Clothing Manufacturer Business Plan

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New Look, Inc.

Financial Plan

Forecast

Key Assumptions

Key Assumptions: 

– There are fashion forward men in the area

– These men have money they could spend on luxuries if they choose 

– These men are looking for high quality and unique clothes. They appreciate brands over everything else. 

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

The New Look strategy is to aggressively develop and market a full range collection to consumers. The company intends to market its line as an alternative to existing clothing lines and differentiate itself through its marketing strategies, exclusiveness, and brand awareness. New Look intends to build on its core portfolio of products and overcome any obstacles by using the company’s expertise in the clothing industry.

Sources of Funds

We believe we will be able to finance our growth through careful management of existing streams of income and working capital generated by the business. 

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $2,068,030 $2,850,000 $3,550,000
Operating Expenses
Salaries & Wages $471,800 $606,528 $737,217
Employee Related Expenses $94,360 $121,306 $147,443
Marketing Expense $803,380 $1,060,000 $1,300,000
Communications $26,400 $26,400 $26,400
Client Relations $24,000 $24,000 $24,000
Rent $12,000 $12,000 $12,000
Utilities $8,400 $8,400 $8,400
Other G&A expense $120,507 $159,000 $195,000
Amortization of Other Current Assets $0 $0 $0
Interest Incurred $52,076 $36,078 $32,602
Depreciation and Amortization $81,095 $100,040 $105,852
Gain or Loss from Sale of Assets
Income Taxes $93,503 $174,062 $240,271
Total Expenses $3,736,391 $4,777,813 $5,779,186
Net Profit $280,509 $522,187 $720,814

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash $445,000 $223,231 $691,135 $1,414,701
Accounts Receivable $69,031 $192,521 $214,650 $263,250
Inventory $545,000 $612,500 $737,500 $737,501
Other Current Assets $105,000 $105,000 $105,000 $105,000
Total Current Assets $1,164,031 $1,133,252 $1,748,285 $2,520,451
Long-Term Assets $525,000 $862,600 $912,600 $977,600
Accumulated Depreciation ($80,000) ($161,095) ($261,135) ($366,987)
Total Long-Term Assets $445,000 $701,505 $651,465 $610,613
Accounts Payable $312,023 $545,687 $635,970 $677,370
Income Taxes Payable $5,045 $33,944 $43,478 $59,991
Sales Taxes Payable $9,835 $95,072 $106,000 $130,000
Short-Term Debt $888,271 $578,475 $608,070 $613,065
Prepaid Revenue
Total Current Liabilities $1,215,174 $1,253,177 $1,393,518 $1,480,427
Long-Term Debt $266,729 $173,943 $76,409 $0
Long-Term Liabilities $266,729 $173,943 $76,409 $0
Paid-In Capital $70,000 $70,000 $70,000 $70,000
Retained Earnings $57,128 $57,128 $337,637 $859,824
Earnings $280,509 $522,187 $720,814

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $280,509 $522,187 $720,814
Depreciation & Amortization $81,095 $100,040 $105,852
Change in Accounts Receivable ($123,490) ($22,129) ($48,600)
Change in Inventory ($67,500) ($125,000) ($1)
Change in Accounts Payable $233,664 $90,283 $41,400
Change in Income Tax Payable $28,899 $9,534 $16,513
Change in Sales Tax Payable $85,237 $10,928 $24,000
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold ($337,600) ($50,000) ($65,000)
Investments Received
Dividends & Distributions
Change in Short-Term Debt ($309,796) $29,596 $4,995
Change in Long-Term Debt ($92,787) ($97,534) ($76,409)
Cash at Beginning of Period $445,000 $223,231 $691,135
Net Change in Cash ($221,769) $467,904 $723,565
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