Rutabaga Sweets
Financial Plan
Forecast
Key Assumptions
Our key underlying assumptions for this plan:
- We assume a slow-growth economy, without major recession. This means our customers will be able to purchase our gourmet desserts and enjoy our services.
- We assume that people will always want sinful desserts. We will keep up with the times, gluten free, egg free, do our research to make sure to give our clients yummy desserts that fit the trend.
- We assume we will find people who appreciate our business and our services and want to invest to keep us in business because we give back to our community and are a great place to be and to learn
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our start-up funds will be used for: kitchen equipment, store furnishings and construction, and starting inventory expenses associated with opening our first store.
Sources of Funds
We will ourselves and close friends and family invest $300K to start this business.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $449,850 | $572,000 | $660,000 |
| Direct Costs | $181,260 | $230,550 | $266,200 |
| Gross Margin | $268,590 | $341,450 | $393,800 |
| Gross Margin % | 60% | 60% | 60% |
| Operating Expenses | |||
| Salaries & Wages | $126,400 | $147,144 | $157,790 |
| Employee Related Expenses | $25,280 | $29,429 | $31,558 |
| Rent | $60,000 | $60,000 | $60,000 |
| Utilities | $7,200 | $7,200 | $7,200 |
| Insurance | $3,600 | $3,600 | $3,600 |
| Marketing | $7,200 | $7,200 | $7,200 |
| Legal | $1,000 | ||
| Office Supplies | $2,000 | ||
| Sommelier Consulting | $500 | ||
| Menus | $1,000 | ||
| Insurance | $500 | ||
| Design and Construction | $30,000 | ||
| Research and Development | $1,000 | ||
| Dishes, Silverware, Glassware | $6,000 | ||
| Total Operating Expenses | $271,680 | $254,573 | $267,348 |
| Operating Income | ($3,090) | $86,877 | $126,452 |
| Interest Incurred | |||
| Depreciation and Amortization | $43,095 | $43,095 | $43,096 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $5,667 |
| Total Expenses | $496,035 | $528,218 | $582,311 |
| Net Profit | ($46,185) | $43,782 | $77,689 |
| Net Profit/Sales | (10%) | 8% | 12% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $58,527 | $144,663 | $267,479 |
| Accounts Receivable | $6,575 | $7,722 | $8,910 |
| Inventory | $19,213 | $22,184 | $22,184 |
| Other Current Assets | |||
| Total Current Assets | $84,314 | $174,569 | $298,573 |
| Long-Term Assets | $135,000 | $135,000 | $135,000 |
| Accumulated Depreciation | ($43,095) | ($86,190) | ($129,286) |
| Total Long-Term Assets | $91,905 | $48,810 | $5,714 |
| Total Assets | $176,219 | $223,379 | $304,287 |
| Accounts Payable | $12,856 | $14,342 | $14,342 |
| Income Taxes Payable | $0 | $0 | $1,459 |
| Sales Taxes Payable | $9,548 | $11,440 | $13,200 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $22,404 | $25,782 | $29,001 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $22,404 | $25,782 | $29,001 |
| Paid-In Capital | $200,000 | $200,000 | $200,000 |
| Retained Earnings | ($46,185) | ($2,403) | |
| Earnings | ($46,185) | $43,782 | $77,690 |
| Total Owner’s Equity | $153,815 | $197,597 | $275,286 |
| Total Liabilities & Equity | $176,219 | $223,379 | $304,287 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($46,185) | $43,782 | $77,689 |
| Depreciation & Amortization | $43,095 | $43,095 | $43,095 |
| Change in Accounts Receivable | ($6,575) | ($1,148) | ($1,188) |
| Change in Inventory | ($19,213) | ($2,971) | $0 |
| Change in Accounts Payable | $12,856 | $1,486 | $0 |
| Change in Income Tax Payable | $0 | $0 | $1,459 |
| Change in Sales Tax Payable | $9,548 | $1,892 | $1,760 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($6,473) | $86,136 | $122,816 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($135,000) | ||
| Net Cash from Investing | ($135,000) | ||
| Investments Received | $200,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $200,000 | ||
| Cash at Beginning of Period | $0 | $58,527 | $144,663 |
| Net Change in Cash | $58,527 | $86,136 | $122,816 |
| Cash at End of Period | $58,527 | $144,663 | $267,479 |
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