Equine Acres
Financial Plan
A note of critical importance to any potential lender or investor reviewing this business plan:
- Upon securing funding for this project, EquineAcres will utilize almost 100% of the funding to purchase undeveloped land, and then develop that land. The development of the land will be done in such a way as to vastly improve the value of the land to a point at which the entire loan/investment amount is entirely recoverable, perhaps even profitable, through resale of the improved land, buildings, and equipment (worse case scenario). This funding request should therefore be considered as “secured.”
The financial plan for EquineAcres is presented herein for your review. From a high level it reflects several key factors:
- Profitability.
- Solid cash flow.
- Sufficient profit and cash flow to cushion against unforseen challenges.
- Solid growth expectations based on conservative estimates:
- NOTE 1: Contrary to common business plan creation, this business plan has been created with conservative growth and sales expectations. Given the professional sales expertise and industry knowledge of the owner, sales and profitability are expected to surpass that which has been presented herein.
- NOTE 2: The EquineAcres concept has every potential to quickly expand into multiple facilities serving multiple markets, however these opportunities are not reflected in this business plan. Once the initial EquineAcres (*1) is open, operating, and confirmed, additional facilities will be considered in direct cooperation with the initial lender/investor. Creation of these additional facilities (EqineAcres*2, EquineAcres*3, etc.) create the opportunity for exponential growth, profitability, and investor return. It is even within the realm of reason to envision a “franchise” approach spanning the United States.
The financial plan for EquineAcres has been assembled from a variety of sources which include:
- Extensive professional business experience in sales, sales management, marketing, forecasting, and operational management.
- Extensive experience in, knowledge of, and business contacts within, the equine marketplace.
- Reliance upon the software program used to create this business plan for general assumption calculations.
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See section on Management Gaps. The writer of this business plan, and future owner of EquineAcres, has identified a knowledge gap in basic accounting principles (to be resolved through external consultants and self education). Any apparent errors in the following tables and charts should be attributed to this knowledge gap. Professional assistance in reformatting this table to accurately reflect actual calculations is welcomed.
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7.1 Important Assumptions
Important notes about the General Assumptions table: All calculations contained in the attached table are those recommended by the software program (Business Plan Pro) used to create this business plan. Future reformatting of this table based on actual values will be welcome and completed with the assistance of potential lenders/investors.
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 | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
7.2 Key Financial Indicators
Important notes about Benchmarks:
- The attached Benchmarks chart is assembled from data contained throughout this business plan. Refer to all other sections for detailed information validating the Benchmark result.
- This is a self-calculating chart; future modifications in cooperation with lender/investors will automatically update this chart to reflect changes made elsewhere in this business plan.

7.3 Break-even Analysis
Break-even Analysis explanations:
- Average Per Unit Revenue–Taken as gross average from Detailed Forecast.
- Average Per Unit Variable Cost–Taken as gross average from Detailed Forecast.
- Estimated Monthly Fixed Cost–Calculated by Owner Salary + Loan Payment + Average Utilities.

Break-even Analysis | |
Monthly Units Break-even | 22 |
Monthly Revenue Break-even | $1,155 |
Assumptions: | |
Average Per-Unit Revenue | $53.38 |
Average Per-Unit Variable Cost | $14.11 |
Estimated Monthly Fixed Cost | $850 |
7.4 Projected Profit and Loss
Important notes about Profit and Loss:
- The attached Profit and Loss Statement is assembled from data contained throughout this business plan. Refer to all other sections for detailed information validating the Profit and Loss result.
- This is primarily a self-calculating table; future modifications in cooperation with lender/investors will automatically update this table to reflect changes made elsewhere in this business plan.




Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $164,155 | $277,470 | $473,220 |
Direct Cost of Sales | $43,383 | $77,500 | $147,500 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $43,383 | $77,500 | $147,500 |
Gross Margin | $120,773 | $199,970 | $325,720 |
Gross Margin % | 73.57% | 72.07% | 68.83% |
Expenses | |||
Payroll | $0 | $0 | $0 |
Sales and Marketing and Other Expenses | $2,400 | $3,600 | $4,800 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,000 | $3,000 | $3,000 |
Insurance | $4,800 | $4,800 | $4,800 |
Rent | $0 | $0 | $0 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $10,200 | $11,400 | $12,600 |
Profit Before Interest and Taxes | $110,573 | $188,570 | $313,120 |
EBITDA | $110,573 | $188,570 | $313,120 |
Interest Expense | $14,025 | $12,300 | $10,500 |
Taxes Incurred | $24,318 | $44,068 | $76,916 |
Net Profit | $72,229 | $132,203 | $225,704 |
Net Profit/Sales | 44.00% | 47.65% | 47.70% |
7.5 Projected Cash Flow
Important notes about Cash Flow:
- See line item: Long Term Borrowing Repayment in the Pro-forma Cash Flow Table:
- This figure is a gross estimate based on conventional repayment of a long-term business loan. Should funding come from a private investor, this line item will be dramatically altered.
- The attached Cash Flow table is assembled from data contained throughout this business plan. Refer to all other sections for detailed information validating the cash flow results.
- These are self-calculating tables and charts; future modifications in cooperation with lender/investors will automatically update this data to reflect changes made elsewhere in this business plan.

Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $164,155 | $277,470 | $473,220 |
Subtotal Cash from Operations | $164,155 | $277,470 | $473,220 |
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 | $164,155 | $277,470 | $473,220 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $0 | $0 | $0 |
Bill Payments | $84,937 | $140,885 | $244,110 |
Subtotal Spent on Operations | $84,937 | $140,885 | $244,110 |
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 | $18,000 | $18,000 | $18,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $102,937 | $158,885 | $262,110 |
Net Cash Flow | $61,218 | $118,585 | $211,110 |
Cash Balance | $88,218 | $206,803 | $417,913 |
7.6 Projected Balance Sheet
Important notes about the Balance Sheet:
- The attached Balance Sheet is assembled from data contained throughout this business plan. Refer to all other sections for detailed information validating the Balance Sheet result.
- This is a self-calculating table; future modifications in cooperation with lender/investors will automatically update this chart to reflect changes made elsewhere in this business plan.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $88,218 | $206,803 | $417,913 |
Inventory | $3,234 | $5,777 | $10,996 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $91,452 | $212,581 | $428,909 |
Long-term Assets | |||
Long-term Assets | $60,000 | $60,000 | $60,000 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $60,000 | $60,000 | $60,000 |
Total Assets | $151,452 | $272,581 | $488,909 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $5,223 | $12,149 | $20,773 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $5,223 | $12,149 | $20,773 |
Long-term Liabilities | $132,000 | $114,000 | $96,000 |
Total Liabilities | $137,223 | $126,149 | $116,773 |
Paid-in Capital | $0 | $0 | $0 |
Retained Earnings | ($58,000) | $14,229 | $146,432 |
Earnings | $72,229 | $132,203 | $225,704 |
Total Capital | $14,229 | $146,432 | $372,136 |
Total Liabilities and Capital | $151,452 | $272,581 | $488,909 |
Net Worth | $14,229 | $146,432 | $372,136 |
7.7 Business Ratios
Important notes about the Business Ratios:
- The attached Business Ratios table is assembled from data contained throughout this business plan. Refer to all other sections for detailed information validating the Business Ratios result.
- This is a self-calculating table; future modifications in cooperation with lender/investors will automatically update this chart to reflect changes made elsewhere in this business plan.
- Standard ratios from Industry Profile SIC code 7032, Sporting and Recreational Camps is provided in the table.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 69.03% | 70.55% | 7.50% |
Percent of Total Assets | ||||
Inventory | 2.14% | 2.12% | 2.25% | 1.10% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 26.90% |
Total Current Assets | 60.38% | 77.99% | 87.73% | 33.40% |
Long-term Assets | 39.62% | 22.01% | 12.27% | 66.60% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 3.45% | 4.46% | 4.25% | 16.30% |
Long-term Liabilities | 87.16% | 41.82% | 19.64% | 38.40% |
Total Liabilities | 90.60% | 46.28% | 23.88% | 54.70% |
Net Worth | 9.40% | 53.72% | 76.12% | 45.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 73.57% | 72.07% | 68.83% | 0.00% |
Selling, General & Administrative Expenses | 45.91% | 38.48% | 29.11% | 70.30% |
Advertising Expenses | 0.73% | 0.86% | 0.76% | 5.10% |
Profit Before Interest and Taxes | 67.36% | 67.96% | 66.17% | 4.20% |
Main Ratios | ||||
Current | 17.51 | 17.50 | 20.65 | 1.75 |
Quick | 16.89 | 17.02 | 20.12 | 1.24 |
Total Debt to Total Assets | 90.60% | 46.28% | 23.88% | 54.70% |
Pre-tax Return on Net Worth | 678.51% | 120.38% | 81.32% | 2.70% |
Pre-tax Return on Assets | 63.75% | 64.67% | 61.90% | 5.90% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 44.00% | 47.65% | 47.70% | n.a |
Return on Equity | 507.61% | 90.28% | 60.65% | n.a |
Activity Ratios | ||||
Inventory Turnover | 9.99 | 17.20 | 17.59 | n.a |
Accounts Payable Turnover | 17.26 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 21 | 24 | n.a |
Total Asset Turnover | 1.08 | 1.02 | 0.97 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 9.64 | 0.86 | 0.31 | n.a |
Current Liab. to Liab. | 0.04 | 0.10 | 0.18 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $86,229 | $200,432 | $408,136 | n.a |
Interest Coverage | 7.88 | 15.33 | 29.82 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.92 | 0.98 | 1.03 | n.a |
Current Debt/Total Assets | 3% | 4% | 4% | n.a |
Acid Test | 16.89 | 17.02 | 20.12 | n.a |
Sales/Net Worth | 11.54 | 1.89 | 1.27 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |