Cambridge Strategy Group
Financial Plan
Forecast
Key Assumptions
Below is a list of assumptions that define the short-term business model:
- Year 1 will be spent preparing and learning how best to approach clients and building relationships with VCs;
- All managers will hold full-time positions with other companies;
- We will focus on business opportunities in NC until we create sufficient revenue to open foreign LLC’s in other states;
- year 1 financial model represents only three managers;
- All revenue is realized when a project is finished
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our Startup Expenses are:
Start-up Expenses
Legal$200
Stationery etc.$100
Brochures$150
Insurance$200
Other$4,000
TOTAL START-UP EXPENSES$4,650
Sources of Funds
Our 3 owners will contribute to our startup: John Gordon is contributing 40,000, Todd Kuczaj is contributing 40,000, Ben Cordell contributed 35,000. The total from the owner investment is 115000
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $330,750 | $567,000 | $651,000 |
| Direct Costs | $99,225 | $170,100 | $195,300 |
| Gross Margin | $231,525 | $396,900 | $455,700 |
| Gross Margin % | 70% | 70% | 70% |
| Operating Expenses | |||
| Salaries & Wages | $160,000 | $239,040 | $312,238 |
| Employee Related Expenses | $32,000 | $47,808 | $62,448 |
| Sales and Marketing | $2,400 | $2,400 | $2,400 |
| Utilities | $960 | $960 | $960 |
| Insurance | $1,200 | $1,200 | $1,200 |
| Rent | $24,000 | $24,000 | $24,000 |
| Startup Expense | $4,600 | ||
| Total Operating Expenses | $225,160 | $315,408 | $403,246 |
| Operating Income | $6,365 | $81,492 | $52,454 |
| Interest Incurred | |||
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $324,385 | $485,508 | $598,546 |
| Net Profit | $6,365 | $81,492 | $52,454 |
| Net Profit/Sales | 2% | 14% | 8% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $121,365 | $2,857 | $55,311 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $121,365 | $2,857 | $55,311 |
| Long-Term Assets | |||
| Accumulated Depreciation | |||
| Total Long-Term Assets | |||
| Total Assets | $121,365 | $2,857 | $55,311 |
| Accounts Payable | $0 | $0 | $0 |
| Income Taxes Payable | $0 | $0 | $0 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $0 | $0 | $0 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $0 | $0 | $0 |
| Paid-In Capital | $115,000 | $115,000 | $115,000 |
| Retained Earnings | ($193,635) | ($112,143) | |
| Earnings | $6,365 | $81,492 | $52,454 |
| Total Owner’s Equity | $121,365 | $2,857 | $55,311 |
| Total Liabilities & Equity | $121,365 | $2,857 | $55,311 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $6,365 | $81,492 | $52,454 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $0 | $0 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $6,365 | $81,492 | $52,454 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $115,000 | ||
| Dividends & Distributions | ($200,000) | ||
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $115,000 | ($200,000) | |
| Cash at Beginning of Period | $0 | $121,365 | $2,857 |
| Net Change in Cash | $121,365 | ($118,508) | $52,454 |
| Cash at End of Period | $121,365 | $2,857 | $55,311 |
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