Ideal Business Support Services
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 | |||||||||||||
| Exclusive agents | 0% | $0 | $1,001 | $1,204 | $2,145 | $3,454 | $3,658 | $4,258 | $4,987 | $6,254 | $6,985 | $8,125 | $8,978 |
| Insurance brokers | 0% | $0 | $1,325 | $1,545 | $2,785 | $3,852 | $4,141 | $4,787 | $6,235 | $7,458 | $8,325 | $9,214 | $10,145 |
| Total Sales | $0 | $2,326 | $2,749 | $4,930 | $7,306 | $7,799 | $9,045 | $11,222 | $13,712 | $15,310 | $17,339 | $19,123 | |
| 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 | |
| Exclusive agents | $0 | $150 | $181 | $322 | $518 | $549 | $639 | $748 | $938 | $1,048 | $1,219 | $1,347 | |
| Insurance brokers | $0 | $199 | $232 | $418 | $578 | $621 | $718 | $935 | $1,119 | $1,249 | $1,382 | $1,522 | |
| Subtotal Direct Cost of Sales | $0 | $349 | $412 | $740 | $1,096 | $1,170 | $1,357 | $1,683 | $2,057 | $2,297 | $2,601 | $2,868 | |
| 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 | ||
| Sarah | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Support staff | 0% | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Support staff | 0% | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Support staff | 0% | $0 | $0 | $0 | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Support staff | 0% | $0 | $0 | $0 | $0 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 | $1,920 |
| Total People | 1 | 3 | 3 | 3 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
| Total Payroll | $2,500 | $6,340 | $6,340 | $6,340 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | |
| 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 | $2,326 | $2,749 | $4,930 | $7,306 | $7,799 | $9,045 | $11,222 | $13,712 | $15,310 | $17,339 | $19,123 | |
| Direct Cost of Sales | $0 | $349 | $412 | $740 | $1,096 | $1,170 | $1,357 | $1,683 | $2,057 | $2,297 | $2,601 | $2,868 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $349 | $412 | $740 | $1,096 | $1,170 | $1,357 | $1,683 | $2,057 | $2,297 | $2,601 | $2,868 | |
| Gross Margin | $0 | $1,977 | $2,337 | $4,191 | $6,210 | $6,629 | $7,688 | $9,539 | $11,655 | $13,014 | $14,738 | $16,255 | |
| Gross Margin % | 0.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | |
| Expenses | |||||||||||||
| Payroll | $2,500 | $6,340 | $6,340 | $6,340 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | |
| Sales and Marketing and Other Expenses | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Depreciation | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | $236 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
| Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Rent | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
| Payroll Taxes | 15% | $375 | $951 | $951 | $951 | $1,527 | $1,527 | $1,527 | $1,527 | $1,527 | $1,527 | $1,527 | $1,527 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $4,436 | $8,852 | $8,852 | $8,852 | $13,268 | $13,268 | $13,268 | $13,268 | $13,268 | $13,268 | $13,268 | $13,268 | |
| Profit Before Interest and Taxes | ($4,436) | ($6,875) | ($6,515) | ($4,662) | ($7,058) | ($6,639) | ($5,580) | ($3,729) | ($1,613) | ($255) | $1,470 | $2,987 | |
| EBITDA | ($4,200) | ($6,639) | ($6,279) | ($4,426) | ($6,822) | ($6,403) | ($5,344) | ($3,493) | ($1,377) | ($19) | $1,706 | $3,223 | |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Profit | ($4,436) | ($6,875) | ($6,515) | ($4,662) | ($7,058) | ($6,639) | ($5,580) | ($3,729) | ($1,613) | ($255) | $1,470 | $2,987 | |
| Net Profit/Sales | 0.00% | -295.57% | -237.01% | -94.55% | -96.60% | -85.12% | -61.69% | -33.23% | -11.76% | -1.66% | 8.48% | 15.62% | |
| 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 | $814 | $962 | $1,726 | $2,557 | $2,730 | $3,166 | $3,928 | $4,799 | $5,359 | $6,069 | $6,693 | |
| Cash from Receivables | $0 | $0 | $50 | $1,521 | $1,834 | $3,256 | $4,760 | $5,096 | $5,926 | $7,348 | $8,947 | $9,995 | |
| Subtotal Cash from Operations | $0 | $814 | $1,013 | $3,247 | $4,391 | $5,986 | $7,925 | $9,024 | $10,726 | $12,707 | $15,016 | $16,689 | |
| 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 | $3,000 | $0 | $0 | |
| Subtotal Cash Received | $0 | $814 | $1,013 | $3,247 | $4,391 | $5,986 | $7,925 | $9,024 | $10,726 | $15,707 | $15,016 | $16,689 | |
| 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 | $2,500 | $6,340 | $6,340 | $6,340 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | $10,180 | |
| Bill Payments | $57 | $1,731 | $2,627 | $2,699 | $3,047 | $3,950 | $4,028 | $4,220 | $4,548 | $4,917 | $5,159 | $5,462 | |
| Subtotal Spent on Operations | $2,557 | $8,071 | $8,967 | $9,039 | $13,227 | $14,130 | $14,208 | $14,400 | $14,728 | $15,097 | $15,339 | $15,642 | |
| 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 | $2,557 | $8,071 | $8,967 | $9,039 | $13,227 | $14,130 | $14,208 | $14,400 | $14,728 | $15,097 | $15,339 | $15,642 | |
| Net Cash Flow | ($2,557) | ($7,257) | ($7,954) | ($5,793) | ($8,835) | ($8,145) | ($6,283) | ($5,376) | ($4,002) | $610 | ($323) | $1,047 | |
| Cash Balance | $54,843 | $47,587 | $39,632 | $33,839 | $25,004 | $16,859 | $10,577 | $5,201 | $1,199 | $1,809 | $1,486 | $2,533 | |
| 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 | $57,400 | $54,843 | $47,587 | $39,632 | $33,839 | $25,004 | $16,859 | $10,577 | $5,201 | $1,199 | $1,809 | $1,486 | $2,533 |
| Accounts Receivable | $0 | $0 | $1,512 | $3,248 | $4,932 | $7,847 | $9,660 | $10,780 | $12,978 | $15,964 | $18,567 | $20,890 | $23,325 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $57,400 | $54,843 | $49,099 | $42,880 | $38,771 | $32,851 | $26,519 | $21,356 | $18,179 | $17,163 | $20,376 | $22,376 | $25,858 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 | $8,500 |
| Accumulated Depreciation | $0 | $236 | $472 | $708 | $944 | $1,180 | $1,416 | $1,652 | $1,888 | $2,124 | $2,360 | $2,596 | $2,832 |
| Total Long-term Assets | $8,500 | $8,264 | $8,028 | $7,792 | $7,556 | $7,320 | $7,084 | $6,848 | $6,612 | $6,376 | $6,140 | $5,904 | $5,668 |
| Total Assets | $65,900 | $63,107 | $57,127 | $50,672 | $46,327 | $40,171 | $33,603 | $28,204 | $24,791 | $23,539 | $26,516 | $28,280 | $31,526 |
| 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 | $1,643 | $2,537 | $2,599 | $2,915 | $3,816 | $3,888 | $4,068 | $4,384 | $4,745 | $4,977 | $5,271 | $5,530 |
| 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 | $1,643 | $2,537 | $2,599 | $2,915 | $3,816 | $3,888 | $4,068 | $4,384 | $4,745 | $4,977 | $5,271 | $5,530 |
| Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $0 | $1,643 | $2,537 | $2,599 | $2,915 | $3,816 | $3,888 | $4,068 | $4,384 | $4,745 | $4,977 | $5,271 | $5,530 |
| Paid-in Capital | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $67,000 | $70,000 | $70,000 | $70,000 |
| Retained Earnings | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) |
| Earnings | $0 | ($4,436) | ($11,311) | ($17,826) | ($22,488) | ($29,546) | ($36,185) | ($41,764) | ($45,494) | ($47,106) | ($47,361) | ($45,891) | ($42,904) |
| Total Capital | $65,900 | $61,464 | $54,589 | $48,074 | $43,412 | $36,354 | $29,716 | $24,136 | $20,406 | $18,794 | $21,539 | $23,009 | $25,996 |
| Total Liabilities and Capital | $65,900 | $63,107 | $57,127 | $50,672 | $46,327 | $40,171 | $33,603 | $28,204 | $24,791 | $23,539 | $26,516 | $28,280 | $31,526 |
| Net Worth | $65,900 | $61,464 | $54,589 | $48,074 | $43,412 | $36,354 | $29,716 | $24,136 | $20,406 | $18,794 | $21,539 | $23,009 | $25,996 |
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