Tablature Tattoo
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 | ||
| Unit Sales | |||||||||||||
| Shop-Minimum Tattoos | 35 | 37 | 39 | 41 | 43 | 45 | 47 | 49 | 51 | 54 | 57 | 60 | |
| Basic Tattoos (~1 hour) | 30 | 32 | 34 | 36 | 38 | 40 | 42 | 44 | 46 | 48 | 50 | 52 | |
| Full Sessions (2-6 hours) | 25 | 26 | 27 | 28 | 29 | 30 | 32 | 34 | 36 | 38 | 40 | 42 | |
| Resale Items (Posters, T-shirts, etc.) | 2 | 3 | 5 | 10 | 12 | 16 | 19 | 21 | 21 | 23 | 25 | 27 | |
| Total Unit Sales | 92 | 98 | 105 | 115 | 122 | 131 | 140 | 148 | 154 | 163 | 172 | 181 | |
| Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Shop-Minimum Tattoos | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | |
| Basic Tattoos (~1 hour) | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | |
| Full Sessions (2-6 hours) | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | |
| Resale Items (Posters, T-shirts, etc.) | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | |
| Sales | |||||||||||||
| Shop-Minimum Tattoos | $2,100 | $2,220 | $2,340 | $2,460 | $2,580 | $2,700 | $2,820 | $2,940 | $3,060 | $3,240 | $3,420 | $3,600 | |
| Basic Tattoos (~1 hour) | $3,000 | $3,200 | $3,400 | $3,600 | $3,800 | $4,000 | $4,200 | $4,400 | $4,600 | $4,800 | $5,000 | $5,200 | |
| Full Sessions (2-6 hours) | $7,500 | $7,800 | $8,100 | $8,400 | $8,700 | $9,000 | $9,600 | $10,200 | $10,800 | $11,400 | $12,000 | $12,600 | |
| Resale Items (Posters, T-shirts, etc.) | $40 | $60 | $100 | $200 | $244 | $310 | $381 | $412 | $427 | $463 | $503 | $539 | |
| Total Sales | $12,640 | $13,280 | $13,940 | $14,660 | $15,324 | $16,010 | $17,001 | $17,952 | $18,887 | $19,903 | $20,923 | $21,939 | |
| Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Shop-Minimum Tattoos | 8.00% | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 | $4.80 |
| Basic Tattoos (~1 hour) | 7.00% | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 | $7.00 |
| Full Sessions (2-6 hours) | 6.00% | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 | $18.00 |
| Resale Items (Posters, T-shirts, etc.) | 40.00% | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 |
| Direct Cost of Sales | |||||||||||||
| Shop-Minimum Tattoos | $168 | $178 | $187 | $197 | $206 | $216 | $226 | $235 | $245 | $259 | $274 | $288 | |
| Basic Tattoos (~1 hour) | $210 | $224 | $238 | $252 | $266 | $280 | $294 | $308 | $322 | $336 | $350 | $364 | |
| Full Sessions (2-6 hours) | $450 | $468 | $486 | $504 | $522 | $540 | $576 | $612 | $648 | $684 | $720 | $756 | |
| Resale Items (Posters, T-shirts, etc.) | $16 | $24 | $40 | $80 | $98 | $124 | $152 | $165 | $171 | $185 | $201 | $216 | |
| Subtotal Direct Cost of Sales | $844 | $894 | $951 | $1,033 | $1,092 | $1,160 | $1,248 | $1,320 | $1,386 | $1,464 | $1,545 | $1,624 | |
| 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 | ||
| Jake Hunt | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | $4,125 | |
| Julie Hunt | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | $3,850 | |
| Second Artist | 0% | $2,528 | $2,656 | $2,788 | $2,932 | $3,065 | $3,202 | $3,400 | $3,590 | $3,777 | $3,981 | $4,185 | $4,388 |
| Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | $10,503 | $10,631 | $10,763 | $10,907 | $11,040 | $11,177 | $11,375 | $11,565 | $11,752 | $11,956 | $12,160 | $12,363 | |
| 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 | $12,640 | $13,280 | $13,940 | $14,660 | $15,324 | $16,010 | $17,001 | $17,952 | $18,887 | $19,903 | $20,923 | $21,939 | |
| Direct Cost of Sales | $844 | $894 | $951 | $1,033 | $1,092 | $1,160 | $1,248 | $1,320 | $1,386 | $1,464 | $1,545 | $1,624 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $844 | $894 | $951 | $1,033 | $1,092 | $1,160 | $1,248 | $1,320 | $1,386 | $1,464 | $1,545 | $1,624 | |
| Gross Margin | $11,796 | $12,386 | $12,989 | $13,627 | $14,232 | $14,850 | $15,753 | $16,632 | $17,502 | $18,439 | $19,378 | $20,316 | |
| Gross Margin % | 93.32% | 93.27% | 93.18% | 92.95% | 92.87% | 92.75% | 92.66% | 92.65% | 92.66% | 92.64% | 92.62% | 92.60% | |
| Expenses | |||||||||||||
| Payroll | $10,503 | $10,631 | $10,763 | $10,907 | $11,040 | $11,177 | $11,375 | $11,565 | $11,752 | $11,956 | $12,160 | $12,363 | |
| Marketing/Promotion | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Depreciation | $139 | $139 | $139 | $139 | $139 | $139 | $172 | $172 | $172 | $172 | $172 | $172 | |
| Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
| Utilities | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,200 | |
| Payroll Taxes | 15% | $1,575 | $1,595 | $1,614 | $1,636 | $1,656 | $1,677 | $1,706 | $1,735 | $1,763 | $1,793 | $1,824 | $1,854 |
| Tattoo Supplies | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Total Operating Expenses | $14,117 | $14,265 | $14,416 | $14,582 | $14,735 | $14,893 | $15,153 | $15,372 | $15,587 | $15,821 | $16,056 | $17,489 | |
| Profit Before Interest and Taxes | ($2,321) | ($1,878) | ($1,428) | ($955) | ($503) | ($43) | $600 | $1,260 | $1,914 | $2,618 | $3,323 | $2,826 | |
| EBITDA | ($2,182) | ($1,739) | ($1,289) | ($816) | ($364) | $96 | $772 | $1,432 | $2,086 | $2,790 | $3,495 | $2,998 | |
| Interest Expense | $104 | $99 | $94 | $89 | $84 | $79 | $75 | $70 | $65 | $60 | $58 | $56 | |
| Taxes Incurred | ($727) | ($593) | ($456) | ($313) | ($176) | ($37) | $157 | $357 | $555 | $767 | $979 | $831 | |
| Net Profit | ($1,697) | ($1,384) | ($1,065) | ($731) | ($411) | ($85) | $367 | $833 | $1,295 | $1,790 | $2,285 | $1,940 | |
| Net Profit/Sales | -13.43% | -10.42% | -7.64% | -4.98% | -2.68% | -0.53% | 2.16% | 4.64% | 6.85% | 8.99% | 10.92% | 8.84% | |
| 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 | $12,640 | $13,280 | $13,940 | $14,660 | $15,324 | $16,010 | $17,001 | $17,952 | $18,887 | $19,903 | $20,923 | $21,939 | |
| Subtotal Cash from Operations | $12,640 | $13,280 | $13,940 | $14,660 | $15,324 | $16,010 | $17,001 | $17,952 | $18,887 | $19,903 | $20,923 | $21,939 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 8.00% | $1,011 | $1,062 | $1,115 | $1,173 | $1,226 | $1,281 | $1,360 | $1,436 | $1,511 | $1,592 | $1,674 | $1,755 |
| 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 | $13,651 | $14,342 | $15,055 | $15,833 | $16,550 | $17,291 | $18,361 | $19,388 | $20,398 | $21,495 | $22,597 | $23,695 | |
| 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 | $10,503 | $10,631 | $10,763 | $10,907 | $11,040 | $11,177 | $11,375 | $11,565 | $11,752 | $11,956 | $12,160 | $12,363 | |
| Bill Payments | $95 | $2,877 | $3,649 | $4,170 | $4,433 | $4,623 | $4,858 | $5,184 | $5,463 | $5,745 | $6,075 | $6,425 | |
| Subtotal Spent on Operations | $10,598 | $13,508 | $14,412 | $15,077 | $15,473 | $15,800 | $16,233 | $16,749 | $17,216 | $17,701 | $18,234 | $18,788 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $1,011 | $1,062 | $1,115 | $1,173 | $1,226 | $1,281 | $1,360 | $1,436 | $1,511 | $1,592 | $1,674 | $1,755 | |
| Principal Repayment of Current Borrowing | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $278 | $278 | $278 | $278 | $278 | $278 | $278 | $278 | $278 | $278 | $278 | $278 | |
| 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 | $100 | $100 | $100 | $100 | $100 | $100 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $12,087 | $15,049 | $16,005 | $16,727 | $17,176 | $17,559 | $18,172 | $18,763 | $19,305 | $19,871 | $20,286 | $20,921 | |
| Net Cash Flow | $1,564 | ($706) | ($950) | ($895) | ($626) | ($268) | $190 | $625 | $1,094 | $1,624 | $2,311 | $2,773 | |
| Cash Balance | $11,364 | $10,657 | $9,707 | $8,813 | $8,187 | $7,918 | $8,108 | $8,733 | $9,827 | $11,451 | $13,762 | $16,536 | |
| 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 | $9,800 | $11,364 | $10,657 | $9,707 | $8,813 | $8,187 | $7,918 | $8,108 | $8,733 | $9,827 | $11,451 | $13,762 | $16,536 |
| Inventory | $2,000 | $1,156 | $894 | $951 | $1,033 | $1,092 | $1,160 | $1,248 | $1,320 | $1,386 | $1,464 | $1,545 | $1,624 |
| Other Current Assets | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| Total Current Assets | $13,300 | $14,020 | $13,051 | $12,159 | $11,346 | $10,779 | $10,578 | $10,856 | $11,553 | $12,713 | $14,416 | $16,807 | $19,659 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,100 | $5,200 | $5,300 | $5,400 | $5,500 | $5,600 |
| Accumulated Depreciation | $0 | $139 | $278 | $417 | $556 | $695 | $834 | $1,006 | $1,178 | $1,350 | $1,522 | $1,694 | $1,866 |
| Total Long-term Assets | $5,000 | $4,861 | $4,722 | $4,583 | $4,444 | $4,305 | $4,166 | $4,094 | $4,022 | $3,950 | $3,878 | $3,806 | $3,734 |
| Total Assets | $18,300 | $18,881 | $17,773 | $16,742 | $15,790 | $15,084 | $14,744 | $14,950 | $15,575 | $16,663 | $18,294 | $20,613 | $23,393 |
| 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 | $2,756 | $3,510 | $4,022 | $4,279 | $4,462 | $4,686 | $5,002 | $5,272 | $5,543 | $5,862 | $6,174 | $7,292 |
| Current Borrowing | $2,000 | $1,800 | $1,600 | $1,400 | $1,200 | $1,000 | $800 | $600 | $400 | $200 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $2,000 | $4,556 | $5,110 | $5,422 | $5,479 | $5,462 | $5,486 | $5,602 | $5,672 | $5,743 | $5,862 | $6,174 | $7,292 |
| Long-term Liabilities | $10,000 | $9,722 | $9,444 | $9,166 | $8,888 | $8,610 | $8,332 | $8,054 | $7,776 | $7,498 | $7,220 | $6,942 | $6,664 |
| Total Liabilities | $12,000 | $14,278 | $14,554 | $14,588 | $14,367 | $14,072 | $13,818 | $13,656 | $13,448 | $13,241 | $13,082 | $13,116 | $13,956 |
| Paid-in Capital | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
| Retained Earnings | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) | ($8,700) |
| Earnings | $0 | ($1,697) | ($3,081) | ($4,146) | ($4,877) | ($5,288) | ($5,373) | ($5,006) | ($4,173) | ($2,878) | ($1,088) | $1,197 | $3,137 |
| Total Capital | $6,300 | $4,603 | $3,219 | $2,154 | $1,423 | $1,012 | $927 | $1,294 | $2,127 | $3,422 | $5,212 | $7,497 | $9,437 |
| Total Liabilities and Capital | $18,300 | $18,881 | $17,773 | $16,742 | $15,790 | $15,084 | $14,744 | $14,950 | $15,575 | $16,663 | $18,294 | $20,613 | $23,393 |
| Net Worth | $6,300 | $4,603 | $3,219 | $2,154 | $1,423 | $1,012 | $927 | $1,294 | $2,127 | $3,422 | $5,212 | $7,497 | $9,437 |
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