Clothing E-Commerce Site Business Plan

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Liquid Culture

Financial Plan

Forecast

Key Assumptions

We assume a successful ramp-up. Yes, sales forecast is probably too optimistic. But we believe there is a real market window, real need, and the climate is right. 

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Liquid Culture’s start-up costs consists mostly of design and marketing. Liquid Culture has $260,000 in investments and $200,000 in a short-term loan.

To Be more specific, start-up expenses are listed as:

Legal $1,000

Office expenses $500

Consultants $5,000

Rent $2,000

Leased Office Equipment $10,000

Computer Equipment/Software $30,000

Website $10,000

Totaling : $58,500

We will also be purchasing $401,500 of long term assets 

 

Sources of Funds

We will be getting $460,000, which includes: 

$130,000 from founder 1

130,000 from founder 2

Short term loan of $200,000

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $1,236,900 $1,271,100 $1,308,150
Operating Expenses
Salaries & Wages $616,800 $629,136 $641,719
Employee Related Expenses $123,360 $125,827 $128,344
Rent $24,000 $24,000 $24,000
Utilities $6,000 $6,000 $6,000
Marketing $325,500 $334,500 $344,250
Sales Expense $21,600 $21,600 $21,600
Interest Incurred $6,560
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes $16,962 $19,506 $21,335
Total Expenses $2,073,882 $2,119,469 $2,174,098
Net Profit $96,118 $110,531 $120,902

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash $401,500 $382,497 $436,071 $558,857
Accounts Receivable $81,000 $40,140 $41,310
Inventory $159,817 $164,475 $164,475
Other Current Assets
Total Current Assets $401,500 $623,314 $640,686 $764,642
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Accounts Payable $224,733 $183,060 $184,360
Income Taxes Payable $16,962 $4,877 $5,331
Sales Taxes Payable $84,000 $44,600 $45,900
Short-Term Debt $200,000
Prepaid Revenue
Total Current Liabilities $200,000 $325,695 $232,537 $235,591
Long-Term Debt $0 $0 $0 $0
Long-Term Liabilities $0 $0 $0 $0
Paid-In Capital $260,000 $260,000 $260,000 $260,000
Retained Earnings ($58,500) ($58,500) $37,618 $148,149
Earnings $96,118 $110,531 $120,902

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $96,118 $110,531 $120,902
Depreciation & Amortization
Change in Accounts Receivable ($81,000) $40,860 ($1,170)
Change in Inventory ($159,817) ($4,658) $0
Change in Accounts Payable $224,733 ($41,673) $1,300
Change in Income Tax Payable $16,962 ($12,085) $454
Change in Sales Tax Payable $84,000 ($39,400) $1,300
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt ($200,000)
Change in Long-Term Debt $0 $0 $0
Cash at Beginning of Period $401,500 $382,497 $436,071
Net Change in Cash ($19,003) $53,574 $122,786
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