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Financials START UP BUDGET Rent/yr Inventory Build-out Cost Salary for Employees TOTALCOST

$14,000 $100,000 $10,000 $65,000__ $189,000

PROJECTED YEARLY SALES & EXPENSES Sales COGS

$1,200,000 $500,000

TOTALREVENUE

$700,000

Advertising Expense Marketing Expense Salary Expense Rent Expense Utilities Expense Insurance Expense TOTALEXPENSES

$2000 $2000 $65,000 $14,000 $6000 $1800 $90,800

TOTALREVENUEAFTEREXPENSES

$609,200

PROFITABI L I T Y SALES Sales growth for the first 3 years is expected to hit around 12% for the first year and approach 20%by the 3rd year. Retail can maintain a growth rate of 23%per year. Salesgrowth will probably be sustainable from internally generated cash funds. GROSS PROFIT MARGIN The Gross Profit Margin Average % of Sales for the first 3 years is projected to be 45%, changing by 8%per year.


OPERATING EXPENSES The Operating Expenses Average % of Sales for the first 3 years is projected to be around 40%,changing by 8.5%per year. Operating Expenses % of Sales in the 3rd year is expected to be around 36%. The Industry Benchmark is 35.3%. Operating Expensesare greater than Industry Benchmark. CASH FLOW First year Cash Flow from operations is projected to be around $60,000. By year 3 Cash Flow From Operations should be $195,000changing by 80.7%per year. Cash Flow from Operations should always be positive and improving, and it should always be able to cover the flow of debt. BREAKEVEN By year 3 the Breakeven %of Salesshould be around 88%changing by 0.3%per year. OPERATING CAPITAL Operating Capital is 18%of Sales, changing by 11.7%per year. By year 3 Operating Capital should be around $415,000. Operating Capital for the Industry Benchmark is $462,898.


Financials