Start-up Funding | |
Start-up Expenses to Fund | $67,000 |
Start-up Assets to Fund | $183,000 |
Total Funding Required | $250,000 |
Assets | |
Non-cash Assets from Start-up | $100,000 |
Cash Requirements from Start-up | $83,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $83,000 |
Total Assets | $183,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $100,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $100,000 |
Capital | |
Planned Investment | |
James Dunn | $50,000 |
Silent Partner | $100,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $150,000 |
Loss at Start-up (Start-up Expenses) | ($67,000) |
Total Capital | $83,000 |
Total Capital and Liabilities | $183,000 |
Total Funding | $250,000 |
D.A.P. Exports’ products are the following:
Auto part sales is a $100 million dollar industry in Latin America and the Caribbean. In these countries, a majority of the automobiles were manufactured in the 1980s. Finding replacement parts for these autos has become a difficult process as auto makers focus on cars produced in the last ten years.
Typically, old cars are used as a source of parts once they can no longer be repaired. The major obstacle to accessing the market is the sparse number of auto part stores in the region where the prices for auto parts are high. Most of these auto stores focus on the upscale customer and don’t carry a wide range of parts for the older autos.
D.A.P. Exports will sell parts to auto stores but we will also pursue a new distribution network as well. The largest buyers of auto parts in the region are taxi companies. D.A.P. Exports has established an extensive network of contacts with these companies, and we will sell directly to them.
D.A.P. Exports will focus on the following target customers:
It is expected that individuals will also purchase from D.A.P., but the repeat business, lower price sensitivity and larger volume per order mean that stores and taxi services will be more attractive customers for D.A.P.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Taxi Companies | 10% | 2,000 | 2,200 | 2,420 | 2,662 | 2,928 | 10.00% |
Auto Part Stores | 8% | 4,000 | 4,320 | 4,666 | 5,039 | 5,442 | 8.00% |
Total | 8.68% | 6,000 | 6,520 | 7,086 | 7,701 | 8,370 | 8.68% |
Currently, the markets are too small to attract many competitors. The auto parts shops in the region are not expanding to meet the demand for parts for older cars. They are instead focusing on the newer cars that are being imported into the countries by wealthy individuals.
Utilizing the taxi services as a distribution network as well as primary customers is an excellent strategy to capture market share of a segment that is currently being ignored by bigger players.
It is estimated that there are over 25,000 vehicles in the region that are used by taxi services. And that number is growing.
The taxi firms are excellent target customers for D.A.P. Export products. First, they represent the largest buying block in our target countries. In addition there is no established channel for them to purchase parts for their cars at this time.
By buying direct from D.A.P. Export, they reduce the cost of parts and they get exactly what they need quickly.
Although many of the taxi drivers are independent or work for small companies, the informal network within this group is extensive. There is a lot of downtime in this business, where drivers are waiting for fares. They will chat to friends/colleagues about their cars and their work. We will benefit from this through word-of-mouth recommendations.
Without much competition, the key to maintaining the customer base is the right parts, at a reasonable price, delivered quickly. As D.A.P. Exports meets customer’s demand for parts in a timely manner, sales will grow. The company will be able to strengthen the business relationships that will be critical when competition does emerge.
James has established export contacts in Latin America and the Caribbean, that will make the process of developing an export channel for car parts much easier. In these countries, much business in done by a handshake and word of mouth, rather than formal contracts. His experience and contacts will be invaluable in this environment.
The products that D.A.P is selling are made for older cars, and the trend in this country is towards newer cars, therefore domestic demand for these parts is falling. For this reason, James will be able to negotiate excellent prices on the products that he will sell. He will also order in bulk which will further increase his negotiating leverage.
The other competitive edge of D.A.P. Exports is that we can assemble a product package that is exactly what a specific customer wants. When the taxi service buys directly from D.A.P. Exports, they will receive the highest quality product at the lowest price. Previously, because of the lack of an organized, established channel, car owners had to spend time shopping around for parts. Therefore their cars would be off the road for longer periods of time–every day costing them more lost revenue.
The following is the sales forecast for three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Auto Parts | $410,000 | $480,000 | $550,000 |
Auto Lubricants | $186,000 | $230,000 | $274,000 |
Other | $0 | $0 | $0 |
Total Sales | $596,000 | $710,000 | $824,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Auto Parts | $200,000 | $240,000 | $275,000 |
Auto Lubricants | $93,000 | $115,000 | $137,000 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $293,000 | $355,000 | $412,000 |
The accompanying chart and table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Facility Set-up | 5/1/2002 | 5/20/2002 | $20,000 | James Dunn | Marketing |
Inventory Set-up | 5/1/2002 | 5/20/2002 | $100,000 | James Dunn | Department |
Marketing Campaign | 5/1/2002 | 6/15/2002 | $20,000 | James Dunn | Department |
Totals | $140,000 |
During the months of May and June the regional salespeople will deliver presentations to taxi firms and auto parts stores in the region. D.A.P. Export will offer a 15% discount on all purchases over $1,000.
The key to the marketing strategy is continuous follow-up with customers so we can anticipate the parts inventory that will be needed in the future.
James Dunn, owner of D.A.P Exports, will manage the business. He has twenty years of experience selling consumer products in Latin America and the Caribbean, so has extensive knowledge of this region and culture. In addition he has contacts with people and businesses that can only be gained from years of living or working in a country. James has been a salesperson for Axiom Food Products, Klymor Manufacturing, and Dudley Food Products, and during this time travelled to the Caribbean and Latin America at least three times a year.
James has excellent management skills. In his last position he managed a sales staff of five people, and each year the team beat its sales quota by more than 10%. He was successful in motivating the best performance of each staff member.
James has also had experience in running a small business in the past. He and his wife have successfully run a small catering business in their hometown for the past four years. James wife will continue to run this business while he focuses on launching D.A.P. Exports.
D.A.P. Exports’ personnel are as follows:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
James Dunn | $36,000 | $39,000 | $42,000 |
4 Facility Staff | $86,400 | $94,000 | $102,000 |
2 Sales Staff | $72,000 | $80,000 | $88,000 |
Total People | 7 | 7 | 7 |
Total Payroll | $194,400 | $213,000 | $232,000 |
The following is the financial plan for D.A.P. Exports.
The monthly break-even point, based on average monthly running costs and estimated variable costs of sales is shown in the table and chart below.
Break-even Analysis | |
Monthly Revenue Break-even | $42,743 |
Assumptions: | |
Average Percent Variable Cost | 49% |
Estimated Monthly Fixed Cost | $21,730 |
The following table and charts highlight the projected profit and loss for three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $596,000 | $710,000 | $824,000 |
Direct Cost of Sales | $293,000 | $355,000 | $412,000 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $293,000 | $355,000 | $412,000 |
Gross Margin | $303,000 | $355,000 | $412,000 |
Gross Margin % | 50.84% | 50.00% | 50.00% |
Expenses | |||
Payroll | $194,400 | $213,000 | $232,000 |
Sales and Marketing and Other Expenses | $6,000 | $10,000 | $15,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $7,200 | $8,000 | $9,000 |
Insurance | $0 | $0 | $0 |
Rent | $24,000 | $24,000 | $24,000 |
Payroll Taxes | $29,160 | $31,950 | $34,800 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $260,760 | $286,950 | $314,800 |
Profit Before Interest and Taxes | $42,240 | $68,050 | $97,200 |
EBITDA | $42,240 | $68,050 | $97,200 |
Interest Expense | $10,000 | $10,000 | $10,000 |
Taxes Incurred | $9,672 | $17,415 | $26,160 |
Net Profit | $22,568 | $40,635 | $61,040 |
Net Profit/Sales | 3.79% | 5.72% | 7.41% |
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $149,000 | $177,500 | $206,000 |
Cash from Receivables | $324,550 | $509,078 | $594,578 |
Subtotal Cash from Operations | $473,550 | $686,578 | $800,578 |
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 | $0 | $0 | $0 |
Subtotal Cash Received | $473,550 | $686,578 | $800,578 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $194,400 | $213,000 | $232,000 |
Bill Payments | $265,680 | $487,380 | $533,881 |
Subtotal Spent on Operations | $460,080 | $700,380 | $765,881 |
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 | $460,080 | $700,380 | $765,881 |
Net Cash Flow | $13,470 | ($13,802) | $34,697 |
Cash Balance | $96,470 | $82,668 | $117,365 |
The following table highlights the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $96,470 | $82,668 | $117,365 |
Accounts Receivable | $122,450 | $145,872 | $169,293 |
Inventory | $46,200 | $55,976 | $64,964 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $265,120 | $284,516 | $351,622 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $265,120 | $284,516 | $351,622 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $59,552 | $38,313 | $44,379 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $59,552 | $38,313 | $44,379 |
Long-term Liabilities | $100,000 | $100,000 | $100,000 |
Total Liabilities | $159,552 | $138,313 | $144,379 |
Paid-in Capital | $150,000 | $150,000 | $150,000 |
Retained Earnings | ($67,000) | ($44,432) | ($3,797) |
Earnings | $22,568 | $40,635 | $61,040 |
Total Capital | $105,568 | $146,203 | $207,243 |
Total Liabilities and Capital | $265,120 | $284,516 | $351,622 |
Net Worth | $105,568 | $146,203 | $207,243 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5013, Moter Vehicles Supplies and New Parts, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 19.13% | 16.06% | 12.20% |
Percent of Total Assets | ||||
Accounts Receivable | 46.19% | 51.27% | 48.15% | 25.10% |
Inventory | 17.43% | 19.67% | 18.48% | 46.10% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 15.10% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 86.30% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 13.70% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 22.46% | 13.47% | 12.62% | 46.60% |
Long-term Liabilities | 37.72% | 35.15% | 28.44% | 11.50% |
Total Liabilities | 60.18% | 48.61% | 41.06% | 58.10% |
Net Worth | 39.82% | 51.39% | 58.94% | 41.90% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 50.84% | 50.00% | 50.00% | 21.70% |
Selling, General & Administrative Expenses | 47.05% | 44.28% | 42.59% | 13.20% |
Advertising Expenses | 1.01% | 1.41% | 1.82% | 0.70% |
Profit Before Interest and Taxes | 7.09% | 9.58% | 11.80% | 1.40% |
Main Ratios | ||||
Current | 4.45 | 7.43 | 7.92 | 1.98 |
Quick | 3.68 | 5.97 | 6.46 | 0.78 |
Total Debt to Total Assets | 60.18% | 48.61% | 41.06% | 58.10% |
Pre-tax Return on Net Worth | 30.54% | 39.71% | 42.08% | 3.80% |
Pre-tax Return on Assets | 12.16% | 20.40% | 24.80% | 9.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 3.79% | 5.72% | 7.41% | n.a |
Return on Equity | 21.38% | 27.79% | 29.45% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.65 | 3.65 | 3.65 | n.a |
Collection Days | 56 | 92 | 93 | n.a |
Inventory Turnover | 5.31 | 6.95 | 6.81 | n.a |
Accounts Payable Turnover | 5.46 | 12.17 | 12.17 | n.a |
Payment Days | 28 | 38 | 28 | n.a |
Total Asset Turnover | 2.25 | 2.50 | 2.34 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.51 | 0.95 | 0.70 | n.a |
Current Liab. to Liab. | 0.37 | 0.28 | 0.31 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $205,568 | $246,203 | $307,243 | n.a |
Interest Coverage | 4.22 | 6.81 | 9.72 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.44 | 0.40 | 0.43 | n.a |
Current Debt/Total Assets | 22% | 13% | 13% | n.a |
Acid Test | 1.62 | 2.16 | 2.64 | n.a |
Sales/Net Worth | 5.65 | 4.86 | 3.98 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Auto Parts | 0% | $0 | $0 | $20,000 | $26,000 | $30,000 | $36,000 | $40,000 | $44,000 | $48,000 | $50,000 | $56,000 | $60,000 |
Auto Lubricants | 0% | $0 | $0 | $8,000 | $12,000 | $12,000 | $16,000 | $20,000 | $20,000 | $24,000 | $24,000 | $26,000 | $24,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $28,000 | $38,000 | $42,000 | $52,000 | $60,000 | $64,000 | $72,000 | $74,000 | $82,000 | $84,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Auto Parts | $0 | $0 | $10,000 | $13,000 | $15,000 | $18,000 | $20,000 | $22,000 | $24,000 | $25,000 | $23,000 | $30,000 | |
Auto Lubricants | $0 | $0 | $4,000 | $6,000 | $6,000 | $8,000 | $10,000 | $10,000 | $12,000 | $12,000 | $13,000 | $12,000 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $14,000 | $19,000 | $21,000 | $26,000 | $30,000 | $32,000 | $36,000 | $37,000 | $36,000 | $42,000 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
James Dunn | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
4 Facility Staff | 0% | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 |
2 Sales Staff | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |
Total Payroll | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 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 Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $28,000 | $38,000 | $42,000 | $52,000 | $60,000 | $64,000 | $72,000 | $74,000 | $82,000 | $84,000 | |
Direct Cost of Sales | $0 | $0 | $14,000 | $19,000 | $21,000 | $26,000 | $30,000 | $32,000 | $36,000 | $37,000 | $36,000 | $42,000 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $14,000 | $19,000 | $21,000 | $26,000 | $30,000 | $32,000 | $36,000 | $37,000 | $36,000 | $42,000 | |
Gross Margin | $0 | $0 | $14,000 | $19,000 | $21,000 | $26,000 | $30,000 | $32,000 | $36,000 | $37,000 | $46,000 | $42,000 | |
Gross Margin % | 0.00% | 0.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 56.10% | 50.00% | |
Expenses | |||||||||||||
Payroll | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | |
Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 15% | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 | $2,430 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | $21,730 | |
Profit Before Interest and Taxes | ($21,730) | ($21,730) | ($7,730) | ($2,730) | ($730) | $4,270 | $8,270 | $10,270 | $14,270 | $15,270 | $24,270 | $20,270 | |
EBITDA | ($21,730) | ($21,730) | ($7,730) | ($2,730) | ($730) | $4,270 | $8,270 | $10,270 | $14,270 | $15,270 | $24,270 | $20,270 | |
Interest Expense | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
Taxes Incurred | ($6,769) | ($6,769) | ($2,569) | ($1,069) | ($469) | $1,031 | $2,231 | $2,831 | $4,031 | $4,331 | $7,031 | $5,831 | |
Net Profit | ($15,794) | ($15,794) | ($5,994) | ($2,494) | ($1,094) | $2,406 | $5,206 | $6,606 | $9,406 | $10,106 | $16,406 | $13,606 | |
Net Profit/Sales | 0.00% | 0.00% | -21.41% | -6.56% | -2.61% | 4.63% | 8.68% | 10.32% | 13.06% | 13.66% | 20.01% | 16.20% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $7,000 | $9,500 | $10,500 | $13,000 | $15,000 | $16,000 | $18,000 | $18,500 | $20,500 | $21,000 | |
Cash from Receivables | $0 | $0 | $0 | $700 | $21,250 | $28,600 | $31,750 | $39,200 | $45,100 | $48,200 | $54,050 | $55,700 | |
Subtotal Cash from Operations | $0 | $0 | $7,000 | $10,200 | $31,750 | $41,600 | $46,750 | $55,200 | $63,100 | $66,700 | $74,550 | $76,700 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $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 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $7,000 | $10,200 | $31,750 | $41,600 | $46,750 | $55,200 | $63,100 | $66,700 | $74,550 | $76,700 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | $16,200 | |
Bill Payments | ($406) | ($798) | ($266) | $3,844 | $5,314 | $6,231 | $16,894 | $43,008 | $43,641 | $50,728 | $48,778 | $48,711 | |
Subtotal Spent on Operations | $15,794 | $15,402 | $15,934 | $20,044 | $21,514 | $22,431 | $33,094 | $59,208 | $59,841 | $66,928 | $64,978 | $64,911 | |
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 | $15,794 | $15,402 | $15,934 | $20,044 | $21,514 | $22,431 | $33,094 | $59,208 | $59,841 | $66,928 | $64,978 | $64,911 | |
Net Cash Flow | ($15,794) | ($15,402) | ($8,934) | ($9,844) | $10,236 | $19,169 | $13,656 | ($4,008) | $3,259 | ($228) | $9,572 | $11,789 | |
Cash Balance | $67,206 | $51,803 | $42,869 | $33,025 | $43,260 | $62,429 | $76,085 | $72,077 | $75,336 | $75,109 | $84,681 | $96,470 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $83,000 | $67,206 | $51,803 | $42,869 | $33,025 | $43,260 | $62,429 | $76,085 | $72,077 | $75,336 | $75,109 | $84,681 | $96,470 |
Accounts Receivable | $0 | $0 | $0 | $21,000 | $48,800 | $59,050 | $69,450 | $82,700 | $91,500 | $100,400 | $107,700 | $115,150 | $122,450 |
Inventory | $100,000 | $100,000 | $100,000 | $86,000 | $67,000 | $46,000 | $28,600 | $33,000 | $35,200 | $39,600 | $40,700 | $39,600 | $46,200 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $183,000 | $167,206 | $151,803 | $149,869 | $148,825 | $148,310 | $160,479 | $191,785 | $198,777 | $215,336 | $223,509 | $239,431 | $265,120 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $183,000 | $167,206 | $151,803 | $149,869 | $148,825 | $148,310 | $160,479 | $191,785 | $198,777 | $215,336 | $223,509 | $239,431 | $265,120 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $0 | $392 | $4,452 | $5,902 | $6,482 | $16,245 | $42,345 | $42,732 | $49,885 | $47,952 | $47,469 | $59,552 |
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 | $0 | $392 | $4,452 | $5,902 | $6,482 | $16,245 | $42,345 | $42,732 | $49,885 | $47,952 | $47,469 | $59,552 |
Long-term Liabilities | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Total Liabilities | $100,000 | $100,000 | $100,392 | $104,452 | $105,902 | $106,482 | $116,245 | $142,345 | $142,732 | $149,885 | $147,952 | $147,469 | $159,552 |
Paid-in Capital | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 |
Retained Earnings | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) | ($67,000) |
Earnings | $0 | ($15,794) | ($31,589) | ($37,583) | ($40,077) | ($41,172) | ($38,766) | ($33,560) | ($26,955) | ($17,549) | ($7,443) | $8,962 | $22,568 |
Total Capital | $83,000 | $67,206 | $51,411 | $45,417 | $42,923 | $41,828 | $44,234 | $49,440 | $56,045 | $65,451 | $75,557 | $91,962 | $105,568 |
Total Liabilities and Capital | $183,000 | $167,206 | $151,803 | $149,869 | $148,825 | $148,310 | $160,479 | $191,785 | $198,777 | $215,336 | $223,509 | $239,431 | $265,120 |
Net Worth | $83,000 | $67,206 | $51,411 | $45,417 | $42,923 | $41,828 | $44,234 | $49,440 | $56,045 | $65,451 | $75,557 | $91,962 | $105,568 |
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Below are the sales projections for Freeway Auto Parts Stores®, LLC it is based on the location of our business and other factors as it relates to auto parts retail stores start - ups in the United States; First Fiscal Year-: $250,000. Second Fiscal Year-: $450,000. Third Fiscal Year-: $750,000.
Our auto parts store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your auto parts store's business concept, market ...
Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements. For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced ...
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
Executive Summary. Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.
Why You Need a Business Plan for your Auto Parts Store Business. A business plan is required if you are seeking funding for your auto parts store. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, an auto parts store business plan helps you and your team stay focused.
This document provides a sample business plan for an auto spare parts shop. It discusses the auto parts store industry overview, including market size and growth projections. It then provides an executive summary of a sample business called Freeway Auto Parts Stores, which will be located in Charleston, South Carolina and will sell automotive parts, distribute brands, and offer repairs. The ...
This guide will help you create a comprehensive sales and marketing plan tailored to the business plan of an auto parts store. We'll begin by stressing the significance of a thorough market analysis to understand competitors and discern potential customer needs. Following that, we'll focus on establishing your store's brand identity and ...
How to Write a Auto Parts Business Plan in 7 Steps: 1. Describe the Purpose of Your Auto Parts Business. The first step to writing your business plan is to describe the purpose of your auto parts business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
4. Location and Space. After getting the plan properly, you must secure a retail location according to your business model. Choose a location that is easily accessible to your target customers and suppliers. Also, set up a spacious and organized warehouse to store and manage your spare parts inventory. 5.
The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your store's financial trajectory. Example: Precision Auto Parts aims for $4.5 million in annual revenue by 2028, targeting a 10% EBITDA margin.
3.3 How the Auto Parts Store will be started. Step1: Plan Everything. Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan.
The cost for start-up inventory (stocking with a wide range of car accessories and auto spare parts from different manufacturing brands) - $350,000. The cost for counter area equipment - $9,500. The cost for store equipment (cash register, security, ventilation, signage) - $13,750.
The business plan of the auto spare part business aims to maximize profit margins and ensure that the business achieves its goals and objectives. In essence, the main source of income is the retailing of a wide range of auto spare parts at attractive prices. This includes selling automotive parts and accessories including critical parts ...
3. Raise Your Startup Capital. You would need a moderate startup capital to establish a standard auto spare part. Well moderate can be relative, because the cost of renting a store might vary from location to location. The capital you raised is what you will use to stock - up your store. It is important you know that you will need an auto ...
This document outlines a business plan for an auto spare parts store that will sell auto parts and accessories. The plan discusses the mission, objectives, and keys to success of the business. It describes that the business will be solely owned and will sell a variety of auto parts and accessories from its physical location. Finally, it provides financial projections including startup costs ...
Sample Business Plan for Spare Parts - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
Starting Auto Spare Parts Store Business Plan (PDF) - StartupBiz Global (2022) - Free download as PDF File (.pdf) or read online for free. Start up business plan for spare parts retails
Executive Summary. D.A.P. Exports is a business that exports automobile parts and auto lubricants to Jamaica and other countries including Venezuela, Columbia and Ecuador. Many of the company's shipments combine American-made products with foreign parts with some re-packaging and labeling. Auto part sales is currently a $100 million industry ...
Auto Parts Store Business Plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Southeast Racing Parts is a new small business that will sell auto racing parts both through a brick-and-mortar store and mail order catalog. The business aims to be the top destination for entry-level and novice racing parts in the Carolinas region.
abcd business plan auto spare part network solution microwagon information system business plan overview auto spare part network solution micro wagon report. ... Business Plan for autospare parts sample. Course: marketing management (MKT 506) 61 Documents. Students shared 61 documents in this course. University: Al Yamamah University.
A Sample Auto Spare Parts Shop Business Plan Template _ TurkishSpareParts.com - Free download as PDF File (.pdf) or read online for free. Auto spare part start up amnual
Auto Spare Parts - Buisness plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. ASP aims to become a leading online store for auto spare parts and services in Egypt. It will launch an ecommerce website and mobile app allowing customers to track car maintenance, book service appointments, and order spare parts.