Financial Plan for a Business Startup - 797 Words

Financials Any startup business will typically want to have a financial plan. This plan should include a pro forma income statement, balance sheet and cash flow statement. These statements will naturally be built on a set of assumptions. The assumptions are as follows: Revenue. There is a fleet of 4 vehicles and expected revenue is $200 per vehicle per day, seven days per week. Capacity will be at 50% initially, gradually increasing to 90% by the end of the first year. Auto Expenses. This includes fuel, washing, maintenance, registration, airport fees, insurance and other costs of goods sold. Limousine Company Pro Forma Income Statement Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Revenue 12000 13000 14000 15000 16000 20000 18000 19000 19500 20000 21000 21600 209100 Auto Expenses 2662 2700 2800 2900 2950 3200 3000 3100 3150 3200 3250 3300 36212 Wages 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 9584 115008 Advertising 161 161 161 161 161 161 161 161 161 161 161 161 1932 Depreciation 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30000 Interest 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 39996 Miscellaneous 395 395 395 395 395 395 395 395 395 395 395 395 4740 Income -6635 -5673 -4773 -3873 -2923 827 -973 -73 377 827 1777 2327 -18788 The company would turn a profit in its second year: Pro Forma Income Statement Jan 2014 Revenue 259200 Auto Expenses 39600 Wages 115008 Advertising 1932 Depreciation 30000 Interest 39996Show MoreRelatedFinancial Portion Of A Business Plan For A Startup Business1162 Words   |  5 Pagesmary purpose of this project is to create the financial portion of a business plan for a startup business. An overview of the chosen business model will be provided with advantages and disadvantages of company-operated stores versus franchise businesses. Elements of the financial plan including a description of the financing model, financial projections, and a risk assessment will be presented. Finally, predicted rates of return on the investment will be provided based on investors’ contributionsRead MoreDigital Indi Startup Plans Of 2016895 Words   |  4 Pages Digital India: Startup Plans of 2016 Start-up India is harmonious with the PM’s innovation approach when he addressed Digital India program. The Start-up India Action plan is a great start but will need continued support and evolution to make this a true, deep revolution for the future India. Starting own business is the dream project of many individuals which is underpinned by many facilities in our country. Hundreds and thousands of business are being launched every day with a low successRead MoreIntroduction To Fitness With A Team916 Words   |  4 Pagesthe initial startup of the business. Each person’s job and responsibilities will be clearly defined as to help avoid conflict throughout the life of the business. â€Å"The discussion around who does what is one of the most critical discussions the founding team will have because it directly impacts ownership† (Allen, 2014). This is not to say that the roles in the team can be rearranged, but that will be up to the decision of the owner and can change when needed. During the initial startup, seeking theRead MoreEssay 5 Questions To Ask To Know YouRe Investment Ready1365 Words   |  6 Pages5 Questions to Ask to Know You’re Investment Ready In the lifecycle of a startup, nothing is as important as fundraising. You will need investment to turn your business idea into reality. 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In this age of booming new businesses and gutsy new entrepreneurs, securing funds in itself is aRead MoreBusiness Plan Essay1290 Words   |  6 Pagesdo instead to increase your chances of raising money So, if writing a business plan won’t increase your chances of attracting money, what will? How do you increase your chances of generating investor interest and launch a startup successfully? You could find part of the answer from the answer Sam Altman, the president at Y Combinator, gave at a EconTalk podcast when explaining the firm’s logic of not reading business plans. â€Å"We would rather spend the time working on their product, talking toRead MoreManagement Decision Regarding the Legal Form of Business Essay741 Words   |  3 Pagesmy invention. Consideration will be given to the main three legal forms of business in order to make a management decision on which would best suit the needs and limitations of the product and inventor. Limited funds and knowhow are just a sample of the challenges facing the new firm. After comparing the forms of business and all the negative and positive components and the management decision is made, a business plan will start to be developed. It is the belief that not only will the inventionRead MoreBusiness Writing : What Is A Waste Of Time?932 Words   |  4 PagesWriting 20 pages of meticulous plans about your startup is not going to make you money. You won’t get an investor to invest in your business because you had written a book about what you are planning to do. What gets you money? Actually putting your ideas to the test – showing results in real life not on paper. Starting a business is time-consuming and it’s hard. Don’t make it worse by spending a days in front of your computer creating a lengthy business plan. Essentially, do not waste timeRead MoreAngel Investors And The Venture Capitalists891 Words   |  4 Pagesgenerally used to fund the startup companies. Any entrepreneur who wishes to establish a startup might search for investors. And investors who are willing to fund are known as Angel Investors. And the amount availed through investments for startups are called Angel Investments. Also there is another kind of investment also called as capital investment. Depending upon the policies evolved at management level of a business these investors are categorized. Not only confined to financial return, some factorsRead MoreQuestions On Hidden Business Deductions Essay960 Words   |  4 PagesHidden Business Deductions Recommended Title Ideas for the eBook: The Curated Tax Strategy How to Curate and Sharpen Your Tax Strategy Proactive Tax Strategies to Save Money and Build Wealth Using Tax Deductions and Planning to Reach Your Financial Targets Find Those Hidden Business Deductions You can always deduct standard business expenses, but can you deduct hidden and unusual expenses to reduce your tax burden? Using your imagination and proactive planning provides a resounding answer to