JavaNet Internet Cafe
Financial Plan
Forecast
Key Assumptions
Our Key assumptions:
1 – Certain members s of the community are intimidated by the internet. They want to use email and the internet but find it intimidating. They will use the internet if there is a place that comes with someone to explain it.
2 – Students need a place to have study groups and use the internet. There are many students at the u of o, there are a shortage of resources.
3 – Certain members of the community cannot afford to own their own computer or wifi. We are happy to let them use our place for a small fee they can afford.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our list of startup expenses are $56,000 dollars, as follows:
- 11 computers = $22,000
- two printers = $1,000
- one scanner = $500
- software = $810
- one espresso machine = $10,700
- one automatic espresso grinder = $795
- other fixtures and remodeling:
- two coffee/food preparation counters = $1,000
- one information display counter = $1,000
- one drinking/eating counter = $500
- sixteen stools = $1,600
- six computer desks w/chairs = $2,400
- stationery goods = $500
- two telephones = $200
- decoration expense = $13,000
Sources of Funds
This business plan is prepared to obtain financing in the amount of $24,000. The supplemental financing is required to begin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations.
Additional financing has already been secured as follows:
- $24,000 from the Oregon Economic Development Fund
- $19,000 of personal savings from owner Cale Bruckner
- $66,000 from three investors
- and $10,000 in the form of short-term loans
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $691,211 | $824,000 | $960,500 |
| Direct Costs | $235,321 | $277,400 | $324,050 |
| Gross Margin | $455,890 | $546,600 | $636,450 |
| Gross Margin % | 66% | 66% | 66% |
| Operating Expenses | |||
| Salaries & Wages | $235,200 | $273,216 | $280,122 |
| Employee Related Expenses | $47,040 | $54,643 | $56,025 |
| Rent | $24,000 | $24,000 | $24,000 |
| Utilities | $9,120 | $9,120 | $9,120 |
| Marketing / Promotion | $48,000 | $48,000 | $48,000 |
| Insurance | $7,200 | $7,200 | $7,200 |
| Startup Expenses – Listed in Use of Funds | $56,000 | ||
| Total Operating Expenses | $426,560 | $416,179 | $424,467 |
| Operating Income | $29,330 | $130,420 | $211,984 |
| Interest Incurred | $699 | $482 | $303 |
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $2,004 | $9,096 | $14,817 |
| Total Expenses | $664,584 | $703,157 | $763,637 |
| Net Profit | $26,626 | $120,843 | $196,864 |
| Net Profit/Sales | 4% | 15% | 20% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $103,840 | $215,760 | $407,985 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | $23,115 | $27,002 | $27,002 |
| Other Current Assets | |||
| Total Current Assets | $126,955 | $242,762 | $434,987 |
| Long-Term Assets | |||
| Accumulated Depreciation | |||
| Total Long-Term Assets | |||
| Total Assets | $126,955 | $242,762 | $434,987 |
| Accounts Payable | $4,571 | $5,154 | $5,154 |
| Income Taxes Payable | $2,004 | $2,275 | $3,705 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | $5,890 | $6,069 | $6,254 |
| Prepaid Revenue | |||
| Total Current Liabilities | $12,465 | $13,498 | $15,113 |
| Long-Term Debt | $12,864 | $6,795 | $541 |
| Long-Term Liabilities | $12,864 | $6,795 | $541 |
| Total Liabilities | $25,329 | $20,293 | $15,654 |
| Paid-In Capital | $75,000 | $75,000 | $75,000 |
| Retained Earnings | $26,626 | $147,469 | |
| Earnings | $26,626 | $120,843 | $196,864 |
| Total Owner’s Equity | $101,626 | $222,469 | $419,333 |
| Total Liabilities & Equity | $126,955 | $242,762 | $434,987 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $26,626 | $120,843 | $196,864 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($23,115) | ($3,887) | $0 |
| Change in Accounts Payable | $4,571 | $583 | $0 |
| Change in Income Tax Payable | $2,004 | $271 | $1,430 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $10,087 | $117,810 | $198,294 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $75,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $5,890 | $179 | $185 |
| Change in Long-Term Debt | $12,864 | ($6,069) | ($6,254) |
| Net Cash from Financing | $93,754 | ($5,890) | ($6,069) |
| Cash at Beginning of Period | $0 | $103,840 | $215,760 |
| Net Change in Cash | $103,840 | $111,920 | $192,225 |
| Cash at End of Period | $103,840 | $215,760 | $407,985 |
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