SOHO Computer Consulting Business Plan

The following sections include the annual estimates for the standard set of financial tables. Detailed monthly pro-forma tables are included in the appendix.

7.1 Important Assumptions

Creative Concepts customer base would fluctuate if there was a recess in the economy or other extenuating circumstances that pertain directly to consumer or industry behavior.

7.2 Break-even Analysis

Fixed costs have been set at a reasonably accurate monthly level. This should allow for equipment maintenance and purchase or replacement of basic tools used in performing our services. Variable costs have been set per unit to allow for additional expenses such as gas or other travel costs specific to each job.

7.3 Projected Profit and Loss

The profit and loss shown for this company is a source of inspiration. For the first year of operation the books show a modest net profit. This should allow for great flexibility and survival in the start-up phase in case of unexpected problems or expenses. The profit margin declines incrementally in the following two years as greater payroll allocations are made. These increased allocations will be contingent upon the continued success of this going concern. Additionally, since this business is operated out of the home, expenses such as rent, utilities, and insurance are sunk costs and not reflective of the business venture.

7.4 Projected Cash Flow

This information is presented in the chart and table below.

7.5 Projected Balance Sheet

This information is presented in the table below.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7379, Computer Related Services NEC, are shown for comparison.