De Kliek Style Studio
Financial Plan
Forecast
Key Assumptions
Having a good location in a high-shopping area makes a huge difference. We need our customers to be able to find us and be able to park easily
Quality product and good relationships with vendors make a huge difference. We will keep inventory, however we lose our customers if they have to wait around for key pieces of their wardrobe to come in.
Outstanding customer service will make our customers return. Every browser is a opportunity to make a sale. We will make sure personnel have the right blend of sales technique with knowledge of high fashion
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We estimate startup expenses as follows:
And, of course, for planning purposes we round up to an even $50,000.
We will also need startup assets including: inventory and getting the tailoring equipment we need to fit our clothes to our clients, plus of course cash on hand as reserve.
Sources of Funds
We will need $175,000 to get this up and running. The owner will invest $40,000. The cofounder will invest $45,000 and we intend to take out a business loan, from [name omitted bank] with an SBA guarantee, for $90,000.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $664,200 | $805,000 | $1,060,000 |
| Direct Costs | $352,026 | $426,650 | $561,800 |
| Gross Margin | $312,174 | $378,350 | $498,200 |
| Gross Margin % | 47% | 47% | 47% |
| Operating Expenses | |||
| Salaries & Wages | $131,600 | $188,000 | $238,000 |
| Employee Related Expenses | $26,320 | $37,600 | $47,600 |
| Rent | $36,000 | $36,000 | $36,000 |
| Telephone / Internet | $1,440 | $1,440 | $1,440 |
| Leased Equipment | $2,004 | $2,004 | $2,004 |
| Utilities | $2,100 | $2,100 | $2,100 |
| Office | $6,600 | $6,600 | $6,600 |
| Security | $348 | $348 | $348 |
| Repairs | $600 | $600 | $600 |
| Accounting Fees | $1,500 | $1,500 | $1,500 |
| Postage | $600 | $600 | $600 |
| Printing | $1,200 | $1,200 | $1,200 |
| PR | $9,600 | $10,000 | $10,000 |
| Insurance – Workman’s + Property Liability | $9,576 | $9,576 | $9,576 |
| Miscellaneous | $3,600 | $3,600 | $3,600 |
| Advertising | $4,800 | $4,800 | $4,800 |
| Education | $1,200 | $1,200 | $1,200 |
| Traveling | $8,500 | $10,000 | $10,000 |
| Startup expenses in Use of Funds | $50,000 | ||
| Total Operating Expenses | $297,588 | $317,168 | $377,168 |
| Operating Income | $14,586 | $61,182 | $121,032 |
| Interest Incurred | $4,590 | $4,070 | $3,032 |
| Depreciation and Amortization | $4,880 | $4,880 | $4,880 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $512 | $5,223 | $11,312 |
| Total Expenses | $659,596 | $757,991 | $958,192 |
| Net Profit | $4,604 | $47,009 | $101,808 |
| Net Profit/Sales | 1% | 6% | 10% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $75,147 | $54,243 | $72,948 |
| Accounts Receivable | $4,140 | $3,857 | $5,079 |
| Inventory | $106,663 | $140,450 | $140,449 |
| Other Current Assets | |||
| Total Current Assets | $185,950 | $198,551 | $218,476 |
| Long-Term Assets | $48,800 | $48,800 | $48,800 |
| Accumulated Depreciation | ($4,880) | ($9,760) | ($14,640) |
| Total Long-Term Assets | $43,920 | $39,040 | $34,160 |
| Total Assets | $229,870 | $237,591 | $252,636 |
| Accounts Payable | $32,114 | $40,836 | $40,835 |
| Income Taxes Payable | $512 | $1,315 | $2,838 |
| Sales Taxes Payable | $32,190 | $30,187 | $39,750 |
| Short-Term Debt | $16,810 | $17,847 | $18,948 |
| Prepaid Revenue | |||
| Total Current Liabilities | $81,626 | $90,185 | $102,371 |
| Long-Term Debt | $58,640 | $40,792 | $21,845 |
| Long-Term Liabilities | $58,640 | $40,792 | $21,845 |
| Total Liabilities | $140,266 | $130,977 | $124,216 |
| Paid-In Capital | $85,000 | $85,000 | $85,000 |
| Retained Earnings | ($25,396) | ($58,387) | |
| Earnings | $4,604 | $47,009 | $101,807 |
| Total Owner’s Equity | $89,604 | $106,613 | $128,421 |
| Total Liabilities & Equity | $229,870 | $237,591 | $252,636 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $4,604 | $47,009 | $101,808 |
| Depreciation & Amortization | $4,880 | $4,880 | $4,880 |
| Change in Accounts Receivable | ($4,140) | $283 | ($1,222) |
| Change in Inventory | ($106,663) | ($33,788) | $1 |
| Change in Accounts Payable | $32,114 | $8,722 | $0 |
| Change in Income Tax Payable | $512 | $803 | $1,523 |
| Change in Sales Tax Payable | $32,190 | ($2,003) | $9,563 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($36,503) | $25,906 | $116,552 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($48,800) | ||
| Net Cash from Investing | ($48,800) | ||
| Investments Received | $85,000 | ||
| Dividends & Distributions | ($30,000) | ($80,000) | |
| Change in Short-Term Debt | $16,810 | $1,037 | $1,101 |
| Change in Long-Term Debt | $58,640 | ($17,847) | ($18,948) |
| Net Cash from Financing | $160,450 | ($46,810) | ($97,847) |
| Cash at Beginning of Period | $0 | $75,147 | $54,243 |
| Net Change in Cash | $75,147 | ($20,904) | $18,704 |
| Cash at End of Period | $75,147 | $54,243 | $72,948 |
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