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Plan Outline
Emergency Shelters Business Plan
Transitional Housing of Pittsburgh
This sample business plan can be edited directly in Business Plan Pro software.
Financial Plan
The following sections outline important financial information.
8.1 Important Assumptions
The following table includes important financial assumptions.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 10.00% | 10.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 0.00% | 0.00% | 0.00% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
The Break-even Analysis is shown in the following table and chart.
| Break-even Analysis | |
| Monthly Revenue Break-even | £17,643 |
| Assumptions: | |
| Average Percent Variable Cost | 14% |
| Estimated Monthly Fixed Cost | £15,118 |
8.3 Projected Surplus or Deficit
The following table and charts show projected surplus and deficit.
| Surplus and Deficit | |||
| Year 1 | Year 2 | Year 3 | |
| Funding | £304,000 | £295,000 | £307,000 |
| Direct Cost | £43,500 | £41,625 | £43,485 |
| Other Costs of Funding | £0 | £0 | £0 |
| Total Direct Cost | £43,500 | £41,625 | £43,485 |
| Gross Surplus | £260,500 | £253,375 | £263,515 |
| Gross Surplus % | 85.69% | 85.89% | 85.84% |
| Expenses | |||
| Payroll | £82,800 | £141,600 | £147,600 |
| Account Name | £0 | £0 | £0 |
| Depreciation | £4,596 | £4,596 | £4,596 |
| Leased Building | £48,000 | £48,000 | £48,000 |
| Utilities | £24,000 | £24,000 | £24,000 |
| Insurance | £9,600 | £9,600 | £9,600 |
| Payroll Taxes | £12,420 | £21,240 | £22,140 |
| Other | £0 | £0 | £0 |
| Total Operating Expenses | £181,416 | £249,036 | £255,936 |
| Surplus Before Interest and Taxes | £79,084 | £4,339 | £7,579 |
| EBITDA | £83,680 | £8,935 | £12,175 |
| Interest Expense | £0 | £0 | £0 |
| Taxes Incurred | £0 | £0 | £0 |
| Net Surplus | £79,084 | £4,339 | £7,579 |
| Net Surplus/Funding | 26.01% | 1.47% | 2.47% |
8.4 Projected Cash Flow
The following table and chart illustrate projected cash flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Funding | £304,000 | £295,000 | £307,000 |
| Subtotal Cash from Operations | £304,000 | £295,000 | £307,000 |
| 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 | £304,000 | £295,000 | £307,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | £82,800 | £141,600 | £147,600 |
| Bill Payments | £129,040 | £141,071 | £146,998 |
| Subtotal Spent on Operations | £211,840 | £282,671 | £294,598 |
| 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 | £0 | £0 | £0 |
| Dividends | £0 | £0 | £0 |
| Subtotal Cash Spent | £211,840 | £282,671 | £294,598 |
| Net Cash Flow | £92,160 | £12,329 | £12,402 |
| Cash Balance | £110,160 | £122,489 | £134,891 |
8.5 Projected Balance Sheet
The following table shows the projected balance sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | £110,160 | £122,489 | £134,891 |
| Other Current Assets | £23,000 | £23,000 | £23,000 |
| Total Current Assets | £133,160 | £145,489 | £157,891 |
| Long-term Assets | |||
| Long-term Assets | £0 | £0 | £0 |
| Accumulated Depreciation | £4,596 | £9,192 | £13,788 |
| Total Long-term Assets | (£4,596) | (£9,192) | (£13,788) |
| Total Assets | £128,564 | £136,297 | £144,103 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | £8,480 | £11,874 | £12,101 |
| Current Borrowing | £0 | £0 | £0 |
| Other Current Liabilities | £0 | £0 | £0 |
| Subtotal Current Liabilities | £8,480 | £11,874 | £12,101 |
| Long-term Liabilities | £0 | £0 | £0 |
| Total Liabilities | £8,480 | £11,874 | £12,101 |
| Paid-in Capital | £45,000 | £45,000 | £45,000 |
| Accumulated Surplus/Deficit | (£4,000) | £75,084 | £79,423 |
| Surplus/Deficit | £79,084 | £4,339 | £7,579 |
| Total Capital | £120,084 | £124,423 | £132,002 |
| Total Liabilities and Capital | £128,564 | £136,297 | £144,103 |
| Net Worth | £120,084 | £124,423 | £132,002 |
8.6 Standard Ratios
The following table presents standard ratios. Transitional Housing has a Standard Industrial Classification (SIC) code: 8322.0304 - Emergency Shelters. Industry profile ratios are shown for comparison.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Funding Growth | 0.00% | -2.96% | 4.07% | 7.72% |
| Percent of Total Assets | ||||
| Other Current Assets | 17.89% | 16.87% | 15.96% | 32.31% |
| Total Current Assets | 103.57% | 106.74% | 109.57% | 56.30% |
| Long-term Assets | -3.57% | -6.74% | -9.57% | 43.70% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 6.60% | 8.71% | 8.40% | 23.57% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 28.65% |
| Total Liabilities | 6.60% | 8.71% | 8.40% | 52.22% |
| Net Worth | 93.40% | 91.29% | 91.60% | 47.78% |
| Percent of Funding | ||||
| Funding | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Surplus | 85.69% | 85.89% | 85.84% | 100.00% |
| Selling, General & Administrative Expenses | #NAME? | 84.42% | 83.37% | 78.74% |
| Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.97% |
| Surplus Before Interest and Taxes | 26.01% | 1.47% | 2.47% | 1.90% |
| Main Ratios | ||||
| Current | 15.70 | 12.25 | 13.05 | 2.18 |
| Quick | 15.70 | 12.25 | 13.05 | 1.77 |
| Total Debt to Total Assets | 6.60% | 8.71% | 8.40% | 3.01% |
| Pre-tax Return on Net Worth | 65.86% | 3.49% | 5.74% | 58.63% |
| Pre-tax Return on Assets | 61.51% | 3.18% | 5.26% | 7.27% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Surplus Margin | 26.01% | 1.47% | 2.47% | n.a |
| Return on Equity | 65.86% | 3.49% | 5.74% | n.a |
| Activity Ratios | ||||
| Accounts Payable Turnover | 16.22 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 26 | 30 | n.a |
| Total Asset Turnover | 2.36 | 2.16 | 2.13 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.07 | 0.10 | 0.09 | n.a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | £124,680 | £133,615 | £145,790 | n.a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
| Additional Ratios | ||||
| Assets to Funding | 0.42 | 0.46 | 0.47 | n.a |
| Current Debt/Total Assets | 7% | 9% | 8% | n.a |
| Acid Test | 15.70 | 12.25 | 13.05 | n.a |
| Funding/Net Worth | 2.53 | 2.37 | 2.33 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |