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Lawn Landscaping Business Plan

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Greens Manicure Service

Financial Plan

The following sections will outline important financial information.

7.1 Important Assumptions

The following table highlights some important financial assumptions of Greens.

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 Break-even Analysis

The Break-even Analysis indicates approximately $3,900 is needed in monthly revenue to break even.

Lawn landscaping business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $3,956
Assumptions:
Average Percent Variable Cost 7%
Estimated Monthly Fixed Cost $3,679

7.3 Projected Profit and Loss

The following table indicates the projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $41,748 $91,254 $97,854
Direct Cost of Sales $2,922 $6,388 $6,850
Other $0 $0 $0
Total Cost of Sales $2,922 $6,388 $6,850
Gross Margin $38,826 $84,866 $91,004
Gross Margin % 93.00% 93.00% 93.00%
Expenses
Payroll $35,300 $60,900 $60,900
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $1,152 $2,552 $2,552
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $1,200 $1,200 $1,200
Licenses + bonded fees $1,200 $1,200 $1,200
Payroll Taxes $5,295 $9,135 $9,135
Other $0 $0 $0
Total Operating Expenses $44,147 $74,987 $74,987
Profit Before Interest and Taxes ($5,321) $9,879 $16,017
EBITDA ($4,169) $12,431 $18,569
Interest Expense $1,847 $1,675 $1,495
Taxes Incurred $0 $2,051 $3,691
Net Profit ($7,169) $6,153 $10,831
Net Profit/Sales -17.17% 6.74% 11.07%

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Lawn landscaping business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $31,311 $68,441 $73,391
Cash from Receivables $10,437 $22,814 $24,464
Subtotal Cash from Operations $41,748 $91,254 $97,854
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 $41,748 $91,254 $97,854
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $35,300 $60,900 $60,900
Bill Payments $12,129 $20,205 $23,413
Subtotal Spent on Operations $47,429 $81,105 $84,313
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 $1,800 $1,800 $1,800
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $7,000 $0
Dividends $0 $0 $0
Subtotal Cash Spent $49,229 $89,905 $86,113
Net Cash Flow ($7,481) $1,349 $11,741
Cash Balance $6,919 $8,268 $20,009

7.5 Projected Balance Sheet

The following table indicates the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $6,919 $8,268 $20,009
Accounts Receivable $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $6,919 $8,268 $20,009
Long-term Assets
Long-term Assets $4,750 $11,750 $11,750
Accumulated Depreciation $1,152 $3,704 $6,256
Total Long-term Assets $3,598 $8,046 $5,494
Total Assets $10,517 $16,314 $25,503
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $336 $1,779 $1,937
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $336 $1,779 $1,937
Long-term Liabilities $17,650 $15,850 $14,050
Total Liabilities $17,986 $17,629 $15,987
Paid-in Capital $0 $0 $0
Retained Earnings ($300) ($7,469) ($1,316)
Earnings ($7,169) $6,153 $10,831
Total Capital ($7,469) ($1,316) $9,515
Total Liabilities and Capital $10,517 $16,314 $25,503
Net Worth ($7,469) ($1,316) $9,515

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