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Plan Outline
Advertising Agency Business Plan
Promerit Advertising
This sample business plan can be edited directly in Business Plan Pro software.
Appendix
| 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 | |||||||||||||
| Online Companies | 0% | £6,000 | £6,000 | £10,900 | £12,030 | £14,400 | £16,000 | £16,000 | £17,000 | £18,000 | £19,000 | £20,500 | £23,000 |
| Offline Companies | 0% | £0 | £0 | £0 | £0 | £4,000 | £5,000 | £4,000 | £6,000 | £6,000 | £5,000 | £7,000 | £10,000 |
| Total Sales | £6,000 | £6,000 | £10,900 | £12,030 | £18,400 | £21,000 | £20,000 | £23,000 | £24,000 | £24,000 | £27,500 | £33,000 | |
| 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 | |
| Online Companies | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Offline Companies | £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 | ||
| Robert Humphrey | 0% | £2,000 | £2,000 | £2,000 | £2,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 |
| Cheryl Littlejohn | 0% | £2,000 | £2,000 | £2,000 | £2,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 | £3,000 |
| Secretary/Receptionist | 0% | £0 | £0 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 |
| Salesperson | 0% | £0 | £0 | £3,000 | £3,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 |
| Bookkeeper | 0% | £0 | £0 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 | £2,000 |
| Other | 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 | £4,000 | £4,000 | £11,000 | £11,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | |
| 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 | £6,000 | £6,000 | £10,900 | £12,030 | £18,400 | £21,000 | £20,000 | £23,000 | £24,000 | £24,000 | £27,500 | £33,000 | |
| 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 | £6,000 | £6,000 | £10,900 | £12,030 | £18,400 | £21,000 | £20,000 | £23,000 | £24,000 | £24,000 | £27,500 | £33,000 | |
| Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Expenses | |||||||||||||
| Payroll | £4,000 | £4,000 | £11,000 | £11,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | |
| Sales and Marketing and Other Expenses | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | £4,000 | |
| Depreciation | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Leased Equipment | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Utilities | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | |
| Insurance | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| 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% | £600 | £600 | £1,650 | £1,650 | £2,100 | £2,100 | £2,100 | £2,100 | £2,100 | £2,100 | £2,100 | £2,100 |
| Other | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Total Operating Expenses | £10,300 | £10,300 | £18,350 | £18,350 | £21,800 | £21,800 | £21,800 | £21,800 | £21,800 | £21,800 | £21,800 | £21,800 | |
| Profit Before Interest and Taxes | (£4,300) | (£4,300) | (£7,450) | (£6,320) | (£3,400) | (£800) | (£1,800) | £1,200 | £2,200 | £2,200 | £5,700 | £11,200 | |
| EBITDA | (£4,300) | (£4,300) | (£7,450) | (£6,320) | (£3,400) | (£800) | (£1,800) | £1,200 | £2,200 | £2,200 | £5,700 | £11,200 | |
| Interest Expense | £819 | £806 | £792 | £778 | £764 | £750 | £736 | £722 | £708 | £694 | £681 | £667 | |
| Taxes Incurred | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Net Profit | (£5,119) | (£5,106) | (£8,242) | (£7,098) | (£4,164) | (£1,550) | (£2,536) | £478 | £1,492 | £1,506 | £5,019 | £10,533 | |
| Net Profit/Sales | -85.32% | -85.09% | -75.61% | -59.00% | -22.63% | -7.38% | -12.68% | 2.08% | 6.22% | 6.27% | 18.25% | 31.92% | |
| 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 | £1,500 | £1,500 | £2,725 | £3,008 | £4,600 | £5,250 | £5,000 | £5,750 | £6,000 | £6,000 | £6,875 | £8,250 | |
| Cash from Receivables | £0 | £150 | £4,500 | £4,623 | £8,203 | £9,182 | £13,865 | £15,725 | £15,075 | £17,275 | £18,000 | £18,088 | |
| Subtotal Cash from Operations | £1,500 | £1,650 | £7,225 | £7,630 | £12,803 | £14,432 | £18,865 | £21,475 | £21,075 | £23,275 | £24,875 | £26,338 | |
| 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 | £1,500 | £1,650 | £7,225 | £7,630 | £12,803 | £14,432 | £18,865 | £21,475 | £21,075 | £23,275 | £24,875 | £26,338 | |
| 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 | £4,000 | £4,000 | £11,000 | £11,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | £14,000 | |
| Bill Payments | £237 | £7,119 | £7,140 | £8,141 | £8,142 | £8,563 | £8,550 | £8,536 | £8,522 | £8,508 | £8,494 | £8,480 | |
| Subtotal Spent on Operations | £4,237 | £11,119 | £18,140 | £19,141 | £22,142 | £22,563 | £22,550 | £22,536 | £22,522 | £22,508 | £22,494 | £22,480 | |
| 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 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | £1,667 | |
| 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 | £5,904 | £12,786 | £19,807 | £20,808 | £23,809 | £24,230 | £24,217 | £24,203 | £24,189 | £24,175 | £24,161 | £24,147 | |
| Net Cash Flow | (£4,404) | (£11,136) | (£12,582) | (£13,178) | (£11,006) | (£9,799) | (£5,352) | (£2,728) | (£3,114) | (£900) | £714 | £2,190 | |
| Cash Balance | £151,096 | £139,960 | £127,378 | £114,199 | £103,193 | £93,395 | £88,043 | £85,316 | £82,202 | £81,302 | £82,016 | £84,206 | |
| 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 | £155,500 | £151,096 | £139,960 | £127,378 | £114,199 | £103,193 | £93,395 | £88,043 | £85,316 | £82,202 | £81,302 | £82,016 | £84,206 |
| Accounts Receivable | £0 | £4,500 | £8,850 | £12,525 | £16,925 | £22,522 | £29,090 | £30,225 | £31,750 | £34,675 | £35,400 | £38,025 | £44,688 |
| Other Current Assets | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 | £10,000 |
| Total Current Assets | £165,500 | £165,596 | £158,810 | £149,903 | £141,124 | £135,715 | £132,485 | £128,268 | £127,066 | £126,877 | £126,702 | £130,041 | £138,894 |
| Long-term Assets | |||||||||||||
| Long-term Assets | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Accumulated Depreciation | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Long-term Assets | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Assets | £165,500 | £165,596 | £158,810 | £149,903 | £141,124 | £135,715 | £132,485 | £128,268 | £127,066 | £126,877 | £126,702 | £130,041 | £138,894 |
| 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 | £6,882 | £6,869 | £7,870 | £7,857 | £8,278 | £8,265 | £8,252 | £8,238 | £8,225 | £8,211 | £8,198 | £8,184 |
| 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 | £6,882 | £6,869 | £7,870 | £7,857 | £8,278 | £8,265 | £8,252 | £8,238 | £8,225 | £8,211 | £8,198 | £8,184 |
| Long-term Liabilities | £100,000 | £98,333 | £96,666 | £94,999 | £93,332 | £91,665 | £89,998 | £88,331 | £86,664 | £84,997 | £83,330 | £81,663 | £79,996 |
| Total Liabilities | £100,000 | £105,215 | £103,535 | £102,869 | £101,189 | £99,943 | £98,263 | £96,583 | £94,902 | £93,222 | £91,541 | £89,861 | £88,180 |
| Paid-in Capital | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 | £100,000 |
| Retained Earnings | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) | (£34,500) |
| Earnings | £0 | (£5,119) | (£10,225) | (£18,467) | (£25,564) | (£29,728) | (£31,278) | (£33,814) | (£33,337) | (£31,845) | (£30,339) | (£25,320) | (£14,786) |
| Total Capital | £65,500 | £60,381 | £55,275 | £47,033 | £39,936 | £35,772 | £34,222 | £31,686 | £32,163 | £33,655 | £35,161 | £40,180 | £50,714 |
| Total Liabilities and Capital | £165,500 | £165,596 | £158,810 | £149,903 | £141,124 | £135,715 | £132,485 | £128,268 | £127,066 | £126,877 | £126,702 | £130,041 | £138,894 |
| Net Worth | £65,500 | £60,381 | £55,275 | £47,033 | £39,936 | £35,772 | £34,222 | £31,686 | £32,163 | £33,655 | £35,161 | £40,180 | £50,714 |