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BUSINESS PLAN
POLISH SHOP BASIA
Legal Page
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This is a business plan. It does not imply an offering of securities.
Table of Contents
Page 1
1.0 Executive Summary .................................................................................................................... 1
Chart: Highlights .......................................................................................................................... 2
1.1 Objectives .................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 3
1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
2.2 Start-up Summary ................................................................................................................... 4
Table: Start-up .............................................................................................................................. 4
Chart: Start-up ............................................................................................................................. 4
3.0 Products and Services ................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
5.1 SWOT Analysis .......................................................................................................................... 5
5.1.1 Strengths ............................................................................................................................. 5
5.1.2 Weaknesses ........................................................................................................................ 5
5.1.3 Opportunities ..................................................................................................................... 6
5.1.4 Threats ................................................................................................................................. 6
5.2 Competitive Edge ..................................................................................................................... 6
5.3 Marketing Strategy .................................................................................................................. 6
5.4 Sales Strategy ........................................................................................................................... 7
5.4.1 Sales Forecast.................................................................................................................... 7
Table: Sales Forecast ............................................................................................................. 7
Chart: Sales Monthly .............................................................................................................. 7
Chart: Sales by Year ............................................................................................................... 8
6.0 Management Summary .............................................................................................................. 8
6.1 Personnel Plan ........................................................................................................................... 8
Table: Personnel ........................................................................................................................... 8
7.0 Financial Plan ................................................................................................................................. 9
7.1 Start-up Funding ...................................................................................................................... 9
Table: Start-up Funding ............................................................................................................ 9
7.2 Break-even Analysis .............................................................................................................. 10
Table: Break-even Analysis .................................................................................................... 10
Chart: Break-even Analysis ................................................................................................... 10
7.4 Projected Profit and Loss ..................................................................................................... 11
Table: Profit and Loss ............................................................................................................... 11
Chart: Profit Monthly ................................................................................................................ 12
Chart: Profit Yearly .................................................................................................................... 12
Chart: Gross Margin Monthly ................................................................................................. 13
Chart: Gross Margin Yearly .................................................................................................... 13
7.5 Projected Cash Flow .............................................................................................................. 14
Table: Cash Flow ........................................................................................................................ 14
Chart: Cash .................................................................................................................................. 15
7.6 Projected Balance Sheet ...................................................................................................... 15
Table: Balance Sheet ................................................................................................................ 15
Table: Sales Forecast ......................................................................................................................... 1
Table of Contents
Page 2
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 5
Table: Cash Flow .................................................................................................................................. 5
Table: Balance Sheet .......................................................................................................................... 7
Table: Balance Sheet .......................................................................................................................... 7
Sklep Basia Business Plan
Page 1
1.0 Executive Summary
Polish Shop Basia is located in the heart of Willesden Green - highly Polish-populated area in
the North West London. The offer of the company includes Polish Shop & Take-away - big
variety of fresh products and homemade meals:
� General food products
� Fresh bakery
� Polish meat and milk products
� Fruit and vegetables
� Alcohol & Tobacco
� Cosmetics & drugs
� Confectionery and desserts
Additionally the shop offers worldwide money transfers for its customers.
Strategic Plan of set up and development of the company assumes that thanks to employing
different tools in order to attract customers, the business will be an efficient and successful
enterprise in a short time period. By providing customers with the highest quality of services
and variety of offer as well as great and friendly atmosphere, the company will achieve high
position on the local, regional and in the future also national market. Additionally, our main
competitive advantages include great location, friendly and enchanting interior and competent service.
We believe that Polish Shop Basia will maintain its current position as well as achieve further
achieve prestige and recognition among its customers who will appreciate the unique soul of the place.
Sklep Basia Business Plan
Page 2
Chart: Highlights
Sales
Gross Margin
Net Profit
£0
£100,000
£200,000
£300,000
£400,000
£500,000
£600,000
£700,000
£800,000
£900,000
£1,000,000
£1,100,000
Year 1 Year 2 Year 3
Highlights
1.1 Objectives
The owner of the restaurant is a person who has clear objectives and always tries to achieve
set out targets. The current objective, as well as a life dream is to continue the high standard
and further develop the already existing Polish Shop Basia. Based on the previous owner
experience and current profitable nature of the business, the owners believe that by allowing the business to grow they will achieve both the financial and personal targets.
The Polish Shop Basia offers a range of products and services targeting different consumer group. The range of products on offer includes:
� General Polish Food products
� Original Polish alcohol & tobacco
� Fruit and vegetables
� Fresh Bakery ( Including in-house baked buns)
� Meat and milk products
� cosmetics and drugs
Apart from that the shop also offers a range of money transfer possibilities to all over the world.
After receiving the licence from council, the owners are also planning to extend the shop and
create a kitchen for preparing home-made Polish food to be sold to the individuals as well as a
wholesale to other Polish shops.
Sklep Basia Business Plan
Page 3
To summarise, the main objectives of the company are:
� Sale of high quality, fresh Polish food, meats and confectionery products
� Offering Money transfer services to various customers
� Introduction and development of fresh homemade food production and wholesale
� Improvement of services and growth of sales in the first year of existing of a company and constant growth of profit margin
1.2 Mission
Mission of the company is to continue selling Polish and International products, so much missed
by Polish emigrants living in the UK as well as other clients. The company will offer customers
the highest quality of products at reasonable prices.
1.3 Keys to Success
1.3 Keys to Success
� High quality products with unique Polish taste
� Guaranteed daily fresh products
� Competitive prices
� Good location - Willesden Green area with high number of Polish population
� For Polish community -great opportunity to buy polish products
� Getting new contracts with wholesalers and up-keeping of profitable contracts, which will
guarantee lower prices and higher profit margin
� Providing home made food and getting contracts for distribution among other Polish
2.0 Company Summary
Owner of the company – Ewa Abramczyk - Sadowska, experienced business owner in the retail
area. Having previously owned various retail businesses in Poland, she believes that her
experience and passion will make the business a great success. The legal status of the firm is
Limited company.
Sklep Basia Business Plan
Page 4
2.2 Start-up Summary
The following table and chart illustrates projected initial start-up costs for the firm.
Table: Start-up
Start-up
Requirements
Start-up Expenses Legal £3,500 Products/ Purchases £5,000 Insurance £1,000 Rent Deposit £2,880 Licence £600 Total Start-up Expenses £12,980
Start-up Assets Cash Required £0 Other Current Assets £85,000 Fixed Assets £0 Total Assets £85,000
Total Requirements £97,980
Chart: Start-up
Sklep Basia Business Plan
Page 5
3.0 Products and Services
The offer of the Shop includes the following products and services:
� Polish food products and confectionery
� Polish alcohols
� Fresh fruit and vegetables
� Fresh bakery
� Cosmetics and drugs
� Meat and milk products
� Cigarettes & tobacco
Additionally at the end of calendar year the owners are also planning to open an in house food
production and delivery to other shops and companies.
4.0 Market Analysis Summary
The customer base will include both Polish & English-speaking members of local community, as
well as those from other parts of London looking for fresh and tasty food. The further
development of in-house kitchen and take away will enable both individuals and other shop
owners to purchase homemade food on daily basis.
5.1 SWOT Analysis
5.1.1 Strengths
The main Strength of the company is wide experience of its employees in the foodstuff field,
ability of properly presenting and selling the products and quality customer service and high
interpersonal and communicative skills. Also previous experience of the owners in running a
business will have a key role in making the company a success. Another Strength is the location
of the business in a very attractive area and the premises itself adapted to this kind of the
business. Also the existing customer base of the shop will have significant impact on its future wellbeing and development.
5.1.2 Weaknesses
Limited financial resources are the main weakness of the business.
Sklep Basia Business Plan
Page 6
5.1.3 Opportunities
Big chances for success result from growing number of Polish society in the area and positive
initial response of the remaining part of society thanks to high quality and reasonable pricing of
offered products. Opportunities of quick and effective marketing actions can attract a large
number of customers which will determine company's success.
Other opportunities include:
� Receiving more financial means for investment
� Growth of range of services by entering local catering market
� Constant growth of demand for those services and products
� Better condition of the material situation of the society
� Creating positive image of the company
� Keeping prices at the steady level
� High quality of offered services
� Expansion of services after receiving the licence for the food production
5.1.4 Threats
� Reserved approach of other nationals from trying out new flavours
� Entering the market by new or big growth of existing competitors
� Lack of sufficient funds for whole investment
� Possibility of losing existing customers
5.2 Competitive Edge
Our competitive edge is a combination of our unique services, outstanding location, and our
interaction with our clients. By depending on the existing customer base as well as building up
a new one we believe that we can achieve the success matching expectations of this business
plan. Our clients will come to depend on our unique services and products.
5.3 Marketing Strategy
As Polish Shop Basia is an existing establishment with a significant number of customer base so
not too much investment in the marketing and advertising would be needed. Only in the third
month of trading, when the owners are planning to introduce home made food available for
take away, they will conduct a small marketing campaign to promote new services. Polish Shop
Basia plans to advertise its new services through newspaper and magazine articles, focusing
primarily on entertainment and lifestyle publications as well as contacting directly shop owners
and ordering teams. In addition the establishment will run ads in local journals and plans to put
up four billboard advertisements as well as Polish-oriented media. Believing that mouth-to-
mouth marketing is one of the main sources of customers the owners will build a strong
reputation and create customer loyalty.
Sklep Basia Business Plan
Page 7
5.4 Sales Strategy
As the table shows, Polish Shop Basia plans to deliver sales of approximately £350,000 in the
current year, £390 thousand in the second year, and £440,000 in the third year following this
plan.
5.4.1 Sales Forecast
The following chart and table show our present sales forecast. We project sales to grow
approximately 10 percent in the first year, then increase again by ten percent in the second
year followed up by another ten percent growth in third year.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales General Food Products £54,900 £60,000 £66,500 Meat and Milk Products £305,000 £335,000 £370,000 Bakery Products £11,700 £13,000 £15,000 Fruit and vegetables £4,250 £5,000 £6,000 Alcohol & Tobacco £53,500 £59,000 £65,000 Cosmetics and drugs £6,000 £6,600 £7,300 Money Transfer £44,500 £49,000 £55,000 Home made food £410,000 £450,000 £500,000 Total Sales £889,850 £977,600 £1,084,800
Direct Cost of Sales Year 1 Year 2 Year 3 Shop goods £174,000 £190,000 £210,000 Take-away ingredients £180,000 £200,000 £230,000 Subtotal Direct Cost of Sales £354,000 £390,000 £440,000
Chart: Sales Monthly
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sklep Basia Business Plan
Page 8
Chart: Sales by Year
General Food Products
Meat and Milk Products
Bakery Products
Fruit and vegetables
Alcohol
Cosmetics and drugs
Money Transfer
Home made food
£0
£100,000
£200,000
£300,000
£400,000
£500,000
£600,000
£700,000
£800,000
£900,000
£1,000,000
£1,100,000
Year 1 Year 2 Year 3
Sales by Year
6.0 Management Summary
GOOD FOOD management consists of the following full-time employees:
� Front House sales people
� 2 Chefs
� 2 Kitchen Porters
There will also be a part time driver employed for the delivery services.
The book-keeping and accounting services will be outsourced to third party company or individual.
6.1 Personnel Plan
The following table shows the Personnel Plan for Polish Shop Basia.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Sales Assistants £57,600 £64,000 £70,000 Chef £23,400 £28,000 £35,000 Kitchen Porter £19,800 £25,000 £30,000 Delivery Driver £4,500 £6,000 £8,000
Sklep Basia Business Plan
Page 9
Total People 9 9 9
Total Payroll £105,300 £123,000 £143,000
7.0 Financial Plan
The following subtopics help present the financial plan for Polish Shop Basia.
7.1 Start-up Funding
Polish Shop Basia start-up costs are detailed above, in the Start-up Table. The following table shows how these start-up costs will be funded by owner and investor capital.
Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund £12,980 Start-up Assets to Fund £85,000 Total Funding Required £97,980
Assets Non-cash Assets from Start-up £85,000 Cash Requirements from Start-up £0 Additional Cash Raised £0 Cash Balance on Starting Date £0 Total Assets £85,000
Liabilities and Capital
Liabilities Current Borrowing £0 Fixed Liabilities £0 Accounts Payable (Outstanding Bills) £0 Other Current Liabilities (interest-free) £0 Total Liabilities £0
Capital
Planned Investment Owner £0 Investor £0 Additional Investment Requirement £97,980 Total Planned Investment £97,980
Loss at Start-up (Start-up Expenses) (£12,980) Total Capital £85,000
Total Capital and Liabilities £85,000
Total Funding £97,980
Sklep Basia Business Plan
Page 10
7.2 Break-even Analysis
Our break-even analysis is based on our cost and price structure at present. As we grow, the fixed costs will grow in proportion to our employee numbers.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even £17,085
Assumptions: Average Percent Variable Cost 40% Estimated Monthly Fixed Cost £10,288
Chart: Break-even Analysis
£0
£2,000
£4,000
£6,000
£8,000
£10,000
(£2,000)
(£4,000)
(£6,000)
(£8,000)
(£10,000)
£0
£3,000
£6,000
£9,000
£12,000
£15,000
£18,000
£21,000
£24,000
£27,000
£30,000
£33,000
Break-even Analysis
Sklep Basia Business Plan
Page 11
7.4 Projected Profit and Loss
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales £889,850 £977,600 £1,084,800 Direct Cost of Sales £354,000 £390,000 £440,000 Other Costs of Sales £0 £0 £0 Total Cost of Sales £354,000 £390,000 £440,000
Gross Margin £535,850 £587,600 £644,800 Gross Margin % 60.22% 60.11% 59.44%
Expenses Payroll £105,300 £123,000 £143,000 Marketing/Promotion £700 £500 £500 Depreciation £0 £0 £0 Rent £11,520 £12,000 £13,000 Rates £2,940 £3,000 £3,000 Utilities £2,640 £3,000 £3,500 Telephone and Broadband £360 £500 £700
Total Operating Expenses £123,460 £142,000 £163,700
Profit Before Interest and Taxes £412,390 £445,600 £481,100 EBITDA £412,390 £445,600 £481,100 Interest Expense £0 £0 £0 Taxes Incurred £123,717 £133,680 £144,330
Other Income Other Income Account Name £0 £0 £0 Other Income Account Name £0 £0 £0 Total Other Income £0 £0 £0
Other Expense Other Expense Account Name £0 £0 £0 Other Expense Account Name £0 £0 £0 Total Other Expense £0 £0 £0
Net Other Income £0 £0 £0 Net Profit £288,673 £311,920 £336,770 Net Profit/Sales 32.44% 31.91% 31.04%
Sklep Basia Business Plan
Page 12
Chart: Profit Monthly
£0
£4,000
£8,000
£12,000
£16,000
£20,000
£24,000
£28,000
£32,000
£36,000
£40,000
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Profit Monthly
Chart: Profit Yearly
£0
£40,000
£80,000
£120,000
£160,000
£200,000
£240,000
£280,000
£320,000
Year 1 Year 2 Year 3
Profit Yearly
Sklep Basia Business Plan
Page 13
Chart: Gross Margin Monthly
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Gross Margin Monthly
Chart: Gross Margin Yearly
£0
£100,000
£200,000
£300,000
£400,000
£500,000
£600,000
£700,000
Year 1 Year 2 Year 3
Gross Margin Yearly
Sklep Basia Business Plan
Page 14
7.5 Projected Cash Flow
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations Cash Sales £889,850 £977,600 £1,084,800 Subtotal Cash from Operations £889,850 £977,600 £1,084,800
Additional Cash Received Non Operating (Other) Income £0 £0 £0 VAT Received (Output Tax) £133,478 £146,640 £162,720 VAT Repayments £0 £0 £0 New Current Borrowing £0 £0 £0 New Other Liabilities (interest-free) £0 £0 £0 New Fixed Liabilities £0 £0 £0 Sales of Other Current Assets £0 £0 £0 Sales of Fixed Assets £0 £0 £0 New Investment Received £0 £0 £0 Subtotal Cash Received £1,023,328 £1,124,240 £1,247,520
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations Cash Spending £601,177 £665,680 £748,030 Bill Payments £0 £0 £0 Subtotal Spent on Operations £601,177 £665,680 £748,030
Additional Cash Spent Non Operating (Other) Expense £0 £0 £0 VAT Paid Out (Input Tax) £54,969 £60,425 £68,095 VAT Payments £70,961 £93,763 £94,625 Principal Repayment of Current Borrowing £0 £0 £0 Other Liabilities Principal Repayment £0 £0 £0 Fixed Liabilities Principal Repayment £0 £0 £0 Purchase Other Current Assets £0 £0 £0 Purchase Fixed Assets £0 £0 £0 Dividends £0 £0 £0 Subtotal Cash Spent £727,107 £819,868 £910,750
Net Cash Flow £296,221 £304,372 £336,770 Cash Balance £296,221 £600,593 £937,363
Sklep Basia Business Plan
Page 15
Chart: Cash
Net Cash Flow
Cash Balance
£0
£30,000
£60,000
£90,000
£120,000
£150,000
£180,000
£210,000
£240,000
£270,000
£300,000
Mo
nth
1
Mo
nth
2
Mo
nth
3
Mo
nth
4
Mo
nth
5
Mo
nth
6
Mo
nth
7
Mo
nth
8
Mo
nth
9
Mo
nth
1
0
Mo
nth
1
1
Mo
nth
1
2
Cash
7.6 Projected Balance Sheet
The table shows the annual balance sheet results, with a healthy projected increase in net
worth. Detailed monthly projections are in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets Cash £296,221 £600,593 £937,363 Other Current Assets £85,000 £85,000 £85,000 Total Current Assets £381,221 £685,593 £1,022,363
Fixed Assets Fixed Assets £0 £0 £0 Accumulated Depreciation £0 £0 £0 Total Fixed Assets £0 £0 £0 Total Assets £381,221 £685,593 £1,022,363
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities Accounts Payable £0 £0 £0 Current Borrowing £0 £0 £0 Other Current Liabilities £7,548 £0 £0 Subtotal Current Liabilities £7,548 £0 £0
Sklep Basia Business Plan
Page 16
Fixed Liabilities £0 £0 £0 Total Liabilities £7,548 £0 £0
Paid-in Capital £97,980 £97,980 £97,980 Retained Earnings (£12,980) £275,693 £587,613 Earnings £288,673 £311,920 £336,770 Total Capital £373,673 £685,593 £1,022,363 Total Liabilities and Capital £381,221 £685,593 £1,022,363
Net Worth £373,673 £685,593 £1,022,363
Appendix
Page 1
Table: Sales Forecast
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 VAT Rate General Food Products 15.00% £3,200 £3,200 £4,000 £6,000 £5,000 £4,000 £4,500 £5,000 £5,000 £5,000 £5,000 £5,000 Meat and Milk Products 15.00% £20,000 £20,000 £25,000 £35,000 £25,000 £20,000 £30,000 £30,000 £25,000 £25,000 £25,000 £25,000 Bakery Products 15.00% £900 £900 £900 £1,400 £1,000 £900 £950 £950 £950 £950 £950 £950 Fruit and vegetables 15.00% £300 £300 £300 £500 £400 £350 £350 £350 £350 £350 £350 £350 Alcohol & Tobacco 15.00% £4,000 £4,000 £4,000 £6,000 £5,000 £4,000 £4,500 £4,500 £4,500 £4,000 £4,500 £4,500 Cosmetics and drugs 15.00% £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 Money Transfer 15.00% £3,000 £3,000 £3,000 £5,000 £3,000 £2,500 £4,000 £4,000 £5,000 £4,000 £4,000 £4,000 Home made food 15.00% £0 £0 £0 £50,000 £45,000 £45,000 £45,000 £45,000 £45,000 £45,000 £45,000 £45,000 Total Sales £31,900 £31,900 £37,700 £104,400 £84,900 £77,250 £89,800 £90,300 £86,300 £84,800 £85,300 £85,300
Direct Cost of Sales VAT Rate Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Shop goods 15.00% £14,000 £14,000 £14,000 £18,000 £16,000 £14,000 £14,000 £14,000 £14,000 £14,000 £14,000 £14,000 Take-away ingredients 15.00% £0 £0 £0 £20,000 £20,000 £20,000 £20,000 £20,000 £20,000 £20,000 £20,000 £20,000 Subtotal Direct Cost of Sales £14,000 £14,000 £14,000 £38,000 £36,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000
Appendix
Page 2
Table: Personnel
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
Sales Assistants £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800 £4,800
Chef £0 £0 £0 £2,600 £2,600 £2,600 £2,600 £2,600 £2,600 £2,600 £2,600 £2,600
Kitchen Porter £0 £0 £0 £2,200 £2,200 £2,200 £2,200 £2,200 £2,200 £2,200 £2,200 £2,200
Delivery Driver £0 £0 £0 £500 £500 £500 £500 £500 £500 £500 £500 £500
Total People 4 4 4 9 9 9 9 9 9 9 9 9
Total Payroll £4,800 £4,800 £4,800 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100
Appendix
Page 3
Table: Profit and Loss
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 VAT Rate £31,900 £31,900 £37,700 £104,400 £84,900 £77,250 £89,800 £90,300 £86,300 £84,800 £85,300 £85,300 Direct Cost of Sales £14,000 £14,000 £14,000 £38,000 £36,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000
Other Costs of Sales 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Cost of Sales
£14,000 £14,000 £14,000 £38,000 £36,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000 £34,000
Gross Margin £17,900 £17,900 £23,700 £66,400 £48,900 £43,250 £55,800 £56,300 £52,300 £50,800 £51,300 £51,300
Gross Margin % 56.11% 56.11% 62.86% 63.60% 57.60% 55.99% 62.14% 62.35% 60.60% 59.91% 60.14% 60.14%
Expenses VAT Rate Payroll
£4,800 £4,800 £4,800 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100 £10,100
Marketing/Promotion 15.00% £0 £0 £0 £500 £100 £100 £0 £0 £0 £0 £0 £0 Depreciation £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Rent 15.00% £960 £960 £960 £960 £960 £960 £960 £960 £960 £960 £960 £960 Rates 0.00% £245 £245 £245 £245 £245 £245 £245 £245 £245 £245 £245 £245 Utilities 0.00% £220 £220 £220 £220 £220 £220 £220 £220 £220 £220 £220 £220 Telephone and Broadband 10.00% £30 £30 £30 £30 £30 £30 £30 £30 £30 £30 £30 £30
Total Operating Expenses VAT Rate £6,255 £6,255 £6,255 £12,055 £11,655 £11,655 £11,555 £11,555 £11,555 £11,555 £11,555 £11,555
Profit Before Interest and Taxes £11,645 £11,645 £17,445 £54,345 £37,245 £31,595 £44,245 £44,745 £40,745 £39,245 £39,745 £39,745
EBITDA £11,645 £11,645 £17,445 £54,345 £37,245 £31,595 £44,245 £44,745 £40,745 £39,245 £39,745 £39,745
Interest Expense £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Taxes Incurred £3,494 £3,494 £5,234 £16,304 £11,174 £9,479 £13,274 £13,424 £12,224 £11,774 £11,924 £11,924
Other Income
Other Income Account Name 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other Income Account Name 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Other Income £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Other Expense Other Expense Account Name 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other Expense Account Name 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Other Expense £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Net Other Income £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Net Profit
£8,152 £8,152 £12,212 £38,042 £26,072 £22,117 £30,972 £31,322 £28,522 £27,472 £27,822 £27,822
Net Profit/Sales 25.55% 25.55% 32.39% 36.44% 30.71% 28.63% 34.49% 34.69% 33.05% 32.40% 32.62% 32.62%
Appendix
Page 4
Appendix
Page 5
Table: Cash Flow
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 £31,900 £31,900 £37,700 £104,400 £84,900 £77,250 £89,800 £90,300 £86,300 £84,800 £85,300 £85,300
Subtotal Cash from Operations £31,900 £31,900 £37,700 £104,400 £84,900 £77,250 £89,800 £90,300 £86,300 £84,800 £85,300 £85,300
Additional Cash Received VAT Rate
Non Operating (Other) Income £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
VAT Received (Output Tax) £4,785 £4,785 £5,655 £15,660 £12,735 £11,588 £13,470 £13,545 £12,945 £12,720 £12,795 £12,795
VAT Repayments £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 Fixed Liabilities £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Sales of Other Current Assets 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Sales of Fixed Assets 15.00% £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 £36,685 £36,685 £43,355 £120,060 £97,635 £88,838 £103,270 £103,845 £99,245 £97,520 £98,095 £98,095
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 £23,749 £23,749 £25,489 £66,359 £58,829 £55,134 £58,829 £58,979 £57,779 £57,329 £57,479 £57,479
Bill Payments £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Subtotal Spent on Operations
£23,749 £23,749 £25,489 £66,359 £58,829 £55,134 £58,829 £58,979 £57,779 £57,329 £57,479 £57,479
Additional Cash Spent VAT Rate Non Operating (Other) Expense £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
VAT Paid Out (Input Tax) £2,247 £2,247 £2,247 £5,922 £5,562 £5,262 £5,247 £5,247 £5,247 £5,247 £5,247 £5,247
VAT Payments £0 £2,538 £2,538 £3,408 £9,738 £7,173 £6,326 £8,223 £8,298 £7,698 £7,473 £7,548
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
Fixed Liabilities Principal Repayment £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
Purchase Other Current Assets 15.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Purchase Fixed Assets 15.00% £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 £25,996 £28,534 £30,274 £75,689 £74,129 £67,569 £70,401 £72,449 £71,324 £70,274 £70,199 £70,274
Appendix
Page 6
Net Cash Flow £10,690 £8,152 £13,082 £44,372 £23,507 £21,269 £32,869 £31,397 £27,922 £27,247 £27,897 £27,822
Cash Balance £10,690 £18,841 £31,923 £76,294 £99,801 £121,070 £153,939 £185,335 £213,257 £240,503 £268,400 £296,221
Appendix
Page 7
Table: Balance Sheet
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 £0 £10,690 £18,841 £31,923 £76,294 £99,801 £121,070 £153,939 £185,335 £213,257 £240,503 £268,400 £296,221 Other Current Assets £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 £85,000 Total Current Assets £85,000 £95,690 £103,841 £116,923 £161,294 £184,801 £206,070 £238,939 £270,335 £298,257 £325,503 £353,400 £381,221
Fixed Assets
Fixed 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 Fixed Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Assets £85,000 £95,690 £103,841 £116,923 £161,294 £184,801 £206,070 £238,939 £270,335 £298,257 £325,503 £353,400 £381,221
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 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Current Borrowing £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other Current Liabilities £0 £2,538 £2,538 £3,408 £9,738 £7,173 £6,326 £8,223 £8,298 £7,698 £7,473 £7,548 £7,548 Subtotal Current Liabilities £0 £2,538 £2,538 £3,408 £9,738 £7,173 £6,326 £8,223 £8,298 £7,698 £7,473 £7,548 £7,548
Fixed Liabilities £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Liabilities £0 £2,538 £2,538 £3,408 £9,738 £7,173 £6,326 £8,223 £8,298 £7,698 £7,473 £7,548 £7,548
Paid-in Capital £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 £97,980 Retained Earnings (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) (£12,980) Earnings £0 £8,152 £16,303 £28,515 £66,556 £92,628 £114,744 £145,716 £177,037 £205,559 £233,030 £260,852 £288,673 Total Capital £85,000 £93,152 £101,303 £113,515 £151,556 £177,628 £199,744 £230,716 £262,037 £290,559 £318,030 £345,852 £373,673 Total Liabilities and Capital £85,000 £95,690 £103,841 £116,923 £161,294 £184,801 £206,070 £238,939 £270,335 £298,257 £325,503 £353,400 £381,221
Net Worth £85,000 £93,152 £101,303 £113,515 £151,556 £177,628 £199,744 £230,716 £262,037 £290,559 £318,030 £345,852 £373,673
