Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Education Technology icon Educational Software K-12 Business Plan

Start your plan

Curriculum Companion Suites

Executive Summary

Introduction
Curriculum Companion Suites (CSS) is a medium-sized software development and consulting firm focused on making the educational process more efficient and effective for K-12 schools. CCS software serves as a virtual teaching assistant for the educational process. Students can follow along with curriculum electronically through a central computer terminal at the front of the classroom.

The Company
CCS keys to success are the company’s commitment to market awareness and future potential direction of the educational process, and CCS’ relationships with a large number of educational institutions and districts.

Curriculum Companion Suites is a start-up company comprised of six executives and seventy-six employees. The executives represent all functional areas, with 70 years of combined experience in the software development industry. Two majority shareholders, Andrew Christiansen and David Fields, own 80% of the company. Other investors own a minority stake. At the moment, the company does not have plans for going public, as most of the financing is raised internally. CSS is incorporated in the state of Oregon by the two majority shareholders.

Products
CCS offers a suite of educational software for each grade level, from kindergarten through 12th grade. These suites are developed in collaboration with major curriculum publishers with whom CCS has established strategic partnerships.

CCS provides full installation, initial and ongoing consulting support. These services are provided as part of each software package purchase.

The Market
The competitive marketplace includes only a handful of direct competitors within the learning information systems vendors segment, providing software products and installation and systems integration services to kindergarten through senior high (K-12) schools in the United States. CCS competes primarily against more traditional methods of education, training and testing, including pencil and paper testing. In addition, CCS competes with other companies offering educational software products to schools, such as International Business Machines Corporation, Apple Computer, Inc., and Mattel, Inc.

Educational institutions and school districts have not been active in searching out technical enhancements to the educational process. Rather, companies such as CCS have often utilized a more “push” type of marketing strategy. The educational community has had to be “educated” themselves on the opportunities of utilizing technical infrastructures to enhance learning processes.

Since only a handful of other companies are competing directly with CCS in this market, the company plans to develop a healthy level of market share, with a goal of 10% at the end of three years. 

The target market for CCS is the urban/metropolitan educational market, as this market presents the highest level of opportunity in terms of revenues. Additionally, software installations and customizations in this market are much more feasible in terms of technical logistics and efficiencies. Thus, profitability is by far more likely in this market.

Relationships have been established with a large number of educational institutions and school districts across the U.S. Significant investments have been made by CCS to research and understand the specific needs and potential enhancements to the current educational process.

Financial Considerations
CCS expects to raise a substantial amount of owner capital, and borrow a comparable amount in a guaranteed SBA 10-year loan. This provides the bulk of the current financing required.

CCS intends to deliver generous sales in the first year, with steady grown in the second and third years of the plan.

1.1 Mission

Curriculum Companion Suites aims to offer software curriculum suites to K-12 schools within the U.S. market. CCS will focus on providing solutions to enhance the educational capabilities of schools.

Sbp, educational software k-12 business plan, executive summary chart image

1.2 Keys to Success

CCS keys to success include:

  1. The company’s commitment to being keenly alert to the current educational environment and future potential direction of the educational process.
  2. CCS’ relationships with a large number of educational institutions and districts.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

Curriculum Companion Suites is a start-up comprised of six executives. These executives represent all functional areas, with 70 years of combined experience in the software development industry. Two majority shareholders, Andrew Christiansen and David Fields, own 80% of the company. The bulk of outside financing will come from a 10-year Small Business Administration (SBA) loan.

2.1 Company Ownership

CSS is incorporated in the state of Oregon by Andrew Christiansen and David Fields. Other investors own a minority stake. At the moment, the company does not have plans for going public, as most of the financing is raised internally.

CSS is a start-up company that was registered in the year 2000.

2.2 Start-up Summary

Of the total start-up expenses, the lion’s share has been spent on software licenses. Estimated start-up cash requirements should be sufficient to cover ongoing expenses in the first months of operation. Christiansen and Fields have each invested heavily, with the rest of investment coming from minority shareholders. The company has also secured a 10-year SBA loan and a one-year loan from its bank. Following is a chart and table summarizing projected initial start-up costs.

Sbp, educational software k-12 business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $3,000
Software Licenses $20,000
Other $1,000
Total Start-up Expenses $24,000
Start-up Assets
Cash Required $180,000
Other Current Assets $75,000
Long-term Assets $100,000
Total Assets $355,000
Total Requirements $379,000
Start-up Funding
Start-up Expenses to Fund $24,000
Start-up Assets to Fund $355,000
Total Funding Required $379,000
Assets
Non-cash Assets from Start-up $175,000
Cash Requirements from Start-up $180,000
Additional Cash Raised $0
Cash Balance on Starting Date $180,000
Total Assets $355,000
Liabilities and Capital
Liabilities
Current Borrowing $50,000
Long-term Liabilities $150,000
Accounts Payable (Outstanding Bills) $1,000
Other Current Liabilities (interest-free) $0
Total Liabilities $201,000
Capital
Planned Investment
Andrew Christiansen $60,000
David Fields $60,000
Other $58,000
Additional Investment Requirement $0
Total Planned Investment $178,000
Loss at Start-up (Start-up Expenses) ($24,000)
Total Capital $154,000
Total Capital and Liabilities $355,000
Total Funding $379,000

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Services

CCS offers a suite of educational software for each grade level, from Kindergarten through 12th grade. These suites are developed in collaboration with major curriculum publishers with whom CCS has established strategic partnerships.

CCS provides full installation, initial, and ongoing consulting support. These services are provided as part of each software package purchase.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

CCS has a focus on K-12 schools within the U.S. market, especially schools who:

  • already own educational packages from large curriculum publishers who are CCS strategic partners
  • owns software that has been recently developed by CSS.

The following chart and table summarize the total market potential for CSS products.

Sbp, educational software k-12 business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Urban K-12 Schools 5% 2,500 2,625 2,756 2,894 3,039 5.00%
Rural K-12 Schools 5% 1,500 1,575 1,654 1,737 1,824 5.01%
Total 5.01% 4,000 4,200 4,410 4,631 4,863 5.01%

4.1 Market Segmentation

Metropolitan Schools

Metropolitan schools often have larger student populations, with more classes, requiring more extensive and comprehensive software packages. The installations are consequently more extensive in nature.

Rural Schools

Rural schools often have relatively smaller student populations, and fewer classes. Additional customization during installations is usually necessary, as the infrastructure for computer networks is either substandard or nonexistent.

4.2 Target Market Segment Strategy

The target market for CCS is the urban/metropolitan educational market, as this market presents the highest level of opportunity in terms of revenues. Additionally, software installations and customizations in this market are much more feasible in terms of technical logistics and efficiencies. Thus, profitability is by far more likely in this market.

Relationships have been established with a large number of educational institutions and school districts across the U.S. Significant investments have been made by CCS to research and understand the specific needs and potential enhancements to the current educational process. By working closely with educational administrators in efforts to optimize the educational process, strong relationships have been established and a high sales closing rate has resulted.

4.3 Market Needs

CCS’s research has found that educators, as well as parents of K-12 children believe that the educational process is in need of significant improvements. Children, for the most part, have been found to strongly prefer an educational environment where they can learn “hands on” using the computer in conjunction with teacher facilitation, as opposed to teacher facilitation only.

4.4 Service Business Analysis

Major competition to CSS comes not from other software developers but from traditional book publishers. In fact, one of the goals of the company is to educate its clientele about the possibilities and features of the specially-designed software that assists in the educational process. The tool CSS provides teachers with will help them become more effective and efficient in classrooms. The company believes that the novelty and added value its products provide to educators will be key buying decision criteria for the customers.

4.5 Competition and Buying Patterns

Only a handful of other companies are competing directly with CCS in this market. CCS plans to develop a healthy level of market share, with a goal of 10% at the end of three years. With the exponential increase in computer and Internet usage among the public in the last five years, this is a relatively new market. CCS has taken a lead primarily due to its intense efforts both in research and development, as well as in establishing relationships in the educational community.

Educational institutions and school districts have not been active in searching out technical enhancements to the educational process. Rather, companies such as CCS have often utilized a more “push” type of marketing strategy. The educational community has had to be “educated” themselves on the opportunities of utilizing technical infrastructures to enhance learning processes.

The competitive marketplace includes only a handful of direct competitors within the learning information systems vendors segment, providing software products and installation and systems integration services to kindergarten through senior high (K-12) schools in the United States. Typical learning information systems consist of computer software and related training designed to improve student academic performance by increasing the quality, quantity, and timeliness of performance data available to educators and by facilitating increased student practice of essential skills.

There are a number of competing products covering a wide range of educational requirements. These include:

  • Accelerated reading products–software for motivating and monitoring increased literature-based reading practice.
  • Accelerated math–software aimed to increase a student’s competency across this discipline utilizing the latest techniques.
  • Professional development training for educators.
  • Test-generation software.

Software products offered by competitors also aim to improve student academic performance by intensifying skills practice and increasing the quality, quantity and timeliness of information available to educators.

CCS competes primarily against more traditional methods of education, training and testing, including pencil and paper testing. In addition, CCS competes with other companies offering educational software products to schools, such as International Business Machines Corporation, Apple Computer, Inc., and Mattel, Inc. Many other companies, including Microsoft Corporation and Walt Disney Company, provide educational software products.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

CCS intends to succeed by offering K-12 schools a technological tool to assist teachers in making the educational process more efficient and effective.

5.1 Competitive Edge

CCS’ competitive edge is its new ideas and first to market technologies.

5.2 Sales Strategy

The table and charts shows the level of sales CCS intends to deliver in the first year through the third year of the plan. Detailed monthly sales for the first year are in the appendix.

Sbp, educational software k-12 business plan, strategy and implementation summary chart image

Sbp, educational software k-12 business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Software Systems 240 276 317
Installation & Customization 240 276 317
Other Consulting 120 138 159
Total Unit Sales 600 690 794
Unit Prices Year 1 Year 2 Year 3
Software Systems $25,000.00 $25,000.00 $25,000.00
Installation & Customization $15,000.00 $15,000.00 $15,000.00
Other Consulting $5,000.00 $5,000.00 $5,000.00
Sales
Software Systems $6,000,000 $6,900,000 $7,935,000
Installation & Customization $3,600,000 $4,140,000 $4,761,000
Other Consulting $600,000 $690,000 $793,500
Total Sales $10,200,000 $11,730,000 $13,489,500
Direct Unit Costs Year 1 Year 2 Year 3
Software Systems $2,000.00 $2,000.00 $2,000.00
Installation & Customization $10,000.00 $10,000.00 $10,000.00
Other Consulting $2,000.00 $2,000.00 $2,000.00
Direct Cost of Sales
Software Systems $480,000 $552,000 $634,800
Installation & Customization $2,400,000 $2,760,000 $3,174,000
Other Consulting $240,000 $276,000 $317,400
Subtotal Direct Cost of Sales $3,120,000 $3,588,000 $4,126,200

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

Andrew B. Christiansen has extensive experience in business planning and finance, including tenures as chief financial officer with ABC Conglomerate and DEF International. David E. Fields brings in experience in the area of marketing, advertising, and communications.

6.1 Personnel Plan

CSS will focus on strong product development and marketing. These are the areas where most of the investments and training will go. The table below, and in the appendix, outlines the company’s personnel plan for the next years.

Personnel Plan
Year 1 Year 2 Year 3
Product Development $900,000 $945,000 $992,250
Installation Technicians $875,000 $918,750 $964,688
Administrative $595,000 $624,750 $655,988
Sales & Marketing $900,000 $945,000 $992,250
Other $0 $0 $0
Total People 82 86 90
Total Payroll $3,270,000 $3,433,500 $3,605,175

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

CCS expects to raise its own capital, and to acquire a guaranteed the SBA 10-year loan. This provides the bulk of the current financing required.

7.1 Break-even Analysis

CCS’s Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk.

Sbp, educational software k-12 business plan, financial plan chart image

Break-even Analysis
Monthly Units Break-even 27
Monthly Revenue Break-even $466,023
Assumptions:
Average Per-Unit Revenue $17,000.00
Average Per-Unit Variable Cost $5,200.00
Estimated Monthly Fixed Cost $323,475

7.2 Projected Profit and Loss

The projected Profit and Loss for CCS is presented in the accompanying table. The three yearly totals are shown here, with year one monthlies in the appendix.

Sbp, educational software k-12 business plan, financial plan chart image

Sbp, educational software k-12 business plan, financial plan chart image

Sbp, educational software k-12 business plan, financial plan chart image

Sbp, educational software k-12 business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $10,200,000 $11,730,000 $13,489,500
Direct Cost of Sales $3,120,000 $3,588,000 $4,126,200
Other $0 $0 $0
Total Cost of Sales $3,120,000 $3,588,000 $4,126,200
Gross Margin $7,080,000 $8,142,000 $9,363,300
Gross Margin % 69.41% 69.41% 69.41%
Expenses
Payroll $3,270,000 $3,433,500 $3,605,175
Sales and Marketing and Other Expenses $96,000 $150,000 $265,000
Depreciation $24,000 $27,600 $31,740
Utilities $1,200 $1,500 $1,700
Payroll Taxes $490,500 $515,025 $540,776
Other $0 $0 $0
Total Operating Expenses $3,881,700 $4,127,625 $4,444,391
Profit Before Interest and Taxes $3,198,300 $4,014,375 $4,918,909
EBITDA $3,222,300 $4,041,975 $4,950,649
Interest Expense $18,700 $16,400 $14,000
Taxes Incurred $808,144 $999,494 $1,246,664
Net Profit $2,371,456 $2,998,481 $3,658,244
Net Profit/Sales 23.25% 25.56% 27.12%

7.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet CCS’s needs as the business generates cash flow sufficient to support operations.

Sbp, educational software k-12 business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $3,468,000 $3,988,200 $4,586,430
Cash from Receivables $5,628,700 $7,576,305 $8,712,751
Subtotal Cash from Operations $9,096,700 $11,564,505 $13,299,181
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $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 $190,000 $0 $0
Subtotal Cash Received $9,286,700 $11,564,505 $13,299,181
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $3,270,000 $3,433,500 $3,605,175
Bill Payments $4,171,394 $5,201,383 $6,118,402
Subtotal Spent on Operations $7,441,394 $8,634,883 $9,723,577
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $12,000 $12,000 $12,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $12,000 $12,000 $12,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $135,000 $225,000 $295,000
Dividends $0 $0 $0
Subtotal Cash Spent $7,600,394 $8,883,883 $10,042,577
Net Cash Flow $1,686,306 $2,680,622 $3,256,604
Cash Balance $1,866,306 $4,546,928 $7,803,532

7.4 Projected Balance Sheet

Following is the projected Balance Sheet for CCS. Again, three years of annuals are shown below, with first year monthlies in the appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $1,866,306 $4,546,928 $7,803,532
Accounts Receivable $1,103,300 $1,268,795 $1,459,114
Other Current Assets $75,000 $75,000 $75,000
Total Current Assets $3,044,606 $5,890,723 $9,337,646
Long-term Assets
Long-term Assets $235,000 $460,000 $755,000
Accumulated Depreciation $24,000 $51,600 $83,340
Total Long-term Assets $211,000 $408,400 $671,660
Total Assets $3,255,606 $6,299,123 $10,009,306
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $364,149 $433,185 $509,124
Current Borrowing $38,000 $26,000 $14,000
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $402,149 $459,185 $523,124
Long-term Liabilities $138,000 $126,000 $114,000
Total Liabilities $540,149 $585,185 $637,124
Paid-in Capital $368,000 $368,000 $368,000
Retained Earnings ($24,000) $2,347,456 $5,345,938
Earnings $2,371,456 $2,998,481 $3,658,244
Total Capital $2,715,456 $5,713,938 $9,372,182
Total Liabilities and Capital $3,255,606 $6,299,123 $10,009,306
Net Worth $2,715,456 $5,713,938 $9,372,182

7.5 Business Ratios

The following table represents business ratios for the educational support software industry. These numbers are determined by the Standard Industry Classification (SIC) Index code 7372, Software Publishing Prepackaged.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 15.00% 15.00% 9.70%
Percent of Total Assets
Accounts Receivable 33.89% 20.14% 14.58% 21.50%
Other Current Assets 2.30% 1.19% 0.75% 45.70%
Total Current Assets 93.52% 93.52% 93.29% 70.20%
Long-term Assets 6.48% 6.48% 6.71% 29.80%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.35% 7.29% 5.23% 42.40%
Long-term Liabilities 4.24% 2.00% 1.14% 19.20%
Total Liabilities 16.59% 9.29% 6.37% 61.60%
Net Worth 83.41% 90.71% 93.63% 38.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 69.41% 69.41% 69.41% 100.00%
Selling, General & Administrative Expenses 46.04% 43.87% 42.17% 79.40%
Advertising Expenses 0.59% 0.85% 1.48% 1.30%
Profit Before Interest and Taxes 31.36% 34.22% 36.46% 2.20%
Main Ratios
Current 7.57 12.83 17.85 1.51
Quick 7.57 12.83 17.85 1.16
Total Debt to Total Assets 16.59% 9.29% 6.37% 61.60%
Pre-tax Return on Net Worth 117.09% 69.97% 52.33% 3.50%
Pre-tax Return on Assets 97.67% 63.47% 49.00% 9.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 23.25% 25.56% 27.12% n.a
Return on Equity 87.33% 52.48% 39.03% n.a
Activity Ratios
Accounts Receivable Turnover 6.10 6.10 6.10 n.a
Collection Days 57 56 56 n.a
Accounts Payable Turnover 12.45 12.17 12.17 n.a
Payment Days 27 28 28 n.a
Total Asset Turnover 3.13 1.86 1.35 n.a
Debt Ratios
Debt to Net Worth 0.20 0.10 0.07 n.a
Current Liab. to Liab. 0.74 0.78 0.82 n.a
Liquidity Ratios
Net Working Capital $2,642,456 $5,431,538 $8,814,522 n.a
Interest Coverage 171.03 244.78 351.35 n.a
Additional Ratios
Assets to Sales 0.32 0.54 0.74 n.a
Current Debt/Total Assets 12% 7% 5% n.a
Acid Test 4.83 10.07 15.06 n.a
Sales/Net Worth 3.76 2.05 1.44 n.a
Dividend Payout 0.00 0.00 0.00 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Software Systems 0% 20 20 20 20 20 20 20 20 20 20 20 20
Installation & Customization 0% 20 20 20 20 20 20 20 20 20 20 20 20
Other Consulting 0% 10 10 10 10 10 10 10 10 10 10 10 10
Total Unit Sales 50 50 50 50 50 50 50 50 50 50 50 50
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Software Systems $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00
Installation & Customization $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00
Other Consulting $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Sales
Software Systems $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Installation & Customization $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000
Other Consulting $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total Sales $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Software Systems 0.00% $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
Installation & Customization 0.00% $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
Other Consulting 0.00% $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
Direct Cost of Sales
Software Systems $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Installation & Customization $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
Other Consulting $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Subtotal Direct Cost of Sales $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Product Development 0% $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
Installation Technicians 0% $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917 $72,917
Administrative 0% $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583 $49,583
Sales & Marketing 0% $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 82 82 82 82 82 82 82 82 82 82 82 82
Total Payroll $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000
Direct Cost of Sales $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000
Gross Margin $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000 $590,000
Gross Margin % 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41% 69.41%
Expenses
Payroll $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500
Sales and Marketing and Other Expenses $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Depreciation $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875 $40,875
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475 $323,475
Profit Before Interest and Taxes $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525 $266,525
EBITDA $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525 $268,525
Interest Expense $1,650 $1,633 $1,617 $1,600 $1,583 $1,567 $1,550 $1,533 $1,517 $1,500 $1,483 $1,467
Taxes Incurred $79,463 $66,223 $66,227 $66,231 $66,235 $66,240 $66,244 $66,248 $66,252 $66,256 $66,260 $66,265
Net Profit $185,413 $198,669 $198,681 $198,694 $198,706 $198,719 $198,731 $198,744 $198,756 $198,769 $198,781 $198,794
Net Profit/Sales 21.81% 23.37% 23.37% 23.38% 23.38% 23.38% 23.38% 23.38% 23.38% 23.38% 23.39% 23.39%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000 $289,000
Cash from Receivables $0 $18,700 $561,000 $561,000 $561,000 $561,000 $561,000 $561,000 $561,000 $561,000 $561,000 $561,000
Subtotal Cash from Operations $289,000 $307,700 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $190,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $289,000 $497,700 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500 $272,500
Bill Payments $14,003 $389,646 $376,831 $376,818 $376,806 $376,793 $376,781 $376,768 $376,756 $376,743 $376,731 $376,718
Subtotal Spent on Operations $286,503 $662,146 $649,331 $649,318 $649,306 $649,293 $649,281 $649,268 $649,256 $649,243 $649,231 $649,218
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $288,503 $664,146 $651,331 $666,318 $666,306 $666,293 $666,281 $666,268 $666,256 $666,243 $666,231 $666,218
Net Cash Flow $497 ($166,446) $198,669 $183,682 $183,694 $183,707 $183,719 $183,732 $183,744 $183,757 $183,769 $183,782
Cash Balance $180,497 $14,051 $212,721 $396,402 $580,096 $763,803 $947,522 $1,131,254 $1,314,998 $1,498,755 $1,682,524 $1,866,306
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $180,000 $180,497 $14,051 $212,721 $396,402 $580,096 $763,803 $947,522 $1,131,254 $1,314,998 $1,498,755 $1,682,524 $1,866,306
Accounts Receivable $0 $561,000 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300 $1,103,300
Other Current Assets $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
Total Current Assets $255,000 $816,497 $1,192,351 $1,391,021 $1,574,702 $1,758,396 $1,942,103 $2,125,822 $2,309,554 $2,493,298 $2,677,055 $2,860,824 $3,044,606
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $115,000 $130,000 $145,000 $160,000 $175,000 $190,000 $205,000 $220,000 $235,000
Accumulated Depreciation $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Total Long-term Assets $100,000 $98,000 $96,000 $94,000 $107,000 $120,000 $133,000 $146,000 $159,000 $172,000 $185,000 $198,000 $211,000
Total Assets $355,000 $914,497 $1,288,351 $1,485,021 $1,681,702 $1,878,396 $2,075,103 $2,271,822 $2,468,554 $2,665,298 $2,862,055 $3,058,824 $3,255,606
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $1,000 $377,085 $364,270 $364,258 $364,246 $364,234 $364,222 $364,210 $364,198 $364,186 $364,174 $364,161 $364,149
Current Borrowing $50,000 $49,000 $48,000 $47,000 $46,000 $45,000 $44,000 $43,000 $42,000 $41,000 $40,000 $39,000 $38,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $51,000 $426,085 $412,270 $411,258 $410,246 $409,234 $408,222 $407,210 $406,198 $405,186 $404,174 $403,161 $402,149
Long-term Liabilities $150,000 $149,000 $148,000 $147,000 $146,000 $145,000 $144,000 $143,000 $142,000 $141,000 $140,000 $139,000 $138,000
Total Liabilities $201,000 $575,085 $560,270 $558,258 $556,246 $554,234 $552,222 $550,210 $548,198 $546,186 $544,174 $542,161 $540,149
Paid-in Capital $178,000 $178,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000 $368,000
Retained Earnings ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000) ($24,000)
Earnings $0 $185,413 $384,081 $582,763 $781,456 $980,163 $1,178,881 $1,377,613 $1,576,356 $1,775,113 $1,973,881 $2,172,663 $2,371,456
Total Capital $154,000 $339,413 $728,081 $926,763 $1,125,456 $1,324,163 $1,522,881 $1,721,613 $1,920,356 $2,119,113 $2,317,881 $2,516,663 $2,715,456
Total Liabilities and Capital $355,000 $914,497 $1,288,351 $1,485,021 $1,681,702 $1,878,396 $2,075,103 $2,271,822 $2,468,554 $2,665,298 $2,862,055 $3,058,824 $3,255,606
Net Worth $154,000 $339,413 $728,081 $926,763 $1,125,456 $1,324,163 $1,522,881 $1,721,613 $1,920,356 $2,119,113 $2,317,881 $2,516,663 $2,715,456

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan