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Table of Contents

1.0 Executive Summary...............................................................................................................................1


Chart: Highlights..................................................................................................................................1
1.1 Objectives..........................................................................................................................................2
1.2 Mission...............................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Chart: Start-up......................................................................................................................................3
Table: Start-up Funding.......................................................................................................................4
..............................................................................................................................................................4
2.3 Company Locations and Facilities.....................................................................................................5
3.0 Products and Services............................................................................................................................5
4.0 Market Analysis Summary....................................................................................................................5
4.1 Market Segmentation.........................................................................................................................6
Table: Market Analysis........................................................................................................................6
5.0 Strategy and Implementation Summary.................................................................................................7
5.1 Marketing Strategy.............................................................................................................................7
5.2 Sales Strategy.....................................................................................................................................8
5.2.1 Sales Forecast..............................................................................................................................8
Chart: Sales Monthly.......................................................................................................................9
Chart: Sales by Year........................................................................................................................9
Table: Sales Forecast.....................................................................................................................10
6.0 Management Summary........................................................................................................................10
6.1 Personnel Plan..................................................................................................................................11
Table: Personnel.................................................................................................................................11
....................................................................................................................................................................11
7.0 Financial Plan.......................................................................................................................................12
7.1 Break-even Analysis........................................................................................................................12
Chart: Break-even Analysis...............................................................................................................12
Table: Break-even Analysis...............................................................................................................12
7.2 Projected Profit and Loss.................................................................................................................12
Table: Profit and Loss........................................................................................................................13
Chart: Profit Monthly.........................................................................................................................13
Chart: Profit Yearly............................................................................................................................14
Chart: Gross Margin Monthly............................................................................................................14
Chart: Gross Margin Yearly...............................................................................................................15
7.3 Projected Cash Flow........................................................................................................................15
Chart: Cash.........................................................................................................................................15
Table: Cash Flow...............................................................................................................................16
................................................................................................................................................................16
7.4 Projected Balance Sheet...................................................................................................................17
Page 1

Table of Contents

Table: Balance Sheet..........................................................................................................................17


................................................................................................................................................................17
7.5 Business Ratios................................................................................................................................18
Table: Ratios......................................................................................................................................18
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................4
Table: Cash Flow.........................................................................................................................................5
Table: Balance Sheet....................................................................................................................................6

Page 2

Dribbling Indoor Soccer

1.0 Executive Summary


Dribbling Indoor Soccer is the only indoor soccer facility in the Wingback County area.
The population of Wingback County is 240,000 residents. Dribbling Indoor Soccer has two
professional-style, lighted fields, (73' x 140') featuring Field Turf, for fast-action, fun soccer.
No matter what the weather conditions are, day or night, soccer players will find a safe, clean,
and friendly atmosphere for soccer enjoyment.
Several divisions for youth, men, women, and coed provide all players--from beginners to
highly skilled--the right environment for recreational yet competitive soccer. League play is
continuous year round. All league participants are required to become members of Dribbling
Indoor Soccer. The annual fee is $40. Team registration per session is $700. Each session has
10 games with championship awards being given to the first place team.
In addition, skills clinics are available for beginning adults and those wishing to polish their
skills. The two fields can also be rented for practices, birthday parties, corporate events,
preseason and post-season team parties, camps, clinics, school grad nights, fund raising
tournaments, organized lacrosse and field hockey leagues and more. A soccer store is on site
to provide leading soccer brands to players, teams, leagues and schools. The facility will also
have a small cafe that will serve drinks, sandwiches, and pastry.
Dribbling Indoor Soccer projects that the center will have more than 1,000 members, 30 adult
teams and 30 youth teams by the end of year one.

Chart: Highlights

Highlights
$500,000
$450,000
$400,000
$350,000

Sales

$300,000

Gross Margin

$250,000

Net Profit

$200,000
$150,000
$100,000
$50,000
$0
Year 1

Year 2

Year 3

Page 1

Dribbling Indoor Soccer

1.1 Objectives
The objectives for Dribbling Indoor Soccer are the following:

Build facility membership to more than 800.


Register 30 adult and 25 youth teams by the end of first year of operation.
Develop facility potential to be rented for special events.

1.2 Mission
The mission of Dribbling Indoor Soccer is to provide Wingback County residents with a state-ofthe-art soccer facility that will enable both youth and adults to enjoy the sport of soccer year
round.
2.0 Company Summary
Les Klew has been a fixture of the county's soccer community for the past twenty years. Over
the years he has coached hundreds of children. Many of his first players now have children of
their own. Currently, he is the supervisor of soccer officials for Wingback County area. His
level of expertise in soccer has made him an important contributor to the development of the
sport in Wingback County. He has instant credibility with players and coaches.
Like Les, his wife Noh has been an important booster of soccer in Wingback County, especially
women's soccer. Noh has coached numerous girls teams and has served as the chairperson of
the Wingback County Soccer Association.
The opening of Dribbling Indoor Soccer is a natural next step for this couple that has been so
important to the growth and love of soccer in the county.
Both will actively use their contacts to promote the facility to players and coaches.
2.1 Company Ownership
Dribbling Indoor Soccer is owned by Lester (Les) and Naomi (Noh) Klew. The business will
maintain a sole proprietorship status for at least the first two years of operation. The business
projects that the Ouisterfield facility will be so popular that a second indoor operation will be
established in the nearby city of Midfield. At that time the business will reorganize to become
an S Corporation.
2.2 Start-up Summary
The start-up cost of Dribbling Indoor soccer is focused primarily on the field installation and the
setup of the soccer store. The Les and Noh Klew will invest in the business, and, addition,
the Klews will obtain a long-term loan. Details of start-up expenses and funding and shown in
the tables and chart below.

Page 2

Dribbling Indoor Soccer

Chart: Start-up

Start-up
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Expenses

Assets

Investment

Loans

Page 3

Dribbling Indoor Soccer

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$80,000
$80,000
$160,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$50,000
$30,000
$0
$30,000
$80,000

Liabilities and Capital


Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$100,000
$0
$0
$100,000

Capital
Planned Investment
Klew, Les and Noh
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

Total Capital and Liabilities


Total Funding

$60,000
$0
$0
$60,000
($80,000)
($20,000)

$80,000
$160,000

Page 4

Dribbling Indoor Soccer

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Brochures
Insurance
Rent
Soccer Shop Setup
Field Installation
Cafe
Total Start-up Expenses

$1,000
$1,000
$3,000
$5,000
$10,000
$52,000
$8,000
$80,000

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$30,000
$5,000
$5,000
$40,000
$80,000

Total Requirements

$160,000

2.3 Company Locations and Facilities


Dribbling Indoor Soccer is located on West 18th Street in the city of Ouisterfield. The 30,000
square foot facility is a former warehouse that will be converted into a playing facility. The
location is easily accessible to all city residents. It is nearby Southtowne Park with is the
largest and most popular city park. This unique location is perfect. In addition, the facility has
ample off-street parking.
3.0 Products and Services
Dribbling Indoor Soccer is an indoor soccer facility that offers league play, soccer training and a
soccer shop. The facility is also available to be rented out for special events.
The following is the fee schedule:

Annual Facility Membership: $40


Team Registration per Session: $700
Facility Rental Fee: Member $55 - 65/hr, Non-Member $80/hr
Skill Clinic Fees: Range from $80 (per week) for children, to $400 for groups

They are led by soccer skill instructors with "A" Level Coaching Certification. The skill clinics
are geared toward the novice who wants to improve their soccer skills.
The facility also has a soccer shop that sells the very best in soccer gear, indoor and outdoor.
The shop has the best selection of turf shoes available in the city.
4.0 Market Analysis Summary
Soccer is a popular sport in Wingback County. Currently there are 6,000 children participating
in the youth soccer leagues, and 3,000 adults participating in the adult league. The number of

Page 5

Dribbling Indoor Soccer

players are growing dramatically. There are two factors that are impacting the popularity of
soccer.

The first is the large number of children in the county under the age of 12. There are
approximately 30,000 children in the county under the age of 12. The projection is that the
percentage of children under the age of 12 will continue to grow for the next five years.
The most popular sport with this age group is soccer.

The second factor is the growing number of young people between the ages of 24 - 35 that
are participating in team sports. Participation in coed softball has increased by 20% each
year for the past three years. The demand for fields has led to the county building four new
playing fields this year. Adult outdoor soccer league has grown by 50% over the past two
years. Currently, there are 24 adult league teams participating in the outdoor city soccer
league.

4.1 Market Segmentation


Dribbling Indoor soccer will focus on the following target customers:

Youths, ages 6-14 years of age.


Adults, ages 24-35 years of age.

Table: Market Analysis

Market Analysis
Potential Customers
Youth
Adults
Total

Year 1

Year 2

Year 3

Year 4

Year 5

40,000
30,000
70,000

44,800
33,000
77,800

50,176
36,300
86,476

56,197
39,930
96,127

62,941
43,923
106,864

Growth
12%
10%
11.16%

CAGR
12.00%
10.00%
11.16%

Page 6

Dribbling Indoor Soccer

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Youth
Adults

5.0 Strategy and Implementation Summary


Dribbling Indoor Soccer will aggressively pursue membership and team registration by
discounting both the membership fee and the team fee.

Membership Fee: Dribbling Indoor Soccer will offer a 25% discount on membership fees
for the first six months.
Team Fee: The team fee will be reduced by $100 if the team registers before the early
sign-up deadline.

In addition, we will sell the facility rental potential to local schools, churches, and civic
organizations.
5.1 Marketing Strategy
Marketing programs
The marketing strategy for Dribbling will differ throughout the year, depending upon demand
for the facility. During the winter, when the weather is bad, and most leagues play indoors we
will have to do very few marketing or advertising campaigns. During the summer however we
must make sure that the center retains top of mind share with local recreational soccer players,
and parents looking for activities for their children during school holidays.
Marketing programs during the summer will consist of:

Discounts: e.g. rent for one hour, get the second hour free.
Advertise in the sports section of the local paper.
Post fliers at other sports and recreation facilities.

Page 7

Dribbling Indoor Soccer

Pricing
All league participants are required to become members of Dribbling Indoor Soccer. The annual
fee for individuals is $40. Team registration per season is $700.
Teams can also purchase clinics. A 1/2 day clinic, that can include up to 15 people will cost
$400. Children's clinics/camps will be priced at $80 for five half day sessions.
The fields will be available for rent on an hourly basis to members. Rental of a field will cost
$55 per hour during the day and $65 per hour during the evenings and weekends.
5.2 Sales Strategy
Dribbling Indoor Soccer will sell the indoor facility to the current outdoor soccer teams. We will
operate a booth at the city's soccer fields on the weekends for the two months before Dribbling
opens. In addition, we will call the team captains and coaches directly and sell the quality and
convenience of the facility. Dribbling Indoor Soccer will offer membership rates for field rental
to these teams to get them in the facility. Spring is notorious for poor field conditions prior to
the beginning of the soccer season.
During the first two weekends in April, Dribbling Indoor Soccer will offer free indoor soccer
clinics for children and adults.
5.2.1 Sales Forecast
The following is the sales forecast for the next three years. The clinics, cafe, and the soccer
shop will have direct cost of sales. The clinics will be hiring the coaches to lead the clinics. The
soccer shop's direct cost will be the wholesale price of the shop's inventory.
Dribbling Indoor Soccer will make a strong push to expand league play in the summer. The
summer is usually softball and baseball season and only competitive soccer teams play during
the summer months. These competitive teams represent only 10% of young soccer players.
The outdoor adults soccer leagues also don't operate during the summer months, leaving a
large number of recreational soccer players with opportunity to play.
The only slow period for sales will be in November and December. Though league sessions end
in mid-November, December has proven to be a poor month to begin a new league session.

Page 8

Dribbling Indoor Soccer

Chart: Sales Monthly

Sales Monthly
$40,000
$36,000

Memberships

$32,000
$28,000

Leagues

$24,000

Rentals

$20,000

Clinics

$16,000

Soccer Shop

$12,000

Cafe

$8,000
$4,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12

Chart: Sales by Year

Sales by Year

$500,000

Memberships
Leagues

$400,000

Rentals
$300,000

Clinics
Soccer Shop

$200,000

Cafe
$100,000

$0
Year 1

Year 2

Year 3

Page 9

Dribbling Indoor Soccer

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$42,000
$185,000
$43,000
$38,000
$49,000
$48,000
$405,000

$65,000
$190,000
$55,000
$48,000
$54,000
$54,000
$466,000

$78,000
$210,000
$67,000
$58,000
$59,000
$60,000
$532,000

Year 1
$0
$0
$0
$20,500
$18,500
$12,000
$51,000

Year 2
$0
$0
$0
$21,000
$21,000
$14,000
$56,000

Year 3
$0
$0
$0
$24,000
$23,000
$16,000
$63,000

Sales
Memberships
Leagues
Rentals
Clinics
Soccer Shop
Cafe
Total Sales
Direct Cost of Sales
Memberships
Leagues
Rentals
Clinics
Soccer Shop
Cafe
Subtotal Direct Cost of Sales

6.0 Management Summary


Les and Noh Klew will manage the day-to-day operations of Dribbling Indoor Soccer. Both Les
and Noh are considered very people-oriented and excellent supervisors of staff. They are
familiar with every aspect of the sport and both are certified to serve as officials for indoor
soccer games.
Les has been instrumental in the popularity of soccer in Wingback County. He was a
founding member of the Wingback County Soccer Council. At the time there was only a handful
of people interested in sport. Over the next five years of his leadership, the Council acquired a
budget of $200,000, a staff of six and became the major catalyst for the city's new outdoor
soccer facility which will be hosting this year's Region 2 regional competition.
Noh was also an important influence in the development of soccer in Wingback County. Noh
served as the Council's marketing and fundraising coordinator for six years. She increased
donations by 15% each year over that period of time. She established the Council's marketing
campaign to increase youth and adult soccer teams in Wingback County.

Page 10

Dribbling Indoor Soccer

6.1 Personnel Plan


The personnel of Dribbling Indoor Soccer are as follows:

Manager (Klew, Les);


Asst manager (Noh Klew);
Senior staff (2);
Staff (2);
Store staff person (1);
Cafe staff (2).

A janitorial service will be contracted to clean the facility.


Clinic coaches will be hired, short term, as needed and paid out of clinic receipts.
Table: Personnel

Personnel Plan
Manager - Klew, Les
Asst. Manager - Noh Klew
Senior Staff
Staff Members
Soccer Store Staff Person
Cafe Staff
Total People
Total Payroll

Year 1

Year 2

Year 3

$33,600
$33,600
$52,800
$46,800
$19,200
$28,800
7

$36,000
$36,000
$55,000
$48,000
$21,000
$31,000
7

$38,000
$38,000
$57,000
$50,000
$23,000
$34,000
7

$214,800

$227,000

$240,000

Page 11

Dribbling Indoor Soccer

7.0 Financial Plan


The following is the financial plan for Dribbling Indoor Soccer.
7.1 Break-even Analysis
The monthly break-even as shown below, is based upon forecasted sales, listed earlier in this
plan, and all our anticipated monthly expenses.

Chart: Break-even Analysis

Break-even Analysis
$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
$0
$5,000

$10,000
$20,000
$30,000
$40,000
$50,000
$15,000
$25,000
$35,000
$45,000
$55,000

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$32,741

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

13%
$28,618

7.2 Projected Profit and Loss


The following table and charts will highlight projected profit and loss for the next three years.

Page 12

Dribbling Indoor Soccer

Table: Profit and Loss

Pro Forma Profit and Loss


Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$405,000
$51,000
$0
$51,000

$466,000
$56,000
$0
$56,000

$532,000
$63,000
$0
$63,000

Gross Margin
Gross Margin %

$354,000
87.41%

$410,000
87.98%

$469,000
88.16%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$214,800
$31,600
$6,000
$0
$4,800
$6,000
$48,000
$32,220
$0

$227,000
$33,600
$6,000
$0
$4,800
$6,000
$48,000
$34,050
$0

$240,000
$33,600
$6,000
$0
$4,800
$6,000
$48,000
$36,000
$0

Total Operating Expenses

$343,420

$359,450

$374,400

$10,580
$16,580
$10,000
$174

$50,550
$56,550
$10,000
$12,165

$94,600
$100,600
$10,000
$25,380

$406
0.10%

$28,385
6.09%

$59,220
11.13%

Expenses

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

Chart: Profit Monthly

Profit Monthly
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
($8,000)
($10,000)
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12

Page 13

Dribbling Indoor Soccer

Chart: Profit Yearly

Profit Yearly

$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Year 1

Year 2

Year 3

Chart: Gross Margin Monthly

Gross Margin Monthly


$40,000
$36,000
$32,000
$28,000
$24,000
$20,000
$16,000
$12,000
$8,000
$4,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12

Page 14

Dribbling Indoor Soccer

Chart: Gross Margin Yearly

Gross Margin Yearly

$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Year 1

Year 2

Year 3

7.3 Projected Cash Flow


The following table and chart highlight the projected cash flow for three years.

Chart: Cash

Cash
$60,000
$50,000
$40,000
$30,000

Net Cash Flow

$20,000

Cash Balance

$10,000
$0

Month 12

Month 11

Month 10

Month 9

Month 8

Month 7

Month 6

Month 5

Month 4

Month 3

Month 2

Month 1

($10,000)

Page 15

Dribbling Indoor Soccer

Table: Cash Flow

Pro Forma Cash Flow


Year 1

Year 2

Year 3

$405,000
$405,000

$466,000
$466,000

$532,000
$532,000

$0
$0
$0
$0
$0
$0
$0
$405,000

$0
$0
$0
$0
$0
$0
$0
$466,000

$0
$0
$0
$0
$0
$0
$0
$532,000

Year 1

Year 2

Year 3

$214,800
$166,660
$381,460

$227,000
$205,604
$432,604

$240,000
$225,798
$465,798

$0
$0
$0
$0
$0
$0
$0
$381,460

$0
$0
$0
$0
$0
$0
$0
$432,604

$0
$0
$0
$0
$0
$0
$0
$465,798

$23,540
$53,540

$33,396
$86,937

$66,202
$153,138

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 16

Dribbling Indoor Soccer

7.4 Projected Balance Sheet


The following table highlights the projected balance sheet for three years.
Table: Balance Sheet

Pro Forma Balance Sheet


Year 1

Year 2

Year 3

$53,540
$5,225
$5,000
$63,765

$86,937
$5,712
$5,000
$97,649

$153,138
$6,584
$5,000
$164,722

$40,000
$6,000
$34,000
$97,765

$40,000
$12,000
$28,000
$125,649

$40,000
$18,000
$22,000
$186,722

Year 1

Year 2

Year 3

$17,359
$0
$0
$17,359

$16,858
$0
$0
$16,858

$18,711
$0
$0
$18,711

Long-term Liabilities
Total Liabilities

$100,000
$117,359

$100,000
$116,858

$100,000
$118,711

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$60,000
($80,000)
$406
($19,594)
$97,765

$60,000
($79,594)
$28,385
$8,791
$125,649

$60,000
($51,209)
$59,220
$68,011
$186,722

Net Worth

($19,594)

$8,791

$68,011

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Page 17

Dribbling Indoor Soccer

7.5 Business Ratios


Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7997, Sport and Recreation Club, are shown for
comparison.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

15.06%

14.16%

2.76%

Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

5.34%
5.11%
65.22%
34.78%
100.00%

4.55%
3.98%
77.72%
22.28%
100.00%

3.53%
2.68%
88.22%
11.78%
100.00%

4.78%
28.67%
37.98%
62.02%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

17.76%
102.29%
120.04%
-20.04%

13.42%
79.59%
93.00%
7.00%

10.02%
53.56%
63.58%
36.42%

16.07%
26.99%
43.06%
56.94%

100.00%
87.41%
87.19%
1.48%
2.61%

100.00%
87.98%
81.62%
1.29%
10.85%

100.00%
88.16%
76.64%
1.13%
17.78%

100.00%
100.00%
73.13%
2.52%
2.03%

3.67
3.37
120.04%
-2.96%
0.59%

5.79
5.45
93.00%
461.27%
32.27%

8.80
8.45
63.58%
124.39%
45.31%

1.43
0.97
54.86%
3.12%
6.92%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin


Return on Equity

0.10%
0.00%

6.09%
322.89%

11.13%
87.07%

n.a
n.a

10.77
10.60
27
4.14

10.24
12.17
30
3.71

10.25
12.17
29
2.85

n.a
n.a
n.a
n.a

0.00
0.15

13.29
0.14

1.75
0.16

n.a
n.a

$46,406
1.06

$80,791
5.06

$146,011
9.46

n.a
n.a

0.24
18%
3.37
0.00

0.27
13%
5.45
53.01

0.35
10%
8.45
7.82

n.a
n.a
n.a
n.a

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth

Page 18

Dribbling Indoor Soccer

Dividend Payout

0.00

0.00

0.00

n.a

Page 19

Appendix
Table: Sales Forecast

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

$3,000
$21,000
$4,000
$4,000
$4,000
$5,000
$41,000

$3,000
$21,000
$4,000
$4,000
$4,000
$5,000
$41,000

$4,000
$20,000
$4,000
$4,000
$4,000
$5,000
$41,000

Month 10

Month 11

Month 12

Sales
Memberships
Leagues
Rentals
Clinics
Soccer Shop
Cafe
Total Sales
Direct Cost of Sales

0%
0%
0%
0%
0%
0%

$3,000
$8,000
$3,000
$0
$3,000
$0
$17,000
Month 1

$6,000
$11,000
$3,000
$3,000
$4,000
$4,000
$31,000
Month 2

$7,000
$15,000
$3,000
$3,000
$4,000
$5,000
$37,000
Month 3

$3,000
$19,000
$3,000
$3,000
$4,000
$5,000
$37,000
Month 4

$3,000
$19,000
$3,000
$3,000
$4,000
$5,000
$37,000
Month 5

$3,000
$21,000
$4,000
$4,000
$5,000
$5,000
$42,000
Month 6

$3,000
$21,000
$5,000
$4,000
$4,000
$5,000
$42,000
Month 7

$3,000
$3,000
$5,000
$4,000
$4,000
$3,000
$22,000
Month 8

$1,000
$6,000
$2,000
$2,000
$5,000
$1,000
$17,000
Month 9

Memberships

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Leagues

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rentals

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Clinics

$1,500

$1,500

$1,500

$1,500

$1,500

$2,000

$2,000

$2,000

$1,000

$2,000

$2,000

$2,000

Soccer Shop

$1,000

$1,500

$1,500

$1,500

$1,500

$2,000

$1,500

$1,500

$2,000

$1,500

$1,500

$1,500

$0

$1,000

$1,250

$1,250

$1,250

$1,250

$1,250

$750

$250

$1,250

$1,250

$1,250

$2,500

$4,000

$4,250

$4,250

$4,250

$5,250

$4,750

$4,250

$3,250

$4,750

$4,750

$4,750

Cafe
Subtotal Direct Cost of Sales

Page 1

Appendix
Table: Personnel

Personnel Plan

Manager - Klew, Les


Asst. Manager - Noh Klew
Senior Staff
Staff Members
Soccer Store Staff Person
Cafe Staff
Total People
Total Payroll

0%
0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

Month
10
$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7
$17,900

Month
11
$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7
$17,900

Month
12
$2,800
$2,800
$4,400
$3,900
$1,600
$2,400
7
$17,900

Page 2

Appendix
Table: General Assumptions

General Assumptions
Plan Month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

Month 12
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
Tax 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%

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

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and


Loss
Month 1
Sales
Direct Cost of Sales
Other Production
Expenses
Total Cost of Sales
Gross Margin
Gross Margin %

Month 10

Month 11

Month 12

$17,000

$31,000

Month 2

$37,000

Month 3

$37,000

Month 4

$37,000

Month 5

$42,000

Month 6

$42,000

Month 7

$22,000

Month 8

$17,000

Month 9

$41,000

$41,000

$41,000

$2,500

$4,000

$4,250

$4,250

$4,250

$5,250

$4,750

$4,250

$3,250

$4,750

$4,750

$4,750

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,500

$4,000

$4,250

$4,250

$4,250

$5,250

$4,750

$4,250

$3,250

$4,750

$4,750

$4,750

$14,500

$27,000

$32,750

$32,750

$32,750

$36,750

$37,250

$17,750

$13,750

$36,250

$36,250

$36,250

85.29%

87.10%

88.51%

88.51%

88.51%

87.50%

88.69%

80.68%

80.88%

88.41%

88.41%

88.41%

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$2,800

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

Expenses
Payroll
Sales and Marketing and
Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating
Expenses
Profit Before Interest and
Taxes
EBITDA

15%

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$2,685
$0

$26,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

$28,785

($12,285)

($1,785)

$3,965

$3,965

$3,965

$7,965

$8,465

($11,035)

($15,035)

$7,465

$7,465

$7,465

($11,785)

($1,285)

($10,535)

($14,535)

$7,965

$7,965

$7,965

$833

$833

$833

$1,990

$1,990

$1,990

$4,465

$4,465

$4,465

$8,465

$8,965

$833

$833

$833

$833

$833

$833

($3,936)

($786)

$939

$939

$939

$2,140

$2,290

Net Profit

($9,183)

($1,833)

$2,192

$2,192

$2,192

$4,992

Net Profit/Sales

-54.02%

-5.91%

5.92%

5.92%

5.92%

11.89%

Interest Expense
Taxes Incurred

$833

$833

$833

($3,561)

($4,761)

$5,342

($8,308)

($11,108)

$4,642

$4,642

$4,642

12.72%

-37.76%

-65.34%

11.32%

11.32%

11.32%

Page 4

Appendix
Table: Cash Flow

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

$17,000

$31,000

$37,000

$37,000

$37,000

$42,000

$42,000

$22,000

$17,000

$41,000

$41,000

$41,000

Subtotal Cash from Operations

$17,000

$31,000

$37,000

$37,000

$37,000

$42,000

$42,000

$22,000

$17,000

$41,000

$41,000

$41,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interestfree)


New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$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

$17,000

$31,000

$37,000

$37,000

$37,000

$42,000

$42,000

$22,000

$17,000

$41,000

$41,000

$41,000

Additional Cash Received


Sales Tax, VAT, HST/GST Received
New Current Borrowing

Subtotal Cash Received


Expenditures

0.00%

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

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$17,900

$209

$6,584

$15,378

$16,674

$16,408

$16,518

$19,641

$17,496

$11,266

$8,975

$19,553

$17,958

$18,109

$24,485

$33,278

$34,574

$34,308

$34,418

$37,541

$35,396

$29,166

$26,875

$37,453

$35,858

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current


Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$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

$18,109

$24,485

$33,278

$34,574

$34,308

$34,418

$37,541

$35,396

$29,166

$26,875

$37,453

$35,858

Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Page 5

Appendix
Net Cash Flow

($1,109)

Cash Balance

$28,891

$6,516

$3,722

$2,426

$2,692

$7,582

$4,459

$35,406

$39,128

$41,555

$44,247

$51,829

$56,288

($13,396)

($12,166)

$14,126

$3,547

$5,142

$42,892

$30,725

$44,851

$48,398

$53,540

Table: Balance Sheet

Pro Forma Balance Sheet


Month 1
Assets

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Starting
Balances

Month
10

Month
11

Month
12

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$30,000
$5,000
$5,000
$40,000

$28,891
$3,500
$5,000
$37,391

$35,406
$4,400
$5,000
$44,806

$39,128
$4,675
$5,000
$48,803

$41,555
$4,675
$5,000
$51,230

$44,247
$4,675
$5,000
$53,922

$51,829
$5,775
$5,000
$62,604

$56,288
$5,225
$5,000
$66,513

$42,892
$4,675
$5,000
$52,567

$30,725
$3,575
$5,000
$39,300

$44,851
$5,225
$5,000
$55,076

$48,398
$5,225
$5,000
$58,623

$53,540
$5,225
$5,000
$63,765

$40,000
$0
$40,000
$80,000

$40,000
$500
$39,500
$76,891

$40,000
$1,000
$39,000
$83,806

$40,000
$1,500
$38,500
$87,303

$40,000
$2,000
$38,000
$89,230

$40,000
$2,500
$37,500
$91,422

$40,000
$3,000
$37,000
$99,604

$40,000
$3,500
$36,500
$103,013

$40,000
$4,000
$36,000
$88,567

$40,000
$4,500
$35,500
$74,800

$40,000
$5,000
$35,000
$90,076

$40,000
$5,500
$34,500
$93,123

$40,000
$6,000
$34,000
$97,765

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
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
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$6,073
$0
$0
$6,073

$14,822
$0
$0
$14,822

$16,127
$0
$0
$16,127

$15,861
$0
$0
$15,861

$15,861
$0
$0
$15,861

$19,051
$0
$0
$19,051

$17,118
$0
$0
$17,118

$10,979
$0
$0
$10,979

$8,321
$0
$0
$8,321

$18,954
$0
$0
$18,954

$17,359
$0
$0
$17,359

$17,359
$0
$0
$17,359

Long-term Liabilities
Total Liabilities

$100,000
$100,000

$100,000
$106,073

$100,000
$114,822

$100,000
$116,127

$100,000
$115,861

$100,000
$115,861

$100,000
$119,051

$100,000
$117,118

$100,000
$110,979

$100,000
$108,321

$100,000
$118,954

$100,000
$117,359

$100,000
$117,359

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$60,000
($80,000)
$0
($20,000)
$80,000

$60,000
($80,000)
($9,183)
($29,183)
$76,891

$60,000
($80,000)
($11,016)
($31,016)
$83,806

$60,000
($80,000)
($8,824)
($28,824)
$87,303

$60,000
($80,000)
($6,631)
($26,631)
$89,230

$60,000
($80,000)
($4,439)
($24,439)
$91,422

$60,000
($80,000)
$553
($19,447)
$99,604

$60,000
($80,000)
$5,895
($14,105)
$103,013

$60,000
($80,000)
($2,413)
($22,413)
$88,567

$60,000
($80,000)
($13,521)
($33,521)
$74,800

$60,000
($80,000)
($8,878)
($28,878)
$90,076

$60,000
($80,000)
($4,236)
($24,236)
$93,123

$60,000
($80,000)
$406
($19,594)
$97,765

Net Worth

($20,000)

($29,183)

($31,016)

($28,823)

($26,631)

($24,439)

($19,447)

($14,105)

($22,413)

($33,520)

($28,878)

($24,236)

($19,594)

Page 6