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Abbey Electronic Services

Executive Summary

Abbey Electronic Services is a full-service electronic repair business opening in the revitalized Cherry Grove section of Montclair. The opening of the business is in conjunction with the completion of the Cherry Grove Shopping Center. Two of the center’s tenants, Harry’s Electronics and Olson’s Appliance Superstore, have signed third-party repair agreements with Abbey Electronic Services. Abbey Electronic Services is under contract to provide authorized warranty service for selected manufacturers.

In addition to business clients, Abbey’s will be open to the general public for repairs of consumer electronics either with or without warranty service. The residential community in Cherry Grove has experienced explosive growth and will serve as a strong customer base for Abbey Electronic Services.

Abbey’s owner, Richard Abbey, has 25 years of experience in the consumer electronics repair field. His reputation for excellence is well established and he is a highly-respected electronics instructor at the community college’s Electronics Engineering Technology program.

Abbey Electronic Services will have a staff of two electronics technicians in addition to Richard.

Sbp, electronics repair business plan, executive summary chart image

1.1 Mission

Abbey Electronic Services aims to offer high-quality electrical repair services with a focus on convenience and rapid service. Additionally, Abbey Electronic Services is technologically savvy with computerized monitoring of all parts inventory, to ensure that critical parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, Abbey Electronic Services has strong relationships with the regional vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

Abbey Electronic Services is about building a strong professional relationship with all our customers that is grounded in honesty, fairness and integrity of service.

1.2 Keys to Success

Abbey Electronic Services’ keys to success include:

  • Exceptional, expedient, and convenient electrical repair services.
  • Building a strong professional relationship with the customer base.
  • Rapid order and delivery of electrical part items.

Company Summary

Abbey Electronic Services is a start-up business managed by Richard Abbey. The economic growth of Cherry Grove in the last several years has resulted in a revitalized community with numerous new services and businesses. As a result, the area’s need for reliable and convenient electrical repair services has substantially risen as well. Abbey Electronic Services will position itself to capitalize on the growing need of the middle- and upper-class market for quality electrical repair service in the metropolitan area. The company will be privately owned by Richard Abbey, with most of the additional funding coming from a ten year SBA loan.

2.1 Start-up Summary

Richard Abbey will invest personal funds. The remainder of the required financing will come from a ten-year Small Business Administration (SBA) loan. The following table and chart show projected initial start-up costs Abbey Electronic Services.

Sbp, electronics repair business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $40,800
Start-up Assets to Fund $109,200
Total Funding Required $150,000
Assets
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $9,200
Additional Cash Raised $0
Cash Balance on Starting Date $9,200
Total Assets $109,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Richard $50,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,000
Loss at Start-up (Start-up Expenses) ($40,800)
Total Capital $9,200
Total Capital and Liabilities $109,200
Total Funding $150,000
Start-up
Requirements
Start-up Expenses
Legal $3,000
Stationery etc. $300
Rent $1,000
Start-Up Inventory $15,000
Leased Equipment $1,500
Start-Up Equipment $20,000
Other $0
Total Start-up Expenses $40,800
Start-up Assets
Cash Required $9,200
Other Current Assets $0
Long-term Assets $100,000
Total Assets $109,200
Total Requirements $150,000

2.2 Company Ownership

Abbey Electronic Services is privately owned by Richard Abbey.

Services

Abbey Electronic Services are the following:

Service Contracts/Factory Warranty Repairs/Out of Warranty Repairs

  • Washer/Dryer: General Electric, Kenmore, Maytag, Whirlpool, Amana and Frigidaire.
  • Refrigerators: Frigidaire, General Electric, Kenmore, and Whirlpool.
  • Cooking Ranges: General Electric, Whirlpool, Frigidaire, and Maytag. 
  • Televisions: Philips Magnavox, RCA, Sony, and Zenith.
  • DVD Players/VCRs: Panasonic, RCA, Sony, and Toshiba.
  • Camcorders: Sony, JVC, Panasonic, RCA, and Sharp.

Market Analysis Summary

Abbey Electronic Services’ focus is on meeting the demand of the local resident customer base, as well as service agreements with Harry’s Electronics and Olson’s Appliance Superstore. Abbey Electronic Services’ relationships with these two large tenants of the Cherry Grove Shopping Center will serve as a solid foundation for the growth of the business. The company estimates that about 60% of revenues will come from the these two business customers. It is estimated that these contracts will grow yearly at 15%. The remaining 40% will come from local walk-in traffic from local residents. We estimate that this segment of potential customers will grow by 15% annually. Over time, serving the local customer base will become the core of the business.

4.1 Market Segmentation

The table and chart below further estimates the total market potential of services rendered by Abbey Electronic Services in the metropolitan area.

Sbp, electronics repair business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Service Contracts 15% 4,000 4,600 5,290 6,084 6,997 15.00%
Local Walk-In 15% 40,000 46,000 52,900 60,835 69,960 15.00%
Other 0% 0 0 0 0 0 0.00%
Total 15.00% 44,000 50,600 58,190 66,919 76,957 15.00%

4.2 Target Market Segment Strategy

The market of electronic repair services is very competitive. The majority of the successful electronic repair shops have strong local customer support from years of faithful service. The niche where Abbey Electronic Services positions itself represents one convenient location for business clients and local residents. The Cherry Grove area of Montclair has been booming with middle- and upper-class residential housing. Currently, there is no established electronic repair service in the area. Abbey Electronic Services success in obtaining service contracts from the two major electronic product tenants of the Cherry Grove Shopping Center immediately establishes the business as the local focus for electronic repairs.

Strategy and Implementation Summary

Abbey Electronic Services will succeed by offering its customers high-quality and convenient electronic repair service. Each satisfied customer is a potential of five new referrals so the quality of our workmanship is key to growing the business.

5.1 Competitive Edge

The competitive edge of Abbey Electronic Services is its people. Location and marketing will get new customers in the door but without quality people, you won’t keep them. Richard Abbey knows this from working 25 years in the electronic repair business. In 1976, Richard started with J. Arnold and Sons, the largest electronic repair business in Montclair. He worked there for 10 years before taking over management of Lucas Electronic Repair. The business was struggling. In two years, Richard turned the business around. Lucas Electronic Repairs business increased by 150% during that period. The staff grew from four to eight. Richard remained as for another five years before returning to J. Arnold and Sons. As Manager of J. Arnold and Sons for the past eight years, the company has grown dramatically, from a staff of 10 to its current staff of 18.

Richard is also a successful teacher in the Montclair Community College Electronics Engineering Technology program. His approach in the classroom is the same approach with customers; straight forward and honest. He has been selected by the students as the best instructor five years in a row.

This is the competitive advantage Richard brings to everything he does whether in a business or a classroom.

5.2 Sales Forecast

The following table and charts show the projected sales forecast for Abbey Electronic Services.

Sbp, electronics repair business plan, strategy and implementation summary chart image

Sbp, electronics repair business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Service Contracts $137,000 $142,000 $155,000
Walk-In Customers $98,000 $110,000 $120,000
Total Sales $235,000 $252,000 $275,000
Direct Cost of Sales Year 1 Year 2 Year 3
Service Contracts $5,550 $6,200 $6,800
Walk-In Customers $4,700 $5,500 $6,000
Subtotal Direct Cost of Sales $10,250 $11,700 $12,800

Management Summary

Richard has hired electronic repair technicians, John Williamson and Jim Logan, to join Abbey Electronic Services.

John Williamson has 15 years of experience in the electronic repair field. John worked with Gilmore Electronic Repair for four years before joining Lucas Electronic Repairs. Since that time, John has moved into a senior position at Lucas. 

Jim Logan joins Abbey Electronic Services after working in the electronic repair field for 10 years in the Richmond Metro area. Jim has worked for both Premiere Electronic Services and Billings Electronics, which are the dominant repair businesses in Richmond.

Both of these technicians have a history of exceptional workmanship and great customer relations.

6.1 Personnel Plan

The following is the staff’s repair certification.

Richard is a certified to perform repairs on the following products.

  • Washer/Dryer: General Electric, Kenmore, and Maytag.
  • Refrigerators: Frigidaire and General Electric.
  • Cooking Ranges: General Electric and Whirlpool.
  • Televisions: Philips Magnavox and RCA.

John Williamson is a certified to perform repairs on the following products.

  • Washer/Dryer: General Electric, Whirlpool, Amana, and Frigidaire.
  • Refrigerators: Kenmore and Whirlpool.
  • Cooking Ranges: Frigidaire and Maytag.
  • Televisions: RCA, Sony, and Zenith.

Jim Logan is a certified to perform repairs on the following products.

  • Televisions: Philips Magnavox, RCA, Sony, and Zenith.
  • DVD Players/VCRs: Panasonic, RCA, Sony, and Toshiba.
  • Camcorders: Sony, JVC, Panasonic, RCA, and Sharp.
Personnel Plan
Year 1 Year 2 Year 3
Richard Abbey $48,000 $52,000 $58,000
John Williamson $48,000 $52,000 $58,000
Jim Logan $48,000 $52,000 $58,000
Other $0 $0 $0
Total People 0 0 0
Total Payroll $144,000 $156,000 $174,000

Financial Plan

The following is the financial plan for Abbey Electronic Services.

7.1 Break-even Analysis

The monthly break-even point is presented in the table and chart below.

Electronics repair business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $17,777
Assumptions:
Average Percent Variable Cost 4%
Estimated Monthly Fixed Cost $17,002

7.2 Projected Profit and Loss

The following table and chart show projected profit and loss for three years.

Electronics repair business plan, financial plan chart image

Electronics repair business plan, financial plan chart image

Electronics repair business plan, financial plan chart image

Electronics repair business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $235,000 $252,000 $275,000
Direct Cost of Sales $10,250 $11,700 $12,800
Other Production Expenses $0 $0 $0
Total Cost of Sales $10,250 $11,700 $12,800
Gross Margin $224,750 $240,300 $262,200
Gross Margin % 95.64% 95.36% 95.35%
Expenses
Payroll $144,000 $156,000 $174,000
Sales and Marketing and Other Expenses $7,400 $5,400 $5,400
Depreciation $2,220 $2,220 $2,220
Leased Equipment $14,400 $14,400 $14,400
Utilities $2,400 $2,400 $2,400
Insurance $0 $0 $0
Rent $12,000 $12,000 $12,000
Payroll Taxes $21,600 $23,400 $26,100
Other $0 $0 $0
Total Operating Expenses $204,020 $215,820 $236,520
Profit Before Interest and Taxes $20,730 $24,480 $25,680
EBITDA $22,950 $26,700 $27,900
Interest Expense $10,000 $10,000 $10,000
Taxes Incurred $3,219 $4,344 $4,704
Net Profit $7,511 $10,136 $10,976
Net Profit/Sales 3.20% 4.02% 3.99%

7.3 Projected Cash Flow

The table and chart show the projected cash flow for three years.

Electronics repair business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $235,000 $252,000 $275,000
Subtotal Cash from Operations $235,000 $252,000 $275,000
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 $0 $0 $0
Subtotal Cash Received $235,000 $252,000 $275,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $144,000 $156,000 $174,000
Bill Payments $74,582 $83,456 $87,462
Subtotal Spent on Operations $218,582 $239,456 $261,462
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $218,582 $239,456 $261,462
Net Cash Flow $16,418 $12,544 $13,538
Cash Balance $25,618 $38,162 $51,700

7.4 Projected Balance Sheet

The table shows the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $25,618 $38,162 $51,700
Other Current Assets $0 $0 $0
Total Current Assets $25,618 $38,162 $51,700
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $2,220 $4,440 $6,660
Total Long-term Assets $97,780 $95,560 $93,340
Total Assets $123,398 $133,722 $145,040
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $6,687 $6,875 $7,217
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $6,687 $6,875 $7,217
Long-term Liabilities $100,000 $100,000 $100,000
Total Liabilities $106,687 $106,875 $107,217
Paid-in Capital $50,000 $50,000 $50,000
Retained Earnings ($40,800) ($33,289) ($23,153)
Earnings $7,511 $10,136 $10,976
Total Capital $16,711 $26,847 $37,823
Total Liabilities and Capital $123,398 $133,722 $145,040
Net Worth $16,711 $26,847 $37,823

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7622, Radio and Television Repair, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 7.23% 9.13% 6.10%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 27.50%
Total Current Assets 20.76% 28.54% 35.65% 76.90%
Long-term Assets 79.24% 71.46% 64.35% 23.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.42% 5.14% 4.98% 36.90%
Long-term Liabilities 81.04% 74.78% 68.95% 15.80%
Total Liabilities 86.46% 79.92% 73.92% 52.70%
Net Worth 13.54% 20.08% 26.08% 47.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.64% 95.36% 95.35% 0.00%
Selling, General & Administrative Expenses 92.44% 91.33% 92.26% 83.50%
Advertising Expenses 0.85% 0.00% 0.00% 0.50%
Profit Before Interest and Taxes 8.82% 9.71% 9.34% 3.10%
Main Ratios
Current 3.83 5.55 7.16 2.26
Quick 3.83 5.55 7.16 1.47
Total Debt to Total Assets 86.46% 79.92% 73.92% 52.70%
Pre-tax Return on Net Worth 64.21% 53.94% 41.46% 7.00%
Pre-tax Return on Assets 8.70% 10.83% 10.81% 14.70%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 3.20% 4.02% 3.99% n.a
Return on Equity 44.95% 37.75% 29.02% n.a
Activity Ratios
Accounts Payable Turnover 12.15 12.17 12.17 n.a
Payment Days 27 30 29 n.a
Total Asset Turnover 1.90 1.88 1.90 n.a
Debt Ratios
Debt to Net Worth 6.38 3.98 2.83 n.a
Current Liab. to Liab. 0.06 0.06 0.07 n.a
Liquidity Ratios
Net Working Capital $18,931 $31,287 $44,483 n.a
Interest Coverage 2.07 2.45 2.57 n.a
Additional Ratios
Assets to Sales 0.53 0.53 0.53 n.a
Current Debt/Total Assets 5% 5% 5% n.a
Acid Test 3.83 5.55 7.16 n.a
Sales/Net Worth 14.06 9.39 7.27 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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
Sales
Service Contracts 0% $9,000 $11,000 $12,000 $12,000 $12,000 $12,000 $12,000 $11,000 $12,000 $11,000 $12,000 $11,000
Walk-In Customers 0% $4,000 $5,000 $7,000 $8,000 $9,000 $10,000 $8,000 $9,000 $10,000 $10,000 $9,000 $9,000
Total Sales $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Service Contracts $300 $400 $450 $400 $400 $450 $500 $500 $475 $575 $600 $500
Walk-In Customers $200 $200 $300 $350 $350 $400 $450 $450 $500 $500 $500 $500
Subtotal Direct Cost of Sales $500 $600 $750 $750 $750 $850 $950 $950 $975 $1,075 $1,100 $1,000
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
Richard Abbey 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
John Williamson 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Jim Logan 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
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 $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Direct Cost of Sales $500 $600 $750 $750 $750 $850 $950 $950 $975 $1,075 $1,100 $1,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $500 $600 $750 $750 $750 $850 $950 $950 $975 $1,075 $1,100 $1,000
Gross Margin $12,500 $15,400 $18,250 $19,250 $20,250 $21,150 $19,050 $19,050 $21,025 $19,925 $19,900 $19,000
Gross Margin % 96.15% 96.25% 96.05% 96.25% 96.43% 96.14% 95.25% 95.25% 95.57% 94.88% 94.76% 95.00%
Expenses
Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Sales and Marketing and Other Expenses $800 $800 $900 $1,000 $500 $400 $500 $500 $300 $600 $600 $500
Depreciation $185 $185 $185 $185 $185 $185 $185 $185 $185 $185 $185 $185
Leased Equipment $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $17,185 $17,185 $17,285 $17,385 $16,885 $16,785 $16,885 $16,885 $16,685 $16,985 $16,985 $16,885
Profit Before Interest and Taxes ($4,685) ($1,785) $965 $1,865 $3,365 $4,365 $2,165 $2,165 $4,340 $2,940 $2,915 $2,115
EBITDA ($4,500) ($1,600) $1,150 $2,050 $3,550 $4,550 $2,350 $2,350 $4,525 $3,125 $3,100 $2,300
Interest Expense $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Taxes Incurred ($1,655) ($786) $39 $309 $759 $1,060 $399 $399 $1,052 $632 $624 $384
Net Profit ($3,863) ($1,833) $92 $722 $1,772 $2,472 $932 $932 $2,455 $1,475 $1,457 $897
Net Profit/Sales -29.71% -11.46% 0.49% 3.61% 8.44% 11.24% 4.66% 4.66% 11.16% 7.02% 6.94% 4.49%

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 $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Subtotal Cash from Operations $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,000 $16,000 $19,000 $20,000 $21,000 $22,000 $20,000 $20,000 $22,000 $21,000 $21,000 $20,000
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 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Bill Payments $156 $4,710 $5,684 $6,735 $7,091 $7,053 $7,327 $6,883 $6,899 $7,360 $7,341 $7,343
Subtotal Spent on Operations $12,156 $16,710 $17,684 $18,735 $19,091 $19,053 $19,328 $18,883 $18,899 $19,360 $19,341 $19,343
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $12,156 $16,710 $17,684 $18,735 $19,091 $19,053 $19,328 $18,883 $18,899 $19,360 $19,341 $19,343
Net Cash Flow $844 ($710) $1,316 $1,265 $1,909 $2,947 $673 $1,117 $3,101 $1,640 $1,659 $657
Cash Balance $10,044 $9,334 $10,650 $11,915 $13,824 $16,771 $17,444 $18,561 $21,662 $23,302 $24,961 $25,618
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 $9,200 $10,044 $9,334 $10,650 $11,915 $13,824 $16,771 $17,444 $18,561 $21,662 $23,302 $24,961 $25,618
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $9,200 $10,044 $9,334 $10,650 $11,915 $13,824 $16,771 $17,444 $18,561 $21,662 $23,302 $24,961 $25,618
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Accumulated Depreciation $0 $185 $370 $555 $740 $925 $1,110 $1,295 $1,480 $1,665 $1,850 $2,035 $2,220
Total Long-term Assets $100,000 $99,815 $99,630 $99,445 $99,260 $99,075 $98,890 $98,705 $98,520 $98,335 $98,150 $97,965 $97,780
Total Assets $109,200 $109,859 $108,964 $110,095 $111,175 $112,899 $115,661 $116,149 $117,081 $119,997 $121,452 $122,926 $123,398
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 $0 $4,522 $5,460 $6,499 $6,856 $6,808 $7,098 $6,653 $6,653 $7,115 $7,096 $7,113 $6,687
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $4,522 $5,460 $6,499 $6,856 $6,808 $7,098 $6,653 $6,653 $7,115 $7,096 $7,113 $6,687
Long-term Liabilities $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Total Liabilities $100,000 $104,522 $105,460 $106,499 $106,856 $106,808 $107,098 $106,653 $106,653 $107,115 $107,096 $107,113 $106,687
Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800)
Earnings $0 ($3,863) ($5,696) ($5,603) ($4,881) ($3,109) ($637) $295 $1,227 $3,682 $5,157 $6,614 $7,511
Total Capital $9,200 $5,337 $3,504 $3,597 $4,319 $6,091 $8,563 $9,495 $10,427 $12,882 $14,357 $15,814 $16,711
Total Liabilities and Capital $109,200 $109,859 $108,964 $110,095 $111,175 $112,899 $115,661 $116,149 $117,081 $119,997 $121,452 $122,926 $123,398
Net Worth $9,200 $5,337 $3,504 $3,597 $4,319 $6,091 $8,563 $9,495 $10,427 $12,882 $14,357 $15,814 $16,711