MillenniumMart
Financial Plan
Forecast
Key Assumptions
Our early projections show more profit than is realistic. We expect to revise regularly to manage cash flow based on realistic expectations for the short term, not the long term projections.
The advantage of handling projections this way is that it allows a cushion for the real expenses as they occur. We will be less profitable, but with enough resources to grow and prosper.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Start-up Expenses
Legal $2,400
Pre-sale advertising/marketing $8,000
Land location and finders fee $8,000
Consultants $4,000
Insurance $1,780
Rent $12,000
Marketing / Promotion – 10000
Expensed equipment $50,0000
Research and Development $10,000
Other: $2000
TOTAL START-UP EXPENSES $96,180
Sources of Funds
We will be getting $268,000 from:
Family and Friends: $158000
Martin-Bower management: $110,000
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $2,525,200 | $2,714,000 | $2,970,000 |
| Direct Costs | $1,524,563 | $1,631,740 | $1,789,020 |
| Gross Margin | $1,000,637 | $1,082,260 | $1,180,980 |
| Gross Margin % | 40% | 40% | 40% |
| Operating Expenses | |||
| Salaries & Wages | $216,000 | $257,040 | $299,633 |
| Employee Related Expenses | $43,200 | $51,408 | $59,927 |
| Leased Equipment | $96,000 | ||
| Rent | $84,000 | $84,000 | $84,000 |
| Utilities | $28,800 | $28,800 | $28,800 |
| Accounting / Bookkeeping | $21,800 | $30,000 | $30,000 |
| Insurance | $7,200 | $7,200 | $7,200 |
| Marketing / Promotions | $20,000 | $30,000 | $30,000 |
| Total Operating Expenses | $517,000 | $488,448 | $539,560 |
| Operating Income | $483,637 | $593,812 | $641,420 |
| Interest Incurred | |||
| Depreciation and Amortization | $4,800 | $14,800 | $14,800 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $2,046,363 | $2,134,988 | $2,343,380 |
| Net Profit | $478,837 | $579,012 | $626,620 |
| Net Profit/Sales | 19% | 21% | 21% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $89,820 | $453,799 | $729,812 | $1,370,806 |
| Accounts Receivable | $7,142 | $4,523 | $4,950 | |
| Inventory | $10,000 | $135,978 | $149,085 | $149,085 |
| Other Current Assets | ||||
| Total Current Assets | $99,820 | $596,919 | $883,420 | $1,524,841 |
| Long-Term Assets | $72,000 | $72,000 | $222,000 | $222,000 |
| Accumulated Depreciation | ($4,800) | ($19,600) | ($34,400) | |
| Total Long-Term Assets | $72,000 | $67,200 | $202,400 | $187,600 |
| Total Assets | $171,820 | $664,119 | $1,085,820 | $1,712,441 |
| Accounts Payable | $8,000 | $21,462 | $22,151 | $22,151 |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $8,000 | $21,462 | $22,151 | $22,151 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $8,000 | $21,462 | $22,151 | $22,151 |
| Paid-In Capital | $260,000 | $260,000 | $260,000 | $260,000 |
| Retained Earnings | ($96,180) | ($96,180) | $224,657 | $803,669 |
| Earnings | $478,837 | $579,012 | $626,620 | |
| Total Owner’s Equity | $163,820 | $642,657 | $1,063,669 | $1,690,289 |
| Total Liabilities & Equity | $171,820 | $664,119 | $1,085,820 | $1,712,441 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $478,837 | $579,012 | $626,620 |
| Depreciation & Amortization | $4,800 | $14,800 | $14,800 |
| Change in Accounts Receivable | ($7,142) | $2,619 | ($427) |
| Change in Inventory | ($125,978) | ($13,107) | $0 |
| Change in Accounts Payable | $13,462 | $689 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $363,979 | $584,013 | $640,994 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($150,000) | ||
| Net Cash from Investing | ($150,000) | ||
| Investments Received | |||
| Dividends & Distributions | ($158,000) | ||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | ($158,000) | ||
| Cash at Beginning of Period | $89,820 | $453,799 | $729,812 |
| Net Change in Cash | $363,979 | $276,013 | $640,994 |
| Cash at End of Period | $453,799 | $729,812 | $1,370,806 |
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