Laundromat Business Plan

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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

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for 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
Gross Margin $178,890 $229,512 $263,732
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
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

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
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
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

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
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt $253 $264 $275
Change in Long-Term Debt ($6,475) ($6,738) ($7,013)
Cash at Beginning of Period $15,000 $32,593 $67,558
Net Change in Cash $17,593 $34,965 $60,506
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