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Customer Service icon Personal Shopping Services Business Plan

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Buy The Time

Executive Summary

Buy the Time will be a shopping service that allows customers to purchase gifts and necessities of life at little inconvenience to their schedule and workday. We will do this with the aid of a shopping consultant to provide each customer with quality solutions to their shopping concerns at reasonable prices. The owner has had years of experience in the retail market and is aware of trends and the shopping environment. In time, this service will evolve to incorporate a larger market instead of a luxury for the more wealthy customers.

Personal shopping services business plan, executive summary chart image

1.1 Mission

The mission of Buy the Time is to offer custom goods for all occasions with minimal interruptions into our clients’ daily activities. We want our customers to be able to give special gifts to their loved ones without it being a stressful event. We will strive to provide expert consultants in order to guide the client from start to finish with low-cost, reliable information in a timely fashion.

1.2 Objectives

The objectives for the company are outlined below:

  • Obtain and service clients with a knowledgeable sales team offering purchases of goods based on desires and needs.
  • For a low charge, allow people to obtain custom items with minimal interruption into their day and life.
  • Grow into a large franchise with a reputation for getting the desired item at a reasonable cost.

1.3 Keys to Success

In order to ensure a healthy profit and low customer turnover, Buy the Time will have to:

  • Provide a significantly easier, more convenient, and customized shopping experience than can be found in high-end stores.
  • Ensure 100% customer satisfaction.
  • Establish close ties with the clients to ensure repeat business, encourage customer feedback to enhance further customized service, and promote word-of-mouth marketing.
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Company Summary

Buy the Time is a shopping service which allows the client to purchase custom items without stress. With our expert staff, we intend to grow into a larger market where we can still be personable, yet offer greater choices.

Our ideal larger market will expand from the Seattle area to include New York, San Francisco, Los Angeles, Chicago, and Miami.

2.1 Company Ownership

Buy the Time will be a Seattle, WA-based company. It will be formed as a simple sole proprietorship. The company will operate as a home business until such time as expansion is required.

Jade Kousky is the owner and sole proprietor. With many years of retail experience, she brings a unique knowledge of discovering solutions to personal needs at low cost. Many have known her to have a personal flare for anticipating trends and an ability to match purchases to a client’s desires.

With growth, Ms. Kousky plans to convert the sole proprietorship into a corporation, still maintaining major control. Each location manager will operate as a key figure in the growth and evolution of Buy the Time.

2.2 Start-up Summary

Originally, operation will be based out of the owner’s residence. One-to-one service can be provided by meeting the client at a time and place most convenient for them. This will cut unnecessary costs while still providing superb service.

Personal shopping services business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $1,250
Start-up Assets to Fund $3,650
Total Funding Required $4,900
Assets
Non-cash Assets from Start-up $2,400
Cash Requirements from Start-up $1,250
Additional Cash Raised $0
Cash Balance on Starting Date $1,250
Total Assets $3,650
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $3,250
Private Investor $1,650
Other $0
Additional Investment Requirement $0
Total Planned Investment $4,900
Loss at Start-up (Start-up Expenses) ($1,250)
Total Capital $3,650
Total Capital and Liabilities $3,650
Total Funding $4,900
Start-up
Requirements
Start-up Expenses
Legal $300
Stationery etc. $150
Brochures $200
Consultants $0
Insurance $0
Rent $0
Research and development $100
Expensed equipment $500
Other $0
Total Start-up Expenses $1,250
Start-up Assets
Cash Required $1,250
Other Current Assets $400
Long-term Assets $2,000
Total Assets $3,650
Total Requirements $4,900

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Services

Buy the Time will offer an expert consultant for all occasions. This consultant will specialize in personal gifts and ideas for people who desire the latest fashions and/or gift solutions for individuals who are hard to shop for. This service will provide insight, research, purchases, and delivery in custom packaging. The focus of the company is the needs of the client. It is the job of the consultant to translate those needs into low-cost solutions.

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Market Analysis Summary

Buy the Time will target the middle-aged, busy executive. These individuals often have extremely busy schedules, including a great deal of travel time. In addition, they possess a large proportion of disposable income that allows them to afford custom services. This service will allow them more concentration on work, while allowing them to obtain great products for personal and business life.

4.1 Market Segmentation

The target market for Buy the Time is broken into three segments:

  1. Busy executives desiring to keep pace with the trends, yet not having the time to facilitate their needs.
  2. Younger business persons who choose to have the luxury and convenience of a personalized shopping service.
  3. Those needing consultation in gifts and/or not wanting the pressures that are associated with finding custom gifts for special occasions.
Personal shopping services business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Executives 52% 500 900 1,300 4,000 6,400 89.15%
Business Persons 32% 260 500 800 2,010 3,900 96.80%
Other 15% 60 240 400 1,000 1,840 135.32%
Total 96.16% 820 1,640 2,500 7,010 12,140 96.16%

4.2 Market Needs

Buy the Time’s primary market, the executive or high-end professional individual, has certain needs that are outlined below.

  • They often find that their image is very important, both professionally and personally. They need advice or information on what the latest trends and fashions are.
  • They keep busy schedules that often involve a lot of travel. This leaves little time for shopping that is time consuming, such as gift buying.
  • They have a desire to be pampered and willingly spend money as a symbol of status.

4.3 Target Market Segment Strategy

The best way to develop the company is to make our service necessary and accessible to the public. By facilitating their needs easily, we offer a great service at little inconvenience to them in a time where convenience matters the most.

In its broadest definition, the American shopping market consists of every American who needs to buy goods and services for themselves and their families. Although it is the aim of Buy the Time to eventually reach out to a wide range of shoppers, including middle income families, busy professionals, and people looking for “hard to find” items, the company will focus first on the busy executive-type shopper.

4.4 Service Business Analysis

Buy the Time offers the service of shopping advice/expertise in trends, fashions, and emerging products, along with the purchasing and delivery of such items to the customer’s residence. It is assumed that most of the items purchased will be in single or small quantities. The primary attraction of such a service is that it significantly cuts down on shopping time for busy customers who wish to utilize their time for other purposes. With the advent of computers and the Internet, it is believed that this service can be offered at a low cost, and can be enhanced through the use of an established-customer database to track individual preferences.

4.5 Competition and Buying Patterns

This is a luxury service. An affordable cost will be needed to maintain clients and keep their needs constant. This requires being aware of economic changes, as well as alterations in trends.

At the moment, there are few services like this in the Seattle area. Therefore, there is a tremendous opportunity to build and retain significant market share. Customers choose and retain services like this often through word-of-mouth, when the company is able to achieve a high level of customer satisfaction. Although it is the aim of Buy the Time to significantly lower costs of this luxury service, at this time, cost does not play a significant factor in how customers choose a shopping service. The bottom line is establishing a strong intimate relationship with customers to capture the long-term profits through repeat business and create the enthusiasm among customers that will spur on word-of-mouth marketing.

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Strategy and Implementation Summary

Buy the Time will concentrate on expanding in metropolitan areas that have significant growth of young business persons and executives. Starting in Seattle, it will grow down the west coast to San Francisco and Los Angeles. From there we will target the east coast with locations in New York City, Miami, and Chicago.

The target customer is a busy business person unable to find time for purchasing custom goods. We will provide this tailored service to work around their schedules, while maintaining a low cost.

5.1 Competitive Edge

Our competitive edge lies in our expert service at a reasonable price. We will transform this service from a luxury into a demand service. We will provide a database for remembering occasions and dates, this will allow the client to remain stress-free. Buy the Time was created by an expert shopper who knows trends, prices, and details, such as fabrics and colors.

We are aware that there will be others trying to offer such a service, but only we will be able to provide such services at a low cost, with friendly consultants, and an ability to find exactly what our clients desire.

5.2 Sales Strategy

Our sales will be generated from repeat clients. This service will be established as an easy and friendly way to shop without the hassle. We will offer low introductory costs for our services. To ensure that all purchases will be worthwhile for the consultant, all of our orders will have a minimal amount required to cover any expenses incurred. This will be minimal, allowing for our services to be affordable.

Ms. Kousky has enough contacts in the Seattle area who have expressed interest in the service that no advertising will be needed for the first year of operation. Subsequent advertising (which may not start until year four or five) will depend on word-of-mouth, a website, telephone directory ads, local newspaper ads and articles, and brochures.

5.2.1 Sales Forecast

The following chart and table document forecasted sales.

In both April and May we expect a two percent growth each month. From June to September, each month should reflect a growth of five percent, since many activities occur during the summer months. October will show approximately four percent, since this is usually a time of transitions. November and December will show an increase to seven percent, with many people buying for the holidays. January through April will be an increase of one percent each month, since this is a slow retail period.

This will result in a growth of 68% after the first year. From that, sales in 2002 will see a growth of 57% as we develop our team of consultants. By 2003, sales will show a 78% growth. By the end of the third year, we will be able to move into markets outside the Seattle area.

Personal shopping services business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Jade Kousky – Owner $32,365 $41,000 $50,000
Retail Consultant 1 $0 $25,000 $33,000
Total Sales $32,365 $66,000 $83,000
Direct Cost of Sales Year 1 Year 2 Year 3
Jade Kousky – Owner $11,250 $18,750 $22,500
Retail Consultant 1 $0 $9,000 $15,000
Subtotal Direct Cost of Sales $11,250 $27,750 $37,500

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Management Summary

As Buy the Time grows, we will add consultants so that we may continue to offer personalized service in a timely fashion. Originally, it will start with the owner as the sole employee. By the end of the first year, another consultant will be added. From that point we will add a consultant when we choose to grow into different markets. We will shape our team depending on sales and growth.

Marketing and public relations will be handled mainly by the owner. If there is a greater need, a marketing consultant will be used.

Personnel Plan
Year 1 Year 2 Year 3
Owner $15,000 $30,000 $37,000
Other $0 $0 $0
Total People 0 0 0
Total Payroll $15,000 $30,000 $37,000

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Financial Plan

Growth will occur according to the number of clients and cash flow.

With approximately half of our services provided on credit, collection will be essential. With this still being a service that is not essential to everyday living, we will show that payments are necessary immediately. With a concrete system for cash flow, we will be able to keep debt to a minimum, while still providing a high level of sales.

7.1 Important Assumptions

The following assumptions are made responding to growth, and are based on economic trends from the preceding two years.

  • A strong economy is expected to continue in the future.
  • Many people have annual dates on which purchases are made.
  • It is assumed that people are willing to pay for a service if it is an agreeable and convenient experience.

The table below outlines some business assumptions that are the basis for Buy The Time’s growth, including tax rate and payment days.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

Our break-even analysis is shown in further detail in the following chart and table.

This is a conservative figure since contacts have been made, and have already generated many orders for our services. Buy the Time’s goal is to generate twice as much as the break-even point for a monthly standard.

Personal shopping services business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $1,916
Assumptions:
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost $1,250

7.3 Projected Profit and Loss

Buy the Time’s projected profit and loss is indicated in the following table. Gross margin should remain between 50-70% the first year, with highest profits due near the end of the year. This should prove to be accurate, since that is a time when many clients increase their spending.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $32,365 $66,000 $83,000
Direct Cost of Sales $11,250 $27,750 $37,500
Other $0 $0 $0
Total Cost of Sales $11,250 $27,750 $37,500
Gross Margin $21,115 $38,250 $45,500
Gross Margin % 65.24% 57.95% 54.82%
Expenses
Payroll $15,000 $30,000 $37,000
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $0 $0 $0
Rent $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $15,000 $30,000 $37,000
Profit Before Interest and Taxes $6,115 $8,250 $8,500
EBITDA $6,115 $8,250 $8,500
Interest Expense $0 $0 $0
Taxes Incurred $1,528 $2,063 $2,160
Net Profit $4,587 $6,188 $6,340
Net Profit/Sales 14.17% 9.38% 7.64%

7.4 Projected Cash Flow

The following chart and table outline the cash flow for fiscal years 2002, 2003, and 2004. For a monthly analysis, please see the attached appendix.

Personal shopping services business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $17,801 $36,300 $45,650
Cash from Receivables $11,759 $26,785 $35,877
Subtotal Cash from Operations $29,560 $63,085 $81,527
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $29,560 $63,085 $81,527
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $15,000 $30,000 $37,000
Bill Payments $11,630 $28,509 $38,851
Subtotal Spent on Operations $26,630 $58,509 $75,851
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $26,630 $58,509 $75,851
Net Cash Flow $2,929 $4,575 $5,676
Cash Balance $4,179 $8,755 $14,430

7.5 Projected Balance Sheet

The Balance Sheet table for fiscal years 2002, 2003, and 2004 follows. For a monthly analysis, please see the attached appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $4,179 $8,755 $14,430
Accounts Receivable $2,805 $5,721 $7,194
Other Current Assets $400 $400 $400
Total Current Assets $7,385 $14,875 $22,024
Long-term Assets
Long-term Assets $2,000 $2,000 $2,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000
Total Assets $9,385 $16,875 $24,024
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $1,147 $2,450 $3,260
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $1,147 $2,450 $3,260
Long-term Liabilities $0 $0 $0
Total Liabilities $1,147 $2,450 $3,260
Paid-in Capital $4,900 $4,900 $4,900
Retained Earnings ($1,250) $3,337 $9,525
Earnings $4,587 $6,188 $6,340
Total Capital $8,237 $14,425 $20,764
Total Liabilities and Capital $9,385 $16,875 $24,024
Net Worth $8,237 $14,425 $20,764

7.6 Business Ratios

The following table provides significant ratios for the personal services industry. The final column, Industry Profile, shows ratios for this industry as it is determined by the Standard Industrial Classification (SIC) Index 7299, “miscellaneous personal services.”

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 103.92% 25.76% -8.50%
Percent of Total Assets
Accounts Receivable 29.89% 33.90% 29.95% 6.70%
Other Current Assets 4.26% 2.37% 1.66% 26.40%
Total Current Assets 78.69% 88.15% 91.68% 43.50%
Long-term Assets 21.31% 11.85% 8.32% 56.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.23% 14.52% 13.57% 19.50%
Long-term Liabilities 0.00% 0.00% 0.00% 21.40%
Total Liabilities 12.23% 14.52% 13.57% 40.90%
Net Worth 87.77% 85.48% 86.43% 59.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 65.24% 57.95% 54.82% 50.80%
Selling, General & Administrative Expenses 51.07% 54.26% 47.14% 34.40%
Advertising Expenses 0.00% 0.00% 0.00% 0.20%
Profit Before Interest and Taxes 18.89% 12.50% 10.24% 1.50%
Main Ratios
Current 6.44 6.07 6.76 2.09
Quick 6.44 6.07 6.76 1.03
Total Debt to Total Assets 12.23% 14.52% 13.57% 40.90%
Pre-tax Return on Net Worth 74.24% 57.19% 40.94% 1.10%
Pre-tax Return on Assets 65.16% 48.89% 35.38% 1.90%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 14.17% 9.38% 7.64% n.a
Return on Equity 55.69% 42.90% 30.53% n.a
Activity Ratios
Accounts Receivable Turnover 5.19 5.19 5.19 n.a
Collection Days 57 52 63 n.a
Accounts Payable Turnover 11.14 12.17 12.17 n.a
Payment Days 27 22 26 n.a
Total Asset Turnover 3.45 3.91 3.45 n.a
Debt Ratios
Debt to Net Worth 0.14 0.17 0.16 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $6,237 $12,425 $18,764 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.29 0.26 0.29 n.a
Current Debt/Total Assets 12% 15% 14% n.a
Acid Test 3.99 3.74 4.55 n.a
Sales/Net Worth 3.93 4.58 4.00 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Jade Kousky – Owner 0% $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Retail Consultant 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Jade Kousky – Owner $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Retail Consultant 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Owner 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Gross Margin $1,231 $1,244 $1,353 $1,467 $1,587 $1,713 $1,766 $1,954 $2,155 $2,186 $2,217 $2,248
Gross Margin % 56.76% 57.02% 59.06% 61.00% 62.86% 64.62% 65.32% 67.57% 69.68% 69.98% 70.28% 70.57%
Expenses
Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Profit Before Interest and Taxes ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
EBITDA ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($6) ($2) $26 $54 $84 $116 $129 $176 $226 $234 $242 $249
Net Profit ($14) ($5) $77 $162 $252 $347 $387 $528 $678 $702 $725 $748
Net Profit/Sales -0.63% -0.22% 3.36% 6.75% 10.00% 13.09% 14.30% 18.25% 21.94% 22.47% 22.98% 23.49%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $1,192 $1,200 $1,260 $1,322 $1,388 $1,458 $1,487 $1,590 $1,701 $1,718 $1,735 $1,752
Cash from Receivables $0 $33 $976 $983 $1,032 $1,084 $1,138 $1,193 $1,219 $1,304 $1,392 $1,406
Subtotal Cash from Operations $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Bill Payments $31 $932 $937 $964 $993 $1,023 $1,054 $1,068 $1,115 $1,164 $1,172 $1,179
Subtotal Spent on Operations $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429
Net Cash Flow ($89) ($950) $49 $91 $178 $268 $321 $465 $555 $608 $705 $728
Cash Balance $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $1,250 $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179
Accounts Receivable $0 $976 $1,925 $1,979 $2,078 $2,182 $2,290 $2,369 $2,477 $2,649 $2,750 $2,778 $2,805
Other Current Assets $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Total Current Assets $1,650 $2,537 $2,536 $2,639 $2,829 $3,111 $3,488 $3,887 $4,460 $5,187 $5,897 $6,629 $7,385
Long-term Assets
Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total Assets $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Paid-in Capital $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900
Retained Earnings ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250)
Earnings $0 ($14) ($19) $58 $221 $473 $820 $1,207 $1,734 $2,413 $3,114 $3,839 $4,587
Total Capital $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237
Total Liabilities and Capital $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385
Net Worth $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237

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