Greek Golf Training Center
Financial Plan
We are assuming start-up will be financed by the investors and continued financing will come through long-term loan (interest rate around 7%).
8.1 Important Assumptions
The financial plan depends on important assumptions. The monthly assumptions are included in the appendix. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the important underlying assumptions are:
- We assume a slow growth economy, without major recession.
- We assume the rate of growth for the number of golf memberships will continue.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 12.00% | 12.00% | 12.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
Tax Rate | 34.58% | 35.00% | 34.58% |
Personnel Burden | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
8.2 Break-even Analysis
For our Break-even Analysis, we assume monthly running costs which include our full payroll, rent, and utilities, and an estimation of other running costs.
Margins are harder to assume.
The table shows what we need to sell per month to break-even, according to these assumptions. This is about two-thirds of our planned sales level, so we believe we can maintain it.
It should be emphasized that revenue from equipment selling, beverage, sponsorship and equipment rental is not taken into account in order to cover the worst case.

Break-even Analysis | |
Monthly Revenue Break-even | $19,756 |
Assumptions: | |
Average Percent Variable Cost | 12% |
Estimated Monthly Fixed Cost | $17,429 |
8.3 Projected Profit and Loss
Our projected profit and loss is shown on the Profit and Loss table. We show a conservative estimated net profit in the first year. According to the research carried out by our team, these projections are conservative and should be easily attained. The monthly estimates are included in the appendix.




Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $239,150 | $345,525 | $503,768 |
Direct Cost of Sales | $28,165 | $42,345 | $63,440 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $28,165 | $42,345 | $63,440 |
Gross Margin | $210,985 | $303,180 | $440,328 |
Gross Margin % | 88.22% | 87.74% | 87.41% |
Expenses | |||
Payroll | $109,000 | $157,650 | $194,231 |
Sales and Marketing and Other Expenses | $6,000 | $12,000 | $18,000 |
Depreciation | $15,000 | $15,000 | $15,000 |
Rent (site) | $48,000 | $48,000 | $48,000 |
Supplies (Office & Janitorial) | $1,200 | $1,200 | $1,200 |
Web Site Expenses | $600 | $660 | $725 |
Utilities | $3,000 | $3,300 | $3,630 |
Insurance (fire,damages, loss) | $10,000 | $3,300 | $3,630 |
Payroll Taxes | $16,350 | $9,545 | $10,022 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $209,150 | $250,655 | $294,438 |
Profit Before Interest and Taxes | $23,435 | $52,525 | $145,890 |
EBITDA | $38,435 | $67,525 | $160,890 |
Interest Expense | $9,573 | $9,030 | $8,330 |
Taxes Incurred | $5,451 | $15,223 | $47,573 |
Net Profit | $8,411 | $28,272 | $89,987 |
Net Profit/Sales | 3.52% | 8.18% | 17.86% |
8.4 Projected Cash Flow
The following cash flow projections show our annual amounts only. For more detailed monthly projections please see the appendix.
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $239,150 | $345,525 | $503,768 |
Subtotal Cash from Operations | $239,150 | $345,525 | $503,768 |
Additional Cash Received | |||
Non Operating (Other) Income | $21,600 | $0 | $0 |
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 | $260,750 | $345,525 | $503,768 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $109,000 | $157,650 | $194,231 |
Bill Payments | $108,669 | $152,388 | $199,623 |
Subtotal Spent on Operations | $217,669 | $310,038 | $393,854 |
Additional Cash Spent | |||
Non Operating (Other) Expense | $0 | $0 | $0 |
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 | $6,000 | $10,000 | $10,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $223,669 | $320,038 | $403,854 |
Net Cash Flow | $37,081 | $25,487 | $99,914 |
Cash Balance | $51,081 | $76,568 | $176,482 |
8.5 Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $51,081 | $76,568 | $176,482 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $51,081 | $76,568 | $176,482 |
Long-term Assets | |||
Long-term Assets | $65,000 | $65,000 | $65,000 |
Accumulated Depreciation | $15,000 | $30,000 | $45,000 |
Total Long-term Assets | $50,000 | $35,000 | $20,000 |
Total Assets | $101,081 | $111,568 | $196,482 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $19,670 | $11,885 | $16,812 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $19,670 | $11,885 | $16,812 |
Long-term Liabilities | $134,000 | $124,000 | $114,000 |
Total Liabilities | $153,670 | $135,885 | $130,812 |
Paid-in Capital | $200,000 | $200,000 | $200,000 |
Retained Earnings | ($261,000) | ($252,589) | ($224,317) |
Earnings | $8,411 | $28,272 | $89,987 |
Total Capital | ($52,589) | ($24,317) | $65,670 |
Total Liabilities and Capital | $101,081 | $111,568 | $196,482 |
Net Worth | ($52,589) | ($24,317) | $65,670 |
8.6 Business Ratios
The table follows with our main business ratios. These are compared with the Industry Profile ratios as determined for the Golf Course Industry, NAICS code 713910. We do intend to improve gross margin, and inventory turnover.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 44.48% | 45.80% | 4.07% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 35.65% |
Total Current Assets | 50.53% | 68.63% | 89.82% | 46.58% |
Long-term Assets | 49.47% | 31.37% | 10.18% | 53.42% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 19.46% | 10.65% | 8.56% | 25.61% |
Long-term Liabilities | 132.57% | 111.14% | 58.02% | 35.91% |
Total Liabilities | 152.03% | 121.80% | 66.58% | 61.52% |
Net Worth | -52.03% | -21.80% | 33.42% | 38.48% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 88.22% | 87.74% | 87.41% | 100.00% |
Selling, General & Administrative Expenses | 81.36% | 79.71% | 69.85% | 72.53% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 3.68% |
Profit Before Interest and Taxes | 9.80% | 15.20% | 28.96% | 1.60% |
Main Ratios | ||||
Current | 2.60 | 6.44 | 10.50 | 1.32 |
Quick | 2.60 | 6.44 | 10.50 | 0.85 |
Total Debt to Total Assets | 152.03% | 121.80% | 66.58% | 65.83% |
Pre-tax Return on Net Worth | -26.36% | -178.87% | 209.47% | 2.41% |
Pre-tax Return on Assets | 13.71% | 38.99% | 70.01% | 7.06% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 3.52% | 8.18% | 17.86% | n.a |
Return on Equity | 0.00% | 0.00% | 137.03% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 6.52 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 40 | 26 | n.a |
Total Asset Turnover | 2.37 | 3.10 | 2.56 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 0.00 | 1.99 | n.a |
Current Liab. to Liab. | 0.13 | 0.09 | 0.13 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $31,411 | $64,683 | $159,670 | n.a |
Interest Coverage | 2.45 | 5.82 | 17.51 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.42 | 0.32 | 0.39 | n.a |
Current Debt/Total Assets | 19% | 11% | 9% | n.a |
Acid Test | 2.60 | 6.44 | 10.50 | n.a |
Sales/Net Worth | 0.00 | 0.00 | 7.67 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |