All About People
Financial Plan
The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures. First year monthly tables are included in the appendix.
8.1 Important Assumptions
The financials of this plan are predicated on the following table of assumptions.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
| Tax Rate | 0.00% | 30.00% | 30.00% |
| Other | 0 | 0 | 0 |
8.2 Projected Profit and Loss
Profit and Loss figures are projected in this table.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $94,248 | $175,000 | $300,000 |
| Direct Cost of Sales | $0 | $0 | $0 |
| Placed Employees Payroll | $51,836 | $99,750 | $171,000 |
| Other | $0 | $0 | $0 |
| Total Cost of Sales | $51,836 | $99,750 | $171,000 |
| Gross Margin | $42,412 | $75,250 | $129,000 |
| Gross Margin % | 45.00% | 43.00% | 43.00% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $0 | $0 | $0 |
| Advertising/Promotion | $1,165 | $1,200 | $2,500 |
| Bank Service Charges | $1,019 | $1,000 | $1,500 |
| Contributions | $255 | $300 | $300 |
| Dues & Subscriptions | $887 | $250 | $500 |
| Total Sales and Marketing Expenses | $3,325 | $2,750 | $4,800 |
| Sales and Marketing % | 3.53% | 1.57% | 1.60% |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $10,929 | $25,000 | $30,000 |
| Marketing/Promotion | $6,516 | $6,500 | $12,800 |
| Depreciation | $0 | $0 | $0 |
| Telephone & Pager | $4,168 | $4,800 | $5,000 |
| Recruitment | $1,573 | $1,575 | $2,000 |
| Referral Fees | $170 | $250 | $500 |
| Rent | $6,102 | $9,600 | $10,000 |
| Office Supplies | $2,114 | $2,000 | $3,000 |
| Postage | $1,062 | $1,250 | $1,500 |
| Printing | $3,362 | $4,000 | $5,000 |
| Professional Fees | $6,941 | $5,000 | $7,500 |
| Payroll Taxes | $0 | $0 | $0 |
| Maintenance and Repairs | $311 | $750 | $2,000 |
| Total General and Administrative Expenses | $43,248 | $60,725 | $79,300 |
| General and Administrative % | 45.89% | 34.70% | 26.43% |
| Other Expenses: | |||
| Other Payroll | $0 | $0 | $0 |
| Consultants | $0 | $0 | $0 |
| Misc. | $1,050 | $500 | $1,000 |
| Total Other Expenses | $1,050 | $500 | $1,000 |
| Other % | 1.11% | 0.29% | 0.33% |
| Total Operating Expenses | $47,623 | $63,975 | $85,100 |
| Profit Before Interest and Taxes | ($5,212) | $11,275 | $43,900 |
| EBITDA | ($5,212) | $11,275 | $43,900 |
| Interest Expense | $3,046 | $2,678 | $2,363 |
| Taxes Incurred | $0 | $2,579 | $12,461 |
| Net Profit | ($8,257) | $6,018 | $29,076 |
| Net Profit/Sales | -8.76% | 3.44% | 9.69% |
8.3 Projected Cash Flow
Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $23,562 | $43,750 | $75,000 |
| Cash from Receivables | $58,112 | $120,477 | $208,324 |
| Subtotal Cash from Operations | $81,674 | $164,227 | $283,324 |
| 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 | $10,000 | $20,000 | $0 |
| Subtotal Cash Received | $91,674 | $184,227 | $283,324 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $62,765 | $124,750 | $201,000 |
| Bill Payments | $37,123 | $43,357 | $67,812 |
| Subtotal Spent on Operations | $99,888 | $168,107 | $268,812 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $2,720 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $4,500 | $4,500 | $4,500 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $107,108 | $172,607 | $273,312 |
| Net Cash Flow | ($15,434) | $11,620 | $10,012 |
| Cash Balance | $30,566 | $42,186 | $52,199 |
8.4 Projected Balance Sheet
Three year annual balance sheets estimates appear below.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $30,566 | $42,186 | $52,199 |
| Accounts Receivable | $12,573 | $23,346 | $40,022 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $43,139 | $65,533 | $92,221 |
| Long-term Assets | |||
| Long-term Assets | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 |
| Total Assets | $43,139 | $65,533 | $92,221 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $2,761 | $3,635 | $5,747 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $2,761 | $3,635 | $5,747 |
| Long-term Liabilities | $40,500 | $36,000 | $31,500 |
| Total Liabilities | $43,261 | $39,635 | $37,247 |
| Paid-in Capital | $17,600 | $37,600 | $37,600 |
| Retained Earnings | ($9,464) | ($17,721) | ($11,703) |
| Earnings | ($8,257) | $6,018 | $29,076 |
| Total Capital | ($121) | $25,897 | $54,973 |
| Total Liabilities and Capital | $43,139 | $65,533 | $92,221 |
| Net Worth | ($121) | $25,897 | $54,973 |
8.5 Business Ratios
The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 85.68% | 71.43% | 9.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 29.15% | 35.63% | 43.40% | 28.80% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 44.00% |
| Total Current Assets | 100.00% | 100.00% | 100.00% | 76.30% |
| Long-term Assets | 0.00% | 0.00% | 0.00% | 23.70% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 6.40% | 5.55% | 6.23% | 44.00% |
| Long-term Liabilities | 93.88% | 54.93% | 34.16% | 17.50% |
| Total Liabilities | 100.28% | 60.48% | 40.39% | 61.50% |
| Net Worth | -0.28% | 39.52% | 59.61% | 38.50% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 45.00% | 43.00% | 43.00% | 0.00% |
| Selling, General & Administrative Expenses | #NAME? | 39.56% | 33.31% | 82.20% |
| Advertising Expenses | 1.24% | 0.69% | 0.83% | 1.50% |
| Profit Before Interest and Taxes | -5.53% | 6.44% | 14.63% | 2.40% |
| Main Ratios | ||||
| Current | 15.63 | 18.03 | 16.05 | 1.64 |
| Quick | 15.63 | 18.03 | 16.05 | 1.31 |
| Total Debt to Total Assets | 100.28% | 60.48% | 40.39% | 61.50% |
| Pre-tax Return on Net Worth | 6817.49% | 33.20% | 75.56% | 4.40% |
| Pre-tax Return on Assets | -19.14% | 13.12% | 45.04% | 11.50% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | -8.76% | 3.44% | 9.69% | n.a |
| Return on Equity | 0.00% | 23.24% | 52.89% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 5.62 | 5.62 | 5.62 | n.a |
| Collection Days | 57 | 50 | 51 | n.a |
| Accounts Payable Turnover | 14.40 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 26 | 24 | n.a |
| Total Asset Turnover | 2.18 | 2.67 | 3.25 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.00 | 1.53 | 0.68 | n.a |
| Current Liab. to Liab. | 0.06 | 0.09 | 0.15 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $40,379 | $61,897 | $86,473 | n.a |
| Interest Coverage | -1.71 | 4.21 | 18.58 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.46 | 0.37 | 0.31 | n.a |
| Current Debt/Total Assets | 6% | 6% | 6% | n.a |
| Acid Test | 11.07 | 11.60 | 9.08 | n.a |
| Sales/Net Worth | 0.00 | 6.76 | 5.46 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
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