Electrical Contractor Business Plan

Financial Plan

Our key assumptions are:

Buildings need electricity
Electricity wires fray and need repair
As technology gets more advanced it needs more electricity to accomplish its tasks
Tech boom never dies, just changes. We will always have customers looking for services

Our Startup Expenses are:

Stationery etc.$100

Brochures$200

Start-up Inventory$10,000

TOTAL $10,300

We will be getting $69,000. Robin will invest $47,000 and we will get a $22,000 long term loan to cover the inventory as well as some machinery.

	2018	2019	2020
Revenue	$382,200	$450,000	$516,000

Direct Costs	$248,430	$292,500	$335,400

Gross Margin	$133,770	$157,500	$180,600
Gross Margin %	35%	35%	35%
Operating Expenses
Salaries & Wages	$48,000	$48,960	$49,939
Employee Related Expenses	$9,600	$9,792	$9,988
Leased Equipment	$12,000	$12,000	$12,000
Utilities	$7,800	$7,800	$7,800
Rent	$36,000	$36,000	$36,000
Sales	$7,644	$9,000	$10,320
Marketing	$7,644	$9,000	$10,320
Total Operating Expenses	$128,688	$132,552	$136,367

Operating Income	$5,082	$24,948	$44,233

Interest Incurred	$794	$600	$398
Depreciation and Amortization	$7,333	$7,334	$7,333
Gain or Loss from Sale of Assets
Income Taxes	$0	$0	$0
Total Expenses	$385,245	$432,985	$479,499
Net Profit	($3,045)	$17,015	$36,501
Net Profit/Sales	(1%)	4%	7%

	Starting Balances	2018	2019	2020
Cash	$36,700	$13,095	$33,137	$68,169
Accounts Receivable		$39,300	$37,500	$43,000
Inventory		$24,375	$27,950	$27,950
Other Current Assets
Total Current Assets	$36,700	$76,770	$98,587	$139,119

Long-Term Assets	$22,000	$22,000	$22,000	$22,000
Accumulated Depreciation		($7,333)	($14,667)	($22,000)
Total Long-Term Assets	$22,000	$14,667	$7,333	$0

Total Assets	$58,700	$91,437	$105,921	$139,119

Accounts Payable		$40,532	$42,945	$44,788
Income Taxes Payable		$0	$0	$0
Sales Taxes Payable		$0	$0	$0
Short-Term Debt	$4,750	$4,944	$5,145	$5,355
Prepaid Revenue
Total Current Liabilities	$4,750	$45,476	$48,091	$50,143
Long-Term Debt	$17,250	$12,306	$7,160	$1,805
Long-Term Liabilities	$17,250	$12,306	$7,160	$1,805

Total Liabilities	$22,000	$57,782	$55,251	$51,948

Paid-In Capital	$47,000	$47,000	$47,000	$47,000
Retained Earnings	($10,300)	($10,300)	($13,345)	$3,670
Earnings		($3,045)	$17,015	$36,501
Total Owner’s Equity	$36,700	$33,655	$50,670	$87,171

Total Liabilities & Equity	$58,700	$91,437	$105,921	$139,119

	2018	2019	2020
Net Cash Flow from Operations
Net Profit	($3,045)	$17,015	$36,501
Depreciation & Amortization	$7,333	$7,333	$7,333
Change in Accounts Receivable	($39,300)	$1,800	($5,500)
Change in Inventory	($24,375)	($3,575)	$0
Change in Accounts Payable	$40,532	$2,413	$1,842
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	($18,855)	$24,986	$40,177
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt	$194	$201	$210
Change in Long-Term Debt	($4,944)	($5,145)	($5,355)
Net Cash from Financing	($4,750)	($4,944)	($5,145)
Cash at Beginning of Period	$36,700	$13,095	$33,137
Net Change in Cash	($23,605)	$20,042	$35,031
Cash at End of Period	$13,095	$33,137	$68,169