One, Two, Step!
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 | |||||||||||||
Shoes | 0% | $7,500 | $7,725 | $7,957 | $8,195 | $8,441 | $8,695 | $8,955 | $9,224 | $9,501 | $9,786 | $10,079 | $10,382 |
Accessories | 0% | $100 | $103 | $106 | $109 | $113 | $116 | $119 | $123 | $127 | $130 | $134 | $138 |
Total Sales | $7,600 | $7,828 | $8,063 | $8,305 | $8,554 | $8,810 | $9,075 | $9,347 | $9,627 | $9,916 | $10,214 | $10,520 | |
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 | |
Shoes | 60% | $4,500 | $4,635 | $4,774 | $4,917 | $5,065 | $5,217 | $5,373 | $5,534 | $5,700 | $5,871 | $6,048 | $6,229 |
Accessories | 60% | $60 | $62 | $64 | $66 | $68 | $70 | $72 | $74 | $76 | $78 | $81 | $83 |
Boxes and bags | 1% | $76 | $78 | $81 | $83 | $86 | $88 | $91 | $93 | $96 | $99 | $102 | $105 |
Shipping costs for website sales | 2% | $152 | $157 | $161 | $166 | $171 | $176 | $181 | $187 | $193 | $198 | $204 | $210 |
Subtotal Direct Cost of Sales | $4,788 | $4,932 | $5,080 | $5,232 | $5,389 | $5,551 | $5,717 | $5,889 | $6,065 | $6,247 | $6,435 | $6,628 |
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 | ||
Operations Assistant (part-time) | 0% | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 | $1,013 |
Sales Associate (Part-Time) | 0% | $780 | $780 | $780 | $780 | $780 | $780 | $780 | $780 | $780 | $780 | $780 | $780 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 |
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 | $7,600 | $7,828 | $8,063 | $8,305 | $8,554 | $8,810 | $9,075 | $9,347 | $9,627 | $9,916 | $10,214 | $10,520 | |
Direct Cost of Sales | $4,788 | $4,932 | $5,080 | $5,232 | $5,389 | $5,551 | $5,717 | $5,889 | $6,065 | $6,247 | $6,435 | $6,628 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $4,788 | $4,932 | $5,080 | $5,232 | $5,389 | $5,551 | $5,717 | $5,889 | $6,065 | $6,247 | $6,435 | $6,628 | |
Gross Margin | $2,812 | $2,896 | $2,983 | $3,073 | $3,165 | $3,260 | $3,358 | $3,458 | $3,562 | $3,669 | $3,779 | $3,892 | |
Gross Margin % | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | 37.00% | |
Expenses | |||||||||||||
Payroll | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | |
Marketing/Promotion | $1,500 | $75 | $100 | $100 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Mortgage %/Rent | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Utilities | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | |
Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Website maintenance | $31 | $31 | $31 | $31 | $31 | $31 | $31 | $31 | $31 | $31 | $31 | $31 | |
POS contract/fees | 15% | $35 | $35 | $35 | $35 | $35 | $35 | $35 | $35 | $35 | $35 | $35 | $35 |
Payroll taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Operating Expenses | $3,739 | $2,314 | $2,339 | $2,339 | $2,314 | $2,314 | $2,314 | $2,314 | $2,314 | $2,314 | $2,314 | $2,314 | |
Profit Before Interest and Taxes | ($927) | $583 | $645 | $734 | $851 | $946 | $1,044 | $1,145 | $1,249 | $1,356 | $1,466 | $1,579 | |
EBITDA | ($927) | $583 | $645 | $734 | $851 | $946 | $1,044 | $1,145 | $1,249 | $1,356 | $1,466 | $1,579 | |
Interest Expense | $205 | $203 | $200 | $197 | $194 | $191 | $188 | $185 | $182 | $179 | $177 | $174 | |
Taxes Incurred | ($340) | $114 | $134 | $161 | $197 | $227 | $257 | $288 | $320 | $353 | $387 | $422 | |
Net Profit | ($792) | $266 | $312 | $376 | $460 | $529 | $599 | $672 | $746 | $823 | $902 | $984 | |
Net Profit/Sales | -10.43% | 3.40% | 3.86% | 4.53% | 5.38% | 6.00% | 6.60% | 7.19% | 7.75% | 8.30% | 8.83% | 9.35% |
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 | $7,600 | $7,828 | $8,063 | $8,305 | $8,554 | $8,810 | $9,075 | $9,347 | $9,627 | $9,916 | $10,214 | $10,520 | |
Subtotal Cash from Operations | $7,600 | $7,828 | $8,063 | $8,305 | $8,554 | $8,810 | $9,075 | $9,347 | $9,627 | $9,916 | $10,214 | $10,520 | |
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 | $7,600 | $7,828 | $8,063 | $8,305 | $8,554 | $8,810 | $9,075 | $9,347 | $9,627 | $9,916 | $10,214 | $10,520 | |
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 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | $1,793 | |
Bill Payments | $60 | $1,946 | $5,839 | $5,897 | $6,406 | $6,622 | $6,819 | $7,023 | $7,233 | $7,449 | $7,672 | $7,902 | |
Subtotal Spent on Operations | $1,853 | $3,739 | $7,632 | $7,689 | $8,199 | $8,414 | $8,612 | $8,816 | $9,025 | $9,242 | $9,465 | $9,694 | |
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 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | $347 | |
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 | $2,200 | $4,086 | $7,979 | $8,036 | $8,546 | $8,761 | $8,959 | $9,163 | $9,372 | $9,589 | $9,812 | $10,041 | |
Net Cash Flow | $5,400 | $3,742 | $84 | $269 | $8 | $49 | $116 | $184 | $255 | $328 | $402 | $479 | |
Cash Balance | $15,400 | $19,143 | $19,227 | $19,496 | $19,504 | $19,553 | $19,669 | $19,853 | $20,108 | $20,436 | $20,838 | $21,317 |
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 | $10,000 | $15,400 | $19,143 | $19,227 | $19,496 | $19,504 | $19,553 | $19,669 | $19,853 | $20,108 | $20,436 | $20,838 | $21,317 |
Inventory | $15,000 | $10,212 | $10,280 | $10,201 | $10,464 | $10,778 | $11,101 | $11,434 | $11,777 | $12,131 | $12,495 | $12,869 | $13,255 |
Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Total Current Assets | $30,000 | $30,612 | $34,423 | $34,428 | $34,960 | $35,281 | $35,654 | $36,103 | $36,631 | $37,239 | $37,930 | $38,707 | $39,573 |
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 | $30,000 | $30,612 | $34,423 | $34,428 | $34,960 | $35,281 | $35,654 | $36,103 | $36,631 | $37,239 | $37,930 | $38,707 | $39,573 |
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 | $1,751 | $5,643 | $5,683 | $6,186 | $6,394 | $6,585 | $6,782 | $6,985 | $7,194 | $7,409 | $7,631 | $7,859 |
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 | $0 | $1,751 | $5,643 | $5,683 | $6,186 | $6,394 | $6,585 | $6,782 | $6,985 | $7,194 | $7,409 | $7,631 | $7,859 |
Long-term Liabilities | $25,000 | $24,653 | $24,306 | $23,959 | $23,612 | $23,265 | $22,918 | $22,571 | $22,224 | $21,877 | $21,530 | $21,183 | $20,836 |
Total Liabilities | $25,000 | $26,404 | $29,949 | $29,642 | $29,798 | $29,659 | $29,503 | $29,353 | $29,209 | $29,071 | $28,939 | $28,814 | $28,695 |
Paid-in Capital | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Retained Earnings | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) | ($5,000) |
Earnings | $0 | ($792) | ($526) | ($215) | $162 | $622 | $1,151 | $1,750 | $2,422 | $3,168 | $3,991 | $4,894 | $5,878 |
Total Capital | $5,000 | $4,208 | $4,474 | $4,785 | $5,162 | $5,622 | $6,151 | $6,750 | $7,422 | $8,168 | $8,991 | $9,894 | $10,878 |
Total Liabilities and Capital | $30,000 | $30,612 | $34,423 | $34,428 | $34,960 | $35,281 | $35,654 | $36,103 | $36,631 | $37,239 | $37,930 | $38,707 | $39,573 |
Net Worth | $5,000 | $4,208 | $4,474 | $4,785 | $5,162 | $5,622 | $6,151 | $6,750 | $7,422 | $8,168 | $8,991 | $9,894 | $10,878 |