Universal Laundromat
Financial Plan
Forecast
Key Assumptions
Key Assumptions:
- People need and appreciate clean clothes
- People will be willing to pay 20 dollars to have someone help with the wash and fold
- Not everyone can afford a washer and dryer
- Those who can’t afford them still need somewhere to do clothes.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We estimate $30K in startup expenses, which are mainly location fix-up, some signage, some legal.
We estimate $40,000 in purchasing assets including the appliances, some furniture and fixtures.
Sources of Funds
Mr. Duong will invest $80,000 of savings. He will also have $8,000 in accounts payable, left over from some assets purchased. The plan includes a 10-year SBA guaranteed loan for $75,000.
If all goes according to plan, he will be able to pay off the SBA loan early, in the third year. However, that detail is not included in the plan.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $298,200 | $384,000 | $442,000 |
| Direct Costs | $119,310 | $154,488 | $178,268 |
| Gross Margin | $178,890 | $229,512 | $263,732 |
| Gross Margin % | 60% | 60% | 60% |
| Operating Expenses | |||
| Salaries & Wages | $102,000 | $104,040 | $106,121 |
| Employee Related Expenses | $20,400 | $20,808 | $21,224 |
| Rent | $30,000 | $30,000 | $30,000 |
| Gas / Electric | $8,946 | $11,520 | $13,260 |
| Marketing expenses | $1,139 | $700 | $900 |
| Insurance | $5,964 | $7,680 | $8,840 |
| Maintenance | $5,964 | $7,680 | $8,840 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $174,413 | $182,428 | $189,185 |
| Operating Income | $4,477 | $47,084 | $74,547 |
| Interest Incurred | $2,887 | $2,633 | $2,370 |
| Depreciation and Amortization | $5,714 | $5,715 | $5,714 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $5,192 | $9,969 |
| Total Expenses | $302,324 | $350,456 | $385,506 |
| Net Profit | ($4,124) | $33,544 | $56,494 |
| Net Profit/Sales | (1%) | 9% | 13% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $15,000 | $32,593 | $67,558 | $128,064 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $12,874 | $14,856 | $14,856 | |
| Other Current Assets | $2,000 | $2,000 | $2,000 | $2,000 |
| Total Current Assets | $17,000 | $47,467 | $84,414 | $144,920 |
| Long-Term Assets | $40,000 | $40,000 | $40,000 | $40,000 |
| Accumulated Depreciation | ($5,714) | ($11,429) | ($17,143) | |
| Total Long-Term Assets | $40,000 | $34,286 | $28,571 | $22,857 |
| Total Assets | $57,000 | $81,753 | $112,985 | $167,777 |
| Accounts Payable | $8,000 | $35,016 | $37,327 | $40,018 |
| Income Taxes Payable | $0 | $1,456 | $2,496 | |
| Sales Taxes Payable | $8,082 | $8,478 | $9,783 | |
| Short-Term Debt | $6,221 | $6,475 | $6,738 | $7,013 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $14,221 | $49,573 | $53,999 | $59,310 |
| Long-Term Debt | $68,779 | $62,304 | $55,566 | $48,553 |
| Long-Term Liabilities | $68,779 | $62,304 | $55,566 | $48,553 |
| Total Liabilities | $83,000 | $111,877 | $109,565 | $107,862 |
| Paid-In Capital | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($106,000) | ($106,000) | ($110,124) | ($76,580) |
| Earnings | ($4,124) | $33,544 | $56,494 | |
| Total Owner’s Equity | ($26,000) | ($30,124) | $3,420 | $59,914 |
| Total Liabilities & Equity | $57,000 | $81,753 | $112,985 | $167,777 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($4,124) | $33,544 | $56,494 |
| Depreciation & Amortization | $5,714 | $5,714 | $5,714 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($12,874) | ($1,982) | $0 |
| Change in Accounts Payable | $27,016 | $2,311 | $2,691 |
| Change in Income Tax Payable | $0 | $1,456 | $1,040 |
| Change in Sales Tax Payable | $8,082 | $396 | $1,305 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $23,814 | $41,440 | $67,245 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $253 | $264 | $275 |
| Change in Long-Term Debt | ($6,475) | ($6,738) | ($7,013) |
| Net Cash from Financing | ($6,221) | ($6,475) | ($6,738) |
| Cash at Beginning of Period | $15,000 | $32,593 | $67,558 |
| Net Change in Cash | $17,593 | $34,965 | $60,506 |
| Cash at End of Period | $32,593 | $67,558 | $128,064 |
By 
