Godsend Concierge Service
Financial Plan
The following sections will outline the important financial assumptions, key financial indictors, break-even analysis, profit and loss, cash flow, and balance sheet.
Important Assumptions
The following table highlights some of the important financial assumptions for GCS.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 25.42% | 25.00% | 25.42% |
| Other | 0 | 0 | 0 |
Break-even Analysis
The break-even analysis is based on the hourly rate charged to corporations, as they derive 90% of our business. The charge for individuals is slightly higher, but accounts for less than 10% of our projected revenue. This is in keeping with our conservative estimate philosophy.
| Break-even Analysis | |
| Monthly Revenue Break-even | $5,263 |
| Assumptions: | |
| Average Percent Variable Cost | 15% |
| Estimated Monthly Fixed Cost | $4,461 |
Projected Profit and Loss
The following table will indicate projected profit and loss.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $70,050 | $132,795 | $156,000 |
| Direct Cost of Sales | $10,671 | $30,996 | $32,996 |
| Other | $0 | $0 | $0 |
| Total Cost of Sales | $10,671 | $30,996 | $32,996 |
| Gross Margin | $59,379 | $101,799 | $123,004 |
| Gross Margin % | 84.77% | 76.66% | 78.85% |
| Expenses | |||
| Payroll | $39,461 | $82,992 | $98,000 |
| Sales and Marketing and Other Expenses | $2,000 | $1,750 | $1,750 |
| Depreciation | $0 | $0 | $0 |
| Depreciation | $492 | $492 | $0 |
| Additional payroll burdens- 7.5% | $2,295 | $4,424 | $5,924 |
| Comunication Equipment | $2,465 | $0 | $0 |
| Utilities | $0 | $0 | $0 |
| Insurance | $900 | $0 | $0 |
| Payroll Taxes | $5,919 | $12,449 | $14,700 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $53,532 | $102,107 | $120,374 |
| Profit Before Interest and Taxes | $5,847 | ($308) | $2,630 |
| EBITDA | $5,847 | ($308) | $2,630 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $1,337 | $0 | $668 |
| Net Profit | $4,510 | ($308) | $1,962 |
| Net Profit/Sales | 6.44% | -0.23% | 1.26% |
Projected Cash Flow
The following chart and table will indicate projected cash flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $42,030 | $79,677 | $93,600 |
| Cash from Receivables | $20,636 | $46,504 | $59,954 |
| Subtotal Cash from Operations | $62,666 | $126,181 | $153,554 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $2,000 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $1,255 | $7,000 | $0 |
| Subtotal Cash Received | $65,921 | $133,181 | $153,554 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $39,461 | $82,992 | $98,000 |
| Bill Payments | $21,893 | $50,179 | $55,551 |
| Subtotal Spent on Operations | $61,354 | $133,171 | $153,551 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $61,354 | $133,171 | $153,551 |
| Net Cash Flow | $4,567 | $10 | $3 |
| Cash Balance | $5,822 | $5,832 | $5,834 |
Projected Balance Sheet
The following table will indicate the projected balance sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $5,822 | $5,832 | $5,834 |
| Accounts Receivable | $7,384 | $13,999 | $16,445 |
| Other Current Assets | $2,500 | $2,500 | $2,500 |
| Total Current Assets | $15,706 | $22,331 | $24,779 |
| Long-term Assets | |||
| Long-term Assets | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 |
| Total Assets | $15,706 | $22,331 | $24,779 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $4,187 | $4,119 | $4,606 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $2,000 | $2,000 | $2,000 |
| Subtotal Current Liabilities | $6,187 | $6,119 | $6,606 |
| Long-term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $6,187 | $6,119 | $6,606 |
| Paid-in Capital | $8,755 | $15,755 | $15,755 |
| Retained Earnings | ($3,745) | $765 | $457 |
| Earnings | $4,510 | ($308) | $1,962 |
| Total Capital | $9,520 | $16,212 | $18,173 |
| Total Liabilities and Capital | $15,706 | $22,331 | $24,779 |
| Net Worth | $9,520 | $16,212 | $18,173 |
Business Ratios
The following table contains important business ratios for the personal services industry, as determined by the Standard Industry Classification (SIC) Index code 7299.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | n.a. | 89.57% | 17.47% | 17.90% |
| Percent of Total Assets | ||||
| Accounts Receivable | 47.02% | 62.69% | 66.37% | 11.10% |
| Other Current Assets | 15.92% | 11.20% | 10.09% | 37.10% |
| Total Current Assets | 100.00% | 100.00% | 100.00% | 52.80% |
| Long-term Assets | 0.00% | 0.00% | 0.00% | 47.20% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 39.39% | 27.40% | 26.66% | 33.90% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 28.00% |
| Total Liabilities | 39.39% | 27.40% | 26.66% | 61.90% |
| Net Worth | 60.61% | 72.60% | 73.34% | 38.10% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 84.77% | 76.66% | 78.85% | 0.00% |
| Selling, General & Administrative Expenses | 76.37% | 69.80% | 72.92% | 72.70% |
| Advertising Expenses | 0.21% | 0.00% | 0.00% | 2.20% |
| Profit Before Interest and Taxes | 8.35% | -0.23% | 1.69% | 4.00% |
| Main Ratios | ||||
| Current | 2.54 | 3.65 | 3.75 | 1.81 |
| Quick | 2.54 | 3.65 | 3.75 | 1.33 |
| Total Debt to Total Assets | 39.39% | 27.40% | 26.66% | 61.90% |
| Pre-tax Return on Net Worth | 61.42% | -1.90% | 14.47% | 6.30% |
| Pre-tax Return on Assets | 37.23% | -1.38% | 10.61% | 16.60% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 6.44% | -0.23% | 1.26% | n.a |
| Return on Equity | 47.37% | -1.90% | 10.79% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 3.79 | 3.79 | 3.79 | n.a |
| Collection Days | 56 | 73 | 89 | n.a |
| Accounts Payable Turnover | 6.23 | 12.17 | 12.17 | n.a |
| Payment Days | 30 | 30 | 28 | n.a |
| Total Asset Turnover | 4.46 | 5.95 | 6.30 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.65 | 0.38 | 0.36 | n.a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $9,520 | $16,212 | $18,173 | n.a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.22 | 0.17 | 0.16 | n.a |
| Current Debt/Total Assets | 39% | 27% | 27% | n.a |
| Acid Test | 1.35 | 1.36 | 1.26 | n.a |
| Sales/Net Worth | 7.36 | 8.19 | 8.58 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
By 
