Dribbling Indoor Soccer
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.
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-of-the-art soccer facility that will enable both youth and adults to enjoy the sport of soccer year round.
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.
| Start-up Funding | |
| Start-up Expenses to Fund | $80,000 |
| Start-up Assets to Fund | $80,000 |
| Total Funding Required | $160,000 |
| Assets | |
| Non-cash Assets from Start-up | $50,000 |
| Cash Requirements from Start-up | $30,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $30,000 |
| Total Assets | $80,000 |
| 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 | |
| Klew, Les and Noh | $60,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $60,000 |
| Loss at Start-up (Start-up Expenses) | ($80,000) |
| Total Capital | ($20,000) |
| Total Capital and Liabilities | $80,000 |
| Total Funding | $160,000 |
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,000 |
| Brochures | $1,000 |
| Insurance | $3,000 |
| Rent | $5,000 |
| Soccer Shop Setup | $10,000 |
| Field Installation | $52,000 |
| Cafe | $8,000 |
| Total Start-up Expenses | $80,000 |
| Start-up Assets | |
| Cash Required | $30,000 |
| Start-up Inventory | $5,000 |
| Other Current Assets | $5,000 |
| Long-term Assets | $40,000 |
| Total Assets | $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.
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.
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 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.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Youth | 12% | 40,000 | 44,800 | 50,176 | 56,197 | 62,941 | 12.00% |
| Adults | 10% | 30,000 | 33,000 | 36,300 | 39,930 | 43,923 | 10.00% |
| Total | 11.16% | 70,000 | 77,800 | 86,476 | 96,127 | 106,864 | 11.16% |
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.
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.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Memberships | $42,000 | $65,000 | $78,000 |
| Leagues | $185,000 | $190,000 | $210,000 |
| Rentals | $43,000 | $55,000 | $67,000 |
| Clinics | $38,000 | $48,000 | $58,000 |
| Soccer Shop | $49,000 | $54,000 | $59,000 |
| Cafe | $48,000 | $54,000 | $60,000 |
| Total Sales | $405,000 | $466,000 | $532,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Memberships | $0 | $0 | $0 |
| Leagues | $0 | $0 | $0 |
| Rentals | $0 | $0 | $0 |
| Clinics | $20,500 | $21,000 | $24,000 |
| Soccer Shop | $18,500 | $21,000 | $23,000 |
| Cafe | $12,000 | $14,000 | $16,000 |
| Subtotal Direct Cost of Sales | $51,000 | $56,000 | $63,000 |
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.
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.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager – Klew, Les | $33,600 | $36,000 | $38,000 |
| Asst. Manager – Noh Klew | $33,600 | $36,000 | $38,000 |
| Senior Staff | $52,800 | $55,000 | $57,000 |
| Staff Members | $46,800 | $48,000 | $50,000 |
| Soccer Store Staff Person | $19,200 | $21,000 | $23,000 |
| Cafe Staff | $28,800 | $31,000 | $34,000 |
| Total People | 7 | 7 | 7 |
| Total Payroll | $214,800 | $227,000 | $240,000 |
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.
| Break-even Analysis | |
| Monthly Revenue Break-even | $32,741 |
| Assumptions: | |
| Average Percent Variable Cost | 13% |
| Estimated Monthly Fixed Cost | $28,618 |
7.2 Projected Profit and Loss
The following table and charts will highlight projected profit and loss for the next three years.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $405,000 | $466,000 | $532,000 |
| Direct Cost of Sales | $51,000 | $56,000 | $63,000 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Cost of Sales | $51,000 | $56,000 | $63,000 |
| Gross Margin | $354,000 | $410,000 | $469,000 |
| Gross Margin % | 87.41% | 87.98% | 88.16% |
| Expenses | |||
| Payroll | $214,800 | $227,000 | $240,000 |
| Sales and Marketing and Other Expenses | $31,600 | $33,600 | $33,600 |
| Depreciation | $6,000 | $6,000 | $6,000 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,800 | $4,800 | $4,800 |
| Insurance | $6,000 | $6,000 | $6,000 |
| Rent | $48,000 | $48,000 | $48,000 |
| Payroll Taxes | $32,220 | $34,050 | $36,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $343,420 | $359,450 | $374,400 |
| Profit Before Interest and Taxes | $10,580 | $50,550 | $94,600 |
| EBITDA | $16,580 | $56,550 | $100,600 |
| Interest Expense | $10,000 | $10,000 | $10,000 |
| Taxes Incurred | $174 | $12,165 | $25,380 |
| Net Profit | $406 | $28,385 | $59,220 |
| Net Profit/Sales | 0.10% | 6.09% | 11.13% |
7.3 Projected Cash Flow
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 | $405,000 | $466,000 | $532,000 |
| Subtotal Cash from Operations | $405,000 | $466,000 | $532,000 |
| 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 | $405,000 | $466,000 | $532,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $214,800 | $227,000 | $240,000 |
| Bill Payments | $166,660 | $205,627 | $225,659 |
| Subtotal Spent on Operations | $381,460 | $432,627 | $465,659 |
| 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 | $381,460 | $432,627 | $465,659 |
| Net Cash Flow | $23,540 | $33,373 | $66,341 |
| Cash Balance | $53,540 | $86,914 | $153,255 |
7.4 Projected Balance Sheet
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 | $53,540 | $86,914 | $153,255 |
| Inventory | $5,225 | $5,737 | $6,454 |
| Other Current Assets | $5,000 | $5,000 | $5,000 |
| Total Current Assets | $63,765 | $97,651 | $164,709 |
| Long-term Assets | |||
| Long-term Assets | $40,000 | $40,000 | $40,000 |
| Accumulated Depreciation | $6,000 | $12,000 | $18,000 |
| Total Long-term Assets | $34,000 | $28,000 | $22,000 |
| Total Assets | $97,765 | $125,651 | $186,709 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $17,359 | $16,860 | $18,698 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $17,359 | $16,860 | $18,698 |
| Long-term Liabilities | $100,000 | $100,000 | $100,000 |
| Total Liabilities | $117,359 | $116,860 | $118,698 |
| Paid-in Capital | $60,000 | $60,000 | $60,000 |
| Retained Earnings | ($80,000) | ($79,594) | ($51,209) |
| Earnings | $406 | $28,385 | $59,220 |
| Total Capital | ($19,594) | $8,791 | $68,011 |
| Total Liabilities and Capital | $97,765 | $125,651 | $186,709 |
| Net Worth | ($19,594) | $8,791 | $68,011 |
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.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 15.06% | 14.16% | 2.76% |
| Percent of Total Assets | ||||
| Inventory | 5.34% | 4.57% | 3.46% | 4.78% |
| Other Current Assets | 5.11% | 3.98% | 2.68% | 28.67% |
| Total Current Assets | 65.22% | 77.72% | 88.22% | 37.98% |
| Long-term Assets | 34.78% | 22.28% | 11.78% | 62.02% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 17.76% | 13.42% | 10.01% | 16.07% |
| Long-term Liabilities | 102.29% | 79.59% | 53.56% | 26.99% |
| Total Liabilities | 120.04% | 93.00% | 63.57% | 43.06% |
| Net Worth | -20.04% | 7.00% | 36.43% | 56.94% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 87.41% | 87.98% | 88.16% | 100.00% |
| Selling, General & Administrative Expenses | 87.19% | 81.62% | 76.64% | 73.13% |
| Advertising Expenses | 1.48% | 1.29% | 1.13% | 2.52% |
| Profit Before Interest and Taxes | 2.61% | 10.85% | 17.78% | 2.03% |
| Main Ratios | ||||
| Current | 3.67 | 5.79 | 8.81 | 1.43 |
| Quick | 3.37 | 5.45 | 8.46 | 0.97 |
| Total Debt to Total Assets | 120.04% | 93.00% | 63.57% | 54.86% |
| Pre-tax Return on Net Worth | -2.96% | 461.27% | 124.39% | 3.12% |
| Pre-tax Return on Assets | 0.59% | 32.27% | 45.31% | 6.92% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 0.10% | 6.09% | 11.13% | n.a |
| Return on Equity | 0.00% | 322.89% | 87.07% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 10.77 | 10.22 | 10.33 | n.a |
| Accounts Payable Turnover | 10.60 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 30 | 29 | n.a |
| Total Asset Turnover | 4.14 | 3.71 | 2.85 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.00 | 13.29 | 1.75 | n.a |
| Current Liab. to Liab. | 0.15 | 0.14 | 0.16 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $46,406 | $80,791 | $146,011 | n.a |
| Interest Coverage | 1.06 | 5.06 | 9.46 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.24 | 0.27 | 0.35 | n.a |
| Current Debt/Total Assets | 18% | 13% | 10% | n.a |
| Acid Test | 3.37 | 5.45 | 8.46 | n.a |
| Sales/Net Worth | 0.00 | 53.01 | 7.82 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Appendix
| 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 | |||||||||||||
| Memberships | 0% | $3,000 | $6,000 | $7,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $1,000 | $3,000 | $3,000 | $4,000 |
| Leagues | 0% | $8,000 | $11,000 | $15,000 | $19,000 | $19,000 | $21,000 | $21,000 | $3,000 | $6,000 | $21,000 | $21,000 | $20,000 |
| Rentals | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $4,000 | $5,000 | $5,000 | $2,000 | $4,000 | $4,000 | $4,000 |
| Clinics | 0% | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $2,000 | $4,000 | $4,000 | $4,000 |
| Soccer Shop | 0% | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $4,000 | $4,000 | $5,000 | $4,000 | $4,000 | $4,000 |
| Cafe | 0% | $0 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $3,000 | $1,000 | $5,000 | $5,000 | $5,000 |
| Total 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 | |
| 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 | |
| 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 | |
| Cafe | $0 | $1,000 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $750 | $250 | $1,250 | $1,250 | $1,250 | |
| Subtotal Direct Cost of Sales | $2,500 | $4,000 | $4,250 | $4,250 | $4,250 | $5,250 | $4,750 | $4,250 | $3,250 | $4,750 | $4,750 | $4,750 | |
| 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 | ||
| Manager – Klew, Les | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Asst. Manager – Noh Klew | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Senior Staff | 0% | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 | $4,400 |
| Staff Members | 0% | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 | $3,900 |
| Soccer Store Staff Person | 0% | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 |
| Cafe Staff | 0% | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
| Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |
| Total Payroll | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | |
| 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 | $17,000 | $31,000 | $37,000 | $37,000 | $37,000 | $42,000 | $42,000 | $22,000 | $17,000 | $41,000 | $41,000 | $41,000 | |
| Direct Cost of Sales | $2,500 | $4,000 | $4,250 | $4,250 | $4,250 | $5,250 | $4,750 | $4,250 | $3,250 | $4,750 | $4,750 | $4,750 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $2,500 | $4,000 | $4,250 | $4,250 | $4,250 | $5,250 | $4,750 | $4,250 | $3,250 | $4,750 | $4,750 | $4,750 | |
| Gross Margin | $14,500 | $27,000 | $32,750 | $32,750 | $32,750 | $36,750 | $37,250 | $17,750 | $13,750 | $36,250 | $36,250 | $36,250 | |
| Gross Margin % | 85.29% | 87.10% | 88.51% | 88.51% | 88.51% | 87.50% | 88.69% | 80.68% | 80.88% | 88.41% | 88.41% | 88.41% | |
| Expenses | |||||||||||||
| Payroll | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | |
| Sales and Marketing and Other Expenses | $800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | |
| Depreciation | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
| Payroll Taxes | 15% | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 | $2,685 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $26,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | $28,785 | |
| Profit Before Interest and Taxes | ($12,285) | ($1,785) | $3,965 | $3,965 | $3,965 | $7,965 | $8,465 | ($11,035) | ($15,035) | $7,465 | $7,465 | $7,465 | |
| EBITDA | ($11,785) | ($1,285) | $4,465 | $4,465 | $4,465 | $8,465 | $8,965 | ($10,535) | ($14,535) | $7,965 | $7,965 | $7,965 | |
| Interest Expense | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| Taxes Incurred | ($3,936) | ($786) | $939 | $939 | $939 | $2,140 | $2,290 | ($3,561) | ($4,761) | $1,990 | $1,990 | $1,990 | |
| Net Profit | ($9,183) | ($1,833) | $2,192 | $2,192 | $2,192 | $4,992 | $5,342 | ($8,308) | ($11,108) | $4,642 | $4,642 | $4,642 | |
| Net Profit/Sales | -54.02% | -5.91% | 5.92% | 5.92% | 5.92% | 11.89% | 12.72% | -37.76% | -65.34% | 11.32% | 11.32% | 11.32% | |
| 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 | |
| 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 | $17,000 | $31,000 | $37,000 | $37,000 | $37,000 | $42,000 | $42,000 | $22,000 | $17,000 | $41,000 | $41,000 | $41,000 | |
| 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 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | $17,900 | |
| Bill Payments | $209 | $6,584 | $15,378 | $16,674 | $16,408 | $16,518 | $19,641 | $17,496 | $11,266 | $8,975 | $19,553 | $17,958 | |
| Subtotal Spent on Operations | $18,109 | $24,485 | $33,278 | $34,574 | $34,308 | $34,418 | $37,541 | $35,396 | $29,166 | $26,875 | $37,453 | $35,858 | |
| 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 | $18,109 | $24,485 | $33,278 | $34,574 | $34,308 | $34,418 | $37,541 | $35,396 | $29,166 | $26,875 | $37,453 | $35,858 | |
| Net Cash Flow | ($1,109) | $6,516 | $3,722 | $2,426 | $2,692 | $7,582 | $4,459 | ($13,396) | ($12,166) | $14,126 | $3,547 | $5,142 | |
| Cash Balance | $28,891 | $35,406 | $39,128 | $41,555 | $44,247 | $51,829 | $56,288 | $42,892 | $30,725 | $44,851 | $48,398 | $53,540 | |
| 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 | $30,000 | $28,891 | $35,406 | $39,128 | $41,555 | $44,247 | $51,829 | $56,288 | $42,892 | $30,725 | $44,851 | $48,398 | $53,540 |
| Inventory | $5,000 | $3,500 | $4,400 | $4,675 | $4,675 | $4,675 | $5,775 | $5,225 | $4,675 | $3,575 | $5,225 | $5,225 | $5,225 |
| Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Total Current Assets | $40,000 | $37,391 | $44,806 | $48,803 | $51,230 | $53,922 | $62,604 | $66,513 | $52,567 | $39,300 | $55,076 | $58,623 | $63,765 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 |
| Accumulated Depreciation | $0 | $500 | $1,000 | $1,500 | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $6,000 |
| Total Long-term Assets | $40,000 | $39,500 | $39,000 | $38,500 | $38,000 | $37,500 | $37,000 | $36,500 | $36,000 | $35,500 | $35,000 | $34,500 | $34,000 |
| Total Assets | $80,000 | $76,891 | $83,806 | $87,303 | $89,230 | $91,422 | $99,604 | $103,013 | $88,567 | $74,800 | $90,076 | $93,123 | $97,765 |
| 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 | $6,073 | $14,822 | $16,127 | $15,861 | $15,861 | $19,051 | $17,118 | $10,979 | $8,321 | $18,954 | $17,359 | $17,359 |
| 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 | $6,073 | $14,822 | $16,127 | $15,861 | $15,861 | $19,051 | $17,118 | $10,979 | $8,321 | $18,954 | $17,359 | $17,359 |
| 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 | $106,073 | $114,822 | $116,127 | $115,861 | $115,861 | $119,051 | $117,118 | $110,979 | $108,321 | $118,954 | $117,359 | $117,359 |
| Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
| Retained Earnings | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) | ($80,000) |
| Earnings | $0 | ($9,183) | ($11,016) | ($8,824) | ($6,631) | ($4,439) | $553 | $5,895 | ($2,413) | ($13,521) | ($8,878) | ($4,236) | $406 |
| Total Capital | ($20,000) | ($29,183) | ($31,016) | ($28,824) | ($26,631) | ($24,439) | ($19,447) | ($14,105) | ($22,413) | ($33,521) | ($28,878) | ($24,236) | ($19,594) |
| Total Liabilities and Capital | $80,000 | $76,891 | $83,806 | $87,303 | $89,230 | $91,422 | $99,604 | $103,013 | $88,567 | $74,800 | $90,076 | $93,123 | $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) |
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