Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Clothing & Accessories Retail icon Specialty Clothing Retail Business Plan

Start your plan

Chicano Stylez

Executive Summary

Chicano Stylez (CS) is a dazzling clothing and accessories store aimed at the growing Chicano/Hispanic population in Eugene, Oregon. We are here to provide unique products from Los Angeles to South America. It is the goal of CS to become Oregon’s top cultural retail store. We hope to obtain both high profits and a reputation for great customer satisfaction by offering a large variety of high quality and rare products to our customers.

Located in downtown Eugene, we provide a central location for the growing Hispanic community. We believe it is important to create an atmosphere of acceptance and community care, as well as a place where individuals can identify and bond with aspects of their culture. Our company takes pride in giving back to the community by offering free services to children, such as story nights, art lessons, and lessons in music appreciation.

Chicano Stylez encourages a creative work environment for it’s employees, as well as a deep respect for diversity. In addition to this, we offer employee goals such as profit sharing with company growth.

Specialty clothing retail business plan, executive summary chart image

1.1 Objectives

  1. To make Chicano Stylez the number one cultural retail store in Oregon.
  2. To receive a modest profit margin within the first year.
  3. To have a customer base of 5,000 by the end of year one.
  4. To achieve a positive net profit by year two.

1.2 Keys to Success

In order for Chicano Stylez to succeed we must:

  • Offer high-quality products
  • Provide excellent customer service
  • Be a helpful and respected member of the community
  • Create continued customer loyalty, resulting in repeat purchases
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

Chicano Stylez is a contemporary retail clothing outlet designed to attract the Chicano/Hispanic population. In addition, CS will provide styles to the population of Eugene who wishes to dress and accessorize in the latest, hip fashions.

The store will remain involved with the community through our outreach program, to be described in later sections. We encourage diversity, and do not wish to only target the Hispanic market; we want ALL of Eugene to come to our store.

2.1 Company Ownership

This will be a simple sole proprietorship owned by Sandra Adams. We intend to wait until the business grows before we incorporate, if at all.

2.2 Start-up Summary

Assets will make up 80% of start-up costs.

The start-up expenses are fairly low in comparison. Start-up costs focus on inventory for my clothing and accessories which are extremely important. Expenses include: 

  • Pricing tools
  • Cash register
  • Advertising and design of brochures
  • Legal fees for security
  • Consulting fees to help with merchandising and layout of the store to obtain maximum benefit
  • Start-up costs will be financed by the owner and a combination of investors
Specialty clothing retail business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $2,000
Brochures $500
Consultants $2,500
Insurance $300
Rent $1,000
Research and development $500
Expensed equipment $3,500
Other $1,000
Total Start-up Expenses $12,300
Start-up Assets
Cash Required $20,000
Start-up Inventory $8,000
Other Current Assets $27,000
Long-term Assets $0
Total Assets $55,000
Total Requirements $67,300
Start-up Funding
Start-up Expenses to Fund $12,300
Start-up Assets to Fund $55,000
Total Funding Required $67,300
Assets
Non-cash Assets from Start-up $35,000
Cash Requirements from Start-up $20,000
Additional Cash Raised $0
Cash Balance on Starting Date $20,000
Total Assets $55,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $12,000
Accounts Payable (Outstanding Bills) $10,000
Other Current Liabilities (interest-free) $0
Total Liabilities $22,000
Capital
Planned Investment
Investor 1 $20,000
Investor 2 $15,000
Other $10,300
Additional Investment Requirement $0
Total Planned Investment $45,300
Loss at Start-up (Start-up Expenses) ($12,300)
Total Capital $33,000
Total Capital and Liabilities $55,000
Total Funding $67,300

2.3 Company Locations and Facilities

Located in downtown Eugene, we provide a central location for the growing Hispanic community. We believe it is important to create an atmosphere of acceptance and community care, as well as a place where individuals can identify and bond with all aspects of their culture.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Products

Product descriptions, beyond general categories of clothing and accessories, have been omitted from this sample plan because they were considered proprietary and wouldn’t be useful to anybody else.

3.1 Competitive Comparison

Chicano Stylez has many advantages over its leading competitors.

  1. New inventory from the hottest and most renowned Latin-American markets.
  2. Literature, art, and music are an essential part of our store’s atmosphere. We offer these cultural aspects, at no cost, to all children.
  3. In addition to Latin-American products, we offer clothing and accessories from  swap meets and cultural sub-communities, like Olvera Street in Los Angeles. Our aim is to bond with the high Chicano population in Eugene, by offering products that combine both the Latin and American cultures.
  4. Ambiance of creativity, uniqueness, and a sense of comfort that comes with both recognition of our products.
  5. Friendly staff who foster a respect and appreciation for diversity.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

The primary target customers of Chicano Stylez are the adult Chicano/Hispanic. CS offers clothing and accessories from the top Latin markets of the world, therefore we assume they are most appealing to people from or familiar with this culture. We believe that the Chicano/Hispanic customers will increasingly grow as the population in Oregon does.

The secondary target customers of CS are teenagers. We offer unique products to this area, and expect an increasing interest amongst young people who generally like to experience new things. CS also drives to be very competitive with prices and on top of the latest styles around the world. Teenagers tend to keep up with the latest fads, therefore, we expect to see a steady increase in this customer segment.

The last target customers of CS is listed as Other. We expect to see a wide variety of people interested in something new and different, from business people to international students. CS believes that we offer great customer service and an overall welcoming, warm, and educating atmosphere, which will keep a variety of customers coming back.

4.1 Market Segmentation

The Chicano/Hispanic population in the Whittaker Eugene area is dominant, therefore leading to a high percentage of our expected customers.

CS offers a wide variety of items from Latin markets around the world. Teenagers are amongst the largest group of trend setters and consumers in today’s market. CS feels that by offering a unique product to the Eugene area, many teenagers will be attracted, therefore leading to the second highest percentage of our customer based population.

The last area of potential customers is labeled as Other. Chicano Stylez offers a high-quality product that is new to many different types of people, both young and old. Our cultural ambiance will attract many interested shoppers, and our customer service will keep people both coming back, and spreading the word to others. This last segment is quite diverse, however we do not expect it to be overwhelming in numbers.

Specialty clothing retail business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Chicano/Hispanic 21-35 yrs. old 10% 2,000 2,200 2,420 2,662 2,928 10.00%
Teenagers 6% 900 954 1,011 1,072 1,136 5.99%
Other 4% 300 312 324 337 350 3.93%
Total 8.37% 3,200 3,466 3,755 4,071 4,414 8.37%

4.2 Target Market Segment Strategy

Chicano Stylez has three major trends that help its potential success tremendously.

  1. Within the last two to three years there has been world-wide media attention regarding the “Latin Explosion.”
  2. The population increase in the city of Eugene over the past ten years has been exponential.
  3. The downtown Eugene Whittaker area envelops a high population of the Hispanic/Chicano population, as well as other small stores, restaurants, and a latino center for career and social help.

According to the latest studies, Latin American awareness has increased dramatically, a well as an interest in this cultural lifestyle, clothing, religion, etc.

The three market segments each have their own specific needs, CS intends to target each segment’s needs individually.

Chicano/Hispanic 21-35 years old: CS provides the population with a variety of products expressing the Latin culture.

Teenagers: Young people strive on uniqueness and trendiness, which we offer in the latest styles from around the top Latin markets.

Other: The Hispanic culture is amongst the fastest growing sub-culture in the United States today. People of all races are drawn to elements of the Hispanic culture and it’s peoples.

4.3 Main Competitors

Our competitors share our Whittaker community population. La Tiendita/Taco Loco, Carneceria Lupita, and La Fiesta offer a variety of products, however none of these retailers offers free education to children, or such a wide variety of products from the top Latin-American markets.

  • La Tiendita located in Taco Loco combines the atmosphere of a restaurant with shopping. They do not promote their retail products as much as they do their restaurant, which is their biggest weakness.
  • Carneceria Lupita is a meat store primarily, although it offers several food products from different countries as well as in bulk quantity. In addition to selling meat, they sell spices, candles, some clothing, and other accessories. The biggest weakness for this store is the small size in which it has to operate.
  • La Fiesta is located in the restaurant Las Brasas which adds to its flow of customers. La Fiesta offers some clothing and accessories, but the bulk of the success of the store stems from its focus on video rental and selling jewelry. One of the greatest weaknesses of this retailer is that it has a small operating space and no real defined product.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

The following sections will outline the marketing and sales strategy for CS.

5.1 Value Proposition

Chicano Stylez offers customers high quality clothing, unique and diverse products, a cultural community center, and educational services for children.

5.2 Competitive Edge

The following components make up the competitive edge for CS.

  • Location
  • Unique and high quality products and services
  • Cultural atmosphere
  • Loyalty amongst customers

5.3 Marketing Strategy

Our marketing strategy will focus on pricing, promotion, distribution, sales strategy, and forecast.

We are focusing our market on the Hispanic/Chicano population of downtown Eugene. Our strategy will embrace these customers as a community with respect and esteem. To do this, our marketing resources are centered around customer loyalty and satisfaction. Our strategy also embraces the idea of consistency.

  • The marketing budget will not exceed $5,000 a year.
  • Our marketing promotions will remain true to our company objectives and mission statement.

Positioning Statement:

We target people who look for a high quality and unique product as well as a cultural atmosphere. Unlike other Latin based retailers, we offer community involvement.

Pricing Strategy:

  • CS is a store for continued customer purchase and loyalty. It is crucial to maintain a consistent pricing strategy.
  • We will not exceed a competitor’s price by more than 5-10%, and will always honor a competitor’s price when dealing with a customer.

Promotion Strategy:

  • CS will maintain an advertising plan that will consist of a radio advertisement on the local spanish station and a display in the phone book.
  • Publicity is the essential strategy for CS. We aim to involve the community through public relations and utilizing different forms of media to get our name out.

Marketing programs:

Our most important marketing programs are:

  • Publicity: Through media, get our story and mission statement out in the community.
  • Sales promotion: Have a prominent booth at the park to collectively speak to the community and offer our products for free.

Sales Strategy:

  • Encourage employees to sell by giving bonuses based on performance.
  • Have a large base knowledge of products so that we can sell quality to the customers.
  • Display sample items and have a great return policy to build trust and loyalty to increase customer base.

5.4 Sales Forecast

We expect sales to increase at a steady rate of approximately 2-5%  for the first year. It will begin slow as we open, but will quickly pick up as our customer base increases. In December it will jump to 9% due to the holidays.

CS would like to see an increase of 20% for the year 2002, and an increase of 30% for the year 2003. We feel that we can accomplish this steady goal and maintain this amount of sales.

Specialty clothing retail business plan, strategy and implementation summary chart image

Specialty clothing retail business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Clothing and Accesories $90,200 $108,240 $140,712
Other $0 $0 $0
Total Sales $90,200 $108,240 $140,712
Direct Cost of Sales Year 1 Year 2 Year 3
Clothing and Accesories $22,550 $27,060 $35,178
Other $0 $0 $0
Subtotal Direct Cost of Sales $22,550 $27,060 $35,178

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

The founder of Chicano Stylez, Sandra Adams, believes that employee relationships are of utmost importance to the success of the business. Within this relationship should lie a high respect for creativity and growth. Pay will be constantly evaluated and based on performance and quality of work performed. It is a high priority to expand on each other’s strengths and continue to build.

Organizational Structure:

CS does not separate into departments. The owner, Sandra Adams is the one lead manager who relates all of the decisions to the initial goal of the company. Employees are encouraged to work within their creative and physical boundaries. An evaluation and possible promotion or bonus will be given every 6 months.

Management Team:

Sandra Adams received her degree in the area of Spanish and cultural learning. She has been a member of a highly dominated Hispanic community in Los Angeles for the greater part of her life, and realizes the importance of a cultural community bond. Adams seeks to use her knowledge and personal vision for the Eugene area to create an atmosphere of equality, awareness, and respect.

Personnel Plan
Year 1 Year 2 Year 3
Manager $23,600 $24,780 $26,019
Employee $12,000 $12,600 $13,230
Total People 0 0 0
Total Payroll $35,600 $37,380 $39,249

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

The following sections outline the financial plan for Chicano Stylez.

7.1 Important Assumptions

The table below highlights the important assumptions for the company.

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 Projected Profit and Loss

The table below provides the expected profit and loss for the company.

Specialty clothing retail business plan, financial plan chart image

Specialty clothing retail business plan, financial plan chart image

Specialty clothing retail business plan, financial plan chart image

Specialty clothing retail business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $90,200 $108,240 $140,712
Direct Cost of Sales $22,550 $27,060 $35,178
Other $0 $0 $0
Total Cost of Sales $22,550 $27,060 $35,178
Gross Margin $67,650 $81,180 $105,534
Gross Margin % 75.00% 75.00% 75.00%
Expenses
Payroll $35,600 $37,380 $39,249
Sales and Marketing and Other Expenses $14,400 $16,500 $16,900
Depreciation $0 $0 $0
Leased Equipment $2,400 $2,000 $1,500
Utilities $3,600 $3,800 $4,000
Insurance $3,600 $3,600 $3,600
Rent $12,000 $13,000 $14,000
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $71,600 $76,280 $79,249
Profit Before Interest and Taxes ($3,950) $4,900 $26,285
EBITDA ($3,950) $4,900 $26,285
Interest Expense $1,070 $840 $600
Taxes Incurred $0 $1,015 $6,528
Net Profit ($5,020) $3,045 $19,157
Net Profit/Sales -5.57% 2.81% 13.61%

7.3 Break-even Analysis

The chart and table below indicate the Break-even Analysis for CS.

Specialty clothing retail business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $7,956
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost $5,967

7.4 Projected Cash Flow

The cash flow statement can be found in the chart and table below.

Specialty clothing retail business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $90,200 $108,240 $140,712
Subtotal Cash from Operations $90,200 $108,240 $140,712
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 $90,200 $108,240 $140,712
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $35,600 $37,380 $39,249
Bill Payments $55,718 $68,977 $81,568
Subtotal Spent on Operations $91,318 $106,357 $120,817
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 $2,400 $2,400 $2,400
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $93,718 $108,757 $123,217
Net Cash Flow ($3,518) ($517) $17,495
Cash Balance $16,482 $15,966 $33,461

7.5 Projected Balance Sheet

The Balance Sheet is found in the following table.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $16,482 $15,966 $33,461
Inventory $3,080 $3,696 $4,805
Other Current Assets $27,000 $27,000 $27,000
Total Current Assets $46,562 $46,662 $65,266
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $46,562 $46,662 $65,266
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $8,982 $8,437 $10,284
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $8,982 $8,437 $10,284
Long-term Liabilities $9,600 $7,200 $4,800
Total Liabilities $18,582 $15,637 $15,084
Paid-in Capital $45,300 $45,300 $45,300
Retained Earnings ($12,300) ($17,320) ($14,275)
Earnings ($5,020) $3,045 $19,157
Total Capital $27,980 $31,025 $50,182
Total Liabilities and Capital $46,562 $46,662 $65,266
Net Worth $27,980 $31,025 $50,182

7.6 Business Ratios

The following table contains important ratios from the retail clothing industry, Code 5999, as determined by the Standard Industry Classification (SIC) Index.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 20.00% 30.00% 6.30%
Percent of Total Assets
Inventory 6.61% 7.92% 7.36% 39.30%
Other Current Assets 57.99% 57.86% 41.37% 23.90%
Total Current Assets 100.00% 100.00% 100.00% 80.10%
Long-term Assets 0.00% 0.00% 0.00% 19.90%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 19.29% 18.08% 15.76% 46.00%
Long-term Liabilities 20.62% 15.43% 7.35% 14.00%
Total Liabilities 39.91% 33.51% 23.11% 60.00%
Net Worth 60.09% 66.49% 76.89% 40.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 75.00% 75.00% 75.00% 34.10%
Selling, General & Administrative Expenses 95.57% 56.75% 49.76% 19.80%
Advertising Expenses 7.22% 6.88% 5.45% 2.60%
Profit Before Interest and Taxes -4.38% 4.53% 18.68% 1.10%
Main Ratios
Current 5.18 5.53 6.35 1.77
Quick 4.84 5.09 5.88 0.67
Total Debt to Total Assets 39.91% 33.51% 23.11% 60.00%
Pre-tax Return on Net Worth -17.94% 13.09% 51.18% 2.60%
Pre-tax Return on Assets -10.78% 8.70% 39.35% 6.50%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -5.57% 2.81% 13.61% n.a
Return on Equity -17.94% 9.81% 38.17% n.a
Activity Ratios
Inventory Turnover 7.55 7.99 8.28 n.a
Accounts Payable Turnover 6.09 8.11 8.11 n.a
Payment Days 47 46 41 n.a
Total Asset Turnover 1.94 2.32 2.16 n.a
Debt Ratios
Debt to Net Worth 0.66 0.50 0.30 n.a
Current Liab. to Liab. 0.48 0.54 0.68 n.a
Liquidity Ratios
Net Working Capital $37,580 $38,225 $54,982 n.a
Interest Coverage -3.69 5.83 43.81 n.a
Additional Ratios
Assets to Sales 0.52 0.43 0.46 n.a
Current Debt/Total Assets 19% 18% 16% n.a
Acid Test 4.84 5.09 5.88 n.a
Sales/Net Worth 3.22 3.49 2.80 n.a
Dividend Payout 0.00 0.00 0.00 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

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
Clothing and Accesories 25% $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
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
Clothing and Accesories $1,250 $1,500 $1,625 $1,625 $1,750 $1,750 $1,875 $1,875 $2,000 $2,125 $2,375 $2,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $1,250 $1,500 $1,625 $1,625 $1,750 $1,750 $1,875 $1,875 $2,000 $2,125 $2,375 $2,800
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% $1,000 $1,000 $1,500 $1,500 $1,700 $2,000 $2,000 $2,000 $2,500 $2,550 $2,850 $3,000
Employee 0% $800 $800 $850 $850 $900 $900 $900 $1,000 $1,000 $1,000 $1,500 $1,500
Total People 2 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $1,800 $1,800 $2,350 $2,350 $2,600 $2,900 $2,900 $3,000 $3,500 $3,550 $4,350 $4,500

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 $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
Direct Cost of Sales $1,250 $1,500 $1,625 $1,625 $1,750 $1,750 $1,875 $1,875 $2,000 $2,125 $2,375 $2,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,250 $1,500 $1,625 $1,625 $1,750 $1,750 $1,875 $1,875 $2,000 $2,125 $2,375 $2,800
Gross Margin $3,750 $4,500 $4,875 $4,875 $5,250 $5,250 $5,625 $5,625 $6,000 $6,375 $7,125 $8,400
Gross Margin % 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00%
Expenses
Payroll $1,800 $1,800 $2,350 $2,350 $2,600 $2,900 $2,900 $3,000 $3,500 $3,550 $4,350 $4,500
Sales and Marketing and Other Expenses $1,300 $1,300 $900 $1,300 $1,300 $1,100 $1,300 $1,100 $1,300 $1,300 $900 $1,300
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $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 $4,900 $4,900 $5,050 $5,450 $5,700 $5,800 $6,000 $5,900 $6,600 $6,650 $7,050 $7,600
Profit Before Interest and Taxes ($1,150) ($400) ($175) ($575) ($450) ($550) ($375) ($275) ($600) ($275) $75 $800
EBITDA ($1,150) ($400) ($175) ($575) ($450) ($550) ($375) ($275) ($600) ($275) $75 $800
Interest Expense $98 $97 $95 $93 $92 $90 $88 $87 $85 $83 $82 $80
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($1,248) ($497) ($270) ($668) ($542) ($640) ($463) ($362) ($685) ($358) ($7) $720
Net Profit/Sales -24.97% -8.28% -4.15% -10.28% -7.74% -9.14% -6.18% -4.82% -8.56% -4.22% -0.07% 6.43%

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 $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
Subtotal Cash from Operations $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
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 $5,000 $6,000 $6,500 $6,500 $7,000 $7,000 $7,500 $7,500 $8,000 $8,500 $9,500 $11,200
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 $1,800 $1,800 $2,350 $2,350 $2,600 $2,900 $2,900 $3,000 $3,500 $3,550 $4,350 $4,500
Bill Payments $6,667 $3,928 $4,309 $2,982 $3,007 $4,086 $4,799 $4,986 $5,020 $5,107 $5,388 $5,438
Subtotal Spent on Operations $8,467 $5,728 $6,659 $5,332 $5,607 $6,986 $7,699 $7,986 $8,520 $8,657 $9,738 $9,938
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 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
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 $8,667 $5,928 $6,859 $5,532 $5,807 $7,186 $7,899 $8,186 $8,720 $8,857 $9,938 $10,138
Net Cash Flow ($3,667) $72 ($359) $968 $1,193 ($186) ($399) ($686) ($720) ($357) ($438) $1,062
Cash Balance $16,333 $16,405 $16,047 $17,014 $18,207 $18,021 $17,622 $16,936 $16,216 $15,859 $15,421 $16,482
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 $20,000 $16,333 $16,405 $16,047 $17,014 $18,207 $18,021 $17,622 $16,936 $16,216 $15,859 $15,421 $16,482
Inventory $8,000 $6,750 $5,250 $3,625 $2,000 $1,925 $1,925 $2,063 $2,063 $2,200 $2,338 $2,613 $3,080
Other Current Assets $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000
Total Current Assets $55,000 $50,083 $48,655 $46,672 $46,014 $47,132 $46,946 $46,685 $45,999 $45,416 $45,196 $45,033 $46,562
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $55,000 $50,083 $48,655 $46,672 $46,014 $47,132 $46,946 $46,685 $45,999 $45,416 $45,196 $45,033 $46,562
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 $10,000 $6,532 $5,800 $4,287 $4,498 $6,357 $7,011 $7,413 $7,289 $7,591 $7,930 $7,973 $8,982
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 $10,000 $6,532 $5,800 $4,287 $4,498 $6,357 $7,011 $7,413 $7,289 $7,591 $7,930 $7,973 $8,982
Long-term Liabilities $12,000 $11,800 $11,600 $11,400 $11,200 $11,000 $10,800 $10,600 $10,400 $10,200 $10,000 $9,800 $9,600
Total Liabilities $22,000 $18,332 $17,400 $15,687 $15,698 $17,357 $17,811 $18,013 $17,689 $17,791 $17,930 $17,773 $18,582
Paid-in Capital $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300 $45,300
Retained Earnings ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300)
Earnings $0 ($1,248) ($1,745) ($2,015) ($2,683) ($3,225) ($3,865) ($4,328) ($4,690) ($5,375) ($5,733) ($5,740) ($5,020)
Total Capital $33,000 $31,752 $31,255 $30,985 $30,317 $29,775 $29,135 $28,672 $28,310 $27,625 $27,267 $27,260 $27,980
Total Liabilities and Capital $55,000 $50,083 $48,655 $46,672 $46,014 $47,132 $46,946 $46,685 $45,999 $45,416 $45,196 $45,033 $46,562
Net Worth $33,000 $31,752 $31,255 $30,985 $30,317 $29,775 $29,135 $28,672 $28,310 $27,625 $27,267 $27,260 $27,980

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan