Business Plan for Indonesian Restaurant - Case Study Example

Bali Laguna                           Bali Laguna San Jose, California. HERE Executive Summary 1 The Business………………………………………….. 2 1.2 Mission………………………………………………… 2 2. Company Start-up Requirements……………………………….. 3 3. Customer Profile………………………………………………... 3 4. Demographic and Economic Trends……………………………. 4 5. Current Competitors and Marketing Strategy…………………… 6 6. Sales Projections by Product Category………………………….. 8 7. Personnel Plan – Organization and Management………………… 10 8. Start-Up Funding Requirements…………………………………. 11 9. Break-Even Analysis……………………………………………… 12 10. Projected Profit and Loss………………………………………… 13 11. Projected Cash Flow and Balance Sheet…………………………. 14 12. Risks……………………………………………………………… 16 13. References……………………………………………………….. 16 APPENDIX 1. Executive Summary Bali Laguna desires to be the foremost Indonesian eating facility in San Jose, California. Bali Laguna is a start-up sole proprietorship specialising in a wide variety of Indonesian dishes from the zesty appetizer to the hearty and delicious dessert. Bali Laguna maintains competitive pricing, a marketing-focused leadership team, and a business model which focuses on community relationships and the further diversification of San Jose, California. Bali Laguna maintains a mass-market approach and will be focusing advertising and promotional efforts toward various demographic groups as Indonesian food is a business concept which is favorable for a wide variety of potential consumers. Niche market targeting for ethnic segments will also be included in Bali Lagunas business structure. Bali Laguna maintains the ability to cater to a sizeable customer-base and profit projections indicate strong opportunities for growth and profitability. This business plan identifies Bali Lagunas strengths as a start-up business and contributor to the social landscape of San Jose. Highlights 1.1. The Business Bali Laguna will serve only the finest Indonesian food in San Jose, California. With a wide variety of appetizers, entrees, soups and desserts, Bali Laguna intends to capitalize on the changing consumer trends toward ethnic and ethnic-oriented restaurants. The business will operate 10am to 10pm business hours, 7 days weekly. Located in downtown San Jose in a busy commercial and residential area, Bali Laguna will serve a variety of Indonesian fare with an attitude befitting the local culture as well as the ethnic-oriented. 1.2 Mission Bali Laguna maintains a very simply mission: To increase the business’ profit Margin while expanding Indonesia’s culture heritage into the local, diverse community population. This will be accomplished with a diverse menu and quality products served in all aspects of restaurant operations and with a dedicated staff of business professionals focused on serving the community and creating awareness of Indonesian food and culture. 2. Company Start-Up Requirements Bali Laguna is predicting the typical costs associated with a start-up restaurant, including any potential legal fees for permits and associated issues. Start-up     Requirements       Start-up Expenses   Legal $1,000 Office Supplies $400 Insurance $2,500 Rent $5,000 Computer $1,000 Petty Cash $1,000 Credit Card Agreements $300 Total Start-up Expenses $11,200     Start-up Assets   Cash Required $500 Start-up Inventory $6,000 Other Current Assets $8,000 Long-term Assets $2,500 Total Assets $17,000     Total Requirements $28,200 3.0 Customer Profile The chart below indicates the mass-market demographic groups which will serve as potential customers for Bali Laguna. Each demographic segment is based on percentages of population in San Jose as of the 2000 census by age, with a special emphasis on ethnic citizens in the downtown region. A 2% population growth rate was incorporated into the projected market analysis chart. Market Analysis     2009 2010 2011 2012 2013   Potential Customers Growth           CAGR 13-18 2% 10,000 10,200 10,404 10,612 10,824 2.00% 19-30 2% 30,000 30,600 31,212 31,836 32,473 2.00% 31-50 2% 50,000 51,000 52,020 53,060 54,121 2.00% 51-100 1% 10,000 10,100 10,201 10,303 10,406 1.00% Ethnic Background 2% 5,000 5,100 5,202 5,306 5,412 2.00% Total 1.91% 105,000 107,000 109,039 111,117 113,236 1.91% Market Analysis (Pie) 4. Demographic and Economic Trends The typical Indonesian consumer tends to shop more frequently for food and consumes higher volumes of fresh food than packaged and processed (Gain, 1). In terms of the ethnic-oriented consumer, this represents a demographic which will frequent restaurant environments more frequently in the pursuit of avoiding pre-processed food from grocery items. This gives Bali Laguna the opportunity to capitalize on these Indonesian consumer trends. Additionally, the mass-marketing strategy which will be undertaken by Bali Laguna allows the business to create a wide variety of customized messages to appeal to each demographics’ unique preferences. Two reputable marketing experts suggest the phenomenon of brand positioning, an effort in which the business utilises clever promotional and advertising materials to make the business appear different than other competitors (Boone & Kurtz, 348). Product positioning will allow Bali Laguna to send print literature to the elderly group with a customized message and marketing literature with a more contemporary flair for the younger demographic. The point of positioning will be to create a connection with consumer lifestyle and preferences through individual marketing materials and boost profitability through branding Bali Laguna with customized promotion. Bali Laguna will maintain a competitive pricing model which will focus on providing quality Indonesian food to each demographic segment at a price that is both affordable and congruent to budget restrictions at Bali Laguna. The median household income in San Jose is $22,234 (zillow.com). This is well below the national average, however the price of Bali Laguna’s menu is comparable to most competition in this region. There are, as with most cities, different regions with different levels of financial affluence which will not make pricing a considerable factor for Bali Laguna success. 5. Current Competitors and Marketing Strategy Though there are many restaurants in San Jose which could take away the business’ profitability, Bali Laguna will be the only Indonesian restaurant of its kind which will give the company a competitive edge. The ownership of Bali Laguna is not focused primarily on competitor activities due to the fact that most restaurant owners in the region are likely not educated on advanced marketing principles. This is a strategic advantage in terms of leadership as the company can utilise a wide variety of professional and commercial-tested marketing philosophies to build positive brand sentiment toward Bali Laguna. Though risk control activities would be in place in the event of changing competitor behaviors (such as promotions and coupon offerings), the business believes its strong marketing focus will undermine most competitive efforts; or will at least serve this objective. The business will create positive customer sentiment through partnerships with the SJRA, the San Jose Redevelopment Agency. This community group serves to strengthen community relationships and help to expand businesses (SJRA, 1). The SJRA commitment to working with small business owners is something which cannot be underlooked in marketing strategy. As Bali Laguna’s long-term focus is to create connection with customer segments through positioning strategies, the SJRA will work to expand the Bali Laguna message and inspire others in the community to learn about the Indonesian culinary and social beliefs. Gaining the endorsement of the SJRA will serve to build an image of community leader in San Jose and create customer connection for those groups who believe that community diversity is important. As an element of corporate social responsibility, Bali Laguna will be a leader in giving back to the local citizens who support the business. The majority of marketing literature used will be print media, as it is lower cost and can be customized for different consumer segments. Recent, pre-startup interview results indicated a measurable desire for Indonesian foods with a focus on price as an important aspect of the restaurant experience in today’s difficult economy (Personal Interview, 2008). This research was conducted to provide primary figures in regards to consumer sentiment regarding restaurant eating and interest in Indonesian fare in San Jose. The company will also use promotion to capitalize on the growing trend toward health-conscious eating. There is currently a thiamine deficiency in many urban, Indonesian elderly citizens (Juguana, Lukitoa & Schutinkb, 1). This will allow the business to put this customized message on the print advertisements (i.e. coupon flyers, etc.) highlighting the many thiamin-rich foods on the Bali Laguna menu. This will create the perception of community caring and striving to aid the elderly by keeping tabs of their health and dietary needs. 6. Sales Projections By Product Category Sales Forecast   2009 2010 2011 Sales       Appetizers $60,000 $65,000 $70,000 Drinks $50,000 $55,000 $58,000 Entrees $280,000 $300,000 $340,000 Desserts $35,000 $40,000 $45,000 Soups $75,000 $80,000 $85,000 Total Sales $500,000 $540,000 $598,000         Direct Cost of Sales 2009 2010 2011 Appetizers $30,000 $32,000 $34,000 Drinks $8,000 $9,000 $10,000 Entrees $140,000 $150,000 $160,000 Soups $8,700 $9,500 $10,000 Desserts $20,000 $22,000 $25,000 Subtotal Direct Cost of Sales $206,700 $222,500 $239,000 For the purpose of financial forecasting, Bali Laguna has categorized its menu items not by unit but by category. The chart above is the projected sales revenue for each product sales category as well as expected growth rates over a two-year period. Below are chart representations of each product category sales monthly and yearly. Entrees incorporate the highest volume of potential profit, followed by soups which are Indonesian favorites. Drinks will also add value to the profit expectations due to their low raw materials cost and high seller mark-up. Sales Monthly Sales by Year 7. Personnel Plan – Organization and Management Personnel Plan   2009 2010 2011 Asst Manager $25,000 $25,000 $25,000 Staff Employee $16,000 $16,000 $16,000 Staff Employee $16,000 $16,000 $16,000 Total People 0 0 0         Total Payroll $57,000 $57,000 $57,000 As ownership will be a crucial part of daily operations at Bali Laguna, there is only the requirement for three additional staff members. Ownership will take care of kitchen responsibilities and financial management from a leadership perspective, assisted by an assistant manager. Two additional full time employees will be required on the 12 hour operating schedule. As required by sales volume and customer demand, ownership will take on temporary responsibility of maintaining the dining area and performing subordinate functions such as the register and additional responsibilities. The executive team will create all business policies and distribute them to assistant leadership in terms of providing training to the restaurant staff associates. The provision of quality customer service and dedicated staff performance will be the highlight of all training materials. These policies will be reviewed and updated as deemed necessary by business ownership. 8. Start-up Funding Requirements Start-up Funding Start-up Expenses to Fund $11,200 Start-up Assets to Fund $17,000 Total Funding Required $28,200     Assets   Non-cash Assets from Start-up $16,500 Cash Requirements from Start-up $500 Additional Cash Raised $0 Cash Balance on Starting Date $500 Total Assets $17,000         Liabilities and Capital       Liabilities   Current Borrowing $0 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities $0 Total Liabilities $0     Capital       Planned Investment   Owner $0 Investor $0 Additional Investment Requirement $28,200 Total Planned Investment $28,200     Loss at Start-up (Start-up Expenses) ($11,200) Total Capital $17,000         Total Capital and Liabilities $17,000     Total Funding $28,200 9. Break-even Analysis The chart below indicates the break-even point for Bali Laguna. The business, based on sales projections, will require $18,404 worth of sales revenue monthly to break even on all business liabilities. Break-even Analysis     Monthly Revenue Break-even $18,404     Assumptions:   Average Percent Variable Cost 41% Estimated Monthly Fixed Cost $10,796 Break-even Analysis 10. Projected Profit and Loss Based on projections, Bali Laguna will experience a net profit of over 22 percent in the start-up year, with subsequent projected increases in 2010 and 2011. This will be based on a strong marketing focus and increases in population with a 2 percent growth rate yearly in mind, giving Bali Laguna additional prospective customers. Profit and Loss   2009 2010 2011 Sales $500,000 $540,000 $598,000 Direct Costs of Goods $206,700 $222,500 $239,000 Other Costs of Goods $2,500 $2,500 $2,800   ------------ ------------ ------------ Cost of Goods Sold $209,200 $225,000 $241,800         Gross Margin $290,800 $315,000 $356,200 Gross Margin % 58.16% 58.33% 59.57%                 Expenses       Payroll $57,000 $57,000 $57,000 Marketing/Promotion $5,000 $5,000 $5,000 Depreciation $1,000 $800 $700 Rent $30,000 $30,000 $30,000 Utilities $8,500 $9,000 $9,200 Insurance $18,000 $18,500 $19,000 Payroll Taxes $8,550 $8,750 $8,900 Other $1,500 $1,500 $1,500   ------------ ------------ ------------ Total Operating Expenses $129,550 $130,550 $131,300         Profit Before Interest and Taxes $161,250 $184,450 $224,900 Interest Expense $0 $0 $0 Taxes Incurred $48,375 $55,335 $67,470         Net Profit $112,875 $129,115 $157,430 Net Profit/Sales 22.57% 23.91% 26.33% 11. Projected Cash Flow and Balance Sheet Based on projections, the company will experience a positive cash flow in the third month of operations after start-up due to the liabilities incurred in the first month of operation. The business will sustain a nearly $100,000 cash balance at the end of 2009. Balance Sheet   2009 2010 2011 Assets               Current Assets       Cash $94,177 $204,231 $340,934 Accounts Receivable $20,486 $22,125 $24,501 Inventory $17,225 $18,542 $19,917 Other Current Assets $8,000 $8,000 $8,000 Total Current Assets $139,888 $252,897 $393,352         Long-term Assets       Long-term Assets $2,500 $2,500 $2,500 Accumulated Depreciation $1,000 $1,800 $2,500 Total Long-term Assets $1,500 $700 $0 Total Assets $141,388 $253,597 $393,352         Liabilities and Capital 2009 2010 2011         Current Liabilities       Accounts Payable $26,513 $27,607 $29,932 Current Borrowing $0 $0 $0 Other Current Liabilities ($15,000) ($33,000) ($53,000) Subtotal Current Liabilities $11,513 ($5,393) ($23,068)         Long-term Liabilities $0 $0 $0 Total Liabilities $11,513 ($5,393) ($23,068)         Paid-in Capital $28,200 $28,200 $28,200 Retained Earnings ($11,200) $101,675 $230,790 Earnings $112,875 $129,115 $157,430 Total Capital $129,875 $258,990 $416,420 Total Liabilities and Capital $141,388 $253,597 $393,352         Net Worth $129,875 $258,990 $416,420 The net worth of the business is within industry expectations and can be achieved through innovative and focused marketing, leadership, and dedication to cost-savings in terms of inventory control. 12. Risks There are two specific risks to the business: Threat of new competition and changing consumer preferences or lifestyles. The establishment of new ethnic-oriented businesses could erode the profitability of Bali Laguna if the business is able to create positive connections with the community. This is why it will be vital for the business to perform environmental analysis and competitor analysis to ensure that Bali Laguna is prepared to combat these activities. Changing marketing focus might be required as a risk control scenario in terms of competition. Changing consumer trends are difficult to measure (Boone & Kurtz, 348). With Bali Laguna being a marketing-focused business, understanding the customer is paramount to meeting long-term sales goals. A further risk control strategy involves performing various, random surveys about local restaurants, identifying what consumers really want from their eating experience. This will allow the business to use additional survey information to enhance the business model and provide what customers really want; and then use innovative marketing to accomplish the promotion of these changes. 13. References Boone, L. & D. Kurtz. Contemporary Marketing. 12th ed. Thomson South-Western, United States. 2006. Boone, L. & D. Kurtz. Contemporary Marketing. 13th ed. Thomson South-Western, United States, 2007. Juguana, J., W. Lukitoa and W. Schultinkb. “Thiamine Deficiency is Prevelant in a Selected Group of Urban Indonesian Elderly People”. University of Indonesia, Jakarta. Retrieved 10 Nov 2008 from http://jn.nutrition.org/cgi/full/ 129/2/366. RNCOS. “Indonesian Food, Beverages and Tobacco Market Forceast til 2011. Retrieved 11 Nov 2008 from http://www.rncos.com/Report/IM584.htm. Sanjoseca.gov. “City of San Jose Race/Ethnic Group Majority by Census Track”. Capital of Silicon Valley. Retrieved http://www.sanjoseca.gov/planning/census/maps/Race_Majority.pdf SJRA. “Redevelopment Works”. San Jose Redevelopment Agency. Retrieved 10 Nov 2008 from http://www.sjredevelopment.org. Zillow.com. “San Jose Demographic Data”. San Jose People. Retrieved 11 Nov 2008 from http://www.zillow.com/real-estate/NM-Albuquerque/San-Jose-neighbors Sales Forecast     Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales                           Appetizers 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Drinks 0% $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 Entrees 0% $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 $23,333 Desserts 0% $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 Soups 0% $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 Total Sales   $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667                             Direct Cost of Sales   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Appetizers   $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 Drinks   $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 Entrees   $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 Soups   $725 $725 $725 $725 $725 $725 $725 $725 $725 $725 $725 $725 Desserts   $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 Subtotal Direct Cost of Sales   $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 Personnel Plan     Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Asst Manager 0% $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 Staff Employee 0% $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 Staff Employee 0% $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 Total People   0 0 0 0 0 0 0 0 0 0 0 0                             Total Payroll   $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 Pro Forma Profit and Loss     Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales   $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 Direct Costs of Goods   $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 Other Costs of Goods   $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208     ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Cost of Goods Sold   $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433 $17,433                             Gross Margin   $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 $24,233 Gross Margin %   58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16% 58.16%                                                         Expenses                           Payroll   $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 Marketing/Promotion   $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 Depreciation   $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 Rent   $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 Utilities   $708 $708 $708 $708 $708 $708 $708 $708 $708 $708 $708 $708 Insurance   $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Payroll Taxes 15% $712 $712 $712 $712 $712 $712 $712 $712 $712 $712 $712 $712 Other   $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125     ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Operating Expenses   $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796 $10,796                             Profit Before Interest and Taxes   $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 $13,437 Interest Expense   $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Incurred   $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031 $4,031                             Net Profit   $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 $9,406 Net Profit/Sales   22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% 22.57% Pro Forma Cash Flow     Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Received                                                       Cash from Operations                           Cash Sales   $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 Cash from Receivables   $0 $347 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 Subtotal Cash from Operations   $31,250 $31,597 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667                             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   $31,250 $31,597 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667                             Expenditures   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec                             Expenditures from Operations                           Cash spending   $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 Bill Payments   $1,288 $38,278 $27,427 $27,427 $27,427 $27,427 $27,427 $27,427 $27,427 $27,427 $27,427 $27,427 Subtotal Spent on Operations   $6,038 $43,028 $32,177 $32,177 $32,177 $32,177 $32,177 $32,177 $32,177 $32,177 $32,177 $32,177                             Additional Cash Spent                           Sales Tax, VAT, HST/GST Paid Out   $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 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   $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 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   $7,288 $44,278 $33,427 $33,427 $33,427 $33,427 $33,427 $33,427 $33,427 $33,427 $33,427 $33,427                             Net Cash Flow   $23,962 ($12,681) $8,240 $8,240 $8,240 $8,240 $8,240 $8,240 $8,240 $8,240 $8,240 $8,240 Cash Balance   $24,462 $11,781 $20,020 $28,260 $36,500 $44,739 $52,979 $61,218 $69,458 $77,698 $85,937 $94,177 Pro Forma Balance Sheet     Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Starting Balances                                                     Current Assets                           Cash $500 $24,462 $11,781 $20,020 $28,260 $36,500 $44,739 $52,979 $61,218 $69,458 $77,698 $85,937 $94,177 Accounts Receivable $0 $10,417 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 $20,486 Inventory $6,000 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 $17,225 Other Current Assets $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Total Current Assets $14,500 $60,103 $57,492 $65,732 $73,971 $82,211 $90,450 $98,690 $106,930 $115,169 $123,409 $131,648 $139,888                             Long-term Assets                           Long-term Assets $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 Accumulated Depreciation $0 $83 $167 $250 $333 $417 $500 $583 $667 $750 $833 $917 $1,000 Total Long-term Assets $2,500 $2,417 $2,333 $2,250 $2,167 $2,083 $2,000 $1,917 $1,833 $1,750 $1,667 $1,583 $1,500 Total Assets $17,000 $62,520 $59,825 $67,982 $76,138 $84,294 $92,450 $100,607 $108,763 $116,919 $125,075 $133,232 $141,388                             Liabilities and Capital   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec                             Current Liabilities                           Accounts Payable $0 $37,364 $26,513 $26,513 $26,513 $26,513 $26,513 $26,513 $54,015 ($989) $26,513 $26,513 $26,513 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 ($1,250) ($2,500) ($3,750) ($5,000) ($6,250) ($7,500) ($8,750) ($10,000) ($11,250) ($12,500) ($13,750) ($15,000) Subtotal Current Liabilities $0 $36,114 $24,013 $22,763 $21,513 $20,263 $19,013 $17,763 $44,015 ($12,239) $14,013 $12,763 $11,513                             Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $0 $36,114 $24,013 $22,763 $21,513 $20,263 $19,013 $17,763 $44,015 ($12,239) $14,013 $12,763 $11,513                             Paid-in Capital $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 Retained Earnings ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) ($11,200) Earnings $0 $9,406 $18,812 $28,219 $37,625 $47,031 $56,437 $65,844 $75,250 $84,656 $94,062 $103,469 $112,875 Total Capital $17,000 $26,406 $35,812 $45,219 $54,625 $64,031 $73,437 $82,844 $92,250 $101,656 $111,063 $120,469 $129,875 Total Liabilities and Capital $17,000 $62,520 $59,825 $67,982 $76,138 $84,294 $92,450 $100,607 $136,265 $89,417 $125,075 $133,232 $141,388                             Net Worth $17,000 $26,406 $35,812 $45,219 $54,625 $64,031 $73,437 $82,844 $64,748 $129,158 $111,063 $120,469 $129,875 Read More