Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,200 |
Patent process | $18,000 |
Stationery etc. | $450 |
Brochures | $4,500 |
Demo Models | $1,200 |
Consultants | $6,000 |
Insurance | $750 |
Rent | $750 |
Research and Development | $18,000 |
Office | $2,500 |
Total Start-up Expenses | $53,350 |
Start-up Assets | |
Cash Required | $170,650 |
Start-up Inventory | $1,000 |
Other Current Assets | $5,000 |
Long-term Assets | $45,000 |
Total Assets | $221,650 |
Total Requirements | $275,000 |
JTB Products and Services will provide the following:
With the proper mix of equipment, JTB can work as both a manufacturer and a service provider, repairing its own products and its competitors products as well. Additionally, the equipment gives the business an opportunity to sell itself to its clients at the production managers level and at the shop level, forging solid ties with production and engineering managers.
Our prototype services will be handled via the Internet: a client sends a CAD file to our secure dedicated servers, we download the CAD file into the 3-D software, and the process of developing a tangible prototype begins. Including this type of technology will bring JTB much closer to the Aerospace and Automotive industries. This process can also help JTB develop additional products for different markets. Related engineering technology will consist of 3-D Computer Aided Design where applicable in the prototype work.
The mix of JTB’s Industrial Sales and Products and Services Division makes the actual sale, as the business can respond to the clients in any way needed. Our ability to share information about order status and offer products and service from our distributor partners will allow for even more opportunity with the clients, as they are always looking for ways to reduce purchasing costs.
Why should the industrial buyers work with JTB Products and Services?
JTB’s products are developed to perform better than the competition. Our products are developed with the goal of providing our clients a good, value-based purchase that will help them be more profitable in their day-to-day operations. Our commitment to high quality and consistency in our products and services is what sets us apart from others.
Our services also combine a good value-based approach, and still provide quality. Our attention to customer detail is a critical component in our customer service area. Our custom sales software allows our staff to keep detailed, accurate notes on our customers’ requirements, allowing us to fulfill orders to their preferences. This commitment to consistency allows the customer to feel confident when they ship orders in for service.
JTB will methodically seek out additional products to match our customers’ requirements while working closely on applications to provide our clients with a better overall result in their manufacturing process.
Further development on this strategy will come from our engineering software applications. These applications will allow us to work one on one with plant application engineers to fine tune products to maximize the product’s life, yielding the best possible results.
National market Description consists of 314,555 potential clients in the following categories:
The Louisiana Market consists of 4,553 potential clients in the same categories.
Our sales goal is to integrate our Industrial Products and Services into the above markets. Our sales approach is simple, utilizing a well trained inside sales staff to approach new clients, and to respond to well-placed ads in industrial publications. Our software applications will make it possible for these businesses to interact closely with JTB and its distributor partners.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Aerospace, High Tech manufacturing | 3% | 25,587 | 26,355 | 27,146 | 27,960 | 28,799 | 3.00% |
Automotive, Repair, Autobody | 9% | 61,228 | 66,739 | 72,746 | 79,293 | 86,429 | 9.00% |
Automotive, Auto makers, support sub-industry | 2% | 4,000 | 4,080 | 4,162 | 4,245 | 4,330 | 2.00% |
Primary Metals, and Machining industry | 7% | 210,000 | 224,700 | 240,429 | 257,259 | 275,267 | 7.00% |
Sporting Goods and related services | 7% | 6,058 | 6,482 | 6,936 | 7,422 | 7,942 | 7.00% |
Mining, and Contractor industry | 9% | 3,149 | 3,432 | 3,741 | 4,078 | 4,445 | 9.00% |
Total | 7.06% | 310,022 | 331,788 | 355,160 | 380,257 | 407,212 | 7.06% |
Our marketing strategy for each target market segment will vary slightly. We will focus our direct marketing efforts on the Aerospace, Automotive, and Primary Metals and Machining industries, introducing these clients to our products and services. In particular, our combination of over 300,000 catalog items, and our industrial services, providing re-manufacturing and secondary services, will allow us to sell ourselves in many different ways. Also, our base of sub-contract service providers will allow us to offer many different programs via our distributorship.
When order management and inventory systems are completed by the Integrated Technologies Division, they will make it faster and easier to place repeat orders. Special incentives will be given to the businesses using the system as well, further reducing our external costs.
JTB products and services are focused on some rather unique markets. As such, these markets are supported by niche product and service providers all over the U.S.
Industry by count:
The above client numbers are based on data available from Hugo Dunhill Mailing Lists, Inc., our preferred database provider. Larger firms like Peoplesoftware, Profit2100, Dimasystems, and Net2soft have developed very expensive software and netware packages starting at $10,000 – $50,000 and up. Our cost analysis has shown that there are many cost competitive options available for businesses to choose from, in many cases they are simply unaware they are available. As a service business that will utilize our own products, we can market and demo our products simultaneously, further reducing our costs per solicitation.
Automotive clients: These clients are made up of individual auto repair businesses. They purchase supplies via local suppliers and catalogs. Our products for this market are specialized time savers, and will be marketed as such. Also, our industrial sales division can sell to these clients via catalogs and through our online sales process. Competition in this marketplace is well developed as local suppliers providing standard products, our unique lines will be directly marketed to the shops, along with information about our industrial supply services.
Commercial Utilities and Drilling clients: These clients are made up of individual commercial service providers and contractors providing hole drilling services. Our process for re-manufacturing / re-building their drilling units will better the OEM’s efforts to make and sell a quality tool. The base cost index for these tools is very high, typically in excess of $2675 per unit. These clients generally pay a minimum of 50% for a rebuild. Competition in this marketplace is developed as commercial plumbing supply houses; typically, the client is on their own in terms of technical help. Our unique cost saving rebuild process will be directly marketed to them, also our industrial sales division can service these clients as well.
Sporting Good Service Centers: These clients are made up of bowling suppliers. Our patented products will out-perform any available products, and create a large re-conditioning market for JTB, as our patented products can only be reproduced by us. Competition in this marketplace is not very strong, as no one has developed a product for this process, nor has there been any standardization for this process. Our Max-Drill product line re-defines the process giving the shops a place for technical help, good service, and a product that provides ease of use, and a very cost-effective process.
Metalworking and Manufacturing: These clients are made up of Machine shops, Aerospace Manufacturers, and other specialty manufacturers requiring industrial products and services. Our services department will add value and services to Rachel industrial sales division, as it can utilize the services division’s equipment to provide its clients with custom solutions. Competition is strong, as these clients work with both local suppliers, and catalog companies. As JTB has a very marketable mix of industrial sales, and industrial services, this will provide the added edge to acquire clients.
JTB’s primary goal is focused on developing one-on-one business relations during the first four years of the business plan; however, beyond that, we may consider working through distribution for additional business.
As our plan describes our primary goal of repayment to our initial investors by the fourth year, we will not make arrangements for distribution of our products or services unless it represents a major addition to the business, and maintains our projected profits as well.
Our strategy and implementation will be a very straightforward approach to extending our products and services to potential clients via every cost-effective approach possible. Our combined services offering is very unique, and allows for more profitability while staying ahead of other industrial distributors and services providers in terms of delivery and competitive pricing. The combination of our distributorship’s solid inventory, and the ability of the service area to provide re-conditioning and special services to industrial products quickly, allows for faster shipments with fewer logistical problems. For our customers, this means lower costs.
Our competitive edge is our combined services, products, and the engineering skills required to properly interact with our customers and vendors. Our mix of inventory, industrial distribution, and the service capabilities to respond to the customer’s needs quickly will make JTB a respected vendor in the industry.
JTB’s competitive edge incorporates an overall approach to market our goods and services to many different industries. Our unique approach of developing our own branded sales and marketing applications will strengthen our ties to our distributor partners and direct clients. As computer networking is a strong area for me personally, I see the benefits to businesses that have solid network based sales and marketing tools in place. Our overall goal is to utilize our own applications and developed software to integrate our distributor partners services. When completed, JTB will be able to offer much larger clients an extremely large variety of products and services drawing from our distributor partners services and products.
All of the JTB divisions will benefit from the marketing, strategic ad placements and the direct marketing products offered by every other JTB division.
Key Goals to our marketing strategy are as follows:
JTB’s marketing programs will directly target our intended customer base, utilizing many different avenues of marketing. Initially, we will mass-market introductory offers and letters of introduction indexed against our customer database. Further secondary marketing will be through our Internet-based marketing systems. Additional follow-up work will be done by our staff.
JTB’s customer databases will overlap as they are similar. Every opportunity will be explored as each branch solicits new business, allowing for additional cost effective introduction of our other products and services. JTB will also develop Internet marketplaces where our products and services can be marketed as well, taking full advantage of the very low costs offered by developing and managing our own sites.
JTB’s sales strategy will rely on a straight-forward approach of developing the company’s long term sales goal of providing quality engineered products and services tailored to the customer. Our overall goal will be to pay close attention to details gathered regarding other vendors, and how they interact with the clients, constantly fine tuning our transaction process until it is almost effortless for the clients to do business with us.
Customer access to our sales staff is also critical, as we intend to offer phone, fax, and Internet-based inventory access and order processing. Further Internet access on our main site will let clients develop budgets and gather engineering information about the products we offer. This will be further enhanced by the custom software products of JTB Integrated Technologies, when developed. Our sales staff will have a tremendous source of information available to act as an advisor to our clients.
Our sales forecast table uses the following assumptions:
The sales growth is controlled by several factors including:
Many of the services provided are billable hourly at nearly $60 per hour for service work; in comparison, some products manufactured internally will need to be at a lower shop rate to provide for more competitive pricing to break into the different markets.
We will work to have many of the patented products manufactured externally, allowing our equipment to be utilized on more profitable work. Contingencies need to be in place to backup all products and services offered in the event of personnel issues, or equipment failure. Direct costs in the Sales Forecast table reflect these outsourced manufacturing costs, after initial design.
Sales Forecast | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Sales | |||||
Auto Body products | $66,000 | $90,520 | $122,234 | $139,846 | $166,212 |
Auto Body services | $20,205 | $23,842 | $28,133 | $33,197 | $39,173 |
Commercial Drilling | $57,880 | $71,771 | $88,996 | $110,355 | $136,841 |
Sporting Goods products | $89,800 | $109,556 | $133,658 | $163,063 | $198,937 |
Sporting Goods services | $35,820 | $43,700 | $53,314 | $65,044 | $79,353 |
Prototype Services | $7,200 | $28,800 | $43,200 | $54,000 | $72,000 |
Metalworking and Manufacturing | $77,800 | $93,360 | $132,032 | $164,438 | $210,326 |
Total Sales | $354,705 | $461,550 | $601,569 | $729,944 | $902,842 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Auto body products and Services | $43,546 | $48,635 | $55,751 | $69,849 | $86,067 |
Commercial Drilling | $37,939 | $39,267 | $50,020 | $58,800 | $74,633 |
Sporting Goods | $62,388 | $73,440 | $89,520 | $110,880 | $133,920 |
Prototype Services | $1,908 | $7,632 | $11,448 | $14,310 | $19,080 |
Metalworking and Manufacturing | $53,270 | $61,000 | $73,000 | $89,000 | $106,000 |
Subtotal Direct Cost of Sales | $199,051 | $229,974 | $279,739 | $342,839 | $419,700 |
JTB will develop and implement many strategic alliances to build its product and services offering. Alliances to manufacture our higher volume products will aid in keeping our internal costs in check while allowing unlimited growth potential by utilizing our channel partners’ production capabilities. Further development on this will be to purchase on a contractual basis to help lock in pricing on our product offering. Our distributor partners will allow us to offer additional products and services that we could not otherwise offer, also reducing our investments in additional personnel and equipment while maximizing profits.
Secure Leasing, Banking, and Attorney Arrangements – Long term arrangements to secure the equipment financing, banking relations, and general and patent attorney needs.
Set up JTB’s Industrial Services Location – Prepare working area for incoming equipment, wiring, shipping and receiving areas, networked accounting systems, and develop a work flow methodology for the entire shop.
Complete the equipment selections and installation – Equipment will be selected from various machine tool dealers throughout the U.S. These machine tools will be inspected closely for quality, selecting the best possible pieces while working within our budget.
Manager selections and training begins – JTB will be looking for individuals who posess a good aptitude for engineering, preferably with a background in QC and Machining.
Contractor selection for outsourced manufacturing – Competing contract manufacturers will be providing sample parts and quotations for our products, in particular, contractors will be quoting on the Automotive and Sporting Goods lines as they have the highest potential volume and will require substantially more manufacturing capacity than we will have available.
JTB Industrial Services Marketing Campaign – Our marketing campaign will initially target the local Louisiana market with a letter to the key personnel within the target businesses. This introduction will be a combination letter marketing the JTB Industrial Sales Division as well; alternately, the Industrial Sales Divisions sales personnel will follow up on these accounts.
JTB outsourced product line development – Once the contractor selection is complete, we will place orders from the suppliers for components, packaging, and replacement parts.
JTB services development – JTB’s service area will begin servicing clients as soon as the core machine tools are in place; some specialty equipment may take several months to locate. During the first year, management will be processing most of the work.
JTB Service associate selection and training – Service Associates will be from a production background, familiar with manufacturing and general machining, training will be ongoing for at least 1 year. Management will work with these individuals on a one-on-one basis to accomplish this, and minimize training costs while still competing orders as needed.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Secure Leasing and Banking Arrangements | 2/1/2005 | 2/15/2005 | $1,500 | M. Jeremy | Corporate Management |
Setup JTB’s Industrial services location | 2/1/2005 | 3/1/2005 | $6,500 | M. Jeremy | Corporate Management |
Contractor selections for services and products | 2/15/2005 | 3/15/2005 | $3,500 | M. Jeremy | Media development |
Manager selections and training begin | 2/1/2005 | 4/15/2005 | $12,000 | R. Jeremy | Corporate Management |
Complete equipment selections and installations | 2/1/2004 | 6/15/2005 | $125,000 | M. Jeremy | Corporate Management |
JTB outsourced Product line development | 3/15/2005 | 6/15/2005 | $18,000 | M. Jeremy | Products and Services |
JTB Service Associate selection and training | 3/10/2005 | 10/1/2005 | $15,000 | R. Jeremy | Products and Services |
JTB Services development | 4/15/2005 | 1/1/2006 | $7,500 | R. Jeremy | Products and services |
JTB Industrial Services Marketing campaign | 3/1/2005 | 1/30/2006 | $3,500 | R. Jeremy | Marketing |
Totals | $192,500 |
JTB’s Web-based marketing plan is essentially the same for all of the JTB divisions, with the exception of how each division targets its clients. As JTB will be able to add its services offering into the marketplaces to be developed, we will get day to day information and feedback from the various paid ads we place in industrial trade magazines, and with other websites as well. The Web plan is to link our products and services with as many affiliate sites as possible.
When established, these marketplaces and affiliate sites will serve as a very cost effective marketing tool for all of the JTB divisions, again keeping in mind that each division’s approach to this will be tailored towards its intended potential clients. Each division will have dedicated websites operating under the JTB logo. With a customer database available at all times via our servers, we can easily track our marketing expenditures and customer demographics.
JTB will develop and manage as many industrial marketplaces as possible, seeking out niche marketing that drives customers to our industrial products and services sites. Also, JTB will embed itself into many other sites utilizing search engine technology, affiliate marketing programs, and paid banner ads.
As JTB’s Integrated Technologies Division will develop all of its sites and software applications, this will be done at a considerably lower overall cost than our competitors would spend to develop the same type of applications.
Operations Manager Mitchell R. Jeremy
Mitchell will work with the managers and staff daily to help oversee the development for all of the anticipated projects. He will personally develop the procedures and techniques for all of the products and services to be offered. Additionally, he will provide hands on training to all employees within the company ensuring the company’s ability to grow.
Service and Production Manager Rachel L. Jeremy
During year one Rachel will act as the Service Team Manager. She will oversee order processing, scheduling of outsourced orders, and act as the general business manager in Mr. Jeremy’s absence. After year one, the service team members and manager will be fully trained to handle the day-to-day workload in their area. Rachel will then continue to maintain the ongoing day-to-day work schedule, track time and billing issues, and remain in close contact with the clients to ensure that JTB is meeting all the customer’s requirements.
Service Team Manager Initially, Rachel Jeremy will fill this role, while the service team manager undergoes training. The service team manager is a working manager position requiring complete knowledge of all the manufacturing processes. This position will answer directly to the Operations Manager.
Service Team Member TBA. Service Associates will perform the manual labor required in the service and production department.
Sales and Marketing Associate TBA. This is a shared position, costs and responsibilities distributed among all divisions; this member contributes Sales and Marketing help in all areas.
Personnel Plan | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Production Personnel | |||||
Service Team Manager | $35,200 | $36,000 | $36,000 | $38,000 | $38,000 |
Service Team Member | $8,800 | $21,000 | $23,000 | $25,000 | $28,000 |
Subtotal | $44,000 | $57,000 | $59,000 | $63,000 | $66,000 |
Sales and Marketing Personnel | |||||
Shared Marketing Associate | $2,750 | $4,000 | $6,000 | $8,000 | $10,000 |
Name or Title | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 |
Subtotal | $2,750 | $4,000 | $6,000 | $8,000 | $10,000 |
General and Administrative Personnel | |||||
Production Manager/Service Team Coordinator | $43,200 | $43,500 | $44,000 | $45,000 | $45,000 |
Name or Title | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 |
Subtotal | $43,200 | $43,500 | $44,000 | $45,000 | $45,000 |
Other Personnel | |||||
Name or Title | $0 | $0 | $0 | $0 | $0 |
Name or Title | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 |
Subtotal | $0 | $0 | $0 | $0 | $0 |
Total People | 4 | 4 | 4 | 4 | 4 |
Total Payroll | $89,950 | $104,500 | $109,000 | $116,000 | $121,000 |
JTB’s financial plan is based on raising $230,000 by way of private equity to setup the industrial products and services division of the corporation. We are also securing a 12 year loan for $45,000 to cover initial equipment costs necessary to produce our products and services. We expect the Product and Service Division to achieve a small net profit in just over two years.
By year three we expect to be in a strong enough cash position to begin paying dividends to the initial investors, and secure proper lines of credit with other banking resources as the company will need to attract further investment for equipment and expansion. It would be in the company’s best interest to repay the initial investors earlier than the plan allows for.
This plan is one of a three part business plan providing details of each business segment for more accurate projections, the main plan is used to show the overall development of the business in its entirety. Key assumptions around which we developed this plan are as follows:
The General Assumptions table below shows assumptions which play heavily into the businesses long term plan.
If the business can be developed in its entirety in one location would greatly reduce operating costs, and provide a more flexible staff situation for cross-training and other issues.
Upon reviewing the plan, you may have noticed management has mentioned expansion through use of its online marketing system via numerous distributor partners throughout the U.S. The possible revenues from this have not been added into any projections. Management’s position on the plan’s assumptions is we feel we can make better long term arrangements which should better the projected cash position shown.
Note 8.1.1: We have selected a high-quality networked accounting system with capabilities of having multiple businesses running while still offering full consolidation of the business for accounting purposes. This system is complete with project management capabilities and budgeting; as such, management will implement a budgeted approach for the projects while adjusting costs in JTB’s favor wherever possible.
All Profit and Loss tables in this plan include only the projections for the Products and Services Division. We suggest that each plan is reviewed, as each is quite different.
General Assumptions | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Plan Month | 1 | 2 | 3 | 4 | 5 |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 | 0 | 0 |
The break-even analysis for JTB Products and Services is shown in the following table and chart.
JTB’s break even analysis is difficult to project as our industrial products and services are a mix of both labor charged hourly, and outsourced manufactured goods for resale. Initial goals are to bring the hard manufactured product lines to market within 60 days from startup. Additionally, we will begin completing service based orders (labor based) immediately while offering numerous well accepted industrial products for resale through the other divisions.
What will set JTB apart from the other industrial entities is its ability for flexibility, expansion, and its individual divisions with key individuals all under one roof targeting each market segment JTB will pursue. All of the service personnel will be cross-trained with the sales staff, and will be expected to handle clients with a positive and helpful attitude. With this in mind, the goal is to build a solid base for the corporation with our primary products and services while continuing the long term development of our distribution and secondary services business.
Break-even Analysis | |
Monthly Revenue Break-even | $31,884 |
Assumptions: | |
Average Percent Variable Cost | 69% |
Estimated Monthly Fixed Cost | $10,036 |
Please be sure to read the note in the Important Assumptions section, regarding our Accounting system and methodology.
The Projected Profit and Loss table takes into consideration all of the basic operating costs for the Products and Services Division only. This division will reach the break-even point late in the first year, and become increasingly profitable thereafter. At full capacity in later years, we expect net profit margins between 12% and 19%.
The Profit and Loss in this business plan also includes a full depreciation schedule. Management’s eventual goal is to work with a leasing company that will provide a construction-type loan/lease situation allowing us time to hand-select the best possible equipment while minimizing the cash outlay during this process. For the purposes of this plan, and to maintain a conservative approach, we have bought some starting equipment as long-term assets in the start-up table. We will add some leased equipment as we go, as initial equipment depreciates.
The Profit and Loss table in this plan does not reflect the burden of management, and management’s output – related personnel costs can be found in the plan for the holding company, JTB Technologies, Inc. Please remember when you do review the P&L, that the 3 JTB divisions will actually be operating under one roof. As such, overhead is low, and management’s role will be to fill in, in all areas of production wherever needed to complete orders.
Management’s operating schedule will also be overlapped to “keep our doors open” more operating hours than any of the other 9 to 5 operations. Management anticipates running at least 50 hours per week allowing us to develop more business on the west coast.
Pro Forma Profit and Loss | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Sales | $354,705 | $461,550 | $601,569 | $729,944 | $902,842 |
Direct Cost of Sales | $199,051 | $229,974 | $279,739 | $342,839 | $419,700 |
Production Payroll | $44,000 | $57,000 | $59,000 | $63,000 | $66,000 |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 |
Total Cost of Sales | $243,051 | $286,974 | $338,739 | $405,839 | $485,700 |
Gross Margin | $111,654 | $174,576 | $262,830 | $324,105 | $417,142 |
Gross Margin % | 31.48% | 37.82% | 43.69% | 44.40% | 46.20% |
Operating Expenses | |||||
Sales and Marketing Expenses | |||||
Sales and Marketing Payroll | $2,750 | $4,000 | $6,000 | $8,000 | $10,000 |
Advertising/Promotion | $4,950 | $6,000 | $7,500 | $8,500 | $9,500 |
Other Sales and Marketing Expenses | $0 | $0 | $0 | $0 | $0 |
Total Sales and Marketing Expenses | $7,700 | $10,000 | $13,500 | $16,500 | $19,500 |
Sales and Marketing % | 2.17% | 2.17% | 2.24% | 2.26% | 2.16% |
General and Administrative Expenses | |||||
General and Administrative Payroll | $43,200 | $43,500 | $44,000 | $45,000 | $45,000 |
Sales and Marketing and Other Expenses | $5,400 | $7,200 | $8,500 | $9,500 | $10,200 |
Depreciation | $7,750 | $7,750 | $7,750 | $7,750 | $7,750 |
Rent | $8,400 | $8,400 | $8,400 | $8,400 | $8,400 |
Equipment Lease | $35,988 | $35,988 | $35,988 | $35,988 | $35,988 |
Utilities | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 |
Insurance | $4,800 | $5,400 | $7,200 | $9,000 | $9,600 |
Payroll Taxes | $0 | $0 | $0 | $0 | $0 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 |
Total General and Administrative Expenses | $112,738 | $115,438 | $119,038 | $122,838 | $124,138 |
General and Administrative % | 31.78% | 25.01% | 19.79% | 16.83% | 13.75% |
Other Expenses: | |||||
Other Payroll | $0 | $0 | $0 | $0 | $0 |
Consultants | $0 | $6,000 | $6,000 | $6,000 | $6,000 |
Other Other Expenses | $0 | $0 | $0 | $0 | $0 |
Total Other Expenses | $0 | $6,000 | $6,000 | $6,000 | $6,000 |
Other % | 0.00% | 1.30% | 1.00% | 0.82% | 0.66% |
Total Operating Expenses | $120,438 | $131,438 | $138,538 | $145,338 | $149,638 |
Profit Before Interest and Taxes | ($8,784) | $43,138 | $124,292 | $178,767 | $267,504 |
EBITDA | ($1,034) | $50,888 | $132,042 | $186,517 | $275,254 |
Interest Expense | $4,297 | $3,938 | $3,563 | $3,188 | $2,813 |
Taxes Incurred | $0 | $11,760 | $36,219 | $52,674 | $79,408 |
Net Profit | ($13,081) | $27,440 | $84,511 | $122,906 | $185,284 |
Net Profit/Sales | -3.69% | 5.95% | 14.05% | 16.84% | 20.52% |
JTB’s projected cash flow reflects the business’ cash position. Please remember when you review this table, it is for the Products and Services Division only. The table shows our planned repayment of the 12 year loan and dividends to investors beginning in year 3.
When reviewing the projected cash flow, its important to note that the largest growth in sales is from outsourced manufacturing, as this is not really segmented for review. Additional segmentation information can be found in the market segmentation table in section 4.1.
The outsourced manufacturing allows the company to have the product line it desires while utilizing its internal personnel one the more profitable services to be offered. The outsourced products operate under a fixed cost situation, while the services area will for the most part be working in a cost plus situation filling special and rush requests that carry a much higher shop rate. As the cash flow projects only the base products described in the business plan, its highly probable JTB will be involved with more outsourced products in years two through five, furthering our potential profitability.
Please review section 8.1 regarding the Important Assumptions to get a better feel for the explained projected cash flow.
Pro Forma Cash Flow | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Cash Received | |||||
Cash from Operations | |||||
Cash Sales | $88,676 | $115,387 | $150,392 | $182,486 | $225,711 |
Cash from Receivables | $207,172 | $328,433 | $427,943 | $526,156 | $648,442 |
Subtotal Cash from Operations | $295,848 | $443,821 | $578,335 | $708,642 | $874,153 |
Additional Cash Received | |||||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 | $0 | $0 |
Subtotal Cash Received | $295,848 | $443,821 | $578,335 | $708,642 | $874,153 |
Expenditures | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Expenditures from Operations | |||||
Cash Spending | $89,950 | $104,500 | $109,000 | $116,000 | $121,000 |
Bill Payments | $260,345 | $346,477 | $402,835 | $487,427 | $594,783 |
Subtotal Spent on Operations | $350,295 | $450,977 | $511,835 | $603,427 | $715,783 |
Additional Cash Spent | |||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 |
Dividends | $0 | $0 | $20,000 | $50,000 | $80,000 |
Subtotal Cash Spent | $354,045 | $454,727 | $535,585 | $657,177 | $799,533 |
Net Cash Flow | ($58,197) | ($10,906) | $42,750 | $51,465 | $74,620 |
Cash Balance | $112,453 | $101,547 | $144,298 | $195,763 | $270,383 |
JTB Products and Services’ projected balance sheet shows a strong cash development capability over the projected 5 year plan. The projected balance sheet, like the rest of the business plan, assumes the business remains at its startup location during the first five years of operations, keeping costs relatively fixed for the projections. Again, as mentioned in the Important Assumptions section 8.1, management still feels it can develop a stronger situation than what is reflected.
As projected in the Balance Sheet, the products and services division builds its cash position while also developing a sound net worth. As the industrial Products and Services Division is a manufacturing setting, this business plan reflects the development of a large amount of hard, non-cash assets, excluding ending year 5 receivables. A full depreciation schedule and payment schedule is included to depreciate the long-term assets.
During the life of the plan, inventory requirements may change as we offer our clients different purchasing options and build our inventory of used products; any differences in cash flow and inventory would show that the cash is tied up in inventory. With this in mind, we would try to keep the required inventory down to reasonable levels wherever possible.
This division is also a service oriented segment of the business; many of the services offered are tied to particular product lines offered, allowing the business to create multiple income streams throughout the development of the plan. For segmentation purposes some products have both labor and materials to manufacture a product, some have labor only when providing a service. We have chosen not to show the breakdown of these finer details in the plan.
Pro Forma Balance Sheet | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Assets | |||||
Current Assets | |||||
Cash | $112,453 | $101,547 | $144,298 | $195,763 | $270,383 |
Accounts Receivable | $58,857 | $76,586 | $99,820 | $121,121 | $149,811 |
Inventory | $37,048 | $42,803 | $52,066 | $63,177 | $78,141 |
Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Total Current Assets | $213,358 | $225,937 | $301,184 | $385,061 | $503,335 |
Long-term Assets | |||||
Long-term Assets | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 |
Accumulated Depreciation | $7,750 | $15,500 | $23,250 | $31,000 | $38,750 |
Total Long-term Assets | $37,250 | $29,500 | $21,750 | $14,000 | $6,250 |
Total Assets | $250,608 | $255,437 | $322,934 | $399,061 | $509,585 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Current Liabilities | |||||
Accounts Payable | $45,789 | $26,927 | $33,663 | $40,636 | $49,625 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $45,789 | $26,927 | $33,663 | $40,636 | $49,625 |
Long-term Liabilities | $41,250 | $37,500 | $33,750 | $30,000 | $26,250 |
Total Liabilities | $87,039 | $64,427 | $67,413 | $70,636 | $75,875 |
Paid-in Capital | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 |
Retained Earnings | ($53,350) | ($66,431) | ($58,990) | ($24,480) | $18,426 |
Earnings | ($13,081) | $27,440 | $84,511 | $122,906 | $185,284 |
Total Capital | $163,569 | $191,010 | $255,520 | $328,426 | $433,710 |
Total Liabilities and Capital | $250,608 | $255,437 | $322,934 | $399,061 | $509,585 |
Net Worth | $163,569 | $191,010 | $255,520 | $328,426 | $433,710 |
The following table shows standard business ratios for the years of our plan, and a comparison column for data from Manufacturing Industries, nec (SIC Code 3999).
JTB’s Products and Services Division’s ratios reflect a strong growth with regards to its Gross Margins.
In the long term, our Long Term Assets decline below industry profiles as equipment is paid down, but our overall Debt to Asset ratios are better than the industry in overall results as leaner manufacturing and better coordinated use of our channel partners come into play allowing for more growth without incurring additional expense.
Our General and Administrative ratios are much higher than the industry, but this personnel plays an essential role as the business grows towards its growth and outsourcing goals. Also the industry standard profile could reflect more automation than we have at this point, thus our requirement for more personnel.
Ratio Analysis | ||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Industry Profile | |
Sales Growth | 0.00% | 30.12% | 30.34% | 21.34% | 23.69% | -0.33% |
Percent of Total Assets | ||||||
Accounts Receivable | 23.49% | 29.98% | 30.91% | 30.35% | 29.40% | 23.08% |
Inventory | 14.78% | 16.76% | 16.12% | 15.83% | 15.33% | 15.97% |
Other Current Assets | 2.00% | 1.96% | 1.55% | 1.25% | 0.98% | 34.94% |
Total Current Assets | 85.14% | 88.45% | 93.26% | 96.49% | 98.77% | 73.99% |
Long-term Assets | 14.86% | 11.55% | 6.74% | 3.51% | 1.23% | 26.01% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 18.27% | 10.54% | 10.42% | 10.18% | 9.74% | 23.82% |
Long-term Liabilities | 16.46% | 14.68% | 10.45% | 7.52% | 5.15% | 17.66% |
Total Liabilities | 34.73% | 25.22% | 20.88% | 17.70% | 14.89% | 41.48% |
Net Worth | 65.27% | 74.78% | 79.12% | 82.30% | 85.11% | 58.52% |
Percent of Sales | ||||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 31.48% | 37.82% | 43.69% | 44.40% | 46.20% | 36.34% |
Selling, General & Administrative Expenses | 39.96% | 31.88% | 29.64% | 27.56% | 25.68% | 17.49% |
Advertising Expenses | 2.22% | 2.31% | 2.42% | 2.44% | 2.35% | 1.27% |
Profit Before Interest and Taxes | -2.48% | 9.35% | 20.66% | 24.49% | 29.63% | 3.23% |
Main Ratios | ||||||
Current | 4.66 | 8.39 | 8.95 | 9.48 | 10.14 | 2.18 |
Quick | 3.85 | 6.80 | 7.40 | 7.92 | 8.57 | 1.33 |
Total Debt to Total Assets | 34.73% | 25.22% | 20.88% | 17.70% | 14.89% | 50.82% |
Pre-tax Return on Net Worth | -8.00% | 20.52% | 47.25% | 53.46% | 61.03% | 7.44% |
Pre-tax Return on Assets | -5.22% | 15.35% | 37.39% | 44.00% | 51.94% | 15.13% |
Additional Ratios | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Net Profit Margin | -3.69% | 5.95% | 14.05% | 16.84% | 20.52% | n.a |
Return on Equity | -8.00% | 14.37% | 33.07% | 37.42% | 42.72% | n.a |
Activity Ratios | ||||||
Accounts Receivable Turnover | 4.52 | 4.52 | 4.52 | 4.52 | 4.52 | n.a |
Collection Days | 38 | 71 | 71 | 74 | 73 | n.a |
Inventory Turnover | 12.00 | 5.76 | 5.90 | 5.95 | 5.94 | n.a |
Accounts Payable Turnover | 6.69 | 12.17 | 12.17 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 41 | 27 | 27 | 27 | n.a |
Total Asset Turnover | 1.42 | 1.81 | 1.86 | 1.83 | 1.77 | n.a |
Debt Ratios | ||||||
Debt to Net Worth | 0.53 | 0.34 | 0.26 | 0.22 | 0.17 | n.a |
Current Liab. to Liab. | 0.53 | 0.42 | 0.50 | 0.58 | 0.65 | n.a |
Liquidity Ratios | ||||||
Net Working Capital | $167,569 | $199,010 | $267,520 | $344,426 | $453,710 | n.a |
Interest Coverage | -2.04 | 10.96 | 34.89 | 56.08 | 95.11 | n.a |
Additional Ratios | ||||||
Assets to Sales | 0.71 | 0.55 | 0.54 | 0.55 | 0.56 | n.a |
Current Debt/Total Assets | 18% | 11% | 10% | 10% | 10% | n.a |
Acid Test | 2.57 | 3.96 | 4.44 | 4.94 | 5.55 | n.a |
Sales/Net Worth | 2.17 | 2.42 | 2.35 | 2.22 | 2.08 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.24 | 0.41 | 0.43 | n.a |
JTB’s Product and Services Division’s long term plan has been projected out to a 10 year review to highlight the businesses long term results, and the added potential of the distributor partnerships. Additionally, the 4th & 5th year cash position can be shown for pay-out analysis of the initial investors; this plan also give a much better equity picture.
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 | |||||||||||||
Auto Body products | 0% | $0 | $0 | $1,200 | $1,400 | $1,800 | $4,000 | $5,800 | $7,200 | $8,400 | $10,200 | $11,800 | $14,200 |
Auto Body services | 0% | $0 | $315 | $360 | $510 | $540 | $1,200 | $1,740 | $2,160 | $2,520 | $3,060 | $3,540 | $4,260 |
Commercial Drilling | 0% | $0 | $600 | $1,800 | $3,800 | $4,200 | $4,800 | $6,200 | $6,800 | $6,980 | $7,200 | $7,700 | $7,800 |
Sporting Goods products | 0% | $0 | $0 | $1,200 | $3,400 | $5,400 | $7,800 | $9,400 | $10,400 | $11,700 | $12,900 | $13,200 | $14,400 |
Sporting Goods services | 0% | $0 | $0 | $460 | $1,360 | $2,160 | $3,120 | $3,760 | $4,160 | $4,600 | $5,160 | $5,280 | $5,760 |
Prototype Services | 0% | $0 | $0 | $0 | $0 | $600 | $600 | $800 | $800 | $1,000 | $1,000 | $1,200 | $1,200 |
Metalworking and Manufacturing | 0% | $1,000 | $1,000 | $1,200 | $1,800 | $3,800 | $5,400 | $6,600 | $7,800 | $10,200 | $12,000 | $12,800 | $14,200 |
Total Sales | $1,000 | $1,915 | $6,220 | $12,270 | $18,500 | $26,920 | $34,300 | $39,320 | $45,400 | $51,520 | $55,520 | $61,820 | |
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 | |
Auto body products and Services | $0 | $0 | $936 | $1,146 | $1,404 | $3,120 | $3,770 | $4,680 | $5,460 | $6,630 | $7,170 | $9,230 | |
Commercial Drilling | $0 | $290 | $870 | $1,900 | $2,600 | $2,990 | $3,800 | $3,980 | $4,848 | $5,328 | $5,633 | $5,700 | |
Sporting Goods | $0 | $0 | $664 | $1,920 | $3,024 | $4,368 | $5,922 | $6,990 | $7,700 | $9,100 | $10,800 | $11,900 | |
Prototype Services | 27% | $0 | $0 | $0 | $0 | $159 | $159 | $212 | $212 | $265 | $265 | $318 | $318 |
Metalworking and Manufacturing | $490 | $760 | $870 | $1,100 | $2,400 | $3,900 | $4,950 | $5,400 | $6,300 | $8,400 | $8,800 | $9,900 | |
Subtotal Direct Cost of Sales | $490 | $1,050 | $3,340 | $6,066 | $9,587 | $14,537 | $18,654 | $21,262 | $24,573 | $29,723 | $32,721 | $37,048 |
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 | ||
Production Personnel | |||||||||||||
Service Team Manager | $0 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | |
Service Team Member | $0 | $0 | $0 | $0 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | |
Subtotal | $0 | $3,200 | $3,200 | $3,200 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | |
Sales and Marketing Personnel | |||||||||||||
Shared Marketing Associate | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
General and Administrative Personnel | |||||||||||||
Production Manager/Service Team Coordinator | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | |
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | |
Other Personnel | |||||||||||||
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total People | 2 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $3,600 | $7,050 | $7,050 | $7,050 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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 | $1,000 | $1,915 | $6,220 | $12,270 | $18,500 | $26,920 | $34,300 | $39,320 | $45,400 | $51,520 | $55,520 | $61,820 | |
Direct Cost of Sales | $490 | $1,050 | $3,340 | $6,066 | $9,587 | $14,537 | $18,654 | $21,262 | $24,573 | $29,723 | $32,721 | $37,048 | |
Production Payroll | $0 | $3,200 | $3,200 | $3,200 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | $4,300 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $490 | $4,250 | $6,540 | $9,266 | $13,887 | $18,837 | $22,954 | $25,562 | $28,873 | $34,023 | $37,021 | $41,348 | |
Gross Margin | $510 | ($2,335) | ($320) | $3,004 | $4,613 | $8,083 | $11,346 | $13,758 | $16,527 | $17,497 | $18,499 | $20,472 | |
Gross Margin % | 51.00% | -121.93% | -5.14% | 24.48% | 24.94% | 30.03% | 33.08% | 34.99% | 36.40% | 33.96% | 33.32% | 33.12% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Advertising/Promotion | $0 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | |
Other Sales and Marketing Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales and Marketing Expenses | $0 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
Sales and Marketing % | 0.00% | 36.55% | 11.25% | 5.70% | 3.78% | 2.60% | 2.04% | 1.78% | 1.54% | 1.36% | 1.26% | 1.13% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | |
Sales and Marketing and Other Expenses | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | |
Depreciation | $646 | $646 | $646 | $646 | $646 | $646 | $646 | $646 | $646 | $646 | $646 | $646 | |
Rent | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
Equipment Lease | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | $2,999 | |
Utilities | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Insurance | $350 | $350 | $350 | $350 | $350 | $350 | $450 | $450 | $450 | $450 | $450 | $450 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total General and Administrative Expenses | $9,345 | $9,345 | $9,345 | $9,345 | $9,345 | $9,345 | $9,445 | $9,445 | $9,445 | $9,445 | $9,445 | $9,445 | |
General and Administrative % | 934.48% | 487.98% | 150.24% | 76.16% | 50.51% | 34.71% | 27.54% | 24.02% | 20.80% | 18.33% | 17.01% | 15.28% | |
Other Expenses: | |||||||||||||
Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Total Operating Expenses | $9,345 | $10,045 | $10,045 | $10,045 | $10,045 | $10,045 | $10,145 | $10,145 | $10,145 | $10,145 | $10,145 | $10,145 | |
Profit Before Interest and Taxes | ($8,835) | ($12,380) | ($10,365) | ($7,041) | ($5,432) | ($1,962) | $1,201 | $3,613 | $6,382 | $7,352 | $8,354 | $10,327 | |
EBITDA | ($8,189) | ($11,734) | ($9,719) | ($6,395) | ($4,786) | ($1,316) | $1,847 | $4,259 | $7,028 | $7,998 | $9,000 | $10,973 | |
Interest Expense | $372 | $370 | $367 | $365 | $362 | $359 | $357 | $354 | $352 | $349 | $346 | $344 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($9,207) | ($12,750) | ($10,732) | ($7,405) | ($5,794) | ($2,321) | $844 | $3,259 | $6,031 | $7,003 | $8,008 | $9,983 | |
Net Profit/Sales | -920.72% | -665.78% | -172.54% | -60.35% | -31.32% | -8.62% | 2.46% | 8.29% | 13.28% | 13.59% | 14.42% | 16.15% |
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 | $250 | $479 | $1,555 | $3,068 | $4,625 | $6,730 | $8,575 | $9,830 | $11,350 | $12,880 | $13,880 | $15,455 | |
Cash from Receivables | $0 | $525 | $1,230 | $3,696 | $7,841 | $12,473 | $18,296 | $24,065 | $28,361 | $32,682 | $37,263 | $40,740 | |
Subtotal Cash from Operations | $250 | $1,004 | $2,785 | $6,764 | $12,466 | $19,203 | $26,871 | $33,895 | $39,711 | $45,562 | $51,143 | $56,195 | |
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 | $250 | $1,004 | $2,785 | $6,764 | $12,466 | $19,203 | $26,871 | $33,895 | $39,711 | $45,562 | $51,143 | $56,195 | |
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 | $3,600 | $7,050 | $7,050 | $7,050 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | $8,150 | |
Bill Payments | $182 | $5,539 | $7,643 | $11,652 | $14,849 | $19,232 | $25,508 | $28,813 | $30,007 | $34,117 | $40,899 | $41,902 | |
Subtotal Spent on Operations | $3,782 | $12,589 | $14,693 | $18,702 | $22,999 | $27,382 | $33,658 | $36,963 | $38,157 | $42,267 | $49,049 | $50,052 | |
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 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | $313 | |
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 | $4,095 | $12,902 | $15,006 | $19,014 | $23,312 | $27,694 | $33,971 | $37,276 | $38,469 | $42,580 | $49,362 | $50,365 | |
Net Cash Flow | ($3,845) | ($11,898) | ($12,220) | ($12,250) | ($10,846) | ($8,491) | ($7,100) | ($3,381) | $1,241 | $2,982 | $1,781 | $5,830 | |
Cash Balance | $166,805 | $154,907 | $142,687 | $130,436 | $119,591 | $111,100 | $104,000 | $100,619 | $101,860 | $104,842 | $106,623 | $112,453 |
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 | $170,650 | $166,805 | $154,907 | $142,687 | $130,436 | $119,591 | $111,100 | $104,000 | $100,619 | $101,860 | $104,842 | $106,623 | $112,453 |
Accounts Receivable | $0 | $750 | $1,661 | $5,096 | $10,602 | $16,636 | $24,353 | $31,782 | $37,208 | $42,897 | $48,855 | $53,232 | $58,857 |
Inventory | $1,000 | $510 | $1,050 | $3,340 | $6,066 | $9,587 | $14,537 | $18,654 | $21,262 | $24,573 | $29,723 | $32,721 | $37,048 |
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 | $176,650 | $173,065 | $162,618 | $156,122 | $152,104 | $150,814 | $154,990 | $159,436 | $164,088 | $174,330 | $188,420 | $197,576 | $213,358 |
Long-term Assets | |||||||||||||
Long-term Assets | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 | $45,000 |
Accumulated Depreciation | $0 | $646 | $1,292 | $1,937 | $2,583 | $3,229 | $3,875 | $4,521 | $5,167 | $5,812 | $6,458 | $7,104 | $7,750 |
Total Long-term Assets | $45,000 | $44,354 | $43,708 | $43,063 | $42,417 | $41,771 | $41,125 | $40,479 | $39,833 | $39,188 | $38,542 | $37,896 | $37,250 |
Total Assets | $221,650 | $217,419 | $206,327 | $199,185 | $194,521 | $192,584 | $196,115 | $199,915 | $203,922 | $213,517 | $226,962 | $235,472 | $250,608 |
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 | $5,289 | $7,258 | $11,161 | $14,215 | $18,385 | $24,549 | $27,818 | $28,877 | $32,755 | $39,509 | $40,323 | $45,789 |
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 | $5,289 | $7,258 | $11,161 | $14,215 | $18,385 | $24,549 | $27,818 | $28,877 | $32,755 | $39,509 | $40,323 | $45,789 |
Long-term Liabilities | $45,000 | $44,688 | $44,375 | $44,063 | $43,750 | $43,438 | $43,125 | $42,813 | $42,500 | $42,188 | $41,875 | $41,563 | $41,250 |
Total Liabilities | $45,000 | $49,977 | $51,633 | $55,224 | $57,965 | $61,823 | $67,674 | $70,630 | $71,377 | $74,943 | $81,384 | $81,886 | $87,039 |
Paid-in Capital | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 | $230,000 |
Retained Earnings | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) | ($53,350) |
Earnings | $0 | ($9,207) | ($21,957) | ($32,689) | ($40,094) | ($45,888) | ($48,209) | ($47,365) | ($44,106) | ($38,075) | ($31,072) | ($23,064) | ($13,081) |
Total Capital | $176,650 | $167,443 | $154,693 | $143,961 | $136,556 | $130,762 | $128,441 | $129,285 | $132,544 | $138,575 | $145,578 | $153,586 | $163,569 |
Total Liabilities and Capital | $221,650 | $217,419 | $206,327 | $199,185 | $194,521 | $192,584 | $196,115 | $199,915 | $203,922 | $213,517 | $226,962 | $235,472 | $250,608 |
Net Worth | $176,650 | $167,443 | $154,693 | $143,961 | $136,556 | $130,762 | $128,441 | $129,285 | $132,544 | $138,575 | $145,578 | $153,586 | $163,569 |
Long-term | ||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
Sales | $354,705 | $461,550 | $601,569 | $729,944 | $902,842 | $905,618 | $959,956 | $998,354 | $1,058,255 | $1,105,876 |
Cost of Sales | $243,051 | $286,974 | $338,739 | $405,839 | $485,700 | $479,978 | $508,777 | $529,128 | $560,875 | $586,114 |
Gross Margin | $111,654 | $174,576 | $262,830 | $324,105 | $417,142 | $425,640 | $451,179 | $469,226 | $497,380 | $519,762 |
Gross Margin % | 31.48% | 37.82% | 43.69% | 44.40% | 46.20% | 47.00% | 47.00% | 47.00% | 47.00% | 47.00% |
Operating Expenses | $120,438 | $131,438 | $138,538 | $145,338 | $149,638 | $157,120 | $164,976 | $173,225 | $181,886 | $190,980 |
Operating Income | ($8,784) | $43,138 | $124,292 | $178,767 | $267,504 | $268,521 | $286,203 | $296,002 | $315,494 | $328,781 |
Net Income | ($13,081) | $27,440 | $84,511 | $122,906 | $185,284 | $179,909 | $191,756 | $198,321 | $211,381 | $220,284 |
Current Assets | $213,358 | $225,937 | $301,184 | $385,061 | $503,335 | $629,169 | $755,003 | $868,253 | $998,491 | $1,098,340 |
Long-term Assets | $37,250 | $29,500 | $21,750 | $14,000 | $6,250 | $0 | $0 | $0 | $0 | $0 |
Current Liabilities | $45,789 | $26,927 | $33,663 | $40,636 | $49,625 | $51,610 | $53,675 | $55,822 | $58,054 | $60,377 |
Long-term Liabilities | $41,250 | $37,500 | $33,750 | $30,000 | $26,250 | $13,338 | $426 | $0 | $0 | $0 |
Equity | $163,569 | $191,010 | $255,520 | $328,426 | $433,710 | $590,897 | $701,754 | $812,432 | $940,437 | $1,037,964 |
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Marketing promotion expenses for the grand opening of Freeway Auto Parts Stores®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. The cost for hiring business consultant - $2,500.
Executive Summary. Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.
The Pre-written business plan package (PDF, Word, and Excel) costs $30 only! If you want to purchase multiple business plans at once then click here: Business Plans Store. The business plan package is a zipped compressed file containing the PDF, Word and Excel documents.
Our auto parts store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your auto parts store's business concept, market ...
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
3.3 How the Auto Parts Store will be started. Step1: Plan Everything. Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan.
How to Write a Auto Parts Business Plan in 7 Steps: 1. Describe the Purpose of Your Auto Parts Business. The first step to writing your business plan is to describe the purpose of your auto parts business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
4. Register Your Business and Obtain the Required License. It is important that you register your auto spare parts business before opening your shop to the public. In some states in the united states and some other countries, you would be required a license to be able to own an auto spare parts business.
The global auto spare parts market is a thriving industry with a significant market size. According to a report by Grand View Research, the market size was valued at $378.4 billion in 2020 and is expected to reach $518.0 billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 4.0% from 2021 to 2028.
After getting the plan properly, you must secure a retail location according to your business model. Choose a location that is easily accessible to your target customers and suppliers. Also, set up a spacious and organized warehouse to store and manage your spare parts inventory. 5. Licensing & Registration.
The business plan of the auto spare part business aims to maximize profit margins and ensure that the business achieves its goals and objectives. In essence, the main source of income is the retailing of a wide range of auto spare parts at attractive prices. This includes selling automotive parts and accessories including critical parts ...
This guide will help you create a comprehensive sales and marketing plan tailored to the business plan of an auto parts store. We'll begin by stressing the significance of a thorough market analysis to understand competitors and discern potential customer needs. Following that, we'll focus on establishing your store's brand identity and ...
The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your store's financial trajectory. Example: Precision Auto Parts aims for $4.5 million in annual revenue by 2028, targeting a 10% EBITDA margin.
The cost for start-up inventory (stocking with a wide range of car accessories and auto spare parts from different manufacturing brands) - $350,000. The cost for counter area equipment - $9,500. The cost for store equipment (cash register, security, ventilation, signage) - $13,750.
This document outlines a business plan for an auto spare parts store that will sell auto parts and accessories. The plan discusses the mission, objectives, and keys to success of the business. It describes that the business will be solely owned and will sell a variety of auto parts and accessories from its physical location. Finally, it provides financial projections including startup costs ...
Used Auto Sales Business Plan. Integrity Auto Sales is a car dealership that works to create a purchasing environment that caters to the customer's needs. Buying or fixing a vehicle can be incredibly expensive. And often times if you go cheaper, the quality and service can be lacking. There's got to be a better way to sell automobiles and ...
This document provides a sample business plan for an auto spare parts shop. It discusses the auto parts store industry overview, including market size and growth projections. It then provides an executive summary of a sample business called Freeway Auto Parts Stores, which will be located in Charleston, South Carolina and will sell automotive parts, distribute brands, and offer repairs. The ...
Starting Auto Spare Parts Store Business Plan (PDF) - StartupBiz Global (2022) - Free download as PDF File (.pdf) or read online for free. Start up business plan for spare parts retails
Free Book for You: How to Start a Business from Scratch (PDF) A Step by Step Guide to Starting a Small Business. This is a practical manual in a PDF format, that will walk you step by step through all the essential phases of starting your Spare Parts business. The book is packed with guides, worksheets and checklists.
Additionally, the 4th & 5th year cash position can be shown for pay-out analysis of the initial investors; this plan also give a much better equity picture. Gross Sales over $900,000 by year 6 of this plan. Gross Margins over $450,000 by year 5 of this plan. Net Income over $160,000 by year 6 of this plan.
Auto Spare Parts - Buisness plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. ASP aims to become a leading online store for auto spare parts and services in Egypt. It will launch an ecommerce website and mobile app allowing customers to track car maintenance, book service appointments, and order spare parts.
Market Study on automotive spare parts in GCC region 3.1 Market Size Spare part market in GCC was increasing in 2008 and is expected to grow on an exponential scale in 2025. GCC imported vehicles worth over USD 24 billion dollar in 2007.
A Sample Auto Spare Parts Shop Business Plan Template _ TurkishSpareParts.com - Free download as PDF File (.pdf) or read online for free. Auto spare part start up amnual