CONFIDENTIAL
GARRETT'S BIKE SHOP TOP-QUALITY GEAR, REPAIR, AND ADVICE FROM YOUR LOCAL CYCLING FANATICS
BUSINESS PLAN Prepared February 2016
CONTACT INFORMATION Garrett McKenzie
[email protected] www.universitycycleworks.com
488 East 11th Avenue, Suite 220 Eugene, OR 97401, USA (555) 555-5555
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Table of Contents Executive Summary .........................................................................1 What We Sell .................................................................................................................................................................1 Financial Summary .......................................................................................................................................................1 Who Are We..................................................................................................................................................................3 Opportunity ...................................................................................................................................................................3 Expectations ..................................................................................................................................................................3 Who We Sell To ............................................................................................................................................................4
Products and Services......................................................................5 Products and Services .................................................................................................................................................5 Customer Validation Results .......................................................................................................................................6 Competitors...................................................................................................................................................................6
Target Market ..................................................................................8 Market Overview..........................................................................................................................................................8 Key Customers..............................................................................................................................................................8 Market Growth..............................................................................................................................................................9 Market Needs................................................................................................................................................................9 Market Trends...............................................................................................................................................................9
Strategy and Implementation .........................................................11 Marketing Plan ............................................................................................................................................................11 Competitive Edge ......................................................................................................................................................13 Strategic Alliances ......................................................................................................................................................13 Exit Strategy ................................................................................................................................................................14 SWOT Analysis ...........................................................................................................................................................14
Company Overview .......................................................................15 Company Overview...................................................................................................................................................15 Management Team ....................................................................................................................................................15
Financial Plan.................................................................................17 Revenue Forecast .......................................................................................................................................................17
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Personnel Plan.............................................................................................................................................................19 Budget..........................................................................................................................................................................20 Loans and Investments...............................................................................................................................................22 Cash Flow Assumptions.............................................................................................................................................22 Starting Balances ........................................................................................................................................................23
Financial Statements ......................................................................24 Profit and Loss Statement...........................................................................................................................................24 Cash Flow Statement..................................................................................................................................................26 Balance Sheet..............................................................................................................................................................29
Appendix .......................................................................................31 Revenue Forecast .......................................................................................................................................................31 Personnel Plan.............................................................................................................................................................35 Budget..........................................................................................................................................................................37 Loans and Investments...............................................................................................................................................40 Profit and Loss Statement...........................................................................................................................................42 Balance Sheet..............................................................................................................................................................49 Cash Flow Statement..................................................................................................................................................56
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Executive Summary What We Sell Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes. Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category. Clothing. We rotate our clothing based on the season. For example, in Autumn, we stock jackets and Gore-Tex. In Winter, we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. In the Spring, we start displaying summer jerseys, and racing shorts Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service and are an additional charge beyond the service fees.
Financial Summary Financial Summary Description This financial plan was developed based upon previous years' data for the existing store, tracking trends in revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory from a year-end benchmark was made. The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The seller, buyer, and the accountant worked together on the plan to balance optimism with reality. An attorney was consulted on specifics of the sale contract. Sales for the first year of new ownership are projected above $500,000, with a gross margin of almost 65%. Profitability is expected at the mid-way point of the fiscal year, in March.
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Revenue
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Who Are We Opportunity Problem Solution Competition Why Us?
Expectations Financial Highlights by Year
Financing Needed We plan on bootstrapping the business to start, but may consider loans for future expansion.
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Who We Sell To The primary market for Garrett's Bike Shop is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.
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Products and Services Products and Services Retail Sales 1.
Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on trade as a service to our customers who are buying new bikes.
2.
Accessories. We offer a wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all fall in this category. It is not possible to carry every possible accessory, so we try to carefully chose those which will be most useful or desired by our target markets. When we receive special requests for a new item, we'll often order several to test the local demand, and if adequate, will add it to our regular stock.
3.
Clothing. Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of waterproof rainwear. At Garrett's Bike Shop, we rotate our clothing based on the season. Just before the autumn rains we stock jackets and Gore-Tex. Come winter we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. And when spring arrives and the first crocus appears through the melting snow, we start displaying summer jerseys, and racing shorts.
4.
Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service [see below] and are an additional charge beyond the service fees. Some, like cranksets, pedals, tires, derailleurs or brakes, are both integral parts and upgrade accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and cable housings are strictly maintenance, though some will be sold to cyclists who prefer to work on their bikes themselves.
Service
Garrett's Bike Shop is a full-service specialized bicycle shop. Our service offering includes, but is not limited to:
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Free 30-day/100-mile tune up with every new bike sold.
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Quick repairs for flat tires, broken chains, brake cables, etc.
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Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments of derailleurs and brake systems.
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Installation of all accessories.
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Authorized warranty repairs on the bikes.
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Custom wheel building.
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Frameset repairs by outsourcing to Via Porco custom frame builders.
Customer Validation Results Competitors Market Problem: No full-service bike shop focused on servicing the university market. Setting aside the discount department stores, Garrett's Bike Shop has the following direct competitors. •
One local multi-sport store at the local megamall
•
One statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take on other brands and products.
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One used bike store that has made a fine business reputation for itself, dealing strictly in used bikes.
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Three local, including the oldest shop in town.
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One local multi-location chain, that has specialized in opening shops in small local malls in areas of new housing development.
•
Several garage mechanics offering service only.
None of these competitors is within two miles of the university, and so, for the present, we have first access to our chosen market segments. One of the local shops has chosen to target the burgeoning young road racer segment, another is focusing on recumbents and folding travel cycles. The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most stable, and most well known -- a Metroburg institution. The Mountain Bike Specialist targets the same athletic, young, performance and image conscious rider that we target in the university student population.
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These cyclists are particular about their bike and will go where the name brand they want is sold, or will try every bike and then buy the one that fits best, regardless of store loyalty.
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Target Market Market Overview The predominant market segment for Garrett's Bike Shop is the university student population. We also cater to the university staff, local business employees, and, along with every other bicycle shop in town, the greater Metroburg population. In part the local market is driven by the lack of parking. Bicycle transportation is more economical, as well as time and space efficient in the university neighborhood. Part of the market is price constrained and another part is hooked on the latest fad, be it frame style, number of gears, or portrayed image. As long as new students arrive each year, our market segment growth is assured
Key Customers The university students are our main target market. 1.
They are mostly undergraduates, so there is a 25% annual turnover.
2.
The lack of parking in the university area and the general ease of bike mobility throughout Metroburg motivates them to use bicycles as inexpensive transport. Athletic pursuits draw them, and the nearby areas for use of mountain and trail bikes provides a great place to ride.
3.
There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with multiple gears, good brakes, etc. among the college age population.
4.
Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.
5.
They want convenience for sales and service.
University employees are another prime market segment. 1.
Small growth and turnover, but on the whole, the group is pretty stable.
2.
Are willing to commute by bicycle to work.
3.
They want a stable, comfortable bike and a full range of accessories.
4.
When their bikes need service and maintenance, local drop off/pickup convenience is important.
5.
They have families who ride bicycles also, and will patronize a shop that gives personal service.
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Greater Metroburg population. This segment has a choice of going to any bike shop in the area, and will probably choose a shop located closer to their home. They are not the main target market segment of Garrett's Bike Shop, and we market to them casually, only as a collateral effect to our university-oriented efforts.
Market Growth The bulk of Garrett's Bike Shop's market growth is the regular matriculation of students from the State University in Metroburg. While the overall market numbers change in small increments, usually less than 10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the number of university employees grows and shrinks with economic changes, and with population demographics. For the next three years we foresee a steady growth in the overall university population as well as continued growth of Metroburg as a desirable place to live.
Market Needs Our market niche has several needs which we strive to meet: •
Quality bikes at several price points.
•
Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student population.
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Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats, rainwear, etc.
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Plenty of replacement components and service parts.
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Friendly personal relationships between cyclists and shop staff.
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Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major maintenance, where the rider can drop their bike off, head to class or work, and be assured that their bike will be ready for the ride home.
Market Trends Trends in the bicycle industry usually last for a time. Some of them have been: •
1960s - Big rush on 10 speeds.
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1970s - Touring bikes became popular.
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1980s and 1990s - Huge growth of mountain bikes
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1990s - The rumored but exaggerated death of "road bikes" and the unfulfilled prophesy of a boom in the tandem market.
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2000s - Popularity of retro 'cruisers.'
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Strategy and Implementation Marketing Plan Overview Our marketing strategy seeks to optimize our advantage of prime location. We want the university population to see us as their bike shop, even our name says so, Garrett's Bike Shop. We want them to see us as part of their daily experience, and a shop they can depend on for quick repair and maintenance service. Positioning We are Garrett's Bike Shop, and we are passionate about bicycles. Pricing Retail Pricing of bicycles is very tight with a markup of between 30% and 40% depending upon the brand and model. Many people believe that bicycles are priced like automobiles and are open for negotiation, and make almost insulting offers. The shops have little leeway here. Parts and accessories are generally keystone priced. Some small items cost more in handling and sales than they do to buy from suppliers. These can be double and triple keystoned, because customers won't buy them if they don't have a minimum perceived value. On the plus side, these are great "throw-in" items used to close the sale of a bike. When new technology arrives in bicycles, and if the supply is limited, almost any price can be demanded. This was the case in the mid-1990s when RockShox introduced suspension forks for mountain bikes. The bike nobs would pay whatever was asked just to get those forks. Of course, in this type of situation the price, both wholesale and retail, lowers. Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are sometimes heavily marketed by the manufacturers. While this drives demand and brings people into the shop to get these items, the suggested manufacturer's retail price may limit markup. The markup on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending upon product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley Design rainwear can demand premium prices as top-of-the-line garments, but many budget-conscious
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students can only afford a $35 nylon windbreaker. It has been and always will be a demanding job for us to adequately stock garments at the various price points. Service We try to maintain a basic "Hourly shop rate" at $45/hour. Standard repairs are then priced based upon an average time for completion. Some repairs, such as a flat tire, are limited by customer perception of difficulty. Examples: •
Flat Tire -- $7.50
•
Install Fenders -- $10.00
•
Brake Adjustment -- $25.00
•
Tune-up -- $65.00
•
Overhaul -- $100.00
All parts used in repairs are priced at keystone, and added to the labor service charge. With several other bicycle shops in the city, there are some price constraints based on competition. Coupons and specials can balance price ceilings by drawing in customers. Promotion Our marketing programs are locally focused, where we can effect our main target market. Back to school specials, at the beginning of each term, including perhaps a free Kryptonite lock with a new bike purchase. We will try to have a special purchase of an economy value bike for each term. Spring special. This coincides with the beginning of spring term, but we will direct some of our advertising at the wider population as people hang up their skis and tune up their bikes. Coupons. Once every other month we will run a coupon for a service special in the university newspaper, the Daily Hyperbole. We also run this coupon as a banner ad in the Daily Hyperbole Online. Website. Our content site will also serve as a marketing medium. We offer downloadable maps of the city bike routes, maps of rides outside the city area, give information about the store, and announce sales. We believe that cyclists will regularly access our site for the valuable information we will provide, and this will reinforce their of awareness of Garrett's Bike Shop, and we will become their bike shop of choice.
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Print advertising. In addition to our coupons, we will keep a small 3 column inch ad appearing on a recurring schedule in the Daily Hyperbole. To boost citywide awareness of our sales specials we will also run slightly larger ads in the Metroburg Bombast-Obfuscator during the weekends prior to the sale.
Competitive Edge The foremost competitive advantage of Garrett's Bike Shop is our university location. The university is over 100 years old and as it has grown, Metroburg has grown around it. Parking is almost nonexistent, with all campus parking permit or meter controlled, and local streets filled to capacity with the vehicles of residents. Bicycles are an obvious and popular transportation solution. Our location, in the first block off campus in a commercial area featuring the university bookstore, a private bookstore, bank, cafes, coffee shops and popular watering holes is ideal. We get constant, daily visual exposure. Students and staff throng the sidewalk outside our door, and we reap the benefits. Our nearest competitor is almost a mile away. For the student customer, on foot, in a hurry, Garrett's Bike Shop is the immediate solution to their needs. After that first parking ticket, we are the first bike shop the new pedestrian sees. We are conveniently located when a cyclist gets a flat tire on the way to class. The first time a rider gets to class with a wet back they come in at lunch for a set of fenders and a rain jacket. The negotiations of the past two years also brings the advantage of continued financial agreements with major suppliers. This is an advantage over a start-up bicycle shop, but, is more a leveling of the bike path when compared to other established shop in Metroburg. Traditionally a start-up store will be placed on a Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also means the new shop must have more funding to be able to write checks on a moments notice, for large amounts. Garrett's Bike Shop will be continuing an established system of dating programs, ordering, delivery, and invoicing/accounts payable, stabilizing our funding needs and monthly cash flow.
Strategic Alliances •
Bicycle manufacturers - continuation of dating programs and financial agreements.
•
Accessory suppliers - continuation of financial agreements.
•
Metroburg Parks Dept. - we sponsor printed map of city bike paths to publish on our website.
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University Security Office - maintenance, supply service contract for cycle security.
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HooDaThunkIt - website design and maintenance, search engine placement.
Exit Strategy The principal owners of Mirabile Dictu Advertising, founders McKenzie Bossard and Fernando Hearndon, believe in their business model, and in their experience-based view of the future. They foresee the business growing steadily for many years, and plan to be active participants in the business. By the end of year six the original principal investor will have been repaid several times over. At that time, they envision several of their employees becoming full partners with concomitant investment. If our original investor wishes to exit the company, this will be the time.
SWOT Analysis Strengths Weaknesses Opportunities Threats
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Company Overview Company Overview Garrett's Bike Shop is a subchapter S corporation, and is currently owned by Han Delbar. Hubert Wheeler, current assistant manager of Garrett's Bike Shop, is purchasing Garrett's Bike Shop from Delbar, acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to suppliers, location lease, customer base and information, and Garrett's Bike Shop's business name and goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur on July 1st. To establish an accurate accounting of existing inventory and outstanding debts, the prior year's closing inventory and year end financial statement as reviewed by the business' CPA were used as benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are conservative, realistic estimates used for planning purposes.
Management Team The current assistant manager, Hubert Wheeler, is buying Garrett's Bike Shop, and will manage the business. He has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however has always been cycling. He originally worked at his local bike shop when he was in college. After several years trying to find suitable work in his degree field, he gave up chasing the chimera of these fields and decided to work with something substantial, and returned to his youthful enjoyment of bicycles. He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame building and repair, wheel building, and shop organization, sales, and management. He has 12 years of progressively responsible experience in bicycle shops with the last five at Garrett's Bike Shop. One of the other full-time employees, Valerie Pede has expressed interest in learning more about the bike industry and she will be promoted to be the new assistant manager. Val has been with us for three years. She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her knowledge and expertise draws many women bicyclists to our store where they know they will get the care and attention which is usually missing from traditionally male staffed shops.
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The current owner, Han Delbar will be available as a resource. Additional resources are: •
Order Out of Chaos, our full-cycle bookkeeping service.
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Continental Shelf Bank.
•
Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements.
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Financial Plan Revenue Forecast Revenue by Month
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Revenue Forecast Table FY2016
FY2017
FY2018
$200,697
$250,000
$275,000
$68,000
$78,200
$89,930
$132,400
$172,500
$198,375
$1,200
$1,380
$1,587
$176,362
$190,900
$219,535
$578,659
$692,980
$784,427
New Bikes
$74,258
$92,500
$101,750
Repair and Service
$44,091
$47,725
$54,884
$180
$207
$238
Accessories and Parts
$66,200
$86,250
$99,188
Clothing
$23,800
$27,370
$31,476
Total Direct Cost
$208,529
$254,052
$287,536
Gross Margin
$370,130
$438,928
$496,891
64%
63%
63%
Revenue New Bikes Clothing Accessories and Parts University Patrol Service Contract Repair and Service Total Revenue Direct Cost
University Patrol Service Contract
Gross Margin %
About the Revenue Forecast Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest season because there are fewer students in town. Business picks up in August with the return of the students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight hours, and drier weather. We have three large sales promotions each year. 1.
Back to school in August/September. This is our biggest sale of the year. New bicycles, locks, helmets, racks, fenders, backpacks. We always search for a special purchase of good quality, but value priced bikes for this sale such as year end models, slow sellers, new line looks to break into the market. These bikes will almost always sell out to students seeking great values.
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2.
Year-end holidays. This also overlaps the beginning of Winter term. The retail market demands some participation in this annual buying frenzy, yet, this sale produces lower revenue than our other two events. We sell fewer bikes, and more accessories and clothing.
3.
Spring. This coincides with both the return of nice weather, and beginning of Spring term. We feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good selection on hand at this time. When people decide they want that new bike, they want it now. If we don't have the bike then, and make the sale immediately, many riders will decide that they really can get another season out of their old bike, and will spend their discretionary income on some other purchase.
Additionally, we have some special buys available for June graduation. We get some small monthly revenue from these sources: •
Sale of used bicycles taken in on trade.
•
Repair classes taught at the University Outdoor Center, once a term.
•
Monthly service contract for repairs and parts with the University Security Office.
Personnel Plan Personnel Table FY2016
FY2017
FY2018
Part-time Employees
$50,000
$50,000
$50,000
Valerie Pede
$32,000
$32,640
$33,293
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$19,800
$19,800
$125,200
$127,010
$128,892
Total
About the Personnel Plan The staff will consist of Hubert Wheeler, the new owner, Valerie Pede, and two other full-time employees Dee Ray, and Jean-Baptiste Kape.
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To meet the need for additional help during the year, Garrett's Bike Shop hires two to four part-time employees from the university population. We look for people who are enthusiastic about cycling, and who have a mechanical aptitude. Some of these folks have worked for us throughout their entire college sojourn. Their hours vary depending on the store's needs and their class schedules.
Budget Budget Table FY2016
FY2017
FY2018
$125,200
$127,010
$128,892
Employee Related Expenses
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
Expense from Other Current Assets
$10,000 $273,272
$282,025
Operating Expenses Salary
Rent Utilities
Total Operating Expenses
$273,006
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Expenses by Month
About the Budget Our salary totals, employee benefits and monthly expense projections are included in the Budget. A rent deposit was made to the landlord as a security during the transfer of the business to the new owner, in order to keep the current lease agreement. If, at the end of the first year, the business is still solvent, the deposit will be applied to the twelfth month's rent. Startup Costs Our estimated starting expenses total $13,300. They include, legal and accounting costs to transfer ownership of the business, stationery, etc., promotional materials, insurance, and the down payment toward the purchase of the business.
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Loans and Investments Loans and Investments Table FY2016 Loan Loan at 7% interest for 60 mos. Total Amount Received
FY2017
FY2018
$100,000 $100,000
Sources of Funds The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The value of the existing company, its reputation, assumption of the business name, existing client base, etc. is recognized as part of the purchase. It appears as a start-up expense in the following table as Down Payment. The balance appears as a long-term liability. Wheeler is investing some of his own money, partially a home equity loan, in the company. An additional amount is being invested, as short-term interest free loans, by family members. This plan calls for these loans to be repaid in the first year.
Cash Flow Assumptions Cash Flow Assumptions
Cash Inflow % of Sales on Credit
98%
Avg Collection Period (Days)
15
Cash Outflow % of Purchases on Credit
50%
Avg Payment Delay (Days)
45
Inventory Months to Keep on Hand Minimum Inventory Purchase
2 $3,000
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GARRETT'S BIKE SHOP - QB
About the Cash Flow Assumptions We have accounts payable set at 45 days. We also keep approximately one month's worth of inventory on hand, with a minimum purchase of $1,000, on average. We had a starting inventory balance for this plan at $17,000 from the previous owner, which carried forward with the business transfer. We do not sell on credit.
Starting Balances Assets Cash Accounts Receivable Inventory Long-Term Assets
$10,000 $7,500 $61,500
Accumulated Depreciation
Liabilities Accounts Payable
$27,800
Corporate Taxes Payable Sales Taxes Payable Short-Term Debt Long-Term Debt
Capital Paid-In Capital
$50,700
Retained Earnings
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$500
24
GARRETT'S BIKE SHOP - QB
Financial Statements Profit and Loss Statement Profit and Loss Statement FY2016
FY2017
FY2018
Revenue
$578,659
$692,980
$784,427
Direct Costs
$208,529
$254,052
$287,536
Gross Margin
$370,130
$438,928
$496,891
64%
63%
63%
$125,200
$127,010
$128,892
Employee Related Expenses
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
Expense from Other Current Assets
$10,000 $273,006
$273,272
$282,025
$97,124
$165,656
$214,866
$5,960
$5,308
$3,974
Depreciation and Amortization
$20,931
$23,207
$23,206
Income Taxes
$10,534
$20,571
$28,153
$518,960
$576,410
$624,894
$59,699
$116,570
$159,533
10%
17%
20%
Gross Margin % Operating Expenses Salary
Rent Utilities
Total Operating Expenses Operating Income Interest Incurred
Total Expenses Net Profit Net Profit / Sales
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GARRETT'S BIKE SHOP - QB
25
Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement In negotiating the smooth transition in ownership, the landlord agreed to continue the current lease unchanged. As surety, one month's rent was required as a deposit at the time of sale. This is shown in the
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26
GARRETT'S BIKE SHOP - QB
starting expenses. Further, the landlord agreed that if, after 11 months operation the new company was solvent and current in lease payments, that the deposit could be applied to the twelfth month's rent. The mid-summer months of July and August are slow months when a large part of the university population is gone on summer break. The mid-winter months are traditionally loss months. The weather is the most inclement and discretionary income is at its lowest after the holiday binges. However, we try to keep our entire staff on board to work on our own inventory, store refurbishing, and staff training.
Cash Flow Statement Cash Flow Statement FY2016
FY2017
FY2018
Net Profit
$59,699
$116,570
$159,533
Depreciation and Amortization
$30,931
$23,207
$23,206
Change in Accounts Receivable
($14,975)
($4,026)
($3,798)
Change in Inventory
($34,842)
($5,582)
$0
Change in Accounts Payable
($5,184)
$2,492
$386
Change in Income Tax Payable
$10,534
$10,037
$7,582
$2,961
$1,414
$438
$49,124
$144,112
$187,347
Net Cash Flow from Operations
Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($81,200)
Investments Received Change in Long-Term Debt
$65,728
($19,786)
($21,217)
Change in Short-Term Debt
$18,452
$1,334
$1,431
$2,980
($18,452)
($19,786)
($2)
$52,102
$177,756
Net Change in Cash
$52,104
$125,660
$167,561
Cash at End of Period
$52,102
$177,762
$345,317
Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period
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GARRETT'S BIKE SHOP - QB
27
Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement The cash flow reflects the seasonality of bicycle sales and the varying payment programs. At times, the business is inventory heavy, stocking up for the beginning of school rush, or specific sales. At other times,
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28
there is negative cash flow as long-term accounts payable, net 90, net 60 payments coincide with regular net 30 invoices.
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GARRETT'S BIKE SHOP - QB
Balance Sheet Balance Sheet As of Period's End Cash Accounts Receivable Inventory
Starting Balances
FY2016
FY2017
FY2018
$0
$52,102
$177,762
$345,317
$10,000
$24,974
$29,002
$32,804
$7,500
$42,342
$47,924
$47,924
$0
$0
$0
Other Current Assets Total Current Assets
$17,500
$119,418
$254,688
$426,045
Long-Term Assets
$61,500
$132,700
$132,700
$132,700
($20,931)
($44,138)
($67,344)
Accumulated Depreciation Total Long-Term Assets
$61,500
$111,769
$88,562
$65,356
Total Assets
$79,000
$231,187
$343,250
$491,401
Accounts Payable
$27,800
$22,618
$25,114
$25,501
$10,534
$20,571
$28,153
$2,961
$4,375
$4,813
$18,452
$19,786
$21,217
$54,565
$69,846
$79,684
$65,728
$45,942
$24,725
Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities
$27,800
Long-Term Debt Total Liabilities
$27,800
$120,293
$115,788
$104,409
Paid-in Capital
$50,700
$50,700
$50,700
$50,700
$500
$500
$60,194
$176,762
$59,694
$116,568
$159,530
Retained Earnings Earnings Total Owner's Equity
$51,200
$110,894
$227,462
$386,992
Total Liabilities & Equity
$79,000
$231,187
$343,250
$491,401
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GARRETT'S BIKE SHOP - QB
30
About the Balance Sheet Our goal is to repay the loans from our family within the first year, and we project paying Han Delbar his entire purchase price within five years. Other balance sheet information is shown in the table.
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31
GARRETT'S BIKE SHOP - QB
Appendix Revenue Forecast Revenue Forecast Table (With Monthly Detail) FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
New Bikes
$1,934
$14,000
$23,983
$18,000
$15,360
$20,000
$20,420
$23,700
$21,000
$18,700
$11,700
$11,900
Clothing
$3,500
$3,500
$4,500
$6,500
$10,500
$7,500
$4,500
$3,500
$4,500
$6,500
$7,500
$5,500
$11,000
$12,500
$14,000
$11,000
$10,000
$15,000
$9,500
$8,000
$8,000
$9,400
$11,000
$13,000
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$11,000
$11,000
$13,000
$14,000
$12,000
$11,000
$12,000
$15,982
$18,358
$19,260
$19,118
$19,644
$27,534
$41,100
$55,583
$49,600
$47,960
$53,600
$46,520
$51,282
$51,958
$53,960
$49,418
$50,144
New Bikes
$716
$5,180
$8,874
$6,660
$5,683
$7,400
$7,555
$8,769
$7,770
$6,919
$4,329
$4,403
Repair and Service
$2,750
$2,750
$3,250
$3,500
$3,000
$2,750
$3,000
$3,996
$4,590
$4,815
$4,780
$4,911
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
Accessories and Parts
$5,500
$6,250
$7,000
$5,500
$5,000
$7,500
$4,750
$4,000
$4,000
$4,700
$5,500
$6,500
Clothing
$1,225
$1,225
$1,575
$2,275
$3,675
$2,625
$1,575
$1,225
$1,575
$2,275
$2,625
$1,925
$10,206
$15,420
$20,714
$17,950
$17,373
$20,290
$16,895
$18,005
$17,950
$18,724
$17,249
$17,754
$17,328
$25,680
$34,869
$31,650
$30,587
$33,310
$29,625
$33,277
$34,008
$35,236
$32,169
$32,390
63%
62%
63%
64%
64%
62%
64%
65%
65%
65%
65%
65%
Revenue
Accessories and Parts University Patrol Service Contract Repair and Service
Total Revenue Direct Cost
University Patrol Service Contract
Total Direct Cost Gross Margin
Gross Margin %
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32
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,834
$20,834
$20,834
$20,834
$6,516
$6,516
$6,516
$6,516
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,909
$15,909
$15,909
$15,909
$57,747
$57,747
$57,747
$57,747
$57,748
$57,748
$57,748
$57,748
$57,750
$57,750
$57,750
$57,750
New Bikes
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,709
$7,709
$7,709
$7,709
Repair and Service
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
Accessories and Parts
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
Clothing
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,172
$21,172
$21,172
$21,172
$36,576
$36,576
$36,576
$36,576
$36,577
$36,577
$36,577
$36,577
$36,578
$36,578
$36,578
$36,578
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
Revenue New Bikes Clothing Accessories and Parts University Patrol Service Contract Repair and Service
Total Revenue Direct Cost
University Patrol Service Contract
Total Direct Cost Gross Margin
Gross Margin %
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33
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$22,916
$22,916
$22,916
$22,916
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,495
$7,495
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,532
$16,532
$16,532
$132
$132
$132
$132
$132
$132
$132
$132
$132
$133
$133
$133
$18,294
$18,294
$18,294
$18,294
$18,294
$18,295
$18,295
$18,295
$18,295
$18,295
$18,295
$18,295
$65,367
$65,367
$65,367
$65,367
$65,368
$65,369
$65,369
$65,369
$65,369
$65,371
$65,372
$65,372
New Bikes
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
Repair and Service
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
Accessories and Parts
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
Clothing
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$41,405
$41,405
$41,405
$41,405
$41,406
$41,407
$41,407
$41,407
$41,407
$41,409
$41,410
$41,410
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
Revenue New Bikes Clothing Accessories and Parts University Patrol Service Contract Repair and Service
Total Revenue Direct Cost
University Patrol Service Contract
Total Direct Cost Gross Margin
Gross Margin %
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34
GARRETT'S BIKE SHOP - QB
FY2016
FY2017
FY2018
$200,697
$250,000
$275,000
$68,000
$78,200
$89,930
$132,400
$172,500
$198,375
Revenue New Bikes Clothing Accessories and Parts University Patrol Service Contract
$1,200
$1,380
$1,587
$176,362
$190,900
$219,535
$578,659
$692,980
$784,427
New Bikes
$74,258
$92,500
$101,750
Repair and Service
$44,091
$47,725
$54,884
$180
$207
$238
$66,200
$86,250
$99,188
Repair and Service
Total Revenue Direct Cost
University Patrol Service Contract Accessories and Parts Clothing
Total Direct Cost Gross Margin
Gross Margin %
$23,800
$27,370
$31,476
$208,529
$254,052
$287,536
$370,130
$438,928
$496,891
64%
63%
63%
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35
GARRETT'S BIKE SHOP - QB
Personnel Plan Personnel Table (With Monthly Detail) FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Part-time Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,666
$2,666
$2,666
$2,666
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
Dee Ray
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
Jean-Baptiste Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Part-time Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
Dee Ray
$2,047
$2,047
$2,047
$2,047
$2,047
$2,047
$2,048
$2,048
$2,048
$2,048
$2,048
$2,048
Jean-Baptiste Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Total
FY2017
Total
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36
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Part-time Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,774
$2,774
$2,774
$2,774
$2,774
$2,774
$2,774
$2,775
$2,775
$2,775
$2,775
$2,775
Dee Ray
$2,149
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
Jean-Baptiste Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Total
FY2016
FY2017
FY2018
Part-time Employees
$50,000
$50,000
$50,000
Valerie Pede
$32,000
$32,640
$33,293
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$19,800
$19,800
$125,200
$127,010
$128,892
Total
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
37
GARRETT'S BIKE SHOP - QB
Budget Budget Table (With Monthly Detail) FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$2,608
$2,608
$2,608
$2,608
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
Advertising
$551
$822
$1,112
$992
$959
$1,072
$930
$1,026
$1,039
$1,079
$988
$1,003
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
Operating Expenses Salary Employee Related Expenses
Rent Utilities
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Office Expenses
$1,377
$2,055
$2,779
$2,480
$2,398
$2,680
$2,326
$2,564
$2,598
$2,698
$2,471
$2,507
Expense from Other Current Assets
$1,667
$1,666
$1,667
$1,667
$1,666
$1,667
$22,135
$23,083
$24,098
$23,679
$23,566
$23,962
$21,799
$22,133
$22,180
$22,320
$22,002
$22,053
Total Operating Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
38
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Operating Expenses Salary
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Employee Related Expenses
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
Advertising
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,888
$2,888
$2,888
$2,888
$22,771
$22,771
$22,771
$22,771
$22,772
$22,772
$22,773
$22,773
$22,774
$22,774
$22,774
$22,774
Rent Utilities Office Expenses Expense from Other Current Assets
Total Operating Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
39
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Operating Expenses Salary
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Employee Related Expenses
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,686
$2,686
$2,686
$2,686
$2,686
Advertising
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,269
$3,269
$3,269
$23,499
$23,500
$23,500
$23,500
$23,501
$23,501
$23,501
$23,503
$23,503
$23,504
$23,504
$23,504
Rent Utilities Office Expenses Expense from Other Current Assets
Total Operating Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
40
GARRETT'S BIKE SHOP - QB
FY2016
FY2017
FY2018
Operating Expenses Salary
$125,200
$127,010
$128,892
Employee Related Expenses
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
Expense from Other Current Assets
$10,000
$273,272
$282,025
Rent Utilities
Total Operating Expenses
$273,006
Loans and Investments Loans and Investments Table (With Monthly Detail) FY2016 Loan Loan at 7% interest for 60 mos.
Total Amount Received
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$100,000
$100,000
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
41
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2018 Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2016 Loan Loan at 7% interest for 60 mos.
Total Amount Received
FY2017
FY2018
$100,000
$100,000
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
42
GARRETT'S BIKE SHOP - QB
Profit and Loss Statement Profit and Loss Statement (With Monthly Detail) FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Revenue
$27,534
$41,100
$55,583
$49,600
$47,960
$53,600
$46,520
$51,282
$51,958
$53,960
$49,418
$50,144
Direct Costs
$10,206
$15,420
$20,714
$17,950
$17,373
$20,290
$16,895
$18,005
$17,950
$18,724
$17,249
$17,754
$17,328
$25,680
$34,869
$31,650
$30,587
$33,310
$29,625
$33,277
$34,008
$35,236
$32,169
$32,390
63%
62%
63%
64%
64%
62%
64%
65%
65%
65%
65%
65%
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$2,608
$2,608
$2,608
$2,608
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
Advertising
$551
$822
$1,112
$992
$959
$1,072
$930
$1,026
$1,039
$1,079
$988
$1,003
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Office Expenses
$1,377
$2,055
$2,779
$2,480
$2,398
$2,680
$2,326
$2,564
$2,598
$2,698
$2,471
$2,507
Expense from Other Current Assets
$1,667
$1,666
$1,667
$1,667
$1,666
$1,667
Total Operating Expenses
$22,135
$23,083
$24,098
$23,679
$23,566
$23,962
$21,799
$22,133
$22,180
$22,320
$22,002
$22,053
Operating Income
($4,807)
$2,597
$10,771
$7,971
$7,021
$9,348
$7,826
$11,144
$11,828
$12,916
$10,167
$10,337
$583
$575
$567
$559
$550
$542
$534
$525
$517
$508
$500
Gross Margin
Gross Margin % Operating Expenses Salary Employee Related Expenses
Rent Utilities
Interest Incurred
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
43
GARRETT'S BIKE SHOP - QB
Depreciation and Amortization
$1,025
$1,025
$1,775
$1,775
$1,914
$1,914
$1,914
$1,914
$1,913
$1,914
$1,914
$1,934
$0
$0
$537
$844
$682
$1,033
$805
$1,305
$1,408
$1,573
$1,162
$1,185
Total Expenses
$33,366
$40,111
$47,699
$44,815
$44,094
$47,749
$41,955
$43,891
$43,976
$45,048
$42,835
$43,426
Net Profit
($5,832)
$989
$7,884
$4,785
$3,866
$5,851
$4,565
$7,391
$7,982
$8,912
$6,583
$6,718
(21%)
2%
14%
10%
8%
11%
10%
14%
15%
17%
13%
13%
Income Taxes
Net Profit / Sales
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
44
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Revenue
$57,747
$57,747
$57,747
$57,747
$57,748
$57,748
$57,748
$57,748
$57,750
$57,750
$57,750
$57,750
Direct Costs
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,172
$21,172
$21,172
$21,172
$36,576
$36,576
$36,576
$36,576
$36,577
$36,577
$36,577
$36,577
$36,578
$36,578
$36,578
$36,578
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Employee Related Expenses
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
Advertising
Gross Margin
Gross Margin % Operating Expenses Salary
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,888
$2,888
$2,888
$2,888
Total Operating Expenses
$22,771
$22,771
$22,771
$22,771
$22,772
$22,772
$22,773
$22,773
$22,774
$22,774
$22,774
$22,774
Operating Income
$13,805
$13,805
$13,805
$13,805
$13,805
$13,805
$13,804
$13,804
$13,804
$13,804
$13,804
$13,804
Rent Utilities Office Expenses Expense from Other Current Assets
Interest Incurred
$491
$482
$474
$465
$456
$447
$438
$429
$420
$411
$402
$393
Depreciation and Amortization
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
Income Taxes
$1,707
$1,709
$1,709
$1,711
$1,712
$1,714
$1,715
$1,716
$1,717
$1,719
$1,721
$1,721
$48,074
$48,067
$48,059
$48,052
$48,045
$48,037
$48,031
$48,023
$48,017
$48,010
$48,003
$47,994
Total Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
45
GARRETT'S BIKE SHOP - QB
Net Profit Net Profit / Sales
$9,673
$9,680
$9,688
$9,695
$9,703
$9,711
$9,717
$9,725
$9,733
$9,740
$9,747
$9,756
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
46
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Revenue
$65,367
$65,367
$65,367
$65,367
$65,368
$65,369
$65,369
$65,369
$65,369
$65,371
$65,372
$65,372
Direct Costs
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$41,405
$41,405
$41,405
$41,405
$41,406
$41,407
$41,407
$41,407
$41,407
$41,409
$41,410
$41,410
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Employee Related Expenses
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,686
$2,686
$2,686
$2,686
$2,686
Advertising
Gross Margin
Gross Margin % Operating Expenses Salary
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,269
$3,269
$3,269
Total Operating Expenses
$23,499
$23,500
$23,500
$23,500
$23,501
$23,501
$23,501
$23,503
$23,503
$23,504
$23,504
$23,504
Operating Income
$17,906
$17,905
$17,905
$17,905
$17,905
$17,906
$17,906
$17,904
$17,904
$17,905
$17,906
$17,906
Rent Utilities Office Expenses Expense from Other Current Assets
Interest Incurred
$383
$374
$365
$355
$346
$336
$327
$317
$307
$298
$288
$278
Depreciation and Amortization
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
Income Taxes
$2,338
$2,340
$2,341
$2,342
$2,344
$2,346
$2,346
$2,348
$2,350
$2,351
$2,352
$2,355
$52,116
$52,110
$52,101
$52,093
$52,087
$52,079
$52,070
$52,064
$52,056
$52,049
$52,040
$52,032
Total Expenses
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
47
GARRETT'S BIKE SHOP - QB
Net Profit Net Profit / Sales
$13,251
$13,257
$13,266
$13,274
$13,281
$13,290
$13,299
$13,305
$13,313
$13,322
$13,332
$13,340
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
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48
GARRETT'S BIKE SHOP - QB
FY2016
FY2017
FY2018
Revenue
$578,659
$692,980
$784,427
Direct Costs
$208,529
$254,052
$287,536
$370,130
$438,928
$496,891
64%
63%
63%
$125,200
$127,010
$128,892
Employee Related Expenses
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
Gross Margin
Gross Margin % Operating Expenses Salary
Rent Utilities
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
Expense from Other Current Assets
$10,000
$273,006
$273,272
$282,025
$97,124
$165,656
$214,866
$5,960
$5,308
$3,974
Depreciation and Amortization
$20,931
$23,207
$23,206
Income Taxes
$10,534
$20,571
$28,153
$518,960
$576,410
$624,894
$59,699
$116,570
$159,533
10%
17%
20%
Total Operating Expenses Operating Income Interest Incurred
Total Expenses Net Profit Net Profit / Sales
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49
GARRETT'S BIKE SHOP - QB
Balance Sheet Balance Sheet (With Monthly Detail) As of Period's End Cash Accounts Receivable Inventory
Starting Balances
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$0
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$52,102
$10,000
$13,558
$20,619
$28,058
$24,920
$24,025
$26,948
$23,493
$25,938
$26,176
$27,078
$24,612
$24,974
$7,500
$36,134
$38,664
$35,323
$37,663
$37,185
$34,900
$35,955
$36,674
$35,973
$35,003
$38,925
$42,342
$8,333
$6,667
$5,000
$3,333
$1,667
$0
$0
$0
$0
$0
$0
$0
$17,500
$108,162
$111,356
$72,059
$77,874
$57,859
$66,502
$70,143
$81,381
$92,261
$99,912
$110,628
$119,418
$61,500
$61,500
$61,500
$106,500
$106,500
$131,500
$131,500
$131,500
$131,500
$131,500
$131,500
$131,500
$132,700
($1,025)
($2,050)
($3,825)
($5,600)
($7,514)
($9,428)
($11,342)
($13,256)
($15,169)
($17,083)
($18,997)
($20,931)
Other Current Assets
Total Current Assets Long-Term Assets Accumulated Depreciation
Total LongTerm Assets
$61,500
$60,475
$59,450
$102,675
$100,900
$123,986
$122,072
$120,158
$118,244
$116,331
$114,417
$112,503
$111,769
Total Assets
$79,000
$168,637
$170,806
$174,734
$178,774
$181,845
$188,574
$190,301
$199,625
$208,592
$214,329
$223,131
$231,187
Accounts Payable
$27,800
$23,134
$24,731
$19,964
$21,322
$20,191
$20,066
$20,166
$20,581
$20,143
$20,108
$21,818
$22,618
$0
$0
$537
$1,381
$2,063
$3,096
$3,901
$5,206
$6,614
$8,187
$9,349
$10,534
$135
$1,115
$2,794
$1,260
$2,335
$3,735
$1,430
$3,089
$4,559
$1,309
$2,128
$2,961
$17,309
$17,410
$17,511
$17,613
$17,716
$17,819
$17,923
$18,028
$18,133
$18,239
$18,345
$18,452
Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue
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50
GARRETT'S BIKE SHOP - QB
Total Current Liabilities
$27,800
$40,578
$43,256
$40,806
$41,576
$42,305
$44,716
$43,420
$46,904
$49,449
$47,843
$51,640
$54,565
$82,691
$81,193
$79,687
$78,172
$76,648
$75,115
$73,573
$72,022
$70,462
$68,893
$67,315
$65,728
$27,800
$123,269
$124,449
$120,493
$119,748
$118,953
$119,831
$116,993
$118,926
$119,911
$116,736
$118,955
$120,293
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
($5,832)
($4,843)
$3,041
$7,826
$11,692
$17,543
$22,108
$29,499
$37,481
$46,393
$52,976
$59,694
Long-Term Debt
Total Liabilities Paid-in Capital Retained Earnings Earnings
Total Owner's Equity
$51,200
$45,368
$46,357
$54,241
$59,026
$62,892
$68,743
$73,308
$80,699
$88,681
$97,593
$104,176
$110,894
Total Liabilities & Equity
$79,000
$168,637
$170,806
$174,734
$178,774
$181,845
$188,574
$190,301
$199,625
$208,592
$214,329
$223,131
$231,187
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51
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Cash
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$177,762
Accounts Receivable
$29,005
$29,004
$29,004
$29,003
$29,003
$29,003
$29,002
$29,002
$29,003
$29,002
$29,002
$29,002
Inventory
$42,342
$42,342
$42,342
$42,342
$42,342
$42,342
$42,343
$42,344
$42,344
$42,344
$45,134
$47,924
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$130,018
$143,433
$146,182
$155,089
$168,371
$181,654
$190,560
$203,841
$217,124
$226,031
$240,708
$254,688
Long-Term Assets
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
Accumulated Depreciation
($22,865)
($24,799)
($26,733)
($28,667)
($30,601)
($32,534)
($34,468)
($36,402)
($38,336)
($40,270)
($42,204)
($44,138)
Total LongTerm Assets
$109,835
$107,901
$105,967
$104,033
$102,099
$100,166
$98,232
$96,298
$94,364
$92,430
$90,496
$88,562
Total Assets
$239,853
$251,334
$252,149
$259,122
$270,470
$281,820
$288,792
$300,139
$311,488
$318,461
$331,204
$343,250
Accounts Payable
$22,896
$23,028
$23,027
$23,026
$23,025
$23,024
$23,023
$23,022
$23,022
$23,022
$24,417
$25,114
Income Taxes Payable
$12,241
$13,950
$5,125
$6,836
$8,548
$10,262
$11,977
$13,693
$15,410
$17,129
$18,850
$20,571
Sales Taxes Payable
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
Short-Term Debt
$18,560
$18,668
$18,777
$18,887
$18,997
$19,108
$19,219
$19,331
$19,444
$19,557
$19,671
$19,786
$55,155
$58,562
$51,304
$50,207
$53,486
$56,769
$55,677
$58,962
$62,251
$61,166
$65,854
$69,846
$64,131
$62,525
$60,910
$59,285
$57,651
$56,007
$54,354
$52,691
$51,018
$49,336
$47,644
$45,942
$119,286
$121,087
$112,214
$109,492
$111,137
$112,776
$110,031
$111,653
$113,269
$110,502
$113,498
$115,788
Paid-in Capital
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
Retained Earnings
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
Other Current Assets
Total Current Assets
Prepaid Revenue
Total Current Liabilities Long-Term Debt
Total Liabilities
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52
GARRETT'S BIKE SHOP - QB
Earnings
$9,673
$19,353
$29,041
$38,736
$48,439
$58,150
$67,867
$77,592
$87,325
$97,065
$106,812
$116,568
Total Owner's Equity
$120,567
$130,247
$139,935
$149,630
$159,333
$169,044
$178,761
$188,486
$198,219
$207,959
$217,706
$227,462
Total Liabilities & Equity
$239,853
$251,334
$252,149
$259,122
$270,470
$281,820
$288,792
$300,139
$311,488
$318,461
$331,204
$343,250
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53
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$345,317
Accounts Receivable
$32,805
$32,805
$32,805
$32,805
$32,805
$32,805
$32,804
$32,804
$32,804
$32,805
$32,805
$32,804
Inventory
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$268,108
$285,769
$282,726
$295,442
$312,970
$330,500
$343,216
$360,743
$378,270
$390,986
$408,516
$426,045
Long-Term Assets
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
Accumulated Depreciation
($46,072)
($48,006)
($49,939)
($51,873)
($53,807)
($55,741)
($57,675)
($59,609)
($61,543)
($63,477)
($65,411)
($67,344)
Total LongTerm Assets
$86,628
$84,694
$82,761
$80,827
$78,893
$76,959
$75,025
$73,091
$71,157
$69,223
$67,289
$65,356
Total Assets
$354,736
$370,463
$365,487
$376,269
$391,863
$407,459
$418,241
$433,834
$449,427
$460,209
$475,805
$491,401
Accounts Payable
$25,379
$25,511
$25,510
$25,509
$25,508
$25,507
$25,506
$25,505
$25,504
$25,503
$25,502
$25,501
Income Taxes Payable
$22,909
$25,249
$7,019
$9,361
$11,705
$14,051
$16,397
$18,745
$21,095
$23,446
$25,798
$28,153
Sales Taxes Payable
$1,604
$3,208
$4,812
$1,604
$3,208
$4,813
$1,604
$3,208
$4,812
$1,604
$3,209
$4,813
Short-Term Debt
$19,901
$20,017
$20,134
$20,251
$20,369
$20,488
$20,608
$20,728
$20,849
$20,971
$21,094
$21,217
$69,793
$73,985
$57,475
$56,725
$60,790
$64,859
$64,115
$68,186
$72,260
$71,524
$75,603
$79,684
$44,230
$42,508
$40,776
$39,034
$37,282
$35,519
$33,746
$31,963
$30,169
$28,365
$26,550
$24,725
$114,023
$116,493
$98,251
$95,759
$98,072
$100,378
$97,861
$100,149
$102,429
$99,889
$102,153
$104,409
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
Cash
Other Current Assets
Total Current Assets
Prepaid Revenue
Total Current Liabilities Long-Term Debt
Total Liabilities Paid-in Capital Retained Earnings
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54
GARRETT'S BIKE SHOP - QB
Earnings
$13,251
$26,508
$39,774
$53,048
$66,329
$79,619
$92,918
$106,223
$119,536
$132,858
$146,190
$159,530
Total Owner's Equity
$240,713
$253,970
$267,236
$280,510
$293,791
$307,081
$320,380
$333,685
$346,998
$360,320
$373,652
$386,992
Total Liabilities & Equity
$354,736
$370,463
$365,487
$376,269
$391,863
$407,459
$418,241
$433,834
$449,427
$460,209
$475,805
$491,401
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55
GARRETT'S BIKE SHOP - QB
As of Period's End
Starting Balances
FY2016
FY2017
FY2018
$0
$52,102
$177,762
$345,317
$10,000
$24,974
$29,002
$32,804
$7,500
$42,342
$47,924
$47,924
$0
$0
$0
$17,500
$119,418
$254,688
$426,045
$61,500
$132,700
$132,700
$132,700
($20,931)
($44,138)
($67,344)
Total Long-Term Assets
$61,500
$111,769
$88,562
$65,356
Total Assets
$79,000
$231,187
$343,250
$491,401
$27,800
$22,618
$25,114
$25,501
$10,534
$20,571
$28,153
$2,961
$4,375
$4,813
$18,452
$19,786
$21,217
$54,565
$69,846
$79,684
$65,728
$45,942
$24,725
$27,800
$120,293
$115,788
$104,409
$50,700
$50,700
$50,700
$50,700 $176,762
Cash Accounts Receivable Inventory Other Current Assets
Total Current Assets Long-Term Assets Accumulated Depreciation
Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue
Total Current Liabilities
$27,800
Long-Term Debt
Total Liabilities Paid-in Capital Retained Earnings
$500
Earnings
$500
$60,194
$59,694
$116,568
$159,530
Total Owner's Equity
$51,200
$110,894
$227,462
$386,992
Total Liabilities & Equity
$79,000
$231,187
$343,250
$491,401
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56
GARRETT'S BIKE SHOP - QB
Cash Flow Statement Cash Flow Statement (With Monthly Detail) FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
($5,832)
$989
$7,884
$4,785
$3,866
$5,851
$4,565
$7,391
$7,982
$8,912
$6,583
$6,718
$2,692
$2,691
$3,442
$3,442
$3,580
$3,581
$1,914
$1,914
$1,913
$1,914
$1,914
$1,934
Change in Accounts Receivable
($3,558)
($7,061)
($7,439)
$3,138
$895
($2,923)
$3,455
($2,445)
($238)
($902)
$2,466
($362)
Change in Inventory
($28,634)
($2,530)
$3,341
($2,340)
$478
$2,285
($1,055)
($719)
$701
$970
($3,922)
($3,417)
Change in Accounts Payable
($4,666)
$1,597
($4,767)
$1,358
($1,131)
($125)
$100
$415
($438)
($35)
$1,710
$800
$0
$0
$537
$844
$682
$1,033
$805
$1,305
$1,408
$1,573
$1,162
$1,185
$135
$980
$1,679
($1,534)
$1,075
$1,400
($2,305)
$1,659
$1,470
($3,250)
$819
$833
($39,863)
($3,334)
$4,677
$9,693
$9,445
$11,102
$7,479
$9,520
$12,798
$9,182
$10,732
$7,691
Net Cash Flow from Operations Net Profit Depreciation and Amortization
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($10,000)
($45,000)
($25,000)
($1,200)
Investments Received
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57
GARRETT'S BIKE SHOP - QB
Change in Long-Term Debt
$82,691
($1,498)
($1,506)
($1,515)
($1,524)
($1,533)
($1,542)
($1,551)
($1,560)
($1,569)
($1,578)
($1,587)
Change in Short-Term Debt
$17,309
$101
$101
$102
$103
$103
$104
$105
$105
$106
$106
$107
$90,000
($1,397)
($46,405)
($1,413)
($26,421)
($1,430)
($1,438)
($1,446)
($1,455)
($1,463)
($1,472)
($2,680)
$0
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$50,137
($4,731)
($41,728)
$8,280
($16,976)
$9,672
$6,041
$8,074
$11,343
$7,719
$9,260
$5,011
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$52,102
Dividends & Distributions
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
58
GARRETT'S BIKE SHOP - QB
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Net Profit
$9,673
$9,680
$9,688
$9,695
$9,703
$9,711
$9,717
$9,725
$9,733
$9,740
$9,747
$9,756
Depreciation and Amortization
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
($4,031)
$1
$0
$1
$0
$0
$1
$0
($1)
$1
$0
$0
Change in Inventory
$0
$0
$0
$0
$0
$0
($1)
($1)
$0
$0
($2,790)
($2,790)
Change in Accounts Payable
$278
$132
($1)
($1)
($1)
($1)
($1)
($1)
$0
$0
$1,395
$697
$1,707
$1,709
($8,825)
$1,711
$1,712
$1,714
$1,715
$1,716
$1,717
$1,719
$1,721
$1,721
($1,503)
$1,458
$1,459
($2,917)
$1,458
$1,459
($2,917)
$1,458
$1,459
($2,917)
$1,458
$1,459
$8,058
$14,914
$4,255
$10,423
$14,806
$14,816
$10,448
$14,831
$14,842
$10,477
$13,465
$12,777
Change in Long-Term Debt
($1,597)
($1,606)
($1,615)
($1,625)
($1,634)
($1,644)
($1,653)
($1,663)
($1,673)
($1,682)
($1,692)
($1,702)
Change in Short-Term Debt
$108
$108
$109
$110
$110
$111
$111
$112
$113
$113
$114
$115
Net Cash Flow from Operations
Change in Accounts Receivable
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received
Dividends & Distributions
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59
GARRETT'S BIKE SHOP - QB
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
($1,489)
($1,498)
($1,506)
($1,515)
($1,524)
($1,533)
($1,542)
($1,551)
($1,560)
($1,569)
($1,578)
($1,587)
$52,102
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$6,569
$13,416
$2,749
$8,908
$13,282
$13,283
$8,906
$13,280
$13,282
$8,908
$11,887
$11,190
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$177,762
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
60
GARRETT'S BIKE SHOP - QB
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$13,251
$13,257
$13,266
$13,274
$13,281
$13,290
$13,299
$13,305
$13,313
$13,322
$13,332
$13,340
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
($3,803)
$0
$0
$0
$0
$0
$1
$0
$0
($1)
$0
$1
Change in Inventory
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Change in Accounts Payable
$265
$132
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
$2,338
$2,340
($18,230)
$2,342
$2,344
$2,346
$2,346
$2,348
$2,350
$2,351
$2,352
$2,355
($2,771)
$1,604
$1,604
($3,208)
$1,604
$1,605
($3,209)
$1,604
$1,604
($3,208)
$1,605
$1,604
$11,214
$19,267
($1,428)
$14,341
$19,162
$19,174
$14,370
$19,190
$19,200
$14,397
$19,222
$19,232
Change in Long-Term Debt
($1,712)
($1,722)
($1,732)
($1,742)
($1,752)
($1,763)
($1,773)
($1,783)
($1,794)
($1,804)
($1,815)
($1,825)
Change in Short-Term Debt
$115
$116
$117
$117
$118
$119
$120
$120
$121
$122
$123
$123
Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable
Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received
Dividends & Distributions
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
61
GARRETT'S BIKE SHOP - QB
Net Cash Flow from Investing & Financing
($1,597)
($1,606)
($1,615)
($1,625)
($1,634)
($1,644)
($1,653)
($1,663)
($1,673)
($1,682)
($1,692)
($1,702)
Cash at Beginning of Period
$177,762
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$9,617
$17,661
($3,043)
$12,716
$17,528
$17,530
$12,717
$17,527
$17,527
$12,715
$17,530
$17,530
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$345,317
Net Change in Cash
Cash at End of Period
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62
GARRETT'S BIKE SHOP - QB
FY2016
FY2017
FY2018
Net Profit
$59,699
$116,570
$159,533
Depreciation and Amortization
$30,931
$23,207
$23,206
Change in Accounts Receivable
($14,975)
($4,026)
($3,798)
Change in Inventory
Net Cash Flow from Operations
($34,842)
($5,582)
$0
Change in Accounts Payable
($5,184)
$2,492
$386
Change in Income Tax Payable
$10,534
$10,037
$7,582
$2,961
$1,414
$438
$49,124
$144,112
$187,347
Change in Sales Tax Payable Change in Prepaid Revenue
Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold
($81,200)
Investments Received Change in Long-Term Debt
$65,728
($19,786)
($21,217)
Change in Short-Term Debt
$18,452
$1,334
$1,431
$2,980
($18,452)
($19,786)
($2)
$52,102
$177,756
$52,104
$125,660
$167,561
$52,102
$177,762
$345,317
Dividends & Distributions
Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash
Cash at End of Period
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
