Don't bother with copy and paste.

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

Download for free

Wholesale Food & Beverage icon Wholesale Food Business Plan

Start your plan

Justin Seafood Market

Financial Plan

The following is the financial plan for expansion of Justin Seafood Market to include a new retail market space.

7.1 Break-even Analysis

The following table and chart show our Break-even Analysis for the coming year.

Wholesale food business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $95,418
Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost $47,579

7.2 Projected Profit and Loss

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

Wholesale food business plan, financial plan chart image

Wholesale food business plan, financial plan chart image

Pro Forma Profit and Loss
2002 2003 2004
Sales $1,176,000 $1,290,000 $1,435,000
Direct Cost of Sales $589,600 $656,000 $728,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $589,600 $656,000 $728,000
Gross Margin $586,400 $634,000 $707,000
Gross Margin % 49.86% 49.15% 49.27%
Expenses
Payroll $345,350 $407,000 $433,000
Sales and Marketing and Other Expenses $24,000 $30,000 $40,000
Depreciation $9,600 $9,600 $9,600
Renovation Expenses $150,000 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $0 $0 $0
Rent $36,000 $36,000 $36,000
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $570,950 $488,600 $524,600
Profit Before Interest and Taxes $15,450 $145,400 $182,400
EBITDA $25,050 $155,000 $192,000
Interest Expense $10,675 $8,331 $5,885
Taxes Incurred $1,432 $41,121 $52,955
Net Profit $3,342 $95,948 $123,561
Net Profit/Sales 0.28% 7.44% 8.61%

7.3 Projected Cash Flow

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

Wholesale food business plan, financial plan chart image

Pro Forma Cash Flow
2002 2003 2004
Cash Received
Cash from Operations
Cash Sales $705,600 $774,000 $861,000
Cash from Receivables $397,286 $506,616 $562,065
Subtotal Cash from Operations $1,102,886 $1,280,616 $1,423,065
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $100,000 $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 $50,000 $0 $0
Subtotal Cash Received $1,252,886 $1,280,616 $1,423,065
Expenditures 2002 2003 2004
Expenditures from Operations
Cash Spending $345,350 $407,000 $433,000
Bill Payments $800,535 $797,744 $869,803
Subtotal Spent on Operations $1,145,885 $1,204,744 $1,302,803
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $21,600 $21,600 $21,600
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $2,860 $2,860 $2,860
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,170,345 $1,229,204 $1,327,263
Net Cash Flow $82,541 $51,412 $95,801
Cash Balance $132,541 $183,953 $279,754

7.4 Projected Balance Sheet

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

Pro Forma Balance Sheet
2002 2003 2004
Assets
Current Assets
Cash $132,541 $183,953 $279,754
Accounts Receivable $96,800 $106,184 $118,119
Inventory $69,850 $77,716 $86,246
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $349,191 $417,853 $534,120
Long-term Assets
Long-term Assets $80,000 $80,000 $80,000
Accumulated Depreciation $24,600 $34,200 $43,800
Total Long-term Assets $55,400 $45,800 $36,200
Total Assets $404,591 $463,653 $570,320
Liabilities and Capital 2002 2003 2004
Current Liabilities
Accounts Payable $76,973 $64,547 $72,113
Current Borrowing $78,400 $56,800 $35,200
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $155,373 $121,347 $107,313
Long-term Liabilities $17,140 $14,280 $11,420
Total Liabilities $172,513 $135,627 $118,733
Paid-in Capital $50,000 $50,000 $50,000
Retained Earnings $178,736 $182,078 $278,027
Earnings $3,342 $95,948 $123,561
Total Capital $232,078 $328,027 $451,587
Total Liabilities and Capital $404,591 $463,653 $570,320
Net Worth $232,078 $328,027 $451,587

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 5146, Fish and Seafood, are shown for comparison.

Ratio Analysis
2002 2003 2004 Industry Profile
Sales Growth 65.49% 9.69% 11.24% 4.60%
Percent of Total Assets
Accounts Receivable 23.93% 22.90% 20.71% 33.30%
Inventory 17.26% 16.76% 15.12% 25.40%
Other Current Assets 12.36% 10.78% 8.77% 24.00%
Total Current Assets 86.31% 90.12% 93.65% 82.70%
Long-term Assets 13.69% 9.88% 6.35% 17.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 38.40% 26.17% 18.82% 47.70%
Long-term Liabilities 4.24% 3.08% 2.00% 10.10%
Total Liabilities 42.64% 29.25% 20.82% 57.80%
Net Worth 57.36% 70.75% 79.18% 42.20%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 49.86% 49.15% 49.27% 14.20%
Selling, General & Administrative Expenses 46.23% 45.05% 43.86% 9.00%
Advertising Expenses 1.02% 1.16% 1.39% 0.30%
Profit Before Interest and Taxes 1.31% 11.27% 12.71% 0.80%
Main Ratios
Current 2.25 3.44 4.98 1.64
Quick 1.80 2.80 4.17 0.97
Total Debt to Total Assets 42.64% 29.25% 20.82% 57.80%
Pre-tax Return on Net Worth 2.06% 41.79% 39.09% 3.60%
Pre-tax Return on Assets 1.18% 29.56% 30.95% 8.40%
Additional Ratios 2002 2003 2004
Net Profit Margin 0.28% 7.44% 8.61% n.a
Return on Equity 1.44% 29.25% 27.36% n.a
Activity Ratios
Accounts Receivable Turnover 4.86 4.86 4.86 n.a
Collection Days 57 72 71 n.a
Inventory Turnover 10.91 8.89 8.88 n.a
Accounts Payable Turnover 11.14 12.17 12.17 n.a
Payment Days 28 33 28 n.a
Total Asset Turnover 2.91 2.78 2.52 n.a
Debt Ratios
Debt to Net Worth 0.74 0.41 0.26 n.a
Current Liab. to Liab. 0.90 0.89 0.90 n.a
Liquidity Ratios
Net Working Capital $193,818 $296,507 $426,807 n.a
Interest Coverage 1.45 17.45 30.99 n.a
Additional Ratios
Assets to Sales 0.34 0.36 0.40 n.a
Current Debt/Total Assets 38% 26% 19% n.a
Acid Test 1.17 1.93 3.07 n.a
Sales/Net Worth 5.07 3.93 3.18 n.a
Dividend Payout 0.00 0.00 0.00 n.a