Business Plan Template: Business Plan Cleaning Service



[insert image/logo]

COMPANY NAME

ADDRESS

CITY, STATE ZIP CODE

Tel.

Fax:

Email:

BUSINESS PLAN

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to COMPANY NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.

___________________

Signature

___________________

Name (typed or printed)

___________________

Date

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary 1

1.1 Objectives 1

1.2 Mission 2

1.3 Keys to Success 2

2.0 Company Summary 2

2.1 Company Ownership 2

2.2 Company History 2

Table: Past Performance 3

3.0 Services 4

4.0 Market Analysis Summary 5

4.1 Market Segmentation 5

Table: Market Analysis 6

4.2 Target Market Segment Strategy 7

4.3 Service Business Analysis 7

4.3.1 Competition and Buying Patterns 7

5.0 Strategy and Implementation Summary 7

5.1 Competitive Edge 8

5.2 Marketing Strategy 8

5.3 Sales Strategy 9

5.3.1 Sales Forecast 9

Table: Sales Forecast 9

5.4 Milestones 11

Table: Milestones 11

6.0 Management Summary 11

6.1 Personnel Plan 11

Table: Personnel 12

7.0 Financial Plan 12

7.1 Important Assumptions 12

7.2 Break-even Analysis 12

Table: Break-even Analysis 12

7.3 Projected Profit and Loss 14

Table: Profit and Loss 14

7.4 Projected Cash Flow 17

Table: Cash Flow 17

7.5 Projected Balance Sheet 19

Table: Balance Sheet 19

7.6 Business Ratios 20

7.6 Business Ratios 20

Table: Ratios 20

Table: Sales Forecast 1

Table: Personnel 2

Table: Personnel 2

1.0 Executive Summary

COMPANY NAME is a long-term enterprise that was established in [CITY], [STATE] in 1976 as a sole-proprietorship company currently owned by OWNER’S NAME The company will provide dry cleaning, laundry, and garment alterations, offered with regular drive-through pick-up services. The company will has a production facility, but will still need a retail shop because of our pick-up and delivery service. However, we will need delivery vans, and customer service trained drivers.

Customers can choose payment either at the time of each delivery, or by monthly credit card billing. At the end of each month the company will send statements to each contract customer, itemizing service fees and the charge for the service to their credit cards for payment.

The business provides a new door-to-door dry cleaning, laundry and clothing alteration service in [CITY], [STATE] and surrounding neighborhoods that will surely attract customer attention. Working customers may find this service is convenient for them and want to try it. If they are satisfied with the service quality they will likely become repeat customers. When the patronage happens continuously, they become loyal customers of the service. These customers will recommend COMPANY NAME to their friends and coworkers. As more and more customers use this service, COMPANY NAME image is enhanced and we will gain more and more market share.

COMPANY NAME is seeking to attain grant funding in the amount of $250,000 in order to expand business operations, implement a larger advertising campaign and primarily to upgrade to green-technology equipment. Sales forecast gradually increase over the year 2011. COMPANY NAME projects modest net profits the first year. The company's second and third year net profits are expected to grow substantially.

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1.1 Objectives

In providing laundry and garment alteration services for customers in the [CITY], [STATE] area, COMPANY NAME aims to:

• Establish sustainable business by the end of the first year after attaining grant funding

• Have first year total sales in excess of $324,000

• Producing net profits

1.2 Mission

COMPANY NAME will offer dry cleaning, laundry, and clothing alteration services with free home pickup and delivery. The company’s high quality and convenience will save time for working customers.

1.3 Keys to Success

1. A comprehensive marketing strategy will be the key to success of the business.

2. It is important to remember that the target customers have money and want to be provided high quality service; therefore, they will only use this service if they are entirely satisfied.

3. Furthermore, the hours of operation must be convenient and service completion must be timely in order that customers are not harried after a long day working.

2.0 Company Summary

COMPANY NAME is an enterprise established as a limited liability company in [CITY], [STATE].  The company provides dry cleaning, laundry, and garment alterations, offered with regular home pick-up and delivery services. However, COMPANY NAME will need delivery vans and customer service trained drivers.  Cleaning equipment will be leased with accompanying maintenance contracts. 

2.1 Company Ownership

The proposed legal form of business is a limited liability company, wholly owned by OWNER’S NAME.  The owner/founder is the director and handles the bookkeeping responsibilities.

2.2 Company History

COMPANY NAME has been a long-term community company that was established in [CITY], [STATE] in 1976 as a sole-proprietorship company currently owned by OWNER’S NAME. The company will provide dry cleaning, laundry, and garment alterations, offered with regular drive-through pick-up services. The company will has a production facility, but will still need a retail shop because of our pick-up and delivery service. However, we will need delivery vans, and customer service trained drivers.

Customers can choose payment either at the time of each delivery, or by monthly credit card billing. At the end of each month the company will send statements to each contract customer, itemizing service fees and the charge for the service to their credit cards for payment.

The business provides a new door-to-door dry cleaning, laundry and clothing alteration service in [CITY], [STATE] and surrounding neighborhoods that will surely attract customer attention. Working customers may find this service is convenient for them and want to try it. If they are satisfied with the service quality they will likely become repeat customers. When the patronage happens continuously, they become loyal customers of the service. These customers will recommend COMPANY NAME to their friends and coworkers. As more and more customers use this service, COMPANY NAME image is enhanced and we will gain more and more market share.

Table: Past Performance

|Past Performance | | | |

| |2007 |2008 |2009 |

|Sales |$103,000 |$94,632 |$97,450 |

|Gross Margin |$103,000 |$94,632 |$97,450 |

|Gross Margin % |100.00% |100.00% |100.00% |

|Operating Expenses |$88,432 |$79,997 |$81,513 |

| | | | |

|Balance Sheet | | | |

| |2007 |2008 |2009 |

| | | | |

|Current Assets | | | |

|Cash |$1,800 |$2,467 |$455 |

|Other Current Assets |$0 |$0 |$0 |

|Total Current Assets |$1,800 |$2,467 |$455 |

| | | | |

|Long-term Assets | | | |

|Long-term Assets |$220,000 |$300,000 |$247,000 |

|Accumulated Depreciation |$0 |$0 |$0 |

|Total Long-term Assets |$220,000 |$300,000 |$247,000 |

| | | | |

|Total Assets |$221,800 |$302,467 |$247,455 |

| | | | |

|Current Liabilities | | | |

|Accounts Payable |$0 |$0 |$0 |

|Current Borrowing |$0 |$0 |$0 |

|Other Current Liabilities (interest free) |$0 |$0 |$0 |

|Total Current Liabilities |$0 |$0 |$0 |

| | | | |

|Long-term Liabilities |$0 |$0 |$0 |

|Total Liabilities |$0 |$0 |$0 |

| | | | |

|Paid-in Capital |$0 |$0 |$0 |

|Retained Earnings |$207,232 |$287,832 |$231,518 |

|Earnings |$14,568 |$14,635 |$15,937 |

|Total Capital |$221,800 |$302,467 |$247,455 |

| | | | |

|Total Capital and Liabilities |$221,800 |$302,467 |$247,455 |

| | | | |

|Other Inputs | | | |

|Payment Days |0 |0 |0 |

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3.0 Services

COMPANY NAME is going to provide the following services for customers with free home pick-up and delivery in the [CITY] area:

• Dry cleaning

• Laundry for personal clothes and large items such as blankets, duvets, curtains, etc.

• Alteration service

Operations plan

There are two ways for customers to take part in the service. Customers can sign contracts with COMPANY NAME to get regularly scheduled service, or, if it is more convenient, they can order over the telephone or via e-mail.

Customers can choose payment either at the time of each delivery, or by monthly credit card billing. We will send statements to each contract customer, itemizing service fees and the charge for the service to their credit cards for payment, at the end of each month.

The operations facility is divided into four main sections as following:

1. Machine installation and cleaning activities

2. Sorting and storage of dirty garments received

3. Storing cleaned garments after finishing prior to delivery

4. Garment alteration workroom

The whole operation process is controlled and monitored by a laundry expert employee, and generally managed by the business owner.

4.0 Market Analysis Summary

It is necessary to establish the reasons for choosing the dry cleaning, laundry, and alteration service before doing the market research and marketing plan. "Laundries and Dry Cleaners rated in the top ten enterprises with the lowest failure rate."

• Payment for the service is by cash, check, or credit card.

• No capital stagnancy, receive payment every month, easy to get instant profit.

• Capital requirement for purchasing commercial laundry equipment is minimal; therefore the risk of this business is low.

• This service only requires a few staff.

• Supplies a needed service for customers’ frequent demand (laundry - clean clothes).

• Customers use this service as there are few or no alternatives (dry cleaning, carpet cleaning…).

• The demand for using service is increasing due to changing life styles, incomes, and the increase in clothing expenditure.

4.1 Market Segmentation

COMPANY NAME will be primarily targeting customers in the [CITY]-[COUNTY] County area. The company will continue by offering services to the [CITY] residents but will also aim at extending our service offering to the residents of nearby towns west of [CITY], [STATE].

COMPANY NAME will be targeting both full-time and part-time employed customers who would value the convenience of our service.  As of the census of 2009, there were 24,675 people, 8,828 households, and 3,601 families residing in the city. The population density was 2,740.8 people per square mile (1,058.6/km2).

The racial makeup of the city was:

• 83.10% White

• 8.48% Asian

• 3.40% from two or more races

• 2.40% African American

• 1.58% from other races

• 0.67% Native American

• 0.38% Pacific Islander

Hispanic or Latino of any race was 3.86% of the population.

The 2000 Census found 9,398 housing units at an average density of 1,043.9/sq mi (403.2/km2). There were 8,828 households out of which:

• 59.2% were non-families

• 33.0% were married couples living together

• 31.1% of all households were made up of individuals

• 20.0% had children under the age of 18 living with them

• 5.8% had a female householder with no husband present

• 3.7% had someone living alone who was 65 years of age or older (included in the 31.1% of households made up of individuals)

The average household size was 2.23 and the average family size was 2.87.

In the city the population was spread out as follows:

• 13.1% under the age of 18

• 49.4% from 18 to 24

• 22.8% from 25 to 44

• 10.3% from 45 to 64

• 4.5% who were 65 years of age or older.

The median age was 22 years. For every 100 females there are 104.6 males. For every 100 females age 18 and over, there were 104.7 males.

The median income for a household in the city was $20,652, and the median income for a family was $46,165. Males had a median income of $36,743 versus $29,192 for females. The per capita income for the city was $13,448. About 15.3% of families and 37.5% of the population were below the poverty line, including 20.0% of those under age 18 and 3.6% of age 65 or over.

Table: Market Analysis

|Market Analysis | | | |

| |2010 |2011 |2012 |

|Sales | | | |

|Dry Cleaning |$116,892 |$151,960 |$197,548 |

|Laundry |$185,079 |$240,603 |$312,784 |

|Alteration Services |$22,729 |$29,547 |$38,412 |

|Total Sales |$324,700 |$422,110 |$548,744 |

| | | | |

|Direct Cost of Sales |2010 |2011 |2012 |

|Dry Cleaning |$14,027 |$14,448 |$14,881 |

|Laundry |$19,096 |$19,669 |$20,259 |

|Alteration Services |$31,218 |$32,155 |$33,119 |

|Subtotal Direct Cost of Sales |$64,341 |$66,272 |$68,259 |

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5.4 Milestones

COMPANY NAME detailed milestones are shown in the following table and chart. The related budgets are included with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis that comes in Chapter 7 of this plan.

COMPANY NAME is seeking grant funding in order to upgrade to newer, higher powered green technology.  As well, the company would also plans to purchase a leather cleaning machine to offer even more services to COMPANY NAME customers.

Table: Milestones

|Milestones | | | | | |

|Milestone |Start Date |End Date |Budget |Manager |Department |

|Upgrade Equipment to Green Technology |7/11/2010 |12/31/2010 |$240,000 | |Owner |

|Implement Advertising Campaign |7/11/2010 |5/1/2011 |$10,000 | |Owner |

| | | | | | |

|Totals | | |$250,000 | | |

6.0 Management Summary

The owner of the business is director and accountant, working full time. A laundry expert is employed and will be in charge of the operation and the quality of garment cleaning. Workers will report the laundry expert who reports to the owner.

6.1 Personnel Plan

Through consultations with a dry cleaning consultant, the term of reference of a laundry expert and workers are prepared. Employment information will be advertised in local newspapers. The laundry expert and two part-time workers who have experience in laundry work will be employed.

The laundry expert will be in charge of the operation and the quality of garment cleaning. Workers will be responsible for cleaning and classifying work and have duty to report daily work to the laundry expert. The expert has to report their working results and problems to the director.

Two part-time drivers for picking up and delivering clothes work from 5:30 pm - 9:30 pm three times a week.

The staff should be able to carry out working conditions and requirements:

• Understand and apply dry cleaning and washing processes

• Meet set standards by following instructions

• Work in hot, humid surroundings

• Perform the same work continuously

• Overtime may be required during peak seasons such as spring and autumn.

From April 2011, the business has more customers and becomes busier, thus new staff (a worker and a driver) will be employed. The business prefers to hire extra part-time workers and drivers sharing the total needed working hours. In case one of them becomes sick or busy, other staff can replace him therefore the working process will not be affected.

An average 5% increase in all salaries is planned for the following two years of operations.

Table: Personnel

|Personnel Plan | | | |

| |2010 |2011 |2012 |

|Owner |$0 |$0 |$0 |

|Laundry expert |$24,960 |$26,208 |$27,518 |

|Worker-1 |$11,232 |$11,794 |$12,383 |

|Worker-2 |$11,232 |$11,794 |$12,383 |

|Driver-1 |$4,368 |$4,586 |$4,815 |

|Driver-2 |$4,368 |$4,586 |$4,815 |

|Total People |6 |6 |6 |

| | | | |

|Total Payroll |$56,160 |$58,968 |$61,915 |

7.0 Financial Plan

The following topics, the cash flow statement, profit and loss account, and balance sheet have been built using forecasted information which is as accurate and realistic as possible. Sales increase gradually over the 12 months showing the positive trend of sales. COMPANY NAME is steadily gaining market share. Gross profit and net profit rise proportionately to sales revenue. The financial statements show that the business runs quite well and achieves expected results.

7.1 Important Assumptions

The following table shows the General Assumptions for COMPANY NAME.

7.2 Break-even Analysis

The monthly break-even point of the business is calculated below. As revenue becomes higher than break-even point, the business starts to harvest the profit. As forecasted, the total demand on dry cleaning and laundry service continues to rise in the following years; therefore, if the service satisfies its customers, increases new customers and retains customer loyalty, the profit will continue to go up.

Table: Break-even Analysis

|Break-even Analysis | |

| | |

|Monthly Revenue Break-even |$11,792 |

| | |

|Assumptions: | |

|Average Percent Variable Cost |20% |

|Estimated Monthly Fixed Cost |$9,455 |

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7.3 Projected Profit and Loss

The table below outlines COMPANY NAME projected profit and loss statements for the next three years of operation.

Table: Profit and Loss

|Pro Forma Profit and Loss | | | |

| |2010 |2011 |2012 |

|Sales |$324,700 |$422,110 |$548,744 |

|Direct Cost of Sales |$64,341 |$66,272 |$68,259 |

|Other Costs of Sales |$0 |$0 |$0 |

|Total Cost of Sales |$64,341 |$66,272 |$68,259 |

| | | | |

|Gross Margin |$260,359 |$355,838 |$480,485 |

|Gross Margin % |80.18% |84.30% |87.56% |

| | | | |

| | | | |

|Expenses | | | |

|Payroll |$56,160 |$58,968 |$61,915 |

|Marketing/Promotion |$2,250 |$2,700 |$3,000 |

|Depreciation |$3,000 |$4,000 |$3,000 |

|Rent |$14,400 |$15,000 |$16,000 |

|Utilities |$11,100 |$12,000 |$13,000 |

|Telecommunications |$4,800 |$5,000 |$5,500 |

|Insurance |$10,200 |$11,000 |$12,000 |

|Maintenance |$1,200 |$1,500 |$2,000 |

|Gas |$5,250 |$6,500 |$7,500 |

|Office cleaning |$3,600 |$4,000 |$5,000 |

| | | | |

|Total Operating Expenses |$111,960 |$120,668 |$128,915 |

| | | | |

|Profit Before Interest and Taxes |$148,399 |$235,170 |$351,570 |

|EBITDA |$151,399 |$239,170 |$354,570 |

| Interest Expense |$0 |$0 |$0 |

| Taxes Incurred |$44,520 |$70,551 |$105,471 |

| | | | |

|Net Profit |$103,879 |$164,619 |$246,099 |

|Net Profit/Sales |31.99% |39.00% |44.85% |

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7.4 Projected Cash Flow

Cash flow increases gradually over the year creating the positive net worth. The first several months of operation will be of critical importance to the survival of the business, and COMPANY NAME will be paying special attention to the company's cash flows. COMPANY NAME plans to purchase one van in April 2011 to accommodate for the growing business volumes.  The company anticipates generating a sufficient customer base that will allow COMPANY NAME to maintain healthy cash balances starting from the middle of the first year of operations after grant funding is attained, as summarized in the table below.

Table: Cash Flow

|Pro Forma Cash Flow | | | |

| |2010 |2011 |2012 |

|Cash Received | | | |

| | | | |

|Cash from Operations | | | |

|Cash Sales |$324,700 |$422,110 |$548,744 |

|Subtotal Cash from Operations |$324,700 |$422,110 |$548,744 |

| | | | |

|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 |$250,000 |$0 |$0 |

|Subtotal Cash Received |$574,700 |$422,110 |$548,744 |

| | | | |

|Expenditures |2010 |2011 |2012 |

| | | | |

|Expenditures from Operations | | | |

|Cash Spending |$56,160 |$58,968 |$61,915 |

|Bill Payments |$144,877 |$195,319 |$234,179 |

|Subtotal Spent on Operations |$201,037 |$254,286 |$296,094 |

| | | | |

|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 |$0 |$0 |$0 |

|Purchase Other Current Assets |$0 |$0 |$0 |

|Purchase Long-term Assets |$240,000 |$0 |$0 |

|Dividends |$0 |$0 |$0 |

|Subtotal Cash Spent |$441,037 |$254,286 |$296,094 |

| | | | |

|Net Cash Flow |$133,663 |$167,824 |$252,650 |

|Cash Balance |$134,118 |$301,942 |$554,592 |

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7.5 Projected Balance Sheet

The table below shows the balance sheet annual figures for the first three years of operation after grant funding is attained. First year monthly figures are presented in the appendix.

Table: Balance Sheet

|Pro Forma Balance Sheet | | | |

| |2010 |2011 |2012 |

|Assets | | | |

| | | | |

|Current Assets | | | |

|Cash |$134,118 |$301,942 |$554,592 |

|Other Current Assets |$0 |$0 |$0 |

|Total Current Assets |$134,118 |$301,942 |$554,592 |

| | | | |

|Long-term Assets | | | |

|Long-term Assets |$487,000 |$487,000 |$487,000 |

|Accumulated Depreciation |$3,000 |$7,000 |$10,000 |

|Total Long-term Assets |$484,000 |$480,000 |$477,000 |

|Total Assets |$618,118 |$781,942 |$1,031,592 |

| | | | |

|Liabilities and Capital |2010 |2011 |2012 |

| | | | |

|Current Liabilities | | | |

|Accounts Payable |$16,784 |$15,988 |$19,539 |

|Current Borrowing |$0 |$0 |$0 |

|Other Current Liabilities |$0 |$0 |$0 |

|Subtotal Current Liabilities |$16,784 |$15,988 |$19,539 |

| | | | |

|Long-term Liabilities |$0 |$0 |$0 |

|Total Liabilities |$16,784 |$15,988 |$19,539 |

| | | | |

|Paid-in Capital |$250,000 |$250,000 |$250,000 |

|Retained Earnings |$247,455 |$351,334 |$515,954 |

|Earnings |$103,879 |$164,619 |$246,099 |

|Total Capital |$601,334 |$765,954 |$1,012,052 |

|Total Liabilities and Capital |$618,118 |$781,942 |$1,031,592 |

| | | | |

|Net Worth |$601,334 |$765,954 |$1,012,052 |

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios for Commercial Drycleaning and Laundry Collection and Distribution Establishments, based on the Standard Industrial Classification code 7216.9903, are shown for comparison.

Table: Ratios

|Ratio Analysis | | | | |

| |2010 |2011 |2012 |Industry Profile |

|Sales Growth |233.20% |30.00% |30.00% |-1.76% |

| | | | | |

|Percent of Total Assets | | | | |

|Other Current Assets |0.00% |0.00% |0.00% |23.75% |

|Total Current Assets |21.70% |38.61% |53.76% |68.16% |

|Long-term Assets |78.30% |61.39% |46.24% |31.84% |

|Total Assets |100.00% |100.00% |100.00% |100.00% |

| | | | | |

|Current Liabilities |2.72% |2.04% |1.89% |30.46% |

|Long-term Liabilities |0.00% |0.00% |0.00% |24.24% |

|Total Liabilities |2.72% |2.04% |1.89% |54.70% |

|Net Worth |97.28% |97.96% |98.11% |45.30% |

| | | | | |

|Percent of Sales | | | | |

|Sales |100.00% |100.00% |100.00% |100.00% |

|Gross Margin |80.18% |84.30% |87.56% |20.77% |

|Selling, General & Administrative Expenses |48.19% |45.30% |42.71% |9.36% |

|Advertising Expenses |0.00% |0.00% |0.00% |0.53% |

|Profit Before Interest and Taxes |45.70% |55.71% |64.07% |2.39% |

| | | | | |

|Main Ratios | | | | |

|Current |7.99 |18.89 |28.38 |1.84 |

|Quick |7.99 |18.89 |28.38 |1.01 |

|Total Debt to Total Assets |2.72% |2.04% |1.89% |61.36% |

|Pre-tax Return on Net Worth |24.68% |30.70% |34.74% |6.97% |

|Pre-tax Return on Assets |24.01% |30.08% |34.08% |2.69% |

| | | | | |

|Additional Ratios |2010 |2011 |2012 | |

|Net Profit Margin |31.99% |39.00% |44.85% |n.a |

|Return on Equity |17.27% |21.49% |24.32% |n.a |

| | | | | |

|Activity Ratios | | | | |

|Accounts Payable Turnover |9.63 |12.17 |12.17 |n.a |

|Payment Days |27 |31 |27 |n.a |

|Total Asset Turnover |0.53 |0.54 |0.53 |n.a |

| | | | | |

|Debt Ratios | | | | |

|Debt to Net Worth |0.03 |0.02 |0.02 |n.a |

|Current Liab. to Liab. |1.00 |1.00 |1.00 |n.a |

| | | | | |

|Liquidity Ratios | | | | |

|Net Working Capital |$117,334 |$285,954 |$535,052 |n.a |

|Interest Coverage |0.00 |0.00 |0.00 |n.a |

| | | | | |

|Additional Ratios | | | | |

|Assets to Sales |1.90 |1.85 |1.88 |n.a |

|Current Debt/Total Assets |3% |2% |2% |n.a |

|Acid Test |7.99 |18.89 |28.38 |n.a |

|Sales/Net Worth |0.54 |0.55 |0.54 |n.a |

|Dividend Payout | 0.00 |0.00 |0.00 |n.a |

Table: Sales Forecast

Sales Forecast | | | | | | | | | | | | | | | | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Sales | | | | | | | | | | | | | | |Dry Cleaning |0% |$4,176 |$5,364 |$6,156 |$8,280 |$9,216 |$9,720 |$10,728 |$11,520 |$12,456 |$12,924 |$13,212 |$13,140 | |Laundry |0% |$6,612 |$8,493 |$9,747 |$13,110 |$14,592 |$15,390 |$16,986 |$18,240 |$19,722 |$20,463 |$20,919 |$20,805 | |Alteration Services |0% |$812 |$1,043 |$1,197 |$1,610 |$1,792 |$1,890 |$2,086 |$2,240 |$2,422 |$2,513 |$2,569 |$2,555 | |Total Sales | |$11,600 |$14,900 |$17,100 |$23,000 |$25,600 |$27,000 |$29,800 |$32,000 |$34,600 |$35,900 |$36,700 |$36,500 | | | | | | | | | | | | | | | | |Direct Cost of Sales | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Dry Cleaning |12% |$501 |$644 |$739 |$994 |$1,106 |$1,166 |$1,287 |$1,382 |$1,495 |$1,551 |$1,585 |$1,577 | |Laundry |8% |$1,200 |$1,260 |$1,323 |$1,389 |$1,458 |$1,531 |$1,608 |$1,688 |$1,772 |$1,861 |$1,954 |$2,052 | |Alteration Services |30% |$2,200 |$2,266 |$2,334 |$2,404 |$2,476 |$2,550 |$2,626 |$2,705 |$2,786 |$2,870 |$2,956 |$3,045 | |Subtotal Direct Cost of Sales | |$3,901 |$4,170 |$4,396 |$4,787 |$5,040 |$5,247 |$5,521 |$5,775 |$6,053 |$6,282 |$6,495 |$6,674 | |

Table: Personnel

Personnel Plan | | | | | | | | | | | | | | | | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Owner |0% |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | |Laundry expert |0% |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 |$2,080 | |Worker-1 |0% |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 | |Worker-2 |0% |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 |$936 | |Driver-1 |0% |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 | |Driver-2 |0% |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 |$364 | |Total People | |6 |6 |6 |6 |6 |6 |6 |6 |6 |6 |6 |6 | | | | | | | | | | | | | | | | |Total Payroll | |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 | |

Table: Profit and Loss

Pro Forma Profit and Loss | | | | | | | | | | | | | | | | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Sales | |$11,600 |$14,900 |$17,100 |$23,000 |$25,600 |$27,000 |$29,800 |$32,000 |$34,600 |$35,900 |$36,700 |$36,500 | |Direct Cost of Sales | |$3,901 |$4,170 |$4,396 |$4,787 |$5,040 |$5,247 |$5,521 |$5,775 |$6,053 |$6,282 |$6,495 |$6,674 | |Other Costs of Sales | |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | |Total Cost of Sales | |$3,901 |$4,170 |$4,396 |$4,787 |$5,040 |$5,247 |$5,521 |$5,775 |$6,053 |$6,282 |$6,495 |$6,674 | | | | | | | | | | | | | | | | |Gross Margin | |$7,699 |$10,730 |$12,704 |$18,213 |$20,560 |$21,753 |$24,279 |$26,225 |$28,547 |$29,618 |$30,205 |$29,826 | |Gross Margin % | |66.37% |72.02% |74.29% |79.19% |80.31% |80.57% |81.47% |81.95% |82.51% |82.50% |82.30% |81.72% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Expenses | | | | | | | | | | | | | | |Payroll | |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 | |Marketing/Promotion | |$150 |$150 |$150 |$200 |$200 |$200 |$200 |$200 |$200 |$200 |$200 |$200 | |Depreciation | |$250 |$250 |$250 |$250 |$250 |$250 |$250 |$250 |$250 |$250 |$250 |$250 | |Rent | |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 |$1,200 | |Utilities |15% |$700 |$700 |$700 |$1,000 |$1,000 |$1,000 |$1,000 |$1,000 |$1,000 |$1,000 |$1,000 |$1,000 | |Telecommunications | |$400 |$400 |$400 |$400 |$400 |$400 |$400 |$400 |$400 |$400 |$400 |$400 | |Insurance | |$700 |$700 |$700 |$900 |$900 |$900 |$900 |$900 |$900 |$900 |$900 |$900 | |Maintenance | |$100 |$100 |$100 |$100 |$100 |$100 |$100 |$100 |$100 |$100 |$100 |$100 | |Gas |15% |$250 |$250 |$250 |$500 |$500 |$500 |$500 |$500 |$500 |$500 |$500 |$500 | |Office cleaning |15% |$300 |$300 |$300 |$300 |$300 |$300 |$300 |$300 |$300 |$300 |$300 |$300 | | | | | | | | | | | | | | | | |Total Operating Expenses | |$8,730 |$8,730 |$8,730 |$9,530 |$9,530 |$9,530 |$9,530 |$9,530 |$9,530 |$9,530 |$9,530 |$9,530 | | | | | | | | | | | | | | | | |Profit Before Interest and Taxes | |($1,031) |$2,000 |$3,974 |$8,683 |$11,030 |$12,223 |$14,749 |$16,695 |$19,017 |$20,088 |$20,675 |$20,296 | |EBITDA | |($781) |$2,250 |$4,224 |$8,933 |$11,280 |$12,473 |$14,999 |$16,945 |$19,267 |$20,338 |$20,925 |$20,546 | | Interest Expense | |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | | Taxes Incurred | |($309) |$600 |$1,192 |$2,605 |$3,309 |$3,667 |$4,425 |$5,008 |$5,705 |$6,026 |$6,202 |$6,089 | | | | | | | | | | | | | | | | |Net Profit | |($722) |$1,400 |$2,782 |$6,078 |$7,721 |$8,556 |$10,324 |$11,686 |$13,312 |$14,062 |$14,472 |$14,207 | |Net Profit/Sales | |-6.22% |9.40% |16.27% |26.43% |30.16% |31.69% |34.64% |36.52% |38.47% |39.17% |39.43% |38.92% | |

Table: Cash Flow

Pro Forma Cash Flow | | | | | | | | | | | | | | | | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Cash Received | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Cash from Operations | | | | | | | | | | | | | | |Cash Sales | |$11,600 |$14,900 |$17,100 |$23,000 |$25,600 |$27,000 |$29,800 |$32,000 |$34,600 |$35,900 |$36,700 |$36,500 | |Subtotal Cash from Operations | |$11,600 |$14,900 |$17,100 |$23,000 |$25,600 |$27,000 |$29,800 |$32,000 |$34,600 |$35,900 |$36,700 |$36,500 | | | | | | | | | | | | | | | | |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 |$250,000 |$0 |$0 | |Subtotal Cash Received | |$11,600 |$14,900 |$17,100 |$23,000 |$25,600 |$27,000 |$29,800 |$32,000 |$34,600 |$285,900 |$36,700 |$36,500 | | | | | | | | | | | | | | | | |Expenditures | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | | | | | | | | | | | | | | | | |Expenditures from Operations | | | | | | | | | | | | | | |Cash Spending | |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 |$4,680 | |Bill Payments | |$246 |$7,431 |$8,597 |$9,475 |$12,024 |$12,968 |$13,549 |$14,574 |$15,416 |$16,376 |$16,921 |$17,300 | |Subtotal Spent on Operations | |$4,926 |$12,111 |$13,277 |$14,155 |$16,704 |$17,648 |$18,229 |$19,254 |$20,096 |$21,056 |$21,601 |$21,980 | | | | | | | | | | | | | | | | |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 | |$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 |$240,000 |$0 | |Dividends | |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | |Subtotal Cash Spent | |$4,926 |$12,111 |$13,277 |$14,155 |$16,704 |$17,648 |$18,229 |$19,254 |$20,096 |$21,056 |$261,601 |$21,980 | | | | | | | | | | | | | | | | |Net Cash Flow | |$6,674 |$2,789 |$3,823 |$8,845 |$8,896 |$9,352 |$11,571 |$12,746 |$14,504 |$264,844 |($224,901) |$14,520 | |Cash Balance | |$7,129 |$9,918 |$13,741 |$22,586 |$31,482 |$40,834 |$52,406 |$65,152 |$79,656 |$344,499 |$119,598 |$134,118 | |

Table: Balance Sheet

Pro Forma Balance Sheet | | | | | | | | | | | | | | | | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | |Assets |Starting Balances | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Current Assets | | | | | | | | | | | | | | |Cash |$455 |$7,129 |$9,918 |$13,741 |$22,586 |$31,482 |$40,834 |$52,406 |$65,152 |$79,656 |$344,499 |$119,598 |$134,118 | |Other Current Assets |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | |Total Current Assets |$455 |$7,129 |$9,918 |$13,741 |$22,586 |$31,482 |$40,834 |$52,406 |$65,152 |$79,656 |$344,499 |$119,598 |$134,118 | | | | | | | | | | | | | | | | |Long-term Assets | | | | | | | | | | | | | | |Long-term Assets |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$247,000 |$487,000 |$487,000 | |Accumulated Depreciation |$0 |$250 |$500 |$750 |$1,000 |$1,250 |$1,500 |$1,750 |$2,000 |$2,250 |$2,500 |$2,750 |$3,000 | |Total Long-term Assets |$247,000 |$246,750 |$246,500 |$246,250 |$246,000 |$245,750 |$245,500 |$245,250 |$245,000 |$244,750 |$244,500 |$484,250 |$484,000 | |Total Assets |$247,455 |$253,879 |$256,418 |$259,991 |$268,586 |$277,232 |$286,334 |$297,656 |$310,152 |$324,406 |$588,999 |$603,848 |$618,118 | | | | | | | | | | | | | | | | |Liabilities and Capital | |Jan |Feb |Mar |Apr |May |Jun |Jul |Aug |Sep |Oct |Nov |Dec | | | | | | | | | | | | | | | | |Current Liabilities | | | | | | | | | | | | | | |Accounts Payable |$0 |$7,145 |$8,284 |$9,075 |$11,592 |$12,517 |$13,064 |$14,061 |$14,871 |$15,813 |$16,345 |$16,721 |$16,784 | |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 |$7,145 |$8,284 |$9,075 |$11,592 |$12,517 |$13,064 |$14,061 |$14,871 |$15,813 |$16,345 |$16,721 |$16,784 | |Long-term Liabilities |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 | |Total Liabilities |$0 |$7,145 |$8,284 |$9,075 |$11,592 |$12,517 |$13,064 |$14,061 |$14,871 |$15,813 |$16,345 |$16,721 |$16,784 | | | | | | | | | | | | | | | | |Paid-in Capital |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$0 |$250,000 |$250,000 |$250,000 | |Retained Earnings |$231,518 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 |$247,455 | |Earnings |$15,937 |($722) |$678 |$3,460 |$9,539 |$17,260 |$25,816 |$36,140 |$47,826 |$61,138 |$75,200 |$89,672 |$103,879 | |Total Capital |$247,455 |$246,733 |$248,133 |$250,915 |$256,994 |$264,715 |$273,271 |$283,595 |$295,281 |$308,593 |$572,655 |$587,127 |$601,334 | |Total Liabilities |$247,455 |$253,879 |$256,418 |$259,991 |$268,586 |$277,232 |$286,334 |$297,656 |$310,152 |$324,406 |$588,999 |$603,848 |$618,118 | |Net Worth |$247,455 |$246,733 |$248,133 |$250,915 |$256,994 |$264,715 |$273,271 |$283,595 |$295,281 |$308,593 |$572,655 |$587,127 |$601,334 | |

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