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Hamlin and Park Design

Executive Summary

The city of Claremont has been growing by 6% annually for the past five years. Currently, the city’s population is 700,000. Most importantly, the greatest population increase is in southwest Claremont which is the city’s most affluent area. The population of southwest Claremont has grown by 20% the past two years. The 80,000 residents of the area have an average income of $200,000 and the average home is valued at $350,000. The new construction in southwest section of the city is valued at 600 million dollars in home sales next year alone. Growth in the area has also generated increase remodeling of existing homes. Last year, remodeling projects were up 20% over the previous year and accounted for $20 million paid for remodeling services in the area.

The building and remodeling in southwest Claremont has increased the demand for interior design services. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Forecasts for next year predict that there will be an increase of 11% in sales.

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

  • On-site consultations;
  • Project survey & analysis;
  • Space planning & furniture arrangement;
  • Design concepts;
  • Finishes & furnishings;
  • Custom designs;
  • Purchasing, delivery, & installation;
  • Project coordination & management.

Courtney Hamlin and Katherine Park have ten years of experience with the city’s top interior designs firms.  Both have been successful is creating a base of former clients that will refer new business to the designers.

Home interior design business plan, executive summary chart image

1.1 Objectives

Hamlin and Park Design offers a wide range of interior design services to meet any client’s needs in southwest Claremont.

The primary objectives of our firm are to:

  • Exceed customers’ expectations for service and product.
  • Increase the number of clients served by 15% per year through superior performance.
  • Develop a sustainable start-up business that is profitable.

1.2 Mission

Hamlin and Park Design’s mission is to assure superior customer service by doing the following:

  • Open communication with clients. The explanation of the “pros and cons” of different selections and design options are discussed in detail.
  • Include the client in every stage of the design process.
  • Exceed the customer’s expectations for the project.
  • Maintain continuing education of the latest development and innovations in the interior design field.
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Company Summary

Courtney Hamlin and Katherine Park will start Hamlin and Parks Design to offer a wide range of interior design services to clients in southwest Claremont. The company has a high level of expertise in interior design and will provide superior personal services to all clients. Courtney and Katherine take pride in knowing that 50% of their business comes from repeat clients and their referrals.

Our responsibility as interior design professionals is to take the client’s design goals and utilize our skills and resources to exceed the client’s expectations for service, value, functionality, and beauty.

2.1 Company Ownership

The owners and designers of Hamlin and Park Design are Courtney Hamlin and Katherine Park.

2.2 Start-up Summary

Courtney Hamlin and Katherine Park will invest $60,000 in Hamlin and Park Design. They will also secure a $50,000 loan.

The following table and chart show projected initial start-up costs for Hamlin and Park Design.

Home interior design business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $20,550
Start-up Assets to Fund $79,450
Total Funding Required $100,000
Assets
Non-cash Assets from Start-up $20,000
Cash Requirements from Start-up $59,450
Additional Cash Raised $0
Cash Balance on Starting Date $59,450
Total Assets $79,450
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $30,000
Accounts Payable (Outstanding Bills) $10,000
Other Current Liabilities (interest-free) $0
Total Liabilities $40,000
Capital
Planned Investment
Investor 1 $30,000
Investor 2 $30,000
Additional Investment Requirement $0
Total Planned Investment $60,000
Loss at Start-up (Start-up Expenses) ($20,550)
Total Capital $39,450
Total Capital and Liabilities $79,450
Total Funding $100,000
Start-up
Requirements
Start-up Expenses
Legal $900
Stationery etc. $2,000
Brochures $4,000
Insurance $200
Rent $3,000
Answering Service $200
Utilities Start Up $250
Office Furnishings $4,000
Expensed Equipment $3,000
Business Software $2,000
Office Supplies $1,000
Total Start-up Expenses $20,550
Start-up Assets
Cash Required $59,450
Other Current Assets $20,000
Long-term Assets $0
Total Assets $79,450
Total Requirements $100,000

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Services

Hamlin and Park Design will offers a wide range of interior design services to meet any client’s needs in southwest Claremont:

  • On-site Consultations: Convenient consultations for busy homeowners and professionals are offered at the home or office. The consultation will include all necessary product samples for clients for review, thus eliminating the hassle of having to visit numerous stores for different products.
  • Project Survey and Analysis: Each site is inspected for its layout and function. In-depth client interviews are conducted to determine all necessary requirements for the project. This information is then analyzed for design concepts and space planning.
  • Design Concepts: The design concept can begin with a treasured piece of fabric or furniture, or simply a blank page. The goal is to attain the “look” and “feel” a client wants, from “light and airy” to “rich and elegant” to “comfortable and cozy.” Each project develops its own flavor from the unique selection of fabrics, furniture, and finishes.
  • Finishes and Furnishings: There are many factors to consider when selecting furniture and finishes. Hamlin and Park Design’s expertise and guidance helps clients make the best selections for their needs. Creativity is also applied in the selection process to create the desired look.
  • Custom Designs: Custom furniture, built-ins, and window treatments are also available through the talents of Hamlin and Park Design. Detailed drawings are prepared to help clients visualize the finished piece.
  • Purchasing, Delivery, & Installation: Once final selections are made, Hamlin and Park Design assumes all responsibility for coordinating the purchasing, delivery and installation of the entire project.
  • Project Coordination & Management: Some projects require a certain sequence of installation for maximizing results. Hamlin and Park Design coordinates all aspects of these projects to ensure smooth transitions from each phase until project completion.
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Market Analysis Summary

Due to the strengthening of the area’s economy, more southwest Claremont homeowners are exploring interior design to improve their homes’ beauty and charm. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Approximately, 75% of the sales were located in southwest Claremont. Forecasts for next year predict that there will be an increase of 11% in sales. This demand for interior design services is a tremendous opportunity. Hamlin and Park Design is poised to take advantage of these changes, and expects to become a recognized name and profitable entity in the city’s interior design market.

4.1 Market Segmentation

The customers that Hamlin and Park Design will be serving can be divided into three groups:

  • New Home Construction: Hamlin and Park Design will compete for the interior design projects associated with new homes. Contracted consulting responsibilities with the builders can include one or more of the companies services, i.e. strategic planning, master planning, and lighting, floor or carpet design.
  • Remodeling Projects: These projects have some of the same characteristics as new home construction (i.e. working as a consultant with builders) but can also include greater control over all aspect of the project.
  • Interior Design of Existing Home: Hamlin and Park Design will control all aspects of these projects.
Home interior design business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
New Home Construction 6% 1,500 1,590 1,685 1,786 1,893 5.99%
Remodeling Projects 10% 3,000 3,300 3,630 3,993 4,392 10.00%
Interior Design of Existing Home 8% 2,000 2,160 2,333 2,520 2,722 8.01%
Total 8.50% 6,500 7,050 7,648 8,299 9,007 8.50%

4.2 Competitive Edge

Hamlin and Park Design’s competitive edge is that both Courtney Hamlin and Katherine Park are highly successful interior designers with a loyal customer base. Courtney has been a Project Manager with Sullivan and Associates for five years. During that time she has established strong relationships with builders and vendors which will prove beneficial in the coming years. For the past six years, Katherine has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont. Together, Courtney and Katherine have the skills, resources and experience to be build on the base of 1,000 satisfied customers.

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Strategy and Implementation Summary

Hamlin and Park will focus on the interior design needs in the southwest section of the city. Our target customers will be the affluent residents of southwest Claremont.

5.1 Sales Strategy

The following is the sales strategy Hamlin and Park Design will employ on the three target customer groups:

  • New Home Construction/Remodeling Projects: Courtney Hamlin already has a strong professional relationship with the dominant builders/remodelers in southwest Claremont. She will meet with them directly and pitch the consulting services of Hamlin and Park Design. 
  • Interior Design of Existing Home: Visibility with the customer base is the most important marketing activity Hamlin and Park Design will follow. Southwest Claremont has five homeowner associations that meet regularly. In the past both Courtney and Katherine have made presentations on interior design issues. They will continue this service to the community to raise the visibility of Hamlin and Park Design.

5.1.1 Sales Forecast

The following table and chart will forecast sales for the next three years.

Home interior design business plan, strategy and implementation summary chart image

Home interior design business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Remodeling Projects $87,672 $96,685 $108,200
New Home Construction $41,000 $45,280 $47,300
Interior Design of Existing Home $90,739 $97,800 $105,000
Total Sales $219,411 $239,765 $260,500
Direct Cost of Sales Year 1 Year 2 Year 3
Remodeling Projects $8,634 $9,500 $10,000
New Home Construction $5,500 $6,300 $7,000
Interior Design of Existing Home $9,091 $10,000 $10,000
Subtotal Direct Cost of Sales $23,225 $25,800 $27,000

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Management Summary

Hamlin and Park is a two member interior design firm. Both designers are equal partners in the firm.

  • Courtney Hamlin began her passion for the arts at a young age. Upon graduating from State University, Courtney secured an office management position at a local commercial and residential interior design firm. This position afforded her the learning experience of overseeing all aspects of design projects; from preparing proposals, to scheduling and coordinating all phases of a project. After five years of managing the design firm, Courtney returned to school for an Associates Degree in Interior Design. After completing her Interior Design degree, Courtney became a designer and project manager for Sullivan and Associates.
  • Katherine Park received a B.A. in Art from State University.  She continued her education at the Art Institute of Monroe and obtained a degree in Interior Design.  She has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont.

6.1 Personnel Plan

The staff of Hamlin and Park Design will be its co-owners Courtney Hamlin and Katherine Park.

Personnel Plan
Year 1 Year 2 Year 3
Courtney Hamlin $48,000 $54,000 $60,000
Katherine Park $48,000 $54,000 $60,000
Total People 2 2 2
Total Payroll $96,000 $108,000 $120,000

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Financial Plan

The following is the financial plan for Hamlin and Park Design.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.
  • We assume, of course, that there are no unforeseen changes in the economy that would change our estimations.
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 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

7.2 Break-even Analysis

The following table and chart will summarize our break-even analysis. The monthly break-even point is approximately $14,800.

Home interior design business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $14,874
Assumptions:
Average Percent Variable Cost 11%
Estimated Monthly Fixed Cost $13,300

7.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table and charts.

Home interior design business plan, financial plan chart image

Home interior design business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $219,411 $239,765 $260,500
Direct Cost of Sales $23,225 $25,800 $27,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $23,225 $25,800 $27,000
Gross Margin $196,186 $213,965 $233,500
Gross Margin % 89.41% 89.24% 89.64%
Expenses
Payroll $96,000 $108,000 $120,000
Sales and Marketing and Other Expenses $6,000 $7,000 $10,000
Depreciation $0 $0 $0
Leased Equipment $2,400 $2,400 $2,400
Utilities $2,400 $2,400 $2,400
Insurance $2,400 $2,400 $2,400
Rent $36,000 $36,000 $36,000
Payroll Taxes $14,400 $16,200 $18,000
Other $0 $0 $0
Total Operating Expenses $159,600 $174,400 $191,200
Profit Before Interest and Taxes $36,586 $39,565 $42,300
EBITDA $36,586 $39,565 $42,300
Interest Expense $2,643 $2,010 $1,350
Taxes Incurred $10,183 $11,267 $12,285
Net Profit $23,760 $26,289 $28,665
Net Profit/Sales 10.83% 10.96% 11.00%

7.4 Projected Cash Flow

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.

Home interior design business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $109,706 $119,883 $130,250
Cash from Receivables $101,608 $119,131 $129,485
Subtotal Cash from Operations $211,313 $239,014 $259,735
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 $211,313 $239,014 $259,735
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $96,000 $108,000 $120,000
Bill Payments $105,544 $100,914 $111,312
Subtotal Spent on Operations $201,544 $208,914 $231,312
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 $6,600 $6,600 $6,600
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $208,144 $215,514 $237,912
Net Cash Flow $3,170 $23,500 $21,822
Cash Balance $62,620 $86,119 $107,942

7.5 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 $62,620 $86,119 $107,942
Accounts Receivable $8,098 $8,849 $9,614
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $90,717 $114,968 $137,556
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $90,717 $114,968 $137,556
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $4,107 $8,669 $9,192
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,107 $8,669 $9,192
Long-term Liabilities $23,400 $16,800 $10,200
Total Liabilities $27,507 $25,469 $19,392
Paid-in Capital $60,000 $60,000 $60,000
Retained Earnings ($20,550) $3,210 $29,499
Earnings $23,760 $26,289 $28,665
Total Capital $63,210 $89,499 $118,164
Total Liabilities and Capital $90,717 $114,968 $137,556
Net Worth $63,210 $89,499 $118,164

7.6 Business Ratios

The following table provides important ratios for the real estate industry, as determined by the Standard Industry Classification (SIC) Index, 8999, Services.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 9.28% 8.65% 8.50%
Percent of Total Assets
Accounts Receivable 8.93% 7.70% 6.99% 20.90%
Other Current Assets 22.05% 17.40% 14.54% 55.70%
Total Current Assets 100.00% 100.00% 100.00% 81.60%
Long-term Assets 0.00% 0.00% 0.00% 18.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.53% 7.54% 6.68% 48.20%
Long-term Liabilities 25.79% 14.61% 7.42% 15.50%
Total Liabilities 30.32% 22.15% 14.10% 63.70%
Net Worth 69.68% 77.85% 85.90% 36.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 89.41% 89.24% 89.64% 0.00%
Selling, General & Administrative Expenses 78.59% 78.28% 78.63% 82.60%
Advertising Expenses 2.73% 2.92% 3.84% 0.60%
Profit Before Interest and Taxes 16.67% 16.50% 16.24% 1.50%
Main Ratios
Current 22.09 13.26 14.96 1.57
Quick 22.09 13.26 14.96 1.13
Total Debt to Total Assets 30.32% 22.15% 14.10% 63.70%
Pre-tax Return on Net Worth 53.70% 41.96% 34.66% 1.90%
Pre-tax Return on Assets 37.42% 32.67% 29.77% 5.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 10.83% 10.96% 11.00% n.a
Return on Equity 37.59% 29.37% 24.26% n.a
Activity Ratios
Accounts Receivable Turnover 13.55 13.55 13.55 n.a
Collection Days 59 26 26 n.a
Accounts Payable Turnover 24.26 12.17 12.17 n.a
Payment Days 30 22 29 n.a
Total Asset Turnover 2.42 2.09 1.89 n.a
Debt Ratios
Debt to Net Worth 0.44 0.28 0.16 n.a
Current Liab. to Liab. 0.15 0.34 0.47 n.a
Liquidity Ratios
Net Working Capital $86,610 $106,299 $128,364 n.a
Interest Coverage 13.85 19.68 31.33 n.a
Additional Ratios
Assets to Sales 0.41 0.48 0.53 n.a
Current Debt/Total Assets 5% 8% 7% n.a
Acid Test 20.12 12.24 13.92 n.a
Sales/Net Worth 3.47 2.68 2.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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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
Remodeling Projects 0% $2,100 $2,200 $3,020 $6,000 $8,500 $12,000 $14,000 $18,000 $10,022 $5,210 $3,820 $2,800
New Home Construction 0% $0 $0 $2,000 $3,000 $4,000 $5,000 $7,000 $8,000 $5,000 $3,000 $2,000 $2,000
Interior Design of Existing Home 0% $3,000 $3,000 $4,240 $6,300 $9,000 $11,000 $14,000 $17,000 $13,000 $4,322 $3,222 $2,655
Total Sales $5,100 $5,200 $9,260 $15,300 $21,500 $28,000 $35,000 $43,000 $28,022 $12,532 $9,042 $7,455
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
Remodeling Projects $0 $230 $433 $630 $950 $1,201 $1,550 $1,700 $850 $530 $300 $260
New Home Construction $0 $0 $300 $400 $500 $600 $700 $900 $800 $600 $400 $300
Interior Design of Existing Home $0 $320 $590 $800 $1,002 $1,202 $1,409 $1,650 $1,200 $390 $280 $248
Subtotal Direct Cost of Sales $0 $550 $1,323 $1,830 $2,452 $3,003 $3,659 $4,250 $2,850 $1,520 $980 $808
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
Courtney Hamlin 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
Katherine Park 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
Total People 2 2 2 2 2 2 2 2 2 2 2 2
Total Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

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 $5,100 $5,200 $9,260 $15,300 $21,500 $28,000 $35,000 $43,000 $28,022 $12,532 $9,042 $7,455
Direct Cost of Sales $0 $550 $1,323 $1,830 $2,452 $3,003 $3,659 $4,250 $2,850 $1,520 $980 $808
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $550 $1,323 $1,830 $2,452 $3,003 $3,659 $4,250 $2,850 $1,520 $980 $808
Gross Margin $5,100 $4,650 $7,937 $13,470 $19,048 $24,997 $31,341 $38,750 $25,172 $11,012 $8,062 $6,647
Gross Margin % 100.00% 89.42% 85.71% 88.04% 88.60% 89.28% 89.55% 90.12% 89.83% 87.87% 89.16% 89.16%
Expenses
Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Sales and Marketing and Other Expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300
Profit Before Interest and Taxes ($8,200) ($8,650) ($5,363) $170 $5,748 $11,697 $18,041 $25,450 $11,872 ($2,288) ($5,238) ($6,653)
EBITDA ($8,200) ($8,650) ($5,363) $170 $5,748 $11,697 $18,041 $25,450 $11,872 ($2,288) ($5,238) ($6,653)
Interest Expense $245 $241 $236 $232 $227 $223 $218 $213 $209 $204 $200 $195
Taxes Incurred ($2,534) ($2,667) ($1,680) ($18) $1,656 $3,442 $5,347 $7,571 $3,499 ($748) ($1,631) ($2,054)
Net Profit ($5,912) ($6,224) ($3,919) ($43) $3,865 $8,032 $12,476 $17,666 $8,164 ($1,745) ($3,806) ($4,794)
Net Profit/Sales -115.92% -119.68% -42.33% -0.28% 17.98% 28.69% 35.65% 41.08% 29.14% -13.92% -42.10% -64.30%

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 $2,550 $2,600 $4,630 $7,650 $10,750 $14,000 $17,500 $21,500 $14,011 $6,266 $4,521 $3,728
Cash from Receivables $0 $85 $2,552 $2,668 $4,731 $7,753 $10,858 $14,117 $17,633 $21,250 $13,753 $6,208
Subtotal Cash from Operations $2,550 $2,685 $7,182 $10,318 $15,481 $21,753 $28,358 $35,617 $31,644 $27,516 $18,274 $9,935
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 $2,550 $2,685 $7,182 $10,318 $15,481 $21,753 $28,358 $35,617 $31,644 $27,516 $18,274 $9,935
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 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Bill Payments $10,100 $3,026 $3,482 $5,252 $7,420 $9,713 $12,053 $14,618 $17,152 $11,672 $6,229 $4,828
Subtotal Spent on Operations $18,100 $11,026 $11,482 $13,252 $15,420 $17,713 $20,053 $22,618 $25,152 $19,672 $14,229 $12,828
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 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550
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 $18,650 $11,576 $12,032 $13,802 $15,970 $18,263 $20,603 $23,168 $25,702 $20,222 $14,779 $13,378
Net Cash Flow ($16,100) ($8,891) ($4,850) ($3,484) ($489) $3,490 $7,755 $12,449 $5,943 $7,295 $3,495 ($3,443)
Cash Balance $43,350 $34,459 $29,609 $26,125 $25,636 $29,126 $36,881 $49,330 $55,273 $62,568 $66,063 $62,620
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 $59,450 $43,350 $34,459 $29,609 $26,125 $25,636 $29,126 $36,881 $49,330 $55,273 $62,568 $66,063 $62,620
Accounts Receivable $0 $2,550 $5,065 $7,143 $12,126 $18,145 $24,392 $31,033 $38,417 $34,794 $19,810 $10,578 $8,098
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $79,450 $65,900 $59,524 $56,752 $58,250 $63,781 $73,518 $87,915 $107,747 $110,067 $102,378 $96,641 $90,717
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $79,450 $65,900 $59,524 $56,752 $58,250 $63,781 $73,518 $87,915 $107,747 $110,067 $102,378 $96,641 $90,717
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 $10,000 $2,911 $3,309 $5,007 $7,098 $9,314 $11,569 $14,040 $16,757 $11,462 $6,067 $4,687 $4,107
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 $10,000 $2,911 $3,309 $5,007 $7,098 $9,314 $11,569 $14,040 $16,757 $11,462 $6,067 $4,687 $4,107
Long-term Liabilities $30,000 $29,450 $28,900 $28,350 $27,800 $27,250 $26,700 $26,150 $25,600 $25,050 $24,500 $23,950 $23,400
Total Liabilities $40,000 $32,361 $32,209 $33,357 $34,898 $36,564 $38,269 $40,190 $42,357 $36,512 $30,567 $28,637 $27,507
Paid-in Capital $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Retained Earnings ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550) ($20,550)
Earnings $0 ($5,912) ($12,135) ($16,055) ($16,098) ($12,233) ($4,201) $8,275 $25,941 $34,105 $32,360 $28,554 $23,760
Total Capital $39,450 $33,538 $27,315 $23,395 $23,352 $27,217 $35,249 $47,725 $65,391 $73,555 $71,810 $68,004 $63,210
Total Liabilities and Capital $79,450 $65,900 $59,524 $56,752 $58,250 $63,781 $73,518 $87,915 $107,747 $110,067 $102,378 $96,641 $90,717
Net Worth $39,450 $33,538 $27,315 $23,395 $23,352 $27,217 $35,249 $47,725 $65,391 $73,555 $71,810 $68,004 $63,210

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