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Crafts icon Pottery Studio Business Plan

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The Pottery Table

Executive Summary

The Pottery Table is a new 44-seat paint-it-yourself pottery studio in Monroe. It’s fun. It’s easy. It’s a great place to have a party or create a one-of-a-kind gift.

The store staff provides the pre-fired pottery, supplies, and a clean, cozy, and relaxing place to put it all together–plus idea books and a helpful staff to get the “artist” started. The customers provide the inspiration to create unique gifts with a warm and personal touch–like a mug with a child’s handprint, a custom photo frame, or a bowl for a canine companion.

A customer can even create items to match home decor with unmatched creative flexibility and color choice. The Pottery Table supplies everything the “artist” needs:

  • Hundreds of pre-fired pottery choices.
  • A huge selection of non-toxic glazes.
  • All the brushes, sponges, and supplies.

When the artist is finished, a clear glaze will be applied and the pottery will be re-fired. The customer can pick up his or her work in about a week. It’s food and dishwasher safe.

Janet Miller, owner of The Pottery Table, has been a pottery instructor for over ten years, including leading classes through the city’s recreation program. Over the ten years, she has instructed hundreds of children and adults in the joy of creating unique pottery.

Pottery studio business plan, executive summary chart image

1.1 Objectives

The objectives of The Pottery Table are as follows:

  • Achieve 80% class capacity in the studio within the first year of operation.
  • Create a successful pre-school pottery program.
  • Create a successful new mother’s pottery program.
  • Create a successful seniors pottery program.

1.2 Mission

The mission of The Pottery Table is to provide customers a great creative environment in which to design and create their one-of-a-kind pottery.

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Company Summary

The Pottery Table is a new 44-seat paint-it-yourself pottery studio in Monroe. The business is organized as a limited partnership. Janet Miller will operate the business and the silent partner will perform limited accounting responsibilities.

The Pottery Table is located in the Grand Avenue Shopping Center. The smaller mall has a number of retail stores, coffee shops and restaurants, with a reasonable amount of shared parking.

2.1 Company Ownership

Janet Miller and a silent partner are the owners of The Pottery Table.

2.2 Start-up Summary

The start-up cost of The Pottery Table will consist primarily of firing equipment and studio set up. Janet Miller and a silent partner will invest equally. Janet will also secure a long-term loan.

Pottery studio business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $200
Brochures $200
Insurance $500
Rent $700
Studio Setup $13,000
Total Start-up Expenses $15,100
Start-up Assets
Cash Required $13,900
Start-up Inventory $7,000
Other Current Assets $0
Long-term Assets $44,000
Total Assets $64,900
Total Requirements $80,000
Start-up Funding
Start-up Expenses to Fund $15,100
Start-up Assets to Fund $64,900
Total Funding Required $80,000
Assets
Non-cash Assets from Start-up $51,000
Cash Requirements from Start-up $13,900
Additional Cash Raised $0
Cash Balance on Starting Date $13,900
Total Assets $64,900
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $10,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $10,000
Capital
Planned Investment
Janet Miller $30,000
Silent Partner $40,000
Additional Investment Requirement $0
Total Planned Investment $70,000
Loss at Start-up (Start-up Expenses) ($15,100)
Total Capital $54,900
Total Capital and Liabilities $64,900
Total Funding $80,000

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Products and Services

The Pottery Table offers the following products and services:

  • Instruction on painting and placing designs on pottery. Classes are $50 per person.
  • Hundreds of pre-fired pottery choices. Starting at $5 and up.
  • A huge selection of non-toxic glazes.
  • All the brushes, sponges, and supplies needed.
  • Unlimited studio time at $10 a session.
  • Special gift basket pottery, ranging from $30- $70.
  • Sale of pottery tools and accessories.
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Market Analysis Summary

The city of Monroe has a population of 120,000 residents. Over the past four years there has been significant growth in participation in the city’s park arts program.

The groups that have been most supportive of the program are youths and seniors. Approximately 20% (24,000) of the population are active seniors who participate in numerous programs around the city. Youths, under the age of ten, represent 35% of the city’s population.

Recently, due to budget cuts, the arts program has been discontinued. The Pottery Table is positioned to attract the patrons of the discontinued arts program. The Pottery Table will establish a programs specifically targeting seniors, young children, and new mothers.

4.1 Market Segmentation

The Pottery Table will focus on three customer groups:

  • Seniors;
  • Youth (ages 3 – 10);
  • New mothers.
Pottery studio business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Seniors 12% 34,000 38,080 42,650 47,768 53,500 12.00%
Youths (ages 3-10) 10% 42,000 46,200 50,820 55,902 61,492 10.00%
New Mothers 5% 10,000 10,500 11,025 11,576 12,155 5.00%
Total 10.27% 86,000 94,780 104,495 115,246 127,147 10.27%

4.2 Target Market Segment Strategy

The target market strategy for The Pottery Table is as follows:

  • Seniors: This is an important group for morning and early afternoon studio time. Active seniors are members of community senior organizations and clubs. The Pottery Table can market directly to these groups in order to attract seniors.
  • Youth (ages 3 – 10): The Pottery Table will focus on bringing pre-schoolers in during the morning and early afternoon and school-aged children during the late afternoon.
  • New Mothers: The Pottery Table believes that marketing to new mothers is the best way to build future customers. The new mother’s program will focus on creating pottery that will celebrate the new baby.

4.3 Service Business Analysis

The Pottery Table is a do-it-yourself craft business where customers create their own unique piece of pottery.

There has been a number of successful do-it-yourself businesses that focus on the joy of the creative process. Currently, in Monroe, there is only one existing pottery store that offers the same service. The Kiln Room is located on the south side of town, in the commercial district. Its focus is the more serious pottery customer.

The Pottery Table’s focus is more entertainment than education. The key is how the customer feels about the experience rather than the pottery. Repeat business, as well as referrals, are crucial to the success of a craft business.

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Strategy and Implementation Summary

The Pottery Table will develop relationships with senior centers, senior organizations/clubs, childcare programs and afterschool programs. The Pottery Table will offer discounted group rates in order to promote sales.

5.1 Competitive Edge

Janet Miller is the competitive edge for The Pottery Table. Janet has been a pottery instructor for the city’s arts program for the past ten years. She is a highly-respected artist and instructor in the community.

Over the years she has built a loyal following of students who have returned to her, again and again, for more instruction. She has visited the city’s senior center and childcare centers promoting her program. Most importantly, she is the most visible symbol of the now discontinued city’s arts program.

5.2 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will be holding follow-up meetings every month to discuss the variance and course corrections.

Pottery studio business plan, strategy and implementation summary chart image

Milestones
Milestone Start Date End Date Budget Manager Department
Studio Setup 3/1/2002 4/1/2002 $13,000 Janet Miller Marketing
Inventory Setup 3/1/2002 4/1/2002 $7,000 Janet Miller Department
Marketing Campaign 3/1/2002 4/15/2001 $300 Janet Miller Department
Totals $20,300

5.3 Sales Strategy

The Pottery Table’s sales strategy is to sell the creative experience to the target customers. Janet Miller will make presentations at senior centers, childcare centers, afterschool programs and parent groups.

The Pottery Table will offer free sessions for children during the first month of business. Children will be given a small cup to paint that is part of a set. The Pottery Table will promote the children coming back and painting another cup in the set.

5.3.1 Sales Forecast

The following is the sales forecast for the next three years.

Pottery studio business plan, strategy and implementation summary chart image

Pottery studio business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Group Instruction $36,200 $53,000 $66,000
Studio Time $40,500 $55,000 $68,000
Pottery $16,500 $28,000 $35,000
Gift Basket Pottery $11,000 $22,000 $25,000
Other $5,718 $6,300 $7,200
Total Sales $109,918 $164,300 $201,200
Direct Cost of Sales Year 1 Year 2 Year 3
Group Instruction $0 $0 $0
Studio Time $0 $0 $0
Pottery $8,250 $10,400 $13,200
Gift Basket Pottery $4,710 $8,800 $10,000
Other $2,859 $3,150 $3,600
Subtotal Direct Cost of Sales $15,819 $22,350 $26,800

5.4 Marketing Strategy

The Pottery Table will pursue the following marketing strategy:

  • Seniors: Senior groups (six or more) will receive a 15% discount for group instruction and group studio time, and a 15% discount for individuals using the studio between 9 a.m. and 3 p.m. on weekdays.
  • Youth (ages 3 – 10): Youth will receive a group discount (six or more) of 15% for group instruction and group studio time.
  • New Mothers: New mothers will receive 20% discount for group instruction and group studio time.
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Management Summary

Janet Miller will be the manager of The Pottery Table.

6.1 Personnel Plan

The personnel of The Pottery Table are as follows:

  • Manager;
  • Instructors, part-time (2);
  • Aides (1).
Personnel Plan
Year 1 Year 2 Year 3
Manager $24,000 $35,000 $40,000
Instructor $27,000 $40,000 $44,000
Aides $18,000 $20,000 $22,000
Other $0 $0 $0
Total People 3 3 3
Total Payroll $69,000 $95,000 $106,000

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Financial Plan

The following is the financial plan for The Pottery Table.

7.1 Break-even Analysis

The monthly break-even point is shown in the table and chart below.

Pottery studio business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $9,426
Assumptions:
Average Percent Variable Cost 14%
Estimated Monthly Fixed Cost $8,070

7.2 Projected Profit and Loss

The following table and charts present projected profit and loss for the next three years.

Pottery studio business plan, financial plan chart image

Pottery studio business plan, financial plan chart image

Pottery studio business plan, financial plan chart image

Pottery studio business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $109,918 $164,300 $201,200
Direct Cost of Sales $15,819 $22,350 $26,800
Other Production Expenses $0 $0 $0
Total Cost of Sales $15,819 $22,350 $26,800
Gross Margin $94,099 $141,950 $174,400
Gross Margin % 85.61% 86.40% 86.68%
Expenses
Payroll $69,000 $95,000 $106,000
Sales and Marketing and Other Expenses $1,200 $1,500 $1,500
Depreciation $4,284 $4,282 $4,282
Leased Equipment $0 $0 $0
Utilities $2,400 $2,400 $2,400
Insurance $1,200 $0 $0
Rent $8,400 $8,400 $8,400
Payroll Taxes $10,350 $14,250 $15,900
Other $0 $0 $0
Total Operating Expenses $96,834 $125,832 $138,482
Profit Before Interest and Taxes ($2,735) $16,118 $35,918
EBITDA $1,549 $20,400 $40,200
Interest Expense $924 $751 $585
Taxes Incurred $0 $4,610 $10,600
Net Profit ($3,659) $10,757 $24,733
Net Profit/Sales -3.33% 6.55% 12.29%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Pottery studio business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $109,918 $164,300 $201,200
Subtotal Cash from Operations $109,918 $164,300 $201,200
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 $109,918 $164,300 $201,200
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $69,000 $95,000 $106,000
Bill Payments $31,216 $54,225 $65,702
Subtotal Spent on Operations $100,216 $149,225 $171,702
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 $1,660 $1,660 $1,660
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $101,876 $150,885 $173,362
Net Cash Flow $8,042 $13,415 $27,838
Cash Balance $21,942 $35,357 $63,195

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $21,942 $35,357 $63,195
Inventory $1,702 $2,404 $2,883
Other Current Assets $0 $0 $0
Total Current Assets $23,644 $37,762 $66,078
Long-term Assets
Long-term Assets $44,000 $44,000 $44,000
Accumulated Depreciation $4,284 $8,566 $12,848
Total Long-term Assets $39,716 $35,434 $31,152
Total Assets $63,360 $73,196 $97,230
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $3,779 $4,518 $5,479
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,779 $4,518 $5,479
Long-term Liabilities $8,340 $6,680 $5,020
Total Liabilities $12,119 $11,198 $10,499
Paid-in Capital $70,000 $70,000 $70,000
Retained Earnings ($15,100) ($18,759) ($8,002)
Earnings ($3,659) $10,757 $24,733
Total Capital $51,241 $61,998 $86,731
Total Liabilities and Capital $63,360 $73,196 $97,230
Net Worth $51,241 $61,998 $86,731

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 3269, Pottery Products, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 49.48% 22.46% 5.10%
Percent of Total Assets
Inventory 2.69% 3.28% 2.97% 18.40%
Other Current Assets 0.00% 0.00% 0.00% 39.20%
Total Current Assets 37.32% 51.59% 67.96% 76.70%
Long-term Assets 62.68% 48.41% 32.04% 23.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.96% 6.17% 5.64% 34.10%
Long-term Liabilities 13.16% 9.13% 5.16% 19.80%
Total Liabilities 19.13% 15.30% 10.80% 53.90%
Net Worth 80.87% 84.70% 89.20% 46.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.61% 86.40% 86.68% 38.40%
Selling, General & Administrative Expenses 88.94% 79.85% 74.39% 21.60%
Advertising Expenses 1.09% 0.91% 0.75% 1.20%
Profit Before Interest and Taxes -2.49% 9.81% 17.85% 2.80%
Main Ratios
Current 6.26 8.36 12.06 1.77
Quick 5.81 7.83 11.53 1.01
Total Debt to Total Assets 19.13% 15.30% 10.80% 53.90%
Pre-tax Return on Net Worth -7.14% 24.79% 40.74% 3.40%
Pre-tax Return on Assets -5.77% 20.99% 36.34% 7.40%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -3.33% 6.55% 12.29% n.a
Return on Equity -7.14% 17.35% 28.52% n.a
Activity Ratios
Inventory Turnover 5.92 10.89 10.14 n.a
Accounts Payable Turnover 9.26 12.17 12.17 n.a
Payment Days 27 28 27 n.a
Total Asset Turnover 1.73 2.24 2.07 n.a
Debt Ratios
Debt to Net Worth 0.24 0.18 0.12 n.a
Current Liab. to Liab. 0.31 0.40 0.52 n.a
Liquidity Ratios
Net Working Capital $19,865 $33,244 $60,599 n.a
Interest Coverage -2.96 21.46 61.40 n.a
Additional Ratios
Assets to Sales 0.58 0.45 0.48 n.a
Current Debt/Total Assets 6% 6% 6% n.a
Acid Test 5.81 7.83 11.53 n.a
Sales/Net Worth 2.15 2.65 2.32 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
Group Instruction 0% $1,200 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $4,000 $4,000 $3,000 $3,500 $3,500
Studio Time 0% $2,000 $3,000 $3,500 $3,500 $3,500 $3,500 $3,500 $4,000 $4,000 $3,000 $3,500 $3,500
Pottery 0% $800 $1,000 $1,200 $1,200 $1,200 $1,500 $1,500 $1,600 $1,800 $1,200 $1,500 $2,000
Gift Basket Pottery 0% $500 $700 $900 $1,000 $1,000 $800 $1,200 $1,500 $2,000 $300 $500 $600
Other 0% $300 $330 $363 $399 $439 $395 $435 $478 $850 $540 $594 $594
Total Sales $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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
Group Instruction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Studio Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Pottery $400 $500 $600 $600 $600 $750 $750 $800 $900 $600 $750 $1,000
Gift Basket Pottery $200 $300 $400 $430 $430 $300 $500 $700 $900 $100 $200 $250
Other $150 $165 $182 $200 $220 $198 $217 $239 $425 $270 $297 $297
Subtotal Direct Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
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
Manager 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Instructor 0% $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250
Aides 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750

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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
Direct Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $750 $965 $1,182 $1,230 $1,250 $1,248 $1,467 $1,739 $2,225 $970 $1,247 $1,547
Gross Margin $4,050 $6,065 $7,782 $7,870 $7,890 $7,948 $8,167 $9,839 $10,425 $7,070 $8,347 $8,647
Gross Margin % 84.38% 86.27% 86.82% 86.49% 86.33% 86.43% 84.77% 84.98% 82.41% 87.94% 87.00% 84.82%
Expenses
Payroll $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750
Sales and Marketing and Other Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Depreciation $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357 $357
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Rent $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Payroll Taxes 15% $863 $863 $863 $863 $863 $863 $863 $863 $863 $863 $863 $863
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070 $8,070
Profit Before Interest and Taxes ($4,020) ($2,005) ($288) ($200) ($180) ($122) $98 $1,770 $2,356 ($1,000) $278 $578
EBITDA ($3,663) ($1,648) $69 $157 $177 $235 $455 $2,127 $2,713 ($643) $635 $935
Interest Expense $83 $83 $82 $81 $79 $78 $76 $75 $74 $72 $71 $70
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($4,103) ($2,088) ($370) ($280) ($259) ($200) $22 $1,695 $2,282 ($1,072) $207 $508
Net Profit/Sales -85.48% -29.70% -4.13% -3.08% -2.83% -2.17% 0.22% 14.64% 18.04% -13.33% 2.15% 4.98%

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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
Subtotal Cash from Operations $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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 $4,800 $7,030 $8,963 $9,099 $9,139 $9,195 $9,635 $11,578 $12,650 $8,040 $9,594 $10,194
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 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750 $5,750
Bill Payments $68 $2,046 $2,046 $2,044 $2,043 $2,075 $3,064 $3,755 $4,100 $4,704 $2,073 $3,199
Subtotal Spent on Operations $5,818 $7,796 $7,796 $7,794 $7,793 $7,825 $8,814 $9,505 $9,850 $10,454 $7,823 $8,949
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 $166 $166 $166 $166 $166 $166 $166 $166 $166 $166
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 $5,818 $7,796 $7,962 $7,960 $7,959 $7,991 $8,980 $9,671 $10,016 $10,620 $7,989 $9,115
Net Cash Flow ($1,018) ($766) $1,001 $1,139 $1,180 $1,204 $655 $1,907 $2,634 ($2,580) $1,605 $1,079
Cash Balance $12,882 $12,116 $13,117 $14,256 $15,436 $16,641 $17,296 $19,203 $21,837 $19,258 $20,863 $21,942
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 $13,900 $12,882 $12,116 $13,117 $14,256 $15,436 $16,641 $17,296 $19,203 $21,837 $19,258 $20,863 $21,942
Inventory $7,000 $6,250 $5,285 $4,104 $2,874 $1,624 $1,377 $1,614 $1,913 $2,448 $1,478 $1,372 $1,702
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $20,900 $19,132 $17,401 $17,221 $17,130 $17,061 $18,017 $18,910 $21,116 $24,285 $20,735 $22,235 $23,644
Long-term Assets
Long-term Assets $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000 $44,000
Accumulated Depreciation $0 $357 $714 $1,071 $1,428 $1,785 $2,142 $2,499 $2,856 $3,213 $3,570 $3,927 $4,284
Total Long-term Assets $44,000 $43,643 $43,286 $42,929 $42,572 $42,215 $41,858 $41,501 $41,144 $40,787 $40,430 $40,073 $39,716
Total Assets $64,900 $62,775 $60,687 $60,150 $59,702 $59,276 $59,875 $60,411 $62,260 $65,072 $61,165 $62,308 $63,360
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 $1,978 $1,978 $1,976 $1,975 $1,974 $2,939 $3,619 $3,940 $4,636 $1,967 $3,069 $3,779
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 $1,978 $1,978 $1,976 $1,975 $1,974 $2,939 $3,619 $3,940 $4,636 $1,967 $3,069 $3,779
Long-term Liabilities $10,000 $10,000 $10,000 $9,834 $9,668 $9,502 $9,336 $9,170 $9,004 $8,838 $8,672 $8,506 $8,340
Total Liabilities $10,000 $11,978 $11,978 $11,810 $11,643 $11,476 $12,275 $12,789 $12,944 $13,474 $10,639 $11,575 $12,119
Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Retained Earnings ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100) ($15,100)
Earnings $0 ($4,103) ($6,191) ($6,561) ($6,841) ($7,100) ($7,300) ($7,278) ($5,584) ($3,302) ($4,374) ($4,167) ($3,659)
Total Capital $54,900 $50,797 $48,709 $48,339 $48,059 $47,800 $47,600 $47,622 $49,316 $51,598 $50,526 $50,733 $51,241
Total Liabilities and Capital $64,900 $62,775 $60,687 $60,150 $59,702 $59,276 $59,875 $60,411 $62,260 $65,072 $61,165 $62,308 $63,360
Net Worth $54,900 $50,797 $48,709 $48,339 $48,059 $47,800 $47,600 $47,622 $49,316 $51,598 $50,526 $50,733 $51,241

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