Total Capital $24,700
Total Capital and Liabilities $44,700
Total Funding $45,000

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Products

BikeArt will sell artwork manufactured from recycled bicycle parts.  The art work will be made by three local artists, one of which is Steve’s wife Shoodnt.  Some of the featured products are: wall clocks, picture frames, chairs, tables, mobiles, wind chimes, book ends, kitchen utensil holders, and many other products. 

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Market Analysis Summary

BikeArt’s customers can be broadly classified from coming from two different groups, those that appreciate industrial design artwork, and those who are bicycle enthusiasts and value anything having to do with cycling.

Being based in Eugene is very fortuitous for BikeArt.  Eugene is a progressive city which tends to favor more industrial tastes compared with more conservative towns.  Eugene is also a bicycling mecca, known nationwide for its affinity for cycling.  Having such a high concentration of cycling enthusiasts provides a large population base of prospective customers.

4.1 Market Segmentation

BikeArt’s market can be divided into two groups, industrial art collectors and bicycle enthusiasts.  The industrial art collectors are characterized by people who collect art with an industrial edge.  Industrial art is typically characterized through the use of either technical looking structures or using parts that existed for another function for the basis of the art work.  Industrial art is the opposite of organic art.  Industrial is typically sharp angles, straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a bicyclist town, one of the hottest in the country. In a town of 130,000, there are three bicycle manufacturers, miles upon miles of bike lanes and independent bike paths.  If you drive around town you will see just about everyone on bicycles, from small children to grandmothers.  This culture will lend itself to BikeArt.  The bicycle enthusiasts are people that ride a lot and appreciate anything related to bicycles, including bicycle art pieces.

Bicycle art business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Industrial art collectors 8% 5,644 6,096 6,584 7,111 7,680 8.00%
Bicycling enthusiasts 10% 12,545 13,800 15,180 16,698 18,368 10.00%
Total 9.39% 18,189 19,896 21,764 23,809 26,048 9.39%

4.2 Target Market Segment Strategy

BikeArt’s market can be divided into two groups, industrial art collectors and bicycle enthusiasts.  The industrial art collectors are characterized by people who collect art with an industrial edge.  Industrial art is typically characterized through the use of either technical looking structures or using parts that existed for another function for the basis of the art work.  Industrial art is the opposite of organic art.  Industrial is typically sharp angles, straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a bicyclist town, one of the hottest in the country. In a town of 130,000, there are three bicycle manufacturers, miles upon miles of bike lanes and independent bike paths.  If you drive around town you will see just about everyone on bicycles, from small children to grandmothers.  This culture will lend itself to BikeArt.  The bicycle enthusiasts are people that ride a lot and appreciate anything related to bicycles, including bicycle art pieces.

4.3 Industry Analysis

BikeArt has several different competitors:

  • Other retailers in the mall. For people that are shopping at BikeArt for gifts for other people, they are also likely to visit other retailers in the mall.  While the other retailers are not direct competitors, their products will act as a substitute product.
  • Art galleries. These retailers specifically sell different types of artwork.  While some might specialize or carry a theme of industrial art, none of them sell bicycle-specific art.  People that are looking for a wide range of art work are more likely to go to these retailers.
  • Bicycle retailers. Some bicycle shops do carry gifts for cycling enthusiasts.  Sometimes this gift section will be art work based on bicycles.  Some of BikeArt’s artists also sell to bicycle shops so they might have identical pieces.  The bicycle retailers do not however, have the same selection as BikeArt.  As BikeArt grows, they will be able to leverage their vendors to make BikeArt the exclusive dealer for their bicycle art.
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Strategy and Implementation Summary

BikeArt will leverage its competitive advantage of being the only retailer that exclusively deals with bicycle artwork.  This is significant as Eugene is truly a bicycling town.  BikeArt will also be able to use its outstanding terms and conditions of their lease with Valley River Center that allows them to display their products not only on the kiosk itself but also on the surrounding floor space.  Since the mall gets lots of foot traffic all day, it is like having your own show room in the middle of the hallway of a crowded mall.  Most retailers could only dream of this arrangement.

5.1 Competitive Edge

BikeArt’s competitive edge is its specialization in bicycle art.  No one else concentrates on this specific type of art.  This is truly a competitive edge since BikeArt is based in Eugene, Biketown USA.  By only concentrating on this niche, prospective customers will correctly assume that BikeArt has the largest selection and are more likely to come to BikeArt as opposed to going to a bicycle shop looking for some art.

5.2 Sales Strategy

BikeArt’s sales strategy will be based on display and local/environmental support.  BikeArt will be able to leverage the outstanding terms of their lease with the mall that allows them to occupy seven feet of floor space in all directions around the kiosk.   This space will provide BikeArt with ample area to display larger pieces that they sell.  Because they are located in the mall, there will be sufficient walk-through traffic to notice all of BikeArt’s wares on display.  This will be the first step in the sale process.

The second step is emphasizing all of the work that is done by local artists and all of the art pieces are made out of recycled bicycle parts.  Eugene in general seems to be a very close knit supportive town of local residents, and Eugene shows their support of their own through the purchase of local products.  Additionally, all of the artwork is made out of recycled bicycle parts which will be emphasized as an environmentally sound practice, something that will be warmly received by Eugenians.

5.2.1 Sales Forecast

The first month will be used to set up the kiosk and get things underway.  During this month the part-time employees will be hired and trained.  Sales will begin slowly during this first month.  From the second month on, sales will steadily increase because there will be a steady flow of customers that pass by the kiosk.

Bicycle art business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Industrial art collectors $58,229 $115,475 $126,547
Bicycling enthusiasts $87,531 $178,745 $189,785
Total Sales $145,760 $294,220 $316,332
Direct Cost of Sales Year 1 Year 2 Year 3
Industrial art collectors $29,115 $57,738 $63,274
Bicycling enthusiasts $43,766 $89,373 $94,893
Subtotal Direct Cost of Sales $72,880 $147,110 $158,166

5.3 Milestones

BikeArt will have several milestones early on:

  1. Business plan completion. This will be done as a road map for the organization.  While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Set up the kiosk.
  3. First turnover of inventory.
  4. Revenue exceeding $25,000.
Milestones
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 ABC Marketing
Set up the kiosk 1/1/2001 2/1/2001 $0 ABC Department
First turnover of inventory 1/1/2001 ****** $0 ABC Department
Totals $0

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Management Summary

Steve Useitagyen received a joint degree in business administration and art design from the University of Portland. Throughout college Steve worked at a bicycle shop, initially as a mechanic, then moved up to sales, and then after college managed the shop for two years.

Steve knew at some point in his life that he needed to have his own business as he preferred to work for himself as opposed to someone else.  It took his experience as manager of the bike shop to gain the confidence that he could operate his own business.  With assurances of his wife’s support and her contribution of art work to sell, Steve undertook the task of writing a business plan for his dream.

6.1 Personnel Plan

Steve will begin the first two weeks setting up the kiosk and interviewing people.  During the second half of the first month Steve will hire and train three part-time people to operate the kiosk during the day.

From month two on, there will always be one of the part-time employees running the kiosk.  Steve will be taking care of all the financials, setting up vendor relations, and correcting any problems that BikeArt encounters. 

Personnel Plan
Year 1 Year 2 Year 3
Steve $36,000 $40,000 $44,000
Part-time employee $10,100 $10,800 $10,800
Part-time employee $10,100 $10,800 $10,800
Part-time employee $10,100 $10,800 $10,800
Total People 4 4 4
Total Payroll $66,300 $72,400 $76,400

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Financial Plan

The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions for BikeArt.

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 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

The Break-even Analysis indicates $15,212 is needed in monthly revenue to reach the break-even point.

Bicycle art business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $15,212
Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost $7,606

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $145,760 $294,220 $316,332
Direct Cost of Sales $72,880 $147,110 $158,166
Other $0 $0 $0
Total Cost of Sales $72,880 $147,110 $158,166
Gross Margin $72,880 $147,110 $158,166
Gross Margin % 50.00% 50.00% 50.00%
Expenses
Payroll $66,300 $72,400 $76,400
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $624 $624 $624
Leased Equipment $0 $0 $0
Utilities $1,200 $1,200 $1,200
Insurance $1,200 $1,200 $1,200
Rent $12,000 $12,000 $12,000
Payroll Taxes $9,945 $10,860 $11,460
Other $0 $0 $0
Total Operating Expenses $91,269 $98,284 $102,884
Profit Before Interest and Taxes ($18,389) $48,826 $55,282
EBITDA ($17,765) $49,450 $55,906
Interest Expense $1,745 $1,258 $703
Taxes Incurred $0 $11,892 $13,872
Net Profit ($20,134) $35,676 $40,706
Net Profit/Sales -13.81% 12.13% 12.87%

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Bicycle art business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $145,760 $294,220 $316,332
Subtotal Cash from Operations $145,760 $294,220 $316,332
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 $145,760 $294,220 $316,332
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $66,300 $72,400 $76,400
Bill Payments $97,938 $194,917 $200,247
Subtotal Spent on Operations $164,238 $267,317 $276,647
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 $4,783 $5,270 $5,825
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $169,021 $272,586 $282,472
Net Cash Flow ($23,261) $21,634 $33,860
Cash Balance $18,339 $39,973 $73,833

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $18,339 $39,973 $73,833
Inventory $12,204 $24,634 $26,485
Other Current Assets $0 $0 $0
Total Current Assets $30,543 $64,607 $100,319
Long-term Assets
Long-term Assets $3,100 $3,100 $3,100
Accumulated Depreciation $624 $1,248 $1,872
Total Long-term Assets $2,476 $1,852 $1,228
Total Assets $33,019 $66,459 $101,547
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $13,236 $16,270 $16,476
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $13,236 $16,270 $16,476
Long-term Liabilities $15,217 $9,947 $4,123
Total Liabilities $28,453 $26,217 $20,598
Paid-in Capital $25,000 $25,000 $25,000
Retained Earnings ($300) ($20,434) $15,242
Earnings ($20,134) $35,676 $40,706
Total Capital $4,566 $40,242 $80,948
Total Liabilities and Capital $33,019 $66,459 $101,547
Net Worth $4,566 $40,242 $80,948

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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
Sales
Industrial art collectors 0% $0 $1,245 $1,854 $2,354 $2,987 $4,254 $5,385 $6,458 $7,548 $8,254 $8,745 $9,145
Bicycling enthusiasts 0% $0 $2,245 $3,258 $4,214 $5,214 $7,245 $8,457 $9,365 $10,255 $11,547 $12,687 $13,044
Total Sales $0 $3,490 $5,112 $6,568 $8,201 $11,499 $13,842 $15,823 $17,803 $19,801 $21,432 $22,189
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
Industrial art collectors $0 $623 $927 $1,177 $1,494 $2,127 $2,693 $3,229 $3,774 $4,127 $4,373 $4,573
Bicycling enthusiasts $0 $1,123 $1,629 $2,107 $2,607 $3,623 $4,229 $4,683 $5,128 $5,774 $6,344 $6,522
Subtotal Direct Cost of Sales $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,912 $8,902 $9,901 $10,716 $11,095
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
Steve 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time employee 0% $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
Part-time employee 0% $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
Part-time employee 0% $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $3,600 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700

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% 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 $0 $3,490 $5,112 $6,568 $8,201 $11,499 $13,842 $15,823 $17,803 $19,801 $21,432 $22,189
Direct Cost of Sales $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,912 $8,902 $9,901 $10,716 $11,095
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,912 $8,902 $9,901 $10,716 $11,095
Gross Margin $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,912 $8,902 $9,901 $10,716 $11,095
Gross Margin % 0.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
Expenses
Payroll $3,600 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $52 $52 $52 $52 $52 $52 $52 $52 $52 $52 $52 $52
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $540 $855 $855 $855 $855 $855 $855 $855 $855 $855 $855 $855
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,392 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807
Profit Before Interest and Taxes ($5,392) ($6,062) ($5,251) ($4,523) ($3,707) ($2,058) ($886) $105 $1,095 $2,094 $2,909 $3,288
EBITDA ($5,340) ($6,010) ($5,199) ($4,471) ($3,655) ($2,006) ($834) $157 $1,147 $2,146 $2,961 $3,340
Interest Expense $163 $160 $157 $154 $151 $147 $144 $141 $137 $134 $130 $127
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($5,555) ($6,222) ($5,408) ($4,677) ($3,857) ($2,205) ($1,030) ($36) $957 $1,960 $2,779 $3,161
Net Profit/Sales 0.00% -178.29% -105.79% -71.21% -47.03% -19.17% -7.44% -0.23% 5.38% 9.90% 12.97% 14.24%

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 $0 $3,490 $5,112 $6,568 $8,201 $11,499 $13,842 $15,823 $17,803 $19,801 $21,432 $22,189
Subtotal Cash from Operations $0 $3,490 $5,112 $6,568 $8,201 $11,499 $13,842 $15,823 $17,803 $19,801 $21,432 $22,189
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 $0 $3,490 $5,112 $6,568 $8,201 $11,499 $13,842 $15,823 $17,803 $19,801 $21,432 $22,189
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 $3,600 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700
Bill Payments $63 $2,036 $5,872 $5,681 $6,324 $7,290 $9,787 $10,435 $11,229 $12,216 $13,208 $13,795
Subtotal Spent on Operations $3,663 $7,736 $11,572 $11,381 $12,024 $12,990 $15,487 $16,135 $16,929 $17,916 $18,908 $19,495
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 $381 $384 $387 $390 $393 $397 $400 $403 $407 $410 $414 $417
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 $4,044 $8,120 $11,959 $11,771 $12,417 $13,386 $15,887 $16,538 $17,336 $18,326 $19,322 $19,912
Net Cash Flow ($4,044) ($4,630) ($6,847) ($5,203) ($4,216) ($1,887) ($2,045) ($715) $467 $1,475 $2,110 $2,277
Cash Balance $37,556 $32,926 $26,079 $20,875 $16,659 $14,772 $12,727 $12,011 $12,478 $13,952 $16,062 $18,339
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 $41,600 $37,556 $32,926 $26,079 $20,875 $16,659 $14,772 $12,727 $12,011 $12,478 $13,952 $16,062 $18,339
Inventory $0 $0 $1,920 $2,812 $3,612 $4,511 $6,324 $7,613 $8,703 $9,792 $10,891 $11,788 $12,204
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $41,600 $37,556 $34,846 $28,891 $24,488 $21,170 $21,096 $20,340 $20,714 $22,270 $24,843 $27,850 $30,543
Long-term Assets
Long-term Assets $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100
Accumulated Depreciation $0 $52 $104 $156 $208 $260 $312 $364 $416 $468 $520 $572 $624
Total Long-term Assets $3,100 $3,048 $2,996 $2,944 $2,892 $2,840 $2,788 $2,736 $2,684 $2,632 $2,580 $2,528 $2,476
Total Assets $44,700 $40,604 $37,842 $31,835 $27,380 $24,010 $23,884 $23,076 $23,398 $24,902 $27,423 $30,378 $33,019
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 $1,840 $5,684 $5,472 $6,084 $6,964 $9,440 $10,062 $10,823 $11,777 $12,749 $13,338 $13,236
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 $1,840 $5,684 $5,472 $6,084 $6,964 $9,440 $10,062 $10,823 $11,777 $12,749 $13,338 $13,236
Long-term Liabilities $20,000 $19,619 $19,236 $18,849 $18,459 $18,065 $17,668 $17,268 $16,865 $16,458 $16,048 $15,634 $15,217
Total Liabilities $20,000 $21,460 $24,920 $24,320 $24,543 $25,029 $27,109 $27,330 $27,688 $28,235 $28,796 $28,972 $28,453
Paid-in Capital $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Retained Earnings ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300)
Earnings $0 ($5,555) ($11,778) ($17,186) ($21,863) ($25,720) ($27,924) ($28,954) ($28,990) ($28,033) ($26,073) ($23,295) ($20,134)
Total Capital $24,700 $19,145 $12,922 $7,514 $2,837 ($1,020) ($3,224) ($4,254) ($4,290) ($3,333) ($1,373) $1,405 $4,566
Total Liabilities and Capital $44,700 $40,604 $37,842 $31,835 $27,380 $24,010 $23,884 $23,076 $23,398 $24,902 $27,423 $30,378 $33,019
Net Worth $24,700 $19,145 $12,922 $7,514 $2,837 ($1,020) ($3,224) ($4,254) ($4,290) ($3,333) ($1,373) $1,405 $4,566

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