Day Spa business plan – freelance marketing 100 business plans

Day Spa business plan

Executive Summary

The purpose of executive summary is to summarize the highlights of the project and to provide a brief snapshot of the business. The reader can specify the size and type of the company, its management team, products and services it offers to the target markets, and the financial goals. If your business plan is designed to help you get a funding, include the information about the amount and purpose of the funds you are seeking.

Example: ABC Day Spa LLC is a new upscale destination in Freeway County, CA, offering a complete day spa experience. To find a comprehensive day spa, residents currently have to travel into the city. The going rate for massage in Freeway County is $70-$90 per hour, which is slightly above most of the other residential areas in the metropolis, which can even be as low as $40 per hour in saturated or low-income areas.

 

Mission

A mission statement is a key tool that can be as important as your business plan. It captures, in a few succinct sentences, the essence of your business’s goals and the philosophies underlying them

Example: ABC Day Spa LLC’s mission is to run a profitable business by providing high-end therapeutic massage and aesthetician services in a caring, upscale, professional environment. We offer massage in a variety of styles – traditional Swedish Massage, Sports Massage, Deep Tissue work, Sports Massage, Hot Stone Massage, Reflexology, and others. Our licensed aestheticians offer the latest in skin treatments, body treatments and anti-aging therapies.
Keys to Success

The combination of important facts that is required in order to accomplish one or more desirable business goals for the industry. One of the key to success is promoting & advertising achieving the customers mind.

Example: ABC Day Spa LLC’s keys to success include:

  • Achieve $62,550 in sales the six month after opening by performing 29 services per day.
  • Have a local client return rate of 90% by the end of the first six months.
  • Become an established community Spa destination by the end of the first 12 months.
  • Perform 53 services per day by the end of the first year.

Company Summary

The Company Summary of a business plan provides a high level look at how all of the different elements of your business fit together, including information about the nature of your business and the success factors that you feel will make your business successful and consequently, profitable.

Example: ABC Day Spa LLC is a new destination offering customers the combination of massage, body treatments, facials and anti-aging treatments. The settings are upscale, beautiful and serene. We cater to both men and women and offer the latest in skin care products and therapies.

Start-up Summary

Start-up summary covers the Non-recurring costs associated with setting up a business, such as accountant’s fees, legal fees, registration charges, as well as advertising, promotional activities, and employee training. Also called startup expenses, preliminary expenses, or pre-opening

 

Example: Mr. Michel Clerk will invest personal funds. Massage table equipment – $3,795 (5 complete)

Aesthetician Equipment – $2,800 (2 room setup)

Decor and Furnishings – $13,000

Envision Software & Equipment – $4,000

Signage – $3,500

Backbar Supplies – $5,000

Table: Start-up funding

Start-up Funding
Start-up Expenses to Fund $40,800
Start-up Assets to Fund $109,200
Total Funding Required $150,000
Assets
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $9,200
Additional Cash Raised $0
Cash Balance on Starting Date $9,200
Total Assets $109,200
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
Richard $50,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $50,777
Loss at Start-up (Start-up Expenses) ($40,800)
Total Capital $9,580
Total Capital and Liabilities $169,800
Total Funding $161,888

 

Table: Start Up

Start-up
Requirements
Start-up Expenses
Legal $3,777
Stationery etc. $300
Rent $1,000
Start-Up Inventory $15,000
Leased Equipment $1,500
Start-Up Equipment $20,000
Other $0
Total Start-up Expenses $40,800
Start-up Assets
Cash Required $9,580
Other Current Assets $0
Long-term Assets $122,000
Total Assets $169,800
Total Requirements $161,888

 

The following table and chart show projected initial start-up costs ABC Day Spa LLC

 

Services

By service we mean functionalities or support provided. Accounting, design, maintenance, printing, and supply of temporary personnel, etc., provided by specialized firms to other firms are deemed as service

Example: ABC Day Spa LLC offers a full retail line that complements the services menu.  We are part of the retail health and beauty industry, which has four major types:

1) Salons with Day Spa Services:  Hair salons that offer limited spa services like massage and facials.

2) Heath & Beauty Products:  Stores selling only merchandise products covering the wide range of products available, but not inclusive of those sold by salons and spas.

3) Hotels with Spa Services:  Major hotels with on-site spas.

4) Medical Spa:  Focus mainly on non surgical cosmetic but also have massage therapy, facials and micro dermabrasion.

Market Analysis Summary

The market analysis is one of the most important parts of any start-up strategy. If you do it right, and you will have a clear idea of the path down which you are headed. A good market analysis will enable you to lure investors, sidestep pitfalls, and most importantly, attract customers. A market analysis studies the attractiveness and the dynamics of a special market within a special industry.

 

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Drive-Thru 15% 4,000 4,600 5,290 6,084 6,997 15.00%
Summer visitors 15% 40,000 46,000 52,900 60,835 69,960 15.00%
Drop-In 15% 40,000 46,000 52,900 60,835 69,960 15.00%
Other 2% 5000 5600 6000 7000 11000 0.00%
Total 15.00% 44,000 50,600 58,190 66,919 76,957 15.00%

 

Example: ABC Day Spa LLC’s target market strategy is based on becoming a destination for people who are looking to get away for a vacation or an area to hunt in. Our marketing strategy is based on superior performance in the following areas:

  • Quality facilities
  • Beautiful location
  • Customer service

Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, businesses, or countries that have common needs and priorities, and then designing and implementing strategies to target them.

 

Example: The table and chart below further estimates the total market potential of services rendered by ABC Day Spa LLC in the market area.

 

Target Market Segment Strategy

Marketers must address prospects who seek to be heard and valued while they learn about housing options. Now more than ever, marketing is about engaging and building relationships while informing the masses. Over recent years

Example: The niche where ABC Day Spa LLC positions itself represents one convenient location for business clients and tourists.

Strategy and Implementation Summary

Understanding your competition’s strengths and weaknesses is certainly important, but defining a strategy that highlights your superiority in the market is just as essential. A Day Spa business plan’s Strategy and Implementation Summary emphasizes on what makes your business concept compelling and how you will attract and maintain a customer base. The first component of your Strategy and Implementation plan is a strategic position

Example: ABC Day Spa LLC will promote through our website by using:

  • Detailed photos of the Roadhouse and surrounding area.
  • Price list of our rooms and our restaurant menu.

Competitive Edge

Establishing your competitive edge is an important part of the feasibility study you do prior to writing your start-up Day Spa business plan or your year-end strategic planning for next year’s business expansion. It entails research into your competition, how their buildings differ from yours, how their operations differ from yours and how their marketing differs from yours

Example: ABC Day Spa LLC sets itself apart from similar competition in the following ways.

  • Location: Having a Day Spa, restaurant, bar all at one facility is a huge plus
  • Our services: Each quality service is individually decorated with a country setting that is tasteful and comfortable.
  • Customer service: Customer service is our number one priority.

Sales Forecast

Sales forecasts are estimates of your sales for the forecast period. The sales forecast establishes the level of activity used in all the other forecasts and budgets for the business. If your sales forecast varies wildly from your actual results, your cash flow and profitability forecasts will similarly be inaccurate.

 

Table: Sales Forecast

 

Sales Forecast
Year 1 Year 2 Year 3
Sales
Summer customers $217,000 $219,000 $215,000
Drop-In Customers $98,222 $110,111 $120,123
Total Sales $235,000 $252,000 $275,000
Direct Cost of Sales Year 1 Year 2 Year 3
Summer Customers $5,550 $6,200 $6,800
Drop-In Customers $4,700 $5,500 $6,000
Subtotal Direct Cost of Sales $21,250 $22,780 $24,833

 

Example: The sales forecast for the upcoming year is based on a 10% growth rate for direct sales. The Lowland Heights Roadhouse has 10 rooms to offer its guests at a rate of $46 – $81 per night. We expect the number of rooms occupied to increase as the year progresses.

Chart: Sales Monthly

 

 

 

Chart: Sales Yearly

 

 

Management Summary

An executive summary, or management summary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all.

Example: Mr. Clerk will operate as an owner-occupied business. A small staff will be hired early next year consisting of a cook and maid along with a maintenance man.

Both of these technicians have a history of exceptional workmanship and great customer relations.

Personnel Plan

It is necessary to determine the natural attrition of the personnel in future years. The difference between supply and demand will indicate the future quantitative and qualitative need for personnel. This information has an effect on the recruitment and development planning of the personnel and on the measures taken.

Example: The personnel needed for the ABC Day Spa LLC are the following:

  • Manager
  • Assistant manager
  • Cook – to be hired in 2011
  • Maintenance person – to be hired in 2011
  • Cleaning person – to be hired in 2011

Break-even Analysis

Breakeven analysis is used to determine when your business will be able to cover all its expenses and begin to make a profit. It is important to identify your start-up costs, which will help you determine your sales revenue needed to pay ongoing business expenses.

 

Table: Break-even Analysis

 

Break-even Analysis
Monthly Revenue Break-even $21,776
Assumptions:
Average Percent Variable Cost 4%
Estimated Monthly Fixed Cost $21,776

 

Example: The monthly break-even point is presented in the table and chart below by ABC Day Spa LLC

 

Projected Profit and Loss

This is an essential document that either you or your accountant should put together. It will be a useful tracking tool for objectively determining whether your business is likely to make a profit and be successful or generate losses and eventually fail. Your projected profit and loss statement will list revenues, your cost for goods or services provided, operating expenses, and net income or loss.

Example: ABC Day Spa LLC preparing a projected profit and loss statement for existing business.

The following table and chart show projected profit and loss for some years.

 

Table: Pro Forma Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $343,000 $346,000 $355,000
Direct Cost of Sales $10,250 $11,700 $12,800
Other Production Expenses $0 $0 $0
Total Cost of Sales $10,250 $11,700 $12,800
Gross Margin $224,750 $240,300 $262,200
Gross Margin % 95.64% 95.36% 95.35%
Expenses
Payroll $144,000 $156,000 $174,000
Sales and Marketing and Other Expenses $7,400 $5,400 $5,400
Depreciation $2,220 $2,220 $2,220
Leased Equipment $15,400 $18,400 $19,400
Utilities $2,400 $2,400 $2,400
Insurance $0 $0 $0
Rent $12,000 $12,000 $12,000
Payroll Taxes $21,600 $23,400 $26,100
Other $0 $0 $0
Total Operating Expenses $204,020 $215,820 $236,520
Profit Before Interest and Taxes $20,730 $24,480 $25,680
EBITDA $22,950 $26,700 $27,900
Interest Expense $10,000 $10,000 $10,000
Taxes Incurred $3,219 $4,344 $4,704
Net Profit $7,511 $10,136 $10,976
Net Profit/Sales 4.20% 5.04% 4.96%

 

Chart: Profit monthly

 

Chart: Profit Yearly

Example: The following table and charts show the Marginal sales forecast for ABC Day Spa LLC

 

Chart: Gross Marginal Monthly

 

 

Example: The following table and charts show the Gross margin forecast for ABC Day Spa LLC

 

Chart: Gross Margin Yearly

 

 

Projected Cash Flow

Cash flow management is a key aspect of financial management of a business, planning its future cash requirements to avoid a crisis of liquidity. Cash flow forecasting is important because if a business runs out of cash and is not able to obtain new finance.

Example: The table and chart show the projected cash flow for three years by ABC Day Spa LLC .

Table: Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $324,000 $345,000 $411,000
Subtotal Cash from Operations $235,111 $254,000 $285,000
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 $235,000 $252,000 $275,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $144,000 $156,000 $174,000
Bill Payments $74,582 $83,456 $87,462
Subtotal Spent on Operations $218,582 $239,456 $261,462
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 $218,582 $239,456 $261,462
Net Cash Flow $16,418 $12,544 $13,538
Cash Balance $32,618 $39,164 $54,740

Chart: Cash

Projected Balance Sheet

A projected balance sheet communicates expected changes in future asset investments, outstanding liabilities and equity financing. Businesses may consider the creation of a projected balance sheet as a way to facilitate long-term, strategic planning.

Example: ABC Day Spa LLC’s market growth & strategic analysis will create a high value of gross margin in the market.

The table shows the projected balance sheet for three years by ABC Day Spa LLC

Table: Pro Forma Balance Sheet

 

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $25,625 $38,125 $61,789
Other Current Assets $0 $0 $0
Total Current Assets $25,618 $38,162 $51,700
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $2,220 $4,440 $6,660
Total Long-term Assets $97,780 $95,560 $93,340
Total Assets $123,398 $133,722 $145,040
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $6,687 $6,875 $7,217
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $6,687 $6,875 $7,217
Long-term Liabilities $100,000 $100,000 $100,000
Total Liabilities $106,687 $106,875 $107,217
Paid-in Capital $50,000 $50,000 $50,000
Retained Earnings ($40,800) ($33,289) ($23,153)
Earnings $7,511 $10,136 $10,976
Total Capital $16,711 $26,847 $37,823
Total Liabilities and Capital $123,398 $133,722 $145,040
Net Worth $16,774 $26,287 $35,861

Business Ratios

It includes dozens of standard business ratios calculated from Day Spa business plans financials, and used and expected by bankers, financial analysts, and investors. It also includes a column of statistical indicators for the specific type of business. This industry information is classified and categorized by Standard Industrial Classification.

Example: Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Classification (SC) shown for comparison.

Table: Ratio Analysis

 

 

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 7.23% 9.13% 6.10%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 27.50%
Total Current Assets 20.76% 28.54% 35.65% 76.90%
Long-term Assets 79.24% 71.46% 64.35% 23.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.42% 5.14% 4.98% 36.90%
Long-term Liabilities 81.04% 74.78% 68.95% 15.80%
Total Liabilities 86.46% 79.92% 73.92% 52.70%
Net Worth 13.54% 20.08% 26.08% 47.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.64% 95.36% 95.35% 0.00%
Selling, General & Administrative Expenses 92.44% 91.33% 92.26% 83.50%
Advertising Expenses 0.85% 0.00% 0.00% 0.50%
Profit Before Interest and Taxes 8.82% 9.71% 9.34% 3.10%
Main Ratios
Current 3.83 5.55 7.16 2.26
Quick 3.83 5.55 7.16 1.47
Total Debt to Total Assets 86.46% 79.92% 73.92% 52.70%
Pre-tax Return on Net Worth 64.21% 53.94% 41.46% 7.00%
Pre-tax Return on Assets 8.70% 10.83% 10.81% 14.70%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 3.20% 4.02% 3.99% n.a
Return on Equity 44.95% 37.75% 29.02% n.a
Activity Ratios
Accounts Payable Turnover 12.15 12.17 12.17 n.a
Payment Days 27 30 29 n.a
Total Asset Turnover 1.9 1.88 1.9 n.a
Debt Ratios
Debt to Net Worth 6.38 3.98 2.83 n.a
Current Liab. to Liab. 0.06 0.06 0.07 n.a
Liquidity Ratios
Net Working Capital $18,931 $31,287 $44,483 n.a
Interest Coverage 2.07 2.45 2.57 n.a
Additional Ratios
Assets to Sales 0.53 0.53 0.53 n.a
Current Debt/Total Assets 5% 5% 5% n.a
Acid Test 3.83 5.55 7.16 n.a
Sales/Net Worth 14.06 9.39 7.27 n.a
Dividend Payout 0 0 0 n.a

 

Table: Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Sales
Service Contracts 0% $9,000 $11,000 $12,000 $12,000 $12,000 $12,000
Walk-In Customers 0% $4,000 $5,000 $7,000 $8,000 $9,000 $10,000
Total Sales $13,000 $16,000 $19,000 $20,000 $21,000 $22,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Service Contracts $300 $400 $450 $400 $400 $450
Walk-In Customers $200 $200 $300 $350 $350 $400
Subtotal Direct Cost of Sales $500 $600 $750 $750 $750 $850

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$12,000 $11,000 $12,000 $11,000 $12,000 $11,000
$8,000 $9,000 $10,000 $10,000 $9,000 $9,000
$20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$500 $500 $475 $575 $600 $500
$450 $450 $500 $500 $500 $500
$950 $950 $975 $1,075 $1,100 $1,000

 

 

Table: Personal Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Richard Abbey 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
John Williamson 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Jim Logan 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Other 0% $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0
Total Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$4,000 $4,000 $4,000 $4,000 $4,000 $4,000
$4,000 $4,000 $4,000 $4,000 $4,000 $4,000
$4,000 $4,000 $4,000 $4,000 $4,000 $4,000
$0 $0 $0 $0 $0 $0
0 0 0 0 0 0
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000

 

Example: The following table and charts show the projected general assumption forecast for ABC Day Spa LLC

Table: General Assumption

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Plan Month 1 2 3 4 5 6
Current Interest Rate 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%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
7 8 9 10 11 12
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%
0 0 0 0 0 0

 

 

Example: The following table and charts show the projected profit & loss forecast for ABC Day Spa LLC

 

Table: Profit & loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Sales $13,000 $16,000 $19,000 $20,000 $21,000 $22,000
Direct Cost of Sales $500 $600 $750 $750 $750 $850
Other Production Expenses $0 $0 $0 $0 $0 $0
Total Cost of Sales $500 $600 $750 $750 $750 $850
Gross Margin $12,500 $15,400 $18,250 $19,250 $20,250 $21,150
Gross Margin % 96.15% 96.25% 96.05% 96.25% 96.43% 96.14%
Expenses
Payroll $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Sales and Marketing and Other Expenses $800 $800 $900 $1,000 $500 $400
Depreciation $185 $185 $185 $185 $185 $185
Leased Equipment $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Utilities $200 $200 $200 $200 $200 $200
Insurance $0 $0 $0 $0 $0 $0
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Other $0 $0 $0 $0 $0 $0
Total Operating Expenses $17,185 $17,185 $17,285 $17,385 $16,885 $16,785
Profit Before Interest and Taxes ($4,685) ($1,785) $965 $1,865 $3,365 $4,365
EBITDA ($4,500) ($1,600) $1,150 $2,050 $3,550 $4,550
Interest Expense $833 $833 $833 $833 $833 $833
Taxes Incurred ($1,655) ($786) $39 $309 $759 $1,060
Net Profit ($3,863) ($1,833) $92 $722 $1,772 $2,472
Net Profit/Sales -29.71% -11.46% 0.49% 3.61% 8.44% 11.24%

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$20,000 $20,000 $22,000 $21,000 $21,000 $20,000
$950 $950 $975 $1,075 $1,100 $1,000
$0 $0 $0 $0 $0 $0
$950 $950 $975 $1,075 $1,100 $1,000
$19,050 $19,050 $21,025 $19,925 $19,900 $19,000
95.25% 95.25% 95.57% 94.88% 94.76% 95.00%
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000
$500 $500 $300 $600 $600 $500
$185 $185 $185 $185 $185 $185
$1,200 $1,200 $1,200 $1,200 $1,200 $1,200
$200 $200 $200 $200 $200 $200
$0 $0 $0 $0 $0 $0
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,800 $1,800 $1,800 $1,800 $1,800 $1,800
$0 $0 $0 $0 $0 $0
$16,885 $16,885 $16,685 $16,985 $16,985 $16,885
$2,165 $2,165 $4,340 $2,940 $2,915 $2,115
$2,350 $2,350 $4,525 $3,125 $3,100 $2,300
$833 $833 $833 $833 $833 $833
$399 $399 $1,052 $632 $624 $384
$932 $932 $2,455 $1,475 $1,457 $897
4.66% 4.66% 11.16% 7.02% 6.94% 4.49%

 

 

Example: The following table and charts show the projected balance sheet forecast for ABC Day Spa LLC

 

Table: cash flow

 

Table: Balance sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Cash Received
Cash from Operations
Cash Sales $13,000 $16,000 $19,000 $20,000 $21,000 $22,000
Subtotal Cash from Operations $13,000 $16,000 $19,000 $20,000 $21,000 $22,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,000 $16,000 $19,000 $20,000 $21,000 $22,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Expenditures from Operations
Cash Spending $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Bill Payments $156 $4,710 $5,684 $6,735 $7,091 $7,053
Subtotal Spent on Operations $12,156 $16,710 $17,684 $18,735 $19,091 $19,053
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $12,156 $16,710 $17,684 $18,735 $19,091 $19,053
Net Cash Flow $844 ($710) $1,316 $1,265 $1,909 $2,947
Cash Balance $10,044 $9,334 $10,650 $11,915 $13,824 $16,771

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$20,000 $20,000 $22,000 $21,000 $21,000 $20,000
$20,000 $20,000 $22,000 $21,000 $21,000 $20,000
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$20,000 $20,000 $22,000 $21,000 $21,000 $20,000
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000
$7,327 $6,883 $6,899 $7,360 $7,341 $7,343
$19,328 $18,883 $18,899 $19,360 $19,341 $19,343
$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
$19,328 $18,883 $18,899 $19,360 $19,341 $19,343
$673 $1,117 $3,101 $1,640 $1,659 $657
$17,444 $18,561 $21,662 $23,302 $24,961 $25,618

 

 

Example: The following table and charts show the projected net Balance sheet forecast for ABC Day Spa LLC

 

 

Table: Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Assets Starting Balances
Current Assets
Cash $9,200 $10,044 $9,334 $10,650 $11,915 $13,824 $16,771
Other Current Assets $0 $0 $0 $0 $0 $0 $0
Total Current Assets $9,200 $10,044 $9,334 $10,650 $11,915 $13,824 $16,771
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Accumulated Depreciation $0 $185 $370 $555 $740 $925 $1,110
Total Long-term Assets $100,000 $99,815 $99,630 $99,445 $99,260 $99,075 $98,890
Total Assets $109,200 $109,859 $108,964 $110,095 $111,175 $112,899 $115,661
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Current Liabilities
Accounts Payable $0 $4,522 $5,460 $6,499 $6,856 $6,808 $7,098
Current Borrowing $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $4,522 $5,460 $6,499 $6,856 $6,808 $7,098
Long-term Liabilities $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Total Liabilities $100,000 $104,522 $105,460 $106,499 $106,856 $106,808 $107,098
Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Retained Earnings ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800)
Earnings $0 ($3,863) ($5,696) ($5,603) ($4,881) ($3,109) ($637)
Total Capital $9,200 $5,337 $3,504 $3,597 $4,319 $6,091 $8,563
Total Liabilities and Capital $109,200 $109,859 $108,964 $110,095 $111,175 $112,899 $115,661
Net Worth $9,200 $5,337 $3,504 $3,597 $4,319 $6,091 $8,563

 

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$17,444 $18,561 $21,662 $23,302 $24,961 $25,618
$0 $0 $0 $0 $0 $0
$17,444 $18,561 $21,662 $23,302 $24,961 $25,618
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,295 $1,480 $1,665 $1,850 $2,035 $2,220
$98,705 $98,520 $98,335 $98,150 $97,965 $97,780
$116,149 $117,081 $119,997 $121,452 $122,926 $123,398
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$6,653 $6,653 $7,115 $7,096 $7,113 $6,687
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$6,653 $6,653 $7,115 $7,096 $7,113 $6,687
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$106,653 $106,653 $107,115 $107,096 $107,113 $106,687
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000
($40,800) ($40,800) ($40,800) ($40,800) ($40,800) ($40,800)
$295 $1,227 $3,682 $5,157 $6,614 $7,511
$9,495 $10,427 $12,882 $14,357 $15,814 $16,711
$116,149 $117,081 $119,997 $121,452 $122,926 $123,398
$9,495 $10,427 $12,882 $14,357 $15,814 $16,711

 

 

 

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