Car Wash Business Plan
Car Wash Business Plan
Car Wash Business Plan
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Executive Summary
Soapy Rides is a prominent hand car wash serving the East Meadow, Long Island, NY community. Soapy Rides will be run by Mark Deshpande, of the prominent Deshpande family. The Deshpande family has been serving the Long Island area with a car repair business and property development /management for over 30 years. Mark will be leveraging the incredible good will and brand recognition of the Deshpande family name to quickly gain market penetration. The Business Soapy Rides will be providing customers with three services: exterior car washing, , interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate. Most are trying to compete on price alone. Soapy Rides' ability to provide a high quality service, both in regards to the actual washing as well as customer service is all based on their ability to find the best employees. Hiring the best employees is cost effective because it decreases HR costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers. Study after study proves that a happy employee is far more likely to provide the highest level of customer service compared to an employee who is not happy and feels that they are being taken advantage of. The Customers Soapy Rides will target three main groups of customers: individual car owner and leasers, car dealerships, and local businesses. The surrounding area is quite affluent, 40% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There are five different car dealerships within a three-mile radius which will require car washing services for the various fleets. Lastly, there are many different local businesses that have company cars and that require clean appearances. Management
The strength of Mark's experience and his family's name equity and assistance is Soapy Rides' competitive edge as well as a significant asset. Mark has been involved in the family's car repair business for the last ten years. He has worked his way through the organization and has been the manager for the last five years overseeing operations of $1.2 million annually. Before the family venture, Mark received his MBA from Cornell University. With 30 years invested in the community, the Deshpande family name has generated significant value as a fair, active member of the community. Lastly, Soapy Rides will be able to leverage several of the Deshpande's for their business expertise. Soapy Rides is positioning itself as the premier hand car wash serving the Long Island area. Mark has forecasted a 20% market share. The business will generate a very high gross margin and a modest net margin after year one and comfortable margin after year three. By year three the business will have developed a respectable yearly net profit.
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1.1 Objectives
The objectives for Soapy Rides Car Wash and Detail Service are: 1. To be viewed as a premium car wash and detail service in East Meadow. 2. Maintain a very high gross profit margin. 3. Maintain a modest, steadily growing net profit margin. 4. Expand to two locations after third year of operation.
1.2 Mission
The mission of Soapy Ride is to provide top-quality washing and detail service for luxury car owners in East Meadow, NY. Soapy Rides will work to keep employees satisfied in order to maintain impeccable customer service.
Company Summary
The company is solely owned by Mark Deshpande and will be funded by an initial personal investment. Soapy Rides is New York State registered C corporation.
be leased in April 2001 for a minimum of three years, with the option to extend the lease for another three years after that. Mark is working with the family lawyer to set up incorporation and to discuss lease issues before the business is launched. He is working with a local graphic designer to develop a logo, letterhead, and company brochures. Although Mark has been in the car repair business, he has not been in the wash and detailing business, which is a very different service (quick turnaround per car is incredibly important). For this reason he is working with an acquaintance to set up the system that will ensure efficient service even during peak usage. Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for the business will be approximately $200 per month and will be paid by direct debit on a monthly basis. Expensed equipment includes three high-power water pumps, two industrial vacuum cleaners, two computer terminals, and one cash register. All of the equipment will be depreciated over three years. The location was previously used as a quick stop automobile service shop, so it is set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a car wash and detail facility. The services of a contracting company will be sought to convert the use of the facility and to improve the customer waiting room facilities.
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Start-up Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Research and Development Expensed Equipment Signs Building Materials Building Labor Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements
$500 $400 $450 $0 $200 $1,200 $300 $4,100 $700 $1,200 $1,000 $10,050 $8,700 $250 $1,000 $10,000 $19,950 $30,000
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Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Investor 1 Investor 2 Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding
$0 $0 $0 $0 $0
Services
Soapy Rides will provide three services to its customers: Car washing (exterior) Car cleaning (interior) Car detailing
1. New car owners: Owners of newer cars are most likely to use a hand car washing
service. These owners take great pride in their cars and will bring them often to the wash and detail service. The goal with these customers is to promote regular use of the wash and detail service. The aim is to inform these customers that Soapy Rides will keep their car looking as good as it did the day they drove it off the lot.
2. Older luxury car owners: These people have either owned their high-end luxury cars for
several years or are unable to afford the expense of a new luxury car but want the feel of relaxed driving. Both of these groups want to keep their cars in the best shape possible. Those who have bought second-hand cars will often spend many hours in their cars and will place high importance on keeping their cars looking good. These owners will bring their cars in for regular washes and occasional details.
3. Sports car owners: These people are often younger or middle-aged men and will
regard the look of their car as important. They will also pride themselves on the look of their car and will have their car hand washed (at least) weekly. These drivers will have an occasional detail, but will keep their cars so clean the detail will not be necessary very often.
4. Lifetime owners: Many of these people have owned their cars for more than five or six
years, and are more likely to be women. They are attached to their cars as friends and though it may be more sensible for them to purchase a new car, they will bring their car in for a wash occassionally, just when the car is dirty. They like their cars to look presentable, and want to keep it in good shape but are not tied up in the look of their car. For this reason, they will not have a detail carried out on their car unless they are selling it.
5. Dealerships: There are five new and used car dealerships within three miles of the
proposed location of Soapy Rides. These dealerships often use outside car wash services to detail their vehicles before they are put up for sale. In addition, there are fifteen other car dealerships within a seven mile radius of Soapy Rides.
6. Local businesses: Some local businesses have fleets of cars and small vans that must be
kept clean to maintain their company image. These businesses will be looking for a cost effective, efficient car washing service to perform this service, and will prefer to use a car wash service during the week rather than during weekends, like the general public.
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Market Analysis Year 1 Potential Customers New Car Owners Older Luxury Car Owners Sports Car Owners Growth 10% 15% 15% 7,200 12,500 6,500 7,920 14,375 7,475 8,712 16,531 8,596 9,583 19,011 9,885 10,541 21,863 11,368 Year 2 Year 3 Year 4 Year 5 CAGR 10.00% 15.00% 15.00%
Lifetime Owners 10% New and Used Car Dealerships 7% Total 12.28%
17,000 9 43,209
18,700 10 48,480
20,570 11 54,420
22,627 12 61,118
24,890 13 68,675
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marketing focus will be on a one-to-one basis, with the emphasis on gaining loyal and repeat customers as "friends" of the business. Soapy Rides, therefore, will depend on word-of-mouth advertising for the immediate community.
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Sales Forecast Year 1 Unit Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Unit Sales Unit Prices Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Sales Direct Unit Costs Full Wash Exterior Wash Interior Clean Year 2 Year 3
1,760 2,288 2,974 2,050 2,665 3,465 770 1,001 1,301 129 193 290 615 923 1,384 494 642 963 5,818 7,712 10,376 Year 1 Year 2 Year 3 $15.00 $15.00 $15.00 $9.00 $10.00 $12.00 $8.00 $9.00 $9.00 $140.00 $145.00 $150.00 $10.00 $10.00 $10.00 $70.00 $75.00 $80.00 $26,400 $34,320 $44,616 $18,450 $26,650 $41,574 $6,160 $9,009 $11,712 $18,060 $27,985 $43,425 $6,150 $9,225 $13,838 $34,580 $48,150 $77,040 $109,800 $155,339 $232,204 Year 1 Year 2 Year 3 $0.70 $0.80 $0.90 $0.40 $0.45 $0.50 $0.30 $0.35 $0.40
End User Detail Business Fleet Washes Car Dealership Details Direct Cost of Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Subtotal Direct Cost of Sales
$3.00 $0.70 $3.00 $1,232 $820 $231 $387 $431 $1,482 $4,583
$3.50 $0.75 $3.50 $1,830 $1,199 $350 $676 $692 $2,247 $6,994
$4.00 $0.80 $4.00 $2,677 $1,732 $521 $1,158 $1,107 $3,852 $11,047
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5.3 Milestones
The following table outlines the important milestones in the planning and implementation of Soapy Rides.
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Milestones Milestone Complete Business Plan Sign Rental Contract Convert Premises Hire Car Wash Staff Hire Admin Staff Open for Business Distribute Flyers Press Release Follow-up on Press Release Totals
Start Date End Date 2/1/2001 5/1/2001 $0 3/20/2001 3/20/2001 $475 4/1/2001 4/30/2001 $0 4/20/2001 4/20/2001 $200 4/20/2001 4/20/2001 $200 5/1/2001 5/1/2001 $0 4/28/2001 5/5/2001 $75 4/29/2001 4/29/2001 $25 4/30/2001 4/30/2001 $0 $975
Budget
Manager Department ABC Department Mark Owner Contractors Contractors Mark Owner Mark Owner Staff Staff Friends Friends Mark Owner Mark Owner
Management Summary
Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped (on an unofficial basis) by his father, Barry Deshpande. Barry has over 30 years experience as an entrepreneur, both in the car business and in property development and management. Mark will also have the assistance of John Shine, the family accountant, in creating a long-term strategic vision for the company. John is a family friend and has worked with the Deshpande family for 23 years. He has worked with hundreds of small- and medium-sized businesses during his career.
Financial Plan
The following plan outlines the financial development of Soapy Rides. The business will be initially financed by a personal investment by Mark Deshpande and will finance growth through cash flow. This will mean that the company will grow more slowly than it could, but it will ensure that Mark retains control over the direction of the company. In year three, it is hoped that the company will be able to open a second location. It is envisioned that an outside loan or equity funding will be sought at that time.
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Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions:
423 $7,974
Average Per-Unit Revenue $18.87 Average Per-Unit Variable Cost $0.79 Estimated Monthly Fixed Cost $7,641
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Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Total Cost of Sales $109,800 $4,583 $0 $4,583 $155,339 $6,994 $0 $6,994 Year 2 $232,204 $11,047 $0 $11,047 Year 3
Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
$105,218 95.83% $61,680 $2,600 $2,070 $0 $3,325 $1,800 $4,800 $15,420 $0 $91,695 $13,523 $15,592 $0 $3,204 $10,318 9.40%
$148,345 95.50% $88,312 $1,550 $2,070 $0 $3,500 $1,800 $5,500 $22,078 $0 $124,810 $23,535 $25,605 $0 $5,884 $17,651 11.36%
$221,157 95.24% $113,174 $1,700 $2,070 $0 $3,750 $1,800 $6,000 $28,294 $0 $156,788 $64,370 $66,440 $0 $16,361 $48,009 20.68%
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Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Year 2 Year 3
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $106,427 $153,940 $229,843 Year 1 Year 2 Year 3 $61,680 $33,052 $94,732 $0 $0 $0 $0 $0 $0 $0 $88,312 $46,837 $135,149 $0 $0 $0 $0 $0 $0 $0 $113,174 $67,743 $180,917 $0 $0 $0 $0 $0 $0 $0
$10,000 $10,000 $10,000 $2,070 $4,140 $6,210 $7,930 $5,860 $3,790 $33,365 $51,836 $101,644 Year 1 Year 2 Year 3 $3,097 $0 $0 $3,097 $0 $3,097 $30,000 ($10,050) $10,318 $30,268 $33,365 $30,268 $3,917 $0 $0 $3,917 $0 $3,917 $30,000 $268 $17,651 $47,919 $51,836 $47,919 $5,716 $0 $0 $5,716 $0 $5,716 $30,000 $17,919 $48,009 $95,929 $101,644 $95,929
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Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
76.23% 23.77% 100.00% 9.28% 0.00% 9.28% 90.72% 100.00% 95.83% 86.59% 0.91% 12.32% 8.21 8.00 9.28% 44.68% 40.53% Year 1 9.40% 34.09% 4.88 57 5.45 11.67 27 3.29 0.10 1.00 $22,338 0.00 0.30 9% 6.91 3.63 0.00
88.69% 11.31% 100.00% 7.56% 0.00% 7.56% 92.44% 100.00% 95.50% 84.13% 0.74% 15.15% 11.74 11.48 7.56% 49.11% 45.40% Year 2 11.36% 36.83% 4.88 64 8.30 12.17 27 3.00 0.08 1.00 $42,059 0.00 0.33 8% 10.26 3.24 0.00
96.27% 3.73% 100.00% 5.62% 0.00% 5.62% 94.38% 100.00% 95.24% 74.45% 0.56% 27.72% 17.12 16.84 5.62% 67.10% 63.33% Year 3 20.68% 50.05% 4.88 62 8.41 12.17 25 2.28 0.06 1.00 $92,139 0.00 0.44 6% 15.59 2.42 0.00
44.60% 55.40% 100.00% 29.30% 27.80% 57.10% 42.90% 100.00% 0.00% 68.20% 1.50% 2.70% 1.53 0.88 57.10% 3.40% 8.00% n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a
Appendix
Sales Forecast Month 1 Unit Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Unit Sales Unit Prices Full Wash Exterior Wash Interior Clean 0% 0% 0% 0% 0% 0% Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
90 130 170 190 190 185 135 135 120 120 140 155 90 130 185 220 230 220 180 170 150 150 160 165 40 50 50 55 60 65 70 80 80 85 75 60 3 5 7 10 12 12 14 9 11 14 15 17 25 40 55 60 60 55 55 55 55 50 50 55 15 17 20 26 32 40 56 45 56 60 60 67 263 372 487 561 584 577 510 494 472 479 500 519 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
End User Detail Business Fleet Washes Car Dealership Details Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Sales Direct Unit Costs Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Direct Cost of Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Subtotal Direct Cost of Sales
$1,350 $1,950 $2,550 $2,850 $2,850 $2,775 $2,025 $2,025 $1,800 $1,800 $2,100 $2,325 $810 $1,170 $1,665 $1,980 $2,070 $1,980 $1,620 $1,530 $1,350 $1,350 $1,440 $1,485 $320 $400 $400 $440 $480 $520 $560 $640 $640 $680 $600 $480 $420 $700 $980 $1,400 $1,680 $1,680 $1,960 $1,260 $1,540 $1,960 $2,100 $2,380 $250 $400 $550 $600 $600 $550 $550 $550 $550 $500 $500 $550 $1,050 $1,190 $1,400 $1,820 $2,240 $2,800 $3,920 $3,150 $3,920 $4,200 $4,200 $4,690 $4,200 $5,810 $7,545 $9,090 $9,920 $10,305 $10,635 $9,155 $9,800 $10,490 $10,940 $11,910 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $63 $36 $12 $9 $18 $45 $183 $91 $52 $15 $15 $28 $51 $252 $119 $74 $15 $21 $39 $60 $328 $133 $88 $17 $30 $42 $78 $388 $133 $92 $18 $36 $42 $96 $417 $130 $88 $20 $36 $39 $120 $432 $95 $72 $21 $42 $39 $168 $436 $95 $68 $24 $27 $39 $135 $387 $84 $60 $24 $33 $39 $168 $408 $84 $60 $26 $42 $35 $180 $427 $98 $64 $23 $45 $35 $180 $445 $109 $66 $18 $51 $39 $201 $483
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Personnel Plan Owner Car Washers Admin/Sales Total People Total Payroll 0% 0% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $2,240 $2,240 $3,360 $3,360 $3,360 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 0 0 0 0 0 0 0 0 0 0 0 0 $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860
General Assumptions Month 1 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 30.00% 0 10.00% 10.00% 25.00% 0 Month 2 2 10.00% 10.00% 25.00% 0 Month 3 3 10.00% 10.00% 25.00% 0 Month 4 4 10.00% 10.00% 25.00% 0 Month 5 5 10.00% 10.00% 25.00% 0 Month 6 6 10.00% 10.00% 25.00% 0 Month 7 7 10.00% 10.00% 25.00% 0 Month 8 8 10.00% 10.00% 25.00% 0 Month 9 9 10.00% 10.00% 25.00% 0 Month 10 10 10.00% 10.00% 25.00% 0 Month 11 11 Month 12 12 10.00% 10.00% 25.00% 0
Pro Forma Profit and Loss Month 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense $4,200 $183 $0 $183 $4,018 95.65% $4,860 $500 $172 $0 $250 $150 $400 $1,215 $0 $7,547 ($3,530) ($3,358) $0 Month 2 $5,810 $252 $0 $252 $5,558 95.66% $4,860 $300 $172 $0 $275 $150 $400 $1,215 $0 $7,372 ($1,814) ($1,642) $0 Month 3 $7,545 $328 $0 $328 $7,218 95.66% $5,980 $300 $172 $0 $300 $150 $400 $1,495 $0 $8,797 ($1,580) ($1,407) $0 Month 4 $9,090 $388 $0 $388 $8,703 95.74% $5,980 $300 $172 $0 $300 $150 $400 $1,495 $0 $8,797 ($95) $78 $0 Month 5 $9,920 $417 $0 $417 $9,503 95.80% $5,980 $300 $172 $0 $300 $150 $400 $1,495 $0 $8,797 $706 $878 $0 Month 6 $10,305 $432 $0 $432 $9,874 95.81% $4,860 $100 $172 $0 $275 $150 $400 $1,215 $0 $7,172 $2,701 $2,874 $0 Month 7 $10,635 $436 $0 $436 $10,199 95.90% $4,860 $100 $172 $0 $275 $150 $400 $1,215 $0 $7,172 $3,027 $3,199 $0 Month 8 $9,155 $387 $0 $387 $8,768 95.77% $4,860 $100 $172 $0 $275 $150 $400 $1,215 $0 $7,172 $1,596 $1,768 $0 Month 9 $9,800 $408 $0 $408 $9,393 95.84% $4,860 $300 $172 $0 $275 $150 $400 $1,215 $0 $7,372 $2,020 $2,193 $0 Month 10 $10,490 $427 $0 $427 $10,064 95.93% $4,860 $100 $172 $0 $275 $150 $400 $1,215 $0 $7,172 $2,891 $3,064 $0 Month 11 $10,940 $445 $0 $445 $10,496 95.94% $4,860 $100 $172 $0 $250 $150 $400 $1,215 $0 $7,147 $3,348 $3,521 $0 Month 12 $11,910 $483 $0 $483 $11,427 95.94% $4,860 $100 $172 $0 $275 $150 $400 $1,215 $0 $7,172 $4,255 $4,427 $0
25%
Pro Forma Cash Flow Month 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received 0.00% New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$3,570 $0 $3,570
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,570 $4,960 $7,051 $8,607 $9,571 $10,127 $10,530 $9,329 $9,918 $10,293 $10,772 $11,699 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $4,860 $82 $4,942 $0 $0 $0 $0 $0 $0 $0 $4,942 ($1,372) $7,328 $4,860 $2,437 $7,297 $0 $0 $0 $0 $0 $0 $0 $7,297 ($2,338) $4,991 $5,980 $1,898 $7,878 $0 $0 $0 $0 $0 $0 $0 $7,878 ($827) $4,163 $5,980 $2,296 $8,276 $0 $0 $0 $0 $0 $0 $0 $8,276 $331 $4,494 $5,980 $3,595 $9,575 $0 $0 $0 $0 $0 $0 $0 $9,575 ($3) $4,491 $4,860 $2,855 $7,715 $0 $0 $0 $0 $0 $0 $0 $7,715 $2,412 $6,904 $4,860 $3,785 $8,645 $0 $0 $0 $0 $0 $0 $0 $8,645 $1,885 $8,789 $4,860 $2,885 $7,745 $0 $0 $0 $0 $0 $0 $0 $7,745 $1,584 $10,373 $4,860 $2,582 $7,442 $0 $0 $0 $0 $0 $0 $0 $7,442 $2,475 $12,849 $4,860 $3,812 $8,672 $0 $0 $0 $0 $0 $0 $0 $8,672 $1,621 $14,469 $4,860 $2,899 $7,759 $0 $0 $0 $0 $0 $0 $0 $7,759 $3,013 $17,483 $4,860 $3,927 $8,787 $0 $0 $0 $0 $0 $0 $0 $8,787 $2,912 $20,395
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Pro Forma Balance Sheet Month 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Starting Balances $8,700 $0 $250 $1,000 $9,950 $10,000 $0 $10,000 $19,950 $7,328 $630 $1,068 $1,000 $10,026 $10,000 $172 $9,828 $19,853 Month 1 $2,374 $0 $0 $2,374 $0 $2,374 $30,000 ($10,050) ($2,471) $17,479 $19,853 $17,479 $4,991 $1,481 $816 $1,000 $8,287 $10,000 $345 $9,655 $17,942 Month 2 $1,823 $0 $0 $1,823 $0 $1,823 $30,000 ($10,050) ($3,832) $16,118 $17,942 $16,118 $4,163 $1,974 $488 $1,000 $7,626 $10,000 $517 $9,483 $17,108 Month 3 $2,175 $0 $0 $2,175 $0 $2,175 $30,000 ($10,050) ($5,017) $14,933 $17,108 $14,933 $4,494 $2,458 $1,101 $1,000 $9,052 $10,000 $690 $9,310 $18,362 Month 4 $3,501 $0 $0 $3,501 $0 $3,501 $30,000 ($10,050) ($5,088) $14,862 $18,362 $14,862 $4,491 $2,806 $684 $1,000 $8,981 $10,000 $862 $9,138 $18,118 Month 5 $2,727 $0 $0 $2,727 $0 $2,727 $30,000 ($10,050) ($4,559) $15,391 $18,118 $15,391 $6,904 $2,984 $1,252 $1,000 $12,140 $10,000 $1,035 $8,965 $21,105 Month 6 $3,688 $0 $0 $3,688 $0 $3,688 $30,000 ($10,050) ($2,533) $17,417 $21,105 $17,417 $8,789 $3,089 $816 $1,000 $13,694 $10,000 $1,207 $8,793 $22,487 Month 7 $2,800 $0 $0 $2,800 $0 $2,800 $30,000 ($10,050) ($263) $19,687 $22,487 $19,687 $10,373 $2,915 $429 $1,000 $14,717 $10,000 $1,380 $8,620 $23,338 Month 8 $2,454 $0 $0 $2,454 $0 $2,454 $30,000 ($10,050) $933 $20,883 $23,338 $20,883 $12,849 $2,797 $1,022 $1,000 $17,668 $10,000 $1,552 $8,448 $26,115 Month 9 $3,717 $0 $0 $3,717 $0 $3,717 $30,000 ($10,050) $2,448 $22,398 $26,115 $22,398 $14,469 $2,994 $595 $1,000 $19,059 $10,000 $1,725 $8,275 $27,334 Month 10 $2,767 $0 $0 $2,767 $0 $2,767 $30,000 ($10,050) $4,617 $24,567 $27,334 $24,567 $17,483 $3,162 $1,151 $1,000 $22,795 $10,000 $1,897 $8,103 $30,898 Month 11 $3,820 $0 $0 $3,820 $0 $3,820 $30,000 ($10,050) $7,128 $27,078 $30,898 $27,078 $20,395 $3,373 $668 $1,000 $25,435 $10,000 $2,070 $7,930 $33,365 Month 12 $3,097 $0 $0 $3,097 $0 $3,097 $30,000 ($10,050) $10,318 $30,268 $33,365 $30,268 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12