Success Is a Journey, Not a Destination...
The next topics present in our Financial Plan supported by tables and charts.
The following financials cover the balance of the year 2001 and carry through year 2003, holding certain assumptions as to the level of activities and numbers of projects to be undertaken. The assumptions for the balance of the current year and well into year 2002 are based on rather definite and reliable data, knowing the nature and potential of projects already identified and ready to be produced. As additional clients and projects appear on the scene, the assumptions become less definite at this time, but certainly the revenue and exposure potential increases incrementally with each added project.
All financials except the 'Rainbow's End' components utilize the most conservative of figures. This is to protect both the legitimacy of expected revenues as well as the credibility of activity. The added assumption of the 'Rainbow's End' factors are utilized only to display possibilities inherent in each project.
The following Break-even Analysis shows what is needed in monthly sales to break even in relation to monthly expenses.
The following table and chart present the projected Profit and Loss.
The following table and chart show the Projected Cash Flow and Cash Balance for Edgar Risk Ventures.
The following table is the Projected Balance Sheet.
The industry standard business ratios are taken from the music recording industry, Standard Industrial Classification (SIC) code 7922, Theatrical Producers and Services, Excluding Motion Pictures. ERV's ratios conform to most of the ratios, however there are some differences that must be explained. First of all, ERV will not be a highly leveraged company since it has access to significant amounts of investment capital prior to business launch. Furthermore the company is convinced that due to Mr. Edgar's past success and well developed "brand image" in the industry and with music listeners in general, the company will be able to leverage this fame into higher initial profits. The company wishes to utilize this by spending a significantly more amount of money on advertising to strengthen its future profits.