- We want to finance growth solely through cash flow. We recognize that this means we will have to grow more slowly than we might like but that no assessment of members or borrowing is necessary.
- The most important factor in our case is attention to details and to the plan. Therefore, we need to develop a permanent system of communication and accountability between the executive director and the board of directors and officers.
- We are also assuming beginning cash reserves on June 30th of $12,000 according the the Treasurer.
7.1 Important Assumptions
Notes for Funding chart for 1999-2000 (FY2000):
- Dues revenue assumes 50 members (new and renewing) at $250 from Exec. Dir. visiting all potential members in state and calling potential associate members.
- Meeting revenue assumes 20 people per monthly meeting paying $25 each for dinner and meeting.
- Motorcycle Show revenue assumes 11,000 consumers @$10 and 20,000 sq ft @$1.
- SuperRide revenue comes from Registrations, Exhibitors, Advertisers, Sponsors, and Specials. Separate chart is attached for projected SuperRide forecast.
- Awards Banquet Revenue assumes 400 people paying $30 each plus $5,000 sponsorships.
- Conference Revenue assumes 200 people paying $125 each plus $5,000 sponsors and exhibitors.
- Motorcycle Show costs include $10,000 for space, $9,000 advertising, $1,000 other costs.
- SuperRide costs include Promotion expense, cost of Event, and General expenses such as credit card charges, postage for confirmations, etc.
7.2 Projected Surplus or Deficit
Our projected surplus and deficit is shown on the following table, with funding increasing from more than $195K the first year to more than $263K the third. Profits may be applied to legislative activities, marketing activities, or held for contingencies.
The detailed monthly projections are included in the appendix.
7.3 Projected Cash Flow
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.
7.4 Projected Balance Sheet
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.
7.5 Standard Ratios
The following table outlines some of the more important ratios from the Convention and Trade Show Organizers industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 7389.