Our financial plan is based on conservative estimates and assumptions. We will need initial investment to make the financials work, but the owner is prepared to contribute that funding.
We can minimize risk factors by:
The start-up costs are to be financed by the owners' personal funds.
The following table and chart shows the projected Profit and Loss for Coaching Company. The majority of our operating expenses are the owner's payroll, benefits and taxes. This includes a standard PPO health plan, since the owner is sole provider of services; if he gets sick, sales stop. The second largest category is Marketing and Promotion, necessary for establishing brand recognition and generating new business, as a start-up.
The moving expenses in December and increased rent starting at the same time reflect the planned move into an office space, and out of the owner's home.
Break-even data is presented in the chart and table below.
The following table and chart show the Cash Flow for Coaching Company. After the first six months, cash flow should be positive for all months. We expect an initial period of decreasing cash balance, until sales reach mid-year targets.
The following table presents the Balance Sheet for Coaching Company. It shows our projected steady increase in Net Worth over the next three years. As a consulting company, we do not need a great deal in the way of assets, so the largest factor in the Balance Sheet is our cash balance.
The following table shows the projected business ratios. We expect to maintain healthy ratios for profitability, risk, and return. The industry comparisons are for Management Consulting Services, SIC code 8742.