We are assuming start-up capital of $336,500 and a long-term (20 year) bank loan of $1,250,000. The remainder of the necessary financing will come through investors.
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
The following table and chart summarize our break-even analysis.
Our projected profit and loss is shown on the following table. We show a conservative estimate of net profits/sales, with that increasing each year. According to the research done through ** and **, these projections are very conservative and should be easily attained.
The detailed monthly projections are included in the appendix.
** Confidential or proprietary information deleted.
The following cash flow projections show our annual amounts only. For more detailed monthly projections please see the appendix.
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7991, Sports Programs - Indoor Courts, are shown for comparison.