Clothing E-Commerce Site Business Plan

Liquid Culture

Financial Plan

Forecast

Key Assumptions

We assume a successful ramp-up. Yes, sales forecast is probably too optimistic. But we believe there is a real market window, real need, and the climate is right. 

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

Liquid Culture’s start-up costs consists mostly of design and marketing. Liquid Culture has $260,000 in investments and $200,000 in a short-term loan.

To Be more specific, start-up expenses are listed as:

Legal $1,000

Office expenses $500

Consultants $5,000

Rent $2,000

Leased Office Equipment $10,000

Computer Equipment/Software $30,000

Website $10,000

Totaling : $58,500

We will also be purchasing $401,500 of long term assets 

 

Sources of Funds

We will be getting $460,000, which includes: 

$130,000 from founder 1

130,000 from founder 2

Short term loan of $200,000

Statements

Projected Profit & Loss

	2020	2021	2022
Revenue	$2,170,000	$2,230,000	$2,295,000
Direct Costs	$933,100	$958,900	$986,850
Gross Margin	$1,236,900	$1,271,100	$1,308,150
Gross Margin %	57%	57%	57%
Operating Expenses
Salaries & Wages	$616,800	$629,136	$641,719
Employee Related Expenses	$123,360	$125,827	$128,344
Rent	$24,000	$24,000	$24,000
Utilities	$6,000	$6,000	$6,000
Marketing	$325,500	$334,500	$344,250
Sales Expense	$21,600	$21,600	$21,600
Total Operating Expenses	$1,117,260	$1,141,063	$1,165,913
Operating Income	$119,640	$130,037	$142,237
Interest Incurred	$6,560
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes	$16,962	$19,506	$21,335
Total Expenses	$2,073,882	$2,119,469	$2,174,098
Net Profit	$96,118	$110,531	$120,902
Net Profit/Sales	4%	5%	5%

Projected Balance Sheet

	Starting Balances	2020	2021	2022
Cash	$401,500	$382,497	$436,071	$558,857
Accounts Receivable		$81,000	$40,140	$41,310
Inventory		$159,817	$164,475	$164,475
Other Current Assets
Total Current Assets	$401,500	$623,314	$640,686	$764,642
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Total Assets	$401,500	$623,314	$640,686	$764,642
Accounts Payable		$224,733	$183,060	$184,360
Income Taxes Payable		$16,962	$4,877	$5,331
Sales Taxes Payable		$84,000	$44,600	$45,900
Short-Term Debt	$200,000
Prepaid Revenue
Total Current Liabilities	$200,000	$325,695	$232,537	$235,591
Long-Term Debt	$0	$0	$0	$0
Long-Term Liabilities	$0	$0	$0	$0
Total Liabilities	$200,000	$325,695	$232,537	$235,591
Paid-In Capital	$260,000	$260,000	$260,000	$260,000
Retained Earnings	($58,500)	($58,500)	$37,618	$148,149
Earnings		$96,118	$110,531	$120,902
Total Owner’s Equity	$201,500	$297,618	$408,149	$529,051
Total Liabilities & Equity	$401,500	$623,314	$640,686	$764,642

Projected Cash Flow Statement

	2020	2021	2022
Net Cash Flow from Operations
Net Profit	$96,118	$110,531	$120,902
Depreciation & Amortization
Change in Accounts Receivable	($81,000)	$40,860	($1,170)
Change in Inventory	($159,817)	($4,658)	$0
Change in Accounts Payable	$224,733	($41,673)	$1,300
Change in Income Tax Payable	$16,962	($12,085)	$454
Change in Sales Tax Payable	$84,000	($39,400)	$1,300
Change in Prepaid Revenue
Net Cash Flow from Operations	$180,997	$53,574	$122,786
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt	($200,000)
Change in Long-Term Debt	$0	$0	$0
Net Cash from Financing	($200,000)	$0	$0
Cash at Beginning of Period	$401,500	$382,497	$436,071
Net Change in Cash	($19,003)	$53,574	$122,786
Cash at End of Period	$382,497	$436,071	$558,857