Thursday, July 31, 2014

Financial Plan- 3PL Company in USA

Start-up Funding

Early funding has been provided personally by the owner and founder, Mr. XXXXX. These funds have been utilized for License and establishing the firm and all necessary business functions since the inception of the company in 2015.
The company founder, Mr. XXXXX, will administer day-to-day operations of the business and will work collaboratively to ensure that this business venture is a success.

Start-up Plan

ASSETS - Current
Cash
54,750
Total Current Assets
$54,750
ASSETS - Long-Term
Intangible Asset
78,250
Business Computer & VoIP phone
2,000
Furniture
5,000
Equipment
10,000
Total Long-Term Assets
$95,250
TOTAL ASSETS
$150,000
LIABILITIES - Current
Taxes Payable
0
Payroll Taxes Payable
0
Total Current Liabilities
$0
LIABILITIES - Long term
Bank Loan
50,000
Long term Debt
0
Repayment
0
Total Current Liabilities
$50,000
TOTAL LIABILITIES
$50,000
OWNER'S EQUITY
Retained Earnings
Equity Contribution
100,000
TOTAL EQUITY
$100,000
TOTAL LIABILITIES & EQUITY
$150,000

Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the coming 5 years. We foresee major growth in sales and operating expenses as we spread the business during expansion.

Benchmarks




Projected Profit and Loss

Outlined below, and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for ABC Ltd.
·         Cost of sales reflects the ad revenue received by users.
·         CEO salary is accounted to $60,000 for startup and 10% increment for coming years.
·         We will collect all the revenue from our braches and will pay them and total expenses to $60,000 for each branch.
·         All sales and marketing is contracted to third party. Salary is not paid to her, as this is a sole proprietorship.
·         The various General and Administrative expenses are projected based on current market rates. 


INCOME STATEMENT - ANNUAL
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
REVENUE





Revenue Generated
122,400
499,992
1,276,836
2,119,644
3,034,008
Total Revenue / Total Gross Margin
$122,400
$499,992
$1,276,836
$2,119,644
$3,034,008
OPERATING EXPENSES





Advertising and marketing
18,000
72,000
180,000
288,000
396,000
Rent
12,000
48,000
120,000
192,000
264,000
Utilities and phone
4,800
19,200
48,000
76,800
105,600
Payroll
60,000
246,000
630,600
1,053,660
1,519,026
Supplies
2,400
9,600
24,000
38,400
52,800
Insurance
7,200
28,800
72,000
115,200
158,400
Other Operating Expenses, Total
2,400
9,600
24,000
38,400
52,800
Professional services
0
0
0
0
0
Website Maintenance
720
2,880
7,200
11,520
15,840
Legal Exp.
2,400
9,600
24,000
38,400
52,800
Total Operating Expenses
$109,920
$445,680
$1,129,800
$1,852,380
$2,617,266
Net Before Interest, Taxes, Depreciation & Amortization
$12,480
$54,312
$147,036
$267,264
$416,742
Depreciation Expense
3,400
$13,600
$34,000
$54,400
$74,800
Interest
3,500
0.00
0.00
0.00
0.00
Net Income Before Taxes
$5,580
$40,712
$113,036
$212,864
$341,942
NET INCOME (LOSS) (Pre-Tax)
$5,580
$40,712
$113,036
$212,864
$341,942



Profit Yearly

Projected Cash Flow


CASH FLOW
Before the Business Start
Year 1
Year 2
Year 3
Year 4
Year 5
BEGINNING CASH BALANCE
54,750
63,730
67,042
112,078
277,342
Add:
Owner's contribution
100,000

Add:
Long term liability Amount
0

Add:
Bank Loan Amount
50,000

Add:
Net Profit (Loss)
5,580
40,712
113,036
212,864
341,942
Add:
Depreciation
3,400
13,600
34,000
54,400
74,800

SUB TOTAL
$150,000
$63,730
$118,042
$214,078
$379,342
$694,084
Subtract: 
Repayment of loan
0
0
0
0
0
Subtract: 
Company registration charge

Subtract: 
Business Computer & VoIP phone
2,000

6,000
12,000
12,000
12,000
Subtract: 
Furniture
5,000

15,000
30,000
30,000
30,000
Subtract: 
Equipment
10,000

30,000
60,000
60,000
60,000
Subtract: 
Licenses
750

Subtract: 
FMCSA Bond
75,000

Subtract: 
Website building exp.
2,000

Subtract: 
Other exp.
500


SUB TOTAL
$95,250
$0
$51,000
$102,000
$102,000
$102,000

ENDING CASH BALANCE
$54,750
$63,730
$67,042
$112,078
$277,342
$592,084



Projected Balance Sheet

BALANCE SHEET 
Year 1
Year 2
Year 3
Year 4
Year 5
ASSETS - Current
Cash
63,730
40.96%
67,042
34.15%
112,078
36.23%
277,342
53.11%
592,084
68.52%
Total Current Assets
$63,730
40.96%
$67,042
34.15%
$112,078
36.23%
$277,342
53.11%
$592,084
68.52%
ASSETS - Long-Term
Intangible Asset
78,250
50.30%
78,250
39.86%
78,250
25.30%
78,250
14.98%
78,250
9.06%
Business Computer & VoIP phone
2,000
1.29%
8,000
4.08%
20,000
6.47%
32,000
6.13%
44,000
5.09%
Furniture
5,000
3.21%
20,000
10.19%
50,000
16.16%
80,000
15.32%
110,000
12.73%
Equipment
10,000
6.43%
40,000
20.38%
100,000
32.33%
160,000
30.64%
220,000
25.46%
   Less:  Accumulated Depreciation
(3,400)
-2.19%
(17,000)
-8.66%
(51,000)
-16.49%
(105,400)
-20.18%
(180,200)
-20.85%
Total Long-Term Assets
$91,850
59.04%
$129,250
65.85%
$197,250
63.77%
$244,850
46.89%
$272,050
31.48%
TOTAL ASSETS
$155,580
100.00%
$196,292
100.00%
$309,328
100.00%
$522,192
100.00%
$864,134
100.00%
LIABILITIES - Current
Taxes Payable
0
0
0
0
0
Payroll Taxes Payable
0
0
0
0
0
Total Current Liabilities
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
LIABILITIES - Long term
Bank Loan
50,000
50,000
50,000
50,000
50,000
Long term Debt
0
0
0
0
0
Repayment
0
0
0
0
0
Total Current Liabilities
$50,000
32.14%
$50,000
25.47%
$50,000
16.16%
$50,000
9.58%
$50,000
5.79%
TOTAL LIABILITIES
$50,000
32.14%
$50,000
25.47%
$50,000
16.16%
$50,000
9.58%
$50,000
5.79%
OWNER'S EQUITY
Retained Earnings
5,580
2.84%
46,292
14.97%
159,328
30.51%
372,192
43.07%
Equity Contribution
100,000
64.28%
100,000
50.94%
100,000
32.33%
100,000
19.15%
100,000
11.57%
(Owner's Draw)
Current Year Income
5,580
3.59%
40,712
20.74%
113,036
36.54%
212,864
40.76%
341,942
39.57%
TOTAL EQUITY
$105,580
67.86%
$146,292
74.53%
$259,328
83.84%
$472,192
90.42%
$814,134
94.21%
TOTAL LIABILITIES & EQUITY
$155,580
100.00%
$196,292
100.00%
$309,328
100.00%
$522,192
100.00%
$864,134
100.00%






CASH FLOW
Monthly
Before the Business Start
Month
 1
Month
2
Month
3
Month
 4
Month
 5
Month
6
Month
7
Month
8
Month
9
Month
10
Month 11
Month 12















BEGINNING CASH BALANCE
54,750
49,262
44,998
41,958
40,142
39,550
38,958
40,814
42,670
46,974
51,278
58,030
Add:
Owner's contribution
100,000
Add:
Long term liability Amount
0
Add:
Bank Loan Amount
50,000
Add:
Net Profit (Loss)
(5,771)
(4,547)
(3,323)
(2,099)
(875)
(875)
1,573
1,573
4,021
4,021
6,469
8,917
Add:
Depreciation
283
283
283
283
283
283
283
283
283
283
283
283

SUB TOTAL
$150,000
$49,262
$44,998
$41,958
$40,142
$39,550
$38,958
$40,814
$42,670
$46,974
$51,278
$58,030
$67,230
Subtract: 
Repayment of loan
0
0
0
0
0
0
0
0
0
0
0
0
Subtract: 
Company registration charge
Subtract: 
Business Computer & VoIP phone
2,000
Subtract: 
Furniture
5,000
Subtract: 
Equipment
10,000
Subtract: 
Licenses
750
Subtract: 
FMCSA Bond
75,000
Subtract: 
Website building exp.
2,000
Subtract: 
Other exp
500

SUB TOTAL
$95,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

ENDING CASH BALANCE
$54,750
$49,262
$44,998
$41,958
$40,142
$39,550
$38,958
$40,814
$42,670
$46,974
$51,278
$58,030
$67,230


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