- Growth will be moderate.
- Costs will be managed and forecasts for future needs will be performed on a regular basis.
- Finding the right product, at the right price will enable the business to meet planned margins and maintain inventory at an acceptable level.
7.1 Important Assumptions
Key assumptions are:
- We do not sell anything on credit.
- We assume the continued popularity of collectibles.
- We assume access to financing sufficient to maintain our financial plan as shown in the tables.
7.2 Projected Profit and Loss
The following table shows our planned three-year profit and loss estimates. We expect to have a gross margin percent above 40% our first year, which will continue to grow in years two and three.
The associated charts show that we will have a negative profit/sales percentage for the first two years with a positive net profit by year three.
7.3 Break-even Analysis
The following table and chart show our estimated monthly revenue break-even point.
7.4 Projected Cash Flow
The following table and chart represents the projected cash flow.
7.5 Projected Balance Sheet
The following table shows our projected Balance Sheet.
7.6 Business Ratios
The following table outlines some of the more important ratios from the Gift Shop industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5947.