Like New Carpet Cleaners
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 | ||
| Unit Sales | |||||||||||||
| Carpet Cleaning | 60 | 74 | 92 | 114 | 142 | 176 | 218 | 270 | 335 | 416 | 516 | 639 | |
| Furniture Cleaning | 40 | 50 | 64 | 80 | 101 | 127 | 160 | 202 | 254 | 320 | 404 | 508 | |
| Intensive Spot Treatment | 60 | 74 | 92 | 114 | 142 | 176 | 218 | 270 | 335 | 416 | 516 | 639 | |
| Area Rugs | 20 | 26 | 34 | 44 | 57 | 74 | 96 | 125 | 163 | 212 | 276 | 358 | |
| Other Services | 20 | 26 | 34 | 44 | 57 | 74 | 96 | 125 | 163 | 212 | 276 | 358 | |
| Total Unit Sales | 200 | 251 | 316 | 397 | 499 | 627 | 789 | 994 | 1,251 | 1,576 | 1,986 | 2,504 | |
| Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Carpet Cleaning | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | |
| Furniture Cleaning | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | |
| Intensive Spot Treatment | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | |
| Area Rugs | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | |
| Other Services | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | |
| Sales | |||||||||||||
| Carpet Cleaning | $6,000 | $7,440 | $9,226 | $11,440 | $14,186 | $17,591 | $21,813 | $27,048 | $33,540 | $41,590 | $51,572 | $63,949 | |
| Furniture Cleaning | $1,000 | $1,260 | $1,588 | $2,001 | $2,521 | $3,176 | $4,002 | $5,043 | $6,354 | $8,006 | $10,088 | $12,711 | |
| Intensive Spot Treatment | $3,000 | $3,720 | $4,613 | $5,720 | $7,093 | $8,795 | $10,906 | $13,523 | $16,769 | $20,794 | $25,785 | $31,973 | |
| Area Rugs | $500 | $650 | $845 | $1,098 | $1,427 | $1,855 | $2,412 | $3,136 | $4,077 | $5,300 | $6,890 | $8,957 | |
| Other Services | $500 | $650 | $845 | $1,098 | $1,427 | $1,855 | $2,412 | $3,136 | $4,077 | $5,300 | $6,890 | $8,957 | |
| Total Sales | $11,000 | $13,720 | $17,117 | $21,357 | $26,654 | $33,272 | $41,545 | $51,886 | $64,817 | $80,990 | $101,225 | $126,547 | |
| Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Carpet Cleaning | 30.00% | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 |
| Furniture Cleaning | 30.00% | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 |
| Intensive Spot Treatment | 45.00% | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 | $22.50 |
| Area Rugs | 39.00% | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 | $9.75 |
| Other Services | 45.00% | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 | $11.25 |
| Direct Cost of Sales | |||||||||||||
| Carpet Cleaning | $1,800 | $2,232 | $2,768 | $3,432 | $4,256 | $5,277 | $6,544 | $8,114 | $10,062 | $12,477 | $15,472 | $19,185 | |
| Furniture Cleaning | $300 | $378 | $476 | $600 | $756 | $953 | $1,201 | $1,513 | $1,906 | $2,402 | $3,026 | $3,813 | |
| Intensive Spot Treatment | $1,350 | $1,674 | $2,076 | $2,574 | $3,192 | $3,958 | $4,908 | $6,085 | $7,546 | $9,357 | $11,603 | $14,388 | |
| Area Rugs | $195 | $254 | $330 | $428 | $557 | $723 | $941 | $1,223 | $1,590 | $2,067 | $2,687 | $3,493 | |
| Other Services | $225 | $293 | $380 | $494 | $642 | $835 | $1,085 | $1,411 | $1,835 | $2,385 | $3,101 | $4,031 | |
| Subtotal Direct Cost of Sales | $3,870 | $4,830 | $6,030 | $7,529 | $9,403 | $11,746 | $14,678 | $18,347 | $22,939 | $28,688 | $35,889 | $44,910 | |
| 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 | ||
| CEO | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| COO | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Administrative Assistant/ Manager | $0 | $0 | $0 | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Administrative Assistant 2 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total People | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | |
| 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 | $11,000 | $13,720 | $17,117 | $21,357 | $26,654 | $33,272 | $41,545 | $51,886 | $64,817 | $80,990 | $101,225 | $126,547 | |
| Direct Cost of Sales | $3,870 | $4,830 | $6,030 | $7,529 | $9,403 | $11,746 | $14,678 | $18,347 | $22,939 | $28,688 | $35,889 | $44,910 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $3,870 | $4,830 | $6,030 | $7,529 | $9,403 | $11,746 | $14,678 | $18,347 | $22,939 | $28,688 | $35,889 | $44,910 | |
| Gross Margin | $7,130 | $8,890 | $11,087 | $13,828 | $17,251 | $21,526 | $26,867 | $33,539 | $41,878 | $52,302 | $65,336 | $81,637 | |
| Gross Margin % | 64.82% | 64.80% | 64.77% | 64.75% | 64.72% | 64.70% | 64.67% | 64.64% | 64.61% | 64.58% | 64.55% | 64.51% | |
| Expenses | |||||||||||||
| Payroll | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | |
| Marketing/Promotion | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
| Depreciation | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $500 | $500 | $500 | $500 | $500 | $500 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
| Utilities | $50 | $50 | $50 | $50 | $50 | $50 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Payroll Taxes | 15% | $2,081 | $2,225 | $2,404 | $2,629 | $2,910 | $3,262 | $4,152 | $4,702 | $5,391 | $6,253 | $7,333 | $8,686 |
| Website Maintenance/Hosting | 15% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
| Other | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Total Operating Expenses | $19,331 | $19,475 | $19,654 | $19,879 | $20,160 | $20,512 | $25,402 | $25,952 | $26,641 | $27,503 | $28,583 | $29,936 | |
| Profit Before Interest and Taxes | ($12,201) | ($10,585) | ($8,567) | ($6,051) | ($2,909) | $1,014 | $1,465 | $7,587 | $15,237 | $24,799 | $36,753 | $51,701 | |
| EBITDA | ($11,701) | ($10,085) | ($8,067) | ($5,551) | ($2,409) | $1,514 | $1,965 | $8,087 | $15,737 | $25,299 | $37,253 | $52,201 | |
| Interest Expense | $115 | $104 | $94 | $83 | $73 | $63 | $52 | $42 | $31 | $21 | $10 | $0 | |
| Taxes Incurred | ($3,695) | ($3,207) | ($2,598) | ($1,840) | ($895) | $285 | $424 | $2,264 | $4,562 | $7,433 | $11,023 | $15,510 | |
| Net Profit | ($8,621) | ($7,482) | ($6,063) | ($4,294) | ($2,087) | $666 | $989 | $5,282 | $10,644 | $17,344 | $25,720 | $36,191 | |
| Net Profit/Sales | -78.37% | -54.53% | -35.42% | -20.11% | -7.83% | 2.00% | 2.38% | 10.18% | 16.42% | 21.42% | 25.41% | 28.60% | |
| 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 | $11,000 | $13,720 | $17,117 | $21,357 | $26,654 | $33,272 | $41,545 | $51,886 | $64,817 | $80,990 | $101,225 | $126,547 | |
| Subtotal Cash from Operations | $11,000 | $13,720 | $17,117 | $21,357 | $26,654 | $33,272 | $41,545 | $51,886 | $64,817 | $80,990 | $101,225 | $126,547 | |
| 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 | $11,000 | $13,720 | $17,117 | $21,357 | $26,654 | $33,272 | $41,545 | $51,886 | $64,817 | $80,990 | $101,225 | $126,547 | |
| 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 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | |
| Bill Payments | $5,304 | $9,173 | $10,768 | $12,762 | $15,254 | $18,370 | $22,271 | $27,258 | $33,356 | $40,989 | $50,541 | $62,500 | |
| Subtotal Spent on Operations | $15,304 | $19,173 | $20,768 | $22,762 | $25,254 | $28,370 | $35,271 | $40,258 | $46,356 | $53,989 | $63,541 | $75,500 | |
| 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 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | |
| 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 | $3,000 | $0 | $15,000 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $16,554 | $20,423 | $22,018 | $24,012 | $26,504 | $29,620 | $39,521 | $41,508 | $62,606 | $55,239 | $64,791 | $76,750 | |
| Net Cash Flow | ($5,554) | ($6,703) | ($4,901) | ($2,655) | $150 | $3,652 | $2,024 | $10,378 | $2,211 | $25,751 | $36,434 | $49,797 | |
| Cash Balance | $24,446 | $17,743 | $12,842 | $10,187 | $10,337 | $13,988 | $16,013 | $26,391 | $28,601 | $54,353 | $90,787 | $140,584 | |
| 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 | $30,000 | $24,446 | $17,743 | $12,842 | $10,187 | $10,337 | $13,988 | $16,013 | $26,391 | $28,601 | $54,353 | $90,787 | $140,584 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $30,000 | $24,446 | $17,743 | $12,842 | $10,187 | $10,337 | $13,988 | $16,013 | $26,391 | $28,601 | $54,353 | $90,787 | $140,584 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $33,000 | $33,000 | $48,000 | $48,000 | $48,000 | $48,000 |
| Accumulated Depreciation | $0 | $500 | $1,000 | $1,500 | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $6,000 |
| Total Long-term Assets | $30,000 | $29,500 | $29,000 | $28,500 | $28,000 | $27,500 | $27,000 | $29,500 | $29,000 | $43,500 | $43,000 | $42,500 | $42,000 |
| Total Assets | $60,000 | $53,946 | $46,743 | $41,342 | $38,187 | $37,837 | $40,988 | $45,513 | $55,391 | $72,101 | $97,353 | $133,287 | $182,584 |
| 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 | $5,000 | $8,817 | $10,345 | $12,257 | $14,646 | $17,633 | $21,369 | $26,154 | $32,001 | $39,317 | $48,474 | $59,938 | $74,295 |
| 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 | $5,000 | $8,817 | $10,345 | $12,257 | $14,646 | $17,633 | $21,369 | $26,154 | $32,001 | $39,317 | $48,474 | $59,938 | $74,295 |
| Long-term Liabilities | $15,000 | $13,750 | $12,500 | $11,250 | $10,000 | $8,750 | $7,500 | $6,250 | $5,000 | $3,750 | $2,500 | $1,250 | $0 |
| Total Liabilities | $20,000 | $22,567 | $22,845 | $23,507 | $24,646 | $26,383 | $28,869 | $32,404 | $37,001 | $43,067 | $50,974 | $61,188 | $74,295 |
| Paid-in Capital | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 | $77,500 |
| Retained Earnings | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) | ($37,500) |
| Earnings | $0 | ($8,621) | ($16,103) | ($22,165) | ($26,459) | ($28,547) | ($27,881) | ($26,892) | ($21,610) | ($10,966) | $6,379 | $32,099 | $68,289 |
| Total Capital | $40,000 | $31,379 | $23,897 | $17,835 | $13,541 | $11,453 | $12,119 | $13,108 | $18,390 | $29,034 | $46,379 | $72,099 | $108,289 |
| Total Liabilities and Capital | $60,000 | $53,946 | $46,743 | $41,342 | $38,187 | $37,837 | $40,988 | $45,513 | $55,391 | $72,101 | $97,353 | $133,287 | $182,584 |
| Net Worth | $40,000 | $31,379 | $23,897 | $17,835 | $13,541 | $11,453 | $12,119 | $13,108 | $18,390 | $29,034 | $46,379 | $72,099 | $108,289 |
