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Plan Outline
Educational Software Business Plan
Third Degree I.D.
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 | |||||||||||||
| New Curriculum & Content Development | 0% | £10,000 | £20,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £40,000 | £40,000 | £40,000 |
| Reuse, Re-licensure and Maintenance | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Learning Object Development | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Training | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Consulting | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Other Services | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Sales | £10,000 | £20,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £40,000 | £40,000 | £40,000 | |
| 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 | |
| Software packaging | 5% | £500 | £1,000 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £2,000 | £2,000 | £2,000 |
| Other Services | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Subtotal Direct Cost of Sales | £500 | £1,000 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £2,000 | £2,000 | £2,000 | |
| 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 | ||
| Susan Hines (CEO) | 0% | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 |
| Mona Meyer (CLO) | 0% | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 |
| Danny Stanford (CCO) | 0% | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 |
| Instructional Designer | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Production Assistant | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Director of Technology | 0% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
| Total Payroll | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | |
| 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 | £10,000 | £20,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £40,000 | £40,000 | £40,000 | |
| Direct Cost of Sales | £500 | £1,000 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £2,000 | £2,000 | £2,000 | |
| Other Costs of Sales | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Total Cost of Sales | £500 | £1,000 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £1,500 | £2,000 | £2,000 | £2,000 | |
| Gross Margin | £9,500 | £19,000 | £28,500 | £28,500 | £28,500 | £28,500 | £28,500 | £28,500 | £28,500 | £38,000 | £38,000 | £38,000 | |
| Gross Margin % | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |
| Expenses | |||||||||||||
| Payroll | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | |
| Sales and Marketing and Other Expenses | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | |
| Depreciation | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Rent | £200 | £200 | £200 | £200 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | £1,000 | |
| Utilities | £50 | £50 | £50 | £50 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | |
| Insurance | £300 | £300 | £300 | £300 | £300 | £300 | £300 | £300 | £300 | £300 | £300 | £300 | |
| Payroll Taxes | 15% | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Consultants | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | £6,250 | |
| Telecommunications | £150 | £150 | £150 | £150 | £250 | £250 | £250 | £250 | £250 | £250 | £250 | £250 | |
| Business Travel | £250 | £250 | £250 | £250 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | |
| Moving Expenses/Redecorating | 15% | £0 | £0 | £0 | £1,000 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Other | £200 | £200 | £200 | £200 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | £500 | |
| Total Operating Expenses | £26,650 | £26,650 | £26,650 | £27,650 | £28,150 | £28,150 | £28,150 | £28,150 | £28,150 | £28,150 | £28,150 | £28,150 | |
| Profit Before Interest and Taxes | (£17,150) | (£7,650) | £1,850 | £850 | £350 | £350 | £350 | £350 | £350 | £9,850 | £9,850 | £9,850 | |
| EBITDA | (£17,150) | (£7,650) | £1,850 | £850 | £350 | £350 | £350 | £350 | £350 | £9,850 | £9,850 | £9,850 | |
| Interest Expense | £240 | £229 | £219 | £208 | £198 | £188 | £177 | £167 | £156 | £146 | £135 | £125 | |
| Taxes Incurred | (£5,217) | (£2,364) | £489 | £192 | £46 | £49 | £52 | £55 | £58 | £2,911 | £2,914 | £2,918 | |
| Net Profit | (£12,173) | (£5,515) | £1,142 | £449 | £106 | £114 | £121 | £128 | £136 | £6,793 | £6,800 | £6,808 | |
| Net Profit/Sales | -121.73% | -27.58% | 3.81% | 1.50% | 0.35% | 0.38% | 0.40% | 0.43% | 0.45% | 16.98% | 17.00% | 17.02% | |
| 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 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Cash from Receivables | £0 | £333 | £10,333 | £20,333 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,333 | £40,000 | |
| Subtotal Cash from Operations | £0 | £333 | £10,333 | £20,333 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,333 | £40,000 | |
| 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 | £333 | £10,333 | £20,333 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,000 | £30,333 | £40,000 | |
| 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 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | £18,750 | |
| Bill Payments | £114 | £3,534 | £6,877 | £10,131 | £10,812 | £11,143 | £11,136 | £11,129 | £11,121 | £11,226 | £14,457 | £14,450 | |
| Subtotal Spent on Operations | £18,864 | £22,284 | £25,627 | £28,881 | £29,562 | £29,893 | £29,886 | £29,879 | £29,871 | £29,976 | £33,207 | £33,200 | |
| 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 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | £1,250 | |
| Other Liabilities Principal Repayment | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Long-term Liabilities Principal Repayment | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Purchase Other Current Assets | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Purchase Long-term Assets | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Dividends | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | |
| Subtotal Cash Spent | £20,114 | £23,534 | £26,877 | £30,131 | £30,812 | £31,143 | £31,136 | £31,129 | £31,121 | £31,226 | £34,457 | £34,450 | |
| Net Cash Flow | (£20,114) | (£23,201) | (£16,544) | (£9,798) | (£812) | (£1,143) | (£1,136) | (£1,129) | (£1,121) | (£1,226) | (£4,124) | £5,550 | |
| Cash Balance | £95,962 | £72,761 | £56,218 | £46,420 | £45,607 | £44,464 | £43,328 | £42,199 | £41,078 | £39,852 | £35,729 | £41,279 | |
| 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 | £116,076 | £95,962 | £72,761 | £56,218 | £46,420 | £45,607 | £44,464 | £43,328 | £42,199 | £41,078 | £39,852 | £35,729 | £41,279 |
| Accounts Receivable | £0 | £10,000 | £29,667 | £49,333 | £59,000 | £59,000 | £59,000 | £59,000 | £59,000 | £59,000 | £69,000 | £78,667 | £78,667 |
| Other Current Assets | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Current Assets | £116,076 | £105,962 | £102,428 | £105,551 | £105,420 | £104,607 | £103,464 | £102,328 | £101,199 | £100,078 | £108,852 | £114,395 | £119,946 |
| Long-term Assets | |||||||||||||
| Long-term Assets | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 |
| Accumulated Depreciation | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Long-term Assets | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 | £13,000 |
| Total Assets | £129,076 | £118,962 | £115,428 | £118,551 | £118,420 | £117,607 | £116,464 | £115,328 | £114,199 | £113,078 | £121,852 | £127,395 | £132,946 |
| 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 | £3,309 | £6,540 | £9,771 | £10,441 | £10,772 | £10,765 | £10,758 | £10,751 | £10,744 | £13,975 | £13,968 | £13,961 |
| Current Borrowing | £30,000 | £28,750 | £27,500 | £26,250 | £25,000 | £23,750 | £22,500 | £21,250 | £20,000 | £18,750 | £17,500 | £16,250 | £15,000 |
| Other Current Liabilities | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Subtotal Current Liabilities | £30,000 | £32,059 | £34,040 | £36,021 | £35,441 | £34,522 | £33,265 | £32,008 | £30,751 | £29,494 | £31,475 | £30,218 | £28,961 |
| Long-term Liabilities | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total Liabilities | £30,000 | £32,059 | £34,040 | £36,021 | £35,441 | £34,522 | £33,265 | £32,008 | £30,751 | £29,494 | £31,475 | £30,218 | £28,961 |
| Paid-in Capital | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 | £105,000 |
| Retained Earnings | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) | (£5,924) |
| Earnings | £0 | (£12,173) | (£17,688) | (£16,546) | (£16,097) | (£15,991) | (£15,877) | (£15,756) | (£15,628) | (£15,492) | (£8,699) | (£1,899) | £4,909 |
| Total Capital | £99,076 | £86,903 | £81,388 | £82,530 | £82,979 | £83,085 | £83,199 | £83,320 | £83,449 | £83,584 | £90,377 | £97,177 | £103,985 |
| Total Liabilities and Capital | £129,076 | £118,962 | £115,428 | £118,551 | £118,420 | £117,607 | £116,464 | £115,328 | £114,199 | £113,078 | £121,852 | £127,395 | £132,946 |
| Net Worth | £99,076 | £86,903 | £81,388 | £82,530 | £82,979 | £83,085 | £83,199 | £83,320 | £83,448 | £83,584 | £90,377 | £97,177 | £103,985 |