Occasions
Financial Plan
Forecast
Key Assumptions
- Good social media and positive response. We need advocates in social media.
- Consistent posting in Twitter and Facebook
- No surprises in economic trends
- Ability to convert some existing relationships into clients
- Home office works
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Through careful planning on the part of the founders, the start-up costs for Occasions are minimal. It began as a home-based business with little overhead, and it continues to demand fewer outlay of funds as a service-based business. The start-up cost investment funds were assets saved from prior earnings by the owners who did event planning on a part-time basis before establishing themselves as a business.
It is the wish of the founders to remain a debt-free establishment. However, recognizing that in reality not all variables are controllable, outside financing is a viable option. Both founders own homes and have a perfect credit rating.
Legal $200
Stationery etc. $300
Brochures $185
Consultants $200
Insurance $145
Rent $150
Expensed Equipment $1,985
Other $200
TOTAL START-UP EXPENSES $3,365
Sources of Funds
The business owners will contribute 25,000 to cover startup expenses and expansion.
Statements
Projected Profit & Loss
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Revenue | $347,352 | $410,000 | $460,000 |
| Direct Costs | $62,523 | $73,800 | $82,800 |
| Gross Margin | $284,829 | $336,200 | $377,200 |
| Gross Margin % | 82% | 82% | 82% |
| Operating Expenses | |||
| Salaries & Wages | $152,600 | $209,500 | $236,055 |
| Employee Related Expenses | $30,520 | $41,900 | $47,211 |
| Utilities | $1,500 | $1,500 | $1,500 |
| Rent | $15,600 | $15,600 | $15,600 |
| Insurance | $3,000 | $3,000 | $3,000 |
| Startup Costs from Use of Funds | $3,365 | ||
| Sales and Marketing | $29,115 | $18,000 | $21,000 |
| Total Operating Expenses | $235,700 | $289,500 | $324,366 |
| Operating Income | $49,129 | $46,700 | $52,834 |
| Interest Incurred | $1,119 | ($1) | $0 |
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $12,003 | $11,675 | $13,208 |
| Total Expenses | $311,345 | $374,975 | $420,374 |
| Net Profit | $36,007 | $35,025 | $39,626 |
| Net Profit/Sales | 10% | 9% | 9% |
Projected Balance Sheet
| Starting Balances | 2019 | 2020 | 2021 | |
|---|---|---|---|---|
| Cash | $31,196 | $67,571 | $53,739 | |
| Accounts Receivable | $51,469 | $42,440 | $47,680 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $82,665 | $110,011 | $101,419 | |
| Long-Term Assets | ||||
| Accumulated Depreciation | ||||
| Total Long-Term Assets | ||||
| Total Assets | $82,665 | $110,011 | $101,419 | |
| Accounts Payable | $8,508 | $7,460 | $8,260 | |
| Income Taxes Payable | $8,982 | $2,919 | $3,301 | |
| Sales Taxes Payable | $4,168 | $3,600 | $4,200 | |
| Short-Term Debt | $0 | $0 | ($1) | ($1) |
| Prepaid Revenue | ||||
| Total Current Liabilities | $0 | $21,658 | $13,979 | $15,760 |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $0 | $21,658 | $13,979 | $15,760 |
| Paid-In Capital | $25,000 | $25,000 | $25,000 | |
| Retained Earnings | $0 | $0 | $36,007 | $21,032 |
| Earnings | $36,007 | $35,025 | $39,626 | |
| Total Owner’s Equity | $0 | $61,007 | $96,032 | $85,658 |
| Total Liabilities & Equity | $0 | $82,665 | $110,011 | $101,419 |
Projected Cash Flow Statement
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $36,007 | $35,025 | $39,626 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | ($51,469) | $9,029 | ($5,240) |
| Change in Inventory | |||
| Change in Accounts Payable | $8,508 | ($1,048) | $800 |
| Change in Income Tax Payable | $8,982 | ($6,063) | $382 |
| Change in Sales Tax Payable | $4,168 | ($568) | $600 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $6,196 | $36,375 | $36,168 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $25,000 | ||
| Dividends & Distributions | ($50,000) | ||
| Change in Short-Term Debt | $0 | $0 | $0 |
| Change in Long-Term Debt | |||
| Net Cash from Financing | $25,000 | $0 | ($50,000) |
| Cash at Beginning of Period | $0 | $31,196 | $67,571 |
| Net Change in Cash | $31,196 | $36,375 | ($13,832) |
| Cash at End of Period | $31,196 | $67,571 | $53,739 |
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