Business Support Insurance Business Plan - Syamsul


1. Executive Summary

Ideal Business Support is a full-service support agency for the insurance industry. Ideal offers a wide range of support services tailored for insurance agents. Ideal will specialize on a few offerings, but can do almost anything. While the support service market is competitive, most companies are generalists. Ideal will stand out by concentrating on the insurance niche.
Ideal has two strong competitive advantages. The first is industry knowledge of insurance. Sarah Helpinghand, the owner, spent five years previous to Ideal working as an insurance agent. This experience is priceless. Additionally, the value of networking based on Sarah's previous insurance relationships will give Ideal a large leg up on the competition.
Lastly, Sarah will be designing an intensive training program to share her intellectual capital regarding the insurance industry with the rest of her company. All employees with go through this training.
Ideal is projected to reach profitability by month 11 and will have modest net profits by year three.

1.1 Mission

Ideal Business Support's mission is to provide the highest quality support services for insurance agent industry. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.2 Objectives

The objectives for the first three years of operation include:
  • To create a service-based company whose primary goal is to exceed customers' expectations.
  • The utilization of Ideal in at least 20 different insurance agents practices.
  • To increase the number of clients served by 20% per year through superior performance.
  • To develop a sustainable start-up business that is profitable.


2. Company Summary

Ideal Business Support Services, soon to be located in Salem, OR, will offer business support services for the insurance industry. Ideal will concentrate on transcription, database management, word processing and website development. These services will be offered to insurance agents who do not have the staff to perform these functions. By providing these services to the agents, the agents do not need to pay the overhead for the equipment, personnel, and knowledge.
The business will be based in downtown Salem and will have four employees in addition to Sarah Helpinghand, the founder and owner. Ideal is projected to reach profitability by month 11.

2.1 Company Ownership

Ideal Business Support Services is an Oregon corporation owned by Sarah Helpinghand.

2.2 Start-up Summary

Ideal Business Support Services have the following start-up expenses:
  • Computer system with three workstations, a printer, CD-RW, Microsoft Office, and Microsoft Access.
  • Office furniture including four desks and chairs, three file cabinets.
  • Legal fees regarding business formation and generating and reviewing contracts.
  • Copier, fax, and two phone lines.
  • Website development.
  • Various office supplies.
  • Two laptop computers with Pentium processors and Microsoft Office Professional version.
  • Transcription machine.
Please note that any equipment that will be used for more than a year will be considered a long-term asset and will be depreciated using the straight-line method.
Start-up Requirements
Start-up Expenses
Legal$1,000
Stationery etc.$100
Other$0
Total Start-up Expenses$1,100
Start-up Assets
Cash Required$57,400
Other Current Assets$0
Long-term Assets$8,500
Total Assets$65,900
Total Requirements$67,000
Start-up Funding
Start-up Expenses to Fund$1,100
Start-up Assets to Fund$65,900
Total Funding Required$67,000
Assets
Non-cash Assets from Start-up$8,500
Cash Requirements from Start-up$57,400
Additional Cash Raised$0
Cash Balance on Starting Date$57,400
Total Assets$65,900
Liabilities and Capital
Liabilities
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Total Liabilities$0
Capital
Planned Investment
Sarah$67,000
Other$0
Additional Investment Requirement$0
Total Planned Investment$67,000
Loss at Start-up (Start-up Expenses)($1,100)
Total Capital$65,900
Total Capital and Liabilities$65,900
Total Funding$67,000

3. Services

Ideal Business Support Services, as the name implies, offers support services for the insurance industry. Ideal's service offerings will be diverse, however, it will be specializing in transcription, database management, word processing, and website development and maintenance.
These services will be typically used by insurance agents who do not have the need to have a full-time person on payroll and the equipment in overhead. Ideal will be able to come in on short notice and perform the tasks that are needed by the agent.

4. Market Analysis Summary

Ideal will be focusing on a very specific part of the business market, the insurance industry. Within the industry there are two types of agents, exclusive agents that represent one specific company, and insurance brokers who represent multiple insurance companies.
Everyone needs insurance. Some types, such as car insurance is mandate by law. Other types, such as homeowners, just make good fiscal sense. For these reasons alone, the insurance industry is going to be around for a while and it makes sense to concentrate on them.
Salem has several support service companies but none as focussed as Ideal and none with the same industry knowledge that Ideal has.

4.1 Market Segmentation

The insurance market that is in need of support services can be broken down into two segments:
  • Exclusive agents: these agents represent only one type of insurance, such as State Farm. While the selection here is limited, the advantage of the exclusive agent is that they have a strong relationship with their representative company which is good for any claims issues. The stronger the relationship the agent has with the insurance company, the more effective of a cheerleader they can be for you.

  • Insurance brokers: these agents do not have an exclusive contract with any one insurance company. They can offer insurance from multiple companies. The advantage of this set up is that they can offer a wider range of service offerings than an agent who only sells one brand of insurance.
Market Analysis
Year 1Year 2Year 3Year 4Year 5
Potential CustomersGrowthCAGR
Exclusive agents7%788389951026.94%
Insurance brokers8%1231331441561688.11%
Total7.66%2012162332512707.66%

4.2 Target Market Segment Strategy

Ideal Business Support Services is focusing on the insurance industry because the agents that represent the insurance companies are often located in small offices. An insurance agent will have one or two support staff in their office in addition to the agent. This is a perfect atmosphere for a support agency because the services Ideal provides are typically out of the field of expertise for the normal support staff.
Another reason for focusing on a specific industry is that it is easier to be competitive when the focus of a business is narrow. Too often a business will stagnate when they try to do to many different things to too many customers. A narrow focus is very beneficial for a company, particularly one that is just starting up.
For these reasons, Ideal Business Support Services will concentrate on the insurance industry to be able to quickly grow and obtain market share.

4.3 Service Business Analysis

There are approximately 70-100 different insurance agents in the Salem area alone. While some are in larger offices, many are one or two person agent offices. This high concentration of small insurance agents is due to a previous historical trend where the service offering of insurance was done at the local level by "someone you could trust." Recently there has been the trend to offer insurance without an agent, via the phone or Internet. While this method of service delivery has gained market share, there is no reason to believe that it will eclipse the original agent-customer relationship. For many people, insurance is a very personal thing and they are more comfortable to discuss insurance needs in person with an agent as opposed to taking a chance and purchasing a commodity-like insurance over the phone or Internet. There is significant value in having the agent who knows you personally as your advocate against the insurance company if problems arise. For these reasons, the insurance agent will be around for a long time to come.

4.3.1 Competition and Buying Patterns

The competition consists of many different support service companies that offer a very wide range of service offerings. These companies replicate the offerings of Ideal, however none target the insurance industry only.
The buying patterns of the agents mimic a long-term relationship. If they are happy they will generally stay with the same service provider. The reasons for this is that there is generally a break-in period where both parties spend time getting to know each other, and the different needs each has. If this can be done up front once and never again, then it is more cost effective then jumping through the hoops each time.

5. Strategy and Implementation Summary

Ideal will use its sustainable competitive advantages to steadily gain market share. The first advantage is based on extensive inside industry knowledge of the insurance field. The second advantage is an already established network of contacts within the industry.
While these competitive advantages currently reside in Sarah's head as intellectual capital, it will be downloaded to the organization through intensive training courses that Sarah is designing and putting all employees through.

5.1 Sales Strategy

Ideal's sales strategy will based on closing the deal through a persuasive spiel detailing how Ideal can provide a superior service relative to the competitor. Because Ideal is intimately familiar with the industry, they can provide a superior service for the same cost.
This approach will only work with agents that have already decided to forgo an in-house support staff and are trying to decide between a specific support staff.
Sarah will also be targeting newly registered agents who are making the decision whether to have an in-house solution or to outsource the service. Although Sarah no longer sells insurance, she has kept her license current. This allows her to be part of the various insurance associations that agents typically belong to. By being an active member of the association, she is able to do a lot of networking for her business. This develops new relationships with insurance agents that she was not aware of before while in practice. Additionally, it allows her to maintain relationships with all the agents that she was colleagues with previously. Sarah will turn this access into contracts.

5.1.1 Sales Forecast

The first month will be used to set up the office. This will include choosing the site, purchasing furniture, and setting up the computer network. During this first month Sarah will be contacting some of her former colleagues
The first week of the second month will be used for an intensive training of two of the support staff. The last three weeks of the month will see some sales activity. Sales will steadily increase from this point.
Month five will see the hiring of the final two support staff. They will also be trained during the first week of the month and then will take on a work load.
Sales Forecast
Year 1Year 2Year 3
Sales
Exclusive agents$51,049$112,548$121,458
Insurance brokers$59,812$125,745$134,745
Total Sales$110,861$238,293$256,203
Direct Cost of SalesYear 1Year 2Year 3
Exclusive agents$7,657$16,882$18,219
Insurance brokers$8,972$18,862$20,212
Subtotal Direct Cost of Sales$16,629$35,744$38,430

5.2 Competitive Edge

Ideal's competitive edge is a very specific, deep industry knowledge of insurance. While having this specific knowledge will preclude a lot of the market, it makes a small part of the market quite attractive to you and your customers.
This deep industry knowledge is based on Sarah's five years spent as an independent insurance agent. Sarah will then gather all of this intellectual capital and process it into a training program so is is shared knowledge throughout the organization.
This approach is somewhat backwards relative to the norm for the support service industry. Generally, the background of the company owner is from the support staff industry. They then apply the support staff proficiencies to the industry of their different customers. Sarah believes that the intricacies of the insurance industry are far more complex then that of the support agency. Her rationale is that she can pick up the few things she does not know about support much quicker than having to learn about each industry.
Sarah's industry access  is valuable for networking as well. Having spent time in the industry, Sarah developed many strong relationships with agents. Having established these relationships previously created a trust bond that is significant when it comes to attempting to transform the professional insurance relationship to a support service based relationship.

5.3 Milestones

Ideal will have several milestones early on:
  1. Business plan completion. This will be done as a roadmap for the organization. While Ideal does not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Office set up.
  3. Training program. This will be the development of a training program for the employees.
  4. Revenue of $50,000.
Milestones
MilestoneStart DateEnd DateBudgetManagerDepartment
Business plan completion1/1/20012/1/2001$0ABCMarketing
Office set up1/1/20012/1/2001$0ABCDepartment
Training program1/1/20012/1/2001$0ABCDepartment
Revenue of $50,0001/1/200110/31/2001$0ABCDepartment
Totals$0

6. Management Summary

Sarah Helpinghand, founder and owner received her Bachelor degree in business management from Willamette University. The summer of her last year she interned with State Farm Insurance which has a large corporate headquarter in Salem. From this internship Sarah was able to learn a lot about the insurance industry.
Upon graduation Sarah "fell into a job" through a contact at State Farm. Her friend knew an insurance agent who was retiring and looking for someone to take over their practice. Sarah came highly recommended and was offered the job. She readily accepted and spent five years as an agent. Toward the end of her tenure as an agent she was getting a bit restless. She was looking for a new challenge, something she could do all on her own. The idea one day dawned on her that she could leverage her industry knowledge of insurance, and with the bit of information she had about support services from college and create her own company.

6.1 Personnel Plan

Sarah will be working full time for Ideal. Her responsibilities will be generating contracts, training, payroll, customer service, and other back office tasks. During month two she will bring on board two support specialists. The headcount will remain at three until month five when the business generated will be too much for the two support staff and two more will be hired. The support staff will be paid $12 an hour, several dollars more an hour than the market rate. The purpose behind this is to protect Sarah's investment in training the staff. It costs too much for her to invest time and money into training someone and have them leave after a few months. Paying the staff more than market is her insurance to keep them with the company.
Personnel Plan
Year 1Year 2Year 3
Sarah$30,000$30,000$30,000
Support staff$21,120$23,040$23,040
Support staff$21,120$23,040$23,040
Support staff$15,360$23,040$23,040
Support staff$15,360$23,040$23,040
Total People555
Total Payroll$102,960$122,160$122,160

7. Financial Plan

The following sections will outline the important financial assumptions, key financial indicators, break-even analysis, profit and loss, cash flow, and the balance sheet.

7.1 Break-even Analysis

The break-even analysis indicates what is needed in monthly revenue to break even.
Break-even Analysis
Monthly Revenue Break-even$13,445
Assumptions:
Average Percent Variable Cost15%
Estimated Monthly Fixed Cost$11,428

7.2 Important Assumptions

The following table highlights some of the important financial assumptions for Ideal.
General Assumptions
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%10.00%10.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate25.42%25.00%25.42%
Other000

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.
Pro Forma Profit and Loss
Year 1Year 2Year 3
Sales$110,861$238,293$256,203
Direct Cost of Sales$16,629$35,744$38,430
Other$0$0$0
Total Cost of Sales$16,629$35,744$38,430
Gross Margin$94,232$202,549$217,773
Gross Margin %85.00%85.00%85.00%
Expenses
Payroll$102,960$122,160$122,160
Sales and Marketing and Other Expenses$3,000$2,500$2,500
Depreciation$2,832$2,832$2,832
Leased Equipment$0$0$0
Utilities$1,500$1,500$1,500
Insurance$1,800$1,800$1,800
Rent$9,600$9,600$9,600
Payroll Taxes$15,444$18,324$18,324
Other$0$0$0
Total Operating Expenses$137,136$158,716$158,716
Profit Before Interest and Taxes($42,904)$43,833$59,057
EBITDA($40,072)$46,665$61,889
Interest Expense$0$0$0
Taxes Incurred$0$10,958$15,010
Net Profit($42,904)$32,875$44,046
Net Profit/Sales-38.70%13.80%17.19%

7.4 Projected Cash Flow

The following chart and table indicates projected cash flow.
Pro Forma Cash Flow
Year 1Year 2Year 3
Cash Received
Cash from Operations
Cash Sales$38,801$83,403$89,671
Cash from Receivables$48,735$128,079$162,764
Subtotal Cash from Operations$87,536$211,482$252,435
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$3,000$0$0
Subtotal Cash Received$90,536$211,482$252,435
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$102,960$122,160$122,160
Bill Payments$42,443$79,346$86,611
Subtotal Spent on Operations$145,403$201,506$208,771
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$145,403$201,506$208,771
Net Cash Flow($54,867)$9,976$43,664
Cash Balance$2,533$12,509$56,173

7.5 Projected Balance Sheet

The following table indicates the projected balance sheet.
Pro Forma Balance Sheet
Year 1Year 2Year 3
Assets
Current Assets
Cash$2,533$12,509$56,173
Accounts Receivable$23,325$50,136$53,904
Other Current Assets$0$0$0
Total Current Assets$25,858$62,645$110,077
Long-term Assets
Long-term Assets$8,500$8,500$8,500
Accumulated Depreciation$2,832$5,664$8,496
Total Long-term Assets$5,668$2,836$4
Total Assets$31,526$65,481$110,081
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$5,530$6,610$7,164
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Subtotal Current Liabilities$5,530$6,610$7,164
Long-term Liabilities$0$0$0
Total Liabilities$5,530$6,610$7,164
Paid-in Capital$70,000$70,000$70,000
Retained Earnings($1,100)($44,004)($11,129)
Earnings($42,904)$32,875$44,046
Total Capital$25,996$58,871$102,917
Total Liabilities and Capital$31,526$65,481$110,081
Net Worth$25,996$58,871$102,917

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the NAICS code 524298, Other Insurance Related Activities, are shown for comparison.
Ratio Analysis
Year 1Year 2Year 3Industry Profile
Sales Growth0.00%114.95%7.52%3.95%
Percent of Total Assets
Accounts Receivable73.99%76.57%48.97%24.53%
Other Current Assets0.00%0.00%0.00%69.49%
Total Current Assets82.02%95.67%100.00%94.07%
Long-term Assets17.98%4.33%0.00%5.93%
Total Assets100.00%100.00%100.00%100.00%
Current Liabilities17.54%10.10%6.51%29.76%
Long-term Liabilities0.00%0.00%0.00%9.55%
Total Liabilities17.54%10.10%6.51%39.31%
Net Worth82.46%89.90%93.49%60.69%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin85.00%85.00%85.00%100.00%
Selling, General & Administrative Expenses123.70%71.20%67.71%60.33%
Advertising Expenses1.62%0.55%0.51%1.26%
Profit Before Interest and Taxes-38.70%18.39%23.05%6.43%
Main Ratios
Current4.689.4815.362.23
Quick4.689.4815.362.00
Total Debt to Total Assets17.54%10.10%6.51%49.79%
Pre-tax Return on Net Worth-165.04%74.46%57.38%7.52%
Pre-tax Return on Assets-136.09%66.94%53.65%14.98%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin-38.70%13.80%17.19%n.a
Return on Equity-165.04%55.84%42.80%n.a
Activity Ratios
Accounts Receivable Turnover3.093.093.09n.a
Collection Days5587114n.a
Accounts Payable Turnover8.6812.1712.17n.a
Payment Days272829n.a
Total Asset Turnover3.523.642.33n.a
Debt Ratios
Debt to Net Worth0.210.110.07n.a
Current Liab. to Liab.1.001.001.00n.a
Liquidity Ratios
Net Working Capital$20,328$56,035$102,913n.a
Interest Coverage0.000.000.00n.a
Additional Ratios
Assets to Sales0.280.270.43n.a
Current Debt/Total Assets18%10%7%n.a
Acid Test0.461.897.84n.a
Sales/Net Worth4.264.052.49n.a
Dividend Payout0.000.000.00n.a



8. Appendix

Sales Forecast
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Sales
Exclusive agents0%$0$1,001$1,204$2,145$3,454$3,658$4,258$4,987$6,254$6,985$8,125$8,978
Insurance brokers0%$0$1,325$1,545$2,785$3,852$4,141$4,787$6,235$7,458$8,325$9,214$10,145
Total Sales$0$2,326$2,749$4,930$7,306$7,799$9,045$11,222$13,712$15,310$17,339$19,123
Direct Cost of SalesMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Exclusive agents$0$150$181$322$518$549$639$748$938$1,048$1,219$1,347
Insurance brokers$0$199$232$418$578$621$718$935$1,119$1,249$1,382$1,522
Subtotal Direct Cost of Sales$0$349$412$740$1,096$1,170$1,357$1,683$2,057$2,297$2,601$2,868
Personnel Plan
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Sarah0%$2,500$2,500$2,500$2,500$2,500$2,500$2,500$2,500$2,500$2,500$2,500$2,500
Support staff0%$0$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920
Support staff0%$0$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920
Support staff0%$0$0$0$0$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920
Support staff0%$0$0$0$0$1,920$1,920$1,920$1,920$1,920$1,920$1,920$1,920
Total People133355555555
Total Payroll$2,500$6,340$6,340$6,340$10,180$10,180$10,180$10,180$10,180$10,180$10,180$10,180
General Assumptions
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Plan Month123456789101112
Current Interest Rate10.00%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 Rate10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%
Tax Rate30.00%25.00%25.00%25.00%25.00%25.00%25.00%25.00%25.00%25.00%25.00%25.00%
Other000000000000
Pro Forma Profit and Loss
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Sales$0$2,326$2,749$4,930$7,306$7,799$9,045$11,222$13,712$15,310$17,339$19,123
Direct Cost of Sales$0$349$412$740$1,096$1,170$1,357$1,683$2,057$2,297$2,601$2,868
Other$0$0$0$0$0$0$0$0$0$0$0$0
Total Cost of Sales$0$349$412$740$1,096$1,170$1,357$1,683$2,057$2,297$2,601$2,868
Gross Margin$0$1,977$2,337$4,191$6,210$6,629$7,688$9,539$11,655$13,014$14,738$16,255
Gross Margin %0.00%85.00%85.00%85.00%85.00%85.00%85.00%85.00%85.00%85.00%85.00%85.00%
Expenses
Payroll$2,500$6,340$6,340$6,340$10,180$10,180$10,180$10,180$10,180$10,180$10,180$10,180
Sales and Marketing and Other Expenses$250$250$250$250$250$250$250$250$250$250$250$250
Depreciation$236$236$236$236$236$236$236$236$236$236$236$236
Leased Equipment$0$0$0$0$0$0$0$0$0$0$0$0
Utilities$125$125$125$125$125$125$125$125$125$125$125$125
Insurance$150$150$150$150$150$150$150$150$150$150$150$150
Rent$800$800$800$800$800$800$800$800$800$800$800$800
Payroll Taxes15%$375$951$951$951$1,527$1,527$1,527$1,527$1,527$1,527$1,527$1,527
Other$0$0$0$0$0$0$0$0$0$0$0$0
Total Operating Expenses$4,436$8,852$8,852$8,852$13,268$13,268$13,268$13,268$13,268$13,268$13,268$13,268
Profit Before Interest and Taxes($4,436)($6,875)($6,515)($4,662)($7,058)($6,639)($5,580)($3,729)($1,613)($255)$1,470$2,987
EBITDA($4,200)($6,639)($6,279)($4,426)($6,822)($6,403)($5,344)($3,493)($1,377)($19)$1,706$3,223
Interest Expense$0$0$0$0$0$0$0$0$0$0$0$0
Taxes Incurred$0$0$0$0$0$0$0$0$0$0$0$0
Net Profit($4,436)($6,875)($6,515)($4,662)($7,058)($6,639)($5,580)($3,729)($1,613)($255)$1,470$2,987
Net Profit/Sales0.00%-295.57%-237.01%-94.55%-96.60%-85.12%-61.69%-33.23%-11.76%-1.66%8.48%15.62%
Pro Forma Cash Flow
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Cash Received
Cash from Operations
Cash Sales$0$814$962$1,726$2,557$2,730$3,166$3,928$4,799$5,359$6,069$6,693
Cash from Receivables$0$0$50$1,521$1,834$3,256$4,760$5,096$5,926$7,348$8,947$9,995
Subtotal Cash from Operations$0$814$1,013$3,247$4,391$5,986$7,925$9,024$10,726$12,707$15,016$16,689
Additional Cash Received
Sales Tax, VAT, HST/GST Received0.00%$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$3,000$0$0
Subtotal Cash Received$0$814$1,013$3,247$4,391$5,986$7,925$9,024$10,726$15,707$15,016$16,689
ExpendituresMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Expenditures from Operations
Cash Spending$2,500$6,340$6,340$6,340$10,180$10,180$10,180$10,180$10,180$10,180$10,180$10,180
Bill Payments$57$1,731$2,627$2,699$3,047$3,950$4,028$4,220$4,548$4,917$5,159$5,462
Subtotal Spent on Operations$2,557$8,071$8,967$9,039$13,227$14,130$14,208$14,400$14,728$15,097$15,339$15,642
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$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
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$2,557$8,071$8,967$9,039$13,227$14,130$14,208$14,400$14,728$15,097$15,339$15,642
Net Cash Flow($2,557)($7,257)($7,954)($5,793)($8,835)($8,145)($6,283)($5,376)($4,002)$610($323)$1,047
Cash Balance$54,843$47,587$39,632$33,839$25,004$16,859$10,577$5,201$1,199$1,809$1,486$2,533
Pro Forma Balance Sheet
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
AssetsStarting Balances
Current Assets
Cash$57,400$54,843$47,587$39,632$33,839$25,004$16,859$10,577$5,201$1,199$1,809$1,486$2,533
Accounts Receivable$0$0$1,512$3,248$4,932$7,847$9,660$10,780$12,978$15,964$18,567$20,890$23,325
Other Current Assets$0$0$0$0$0$0$0$0$0$0$0$0$0
Total Current Assets$57,400$54,843$49,099$42,880$38,771$32,851$26,519$21,356$18,179$17,163$20,376$22,376$25,858
Long-term Assets
Long-term Assets$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500$8,500
Accumulated Depreciation$0$236$472$708$944$1,180$1,416$1,652$1,888$2,124$2,360$2,596$2,832
Total Long-term Assets$8,500$8,264$8,028$7,792$7,556$7,320$7,084$6,848$6,612$6,376$6,140$5,904$5,668
Total Assets$65,900$63,107$57,127$50,672$46,327$40,171$33,603$28,204$24,791$23,539$26,516$28,280$31,526
Liabilities and CapitalMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12
Current Liabilities
Accounts Payable$0$1,643$2,537$2,599$2,915$3,816$3,888$4,068$4,384$4,745$4,977$5,271$5,530
Current Borrowing$0$0$0$0$0$0$0$0$0$0$0$0$0
Other Current Liabilities$0$0$0$0$0$0$0$0$0$0$0$0$0
Subtotal Current Liabilities$0$1,643$2,537$2,599$2,915$3,816$3,888$4,068$4,384$4,745$4,977$5,271$5,530
Long-term Liabilities$0$0$0$0$0$0$0$0$0$0$0$0$0
Total Liabilities$0$1,643$2,537$2,599$2,915$3,816$3,888$4,068$4,384$4,745$4,977$5,271$5,530
Paid-in Capital$67,000$67,000$67,000$67,000$67,000$67,000$67,000$67,000$67,000$67,000$70,000$70,000$70,000
Retained Earnings($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)($1,100)
Earnings$0($4,436)($11,311)($17,826)($22,488)($29,546)($36,185)($41,764)($45,494)($47,106)($47,361)($45,891)($42,904)
Total Capital$65,900$61,464$54,589$48,074$43,412$36,354$29,716$24,136$20,406$18,794$21,539$23,009$25,996
Total Liabilities and Capital$65,900$63,107$57,127$50,672$46,327$40,171$33,603$28,204$24,791$23,539$26,516$28,280$31,526
Net Worth$65,900$61,464$54,589$48,074$43,412$36,354$29,716$24,136$20,406$18,794$21,539$23,009$25,996