Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,000 |
Stationery etc. | $400 |
Brochures | $400 |
Insurance | $1,000 |
Rent | $1,500 |
Expensed Equipment | $120,000 |
Total Start-up Expenses | $124,300 |
Start-up Assets | |
Cash Required | $60,700 |
Other Current Assets | $20,000 |
Long-term Assets | $70,000 |
Total Assets | $150,700 |
Total Requirements | $275,000 |
Gaming Futures’ cohesive, talented development team offer their clients:
According to a new report from DFC Intelligence, recent sales indicate that the video game market is poised for impressive growth. The report forecasts that annual unit sales of video games and PC games in the U.S. is expected to grow over 40% from 2001 to 2006. The successful introduction of four new game systems in 2000 and 2001 meant that the industry was able to avoid the major downturn in sales that has occurred in past platform transitions. According to DFC Intelligence, the industry should experience another year of record sales in 2002.
The interactive games industry is a major economic force. With an estimated global value of some $10 to $20 billion, the industry rivals Hollywood in revenues and is now recognized as a propulsive force behind the creation of markets for information and communication technologies. Games account for nearly one-third of consumer software sales in North America.
Not only was the video game market not slowed by a softening economy or the terrorist attacks, but 2001 turned out to be the best year ever for the U.S. video game industry. The total U.S. video game industry grew from $6.6 billion in 2000 to $9.4 billion in 2001. The previous all-time record was $6.9 billion in 1999.
DFC estimates that by 2006 the three leading games systems, the Sony PlayStation2, the Microsoft Xbox and the Nintendo GameCube, should have combined U.S. sales of over 60 million units. The report forecasts strong sales for all three systems. There are currently 3,000 gaming companies that are producing games for one or more of the leading gaming systems. While strong market growth is predicted, there are also many challenges facing the interactive entertainment industry.
Sales of the total U.S. interactive entertainment software market, which includes PC entertainment and video game software, approached $6 billion in 2001 versus $5.4 billion in 2000, DFC found. Console and portable software sales rose 8.3 percent in unit sales, compared to 2000, while PC entertainment software experienced a unit increase of 3.8 percent. The main challenge is that while unit sales are expected to rise rapidly, development and marketing costs are also soaring.
Companies are combating development costs by outsourcing segments of the development project. Currently, it is estimated that 30% of project work is outsourced. There are a number of advantages to this strategy.
By outsourcing, companies can take advantage of a tremendous gaming experience base without paying the personnel price tag to retain the talent on payroll. By negotiating a price for the outsourcing, companies can also cap development cost. More importantly, as few larger companies compete in the marketplace for dominance, a number of service firms will emerge to fill the demand for quality developers that are necessary for specific projects, much like the rest of software industry. It is estimated that product development in the software industry can save upwards to 30% of development costs by outsourcing key elements of the development process.
Currently there are 100+ firms that compete for outsourcing contracts in the interactive game industry. Because of the unique cultural aspect of the interactive gaming community, companies specialize in gaming devices or user groups in order to gain advantage in the proposal process.
The team’s track record is the most important pivotal issue when competing for outsourcing contracts. A firm that has an intact team that has achieved past project goals has an advantage in the bidding process. Production companies are looking for assurances that deadlines will be met and the quality will be there. The production of a game is on a tight schedule and any missed deadline will ripple effect over the entire project, and could result in missed revenues and increased expenses.
Gaming Futures’ developers, William Kerl and Diane Huber, have extensive connections throughout the gaming industry. They will be responsible for marketing the company’s services to potential customers.
The competitive advantage of Gaming Futures is always bringing in a project before the projected deadline. As noted in the Market Analysis Summary, one of the greatest challenges will be production costs. Nowhere is this more critical than with outsourced projects. If a company can produce by deadline, they will get more work.
William Kerl and Diane Huber will approach the 120 production companies that are currently producing video games. A marketing CD has been created for these presentations.
William and Diane have begun the process of presenting their company’s services to gaming production companies. The team has created a presentation program that will be the centerpiece of the marketing program.
Currently, the company has been successful in acquiring three contracts with the following companies:
The company will continue to aggressively pursue new contracts.
Gaming Futures anticipates that sales will start during the third month. The first two months of operation will have flat sales. After that point, sales will increase.
The following is the sales forecast for three years. The owners have agreed not to take a salary for the first three months of the operation, and during this phase all five owners will be involved in sales.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Projects | $279,000 | $380,000 | $644,000 |
Other | $0 | $0 | $0 |
Total Sales | $279,000 | $380,000 | $644,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Projects | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Office Setup | 5/1/2002 | 5/20/2002 | $5,000 | William Kerl | Admin |
Equipment/Network Setup | 5/1/2002 | 5/20/2002 | $100,000 | Jeremy Lang | Admin |
Marketing CD | 3/1/2002 | 4/1/2002 | $2,000 | Diane Huber | Web |
Face to Face Selling | 4/1/2001 | 6/1/2002 | $2,000 | All | Web |
Totals | $109,000 |
Gaming Futures staff is as follows:
Bill Kerl- Producer/New Business Starting out with games in 1993 programming on the 3DO, then programming and producing DreæmWhyrks games since 1995, Bill is driven to get things out. Planning for success is the most important part of any project.
Diane Huber – Lead Engineer Diane has been programming computers for over 25 years and has been making great games for the last 15 years, including DreæmWhyrks, Mighty Quinn, and Fire Mountain.
Marcus Hathcock- Programmer/GamePlay Marcus is a software engineer who has 5 years experience implementing interfaces and gameplay; most of this time was spent working on the DreæmWhyrks series at Axiomatic.
Jillian Daley- Senior Software Engineer With 11 years programming experience building games, tools, and technologies, she’s been involved in all aspects of several full 3D sims including Penthesilea and the DreæmWhyrks series.
Jeremy Lang- Software Engineer Jeremy has specialized in using artificial intelligence to simulate physical events. For the past six years Jeremy’s projects at Axiomatic have included the DreæmWhyrks series, Mighty Quinn, Fire Mountain, and Storm Warnings.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Bill Kerl | $27,000 | $42,000 | $50,000 |
Diane Huber | $27,000 | $42,000 | $50,000 |
Marcus Hathcock | $27,000 | $42,000 | $50,000 |
Jillian Daley | $27,000 | $42,000 | $50,000 |
Jeremy Lang | $27,000 | $42,000 | $50,000 |
President | $0 | $0 | $120,000 |
Total People | 5 | 5 | 6 |
Total Payroll | $135,000 | $210,000 | $370,000 |
Currently, the firm doesn’t have a corporate leader to manage the anticipated growth of the company during its third year of operation and beyond. As sales grow, the focus will be on production. The management of the company’s resources and decisions on how to effectively grow the firm will demand an individual with extensive management expertise as well as experience in the interactive gaming industry. This is critical vacancy will be addressed during the third year. The firm will hire a President to fill this role.
The following is the financial plan for Gaming Futures. The various topic tables display annual figures for the first three years. Monthly figures for the first year are presented in the appendix.
The following table and chart show our Break-even Analysis.
Break-even Analysis | |
Monthly Revenue Break-even | $16,971 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $16,971 |
The following table and charts highlight the projected profit and loss for three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $279,000 | $380,000 | $644,000 |
Direct Cost of Sales | $0 | $0 | $0 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $0 | $0 | $0 |
Gross Margin | $279,000 | $380,000 | $644,000 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $135,000 | $210,000 | $370,000 |
Sales and Marketing and Other Expenses | $12,000 | $15,000 | $20,000 |
Depreciation | $9,996 | $10,000 | $10,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $4,800 | $4,800 | $4,800 |
Insurance | $3,600 | $3,600 | $3,600 |
Rent | $18,000 | $18,000 | $18,000 |
Payroll Taxes | $20,250 | $31,500 | $55,500 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $203,646 | $292,900 | $481,900 |
Profit Before Interest and Taxes | $75,354 | $87,100 | $162,100 |
EBITDA | $85,350 | $97,100 | $172,100 |
Interest Expense | $8,960 | $7,080 | $5,080 |
Taxes Incurred | $19,918 | $24,006 | $47,106 |
Net Profit | $46,476 | $56,014 | $109,914 |
Net Profit/Sales | 16.66% | 14.74% | 17.07% |
The following table and chart highlights the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $69,750 | $95,000 | $161,000 |
Cash from Receivables | $142,750 | $260,927 | $420,075 |
Subtotal Cash from Operations | $212,500 | $355,927 | $581,075 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $212,500 | $355,927 | $581,075 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $135,000 | $210,000 | $370,000 |
Bill Payments | $73,476 | $109,491 | $149,968 |
Subtotal Spent on Operations | $208,476 | $319,491 | $519,968 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $19,200 | $20,000 | $20,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $227,676 | $339,491 | $539,968 |
Net Cash Flow | ($15,176) | $16,435 | $41,107 |
Cash Balance | $45,524 | $61,959 | $103,066 |
The following table highlights the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $45,524 | $61,959 | $103,066 |
Accounts Receivable | $66,500 | $90,573 | $153,498 |
Other Current Assets | $20,000 | $20,000 | $20,000 |
Total Current Assets | $132,024 | $172,533 | $276,564 |
Long-term Assets | |||
Long-term Assets | $70,000 | $70,000 | $70,000 |
Accumulated Depreciation | $9,996 | $19,996 | $29,996 |
Total Long-term Assets | $60,004 | $50,004 | $40,004 |
Total Assets | $192,028 | $222,537 | $316,568 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $14,052 | $8,547 | $12,665 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $14,052 | $8,547 | $12,665 |
Long-term Liabilities | $80,800 | $60,800 | $40,800 |
Total Liabilities | $94,852 | $69,347 | $53,465 |
Paid-in Capital | $175,000 | $175,000 | $175,000 |
Retained Earnings | ($124,300) | ($77,824) | ($21,810) |
Earnings | $46,476 | $56,014 | $109,914 |
Total Capital | $97,176 | $153,190 | $263,104 |
Total Liabilities and Capital | $192,028 | $222,537 | $316,568 |
Net Worth | $97,176 | $153,190 | $263,104 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7371, Computer Programming Services, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 36.20% | 69.47% | 10.40% |
Percent of Total Assets | ||||
Accounts Receivable | 34.63% | 40.70% | 48.49% | 24.10% |
Other Current Assets | 10.42% | 8.99% | 6.32% | 42.90% |
Total Current Assets | 68.75% | 77.53% | 87.36% | 71.10% |
Long-term Assets | 31.25% | 22.47% | 12.64% | 28.90% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 7.32% | 3.84% | 4.00% | 47.80% |
Long-term Liabilities | 42.08% | 27.32% | 12.89% | 19.10% |
Total Liabilities | 49.39% | 31.16% | 16.89% | 66.90% |
Net Worth | 50.61% | 68.84% | 83.11% | 33.10% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 100.00% | 100.00% | 100.00% | 0.00% |
Selling, General & Administrative Expenses | 83.34% | 85.26% | 82.93% | 82.10% |
Advertising Expenses | 4.30% | 3.95% | 3.11% | 1.20% |
Profit Before Interest and Taxes | 27.01% | 22.92% | 25.17% | 2.00% |
Main Ratios | ||||
Current | 9.40 | 20.19 | 21.84 | 1.30 |
Quick | 9.40 | 20.19 | 21.84 | 1.03 |
Total Debt to Total Assets | 49.39% | 31.16% | 16.89% | 66.90% |
Pre-tax Return on Net Worth | 68.32% | 52.24% | 59.68% | 3.10% |
Pre-tax Return on Assets | 34.58% | 35.96% | 49.60% | 9.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 16.66% | 14.74% | 17.07% | n.a |
Return on Equity | 47.83% | 36.57% | 41.78% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.15 | 3.15 | 3.15 | n.a |
Collection Days | 55 | 101 | 92 | n.a |
Accounts Payable Turnover | 6.23 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 40 | 25 | n.a |
Total Asset Turnover | 1.45 | 1.71 | 2.03 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.98 | 0.45 | 0.20 | n.a |
Current Liab. to Liab. | 0.15 | 0.12 | 0.24 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $117,972 | $163,986 | $263,900 | n.a |
Interest Coverage | 8.41 | 12.30 | 31.91 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.69 | 0.59 | 0.49 | n.a |
Current Debt/Total Assets | 7% | 4% | 4% | n.a |
Acid Test | 4.66 | 9.59 | 9.72 | n.a |
Sales/Net Worth | 2.87 | 2.48 | 2.45 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
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 | |||||||||||||
Projects | 0% | $0 | $0 | $10,000 | $15,000 | $17,000 | $24,000 | $28,000 | $30,000 | $30,000 | $35,000 | $40,000 | $50,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $10,000 | $15,000 | $17,000 | $24,000 | $28,000 | $30,000 | $30,000 | $35,000 | $40,000 | $50,000 | |
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 | |
Projects | $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 Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
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 | ||
Bill Kerl | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Diane Huber | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Marcus Hathcock | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Jillian Daley | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Jeremy Lang | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
President | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $0 | $0 | $0 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
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 | $0 | $0 | $10,000 | $15,000 | $17,000 | $24,000 | $28,000 | $30,000 | $30,000 | $35,000 | $40,000 | $50,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $0 | $0 | $10,000 | $15,000 | $17,000 | $24,000 | $28,000 | $30,000 | $30,000 | $35,000 | $40,000 | $50,000 | |
Gross Margin % | 0.00% | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
Sales and Marketing and Other Expenses | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Depreciation | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Rent | $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% | $0 | $0 | $0 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 | $2,250 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $4,033 | $4,033 | $4,033 | $21,283 | $21,283 | $21,283 | $21,283 | $21,283 | $21,283 | $21,283 | $21,283 | $21,283 | |
Profit Before Interest and Taxes | ($4,033) | ($4,033) | $5,967 | ($6,283) | ($4,283) | $2,717 | $6,717 | $8,717 | $8,717 | $13,717 | $18,717 | $28,717 | |
EBITDA | ($3,200) | ($3,200) | $6,800 | ($5,450) | ($3,450) | $3,550 | $7,550 | $9,550 | $9,550 | $14,550 | $19,550 | $29,550 | |
Interest Expense | $820 | $807 | $793 | $780 | $767 | $753 | $740 | $727 | $713 | $700 | $687 | $673 | |
Taxes Incurred | ($1,456) | ($1,452) | $1,552 | ($2,119) | ($1,515) | $589 | $1,793 | $2,397 | $2,401 | $3,905 | $5,409 | $8,413 | |
Net Profit | ($3,397) | ($3,388) | $3,622 | ($4,944) | ($3,535) | $1,375 | $4,184 | $5,593 | $5,603 | $9,112 | $12,621 | $19,631 | |
Net Profit/Sales | 0.00% | 0.00% | 36.22% | -32.96% | -20.79% | 5.73% | 14.94% | 18.64% | 18.68% | 26.03% | 31.55% | 39.26% |
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 | $0 | $0 | $2,500 | $3,750 | $4,250 | $6,000 | $7,000 | $7,500 | $7,500 | $8,750 | $10,000 | $12,500 | |
Cash from Receivables | $0 | $0 | $0 | $250 | $7,625 | $11,300 | $12,925 | $18,100 | $21,050 | $22,500 | $22,625 | $26,375 | |
Subtotal Cash from Operations | $0 | $0 | $2,500 | $4,000 | $11,875 | $17,300 | $19,925 | $25,600 | $28,550 | $31,250 | $32,625 | $38,875 | |
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 | $0 | $0 | $2,500 | $4,000 | $11,875 | $17,300 | $19,925 | $25,600 | $28,550 | $31,250 | $32,625 | $38,875 | |
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 | $0 | $0 | $0 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
Bill Payments | $85 | $2,564 | $2,654 | $5,498 | $4,131 | $4,771 | $6,832 | $8,003 | $8,573 | $8,614 | $10,105 | $11,645 | |
Subtotal Spent on Operations | $85 | $2,564 | $2,654 | $20,498 | $19,131 | $19,771 | $21,832 | $23,003 | $23,573 | $23,614 | $25,105 | $26,645 | |
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 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
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 | $1,685 | $4,164 | $4,254 | $22,098 | $20,731 | $21,371 | $23,432 | $24,603 | $25,173 | $25,214 | $26,705 | $28,245 | |
Net Cash Flow | ($1,685) | ($4,164) | ($1,754) | ($18,098) | ($8,856) | ($4,071) | ($3,507) | $997 | $3,377 | $6,036 | $5,920 | $10,630 | |
Cash Balance | $59,015 | $54,851 | $53,096 | $34,999 | $26,143 | $22,071 | $18,564 | $19,562 | $22,938 | $28,974 | $34,894 | $45,524 |
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 | $60,700 | $59,015 | $54,851 | $53,096 | $34,999 | $26,143 | $22,071 | $18,564 | $19,562 | $22,938 | $28,974 | $34,894 | $45,524 |
Accounts Receivable | $0 | $0 | $0 | $7,500 | $18,500 | $23,625 | $30,325 | $38,400 | $42,800 | $44,250 | $48,000 | $55,375 | $66,500 |
Other Current Assets | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
Total Current Assets | $80,700 | $79,015 | $74,851 | $80,596 | $73,499 | $69,768 | $72,396 | $76,964 | $82,362 | $87,188 | $96,974 | $110,269 | $132,024 |
Long-term Assets | |||||||||||||
Long-term Assets | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
Accumulated Depreciation | $0 | $833 | $1,666 | $2,499 | $3,332 | $4,165 | $4,998 | $5,831 | $6,664 | $7,497 | $8,330 | $9,163 | $9,996 |
Total Long-term Assets | $70,000 | $69,167 | $68,334 | $67,501 | $66,668 | $65,835 | $65,002 | $64,169 | $63,336 | $62,503 | $61,670 | $60,837 | $60,004 |
Total Assets | $150,700 | $148,182 | $143,185 | $148,097 | $140,167 | $135,603 | $137,398 | $141,133 | $145,698 | $149,691 | $158,644 | $171,106 | $192,028 |
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 | $2,479 | $2,470 | $5,361 | $3,974 | $4,545 | $6,566 | $7,717 | $8,288 | $8,279 | $9,720 | $11,161 | $14,052 |
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 | $2,479 | $2,470 | $5,361 | $3,974 | $4,545 | $6,566 | $7,717 | $8,288 | $8,279 | $9,720 | $11,161 | $14,052 |
Long-term Liabilities | $100,000 | $98,400 | $96,800 | $95,200 | $93,600 | $92,000 | $90,400 | $88,800 | $87,200 | $85,600 | $84,000 | $82,400 | $80,800 |
Total Liabilities | $100,000 | $100,879 | $99,270 | $100,561 | $97,574 | $96,545 | $96,966 | $96,517 | $95,488 | $93,879 | $93,720 | $93,561 | $94,852 |
Paid-in Capital | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 |
Retained Earnings | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) | ($124,300) |
Earnings | $0 | ($3,397) | ($6,785) | ($3,163) | ($8,107) | ($11,642) | ($10,268) | ($6,084) | ($490) | $5,112 | $14,224 | $26,845 | $46,476 |
Total Capital | $50,700 | $47,303 | $43,915 | $47,537 | $42,593 | $39,058 | $40,432 | $44,616 | $50,210 | $55,812 | $64,924 | $77,545 | $97,176 |
Total Liabilities and Capital | $150,700 | $148,182 | $143,185 | $148,097 | $140,167 | $135,603 | $137,398 | $141,133 | $145,698 | $149,691 | $158,644 | $171,106 | $192,028 |
Net Worth | $50,700 | $47,303 | $43,915 | $47,537 | $42,593 | $39,058 | $40,432 | $44,616 | $50,210 | $55,812 | $64,924 | $77,545 | $97,176 |
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Miscellaneous - $5,000. Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard computer training center business in the United States of America.
Writing a school business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan.
Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a school business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of school that you documented in your company overview.
First, decide whether your school will be in person or online. The benefit of instructing in person is that it is easier to teach hands-on skills with your students in front of you. However, the ...
If you are starting your own, based on your resources and expertise, you can for an online, home-based, or computer training school in a retail location. 3. Create a Business Plan. A business plan is a critical document if you are seriously planning to start a profitable and sustainable computer training center. Write in brief about business ...
Start a computer training business by following these 10 steps: Plan your Computer Training Business. Form your Computer Training Business into a Legal Entity. Register your Computer Training Business for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Computer Training Business.
They use the business plan to evaluate the potential impact of your computer training business, assess its profitability, and ensure your financial management skills. A comprehensive plan ...
Explore a real-world educational software business plan example and download a free template with this information to start writing your own business plan. ... Computer Hardware. DS Laptop (Sony Vaio) — $2,500. ... With the largest class of high school students in U.S. history graduating in 2009 and a brick-and-mortar system that cannot ...
The following school business plan template gives you the key elements to include in a winning business plan. In addition to this template, a well-crafted plan will include market research to help you better understand the school industry, market trends, your competitive advantage and your target market. It will also help you craft a smart ...
Curriculum Companion Suites (CSS) is a medium-sized software development and consulting firm focused on making the educational process more efficient and effective for K-12 schools. CCS software serves as a virtual teaching assistant for the educational process. Students can follow along with curriculum electronically through a central computer ...
Creating a schools business plan involves the following steps: Executive Summary: Provide a concise overview of the institution's mission, objectives, and key strategies. Market Analysis ...
With ClickUp's Business Plan Template for Schools, you can streamline the process of outlining your objectives, strategies, and financial projections. This template empowers school administrators and educational institutions to: Secure funding and attract stakeholders with a clear and compelling plan. Effectively manage resources and budgets to ...
Educational Website Business Plan. One Week At A Time is an educational website that teaches busy people how they can help the environment by accomplishing simple weekly tasks over the period of one year. Education is seeing an expansion and transition toward online schooling. Between YouTube, Skillshare, and a number of other site-specific ...
Lastly, you would need a good business plan to be able to launch a successful business and below is a workable computer training center business plant template that will help you to draft yours. A Sample Computer Training Center Business Plan Template 1. Industry Overview The computer training services industry is made up of centers that offer vocational and technical courses.
And How to Create One. 1. Executive summary. This is a short section that introduces the business plan as a whole to the people who will be reading it, including investors, lenders, or other members of your team. Start with a sentence or two about your business, your goals for developing it, and why it will be successful.
A Sample Computer Training Center Business Plan Template - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free.
1. Describe the Purpose of Your Computer Business. The first step to writing your business plan is to describe the purpose of your computer business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...
2.2 Start-up Summary. Our start-up costs will be $1M, which includes $450,000 for the acquisition of the Maui and Hilo operations of Servco Integrated Office Technology. The remainder of the funds will be used for: Initial Inventory: $200,000. Initial Capitalization: $225,000.
As a small business, you're not likely to be able to match the prices of your larger competitors — the personalized service you offer needs to offset this disadvantage. 3. Build your brand identity. A new computer business, like any other small business, needs to make a quick and lasting impression in order to survive.
Computer Training Center Business Plan - MARKET ANALYSIS Market Trends The key to attracting students is the ease at which students learn different computer skill sets in a training school. Any computer training center that has good records and loads of positive testimonials from students who have passed through the school will always thrive.
Business Plan On Setting Up A Computer School | PDF | Business Plan | Startup Company. Business Plan on Setting Up a Computer School - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
2.3 Start-up Summary. The start-up expense for the Gaming Futures is focused primarily on equipment and office space. William, Diane, Marcus, Jillian, and Jeremy will each invest $35,000. In addition, Gaming Futures will secure a $100,000 long term loan. Start-up Funding.