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Basketball Camp, Inc. Strategic Business and Marketing Plan
The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities.
Basketball Camp Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of Basketball Camp, Inc. It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties. This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Basketball Camp, Inc. Upon request, this document is to be immediately returned.
__________________________________ Signature
_______________ Date
_______________________________ Name (typed or printed)
2
Basketball Camp Table of Contents 1.0 Executive Summary.....................................................................................................4 1.1 The Services...............................................................................................................4 1.2 Financing...................................................................................................................4 1.3 Mission Statement.....................................................................................................4 1.4 Management Team.....................................................................................................4 1.5 Sales Forecasts...........................................................................................................5 1.6 Expansion Plan..........................................................................................................5 2.0 Company and Financing Summary...........................................................................6 2.1 ed Name and Corporate Structure................................................................6 2.2 Required Funds..........................................................................................................6 2.3 Investor Equity...........................................................................................................6 2.4 Management Equity...................................................................................................7 2.5 Exit Strategy..............................................................................................................7 3.0 Basketball Camp Services...........................................................................................8 4.0 Strategic and Market Analysis...................................................................................9 4.1 Economic Outlook.....................................................................................................9 4.2 Industry Analysis.......................................................................................................9 4.3 Customer Profile........................................................................................................9 4.4 Competition.............................................................................................................10 5.0 Marketing Plan..........................................................................................................11 5.1 Marketing Objectives...............................................................................................11 5.2 Marketing Strategies................................................................................................11 5.3 Pricing......................................................................................................................11 6.0 Organizational Plan and Personnel Summary........................................................12 6.1 Corporate Organization............................................................................................12 6.2 Organizational Budget.............................................................................................12 6.3 Management Biographies........................................................................................13 7.0 Financial Plan.............................................................................................................14 7.1 Underlying Assumptions.........................................................................................14 7.2 Sensitivity Analysis.................................................................................................14 7.3 Source of Funds.......................................................................................................14 7.4 General Assumptions...............................................................................................14 7.5 Profit and Loss Statements......................................................................................15 7.6 Cash Flow Analysis.................................................................................................16 Three Year Profit and Loss Statement...........................................................................19 Three Year Cash Flow Analysis......................................................................................23
3
Basketball Camp 1.0 Executive Summary The purpose of this business plan is to raise $50,000 for the development of a basketball camp while showcasing the expected financials and operations over the next three years. Basketball Camp, Inc. (“the Company”) is a New York based corporation that will provide ongoing basketball training services to its client base in its targeted market. The Company was founded by John Doe. 1.1 The Services As stated above, the business will be actively involved with providing young people (especially of middle school and high school age) with a broad array of training as it relates to improving their skills in basketball. The Basketball Camp will operate on a year round basis. During summer, the business will offer more intensive daily camp courses that focus on improving an individual’s ability to play basketball. The third section of the business plan will further describe the services offered by the Basketball Camp. 1.2 Financing Mr. Doe is seeking to raise $50,000 from as a bank loan. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
Financing to develop the Company’s office location. Financing for the first six months of operation. Capital to purchase gym and fitness equipment.
Mr. Doe will contribute $10,000 to the venture. 1.3 Mission Statement Basketball Camp, Inc.’s mission is to become the recognized local leader in its targeted market for basketball training services. 1.4 Management Team The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the physical fitness industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
4
Basketball Camp 1.5 Sales Forecasts Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proforma Profit and Loss (Yearly) Year
1
2
3
Sales
$367,878
$441,454
$516,501
Operating Costs
$257,524
$313,637
$338,749
EBITDA
$69,141
$78,360
$119,888
Taxes, Interest, and Depreciation
$34,035
$35,691
$51,265
Net Profit
$35,106
$42,670
$68,622
1.6 Expansion Plan The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals with children within the target market.
2.0 Company and Financing Summary 5
Basketball Camp 2.1 ed Name and Corporate Structure Basketball Camp, Inc. The Company is ed as a corporation in the State of New York. 2.2 Required Funds At this time, the Basketball Camp requires $50,000 of debt funds. Below is a breakdown of how these funds will be used: Projected Startup Costs Initial Lease Payments and Deposits Working Capital
$5,000 $15,000
FF&E
$7,500
Leasehold Improvements
$2,500
Security Deposits
$2,500
Insurance
$2,500
Gym Equipment Marketing Budget Miscellaneous and Unforeseen Costs Total Startup Costs
$17,500 $5,000 $2,500 $60,000
2.3 Investor Equity Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
6
Basketball Camp John Doe owns 100% of Basketball Camp, Inc. 2.5 Exit Strategy If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Basketball Camp, Inc. Based on historical numbers, the business could fetch a sales of up to 4 times earnings.
3.0 Basketball Camp Services
7
Basketball Camp As stated in the executive summary, the business will be actively engaged in providing services that relate to increasing an individual (especially students) ability to play basketball. These camp services will also ensure that high level high school players can continue to refine their skills as they seek athletic scholarships. During summers, the business will operate on a daily basis to provide instruction (especially for high school students) with the ability to effectively increase their abilities on the court. At the onset of operations, Management intends to have three to four instructors that are well versed on basketball coaching available at all times. In this section of the business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.
4.0 Strategic and Market Analysis
8
Basketball Camp 4.1 Economic Outlook This section of the analysis will detail the economic climate, the sports camp industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in a state of moderate growth. Unemployment rates have declined while asset prices have risen substantially. However, an economic recession should have only a modest impact on the Basketball Camp’s ability to generate revenues. 4.2 Industry Analysis Within the United States, there are approximately 2,500 businesses that operate one or more sports camp facilities. Each year, these businesses aggregately generate more than $3 billion of revenues and provide seasonal employment to 40,000 people. Annual payrolls in each of the last five years has exceeded $400 million. The growth rate of this business is expected to remain in lockstep with that of the economy and population. There are approximately 2,500 companies in the United States that specialize in the sports camp (including Basketball camp) operations. 4.3 Customer Profile Basketball Camp, Inc.’s average client will be a middle to upper middle class individual living in the Company’s target market. Common traits among clients will include:
Has a family with two children (one of which will be going to college within the next one to two years and is seeking an athletic scholarship). Annual household income exceeding $50,000 per year Will spend $1,000 to $2,000 per year with the Basketball Camp, Inc.
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competition
9
Basketball Camp This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
10
Basketball Camp Basketball Camp intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of Basketball Camp, Inc. 5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s name and information with online directories. Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper ments, and word of mouth advertising. Establish relationships with schools and basketball coaches.
5.2 Marketing Strategies Mr. Doe intends on using a number of marketing strategies that will allow Basketball Camp, Inc. to easily target the demographics outlined in the previous section of the business plan within the target market. These strategies include traditional print ments and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Basketball Camp, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as basketball camps, now the Internet to conduct their preliminary searches. Mr. Doe will the Basketball Camp with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the services offered by Basketball Camp, Inc, its coaches, preliminary pricing information, and relevant information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the Basketball Camp services that the Company is selling. In this section, you should expand on how you intend to implement your marketing. List publications, local newspapers, radio, and other outlets that you will use to promote your business. Discuss how much money you intend to spending on marketing. 5.3 Pricing In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page. 6.0 Organizational Plan and Personnel Summary
11
Basketball Camp 6.1 Corporate Organization Senior Management
Camp Operations
istrative Staff
ing
Coach Recruitment
Camp Scheduling
Sales - Marketing
Legal Compliance
istrative
Referral Relationship Development
6.2 Organizational Budget Personnel Plan - Yearly Year
1
2
3
Owner
$40,000
$41,200
$42,436
Scheduling Manager
$30,000
$30,900
$31,827
Coaches
$27,500
$56,650
$58,350
$7,500
$7,725
$7,957
Bookkeeper (P/T) istrative Total
$19,000
$19,570
$20,157
$124,000
$156,045
$160,726
Numbers of Personnel Year
1
2
3
Owner
1
1
1
Scheduling Manager
1
1
1
Coaches
1
2
2
Bookkeeper (P/T)
1
1
1
istrative
1
1
1
Totals
5
6
6
6.2 Organizational Budget (Cont.)
12
Basketball Camp
6.3 Management Biographies In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.
7.0 Financial Plan
13
Basketball Camp 7.1 Underlying Assumptions The Company has based its proforma financial statements on the following:
Basketball Camp, Inc. will have an annual revenue growth rate of 16% per year. The Owner will acquire $50,000 of debt funds to develop the business. The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis The Company’s revenues are moderately sensitive to changes in the general economy. To many people, basketball coaching and training is an absolute necessity, and only a more severe economic recession would result in a lower revenue base for the business. Additionally, Mr. Doe will strive to keep the costs of his Company’s services low, and as such, the business will be able to thrive despite the current deleterious economic conditions. 7.3 Source of Funds Financing Equity Contributions Management Investment
$10,000.00
Total Equity Financing
$10,000.00
Banks and Lenders Banks and Lenders
$50,000.00
Total Debt Financing
$50,000.00
Total Financing
$60,000.00
7.4 General Assumptions General Assumptions Year
1
2
3
Short Term Interest Rate
9.5%
9.5%
9.5%
Long Term Interest Rate
10.0%
10.0%
10.0%
Federal Tax Rate
33.0%
33.0%
33.0%
5.0%
5.0%
5.0%
15.0%
15.0%
15.0%
State Tax Rate Personnel Taxes
7.5 Profit and Loss Statements
14
Basketball Camp Proforma Profit and Loss (Yearly) Year Sales
1
2
3
$367,878
$441,454
$516,501
Cost of Goods Sold
$41,213
$49,456
$57,864
Gross Margin
88.80%
88.80%
88.80%
$326,665
$391,998
$458,637
$124,000
$156,045
$160,726
$10,800
$11,232
$11,681
$1,839
$2,207
$2,583
Operating Income Expenses Payroll General and istrative Marketing Expenses Contracted Tutor Costs
$84,612
$101,534
$118,795
Insurance Costs
$3,987
$4,186
$4,396
Travel and Vehicle Costs
$7,596
$8,356
$9,191
Rent and Utilities
$4,250
$4,463
$4,686
Miscellaneous Costs
$1,839
$2,207
$2,583
Payroll Taxes
$18,600
$23,407
$24,109
$257,524
$313,637
$338,749
EBITDA
$69,141
$78,360
$119,888
Federal Income Tax
$22,816
$24,517
$38,331
State Income Tax
$3,457
$3,715
$5,808
Interest Expense
$4,369
$4,066
$3,734
Depreciation Expenses
$3,393
$3,393
$3,393
$35,106
$42,670
$68,622
9.54%
9.67%
13.29%
Total Operating Costs
Net Profit Profit Margin
7.6 Cash Flow Analysis Proforma Cash Flow Analysis - Yearly
15
Basketball Camp Year Cash From Operations
1
2
$38,498
3
$46,063
$72,015
Cash From Receivables
$0
$0
$0
Operating Cash Inflow
$38,498
$46,063
$72,015
Equity Investment
$10,000
$0
$0
Increased Borrowings
$50,000
$0
$0
$0
$0
$0
A/P Increases
$37,902
$43,587
$50,125
Total Other Cash Inflows
$97,902
$43,587
$50,125
$136,400
$89,650
$122,141
$3,232
$3,535
$3,866
$24,897
$29,876
$35,852
$0
$0
$0
$47,500
$11,516
$18,004
Other Cash Inflows
Sales of Business Assets
Total Cash Inflow Cash Outflows Repayment of Principal A/P Decreases A/R Increases Asset Purchases Dividends
$26,949
$32,244
$50,411
$102,578
$77,171
$108,133
Net Cash Flow
$33,823
$12,479
$14,008
Cash Balance
$33,823
$46,302
$60,310
Total Cash Outflows
7.7 Balance Sheet Proforma Balance Sheet - Yearly Year
1
2
3
16
Basketball Camp Assets Cash
$33,823
$46,302
$60,310
Amortized Development/Expansion Costs
$15,000
$23,637
$37,140
Gym Equipment
$17,500
$17,500
$17,500
FF&E
$15,000
$17,879
$22,380
Accumulated Depreciation
($3,393)
($6,786)
($10,179)
Total Assets
$77,930
$98,532
$127,151
s Payable
$13,005
$26,716
$40,990
Long Term Liabilities
$46,768
$43,233
$39,699
$0
$0
$0
Total Liabilities
$59,773
$69,949
$80,688
Net Worth
$18,157
$28,583
$46,463
Total Liabilities and Equity
$77,930
$98,532
$127,151
Liabilities and Equity
Other Liabilities
7.8 Breakeven Analysis Monthly Break Even Analysis Year Monthly Revenue
1 $24,168
2 $29,434
3 $31,791
17
Basketball Camp Yearly Revenue
$290,014
$353,207
$381,487
7.9 Business Ratios Business Ratios - Yearly Year
1
2
3
Sales Sales Growth
0.0%
20.0%
17.0%
Gross Margin
88.8%
88.8%
88.8%
Financials Profit Margin
9.54%
9.67%
13.29%
Assets to Liabilities
1.30
1.41
1.58
Equity to Liabilities
0.30
0.41
0.58
Assets to Equity
4.29
3.45
2.74
Acid Test
0.57
0.66
0.75
Cash to Assets
0.43
0.47
0.47
Liquidity
Three Year Profit and Loss Statement Profit and Loss Statement (First Year) Months Sales Cost of Goods Sold
1
2
3
4
5
6
7
$29,925
$30,058
$30,191
$30,324
$30,457
$30,590
$30,723
$3,353
$3,367
$3,382
$3,397
$3,412
$3,427
$3,442
18
Basketball Camp Gross Margin Operating Income
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
$26,573
$26,691
$26,809
$26,927
$27,045
$27,163
$27,281
Expenses Payroll
$10,333
$10,333
$10,333
$10,333
$10,333
$10,333
$10,333
General and istrative
$900
$900
$900
$900
$900
$900
$900
Marketing Expenses
$153
$153
$153
$153
$153
$153
$153
$7,051
$7,051
$7,051
$7,051
$7,051
$7,051
$7,051
Insurance Costs
$332
$332
$332
$332
$332
$332
$332
Travel and Vehicle Costs
$633
$633
$633
$633
$633
$633
$633
Rent and Utilities
$354
$354
$354
$354
$354
$354
$354
Miscellaneous Costs
$153
$153
$153
$153
$153
$153
$153
$1,550
$1,550
$1,550
$1,550
$1,550
$1,550
$1,550
$21,460
$21,460
$21,460
$21,460
$21,460
$21,460
$21,460
EBITDA
$5,112
$5,230
$5,348
$5,466
$5,585
$5,703
$5,821
Federal Income Tax
Contracted Tutor Costs
Payroll Taxes Total Operating Costs
$1,856
$1,864
$1,873
$1,881
$1,889
$1,897
$1,905
State Income Tax
$281
$282
$284
$285
$286
$287
$289
Interest Expense
$375
$373
$371
$369
$367
$365
$363
Depreciation Expense
$283
$283
$283
$283
$283
$283
$283
$2,317
$2,428
$2,538
$2,649
$2,759
$2,870
$2,981
Net Profit
Profit and Loss Statement (First Year Cont.) Month
8
9
Sales
$30,856
$30,989
$31,122
$31,255
$31,388
$367,878
Cost of Goods Sold
$3,457
$3,472
$3,487
$3,502
$3,516
$41,213
Gross Margin
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
$27,399
$27,517
$27,635
$27,754
$27,872
$326,665
Operating Income
10
11
12
1
19
Basketball Camp Expenses Payroll
$10,333
$10,333
$10,333
$10,333
$10,333
$124,000
General and istrative
$900
$900
$900
$900
$900
$10,800
Marketing Expenses
$153
$153
$153
$153
$153
$1,839
$7,051
$7,051
$7,051
$7,051
$7,051
$84,612
Insurance Costs
$332
$332
$332
$332
$332
$3,987
Travel and Vehicle Costs
$633
$633
$633
$633
$633
$7,596
Rent and Utilities
$354
$354
$354
$354
$354
$4,250
Miscellaneous Costs
$153
$153
$153
$153
$153
$1,839
$1,550
$1,550
$1,550
$1,550
$1,550
$18,600
$21,460
$21,460
$21,460
$21,460
$21,460
$257,524
EBITDA
$5,939
$6,057
$6,175
$6,293
$6,411
$69,141
Federal Income Tax
Contracted Tutor Costs
Payroll Taxes Total Operating Costs
$1,914
$1,922
$1,930
$1,938
$1,947
$22,816
State Income Tax
$290
$291
$292
$294
$295
$3,457
Interest Expense
$361
$359
$357
$355
$353
$4,369
Depreciation Expense
$283
$283
$283
$283
$283
$3,393
$3,091
$3,202
$3,313
$3,423
$3,534
$35,106
Net Profit
Profit and Loss Statement (Second Year) 2 Quarter Sales
Q1
Q2
Q3
Q4
2
$88,291
$110,363
$119,192
$123,607
$441,454
Cost of Goods Sold
$9,891
$12,364
$13,353
$13,848
$49,456
Gross Margin
88.8%
88.8%
88.8%
88.8%
88.8%
$78,400
$97,999
$105,839
$109,759
$391,998
Operating Income
20
Basketball Camp Expenses Payroll
$31,209
$39,011
$42,132
$43,693
$156,045
$2,246
$2,808
$3,033
$3,145
$11,232
$441
$552
$596
$618
$2,207
$20,307
$25,384
$27,414
$28,430
$101,534
$837
$1,047
$1,130
$1,172
$4,186
General and istrative Marketing Expenses Contracted Tutor Costs Insurance Costs Travel and Vehicle Costs
$1,671
$2,089
$2,256
$2,340
$8,356
Rent and Utilities
$893
$1,116
$1,205
$1,250
$4,463
Miscellaneous Costs
$441
$552
$596
$618
$2,207
$4,681
$5,852
$6,320
$6,554
$23,407
Total Operating Costs
$62,727
$78,409
$84,682
$87,818
$313,637
EBITDA
$15,672
$19,590
$21,157
$21,941
$78,360
Payroll Taxes
Federal Income Tax
$4,903
$6,129
$6,620
$6,865
$24,517
State Income Tax
$743
$929
$1,003
$1,040
$3,715
Interest Expense
$1,046
$1,027
$1,007
$986
$4,066
$848
$848
$848
$848
$3,393
$8,132
$10,657
$11,680
$12,201
$42,670
Q3
Q4
Depreciation Expense Net Profit
Profit and Loss Statement (Third Year) 3 Quarter Sales Cost of Goods Sold Gross Margin Operating Income
Q1
Q2
3
$103,300
$129,125
$139,455
$144,620
$516,501
$11,573
$14,466
$15,623
$16,202
$57,864
88.8%
88.8%
88.8%
88.8%
88.8%
$91,727
$114,659
$123,832
$128,418
$458,637
21
Basketball Camp Expenses Payroll General and istrative Marketing Expenses Contracted Tutor Costs Insurance Costs
$32,145
$40,182
$43,396
$45,003
$160,726
$2,336
$2,920
$3,154
$3,271
$11,681
$517
$646
$697
$723
$2,583
$23,759
$29,699
$32,075
$33,263
$118,795
$879
$1,099
$1,187
$1,231
$4,396
$1,838
$2,298
$2,482
$2,574
$9,191
Rent and Utilities
$937
$1,171
$1,265
$1,312
$4,686
Miscellaneous Costs
$517
$646
$697
$723
$2,583
$4,822
$6,027
$6,509
$6,751
$24,109
Total Operating Costs
$67,750
$84,687
$91,462
$94,850
$338,749
EBITDA
Travel and Vehicle Costs
Payroll Taxes
$23,978
$29,972
$32,370
$33,569
$119,888
Federal Income Tax
$7,666
$9,583
$10,349
$10,733
$38,331
State Income Tax
$1,162
$1,452
$1,568
$1,626
$5,808
Interest Expense
$966
$945
$923
$901
$3,734
Depreciation Expense
$848
$848
$848
$848
$3,393
$13,336
$17,145
$18,681
$19,461
$68,622
Net Profit
Three Year Cash Flow Analysis Cash Flow Analysis (First Year) Month Cash From Operations
1 $2,600
2
3
4
5
6
7
$2,711
$2,821
$2,932
$3,042
$3,153
$3,263
8 $3,374
Cash From Receivables
$0
$0
$0
$0
$0
$0
$0
$0
Operating Cash Inflow
$2,600
$2,711
$2,821
$2,932
$3,042
$3,153
$3,263
$3,374
$10,000
$0
$0
$0
$0
$0
$0
$0
Other Cash Inflows Equity Investment
22
Basketball Camp Increased Borrowings
$50,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Business Assets A/P Increases
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
Total Other Cash Inflows
$63,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
Total Cash Inflow
$65,758
$5,869
$5,980
$6,090
$6,201
$6,311
$6,422
$6,533
Cash Outflows Repayment of Principal A/P Decreases
$258
$260
$262
$264
$266
$268
$270
$272
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
A/R Increases
$0
$0
$0
$0
$0
$0
$0
$0
$47,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Outflows
$49,833
$2,335
$2,337
$2,339
$2,341
$2,343
$2,345
$2,347
Net Cash Flow
$15,925
$3,534
$3,643
$3,751
$3,860
$3,968
$4,077
$4,186
Cash Balance
$15,925
$19,459
$23,102
$26,853
$30,713
$34,681
$38,758
$42,944
Asset Purchases Dividends
Cash Flow Analysis (First Year Cont.) Month Cash From Operations
9 $3,485
10
11
12
$3,595
$3,706
$3,817
1 $38,498
Cash From Receivables
$0
$0
$0
$0
$0
Operating Cash Inflow
$3,485
$3,595
$3,706
$3,817
$38,498
Equity Investment
$0
$0
$0
$0
$10,000
Increased Borrowings
$0
$0
$0
$0
$50,000
Sales of Business Assets
$0
$0
$0
$0
$0
$3,159
$3,159
$3,159
$3,159
$37,902
Other Cash Inflows
A/P Increases
23
Basketball Camp Total Other Cash Inflows
$3,159
$3,159
$3,159
$3,159
$97,902
Total Cash Inflow
$6,643
$6,754
$6,865
$6,975
$136,400
Cash Outflows Repayment of Principal
$274
$276
$278
$281
$3,232
$2,075
$2,075
$2,075
$2,075
$24,897
A/R Increases
$0
$0
$0
$0
$0
Asset Purchases
$0
$0
$0
$0
$47,500
Dividends
$0
$0
$0
$26,949
$26,949
Total Cash Outflows
$2,349
$2,351
$2,353
$29,304
$102,578
Net Cash Flow
$4,294
$4,403
$4,511
-$22,329
$33,823
Cash Balance
$47,238
$51,640
$56,152
$33,823
$33,823
A/P Decreases
Cash Flow Analysis (Second Year) 2 Quarter Cash From Operations
Q1
Q2
Q3
Q4
2
$9,213
$11,516
$12,437
$12,898
Cash From Receivables
$0
$0
$0
$0
$46,063 $0
Operating Cash Inflow
$9,213
$11,516
$12,437
$12,898
$46,063
Equity Investment
$0
$0
$0
$0
$0
Increased Borrowings
$0
$0
$0
$0
$0
Sales of Business Assets
$0
$0
$0
$0
$0
$8,717
$10,897
$11,769
$12,204
$43,587
Other Cash Inflows
A/P Increases
24
Basketball Camp Total Other Cash Inflows Total Cash Inflow
$8,717
$10,897
$11,769
$12,204
$43,587
$17,930
$22,413
$24,206
$25,102
$89,650
Cash Outflows Repayment of Principal A/P Decreases
$854
$874
$893
$914
$3,535
$5,975
$7,469
$8,067
$8,365
$29,876
A/R Increases
$0
$0
$0
$0
$0
Asset Purchases
$2,303
$2,879
$3,109
$3,224
$11,516
Dividends
$6,449
$8,061
$8,706
$9,028
$32,244
$15,581
$19,283
$20,775
$21,532
$77,171
Net Cash Flow
$2,349
$3,130
$3,430
$3,570
$12,479
Cash Balance
$36,171
$39,301
$42,732
$46,302
$46,302
Total Cash Outflows
Cash Flow Analysis (Third Year) 3 Quarter Cash From Operations
Q1
Q2
$14,403
Q3
$18,004
Q4
$19,444
3
$20,164
$72,015
Cash From Receivables
$0
$0
$0
$0
$0
Operating Cash Inflow
$14,403
$18,004
$19,444
$20,164
$72,015
Equity Investment
$0
$0
$0
$0
$0
Increased Borrowings
$0
$0
$0
$0
$0
Sales of Business Assets
$0
$0
$0
$0
$0
A/P Increases
$10,025
$12,531
$13,534
$14,035
$50,125
Total Other Cash Inflows
$10,025
$12,531
$13,534
$14,035
$50,125
Other Cash Inflows
25
Basketball Camp Total Cash Inflow
$24,428
$30,535
$32,978
$34,199
$122,141
$934
$956
$977
$999
$3,866
$7,170
$8,963
$9,680
$10,038
$35,852
$0
$0
$0
$0
$0
$3,601
$4,501
$4,861
$5,041
$18,004
Dividends
$10,082
$12,603
$13,611
$14,115
$50,411
Total Cash Outflows
$21,788
$27,022
$29,129
$30,194
$108,133
Cash Outflows Repayment of Principal A/P Decreases A/R Increases Asset Purchases
Net Cash Flow
$2,641
$3,513
$3,849
$4,006
$14,008
Cash Balance
$48,943
$52,456
$56,305
$60,310
$60,310
26
The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities.
Basketball Camp Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of Basketball Camp, Inc. It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties. This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Basketball Camp, Inc. Upon request, this document is to be immediately returned.
__________________________________ Signature
_______________ Date
_______________________________ Name (typed or printed)
2
Basketball Camp Table of Contents 1.0 Executive Summary.....................................................................................................4 1.1 The Services...............................................................................................................4 1.2 Financing...................................................................................................................4 1.3 Mission Statement.....................................................................................................4 1.4 Management Team.....................................................................................................4 1.5 Sales Forecasts...........................................................................................................5 1.6 Expansion Plan..........................................................................................................5 2.0 Company and Financing Summary...........................................................................6 2.1 ed Name and Corporate Structure................................................................6 2.2 Required Funds..........................................................................................................6 2.3 Investor Equity...........................................................................................................6 2.4 Management Equity...................................................................................................7 2.5 Exit Strategy..............................................................................................................7 3.0 Basketball Camp Services...........................................................................................8 4.0 Strategic and Market Analysis...................................................................................9 4.1 Economic Outlook.....................................................................................................9 4.2 Industry Analysis.......................................................................................................9 4.3 Customer Profile........................................................................................................9 4.4 Competition.............................................................................................................10 5.0 Marketing Plan..........................................................................................................11 5.1 Marketing Objectives...............................................................................................11 5.2 Marketing Strategies................................................................................................11 5.3 Pricing......................................................................................................................11 6.0 Organizational Plan and Personnel Summary........................................................12 6.1 Corporate Organization............................................................................................12 6.2 Organizational Budget.............................................................................................12 6.3 Management Biographies........................................................................................13 7.0 Financial Plan.............................................................................................................14 7.1 Underlying Assumptions.........................................................................................14 7.2 Sensitivity Analysis.................................................................................................14 7.3 Source of Funds.......................................................................................................14 7.4 General Assumptions...............................................................................................14 7.5 Profit and Loss Statements......................................................................................15 7.6 Cash Flow Analysis.................................................................................................16 Three Year Profit and Loss Statement...........................................................................19 Three Year Cash Flow Analysis......................................................................................23
3
Basketball Camp 1.0 Executive Summary The purpose of this business plan is to raise $50,000 for the development of a basketball camp while showcasing the expected financials and operations over the next three years. Basketball Camp, Inc. (“the Company”) is a New York based corporation that will provide ongoing basketball training services to its client base in its targeted market. The Company was founded by John Doe. 1.1 The Services As stated above, the business will be actively involved with providing young people (especially of middle school and high school age) with a broad array of training as it relates to improving their skills in basketball. The Basketball Camp will operate on a year round basis. During summer, the business will offer more intensive daily camp courses that focus on improving an individual’s ability to play basketball. The third section of the business plan will further describe the services offered by the Basketball Camp. 1.2 Financing Mr. Doe is seeking to raise $50,000 from as a bank loan. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
Financing to develop the Company’s office location. Financing for the first six months of operation. Capital to purchase gym and fitness equipment.
Mr. Doe will contribute $10,000 to the venture. 1.3 Mission Statement Basketball Camp, Inc.’s mission is to become the recognized local leader in its targeted market for basketball training services. 1.4 Management Team The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the physical fitness industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
4
Basketball Camp 1.5 Sales Forecasts Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proforma Profit and Loss (Yearly) Year
1
2
3
Sales
$367,878
$441,454
$516,501
Operating Costs
$257,524
$313,637
$338,749
EBITDA
$69,141
$78,360
$119,888
Taxes, Interest, and Depreciation
$34,035
$35,691
$51,265
Net Profit
$35,106
$42,670
$68,622
1.6 Expansion Plan The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals with children within the target market.
2.0 Company and Financing Summary 5
Basketball Camp 2.1 ed Name and Corporate Structure Basketball Camp, Inc. The Company is ed as a corporation in the State of New York. 2.2 Required Funds At this time, the Basketball Camp requires $50,000 of debt funds. Below is a breakdown of how these funds will be used: Projected Startup Costs Initial Lease Payments and Deposits Working Capital
$5,000 $15,000
FF&E
$7,500
Leasehold Improvements
$2,500
Security Deposits
$2,500
Insurance
$2,500
Gym Equipment Marketing Budget Miscellaneous and Unforeseen Costs Total Startup Costs
$17,500 $5,000 $2,500 $60,000
2.3 Investor Equity Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
6
Basketball Camp John Doe owns 100% of Basketball Camp, Inc. 2.5 Exit Strategy If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Basketball Camp, Inc. Based on historical numbers, the business could fetch a sales of up to 4 times earnings.
3.0 Basketball Camp Services
7
Basketball Camp As stated in the executive summary, the business will be actively engaged in providing services that relate to increasing an individual (especially students) ability to play basketball. These camp services will also ensure that high level high school players can continue to refine their skills as they seek athletic scholarships. During summers, the business will operate on a daily basis to provide instruction (especially for high school students) with the ability to effectively increase their abilities on the court. At the onset of operations, Management intends to have three to four instructors that are well versed on basketball coaching available at all times. In this section of the business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.
4.0 Strategic and Market Analysis
8
Basketball Camp 4.1 Economic Outlook This section of the analysis will detail the economic climate, the sports camp industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in a state of moderate growth. Unemployment rates have declined while asset prices have risen substantially. However, an economic recession should have only a modest impact on the Basketball Camp’s ability to generate revenues. 4.2 Industry Analysis Within the United States, there are approximately 2,500 businesses that operate one or more sports camp facilities. Each year, these businesses aggregately generate more than $3 billion of revenues and provide seasonal employment to 40,000 people. Annual payrolls in each of the last five years has exceeded $400 million. The growth rate of this business is expected to remain in lockstep with that of the economy and population. There are approximately 2,500 companies in the United States that specialize in the sports camp (including Basketball camp) operations. 4.3 Customer Profile Basketball Camp, Inc.’s average client will be a middle to upper middle class individual living in the Company’s target market. Common traits among clients will include:
Has a family with two children (one of which will be going to college within the next one to two years and is seeking an athletic scholarship). Annual household income exceeding $50,000 per year Will spend $1,000 to $2,000 per year with the Basketball Camp, Inc.
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competition
9
Basketball Camp This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
10
Basketball Camp Basketball Camp intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of Basketball Camp, Inc. 5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s name and information with online directories. Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper ments, and word of mouth advertising. Establish relationships with schools and basketball coaches.
5.2 Marketing Strategies Mr. Doe intends on using a number of marketing strategies that will allow Basketball Camp, Inc. to easily target the demographics outlined in the previous section of the business plan within the target market. These strategies include traditional print ments and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Basketball Camp, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as basketball camps, now the Internet to conduct their preliminary searches. Mr. Doe will the Basketball Camp with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the services offered by Basketball Camp, Inc, its coaches, preliminary pricing information, and relevant information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the Basketball Camp services that the Company is selling. In this section, you should expand on how you intend to implement your marketing. List publications, local newspapers, radio, and other outlets that you will use to promote your business. Discuss how much money you intend to spending on marketing. 5.3 Pricing In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page. 6.0 Organizational Plan and Personnel Summary
11
Basketball Camp 6.1 Corporate Organization Senior Management
Camp Operations
istrative Staff
ing
Coach Recruitment
Camp Scheduling
Sales - Marketing
Legal Compliance
istrative
Referral Relationship Development
6.2 Organizational Budget Personnel Plan - Yearly Year
1
2
3
Owner
$40,000
$41,200
$42,436
Scheduling Manager
$30,000
$30,900
$31,827
Coaches
$27,500
$56,650
$58,350
$7,500
$7,725
$7,957
Bookkeeper (P/T) istrative Total
$19,000
$19,570
$20,157
$124,000
$156,045
$160,726
Numbers of Personnel Year
1
2
3
Owner
1
1
1
Scheduling Manager
1
1
1
Coaches
1
2
2
Bookkeeper (P/T)
1
1
1
istrative
1
1
1
Totals
5
6
6
6.2 Organizational Budget (Cont.)
12
Basketball Camp
6.3 Management Biographies In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.
7.0 Financial Plan
13
Basketball Camp 7.1 Underlying Assumptions The Company has based its proforma financial statements on the following:
Basketball Camp, Inc. will have an annual revenue growth rate of 16% per year. The Owner will acquire $50,000 of debt funds to develop the business. The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis The Company’s revenues are moderately sensitive to changes in the general economy. To many people, basketball coaching and training is an absolute necessity, and only a more severe economic recession would result in a lower revenue base for the business. Additionally, Mr. Doe will strive to keep the costs of his Company’s services low, and as such, the business will be able to thrive despite the current deleterious economic conditions. 7.3 Source of Funds Financing Equity Contributions Management Investment
$10,000.00
Total Equity Financing
$10,000.00
Banks and Lenders Banks and Lenders
$50,000.00
Total Debt Financing
$50,000.00
Total Financing
$60,000.00
7.4 General Assumptions General Assumptions Year
1
2
3
Short Term Interest Rate
9.5%
9.5%
9.5%
Long Term Interest Rate
10.0%
10.0%
10.0%
Federal Tax Rate
33.0%
33.0%
33.0%
5.0%
5.0%
5.0%
15.0%
15.0%
15.0%
State Tax Rate Personnel Taxes
7.5 Profit and Loss Statements
14
Basketball Camp Proforma Profit and Loss (Yearly) Year Sales
1
2
3
$367,878
$441,454
$516,501
Cost of Goods Sold
$41,213
$49,456
$57,864
Gross Margin
88.80%
88.80%
88.80%
$326,665
$391,998
$458,637
$124,000
$156,045
$160,726
$10,800
$11,232
$11,681
$1,839
$2,207
$2,583
Operating Income Expenses Payroll General and istrative Marketing Expenses Contracted Tutor Costs
$84,612
$101,534
$118,795
Insurance Costs
$3,987
$4,186
$4,396
Travel and Vehicle Costs
$7,596
$8,356
$9,191
Rent and Utilities
$4,250
$4,463
$4,686
Miscellaneous Costs
$1,839
$2,207
$2,583
Payroll Taxes
$18,600
$23,407
$24,109
$257,524
$313,637
$338,749
EBITDA
$69,141
$78,360
$119,888
Federal Income Tax
$22,816
$24,517
$38,331
State Income Tax
$3,457
$3,715
$5,808
Interest Expense
$4,369
$4,066
$3,734
Depreciation Expenses
$3,393
$3,393
$3,393
$35,106
$42,670
$68,622
9.54%
9.67%
13.29%
Total Operating Costs
Net Profit Profit Margin
7.6 Cash Flow Analysis Proforma Cash Flow Analysis - Yearly
15
Basketball Camp Year Cash From Operations
1
2
$38,498
3
$46,063
$72,015
Cash From Receivables
$0
$0
$0
Operating Cash Inflow
$38,498
$46,063
$72,015
Equity Investment
$10,000
$0
$0
Increased Borrowings
$50,000
$0
$0
$0
$0
$0
A/P Increases
$37,902
$43,587
$50,125
Total Other Cash Inflows
$97,902
$43,587
$50,125
$136,400
$89,650
$122,141
$3,232
$3,535
$3,866
$24,897
$29,876
$35,852
$0
$0
$0
$47,500
$11,516
$18,004
Other Cash Inflows
Sales of Business Assets
Total Cash Inflow Cash Outflows Repayment of Principal A/P Decreases A/R Increases Asset Purchases Dividends
$26,949
$32,244
$50,411
$102,578
$77,171
$108,133
Net Cash Flow
$33,823
$12,479
$14,008
Cash Balance
$33,823
$46,302
$60,310
Total Cash Outflows
7.7 Balance Sheet Proforma Balance Sheet - Yearly Year
1
2
3
16
Basketball Camp Assets Cash
$33,823
$46,302
$60,310
Amortized Development/Expansion Costs
$15,000
$23,637
$37,140
Gym Equipment
$17,500
$17,500
$17,500
FF&E
$15,000
$17,879
$22,380
Accumulated Depreciation
($3,393)
($6,786)
($10,179)
Total Assets
$77,930
$98,532
$127,151
s Payable
$13,005
$26,716
$40,990
Long Term Liabilities
$46,768
$43,233
$39,699
$0
$0
$0
Total Liabilities
$59,773
$69,949
$80,688
Net Worth
$18,157
$28,583
$46,463
Total Liabilities and Equity
$77,930
$98,532
$127,151
Liabilities and Equity
Other Liabilities
7.8 Breakeven Analysis Monthly Break Even Analysis Year Monthly Revenue
1 $24,168
2 $29,434
3 $31,791
17
Basketball Camp Yearly Revenue
$290,014
$353,207
$381,487
7.9 Business Ratios Business Ratios - Yearly Year
1
2
3
Sales Sales Growth
0.0%
20.0%
17.0%
Gross Margin
88.8%
88.8%
88.8%
Financials Profit Margin
9.54%
9.67%
13.29%
Assets to Liabilities
1.30
1.41
1.58
Equity to Liabilities
0.30
0.41
0.58
Assets to Equity
4.29
3.45
2.74
Acid Test
0.57
0.66
0.75
Cash to Assets
0.43
0.47
0.47
Liquidity
Three Year Profit and Loss Statement Profit and Loss Statement (First Year) Months Sales Cost of Goods Sold
1
2
3
4
5
6
7
$29,925
$30,058
$30,191
$30,324
$30,457
$30,590
$30,723
$3,353
$3,367
$3,382
$3,397
$3,412
$3,427
$3,442
18
Basketball Camp Gross Margin Operating Income
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
$26,573
$26,691
$26,809
$26,927
$27,045
$27,163
$27,281
Expenses Payroll
$10,333
$10,333
$10,333
$10,333
$10,333
$10,333
$10,333
General and istrative
$900
$900
$900
$900
$900
$900
$900
Marketing Expenses
$153
$153
$153
$153
$153
$153
$153
$7,051
$7,051
$7,051
$7,051
$7,051
$7,051
$7,051
Insurance Costs
$332
$332
$332
$332
$332
$332
$332
Travel and Vehicle Costs
$633
$633
$633
$633
$633
$633
$633
Rent and Utilities
$354
$354
$354
$354
$354
$354
$354
Miscellaneous Costs
$153
$153
$153
$153
$153
$153
$153
$1,550
$1,550
$1,550
$1,550
$1,550
$1,550
$1,550
$21,460
$21,460
$21,460
$21,460
$21,460
$21,460
$21,460
EBITDA
$5,112
$5,230
$5,348
$5,466
$5,585
$5,703
$5,821
Federal Income Tax
Contracted Tutor Costs
Payroll Taxes Total Operating Costs
$1,856
$1,864
$1,873
$1,881
$1,889
$1,897
$1,905
State Income Tax
$281
$282
$284
$285
$286
$287
$289
Interest Expense
$375
$373
$371
$369
$367
$365
$363
Depreciation Expense
$283
$283
$283
$283
$283
$283
$283
$2,317
$2,428
$2,538
$2,649
$2,759
$2,870
$2,981
Net Profit
Profit and Loss Statement (First Year Cont.) Month
8
9
Sales
$30,856
$30,989
$31,122
$31,255
$31,388
$367,878
Cost of Goods Sold
$3,457
$3,472
$3,487
$3,502
$3,516
$41,213
Gross Margin
88.8%
88.8%
88.8%
88.8%
88.8%
88.8%
$27,399
$27,517
$27,635
$27,754
$27,872
$326,665
Operating Income
10
11
12
1
19
Basketball Camp Expenses Payroll
$10,333
$10,333
$10,333
$10,333
$10,333
$124,000
General and istrative
$900
$900
$900
$900
$900
$10,800
Marketing Expenses
$153
$153
$153
$153
$153
$1,839
$7,051
$7,051
$7,051
$7,051
$7,051
$84,612
Insurance Costs
$332
$332
$332
$332
$332
$3,987
Travel and Vehicle Costs
$633
$633
$633
$633
$633
$7,596
Rent and Utilities
$354
$354
$354
$354
$354
$4,250
Miscellaneous Costs
$153
$153
$153
$153
$153
$1,839
$1,550
$1,550
$1,550
$1,550
$1,550
$18,600
$21,460
$21,460
$21,460
$21,460
$21,460
$257,524
EBITDA
$5,939
$6,057
$6,175
$6,293
$6,411
$69,141
Federal Income Tax
Contracted Tutor Costs
Payroll Taxes Total Operating Costs
$1,914
$1,922
$1,930
$1,938
$1,947
$22,816
State Income Tax
$290
$291
$292
$294
$295
$3,457
Interest Expense
$361
$359
$357
$355
$353
$4,369
Depreciation Expense
$283
$283
$283
$283
$283
$3,393
$3,091
$3,202
$3,313
$3,423
$3,534
$35,106
Net Profit
Profit and Loss Statement (Second Year) 2 Quarter Sales
Q1
Q2
Q3
Q4
2
$88,291
$110,363
$119,192
$123,607
$441,454
Cost of Goods Sold
$9,891
$12,364
$13,353
$13,848
$49,456
Gross Margin
88.8%
88.8%
88.8%
88.8%
88.8%
$78,400
$97,999
$105,839
$109,759
$391,998
Operating Income
20
Basketball Camp Expenses Payroll
$31,209
$39,011
$42,132
$43,693
$156,045
$2,246
$2,808
$3,033
$3,145
$11,232
$441
$552
$596
$618
$2,207
$20,307
$25,384
$27,414
$28,430
$101,534
$837
$1,047
$1,130
$1,172
$4,186
General and istrative Marketing Expenses Contracted Tutor Costs Insurance Costs Travel and Vehicle Costs
$1,671
$2,089
$2,256
$2,340
$8,356
Rent and Utilities
$893
$1,116
$1,205
$1,250
$4,463
Miscellaneous Costs
$441
$552
$596
$618
$2,207
$4,681
$5,852
$6,320
$6,554
$23,407
Total Operating Costs
$62,727
$78,409
$84,682
$87,818
$313,637
EBITDA
$15,672
$19,590
$21,157
$21,941
$78,360
Payroll Taxes
Federal Income Tax
$4,903
$6,129
$6,620
$6,865
$24,517
State Income Tax
$743
$929
$1,003
$1,040
$3,715
Interest Expense
$1,046
$1,027
$1,007
$986
$4,066
$848
$848
$848
$848
$3,393
$8,132
$10,657
$11,680
$12,201
$42,670
Q3
Q4
Depreciation Expense Net Profit
Profit and Loss Statement (Third Year) 3 Quarter Sales Cost of Goods Sold Gross Margin Operating Income
Q1
Q2
3
$103,300
$129,125
$139,455
$144,620
$516,501
$11,573
$14,466
$15,623
$16,202
$57,864
88.8%
88.8%
88.8%
88.8%
88.8%
$91,727
$114,659
$123,832
$128,418
$458,637
21
Basketball Camp Expenses Payroll General and istrative Marketing Expenses Contracted Tutor Costs Insurance Costs
$32,145
$40,182
$43,396
$45,003
$160,726
$2,336
$2,920
$3,154
$3,271
$11,681
$517
$646
$697
$723
$2,583
$23,759
$29,699
$32,075
$33,263
$118,795
$879
$1,099
$1,187
$1,231
$4,396
$1,838
$2,298
$2,482
$2,574
$9,191
Rent and Utilities
$937
$1,171
$1,265
$1,312
$4,686
Miscellaneous Costs
$517
$646
$697
$723
$2,583
$4,822
$6,027
$6,509
$6,751
$24,109
Total Operating Costs
$67,750
$84,687
$91,462
$94,850
$338,749
EBITDA
Travel and Vehicle Costs
Payroll Taxes
$23,978
$29,972
$32,370
$33,569
$119,888
Federal Income Tax
$7,666
$9,583
$10,349
$10,733
$38,331
State Income Tax
$1,162
$1,452
$1,568
$1,626
$5,808
Interest Expense
$966
$945
$923
$901
$3,734
Depreciation Expense
$848
$848
$848
$848
$3,393
$13,336
$17,145
$18,681
$19,461
$68,622
Net Profit
Three Year Cash Flow Analysis Cash Flow Analysis (First Year) Month Cash From Operations
1 $2,600
2
3
4
5
6
7
$2,711
$2,821
$2,932
$3,042
$3,153
$3,263
8 $3,374
Cash From Receivables
$0
$0
$0
$0
$0
$0
$0
$0
Operating Cash Inflow
$2,600
$2,711
$2,821
$2,932
$3,042
$3,153
$3,263
$3,374
$10,000
$0
$0
$0
$0
$0
$0
$0
Other Cash Inflows Equity Investment
22
Basketball Camp Increased Borrowings
$50,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Business Assets A/P Increases
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
Total Other Cash Inflows
$63,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
$3,159
Total Cash Inflow
$65,758
$5,869
$5,980
$6,090
$6,201
$6,311
$6,422
$6,533
Cash Outflows Repayment of Principal A/P Decreases
$258
$260
$262
$264
$266
$268
$270
$272
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
$2,075
A/R Increases
$0
$0
$0
$0
$0
$0
$0
$0
$47,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Outflows
$49,833
$2,335
$2,337
$2,339
$2,341
$2,343
$2,345
$2,347
Net Cash Flow
$15,925
$3,534
$3,643
$3,751
$3,860
$3,968
$4,077
$4,186
Cash Balance
$15,925
$19,459
$23,102
$26,853
$30,713
$34,681
$38,758
$42,944
Asset Purchases Dividends
Cash Flow Analysis (First Year Cont.) Month Cash From Operations
9 $3,485
10
11
12
$3,595
$3,706
$3,817
1 $38,498
Cash From Receivables
$0
$0
$0
$0
$0
Operating Cash Inflow
$3,485
$3,595
$3,706
$3,817
$38,498
Equity Investment
$0
$0
$0
$0
$10,000
Increased Borrowings
$0
$0
$0
$0
$50,000
Sales of Business Assets
$0
$0
$0
$0
$0
$3,159
$3,159
$3,159
$3,159
$37,902
Other Cash Inflows
A/P Increases
23
Basketball Camp Total Other Cash Inflows
$3,159
$3,159
$3,159
$3,159
$97,902
Total Cash Inflow
$6,643
$6,754
$6,865
$6,975
$136,400
Cash Outflows Repayment of Principal
$274
$276
$278
$281
$3,232
$2,075
$2,075
$2,075
$2,075
$24,897
A/R Increases
$0
$0
$0
$0
$0
Asset Purchases
$0
$0
$0
$0
$47,500
Dividends
$0
$0
$0
$26,949
$26,949
Total Cash Outflows
$2,349
$2,351
$2,353
$29,304
$102,578
Net Cash Flow
$4,294
$4,403
$4,511
-$22,329
$33,823
Cash Balance
$47,238
$51,640
$56,152
$33,823
$33,823
A/P Decreases
Cash Flow Analysis (Second Year) 2 Quarter Cash From Operations
Q1
Q2
Q3
Q4
2
$9,213
$11,516
$12,437
$12,898
Cash From Receivables
$0
$0
$0
$0
$46,063 $0
Operating Cash Inflow
$9,213
$11,516
$12,437
$12,898
$46,063
Equity Investment
$0
$0
$0
$0
$0
Increased Borrowings
$0
$0
$0
$0
$0
Sales of Business Assets
$0
$0
$0
$0
$0
$8,717
$10,897
$11,769
$12,204
$43,587
Other Cash Inflows
A/P Increases
24
Basketball Camp Total Other Cash Inflows Total Cash Inflow
$8,717
$10,897
$11,769
$12,204
$43,587
$17,930
$22,413
$24,206
$25,102
$89,650
Cash Outflows Repayment of Principal A/P Decreases
$854
$874
$893
$914
$3,535
$5,975
$7,469
$8,067
$8,365
$29,876
A/R Increases
$0
$0
$0
$0
$0
Asset Purchases
$2,303
$2,879
$3,109
$3,224
$11,516
Dividends
$6,449
$8,061
$8,706
$9,028
$32,244
$15,581
$19,283
$20,775
$21,532
$77,171
Net Cash Flow
$2,349
$3,130
$3,430
$3,570
$12,479
Cash Balance
$36,171
$39,301
$42,732
$46,302
$46,302
Total Cash Outflows
Cash Flow Analysis (Third Year) 3 Quarter Cash From Operations
Q1
Q2
$14,403
Q3
$18,004
Q4
$19,444
3
$20,164
$72,015
Cash From Receivables
$0
$0
$0
$0
$0
Operating Cash Inflow
$14,403
$18,004
$19,444
$20,164
$72,015
Equity Investment
$0
$0
$0
$0
$0
Increased Borrowings
$0
$0
$0
$0
$0
Sales of Business Assets
$0
$0
$0
$0
$0
A/P Increases
$10,025
$12,531
$13,534
$14,035
$50,125
Total Other Cash Inflows
$10,025
$12,531
$13,534
$14,035
$50,125
Other Cash Inflows
25
Basketball Camp Total Cash Inflow
$24,428
$30,535
$32,978
$34,199
$122,141
$934
$956
$977
$999
$3,866
$7,170
$8,963
$9,680
$10,038
$35,852
$0
$0
$0
$0
$0
$3,601
$4,501
$4,861
$5,041
$18,004
Dividends
$10,082
$12,603
$13,611
$14,115
$50,411
Total Cash Outflows
$21,788
$27,022
$29,129
$30,194
$108,133
Cash Outflows Repayment of Principal A/P Decreases A/R Increases Asset Purchases
Net Cash Flow
$2,641
$3,513
$3,849
$4,006
$14,008
Cash Balance
$48,943
$52,456
$56,305
$60,310
$60,310
26
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