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Plan Outline
Nonprofit Recording Co-op Business Plan
Gamehenge Tapers Co-op
This sample business plan can be edited directly in Business Plan Pro software.
Financial Plan
The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.
7.1 Important Assumptions
The following table highlights some of the important financial assumptions for Gamehenge Tapers Co-op.
| 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 | 2.50% | 0.00% | 2.50% |
| Other | 0 | 0 | 0 |
7.2 Break-even Analysis
The Break-even Analysis shows what we need in monthly revenue to break even.
| Break-even Analysis | |
| Monthly Revenue Break-even | £1,741 |
| Assumptions: | |
| Average Percent Variable Cost | 82% |
| Estimated Monthly Fixed Cost | £319 |
7.3 Projected Surplus or Deficit
THe following table will indicate projected surplus or deficit.
| Surplus and Deficit | |||
| Year 1 | Year 2 | Year 3 | |
| Funding | £41,094 | £41,545 | £42,154 |
| Direct Cost | £33,565 | £37,391 | £37,939 |
| Other | £0 | £0 | £0 |
| Total Direct Cost | £33,565 | £37,391 | £37,939 |
| Gross Surplus | £7,529 | £4,155 | £4,215 |
| Gross Surplus % | 18.32% | 10.00% | 10.00% |
| Expenses | |||
| Payroll | £0 | £0 | £0 |
| Sales and Marketing and Other Expenses | £600 | £600 | £600 |
| Depreciation | £228 | £228 | £228 |
| Leased Equipment | £0 | £0 | £0 |
| Utilities | £0 | £0 | £0 |
| Insurance | £600 | £600 | £600 |
| Rent | £2,400 | £2,400 | £2,400 |
| Payroll Taxes | £0 | £0 | £0 |
| Other | £0 | £0 | £0 |
| Total Operating Expenses | £3,828 | £3,828 | £3,828 |
| Surplus Before Interest and Taxes | £3,701 | £327 | £387 |
| EBITDA | £3,929 | £555 | £615 |
| Interest Expense | £0 | £0 | £0 |
| Taxes Incurred | (£48) | £0 | £10 |
| Net Surplus | £3,749 | £327 | £378 |
| Net Surplus/Funding | 9.12% | 0.79% | 0.90% |
7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Funding | £41,094 | £41,545 | £42,154 |
| Subtotal Cash from Operations | £41,094 | £41,545 | £42,154 |
| 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 | £41,094 | £41,545 | £42,154 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | £0 | £0 | £0 |
| Bill Payments | £36,615 | £42,634 | £41,602 |
| Subtotal Spent on Operations | £36,615 | £42,634 | £41,602 |
| 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 | £36,615 | £42,634 | £41,602 |
| Net Cash Flow | £4,479 | (£1,089) | £552 |
| Cash Balance | £4,729 | £3,641 | £4,193 |
7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | £4,729 | £3,641 | £4,193 |
| Inventory | £4,083 | £4,548 | £4,615 |
| Other Current Assets | £0 | £0 | £0 |
| Total Current Assets | £8,812 | £8,189 | £8,808 |
| Long-term Assets | |||
| Long-term Assets | £1,150 | £1,150 | £1,150 |
| Accumulated Depreciation | £228 | £456 | £684 |
| Total Long-term Assets | £922 | £694 | £466 |
| Total Assets | £9,734 | £8,883 | £9,274 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | £4,585 | £3,407 | £3,420 |
| Current Borrowing | £0 | £0 | £0 |
| Other Current Liabilities | £0 | £0 | £0 |
| Subtotal Current Liabilities | £4,585 | £3,407 | £3,420 |
| Long-term Liabilities | £0 | £0 | £0 |
| Total Liabilities | £4,585 | £3,407 | £3,420 |
| Paid-in Capital | £2,000 | £2,000 | £2,000 |
| Accumulated Surplus/Deficit | (£600) | £3,149 | £3,476 |
| Surplus/Deficit | £3,749 | £327 | £378 |
| Total Capital | £5,149 | £5,476 | £5,853 |
| Total Liabilities and Capital | £9,734 | £8,883 | £9,274 |
| Net Worth | £5,149 | £5,476 | £5,853 |