The premier element in our financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase our cash flow:
- We must create visibility so as to create customer flow.
- We must ensure the theme creates a "WOW" effect to bolster attendance.
- We must maintain a dependable, cheerful employee force so as to minimize turnover.
9.1 Start-up Funding
Total start-up requirements come to $111,844. The start-up costs are to be financed partially by the direct owner investment of $27,000 and financing in the amount of $84,844. The details are included in the following table.
9.2 Important Assumptions
The key underlying assumptions of our financial plan shown in the following general assumption table are:
- We assume access to equity capital and financing to support our financial plan.
- We assume our financial progress based on realistic sales to minimum sales against highest expenses.
- We assume there will not be an economic crash that would greatly hinder our target market's access to their personal luxury finds.
9.3 Break-even Analysis
Our break-even analysis is shown below.
9.4 Projected Profit and Loss
The company will make a profit early on. There are two important assumptions with our Projected Profit and Loss statement:
- Our revenue is based on minimum estimated averages against highest expense expectations.
- Our major expense of rent and utilities is fixed for the next five years.
The yearly analysis is indicated in the table below; monthly analyses can be found in the appendix.
9.5 Projected Cash Flow
The company's estimated cash flow analysis is outlined in the following table. Laser Tag's popularity will instantly show profitability, which will ensure positive cash balance. The Cash Flow table also shows planned sales tax received and paid out, and the estimated repayment for the requested loan.
9.6 Projected Balance Sheet
The table below presents the balance sheet for Laser Tag. This table reflects a positive cash position throughout the period of this financial plan and dramatic growth in net worth.
9.7 Business Ratios
The company's projected business ratios are provided in the table below. The final column, Industry Profile, shows significant ratios for the Amusement and Recreation industry for comparison, as determined by the Standard Industry Classification (SIC) code, 7999.