Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Insurance | $0 |
Rent | $800 |
Inventory | $7,000 |
Display Equipment | $2,000 |
Store Sign | $2,000 |
Other | $0 |
Total Start-up Expenses | $12,300 |
Start-up Assets | |
Cash Required | $12,700 |
Start-up Inventory | $0 |
Other Current Assets | $0 |
Long-term Assets | $0 |
Total Assets | $12,700 |
Total Requirements | $25,000 |
Store products include:
The McKenzie National Park System is dotted with a number of small fishing tackle and bait shops on small roads around the park system. Most of them only serve a few fishing areas and have irregular operating hours. Highway 126 is the only main traffic artery into the park system and yet there are currently no other tackle and bait shop located on Highway 126. This is because the closest commercial center to the park system, Oakridge Plaza, is eight miles from the park’s entrance. Over 90% of the park visitors use Highway 126 to access the park system. Last year, the park system welcomed 100,000 fishing enthusiasts.
These enthusiasts were typically male between the ages of 20-45 years old. A fishing party of three to five is the norm for the area. Approximately 70% of these fishing enthusiasts visit the park system several times a year and develop strong customer relationships with the area’s businesses.
The McKenzie Tackle and Bait Shop will create a base of loyal customers with quality service and fishing information that customers will come to depend.
Highway 126 is a four-lane highway running north to the park system and south to the town of Mapleton. The McKenzie Tackle and Bait Shop is located just off the northbound lanes and is next to the Oakridge Plaza. The shop will erect a large sign to grab customer attention to its location.
Once in the store, Brad West will provide the exceptional service that will build a loyal customer base.
McKenzie Tackle and Bait Shop’s competitive edge is two-fold:
The key to customer satisfaction is a customer-friendly store that is easy to navigate and has knowledgeable people to help customers find what they want quickly.
The following is the sales forecast for three years. The monthly estimates for the first year are included in the appendices.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Fishing Products | $48,400 | $60,000 | $70,000 |
Misc | $7,600 | $8,000 | $9,000 |
Total Sales | $56,000 | $68,000 | $79,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Fishing Products | $7,000 | $9,000 | $10,000 |
Misc | $1,500 | $1,750 | $2,000 |
Subtotal Direct Cost of Sales | $8,500 | $10,750 | $12,000 |
Brad West will operate the shop without any additional staff.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Brad West | $24,000 | $28,000 | $35,000 |
Other | $0 | $0 | $0 |
Total People | 1 | 1 | 1 |
Total Payroll | $24,000 | $28,000 | $35,000 |
The following sections will outline the important financial assumptions, break-even analysis, profit and loss, cash flow, and the balance sheet.
The break-even analysis indicates what is needed in monthly revenue to break even.
Break-even Analysis | |
Monthly Revenue Break-even | $4,595 |
Assumptions: | |
Average Percent Variable Cost | 15% |
Estimated Monthly Fixed Cost | $3,898 |
The following table and charts will highlight projected profit and loss. The appendices include first year monthly P & L estimates.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $56,000 | $68,000 | $79,000 |
Direct Cost of Sales | $8,500 | $10,750 | $12,000 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $8,500 | $10,750 | $12,000 |
Gross Margin | $47,500 | $57,250 | $67,000 |
Gross Margin % | 84.82% | 84.19% | 84.81% |
Expenses | |||
Payroll | $24,000 | $28,000 | $35,000 |
Sales and Marketing and Other Expenses | $8,000 | $10,000 | $11,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $1,470 | $1,800 | $1,800 |
Insurance | $0 | $0 | $0 |
Rent | $9,700 | $9,700 | $9,700 |
Payroll Taxes | $3,600 | $4,200 | $5,250 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $46,770 | $53,700 | $62,750 |
Profit Before Interest and Taxes | $730 | $3,550 | $4,250 |
EBITDA | $730 | $3,550 | $4,250 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $219 | $1,065 | $1,275 |
Net Profit | $511 | $2,485 | $2,975 |
Net Profit/Sales | 0.91% | 3.65% | 3.77% |
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $56,000 | $68,000 | $79,000 |
Subtotal Cash from Operations | $56,000 | $68,000 | $79,000 |
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 | $56,000 | $68,000 | $79,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $24,000 | $28,000 | $35,000 |
Bill Payments | $32,132 | $35,243 | $40,920 |
Subtotal Spent on Operations | $56,132 | $63,243 | $75,920 |
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 | $56,132 | $63,243 | $75,920 |
Net Cash Flow | ($132) | $4,757 | $3,080 |
Cash Balance | $12,568 | $17,325 | $20,405 |
The following is the projected balance sheet for three years. The first year monthly projections can be seen in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $12,568 | $17,325 | $20,405 |
Inventory | $1,170 | $1,480 | $1,652 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $13,738 | $18,805 | $22,057 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $13,738 | $18,805 | $22,057 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $527 | $3,109 | $3,386 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $527 | $3,109 | $3,386 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $527 | $3,109 | $3,386 |
Paid-in Capital | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($12,300) | ($11,789) | ($9,304) |
Earnings | $511 | $2,485 | $2,975 |
Total Capital | $13,211 | $15,696 | $18,671 |
Total Liabilities and Capital | $13,738 | $18,805 | $22,057 |
Net Worth | $13,211 | $15,696 | $18,671 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5091, Sporting & Recreational Goods, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 21.43% | 16.18% | 11.50% |
Percent of Total Assets | ||||
Inventory | 8.52% | 7.87% | 7.49% | 28.00% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 29.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 88.70% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 11.30% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 3.83% | 16.53% | 15.35% | 38.00% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 9.00% |
Total Liabilities | 3.83% | 16.53% | 15.35% | 47.00% |
Net Worth | 96.17% | 83.47% | 84.65% | 53.00% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 84.82% | 84.19% | 84.81% | 23.00% |
Selling, General & Administrative Expenses | 83.91% | 80.54% | 81.04% | 14.80% |
Advertising Expenses | 14.29% | 14.71% | 13.92% | 0.70% |
Profit Before Interest and Taxes | 1.30% | 5.22% | 5.38% | 2.00% |
Main Ratios | ||||
Current | 26.08 | 6.05 | 6.51 | 2.19 |
Quick | 23.86 | 5.57 | 6.03 | 1.22 |
Total Debt to Total Assets | 3.83% | 16.53% | 15.35% | 47.00% |
Pre-tax Return on Net Worth | 5.53% | 22.62% | 22.76% | 5.30% |
Pre-tax Return on Assets | 5.31% | 18.88% | 19.27% | 10.10% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 0.91% | 3.65% | 3.77% | n.a |
Return on Equity | 3.87% | 15.83% | 15.93% | n.a |
Activity Ratios | ||||
Inventory Turnover | 9.23 | 8.11 | 7.66 | n.a |
Accounts Payable Turnover | 61.99 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 18 | 29 | n.a |
Total Asset Turnover | 4.08 | 3.62 | 3.58 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.04 | 0.20 | 0.18 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $13,211 | $15,696 | $18,671 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.25 | 0.28 | 0.28 | n.a |
Current Debt/Total Assets | 4% | 17% | 15% | n.a |
Acid Test | 23.86 | 5.57 | 6.03 | n.a |
Sales/Net Worth | 4.24 | 4.33 | 4.23 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Fishing Products | 0% | $0 | $0 | $0 | $4,000 | $5,400 | $6,000 | $6,000 | $7,000 | $8,000 | $7,000 | $5,000 | $0 |
Misc | 0% | $0 | $0 | $0 | $800 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $800 | $0 |
Total Sales | $0 | $0 | $0 | $4,800 | $6,400 | $7,000 | $7,000 | $8,000 | $9,000 | $8,000 | $5,800 | $0 | |
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 | |
Fishing Products | $0 | $0 | $0 | $700 | $800 | $800 | $900 | $1,000 | $800 | $1,000 | $600 | $400 | |
Misc | $0 | $0 | $0 | $150 | $200 | $200 | $200 | $200 | $200 | $200 | $150 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $850 | $1,000 | $1,000 | $1,100 | $1,200 | $1,000 | $1,200 | $750 | $400 |
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 | ||
Brad West | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $0 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
Total Payroll | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $0 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $4,800 | $6,400 | $7,000 | $7,000 | $8,000 | $9,000 | $8,000 | $5,800 | $0 | |
Direct Cost of Sales | $0 | $0 | $0 | $850 | $1,000 | $1,000 | $1,100 | $1,200 | $1,000 | $1,200 | $750 | $400 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $850 | $1,000 | $1,000 | $1,100 | $1,200 | $1,000 | $1,200 | $750 | $400 | |
Gross Margin | $0 | $0 | $0 | $3,950 | $5,400 | $6,000 | $5,900 | $6,800 | $8,000 | $6,800 | $5,050 | ($400) | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 82.29% | 84.38% | 85.71% | 84.29% | 85.00% | 88.89% | 85.00% | 87.07% | 0.00% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $0 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $0 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $40 | $40 | $40 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $900 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $940 | $840 | $840 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $5,400 | $950 | |
Profit Before Interest and Taxes | ($940) | ($840) | ($840) | ($1,450) | $0 | $600 | $500 | $1,400 | $2,600 | $1,400 | ($350) | ($1,350) | |
EBITDA | ($940) | ($840) | ($840) | ($1,450) | $0 | $600 | $500 | $1,400 | $2,600 | $1,400 | ($350) | ($1,350) | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($282) | ($252) | ($252) | ($435) | $0 | $180 | $150 | $420 | $780 | $420 | ($105) | ($405) | |
Net Profit | ($658) | ($588) | ($588) | ($1,015) | $0 | $420 | $350 | $980 | $1,820 | $980 | ($245) | ($945) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | -21.15% | 0.00% | 6.00% | 5.00% | 12.25% | 20.22% | 12.25% | -4.22% | 0.00% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $4,800 | $6,400 | $7,000 | $7,000 | $8,000 | $9,000 | $8,000 | $5,800 | $0 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $4,800 | $6,400 | $7,000 | $7,000 | $8,000 | $9,000 | $8,000 | $5,800 | $0 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $4,800 | $6,400 | $7,000 | $7,000 | $8,000 | $9,000 | $8,000 | $5,800 | $0 | |
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 | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $0 | |
Bill Payments | $22 | $656 | $588 | $693 | $3,744 | $3,566 | $3,586 | $3,772 | $4,132 | $4,175 | $3,996 | $3,203 | |
Subtotal Spent on Operations | $22 | $656 | $588 | $3,693 | $6,744 | $6,566 | $6,586 | $6,772 | $7,132 | $7,175 | $6,996 | $3,203 | |
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 | $22 | $656 | $588 | $3,693 | $6,744 | $6,566 | $6,586 | $6,772 | $7,132 | $7,175 | $6,996 | $3,203 | |
Net Cash Flow | ($22) | ($656) | ($588) | $1,107 | ($344) | $435 | $414 | $1,228 | $1,868 | $825 | ($1,196) | ($3,203) | |
Cash Balance | $12,678 | $12,022 | $11,434 | $12,541 | $12,197 | $12,632 | $13,046 | $14,273 | $16,142 | $16,967 | $15,771 | $12,568 |
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 | $12,700 | $12,678 | $12,022 | $11,434 | $12,541 | $12,197 | $12,632 | $13,046 | $14,273 | $16,142 | $16,967 | $15,771 | $12,568 |
Inventory | $0 | $0 | $0 | $0 | $935 | $1,100 | $1,100 | $1,210 | $1,320 | $1,320 | $1,320 | $1,570 | $1,170 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $12,700 | $12,678 | $12,022 | $11,434 | $13,476 | $13,297 | $13,732 | $14,256 | $15,593 | $17,462 | $18,287 | $17,341 | $13,738 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $12,700 | $12,678 | $12,022 | $11,434 | $13,476 | $13,297 | $13,732 | $14,256 | $15,593 | $17,462 | $18,287 | $17,341 | $13,738 |
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 | $636 | $568 | $568 | $3,625 | $3,446 | $3,461 | $3,635 | $3,992 | $4,041 | $3,886 | $3,185 | $527 |
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 | $636 | $568 | $568 | $3,625 | $3,446 | $3,461 | $3,635 | $3,992 | $4,041 | $3,886 | $3,185 | $527 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $636 | $568 | $568 | $3,625 | $3,446 | $3,461 | $3,635 | $3,992 | $4,041 | $3,886 | $3,185 | $527 |
Paid-in Capital | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) | ($12,300) |
Earnings | $0 | ($658) | ($1,246) | ($1,834) | ($2,849) | ($2,849) | ($2,429) | ($2,079) | ($1,099) | $721 | $1,701 | $1,456 | $511 |
Total Capital | $12,700 | $12,042 | $11,454 | $10,866 | $9,851 | $9,851 | $10,271 | $10,621 | $11,601 | $13,421 | $14,401 | $14,156 | $13,211 |
Total Liabilities and Capital | $12,700 | $12,678 | $12,022 | $11,434 | $13,476 | $13,297 | $13,732 | $14,256 | $15,593 | $17,462 | $18,287 | $17,341 | $13,738 |
Net Worth | $12,700 | $12,042 | $11,454 | $10,866 | $9,851 | $9,851 | $10,271 | $10,621 | $11,601 | $13,421 | $14,401 | $14,156 | $13,211 |
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Fish farming, also known as aquaculture, is a rapidly growing industry that offers promising opportunities for entrepreneurs and individuals interested in the agricultural sector. With the increasing demand for seafood and the depletion of wild fish populations, fish farming provides a sustainable solution while offering profitable returns. In this article, we will explore the key aspects of a successful fish farming business plan and guide you through the process of starting your own fish farm.
Market analysis, startup costs and capital investment, revenue projections, operational expenses, financial forecasting, funding options, risk management, marketing and sales strategy, monitoring and evaluation, legal and regulatory considerations, expansion and growth plans, fish species selection, feeding and nutrition, disease prevention and management, tips for running a profitable fish farming business, can fish farming be profitable, what are the best fish species for beginners in fish farming, how long does it take for fish to reach market size, are there any government regulations or permits required for fish farming, can fish farming be environmentally sustainable.
A fish farming business plan is a comprehensive document that outlines the key aspects of starting and running a successful fish farming venture. It serves as a roadmap and strategic guide for entrepreneurs, providing a clear understanding of the business goals, strategies, and operations involved in fish farming.
To establish a successful fish farming venture, it is essential to develop a comprehensive business plan. The following components should be considered when creating your best business plan for fish farming:
Before diving into the financial aspects, it is crucial to conduct a thorough market analysis. Understanding the fish farming market helps you identify potential customers, assess the competition, and determine the market demand for your products. Researching the preferences of consumers, their purchasing power, and the prevailing market prices will assist you in making informed decisions.
Starting a fish farming business involves various initial expenses. These may include the cost of land, construction or renovation of ponds or tanks, purchase of fish fingerlings, equipment, and other necessary infrastructure. Additionally, you need to account for administrative costs, licenses, and permits. By accurately estimating these startup costs, you can calculate the required capital investment.
To ensure a successful fish farming business, you need to develop revenue projections. Consider factors such as the species of fish you plan to farm, their growth rate, and the market demand. Estimate the potential sales volume and price per unit to project your income. Additionally, explore additional revenue streams, such as selling fish by-products or offering fish-related services.
Operating a fish farming business involves ongoing expenses that must be accounted for in your financial plan. These expenses may include the cost of fish feed, labor, utilities, transportation, maintenance, and administrative overheads. By identifying and analyzing these operational expenses, you can determine the profitability of your venture.
Creating a comprehensive financial model is crucial for the success of your fish farming business. Use the revenue projections and operational expenses to project your income and expenses over a specific period, usually three to five years. A financial forecast will help you identify potential cash flow issues, plan for growth, and make informed financial decisions.
Once you have determined the financial requirements of your fish farming business, it is essential to explore funding options. While self-funding is an option, you may also consider loans from financial institutions, grants from government agencies, or attracting investors interested in the aquaculture industry. Thoroughly research and compare different funding sources to make the best choice for your business.
As with any business, fish farming comes with its own set of risks and challenges. These can include disease outbreaks, changes in market conditions, natural disasters, or regulatory changes. It is crucial to assess these risks and develop strategies for risk mitigation. This may involve implementing biosecurity measures, diversifying your fish stock, or having contingency plans in place.
To ensure the success of your fish farming business, you need to develop an effective marketing and sales strategy. Identify your target markets and understand their preferences and needs. Implement promotional activities such as advertising, online marketing, and participation in trade shows. Build relationships with retailers, restaurants, and wholesalers to secure sales channels for your fish products.
Regular monitoring and evaluation of your fish farming business’s financial performance are vital for its long-term success. Establish key performance indicators (KPIs) such as revenue, profitability, and customer satisfaction. Regularly review your financial statements, compare them against your projections, and identify areas for improvement. Adjust your strategies based on the insights gained from this analysis.
Compliance with legal and regulatory requirements is critical for any business, including fish farming. Research and understand the permits, licenses, and certifications necessary to operate your fish farm legally. Ensure that you adhere to local, state, and national regulations related to water quality, waste management, and fish health. Non-compliance can result in penalties or the closure of your business.
As your fish farming plan for business grows and matures, you may consider expansion and diversification. Identify opportunities to scale your operations, such as increasing the number of ponds or tanks or introducing new fish species. Explore options for value-added products or fish-related services to expand your revenue streams. Plan for growth while ensuring the financial sustainability of your business.
Choose fish species that are suitable for your local climate and market demand. Consider factors such as growth rate, disease resistance, and market value when selecting the species for your fish farm.
Develop a feeding program that ensures the optimal growth and health of your fish. Determine the appropriate feed types, feeding frequency, and feeding protocols based on the nutritional requirements of the chosen fish species.
Implement measures to prevent and control diseases in your fish farm. Establish biosecurity protocols, maintain proper water quality, and monitor the health of your fish regularly. Seek guidance from aquatic health professionals to ensure the well-being of your fish population.
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To ensure the profitability and success of your fish farming venture, consider the following tips:
Maintain water quality and monitoring systems : Regularly test and monitor water parameters such as temperature, pH, and oxygen levels. Implement filtration systems and proper water circulation to ensure optimal conditions for fish growth.
Implement biosecurity measures : Prevent disease outbreaks by practicing strict biosecurity measures. Limit the introduction of potential pathogens, quarantine new fish arrivals, and maintain proper hygiene and disinfection protocols.
Optimize feeding practices : Develop feeding protocols based on the nutritional needs of your fish species. Use high-quality feed and ensure proper feeding frequency and portion sizes to optimize growth and minimize waste.
Adapt to market demands : Stay updated on market trends and consumer preferences. Consider diversifying your product offerings, exploring niche markets, or producing value-added fish products to cater to specific customer demands.
Yes, fish farming can be profitable if properly planned and executed. Factors such as market demand, efficient operations, and effective marketing strategies contribute to the profitability of a fish farming business.
Tilapia, catfish, and trout are some fish species that are considered suitable for beginners in fish farming. These species are known for their hardiness, fast growth, and market demand.
The time it takes for fish to reach market size depends on the species and environmental conditions. Generally, it can range from several months to a couple of years.
The regulations and permits required for fish farming vary by country and region. It is essential to research and comply with the legal requirements, including permits, licenses, and environmental regulations specific to your area.
Yes, fish farming can be environmentally sustainable. By implementing proper waste management, water-quality monitoring, and responsible farming practices, fish farming can minimize its ecological impact and contribute to the conservation of natural resources.
A fish farming business plan is crucial for setting up and running a successful fish farm. By conducting thorough market research, selecting suitable fish species, establishing feeding and disease management protocols, and implementing effective marketing strategies, you can maximize the profitability of your fish farming venture. Overcoming challenges through water quality management, disease prevention, and adapting to market demands will ensure the long-term success of your fish farming business.
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What is moscow prioritization.
MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements.
The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”
Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.
You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.
Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.
At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.
Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.
With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.
Moscow prioritization categories.
As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.
The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.
If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”
Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.
“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.
Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.
So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.
One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).
Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame.
Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.
Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example:
What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete.
A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.
Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.
Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.
One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.
Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .
To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.
For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.
One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders.
Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives.
One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.
But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.
MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.
Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.
If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.
Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.
You will need a separate ranking methodology. You can choose from many, such as:
For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .
To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context.
At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss.
MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects.
The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.
Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made.
If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.
Related Terms
2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model
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Published Apr.09, 2018
Updated Sep.14, 2024
By: Jakub Babkins
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Are you thinking of how to start paintball business ? You can never go wrong with this venture considering paintball is now a popular sport not only the United States but across the entire globe. In the U.S alone, there are over 5 million active paintball fans who invest heavily in the equipment and attire. In addition, the increasing number of professional tournaments and leagues has increased the demand for modern paintball facilities. There are also numerous exciting activities associated with paintball and opening a paintball business will reward you with good profits so long as you carefully plan your business setup strategy .
2.1 the business.
The paintball business will be known as ZonerB Paintball and will be located off Exit 3 in Brookside, Kansas City. This is an excellent population that serves a large population of residents making it an ideal sport to open the business. ZonerB is a family business that will be owned and managed by Phil Richards who is a Professional Paintball Instructor.
Phil Richards is an accomplished paintball instructor who has been actively working in the industry for over fifteen years. During his career, Phil has managed several popular paintball facilities. He is a familiar and well respected instructor who has been deeply involved in the region’s paintball events. He was a league commissioner in several tournaments around the country.
ZonerB Paintball aims to offer an exciting, relaxing and social atmosphere for clients. In planning how to start a paintball business , ZonerB is keen to provide a well-equipped and friendly facility for its customers.
The business hopes to focus on investing in a modern and impressive paintball facility that will offer diverse fun activities that will keep everyone entertained.
3.1 company owner.
Phil Richards is a well-respected paintball instructor who has worked with several teams to clinch various awards and championships. During his career as an instructor and manager of several paintball facilities, Phil acquired first-hand experience in paintball business, something he hopes to replicate when opening a paintball field .
The paintball culture has increased in the recent times inspiring Phil to go ahead with his plan of setting a nice, modern and well equipped paintball facility that meets the needs of paintball lovers. Despite Brookside having many paintball businesses, the rising popularity of the game has created numerous opportunities for ZonerB to explore.
To make ZonerB a trendsetter paintball facility in Brookside, Kansas City, Phil Richards has hired professionals with vast knowledge in business startups to come up with a financial roadmap to meet business goals. Key financial data is indicated in the table below.
Legal | $3,200 |
Consultants | $2,500 |
Insurance | $15,000 |
Rent | $20,000 |
Research and Development | $15,000 |
Expensed Equipment | $12,000 |
Signs | $4,000 |
TOTAL START-UP EXPENSES | $72,700 |
Start-up Assets | $0 |
Cash Required | $210,000 |
Start-up Inventory | $60,000 |
Other Current Assets | $15,000 |
Long-term Assets | $8,000 |
TOTAL ASSETS | $22,000 |
Total Requirements | $27,000 |
$0 | |
START-UP FUNDING | $180,000 |
Start-up Expenses to Fund | $135,000 |
Start-up Assets to Fund | $325,000 |
TOTAL FUNDING REQUIRED | $0 |
Assets | $35,000 |
Non-cash Assets from Start-up | $13,000 |
Cash Requirements from Start-up | $0 |
Additional Cash Raised | $65,000 |
Cash Balance on Starting Date | $125,000 |
TOTAL ASSETS | $0 |
Liabilities and Capital | $0 |
Liabilities | $0 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
TOTAL LIABILITIES | $0 |
Capital | $0 |
Planned Investment | $0 |
Investor 1 | $42,000 |
Investor 2 | $20,000 |
Other | $0 |
Additional Investment Requirement | $0 |
TOTAL PLANNED INVESTMENT | $140,000 |
Loss at Start-up (Start-up Expenses) | $55,000 |
TOTAL CAPITAL | $63,000 |
TOTAL CAPITAL AND LIABILITIES | $65,000 |
Total Funding | $165,000 |
ZonerB has invested heavily in modern equipment and technologies to grow the paintball culture in Kansas City. In order to start a paintball business that brings good profits, Phil Richards has decided to be innovative and diversify his range of services offered at the paintball facility. Services offered at ZonerB include:
With all these services, ZonerB has found a unique way to cater for needs of different clientele.
For ZonerB to accomplish its business goals, a detailed market analysis was carried out to identify what areas need to be focused on to successfully conquer the marketplace. Good paintball business plans have an elaborate marketing strategy that is designed with in line with the current market trends. The paintball business hopes to use this strategy to outshine its competitors and secure a large customer base.
After studying the paintball culture in Kansas City and doing an extensive market analysis, ZonerB intends to reach out to the following groups of customers. It’s worth noting that potential clients in this case are anyone interested in paintball games.
Paintball is an exciting game that attracts large masses of young people. For this reason, this is a key customer group the business intends to reach out. A large section of the local population consists of teenagers and young children thus presenting an excellent opportunity for ZonerB to market its services. Despite many similar established businesses in the area, Phil Richards knows the appetite for paintball especially among this age group keeps growing. In addition, a large section of under 18 year olds are still in schools which play a huge role in popularizing paintball across the city.
Many residents who fall in this age group belong to the working class and therefore, earn a steady income. Given the large middle class population, these residents can afford to buy paintball ammunition and attire required for an exciting gaming experience. The business hopes to sell various services and packages to this customer segment bearing in mind they have a disposable income that allows them to spend on numerous entertainment activities. After opening a paintball field business , this group of customers is expected to frequent the paintball club to have fun and unwind.
This category caters for senior citizens who have retired from an active career life but are looking for something exciting to keep them busy. With paintball increasingly becoming popular, seniors have also been attracted to the game. They’re an extremely sensitive group and require good customer care and help to feel comfortable within the business premises.
Because of the growing interest in paintball, corporates have joined the bandwagon by regularly organizing staff paintball fun days. In addition, there are numerous paintball tournaments and competitions where various corporate teams drawn from various companies participate. This is a lucrative market segment because a single corporate booking is guaranteed to generate the business good income.
ZonerB paintball field business plan also aims to target to professional paintball teams and league organizers looking for a venue to use for tournaments. Given the number of many venues across Kansas, the business has an uphill task of positioning itself strategically to reach out to this market.
Potential Customers | Growth | CAGR | |||||||
Under 18 | 30% | 35,000 | 38,000 | 41,000 | 44,000 | 47,000 | 10.00% | ||
19-64 years | 15% | 30,000 | 33,000 | 36,000 | 39,000 | 42,000 | 12.00% | ||
Over 65 years | 22% | 20,000 | 23,000 | 26,000 | 29,000 | 32,000 | 14.00% | ||
Corporates | 18% | 15,000 | 18,000 | 21,000 | 24,000 | 27,000 | 16.00% | ||
Professional Paintball Stakeholders | 15% | 10,000 | 13,000 | 16,000 | 19,000 | 22,000 | 10.00% | ||
Total | 100% | 80,000 | 95,000 110,000 | 125,000 | 140,000 | 15.00% |
ZonerB comes into the market when paintball popularity is at its peak. This is a strategic time considering starting a paintball business when there’s so much hype about the game is smart and strategic. Innovativeness is the major driving factor for the business as it seeks to use a unique business model and customer approach to distinguish itself from competitors. It is expected the paintball will be able to recover its capital within the first three years of operation. Annual sales are expected to grow on an average of 15%.
How much does it cost to start a paintball business and how do I recover my startup capital? To accurately determine whether a business will be able recover the initial, product pricing is a key component that needs to be well defined. Just like other paintball business plans , ZonerB understands it has to get the pricing right to be able to survive competition. The plan is to diversify pricing using different packages to ensure all customer groups are adequately catered for. Pricing will be arrived at after considering what other paintball businesses are charging their clients. The idea is to charge slightly less than competitors especially in the first few months to popularize the brand and win customer trust.
The success of a business is not only how to start a paintball business but which strategies are put in place to ensure business goals are realized. Phil Richards has worked closely with experts in business strategy to come up with a sustainable and result-oriented approach of consistently growing customer numbers and boost revenue. The following sales strategy has been adopted to help steer the business to positive growth.
ZonerB Paintball field knows customer care and professionalism are the core values of success when starting a paintball field . The business intends to hire well trained and professional staff with hands-on skills to deal with various customers. In addition, the paintball field’s strategic location and nearness to public transport facilities is expected to bring in more customers.
In order for the paintball business to attract more customers to the facility, the following sales strategy will be rolled out.
ZonerB is committed to fully implement the above defined sales strategies and keep a close eye on its financial books to increase annual sales. The information below summarizes sales forecasts for ZonerB Paintball business.
Unit Sales | Year 3 | ||
Indoor and outdoor paintball courts | 340,000 | 410,000 | 450,000 |
Paintball ammunition and gear | 220,000 | 250,000 | 300,000 |
Go Cart facility | 270,000 | 290,000 | 320,000 |
Restaurant and dining services | 390,000 | 450,000 | 520,000 |
TOTAL UNIT SALES | |||
Unit Prices | Year 1 | Year 2 | Year 3 |
Indoor and outdoor paintball courts | $150.00 | $160.00 | $200.00 |
Paintball ammunition and gear | $80.00 | $100.00 | $120.00 |
Go Cart facility | $150.00 | $180.00 | $210.00 |
Restaurant and dining services | $200.00 | $250.00 | $270.00 |
Sales | |||
Indoor and outdoor paintball courts | $300,000 | $350,000 | $400,000 |
Paintball ammunition and gear | $270,000 | $310,000 | $350,000 |
Go Cart facility | $85,000 | $125,000 | $145,000 |
Restaurant and dining services | $260,000 | $300,000 | $310,000 |
TOTAL SALES | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Indoor and outdoor paintball courts | $2.20 | $3.20 | $4.20 |
Paintball ammunition and gear | $2.00 | $3.00 | $5.00 |
Go Cart facility | $1.60 | $2.60 | $4.00 |
Restaurant and dining services | $6.00 | $5.00 | $4.00 |
Direct Cost of Sales | |||
Indoor and outdoor paintball courts | $200,000 | $220,000 | $140,000 |
Paintball ammunition and gear | $150,000 | $180,000 | $210,000 |
Go Cart facility | $155,000 | $135,000 | $152,000 |
Restaurant and dining services | $160,000 | $175,000 | $195,000 |
Subtotal Direct Cost of Sales | $255,000 | $385,000 | $465,000 |
ZonerB is a large paintball field that requires staff with different expertise to work together and facilitate smooth operations of the business. For Phil Richards and anyone else planning how to start a paintball field , the following staff is key to run the business.
ZonerB Paintball field is owned by Phil Richards, an experienced Paintball Instructor who will be the overall manager of the business. The business will also employ the following professionals to work in various departments.
Successful candidates will undergo extensive training on various areas of focus associated with a paintball field before the business officially opens.
In the first three years of operations, ZonerB Paintball field intends to pay its personnel the following annual average salaries.
1 Assistant manager | $60,000 | $65,000 | $70,000 |
1 Account | $35,000 | $42,000 | $47,000 |
1 League Cordinator | $30,000 | $34,000 | $38,000 |
1 Customer care representative | $27,000 | $33,000 | $36,000 |
2 Marketing executives | $52,000 | $56,000 | $60,000 |
2 cleaners | $40,000 | $45,000 | $47,000 |
1 Concession person | $22,000 | $28,000 | $32,000 |
2 Referees | $52,000 | $55,000 | $58,000 |
Total Salaries | $265,000 | $350,000 | $425,000 |
ZonerB has a comprehensive financial plan that is expected to guide business management. Starting paintball field requires an elaborate financial plan to help the business meet its financial obligations and run its operations. Initial capital will be supplemented by a bank loan to help kickstart operations. The following is a summary of various financial statistics for ZonerB Paintball business. This is key information for anyone planning to open a paintball field business.
ZonerB has computed its financial expectations based on the assumptions below.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 14.00% | 16.00% | 18.00% |
Long-term Interest Rate | 7.00% | 7.00% | 700.00% |
Tax Rate | 12.00% | 14.00% | 16.00% |
Other | 0 | 0 | 0 |
The graph below indicated ZonerB Paintball business Brake-even Analysis.
Monthly Units Break-even | 10000 |
Monthly Revenue Break-even | $160,000 |
Assumptions: | |
Average Per-Unit Revenue | $250.00 |
Average Per-Unit Variable Cost | $0.70 |
Estimated Monthly Fixed Cost | $320,000 |
Below is Profit and Loss information for ZonerB Paintball field determined on a monthly and annual basis.
Sales | $600,000 | $700,000 | $800,000 |
Direct Cost of Sales | $50,000 | $60,000 | $80,000 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Gross Margin | $420,000 | $550,000 | $560,000 |
Gross Margin % | 80.00% | 74.00% | 83.00% |
Expenses | |||
Payroll | $250,000 | $350,000 | $425,000 |
Sales and Marketing and Other Expenses | $8,000 | $5,000 | $9,000 |
Depreciation | $7,000 | $9,000 | $6,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $7,000 | $5,000 | $6,000 |
Insurance | $9,000 | $10,000 | $8,600 |
Rent | $14,000 | $16,000 | $18,000 |
Payroll Taxes | $50,000 | $65,000 | $70,000 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $320,000 | $350,000 | $400,000 |
Profit Before Interest and Taxes | $40,000 | $60,000 | $80,000 |
EBITDA | $30,000 | $50,000 | $80,000 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $24,000 | $26,000 | $30,000 |
Net Profit | $120,000 | $135,000 | $140,000 |
Net Profit/Sales | 40.00% | 55.00% | 60.00% |
Below is a Profit and Loss Analysis for the business.
The diagram below indicates subtotal cash received, subtotal cash spent, subtotal cash spent on operations, subtotal cash from operations and Pro forma cash flow.
Cash Received | |||
Cash from Operations | |||
Cash Sales | $100,000 | $205,000 | $260,000 |
Cash from Receivables | $10,000 | $15,000 | $18,000 |
SUBTOTAL CASH FROM OPERATIONS | |||
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 | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $20,000 | $25,000 | $30,000 |
Bill Payments | $5,000 | $10,000 | $22,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
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 | |||
Net Cash Flow | $27,000 | $35,000 | $58,000 |
Cash Balance | $33,000 | $48,000 | $53,000 |
Below is ZonerB Projected balance sheet indicating assets, liabilities, capital, current liabilities and long-term assets.
Assets | |||
Current Assets | |||
Cash | $300,000 | $350,000 | $380,000 |
Accounts Receivable | $100,000 | $120,000 | $150,000 |
Inventory | $5,000 | $6,000 | $9,000 |
Other Current Assets | $6,000 | $3,000 | $9,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $20,000 | $23,000 | $30,000 |
Accumulated Depreciation | $33,000 | $36,000 | $40,000 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $25,000 | $38,000 | $46,000 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $20,000 | $20,000 | $20,000 |
Retained Earnings | $25,000 | $60,000 | $85,000 |
Earnings | $150,000 | $220,000 | $240,000 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $320,000 | $450,000 | $380,000 |
This is a representation of Business Ratios, Ratio Analysis and business Net Worth for ZonerB Paintball business.
Sales Growth | 20.00% | 23.00% | 30.00% | 10.00% |
Percent of Total Assets | ||||
Accounts Receivable | 10.00% | 9.00% | 8.00% | 11.00% |
Inventory | 8.00% | 5 | 4.00% | 9.00% |
Other Current Assets | 1.00% | 3.40% | 3.00% | 20.00% |
Total Current Assets | 86.00% | 90.00% | 120.00% | 43.00% |
Long-term Assets | -6.00% | -10.00% | -20.00% | 30.20% |
TOTAL ASSETS | ||||
Current Liabilities | 10.00% | 7.00% | 5.00% | 18.00% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 20.00% |
Total Liabilities | 7.00% | 3.00% | 1.50% | 30.00% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 90.00% | 90.00% | 90.00% | 90.00% |
Gross Margin | 70.00% | 63.00% | 60.00% | 0.00% |
Selling, General & Administrative Expenses | 50.00% | 60.00% | 45.00% | 60.00% |
Advertising Expenses | 5.00% | 4.00% | 2.30% | 3.50% |
Profit Before Interest and Taxes | 30.00% | 24.00% | 26.00% | 3.50% |
Main Ratios | ||||
Current | 18 | 13 | 12 | 0.9 |
Quick | 27 | 13 | 25.5 | 1.5 |
Total Debt to Total Assets | 4.05% | 3.00% | 2.65% | 40.00% |
Pre-tax Return on Net Worth | 90.00% | 87.00% | 93.00% | 4.20% |
Pre-tax Return on Assets | 60.00% | 58.00% | 65.00% | 10.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 15.00% | 10.00% | 20.00% | N.A. |
Return on Equity | 60.00% | 50.00% | 48.00% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 5 | 7 | 9 | N.A. |
Collection Days | 78 | 87 | 100 | N.A. |
Inventory Turnover | 18 | 16 | 18 | N.A. |
Accounts Payable Turnover | 12.2 | 16.2 | 17 | N.A. |
Payment Days | 25 | 25 | 25 | N.A. |
Total Asset Turnover | 3.6 | 2.7 | 2.9 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | 0 | -0.09 | -0.01 | N.A. |
Current Liab. to Liab. | 0 | 0 | 0 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $500,000 | $520,000 | $640,000 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 1.45 | 2.48 | 3.32 | N.A. |
Current Debt/Total Assets | 8% | 4% | 3% | N.A. |
Acid Test | 30 | 33 | 35 | N.A. |
Sales/Net Worth | 3.3 | 1.7 | 1.7 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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Russia’s oil and gas industry is still operating effectively in various parts of the world.
Russian energy company RusChemAlliance (RCA) has brought legal proceedings against five European banks that stopped financing the construction of a gas project in Russia.
Russia has been subject to numerous Western sanctions following the country’s invasion of Ukraine in early 2022.
Russia crude oil refinery outlook to 2025, data insights.
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Unicredit spa, deutsche bank ag, commerzbank ag, bayerische landesbank, landesbank baden-wurttemberg.
The EU has issued a ban on the purchase, import and transfer of liquified petroleum gas, crude oil and refined petroleum products from Russia.
Filed with St. Petersburg’s Arbitration Court on 16 September, the lawsuits were taken out against pan-European bank UniCredit , and German lenders Deutsche Bank , Commerzbank , Bayerische Landesbank and Landesbank BadenWurttemberg.
RCA and UniCredit have been locked in multiple legal battles.
A case summary from the UK Supreme Court shows that under contracts between RCA and UniCredit, RCA was obliged to pay a third-party contractor approximately €10bn ($11bn) for the construction of gas processing plants.
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UniCredit issued bonds to RCA with a value of approximately €420m (467m).
Following the withdrawal of the contractor, RCA has been seeking the recovery of €488m ($499m) from UniCredit under the bonds.
RCA’s Russian proceedings were discontinued by the UK Court of Appeal, and the company has since appealed to the Supreme Court, with the verdict to be announced on 18 September.
RCA is also in the process of suing other European banks after German industrial gases company Linde stopped working on a liquefied natural gas (LNG) plant at the Baltic port of Ust-Luga in 2022.
According to reports , RCA stated that EU sanctions only prohibit the supply of equipment for liquefying natural gas, but not equipment for gas processing and the construction of a gas processing plant, which Linde was supplying.
The Arbitration Court of St. Petersburg and the Leningrad Region fully satisfied the claim of RCA against Linde for a total amount of approximately 113bn Russian rubles ($1.2bn). Linde’s assets were frozen in Russia.
Despite the ongoing international sanctions, Russia’s oil and gas industry has continued to do business in various parts of the world. In July 2023, Russian crude oil accounted for 44% of India’s overall imports, surpassing China.
And in September, a company part-owned by sanctioned Russian oligarchs obtained a 14.87% stake in one of the UK’s largest oil producers.
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