Cleaning Service Business Plan

Mother's House Cleaning Service

Financial Plan

Forecast

Key Assumptions

The sales forecast is based on the assumption that increased demand will occur at a steady pace. This is based on the assumption that a large part for our new clients after month two will be from word of mouth referrals. The logic is that we will incrementally gain customers as we continue to serve current customers. We will need a couple of visits before we can turn a new client into a referral service. All this will happen steadily and incrementally. This forecast is on the conservative side, it is possible that because we are superior to competing services that things really take off, however, it would not be prudent to take that aggressive of a forecast. It is always better to err on the side of caution.

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

Our start-up costs include equipment needed for a home-based business (to be detailed below), initial legal fees, marketing fees, cleaning equipment and supplies, uniforms, and signs for employee vehicles.

Sources of Funds

Sarah plans on investing 75000 at the start of business

Statements

Projected Profit & Loss

	2020	2021	2022
Revenue	$269,950	$332,000	$386,000

Direct Costs	$89,084	$109,560	$127,380

Gross Margin	$180,867	$222,440	$258,620
Gross Margin %	67%	67%	67%
Operating Expenses
Salaries & Wages	$144,000	$177,600	$177,600
Employee Related Expenses	$28,800	$35,520	$35,520
Sales and Marketing	$7,200	$7,200	$7,200
Utilities	$1,800	$1,800	$1,800
Insurance	$2,400	$2,400	$2,400
Startup Expense – Listed in Use of Funds	$4,000
Total Operating Expenses	$188,200	$224,520	$224,520

Operating Income	($7,334)	($2,080)	$34,101

Interest Incurred
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes	$0	$0	$1,234
Total Expenses	$277,284	$334,080	$353,134
Net Profit	($7,334)	($2,080)	$32,867
Net Profit/Sales	(3%)	(1%)	9%

Projected Balance Sheet

	2020	2021	2022
Cash	$31,558	$25,988	$61,074
Accounts Receivable	$0	$0	$0
Inventory
Other Current Assets
Total Current Assets	$31,558	$25,988	$61,074

Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets

Total Assets	$31,558	$25,988	$61,074

Accounts Payable	$5,261	$3,931	$4,510
Income Taxes Payable	$0	$0	$426
Sales Taxes Payable	$9,630	$7,470	$8,685
Short-Term Debt
Prepaid Revenue
Total Current Liabilities	$14,891	$11,401	$13,621
Long-Term Debt
Long-Term Liabilities

Total Liabilities	$14,891	$11,401	$13,621

Paid-In Capital	$24,000	$24,000	$24,000
Retained Earnings		($7,334)	($9,414)
Earnings	($7,334)	($2,080)	$32,866
Total Owner’s Equity	$16,667	$14,587	$47,453

Total Liabilities & Equity	$31,558	$25,988	$61,074

Projected Cash Flow Statement

	2020	2021	2022
Net Cash Flow from Operations
Net Profit	($7,334)	($2,080)	$32,867
Depreciation & Amortization
Change in Accounts Receivable	$0	$0	$0
Change in Inventory
Change in Accounts Payable	$5,261	($1,330)	$579
Change in Income Tax Payable	$0	$0	$426
Change in Sales Tax Payable	$9,630	($2,160)	$1,215
Change in Prepaid Revenue
Net Cash Flow from Operations	$7,558	($5,570)	$35,086
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received	$24,000
Dividends & Distributions
Change in Short-Term Debt
Change in Long-Term Debt
Net Cash from Financing	$24,000
Cash at Beginning of Period	$0	$31,558	$25,988
Net Change in Cash	$31,558	($5,570)	$35,086
Cash at End of Period	$31,558	$25,988	$61,074