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Medical Support & Laboratories icon Medical Language Translation Business Plan

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Global Health Translations

Executive Summary

Biomedical innovations have a world-wide audience.  Each new innovation, each new medical/pharmaceutical product, has a world-wide market. This presents a unique challenge to a company to develop translations in the following areas:

  • Instructions for use.
  • User’s manuals.
  • Service manuals.
  • Packaging/labels.
  • Clinical trials.
  • Regulatory documents.
  • Marketing materials.

There is need for a translation service that is expert with the technical information as well as the languages where the product will be sold. Global Health Translations is an invaluable resource in preparing a product for the world marketplace. We will offer medical translation in the following areas:

  • Medical devices.
  • Pharmaceuticals.
  • Biotechnology.
Medical language translation business plan, executive summary chart image

1.1 Mission

The mission of Global Health Translations is to provide our clients translators that can master the medical concepts in the material as well as the demands of the language translation.

1.2 Keys to Success

  • All translations will be reviewed by medical professionals with experience in the industry.
  • Selection of accredited translators with a university degree from their native country.
  • Fast, efficient and professional management of each project.

1.3 Objectives

The objectives of Global Health Translations are:

  • Creating translations of exceptional quality.
  • Assuring fast turnaround on every project.
  • Maintaining competitive prices.
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Company Summary

Global Health Translations is a service focused on the translation needs of the health care industry.  We have gathered a large pool of translators and editors in more than 30 languages. All translators and editors are native speakers. The translators are accredited by the American Translator Association or other similar organizations. Our editors are required to have a medical education and practice in the medical field.

2.1 Company Ownership

Global Health Translations is owned by Linda and Steven Johnson.

2.2 Start-up Summary

Linda and Steven Johnson will invest in the company as well as securing an SBA business loan.

Medical language translation business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $2,000
Brochures $3,000
Consultants $0
Insurance $0
Rent $1,000
Translators/Editors Pool Development $40,000
Computer Equipment/Software $6,000
Other $0
Total Start-up Expenses $54,000
Start-up Assets
Cash Required $26,000
Other Current Assets $0
Long-term Assets $20,000
Total Assets $46,000
Total Requirements $100,000
Start-up Funding
Start-up Expenses to Fund $54,000
Start-up Assets to Fund $46,000
Total Funding Required $100,000
Assets
Non-cash Assets from Start-up $20,000
Cash Requirements from Start-up $26,000
Additional Cash Raised $0
Cash Balance on Starting Date $26,000
Total Assets $46,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Linda and Steven Johnson $50,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,000
Loss at Start-up (Start-up Expenses) ($54,000)
Total Capital ($4,000)
Total Capital and Liabilities $46,000
Total Funding $100,000

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Services

Global Health Translation offers the following services:

Languages:

  • English
  • Portuguese
  • Turkish
  • Italian
  • French
  • Spanish
  • German
  • Mandarin
  • Japanese
  • Czech
  • Finnish
  • Swedish
  • Korean
  • Dutch

Need Assessment & Project Management
A project coordinator is assigned to each client to monitor the quality of services throughout the translation process and ensure consistency in project management. 

Glossary Compilation
The glossary of terms are specific to the client’s company and industry and is used to ensure that the terminology is consistent with the terms already utilized by the client’s foreign subsidiaries.

Translation, Editing & Proofreading
All of our linguists are native speakers of the language into which they translate. A professional translator performs the initial conversion of the text into the target language. The technical aspects are then reviewed by a medical editor (a M.D., Ph.D. doing lab research, or medical industry professional) who is currently working in the field.

Formatting & Galley Review
Once the text is finalized, our formatter uses the formatted English files to flow in the foreign language text. The formatted document is then galley reviewed by the project’s proofreader. We also provide: 

  • DTP formatting of the foreign language versions (PageMaker, QuarkXPress, etc.).
  • Import of graphic files.
  • Electronic files (PDF, EPS or TIF) or linotronic output for non-roman character languages: Russian, Japanese, Chinese, etc.

Client Galley Review
Laser proofs of the formatted versions are submitted to the client for approval. The in-house graphics staff will have the opportunity to review the proofs and suggest changes.

Final Documents
If the client’s printer cannot use a PDF or TIF file, we deliver a lino output or camera-ready copy.

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Market Analysis Summary

In the biomedical industry, each new product, instantly, has an international market.  The problem for most companies is finding translators that understand the medical concepts in their materials.  This is a critical first step is assuring that foreign subsidiaries can use the material.  It is an essential component of releasing the product to market during its optimum window of opportunity.  Poor translations can create delays that will push back release dates. This ultimately will impact the company’s sales.

4.1 Market Segmentation

Global Health Translations will focus on three significant client groups:

  • Medical device companies
  • Pharmaceutical companies
  • Biotechnology companies
Medical language translation business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Medical Device Companies 10% 3,240 3,564 3,920 4,312 4,743 10.00%
Biotechnology Companies 10% 3,300 3,630 3,993 4,392 4,831 10.00%
Pharmaceutical Companies 10% 1,020 1,122 1,234 1,357 1,493 9.99%
Total 10.00% 7,560 8,316 9,147 10,061 11,067 10.00%

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Strategy and Implementation Summary

Global Health Translations faces a tremendous amount of competition for its targeted client group but few translation services have as strong a  network of medical editors and translators. Global Health Translations will aggressively market this network with our target clients.

5.1 Competitive Edge

Global Health Translations’ competitive advantage is the experience of its project managers and the network of editors and translators that have been assembled for each project.

Global Health Translations has gathered translators and editors in more than 14 languages. All translators and editors are native speakers. Our translators are accredited by the American Translator Association or other similar organizations. Our editors are required to have a medical education and practice in the medical field. In all cases, translators and editors are selected so that their specialization matches the company’s industry.

The following are examples of our professional translators and editors.

Translators

Spanish: a third-year medical student in pharmacology who is highly involved in research and development projects.
French: a medical researcher with a M.S. in molecular biology. She has over six years experience as translator both in Europe and the United States.

Editors

Japanese: a medical student at Osaka University, specializing in toxicology.
German: recently completed Ph.D. in pharmaceutical biology from the University of Freiburg, Germany.

5.2 Sales Strategy

The heart of Global Health Translations is the network of medical editors and translators we have assembled.  This resource is invaluable to companies bringing a product to the international market.  Our marketing strategy is to sell this advantage to our target clients.

5.2.1 Sales Forecast

The following is Global Health Translations’ sales forecast for three years.

Medical language translation business plan, strategy and implementation summary chart image

Medical language translation business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Translation Projects $273,000 $315,000 $370,000
Other $0 $0 $0
Total Sales $273,000 $315,000 $370,000
Direct Cost of Sales Year 1 Year 2 Year 3
Translation Projects $105,000 $128,000 $158,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $105,000 $128,000 $158,000

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Management Summary

Linda and Steven Johnson, owners of Global Health Translations, will share responsibility in managing the business. 

Linda was born in Mexico City, Mexico and obtained high school diplomas in both the English and Spanish-language school systems. She graduated from the Stanford University with a BS in Biology.  Linda has worked as a freelance translator for five years. Linda is fluent in Spanish, German, French, Portuguese and Italian.

Steven was born in Baltimore, Maryland. He is a graduate of the University of Washington in linguistics and holds an M.A. from Oxford University in Russian Language and Literature.  While at Oxford University, Steven supplemented his Rhodes Scholarship funds by doing Russian and Polish translations for clients in the U.K.  Steven also reads Spanish, French, Italian, German, and Portuguese.

6.1 Organizational Structure

Global Health Translations will assign a project coordinator to each project who will work in close association with the client on each of his/her translation projects, in order to maintain consistency and quality of services.  The positions of editor and translator will be contracted out.  The project coordinator will manage the project’s translator and editor.

6.2 Personnel Plan

Global Health Translations will have the following positions:

  • Project managers (2).
  • Marketing person.
Personnel Plan
Year 1 Year 2 Year 3
Project Managers (2) $60,000 $70,000 $80,000
Marketing Person $36,000 $40,000 $44,000
Other $0 $0 $0
Total People 3 3 3
Total Payroll $96,000 $110,000 $124,000

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Financial Plan

The following sections outline the Financial Plan for Global Health Translations.

7.1 Projected Cash Flow

The following is the projected cash flow for three years.

Medical language translation business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $68,250 $78,750 $92,500
Cash from Receivables $164,950 $230,127 $269,482
Subtotal Cash from Operations $233,200 $308,877 $361,982
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 $233,200 $308,877 $361,982
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $96,000 $110,000 $124,000
Bill Payments $135,937 $176,615 $209,462
Subtotal Spent on Operations $231,937 $286,615 $333,462
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 $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $231,937 $286,615 $333,462
Net Cash Flow $1,263 $22,262 $28,520
Cash Balance $27,263 $49,526 $78,045

7.2 Break-even Analysis

The monthly break-even point is shown in the following table and chart.

Medical language translation business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $17,449
Assumptions:
Average Percent Variable Cost 38%
Estimated Monthly Fixed Cost $10,738

7.3 Projected Profit and Loss

Global Health Translations will not see a profit until its second year of operation.  We estimate that sales will grow by a modest percentage the second and third year. The following is the projected profit and loss for three years.

Medical language translation business plan, financial plan chart image

Medical language translation business plan, financial plan chart image

Medical language translation business plan, financial plan chart image

Medical language translation business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $273,000 $315,000 $370,000
Direct Cost of Sales $105,000 $128,000 $158,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $105,000 $128,000 $158,000
Gross Margin $168,000 $187,000 $212,000
Gross Margin % 61.54% 59.37% 57.30%
Expenses
Payroll $96,000 $110,000 $124,000
Sales and Marketing and Other Expenses $1,800 $2,700 $3,800
Depreciation $2,856 $2,856 $2,856
Leased Equipment $0 $0 $0
Utilities $1,800 $1,800 $1,800
Insurance $0 $0 $0
Rent $12,000 $12,000 $12,000
Payroll Taxes $14,400 $16,500 $18,600
Other $0 $0 $0
Total Operating Expenses $128,856 $145,856 $163,056
Profit Before Interest and Taxes $39,144 $41,144 $48,944
EBITDA $42,000 $44,000 $51,800
Interest Expense $5,000 $5,000 $5,000
Taxes Incurred $10,243 $10,843 $13,183
Net Profit $23,901 $25,301 $30,761
Net Profit/Sales 8.75% 8.03% 8.31%

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $27,263 $49,526 $78,045
Accounts Receivable $39,800 $45,923 $53,941
Other Current Assets $0 $0 $0
Total Current Assets $67,063 $95,449 $131,987
Long-term Assets
Long-term Assets $20,000 $20,000 $20,000
Accumulated Depreciation $2,856 $5,712 $8,568
Total Long-term Assets $17,144 $14,288 $11,432
Total Assets $84,207 $109,737 $143,419
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $14,307 $14,535 $17,456
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $14,307 $14,535 $17,456
Long-term Liabilities $50,000 $50,000 $50,000
Total Liabilities $64,307 $64,535 $67,456
Paid-in Capital $50,000 $50,000 $50,000
Retained Earnings ($54,000) ($30,099) ($4,798)
Earnings $23,901 $25,301 $30,761
Total Capital $19,901 $45,202 $75,962
Total Liabilities and Capital $84,207 $109,737 $143,419
Net Worth $19,901 $45,202 $75,962

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389, Language Translation and Interpretation Services, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 15.38% 17.46% 8.20%
Percent of Total Assets
Accounts Receivable 47.26% 41.85% 37.61% 26.30%
Other Current Assets 0.00% 0.00% 0.00% 44.20%
Total Current Assets 79.64% 86.98% 92.03% 74.30%
Long-term Assets 20.36% 13.02% 7.97% 25.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 16.99% 13.25% 12.17% 49.00%
Long-term Liabilities 59.38% 45.56% 34.86% 13.80%
Total Liabilities 76.37% 58.81% 47.03% 62.80%
Net Worth 23.63% 41.19% 52.97% 37.20%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 61.54% 59.37% 57.30% 0.00%
Selling, General & Administrative Expenses 52.70% 51.14% 48.71% 81.40%
Advertising Expenses 0.00% 0.00% 0.00% 1.70%
Profit Before Interest and Taxes 14.34% 13.06% 13.23% 2.10%
Main Ratios
Current 4.69 6.57 7.56 1.49
Quick 4.69 6.57 7.56 1.17
Total Debt to Total Assets 76.37% 58.81% 47.03% 62.80%
Pre-tax Return on Net Worth 171.57% 79.96% 57.85% 4.20%
Pre-tax Return on Assets 40.55% 32.94% 30.64% 11.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 8.75% 8.03% 8.31% n.a
Return on Equity 120.10% 55.97% 40.49% n.a
Activity Ratios
Accounts Receivable Turnover 5.14 5.14 5.14 n.a
Collection Days 57 66 66 n.a
Accounts Payable Turnover 10.50 12.17 12.17 n.a
Payment Days 28 30 27 n.a
Total Asset Turnover 3.24 2.87 2.58 n.a
Debt Ratios
Debt to Net Worth 3.23 1.43 0.89 n.a
Current Liab. to Liab. 0.22 0.23 0.26 n.a
Liquidity Ratios
Net Working Capital $52,757 $80,914 $114,530 n.a
Interest Coverage 7.83 8.23 9.79 n.a
Additional Ratios
Assets to Sales 0.31 0.35 0.39 n.a
Current Debt/Total Assets 17% 13% 12% n.a
Acid Test 1.91 3.41 4.47 n.a
Sales/Net Worth 13.72 6.97 4.87 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Translation Projects 0% $0 $17,000 $19,000 $21,000 $24,000 $24,000 $27,000 $27,000 $29,000 $31,000 $28,000 $26,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $17,000 $19,000 $21,000 $24,000 $24,000 $27,000 $27,000 $29,000 $31,000 $28,000 $26,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Translation Projects $0 $6,000 $7,000 $8,000 $9,000 $9,000 $10,000 $10,000 $12,000 $12,500 $11,500 $10,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $6,000 $7,000 $8,000 $9,000 $9,000 $10,000 $10,000 $12,000 $12,500 $11,500 $10,000
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Project Managers (2) 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Marketing Person 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $0 $17,000 $19,000 $21,000 $24,000 $24,000 $27,000 $27,000 $29,000 $31,000 $28,000 $26,000
Direct Cost of Sales $0 $6,000 $7,000 $8,000 $9,000 $9,000 $10,000 $10,000 $12,000 $12,500 $11,500 $10,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $6,000 $7,000 $8,000 $9,000 $9,000 $10,000 $10,000 $12,000 $12,500 $11,500 $10,000
Gross Margin $0 $11,000 $12,000 $13,000 $15,000 $15,000 $17,000 $17,000 $17,000 $18,500 $16,500 $16,000
Gross Margin % 0.00% 64.71% 63.16% 61.90% 62.50% 62.50% 62.96% 62.96% 58.62% 59.68% 58.93% 61.54%
Expenses
Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Sales and Marketing and Other Expenses $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Depreciation $238 $238 $238 $238 $238 $238 $238 $238 $238 $238 $238 $238
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738 $10,738
Profit Before Interest and Taxes ($10,738) $262 $1,262 $2,262 $4,262 $4,262 $6,262 $6,262 $6,262 $7,762 $5,762 $5,262
EBITDA ($10,500) $500 $1,500 $2,500 $4,500 $4,500 $6,500 $6,500 $6,500 $8,000 $6,000 $5,500
Interest Expense $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Taxes Incurred ($3,346) ($46) $254 $554 $1,154 $1,154 $1,754 $1,754 $1,754 $2,204 $1,604 $1,454
Net Profit ($7,808) ($108) $592 $1,292 $2,692 $2,692 $4,092 $4,092 $4,092 $5,142 $3,742 $3,392
Net Profit/Sales 0.00% -0.64% 3.11% 6.15% 11.22% 11.22% 15.15% 15.15% 14.11% 16.59% 13.36% 13.05%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $0 $4,250 $4,750 $5,250 $6,000 $6,000 $6,750 $6,750 $7,250 $7,750 $7,000 $6,500
Cash from Receivables $0 $0 $425 $12,800 $14,300 $15,825 $18,000 $18,075 $20,250 $20,300 $21,800 $23,175
Subtotal Cash from Operations $0 $4,250 $5,175 $18,050 $20,300 $21,825 $24,750 $24,825 $27,500 $28,050 $28,800 $29,675
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $4,250 $5,175 $18,050 $20,300 $21,825 $24,750 $24,825 $27,500 $28,050 $28,800 $29,675
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Bill Payments ($430) ($120) $8,914 $10,214 $11,524 $13,070 $13,124 $14,670 $14,737 $16,702 $17,567 $15,965
Subtotal Spent on Operations $7,570 $7,880 $16,914 $18,214 $19,524 $21,070 $21,124 $22,670 $22,737 $24,702 $25,567 $23,965
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $7,570 $7,880 $16,914 $18,214 $19,524 $21,070 $21,124 $22,670 $22,737 $24,702 $25,567 $23,965
Net Cash Flow ($7,570) ($3,630) ($11,739) ($164) $776 $755 $3,626 $2,155 $4,763 $3,348 $3,233 $5,710
Cash Balance $18,430 $14,799 $3,061 $2,897 $3,674 $4,428 $8,055 $10,210 $14,973 $18,321 $21,554 $27,263
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $26,000 $18,430 $14,799 $3,061 $2,897 $3,674 $4,428 $8,055 $10,210 $14,973 $18,321 $21,554 $27,263
Accounts Receivable $0 $0 $12,750 $26,575 $29,525 $33,225 $35,400 $37,650 $39,825 $41,325 $44,275 $43,475 $39,800
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $26,000 $18,430 $27,549 $29,636 $32,422 $36,899 $39,828 $45,705 $50,035 $56,298 $62,596 $65,029 $67,063
Long-term Assets
Long-term Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Accumulated Depreciation $0 $238 $476 $714 $952 $1,190 $1,428 $1,666 $1,904 $2,142 $2,380 $2,618 $2,856
Total Long-term Assets $20,000 $19,762 $19,524 $19,286 $19,048 $18,810 $18,572 $18,334 $18,096 $17,858 $17,620 $17,382 $17,144
Total Assets $46,000 $38,192 $47,073 $48,922 $51,470 $55,709 $58,400 $64,039 $68,131 $74,156 $80,216 $82,411 $84,207
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $0 $8,990 $10,247 $11,503 $13,050 $13,050 $14,597 $14,597 $16,530 $17,448 $15,902 $14,307
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $0 $8,990 $10,247 $11,503 $13,050 $13,050 $14,597 $14,597 $16,530 $17,448 $15,902 $14,307
Long-term Liabilities $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total Liabilities $50,000 $50,000 $58,990 $60,247 $61,503 $63,050 $63,050 $64,597 $64,597 $66,530 $67,448 $65,902 $64,307
Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000) ($54,000)
Earnings $0 ($7,808) ($7,917) ($7,325) ($6,033) ($3,341) ($650) $3,442 $7,534 $11,626 $16,767 $20,509 $23,901
Total Capital ($4,000) ($11,808) ($11,917) ($11,325) ($10,033) ($7,341) ($4,650) ($558) $3,534 $7,626 $12,767 $16,509 $19,901
Total Liabilities and Capital $46,000 $38,192 $47,073 $48,922 $51,470 $55,709 $58,400 $64,039 $68,131 $74,156 $80,216 $82,411 $84,207
Net Worth ($4,000) ($11,808) ($11,917) ($11,325) ($10,033) ($7,341) ($4,650) ($558) $3,534 $7,626 $12,767 $16,509 $19,901

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