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Edit This Plan Clothing E-commerce Site Business Plan
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• 1.0 Executive Summary
• 2.0 Company Summary
• 3.0 Products Financial Plan
• 4.0 Market Analysis
7.0 Financial Plan
Summary
• 5.0 Strategy and The following is the financial plan for Liquid Culture.
Implementation Summary
• 6.0 Management
7.1 Break-even Analysis
Summary
• 7.0 Financial Plan Our break-even analysis is based on running costs, the costs we incur to ke
o Break-even business running, not on theoretical fixed costs that would be relevant only
Analysis were closing. Fixed costs include payroll, rent, utilities, and marketing costs
Break-
even Break-even Analysis
Analysi Break-even Analysis
s
Break- Monthly Revenue Break-even $177,248
even
Analysi Assumptions:
s Average Percent Variable Cost 58%
o Projected Profit Estimated Monthly Fixed Cost $75,228
and Loss
Profit Break-even Analysis
and
Loss
Profit
Monthly
o Projected Cash
Flow
Cash
Flow
Cash
o Projected
Balance Sheet
Balance
Sheet
o Business Ratios
Ratios
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Expenses
Payroll $531,600 $575,000
Sales and Marketing and
$265,000 $340,000
Other Expenses
Depreciation $0 $0
Leased Equipment $0 $0
Utilities $2,400 $2,400
Insurance $0 $0
Rent $24,000 $24,000
Payroll Taxes $79,740 $86,250
Other $0 $0
------------ ------------
Total Operating
$902,740 $1,027,650 $1
Expenses
Profit Monthly
The following table and chart are the projected cash flow for three years.
Cash Flow
Pro Forma Cash Flow
2002 2003
Cash Received
Additional Cash
Received
Sales Tax, VAT,
$0 $0
HST/GST Received
New Current Borrowing $0 $0
New Other Liabilities
$0 $0
(interest-free)
New Long-term Liabilities $0 $0
Sales of Other Current
$0 $0
Assets
Sales of Long-term $0 $0
Assets
New Investment
$0 $0
Received
Subtotal Cash Received $2,170,000 $3,000,000 $4
Expenditures from
Operations
Cash Spending $531,600 $575,000
Bill Payments $1,590,840 $2,541,460 $3
Subtotal Spent on
$2,122,440 $3,116,460 $4
Operations
Cash
Balance Sheet
Pro Forma Balance Sheet
2002 2003
Assets
Current Assets
Cash $404,264 $243,008
Inventory $264,000 $380,464
Other Current Assets $0 $0
Total Current Assets $668,264 $623,473 $1
Long-term Assets
Long-term Assets $0 $0
Accumulated
$0 $0
Depreciation
Total Long-term Assets $0 $0
Total Assets $668,264 $623,473 $1
Current Liabilities
Accounts Payable $311,080 $199,736
Current Borrowing $0 $0
Other Current Liabilities $0 $0
Subtotal Current
$311,080 $199,736
Liabilities
Percent of Total
Assets
Inventory 39.51% 61.02% 52.36%
Other Current
0.00% 0.00% 0.00%
Assets
Total Current
100.00% 100.00% 100.00%
Assets
Long-term Assets 0.00% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00%
Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 42.44% 40.00% 40.00%
Selling, General &
Administrative 42.42% 36.29% 31.23%
Expenses
Advertising
11.29% 10.00% 9.30%
Expenses
Profit Before
0.84% 5.75% 12.73%
Interest and Taxes
Main Ratios
Current 2.15 3.12 3.65
Quick 1.30 1.22 1.74
Total Debt to Total
69.78% 49.74% 33.71%
Assets
Pre-tax Return on
0.34% 50.77% 78.03%
Net Worth
Pre-tax Return on
0.10% 25.51% 51.72%
Assets
Activity Ratios
Inventory Turnover 10.91 5.59 5.57
Accounts Payable
6.11 12.17 12.17
Turnover
Payment Days 27 38 25
Total Asset
3.25 4.81 4.13
Turnover
Debt Ratios
Debt to Net Worth 2.31 0.99 0.51
Current Liab. to
0.67 0.64 0.81
Liab.
Liquidity Ratios
Net Working Capital $357,185 $423,737 $756,030
Interest Coverage 1.04 12.98 62.21
Additional Ratios
Assets to Sales 0.31 0.21 0.24
Current Debt/Total
47% 32% 27%
Assets
Acid Test 1.30 1.22 1.74
Sales/Net Worth 10.74 9.57 6.23
Dividend Payout 0.00 0.00 0.00