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Event Planning Business Plan

Corporate Retreat Professionals

This sample business plan can be edited directly in Business Plan Pro software.

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Financial Plan

The following subtopics will provide financial information.

7.1 Important Assumptions

See the following table for the company's general 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 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

This Break-even Analysis projects the figure of approximately £10,000 as the monthly sales Break-even point.

Break-even Analysis
Monthly Revenue Break-even £10,174
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost £7,660

7.3 Projected Profit and Loss

The following table indicates the projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales £94,366 £188,005 £214,813
Direct Cost of Sales £23,314 £32,065 £38,130
Other £0 £0 £0
Total Cost of Sales £23,314 £32,065 £38,130
Gross Margin £71,052 £155,940 £176,683
Gross Margin % 75.29% 82.94% 82.25%
Expenses
Payroll £60,700 £73,200 £80,000
Sales and Marketing and Other Expenses £1,100 £1,200 £1,200
Depreciation £1,668 £1,668 £1,664
Leased Equipment £0 £0 £0
Utilities £1,200 £1,200 £1,200
Insurance £2,400 £2,400 £2,400
Rent £14,400 £14,400 £14,400
Payroll Taxes £10,455 £15,030 £16,050
Other £0 £0 £0
Total Operating Expenses £91,923 £109,098 £116,914
Profit Before Interest and Taxes (£20,871) £46,842 £59,769
EBITDA (£19,203) £48,510 £61,433
Interest Expense £0 £0 £0
Taxes Incurred £0 £11,711 £15,191
Net Profit (£20,871) £35,132 £44,578
Net Profit/Sales -22.12% 18.69% 20.75%

7.4 Projected Cash Flow

The following table indicates projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales £23,592 £47,001 £53,703
Cash from Receivables £49,432 £119,826 £155,047
Subtotal Cash from Operations £73,023 £166,827 £208,750
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 £12,000 £0 £0
Subtotal Cash Received £85,023 £166,827 £208,750
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending £60,700 £73,200 £80,000
Bill Payments £50,527 £79,651 £88,849
Subtotal Spent on Operations £111,227 £152,851 £168,849
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 £111,227 £152,851 £168,849
Net Cash Flow (£26,203) £13,976 £39,901
Cash Balance £15,397 £29,372 £69,273

7.5 Projected Balance Sheet

The following table indicates the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash £15,397 £29,372 £69,273
Accounts Receivable £21,343 £42,521 £48,584
Inventory £4,250 £5,846 £6,952
Other Current Assets £0 £0 £0
Total Current Assets £40,990 £77,739 £124,809
Long-term Assets
Long-term Assets £5,000 £5,000 £5,000
Accumulated Depreciation £1,668 £3,336 £5,000
Total Long-term Assets £3,332 £1,664 £0
Total Assets £44,322 £79,403 £124,809
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable £6,593 £6,543 £7,371
Current Borrowing £0 £0 £0
Other Current Liabilities £0 £0 £0
Subtotal Current Liabilities £6,593 £6,543 £7,371
Long-term Liabilities £0 £0 £0
Total Liabilities £6,593 £6,543 £7,371
Paid-in Capital £62,000 £62,000 £62,000
Retained Earnings (£3,400) (£24,271) £10,861
Earnings (£20,871) £35,132 £44,578
Total Capital £37,729 £72,861 £117,438
Total Liabilities and Capital £44,322 £79,403 £124,809
Net Worth £37,729 £72,861 £117,438
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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 25.42% 25.00% 25.42%
Other 0 0 0
Break-even Analysis
Monthly Revenue Break-even £10,174
Assumptions:
Average Percent Variable Cost 25%
Estimated Monthly Fixed Cost £7,660
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales £94,366 £188,005 £214,813
Direct Cost of Sales £23,314 £32,065 £38,130
Other £0 £0 £0
Total Cost of Sales £23,314 £32,065 £38,130
Gross Margin £71,052 £155,940 £176,683
Gross Margin % 75.29% 82.94% 82.25%
Expenses
Payroll £60,700 £73,200 £80,000
Sales and Marketing and Other Expenses £1,100 £1,200 £1,200
Depreciation £1,668 £1,668 £1,664
Leased Equipment £0 £0 £0
Utilities £1,200 £1,200 £1,200
Insurance £2,400 £2,400 £2,400
Rent £14,400 £14,400 £14,400
Payroll Taxes £10,455 £15,030 £16,050
Other £0 £0 £0
Total Operating Expenses £91,923 £109,098 £116,914
Profit Before Interest and Taxes (£20,871) £46,842 £59,769
EBITDA (£19,203) £48,510 £61,433
Interest Expense £0 £0 £0
Taxes Incurred £0 £11,711 £15,191
Net Profit (£20,871) £35,132 £44,578
Net Profit/Sales -22.12% 18.69% 20.75%
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales £23,592 £47,001 £53,703
Cash from Receivables £49,432 £119,826 £155,047
Subtotal Cash from Operations £73,023 £166,827 £208,750
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 £12,000 £0 £0
Subtotal Cash Received £85,023 £166,827 £208,750
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending £60,700 £73,200 £80,000
Bill Payments £50,527 £79,651 £88,849
Subtotal Spent on Operations £111,227 £152,851 £168,849
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 £111,227 £152,851 £168,849
Net Cash Flow (£26,203) £13,976 £39,901
Cash Balance £15,397 £29,372 £69,273
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash £15,397 £29,372 £69,273
Accounts Receivable £21,343 £42,521 £48,584
Inventory £4,250 £5,846 £6,952
Other Current Assets £0 £0 £0
Total Current Assets £40,990 £77,739 £124,809
Long-term Assets
Long-term Assets £5,000 £5,000 £5,000
Accumulated Depreciation £1,668 £3,336 £5,000
Total Long-term Assets £3,332 £1,664 £0
Total Assets £44,322 £79,403 £124,809
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable £6,593 £6,543 £7,371
Current Borrowing £0 £0 £0
Other Current Liabilities £0 £0 £0
Subtotal Current Liabilities £6,593 £6,543 £7,371
Long-term Liabilities £0 £0 £0
Total Liabilities £6,593 £6,543 £7,371
Paid-in Capital £62,000 £62,000 £62,000
Retained Earnings (£3,400) (£24,271) £10,861
Earnings (£20,871) £35,132 £44,578
Total Capital £37,729 £72,861 £117,438
Total Liabilities and Capital £44,322 £79,403 £124,809
Net Worth £37,729 £72,861 £117,438