Soapy Rides Business Plan
Financial Plan
Forecast
Key Assumptions
Our Key Assumptions:
1 – Everyone appreciates a clean car
2 – Research and experience show that the average household income in the area is 70,000 so they can afford a 10 to 15 dollar exterior car wash once a week without sacrificing their essentials.
3 – We assume current and long term loan rates will be 10% and tax rate will be 25%. We have planned our financing and our payables with this in mind. We will appreciate lower rates but will be profitable with higher rates in place
4 – We assume that we have relationships that will result in deals that will be mutually beneficial. Mark’s family has been in business in the area for years and have contacts that like and trust him. This will help us get going.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our startup Expenses are:
Legal $500
Stationery etc. $400
Brochures $450
Insurance $200
Rent $1,200
Research and Development $300
Expensed Equipment $4,100
Signs $700
Building Materials $1,200
Building Labor $1,000
total 10,050
Sources of Funds
Mark will invest $40,000 to start.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $155,360 | $201,225 | $243,230 |
| Direct Costs | $15,536 | $20,123 | $24,323 |
| Gross Margin | $139,824 | $181,103 | $218,907 |
| Gross Margin % | 90% | 90% | 90% |
| Operating Expenses | |||
| Salaries & Wages | $79,200 | $128,520 | $147,321 |
| Employee Related Expenses | $15,840 | $25,704 | $29,464 |
| Rent | $4,800 | $4,800 | $4,800 |
| Sales and Marketing | $6,000 | $6,000 | $6,000 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Startup Expenses – Listed in Use of Funds | $10,050 | ||
| Total Operating Expenses | $117,690 | $166,824 | $189,385 |
| Operating Income | $22,134 | $14,279 | $29,521 |
| Interest Incurred | |||
| Depreciation and Amortization | $2,100 | $2,100 | $2,100 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $135,326 | $189,047 | $215,808 |
| Net Profit | $20,034 | $12,179 | $27,421 |
| Net Profit/Sales | 13% | 6% | 11% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $41,134 | $55,413 | $84,934 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $41,134 | $55,413 | $84,934 |
| Long-Term Assets | $21,000 | $21,000 | $21,000 |
| Accumulated Depreciation | ($2,100) | ($4,200) | ($6,300) |
| Total Long-Term Assets | $18,900 | $16,800 | $14,700 |
| Total Assets | $60,034 | $72,213 | $99,634 |
| Accounts Payable | $0 | $0 | $0 |
| Income Taxes Payable | $0 | $0 | $0 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $0 | $0 | $0 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $0 | $0 | $0 |
| Paid-In Capital | $40,000 | $40,000 | $40,000 |
| Retained Earnings | $20,034 | $32,213 | |
| Earnings | $20,034 | $12,179 | $27,422 |
| Total Owner’s Equity | $60,034 | $72,213 | $99,634 |
| Total Liabilities & Equity | $60,034 | $72,213 | $99,634 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $20,034 | $12,179 | $27,421 |
| Depreciation & Amortization | $2,100 | $2,100 | $2,100 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| 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 | $22,134 | $14,279 | $29,522 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($21,000) | ||
| Net Cash from Investing | ($21,000) | ||
| Investments Received | $40,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $40,000 | ||
| Cash at Beginning of Period | $0 | $41,134 | $55,413 |
| Net Change in Cash | $41,134 | $14,279 | $29,522 |
| Cash at End of Period | $41,134 | $55,413 | $84,934 |
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