The Spot
Financial Plan
Forecast
Key Assumptions
Our Key assumptions are:
- College kids like to go out and dance and drink
- They can pay some entrance fees but there is a threshold (ie too high)
- Our survival is based on popularity / the place to be. We keep key people happy and we will keep our club full.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Start-up expenses listed in retained earning december 2017:
Legal $2,000
Stationery etc. $500
Insurance $1,000
Rent $4,000
Interior Refit $30,000
Expensed Equipment $20,000
Air Cond. Upgrade $5,000
Audio/Lighting $10,000
Bar Equipment/Supply $10,000
Fees and Permits $7,000
Bathroom Upgrades $5,000
Initial Marketing $3,000
Opening Salaries Deposits $15,000
TOTAL START-UP EXPENSES$112,500
Sources of Funds
We will be getting $210,000 from the three co owners:
Robert Shaw $70,000
Jill Morse $70,000
Sheila Thompson $70,000
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $1,696,350 | $1,875,000 | $1,981,450 |
| Direct Costs | $562,590 | $612,360 | $642,579 |
| Gross Margin | $1,133,760 | $1,262,640 | $1,338,871 |
| Gross Margin % | 67% | 67% | 68% |
| Operating Expenses | |||
| Salaries & Wages | $523,200 | $533,664 | $544,334 |
| Employee Related Expenses | $104,640 | $106,733 | $108,867 |
| Rent | $48,000 | $48,000 | $48,000 |
| Utilities | $3,600 | $3,600 | $3,600 |
| Insurance | $12,000 | $12,000 | $12,000 |
| Leased Equipment | $36,000 | $36,000 | $36,000 |
| Sales | $14,400 | $14,400 | $14,400 |
| Marketing | $9,000 | $9,000 | $9,000 |
| Total Operating Expenses | $750,840 | $763,397 | $776,201 |
| Operating Income | $382,920 | $499,243 | $562,670 |
| Interest Incurred | $2,767 | $2,052 | $389 |
| Depreciation and Amortization | $2,857 | $2,857 | $2,857 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $56,594 | $74,150 | $83,914 |
| Total Expenses | $1,375,648 | $1,454,816 | $1,505,940 |
| Net Profit | $320,702 | $420,184 | $475,510 |
| Net Profit/Sales | 19% | 22% | 24% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $77,500 | $310,295 | $680,490 | $1,149,490 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $204,122 | $214,194 | $214,197 | |
| Other Current Assets | ||||
| Total Current Assets | $77,500 | $514,417 | $894,684 | $1,363,687 |
| Long-Term Assets | $20,000 | $20,000 | $20,000 | $20,000 |
| Accumulated Depreciation | ($2,857) | ($5,714) | ($8,571) | |
| Total Long-Term Assets | $20,000 | $17,143 | $14,286 | $11,429 |
| Total Assets | $97,500 | $531,559 | $908,969 | $1,375,115 |
| Accounts Payable | $38,607 | $40,193 | $40,193 | |
| Income Taxes Payable | $21,984 | $18,571 | $20,985 | |
| Sales Taxes Payable | ||||
| Short-Term Debt | $0 | $52,767 | $11,819 | $41 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $0 | $113,358 | $70,584 | $61,220 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $0 | $113,358 | $70,584 | $61,220 |
| Paid-In Capital | $210,000 | $210,000 | $210,000 | $210,000 |
| Retained Earnings | ($112,500) | ($112,500) | $208,202 | $628,386 |
| Earnings | $320,702 | $420,184 | $475,510 | |
| Total Owner’s Equity | $97,500 | $418,202 | $838,386 | $1,313,896 |
| Total Liabilities & Equity | $97,500 | $531,559 | $908,969 | $1,375,115 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $320,702 | $420,184 | $475,510 |
| Depreciation & Amortization | $2,857 | $2,857 | $2,857 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($204,122) | ($10,072) | ($3) |
| Change in Accounts Payable | $38,607 | $1,587 | $0 |
| Change in Income Tax Payable | $21,984 | ($3,413) | $2,414 |
| Change in Sales Tax Payable | |||
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $180,028 | $411,143 | $480,779 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $52,767 | ($40,948) | ($11,778) |
| Change in Long-Term Debt | |||
| Net Cash from Financing | $52,767 | ($40,948) | ($11,778) |
| Cash at Beginning of Period | $77,500 | $310,295 | $680,490 |
| Net Change in Cash | $232,795 | $370,195 | $469,000 |
| Cash at End of Period | $310,295 | $680,490 | $1,149,490 |
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