NoHassleReturn.com
Financial Plan
Forecast
Key Assumptions
- $4.1 million investment
- Status quo in market developments related to returns as part of traditional commerce is online commerce.
- Competition as we foresee it in the plan.
Revenue by Year
Net Profit (or Loss) by Year
Financing
Use of Funds
START-UP REQUIREMENTS
Start-up Expenses
Legal $200
Stationery etc. $50
Brochures $450
Insurance $100
Rent $500
Research and development $400
Expensed equipment $1,100
Other $200
TOTAL START-UP EXPENSES $3,000
Sources of Funds
The two co-owners will each contribute $25,000, for a total startup of $50,000.
The plan depends on $4.1 million investment in the first month.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $12,012,000 | $37,514,400 | |
| Direct Costs | $6,437,760 | $19,702,838 | |
| Gross Margin | $5,574,240 | $17,811,562 | |
| Gross Margin % | 46% | 47% | |
| Operating Expenses | |||
| Salaries & Wages | $180,000 | $1,466,200 | $3,348,424 |
| Employee Related Expenses | $36,000 | $293,240 | $669,685 |
| Sales and marketing | $300,000 | $3,000,000 | $6,000,000 |
| Research and Development | $120,000 | $120,000 | $120,000 |
| Rent | $240,000 | $240,000 | $240,000 |
| Utilities | $60,000 | $60,000 | $60,000 |
| Telephone | $28,800 | $28,800 | $28,800 |
| Insurance | $144,000 | $144,000 | $144,000 |
| Legal | $60,000 | $60,000 | $60,000 |
| Equipment Upkeep | $108,000 | $108,000 | $108,000 |
| office Supplies | $10,800 | $10,800 | $10,800 |
| Total Operating Expenses | $1,287,600 | $5,531,040 | $10,789,709 |
| Operating Income | ($1,287,600) | $43,200 | $7,021,853 |
| Interest Incurred | |||
| Depreciation and Amortization | $309,400 | $369,400 | $369,400 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $1,597,000 | $12,338,200 | $30,861,947 |
| Net Profit | ($1,597,000) | ($326,200) | $6,652,453 |
| Net Profit/Sales | (3%) | 18% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $1,235,990 | $228,946 | $4,932,050 | |
| Accounts Receivable | $1,921,920 | $6,002,304 | ||
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $1,235,990 | $2,150,866 | $10,934,354 | |
| Long-Term Assets | $47,000 | $1,847,000 | $1,847,000 | $1,847,000 |
| Accumulated Depreciation | ($309,400) | ($678,800) | ($1,048,200) | |
| Total Long-Term Assets | $47,000 | $1,537,600 | $1,168,200 | $798,800 |
| Total Assets | $47,000 | $2,773,590 | $3,319,066 | $11,733,154 |
| Accounts Payable | $213,590 | $1,085,266 | $2,846,901 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | ||
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $213,590 | $1,085,266 | $2,846,901 | |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $213,590 | $1,085,266 | $2,846,901 | |
| Paid-In Capital | $50,000 | $4,160,000 | $4,160,000 | $4,160,000 |
| Retained Earnings | ($3,000) | ($3,000) | ($1,600,000) | ($1,926,200) |
| Earnings | ($1,597,000) | ($326,200) | $6,652,453 | |
| Total Owner’s Equity | $47,000 | $2,560,000 | $2,233,800 | $8,886,253 |
| Total Liabilities & Equity | $47,000 | $2,773,590 | $3,319,066 | $11,733,154 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($1,597,000) | ($326,200) | $6,652,453 |
| Depreciation & Amortization | $309,400 | $369,400 | $369,400 |
| Change in Accounts Receivable | ($1,921,920) | ($4,080,384) | |
| Change in Inventory | |||
| Change in Accounts Payable | $213,590 | $871,676 | $1,761,635 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($1,074,010) | ($1,007,044) | $4,703,104 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($1,800,000) | ||
| Net Cash from Investing | ($1,800,000) | ||
| Investments Received | $4,110,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $4,110,000 | ||
| Cash at Beginning of Period | $0 | $1,235,990 | $228,946 |
| Net Change in Cash | $1,235,990 | ($1,007,044) | $4,703,104 |
| Cash at End of Period | $1,235,990 | $228,946 | $4,932,050 |
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