- Growth will be moderate, cash flows steady.
- Marketing will be minimal, since Luna's will rely on convenient location and will not buy any advertising.
- The company will use tight inventory controls to manage costs.
- The company will gain higher grow margins than industry averages, since it is targeting women and professionals.
7.1 Important AssumptionsLuna's does not sell anything on credit. The personnel burden is very low because Luna's will employee only part time staff in addition to the owners salaries. Benefits are not paid to part-timers.
7.2 Break-even Analysis
The following table and chart show the Break-even Analysis for Luna's.
7.3 Projected Profit and Loss
The following table and charts show the Projected Profit and Loss and Gross Margin for Luna's.
7.4 Projected Cash Flow
The following table shows the cash flow totals for three years. As you can see by the table and chart, the cash flow remains healthy.
7.5 Projected Balance Sheet
The following table is the Projected Balance Sheet.
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5411, [Convenience Stores, Independent], are shown for comparison.