How to use this Business Plan Template
Replace Sample Text
Text inside brackets [ ] is meant to be read by you but then deleted. This includes suggested questions to answer,
template help and general tips.
Table of Contents, Sections and Headings
If you want to add a new section so that the Table of Contents updates automatically, just add a new heading in the
body of the document and assign it the Heading 1 or Heading 2 style.
To update the Table of Contents, go to the References tab and within the Table of Contents button group, click on
Update Table and then "Update entire table."
Financial Tables, Charts and the Companion Excel Workbook
Edit and customize the various financial tables provided in the companion Excel workbook and then paste them into
this document. This allows you to take advantage of the calculations that Excel will do automatically. The sample
tables and charts you see in this document have all been created this way.
Pasting tables from Excel to Word: Use Copy/Paste to copy a table from Excel to Word. This will typically paste the
data as a formatted and editable table in Word, though none of the formulas will be functional within Word (and the
table will not be linked to Excel). If you don't want the table to be editable in Word, you can "Paste as a Picture" using
Paste Special or by choosing the "Picture" option when you right-click in the document to paste the table.
Pasting charts from Excel to Word: When you paste a chart object into your business plan, make sure to "Paste as a
Picture" because pasting the chart as an embedded object means that the entire spreadsheet becomes embedded in
your Word document (even though what you see is only the chart).
Figure Titles and Captions
Paragraph styles have been created for making it easy to put a title or caption on the figures you include in this
template (charts, tables, pictures, etc.). They are called Figure Title and Figure Caption and can be found in the Home
tab Styles section.
Other related templates
Business Startup Costs Template
https://www.vertex42.com/ExcelTemplates/business-startup-costs.html
Sales Forecast Template
https://www.vertex42.com/ExcelTemplates/sales-forecast.html
Profit and Loss Projection Template
https://www.vertex42.com/ExcelTemplates/profit-and-loss.html
Balance Sheet Template
https://www.vertex42.com/ExcelTemplates/balance-sheet.html
Cash Flow Statement Template
https://www.vertex42.com/ExcelTemplates/cash-flow-statement.html
Business Budget Template
https://www.vertex42.com/ExcelTemplates/business-budget.html
Break Even Analysis Template
https://www.vertex42.com/ExcelTemplates/breakeven-analysis.html
Template Usage
By Vertex42.com
https://www.vertex42.com/WordTemplates/business-plan.html
Business Plan Template © 2016 Vertex42 LLC
This template, including all associated content is a copyrighted work under the United States and other copyright
laws. Do not submit copies or modifications of this template to any website or online template gallery.
Please review the following license agreement to learn how you may or may not use this template. Thank you.
License Agreement: https://www.vertex42.com/licensing/EULA_privateuse.html
CONFIDENTIAL
Page 2
Business Plan
GreenFit
The revolutionary
Eco-friendly gym
Ismail
El Hajri
Ramzi
Bouderrah
Phone: (123) 456-7890
Email: ismailetudes@icloud.com
Phone: (123) 456-7890
Email: name@domain.com
Table of Contents
1 Executive Summary......................................................................................... 3
1.1
The Quick Pitch .................................................................................................................................................. 3
1.2
The Problem ...................................................................................................................................................... 3
1.3
The Solution............................................................................................. Ошибка! Закладка не определена.
1.4
Highlights ................................................................................................. Ошибка! Закладка не определена.
1.5
Keys to Success ........................................................................................ Ошибка! Закладка не определена.
2 Our Team & Organization ............................................................................... 5
2.1
Mission Statement ............................................................................................................................................ 5
2.2
Management & Team........................................................................................................................................ 5
2.3
Company Goals and Objectives ......................................................................................................................... 5
3 Products & Services ........................................................................................ 6
4 Market Analysis .............................................................................................. 7
4.1
Market Summary ..................................................................................... Ошибка! Закладка не определена.
4.2
Customers................................................................................................ Ошибка! Закладка не определена.
4.3
Competition ............................................................................................. Ошибка! Закладка не определена.
5 Strategy & Implementation .................. Ошибка! Закладка не определена.
5.1
Milestones (Keys to Success) ................................................................... Ошибка! Закладка не определена.
5.2
Customer Acquisition .............................................................................. Ошибка! Закладка не определена.
5.3
Pricing Strategy and Revenue Model ...................................................... Ошибка! Закладка не определена.
6 Financial Plan & Projections ................. Ошибка! Закладка не определена.
6.1
Start-up Expenses & Funding .......................................................................................................................... 12
6.2
Sales Forecast .................................................................................................................................................. 13
6.3
3-Year Sales Forecast....................................................................................................................................... 14
6.4
Profit and Loss Projection................................................................................................................................ 15
6.5
Balance Sheet .................................................................................................................................................. 16
6.6
3-Year Cash Flow ............................................................................................................................................. 17
6.7
Business Budget............................................................................................................................................... 18
6.8
Break-Even Analysis......................................................................................................................................... 19
CONFIDENTIAL
Page 2
1 Executive Summary
1.1 The Quick Pitch
GreenFit is an extremely pleasant fitness establishment engaged on pursuing durable development and dedicated to
provide the most premium facilities and equipment for all our customers.
1.2 The Originality Of The Concept
Life is a continuous cycle. The end of one day is always the start of another. But despite that, in all of its aspects, daily
life doesn’t always offer us its daily dose of personal satisfactions and moral/physical fulfillment. Thought isn’t it
fundamental that for every day of our stressful lives that we have the occasion to do gratifying actions and achieve
certain a fullness of the body and the mind? It only seems so right to us, and that’s exactly the mission that we’ve
decided to give ourselves by launching the chain of fitness facilities: Greenfit.
1.3 Premium gym
Equipped with a diversified set of fitness equipment, including rowing machines, treadmills, elliptical trainers, and
fitness bikes, our establishments’ aim is providing the best equipment necessary at the disposition of our customers
for physical exercise. And that includes classes at Step, Zumba, and pilates, proposed only by the most experimented
professors, aiming to progress you at the very best level in your practice of the sport. A space of relaxation and
personal development, we wholeheartedly welcome you to enjoy a good moment and push yourself beyond your
own limits.
1.4 An eco-friendly establishment
One could even say ecology is perhaps the core focus of our gyms, at the heart of the GreenFit project. After
all, the energy produced by the usage of our equipment during physical workout, as well as the one generated by the
piezoelectric plates in different practice rooms will be regenerated as electrical energy. With surplus energy either
getting stocked in a generator or resold as green energy.
1.5 The added value of our offer
1.Educational dimension: every participant will be informed about the electrical equivalences generated through
their own physical effort and the daily energy consumption through: phones, computers, etc...
2.Dimension of participation: the sportsman contributes to the financing of the projects by using the machine, but
also by spending on our relaxation space. How you ask? Using “EcoCoins” gained through the process of electrical
regeneration, you will be able to spend it on unique eco-friendly products.
3.Competitive dimension: the concept of “EcoCoins” and participating in a common cause pushes every sportsman
to surpass and to persist during an effort. That is a team-oriented mentality unique to gyms.
1.6 A real market opportunity accompanied by a double validation
A market of fitness gyms in full expansion – its penetration rate is still very weak. With a country willing to go green
that supports way to generate green energy. After all financially speaking the two other main gyms with a similar
concept outside of China – Green System in Portland and California Fitness in Hong Kong – are leaders in their own
region, boasting the highest numbers of members and realizing a return of investment as early as the 5th year.
Because, despite the more important early investments for a traditional gym, we were able to calculate thanks to a
professor in the XX of XY that we can absorb extra costs completely within 3 years.
It also goes without saying that when planning such project, one must inquire about the location since it’s going to be
key for the target audience. We have conducted about 322 surveys around different gyms and Xi’an that helped us
find the existence of such clients and a market, and to determine the points that interested our potential clients the
most overall.
CONFIDENTIAL
Page 3
If this initial investment to create our facilities is important, the return on investment is remarkable for the
hypothesis of average and high frequentation of the gym. This leads us to think this project is not only very viable on
a purely financial standpoint, but is also very lucrative.
Important financial keys.
In order to become a real alternative to traditional fitness facilities, we want to
establish a national network through a system of franchise. This method allows the elaboration of a fast-growing
network, resistant at the face competition.
CONFIDENTIAL
Page 4
2 Our Team & Organization
2.1 Mission Statement
Going into this competition, we already k
2.2 Management & Team
[Who is working on this with you?]
[What are your backgrounds?]
[What industry experience do they have?]
[What makes your team qualified to make your business a success?]
[Who do you need to hire?]
Professional and Advisory Support
Board of Directors
Management Advisory Board
Attorney
Accountant
Insurance Agent
Banker
Consultant(s)
Mentors and Key Advisors
[names]
2.3 Company Goals and Objectives
[Type content here]
CONFIDENTIAL
Page 5
3 Products & Services
[Type content here]
CONFIDENTIAL
Page 6
4 Market Analysis
4.1 Our market
Firstly, let’s interest ourselves precisely to the market of fitness gyms in China. On average there’s over 37000 gyms
in Chinas, with memberships reaching as high as 6.6 million in 2016, yet having as much as doubled and tripled come
2019. It is estimated that around 10% of China’s population, the largest worldwide is actively working out in gyms,
and that number won’t go down any time soon.
Now, the differences between gym clubs are very important an dependent on their size, price point, geographical
location, etc… But the shown graphics depict important trends when it comes to club demographics. Women
represent about 58-61% of the clients, and the 25-45 age range is the most represented one.
4.2 Our target audience
This is why our goal is to target an audience within the age range of 25 and 40 years old and economic status of
middle class or higher. Our reasoning goes as follow: we chose to target a somewhat high social category because it
only makes sense that has a higher consciousness about ecology, that also happen to have high enough revenue to
justify gym membership.
CONFIDENTIAL
Page 7
4.3
Market study: from a financial standpoint
Even though our project necessitates a superior investment compared to that of “ordinary” gym clubs, without
ignoring the extra costs, machines that cost more and ecologic material… the success of other eco-friendly gym clubs
around the world is a good indicator of the potential the GreenFit opportunity provides and presents.
In fact the gym club, California Fitness in Hong Kong as well as Green System in Portland have both reimbursed their
early investments within 5 years and have already started making their return investment. We have been able to
conduct Skype interviews with two managers in these gyms, and they’ve been able to confirm the profitability and
sustainability of their projects.
###########QUOTE MUST BE HERE #################
And in the goal of having more precise numbers in mind, we have also been interested in the profitability of the
machines since it is them that present the extra costs compared to traditional gyms. Compared to a traditional
machine, the extra cost is estimated to be around 300€ on average. For this we have contacted a research professor
in ENCG (##??##) that, through precise calculations has demonstrated to us that extra costs would be absorbed
within 3 years.
4.4 Market study: from a geo-economic standpoint
After validating the feasibility of our project through already well-established entities in the market, we have been
focusing on validating or non-validating our project through the study of the field of target and it’s geo-economics.
That it’s to say literally addressing our potential clients.
For this we have an engineered a quantitative questionnaire (##SOURCE##), presented at the exits of various gym
clubs in Xi’an.
We have been able to collect a database of information thanks to the vast amount of respondents from all kinds of
age categories and socio-professional cases. We have been able to collect 322 responses. We’ve concluded that the
results of this questionnaire helped us massively to determine our market and have aided us to see that the
interested audience we’re looking for definitely exists.
When explaining our concept, the raised questions have also helped us determine the points that interested the
client base the most, which will constitute our selling power.
4.5 The mechanisms of choice and the criteria of our clientele
Based on the date we have gathered and with the help of the study “Xerfi”, the criteria of choice for a gym club is as
follows:







Possibility of practicing different sporting activities: 44%
Professional and competent coaching staff: 41%
Good ambiance: 41%
Good level of equipment: 40%
Good local hygiene: 26%
A structure favoring social activities: 19%
Attractive price points: 15%
One of the main conclusions we could allude to is the fact that the price is not a decisive criteria in the choice of a
gym club. This is a positive point for us as our gym club will have a somewhat high subscription price. It seems that
people are in fact ready to put good money in to have access to a higher tier facility.
And when it comes to the subscriptions, the price ladder is rather large, going from ##??## to ##??##. Thought the
average price will be around ##??##, and the variations will be largely due to the parallel services. For example in
certain gyms, an increased cost lets you have free towels for every session.
4.6 Expectations and needs
Clients in a gym are 84% motivated by their good-being and good helath:
CONFIDENTIAL
Page 8
-
51% wants to lead a healthy lifestyle
50% wants to increase their muscles
24% wants to lose weight
On this point our gym corresponds well with all the above cause we will provide all the necessary machines and
equipment, the same way traditional gyms do.
Two other motivators on the other hand are more interesting to us: 61% of subscribers come to relax. So we think
providing materials that are more ecological and cozy (using wood to cover the walls, recreation space put in place…)
will be a massive advantage.
4.7 A real opportunity:
Several analyses of our project tend to show that this aforementioned constitutes a real market opportunity.
###############QUOTE###############
First of all, our GreenFit project is part of the global trend of the fitness: in fact, based on the study Xerfi 700 "Private
management sports facilities ", we note that although there is an overall decline in the market sports facilities, fitness
centers remain a segment showing a good performance.
After all, the market penetration rate of this market is still low in China and turnover of the dynamic market of fitness
centers has only increased on the last decade, so there is a huge potential to be exploited.
There are several driving forces inherent to the sector. Societal and demographic transformations are a driving force
in the world of fitness. Due to the increase in population, women, young people and retirees are practicing sports, as
well as the increase in leisure time, awareness of the importance of healthy living and the benefits of sport, there is a
massive potential to exploit China’s fitness niche. In short, our GreenFit project is part of an enabling enviornement,
as supplemented by the following chart, showing the rise in household consumption in commercial activities related
to sport.
In other words, to resume, this is a real opportunity because of the very low penetration rate of the market and the
unsatisfied demands, with mind that we are targeting a more ecologically conscious demographic belonging to the
middle class or higher.
5 Our competition
5.1 Direct competition
As of today, our director competitors are traditional gym clubs. We may distinguish two big competitors:
##################IDK###################
Nonetheless, 95% of actors in the market are independent, as well as the market of gym clubs is very concurrent and
atomized. With that we deduce that the barrier of entry is relatively easy to get into.
CONFIDENTIAL
Page 9
[Copy this chart object from Excel and Paste it as a picture in this document]
Milestone
Milestone #1
Milestone #2
Milestone #3
Milestone #4
Milestone #5
Milestone #6
Total
Start Date
9/15/2015
10/15/2015
11/14/2015
12/14/2015
10/15/2015
11/14/2015
Duration
End Date
60 11/14/2015
60 12/14/2015
60 1/13/2016
120 4/12/2016
120 2/12/2016
30 12/14/2015
Budget
$10,000
$20,000
$30,000
$20,000
$10,000
$20,000
$110,000
[See the Milestones worksheet in the companion workbook]
5.2 Indirect competition
Our indirect competitors are:



Outdoor training classes: which currently in full growth. For example, Urban Challenge that proposes
classes all over Xi’an in 7 different locations. Their prices are very attractive since they don’t possess any
costly equipment, as well as having the ecological argument of practicing on open air. That makes them
very serious competitors, but nonetheless their share in the market remains rather small and varies
massively according to seasons and geographical locations.
Video games and virtual sport simulation: utilities like the Wii Fit, available to buy since 2008, have
attracted a share of people as they are very practical and don’t require a lot of unnecessary moving such
as going to the gym itself.
Bikes and apartment machines: equipment bought by people for home use. Nonetheless doesn’t
represent a big threat due to the cost factor involved.
The implementation of our project therefore involves taking into account a wide range of competition, consisting of
existing sports and fitness halls and many other alternatives in development. The dynamism of the actors and the
speed development of new concepts are very encouraging as they show that the market is very sensitive to
innovation.
CONFIDENTIAL
Page 10
5.3 Our positioning
Our competitors categorize themselves on two big trends:
- Low cost
- Very high quality
With the target audience we’re aiming to attract, we were fixated very clearly on the second trend.
CONFIDENTIAL
Page 11
6 Our positioning
6.1 Start-up Expenses & Funding
[Briefly summarize the start-up expenses and sources for funding and explain any anomalies shown in the tables.
Customize the expense and funding tables in the business plan companion spreadsheet then copy and paste them
below.]
Start-up Expenses
Fixed Costs
Legal and Permits
Stationery and Supplies
Insurance
Rent
Office Equipment
Website Development
Print Advertisements
Brochures
Total Fixed Costs
Average Monthly Costs
Rent
Utilities
Salaries / Wages
Total Average Monthly Costs
x Number of Months:
Total Monthly Costs
Total Startup Expenses
Start-up Assets
Owner Funding
Owner 1 Cash
Owner 2 Cash
Other
Total Owner Funding
Loans
Bank Loan 1
Bank Loan 2
Other
Total Loans
Other
Grant 1
Grant 2
Other
Total Other Funding
Total Start-up Assets
$5,000
$3,000
$10,000
$2,000
$5,000
$5,000
$10,000
$5,000
$45,000
$2,000
$5,000
$5,000
$12,000
$6
$72,000
$117,000
$50,000
$50,000
$100,000
$0
$0
$0
$0
$0
$0
$100,000
CONFIDENTIAL
Page 12
6.2 Sales Forecast
[What assumptions are you making and how might they change?]
[See the sales forecast worksheet in the companion Excel workbook]
Units Sold
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Total Units Sold
Product/Service A
500
525
550
575
550
525
525
550
575
600
650
650
6775
Product/Service B
1500
1000
1000
1250
1250
1500
1500
1750
2000
2500
3000
3000
21250
Unit Price
Avg Unit Price
Product/Service A
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
$19.99
Product/Service B
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
$14.99
Product/Service A
0%
5%
5%
5%
-4%
-5%
0%
5%
5%
4%
8%
0%
2%
Product/Service B
0%
-33%
0%
25%
0%
20%
0%
17%
14%
25%
20%
0%
8%
Sales Growth Rate
Avg Growth Rate
Revenue
Total Revenue
Product/Service A
$9,995
$10,495
$10,995
$11,494
$10,995
$10,495
$10,495
$10,995
$11,494
$11,994
$12,994
$12,994
$135,432
Product/Service B
$22,485
$14,990
$14,990
$18,738
$18,738
$22,485
$22,485
$26,233
$29,980
$37,475
$44,970
$44,970
$318,538
Total Revenue
$32,480
$25,485
$25,985
$30,232
$29,732
$32,980
$32,980
$37,227
$41,474
$49,469
$57,964
$57,964
$453,970
Unit COGS
Avg COGS
Product/Service A
$4.50
$4.50
$4.50
$4.50
$4.50
$4.50
$4.50
$4.50
$4.50
$4.00
$4.00
$4.00
$4.38
Product/Service B
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
$3.10
Product/Service A
$15.49
$15.49
$15.49
$15.49
$15.49
$15.49
$15.49
$15.49
$15.49
$15.99
$15.99
$15.99
$15.62
Product/Service B
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
$11.89
Margin Per Unit
Avg Margin
Gross Profit
Total
Product/Service A
$7,745
$8,132
$8,520
$8,907
$8,520
$8,132
$8,132
$8,520
$8,907
$9,594
$10,394
$10,394
$105,895
Product/Service B
$17,835
$11,890
$11,890
$14,863
$14,863
$17,835
$17,835
$20,808
$23,780
$29,725
$35,670
$35,670
$252,663
Total Gross Profit
$25,580
$20,022
$20,410
$23,769
$23,382
$25,967
$25,967
$29,327
$32,687
$39,319
$46,064
$46,064
$358,557
6.3 3-Year Sales Forecast
[See the sales forecast worksheet in the companion Excel workbook]
Year 1
Year 2
Year 3
Total Units Sold
Yr 2 vs Yr 1
Yr 3 vs Yr 2
% Change
Product/Service A
6775
7500
8850
11%
18%
Product/Service B
21250
27250
33750
28%
24%
Product/Service C
3650
4375
5500
20%
26%
Avg Unit Price
Difference
Product/Service A
$19.99
$19.99
$19.99
$0.00
$0.00
Product/Service B
$14.99
$14.99
$14.99
$0.00
$0.00
Product/Service C
$49.99
$54.99
$59.99
$5.00
$5.00
Avg Sales Growth Rate
Difference
Product/Service A
2%
1%
2%
-1%
1%
Product/Service B
8%
6%
4%
-2%
-2%
Product/Service C
8%
2%
3%
-6%
1%
Total Revenue
Difference
Product/Service A
$135,432
$149,925
$176,912
$14,493
$26,987
Product/Service B
$318,538
$408,478
$505,913
$89,940
$97,435
Product/Service C
$182,464
$240,581
$329,945
$58,117
$89,364
Total Revenue
$636,434
$798,984
$1,012,770
$162,550
$213,786
Product/Service A
$4.38
$4.08
$3.75
($0.30)
($0.33)
Product/Service B
$3.10
$3.05
$3.01
($0.05)
($0.04)
Product/Service C
$1.55
$1.51
$1.36
($0.04)
($0.15)
Product/Service A
$15.62
$15.91
$16.24
$0.29
$0.33
Product/Service B
$11.89
$11.94
$11.98
$0.05
$0.04
Product/Service C
$48.44
$53.48
$58.63
$5.04
$5.15
Product/Service A
$105,895
$119,431
$143,868
$13,536
$24,437
Product/Service B
$252,663
$326,003
$405,188
$73,340
$79,185
Product/Service C
$176,806
$234,025
$322,613
$57,219
$88,588
Total Gross Profit
$535,364
$679,459
$871,669
$144,095
$192,210
Avg Unit COGS
Difference
Avg Margin Per Unit
Difference
Total Gross Profit
Difference
6.4 Profit and Loss Projection
[See the profit and loss worksheet in the companion Excel workbook]
INCOME
Operating Income
Category 1
Category 2
Category 3
Category 4
Total Operating Income (OI)
Non-Operating Income
Interest Income
Rental Income
Gifts Received
Donations
Total Non-Operating Income
Total INCOME
2012
$0
% of OI
2013
-
$0
$0
% of OI
2014
-
$0
-
$0
-
-
$0
-
$0
-
Total EXPENSES
$0
-
Net Income Before Taxes
Income Tax Expense
$0
$0
$0
NET INCOME
$0
$0
$0
Owner Distributions / Dividends
Adjustment to Retained Earnings
$0
$0
$0
CONFIDENTIAL
-
$0
$0
EXPENSES
Operating Expenses
Accounting and Legal
Advertising
Depreciation
Dues and Subscriptions
Insurance
Interest Expense
Maintenance and Repairs
Office Supplies
Payroll Expenses
Postage
Rent
Research and Development
Salaries and Wages
Taxes and Licenses
Telephone
Travel
Utilities
Web Hosting and Domains
Total Operating Expenses
Non-Recurring Expenses
Furniture, Equipment & Software
Gifts Given
Total Non-Recurring Expenses
$0
$0
% of OI
$0
-
$0
-
$0
-
$0
-
$0
-
$0
-
Page 15
6.5 Balance Sheet
[See the balance sheet worksheet in the companion Excel workbook]
Assets
Current Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Short-term investments
2017
2016
$11,874
Total current assets
Fixed (Long-Term) Assets
Long-term investments
Property, plant, and equipment
(Less accumulated depreciation)
Intangible assets
$11,874
$0
$1,208
$15,340
-$2,200
Total fixed assets
$14,348
$0
Total Other Assets
$0
$26,222
$0
$0
Other Assets
Deferred income tax
Other
Total Assets
Liabilities and Owner's Equity
Current Liabilities
Accounts payable
Short-term loans
Income taxes payable
Accrued salaries and wages
Unearned revenue
Current portion of long-term debt
$8,060
$3,145
Total current liabilities
Long-Term Liabilities
Long-term debt
Deferred income tax
$11,205
$0
$3,450
Total long-term liabilities
Owner's Equity
Owner's investment
Retained earnings
Total owner's equity
Total Liabilities and Owner's Equity
Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets)
Current Ratio (Current Assets / Current Liabilities)
Working Capital (Current Assets - Current Liabilities)
Assets-to-Equity Ratio (Total Assets / Owner's Equity)
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)
CONFIDENTIAL
$3,450
$7,178
$4,389
$11,567
$26,222
0.56
1.06
669
2.27
1.27
$0
$0
$0
{42}
-
Page 16
6.6 3-Year Cash Flow
[See the cash flow worksheet in the companion Excel workbook]
CASH BALANCE
Date Ending
Cash at Beginning of Period
Cash at End of Period
2015
9/3/2015
$5,000
$5,000
2016
9/3/2016
$5,000
$5,000
2017
9/3/2017
$5,000
$5,000
CASH INFLOWS
Cash from Operations
Receipts from Customers
Gross Rents
Total Cash from Operations
Cash from Financing
Issuance of Stock
Borrowing
Total Cash from Financing
Cash from Investing
Sale of Property and Equipment
Collection of Principal on Loans
Sale of Investment Securities
Total Cash from Investing
Total Cash Inflows
2015
2016
2017
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
CASH OUTFLOWS
Operations
Wages
Inventory Purchases
General Operating Expenses
Interest
Income Taxes
Totoal Outflows from Operations
Financing
Repayment of Loans
Repurchase of Stocks
Dividends Paid
Total Outflows from Financing
Investing
Purchase of Property and Equipment
Making Loans to Other Entities
Purchase of Investment Securities
Total Outflows from Investing
Total Cash Outflows
2015
2016
2017
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
NET CASH FLOW
CONFIDENTIAL
Page 17
6.7 Business Budget
[See the business budget worksheet in the companion Excel workbook]
INCOME
Operating Income
Category 1
Category 2
Category 3
Category 4
Actual
Total Operating Income
Non-Operating Income
Interest Income
Rental Income
Gifts Received
Donations
Total Non-Operating Income
Total INCOME
EXPENSES
Operating Expenses
Accounting and Legal
Advertising
Depreciation
Dues and Subscriptions
Insurance
Interest Expense
Maintenance and Repairs
Office Supplies
Payroll Expenses
Postage
Rent
Research and Development
Salaries and Wages
Taxes and Licenses
Telephone
Travel
Utilities
Web Hosting and Domains
Total Operating Expenses
Non-Recurring Expenses
Furniture, Equipment and Software
Gifts Given
Total Non-Recurring Expenses
Total EXPENSES
Net Income Before Taxes
Income Tax Expense
NET INCOME
Budget
$0
$0
$0
$0
CONFIDENTIAL
Difference
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Page 18
6.8 Break-Even Analysis
[See the break-even analysis worksheet in the companion Excel workbook]
$12.00
Selling Price (per unit)
FIXED COSTS
Advertising
Accounting
Insurance
Manufacturing
Payroll
Rent
Supplies
Taxes
Utilities
Other (specify)
Total Fixed Costs
$1,000.00
$1,000.00
VARIABLE COSTS
Variable Costs based on dollar amount per unit
Cost of Goods Sold
Direct Labor
Overhead
Other (specify)
Total
Variable Costs based on percentage per unit
Commissions
Other (specify)
Total
Total Variable Cost per Unit
Contribution Margin per Unit
Contribution Margin Ratio
Break-Even Point
Break-Even Units
Break-Even Sales
Per Unit
$1.00
$1.00
7.50%
7.50%
$1.90
$10.10
84.17%
100 units
$1,188.12
CONFIDENTIAL
Page 19