The following sections will outline the general financial assumptions, break-even analysis, profit and loss, cash flow, balance sheet and business ratios.
7.1 Important Assumptions
The following table shows some of the basic financial assumptions used in this business plan.
7.2 Break-even Analysis
The Break-even Analysis indicates approximately $1,700 is needed in monthly revenue to break even. The Estimated Monthly Fixed Cost varies over the course of the first year, as seen in the P & L appendix table, and this figure is an average based on the first-year totals.
7.3 Projected Profit and Loss
The following table will indicate projected profit and loss.
7.4 Projected Cash Flow
Heavy Metal Praise will begin with adequate investment to cover the beginning months of negative cash flow and, as shown below, have an overall increase in cash balance by the end of the first plan year.
7.5 Projected Balance Sheet
The following chart and table indicates balance sheet.
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7929, Musical Groups and Artists, are shown for comparison.