Weight Loss Seminars Business Plan

Brushy Mountain Retreat

Financial Plan

The following is the financial plan for Brushy Mountain Retreat.

7.1 Break-even Analysis

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

Weight loss seminars business plan, financial plan chart image

Break-even Analysis


Monthly Revenue Break-even	$148,858

Assumptions:
Average Percent Variable Cost	22%
Estimated Monthly Fixed Cost	$116,192

7.2 Projected Profit and Loss

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

Pro Forma Profit and Loss
	2002	2003	2004
Sales	$2,160,000	$2,350,000	$2,480,000
Direct Cost of Sales	$474,000	$528,000	$573,000
Other Production Expenses	$0	$0	$0
Total Cost of Sales	$474,000	$528,000	$573,000

Gross Margin	$1,686,000	$1,822,000	$1,907,000
Gross Margin %	78.06%	77.53%	76.90%


Expenses
Payroll	$882,000	$920,000	$959,000
Sales and Marketing and Other Expenses	$180,000	$200,000	$200,000
Depreciation	$48,000	$48,000	$48,000
Leased Equipment	$60,000	$60,000	$60,000
Utilities	$12,000	$12,000	$12,000
Insurance	$0	$0	$0
Rent	$80,000	$80,000	$80,000
Payroll Taxes	$132,300	$138,000	$143,850
Other	$0	$0	$0

Total Operating Expenses	$1,394,300	$1,458,000	$1,502,850

Profit Before Interest and Taxes	$291,700	$364,000	$404,150
EBITDA	$339,700	$412,000	$452,150
Interest Expense	$13,645	$11,249	$8,748
Taxes Incurred	$83,416	$105,825	$118,621

Net Profit	$194,638	$246,926	$276,781
Net Profit/Sales	9.01%	10.51%	11.16%

7.3 Projected Cash Flow

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

Pro Forma Cash Flow
	2002	2003	2004
Cash Received

Cash from Operations
Cash Sales	$2,160,000	$2,350,000	$2,480,000
Subtotal Cash from Operations	$2,160,000	$2,350,000	$2,480,000

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	$2,160,000	$2,350,000	$2,480,000

Expenditures	2002	2003	2004

Expenditures from Operations
Cash Spending	$882,000	$920,000	$959,000
Bill Payments	$1,007,426	$1,129,717	$1,191,193
Subtotal Spent on Operations	$1,889,426	$2,049,717	$2,150,193

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	$25,008	$25,008	$25,008
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$60,000	$60,000	$60,000
Dividends	$0	$0	$0
Subtotal Cash Spent	$1,974,434	$2,134,725	$2,235,201

Net Cash Flow	$185,566	$215,275	$244,799
Cash Balance	$265,566	$480,842	$725,641

7.4 Projected Balance Sheet

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

Pro Forma Balance Sheet
	2002	2003	2004
Assets

Current Assets
Cash	$265,566	$480,842	$725,641
Other Current Assets	$50,000	$50,000	$50,000
Total Current Assets	$315,566	$530,842	$775,641

Long-term Assets
Long-term Assets	$260,000	$320,000	$380,000
Accumulated Depreciation	$78,000	$126,000	$174,000
Total Long-term Assets	$182,000	$194,000	$206,000
Total Assets	$497,566	$724,842	$981,641

Liabilities and Capital	2002	2003	2004

Current Liabilities
Accounts Payable	$87,936	$93,294	$98,319
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$87,936	$93,294	$98,319

Long-term Liabilities	$124,992	$99,984	$74,976
Total Liabilities	$212,928	$193,278	$173,295

Paid-in Capital	$0	$0	$0
Retained Earnings	$90,000	$284,638	$531,564
Earnings	$194,638	$246,926	$276,781
Total Capital	$284,638	$531,564	$808,345
Total Liabilities and Capital	$497,566	$724,842	$981,641

Net Worth	$284,638	$531,564	$808,345

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 7032, Sporting and Recreation Camps, are shown for comparison.

Ratio Analysis
	2002	2003	2004	Industry Profile
Sales Growth	79.91%	8.80%	5.53%	7.50%

Percent of Total Assets
Other Current Assets	10.05%	6.90%	5.09%	26.90%
Total Current Assets	63.42%	73.24%	79.01%	33.40%
Long-term Assets	36.58%	26.76%	20.99%	66.60%
Total Assets	100.00%	100.00%	100.00%	100.00%

Current Liabilities	17.67%	12.87%	10.02%	16.30%
Long-term Liabilities	25.12%	13.79%	7.64%	38.40%
Total Liabilities	42.79%	26.66%	17.65%	54.70%
Net Worth	57.21%	73.34%	82.35%	45.30%

Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	78.06%	77.53%	76.90%	0.00%
Selling, General & Administrative Expenses	69.04%	67.02%	65.73%	70.30%
Advertising Expenses	8.33%	8.51%	8.06%	5.10%
Profit Before Interest and Taxes	13.50%	15.49%	16.30%	4.20%

Main Ratios
Current	3.59	5.69	7.89	1.75
Quick	3.59	5.69	7.89	1.24
Total Debt to Total Assets	42.79%	26.66%	17.65%	54.70%
Pre-tax Return on Net Worth	97.69%	66.36%	48.91%	2.70%
Pre-tax Return on Assets	55.88%	48.67%	40.28%	5.90%

Additional Ratios	2002	2003	2004
Net Profit Margin	9.01%	10.51%	11.16%	n.a
Return on Equity	68.38%	46.45%	34.24%	n.a

Activity Ratios
Accounts Payable Turnover	11.77	12.17	12.17	n.a
Payment Days	29	29	29	n.a
Total Asset Turnover	4.34	3.24	2.53	n.a

Debt Ratios
Debt to Net Worth	0.75	0.36	0.21	n.a
Current Liab. to Liab.	0.41	0.48	0.57	n.a

Liquidity Ratios
Net Working Capital	$227,630	$437,548	$677,321	n.a
Interest Coverage	21.38	32.36	46.20	n.a

Additional Ratios
Assets to Sales	0.23	0.31	0.40	n.a
Current Debt/Total Assets	18%	13%	10%	n.a
Acid Test	3.59	5.69	7.89	n.a
Sales/Net Worth	7.59	4.42	3.07	n.a
Dividend Payout	0.00	0.00	0.00	n.a