financial_plan_for_trifecta_solutions

Financial Plan for Trifecta Solutions

Chart: Highlights

Sales

Gross Margin

Net Profit

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Highlights

Table: Startup

Startup

Requirements

Startup ExpensesBusiness licenses and permits $300 Business announcement or brochures $500 Supplies and stationery $250 Equipment (unless rented, then add rental charge)

$3,000

Rental deposit on office (first and last months) $500 Utility and phone deposits $250 Insurance $500 Legal and accounting $1,500 Professional or business membership expenses $1,000 Answering service deposit (first and last months) $150 Miscellaneous $1,000 Total Startup Expenses $8,950 Total Requirements $8,950


Chart: Startup

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Expenses Assets Investment Loans

Startup

Table: Sales Forecast

Sales ForecastFY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Unit SalesSupply Chain Management

3 6 9 12 18

Project Management 2 5 8 11 15 Supplier Development 2 5 8 11 15 Total Unit Sales 7 16 25 34 48

Unit Prices FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Supply Chain Management

$369,742.00

$369,742.00

$369,742.00

$369,742.00

$369,742.00

Project Management $234,392.00

$234,392.00

$234,392.00

$234,392.00

$234,392.00

Supplier Development $256,888.00

$256,888.00

$256,888.00

$256,888.00

$256,888.00

SalesSupply Chain Management

$1,109,226 $2,218,452 $3,327,678 $4,436,904 $6,655,356

Project Management $468,784 $1,171,960 $1,875,136 $2,578,312 $3,515,880 Supplier Development $513,776 $1,284,440 $2,055,104 $2,825,768 $3,853,320 Total Sales $2,091,786 $4,674,852 $7,257,918 $9,840,984 $14,024,55

6

Direct Unit Costs FY 2017 FY 2018 FY 2019 FY 2020 FY 2021


Supply Chain Management

$73,948.40 $73,948.40 $73,948.40 $73,948.40 $73,948.40

Project Management $46,878.40 $46,878.40 $46,878.40 $46,878.40 $46,878.40 Supplier Development $51,377.60 $51,377.60 $51,377.60 $51,377.60 $51,377.60

Direct Cost of SalesSupply Chain Management

$221,845 $443,690 $665,536 $887,381 $1,331,071

Project Management $93,757 $234,392 $375,027 $515,662 $703,176 Supplier Development $102,755 $256,888 $411,021 $565,154 $770,664 Subtotal Direct Cost of Sales

$418,357 $934,970 $1,451,584 $1,968,197 $2,804,911

Chart: Sales by Year

Supply Chain Management

Project Management

Supplier Developement

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 2017FY 2018

FY 2019FY 2020

FY 2021

Sales by Year

Table: Personnel

Personnel PlanFY 2017 FY 2018 FY 2019 FY 2020 FY 2021

CEO $150,000 $165,000 $181,500 $199,650 $219,615 REBECCA $84,000 $92,400 $101,640 $111,804 $122,984 OMER $94,800 $104,280 $114,708 $126,179 $138,797 OTHERS $0 $46,000 $50,000 $60,000 $70,000

Total Payroll $328,800 $407,680 $447,848 $497,633 $551,396


Table: Startup Funding

Startup FundingStartup Expenses to Fund $8,950 Startup Assets to Fund $0 Total Funding Required $8,950

Assets Non-cash Assets from Startup $0 Cash Requirements from Startup $0 Additional Cash Raised $11,050 Cash Balance on Starting Date $11,050 Total Assets $11,050

Liabilities and Capital

LiabilitiesCurrent Borrowing $0 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $0

Capital

Planned InvestmentOwner $0 Investor $20,000 Additional Investment Requirement $0 Total Planned Investment $20,000

Loss at Startup (Startup Expenses) ($8,950)Total Capital $11,050

Total Capital and Liabilities $11,050

Total Funding $20,000


Chart: Benchmarks

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

SalesGross Margin%

Operating ExpensesInventory Turnover

Benchmarks

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 0 Monthly Revenue Break-even $50,988

Assumptions:Average Per-Unit Revenue $298,826.57 Average Per-Unit Variable Cost $59,765.31 Estimated Monthly Fixed Cost $40,790


Chart: Break-even Analysis

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

$2,400,000

0 1 2 3 4 5 6 7 8 9 10 11

Break-even Analysis

Table: Profit and Loss

Pro Forma Profit and LossFY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Sales $2,091,786 $4,674,852 $7,257,918 $9,840,984 $14,024,556

Direct Cost of Sales $418,357 $934,970 $1,451,584 $1,968,197 $2,804,911 Other Costs of Sales $0 $0 $0 $0 $0 Total Cost of Sales $418,357 $934,970 $1,451,584 $1,968,197 $2,804,911

Gross Margin $1,673,429 $3,739,882 $5,806,334 $7,872,787 $11,219,645

Gross Margin % 80.00% 80.00% 80.00% 80.00% 80.00%

ExpensesPayroll $328,800 $407,680 $447,848 $497,633 $551,396 Marketing/Promotion $0 $0 $0 $0 $0 Depreciation $0 $0 $0 $0 $0 Office rent (if outside home)

$0 $0 $0 $0 $0

Printing and supplies (not paid for by clients)

$600 $660 $726 $799 $878

Equipment (monthly payment and/or what you need to set aside for future cash purchases)

$300 $330 $363 $399 $439

Preparation of tax return and other accounting expenses

$240 $264 $290 $319 $351


Legal services (projected and prorated)

$600 $660 $726 $799 $878

Typing and secretarial services

$360 $396 $436 $479 $527

Fax line $240 $264 $290 $319 $351 Cell phone $2,700 $2,970 $3,267 $3,594 $3,953 Telephone $600 $660 $726 $799 $878 Internet connection $780 $858 $944 $1,038 $1,142 Utilities (if outside home) $0 $0 $0 $0 $0 Insurance costs (prorated over 12 months)

$1,440 $1,584 $1,742 $1,917 $2,108

Retirement contribution if applicable (estimated costs prorated)

$0 $0 $0 $0 $0

Savings (for yourself and your business)

$2,400 $2,640 $2,904 $3,194 $3,514

Loan payment $0 $0 $0 $0 $0 Taxes (including social security or pension plan prorated over 12 months)

$1,200 $1,320 $1,452 $1,597 $1,757

License renewal (prorated)

$300 $330 $363 $399 $439

Advertising $600 $660 $726 $799 $878 Answering service $240 $264 $290 $319 $351 Subscriptions $240 $264 $290 $319 $351 Books and reference materials

$240 $264 $290 $319 $351

Marketing $1,200 $1,320 $1,452 $1,597 $1,757 Entertainment and promotion

$3,000 $3,300 $3,630 $3,993 $4,392

Automobile $2,400 $2,640 $2,904 $3,194 $3,514 Travel (in town or out) $4,200 $4,620 $5,082 $5,590 $6,149 Conventions, professional meetings, trade shows

$2,400 $2,640 $2,904 $3,194 $3,514

Professional development $2,400 $2,640 $2,904 $3,194 $3,514 Salary (what you need to meet personal expenses)

$120,000 $132,000 $145,200 $159,720 $175,692

Miscellaneous $12,000 $13,200 $14,520 $15,972 $17,569

Total Operating Expenses $489,480 $584,428 $642,269 $711,495 $786,643

Profit Before Interest and Taxes

$1,183,949 $3,155,454 $5,164,065 $7,161,292 $10,433,002

EBITDA $1,183,949 $3,155,454 $5,164,065 $7,161,292 $10,433,002

Interest Expense $0 $0 $0 $0 $0 Taxes Incurred $355,185 $946,636 $1,549,220 $2,148,388 $3,129,901

Net Profit $828,764 $2,208,818 $3,614,846 $5,012,905 $7,303,101 Net Profit/Sales 39.62% 47.25% 49.81% 50.94% 52.07%


Chart: Profit Yearly

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Profit Yearly

Chart: Gross Margin Yearly

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Gross Margin Yearly


Table: Cash Flow

Pro Forma Cash FlowFY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Cash Received

Cash from OperationsCash Sales $2,091,786 $4,674,852 $7,257,918 $9,840,984 $14,024,55

6 Subtotal Cash from Operations

$2,091,786 $4,674,852 $7,257,918 $9,840,984 $14,024,556

Additional Cash ReceivedSales Tax, VAT, HST/GST Received

$0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 New Other Liabilities (interest-free)

$0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 Sales of Other Current Assets

$0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 Subtotal Cash Received $2,091,786 $4,674,852 $7,257,918 $9,840,984 $14,024,55

6

Expenditures FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Expenditures from OperationsCash Spending $328,800 $407,680 $447,848 $497,633 $551,396 Bill Payments $1,031,363 $2,307,021 $3,178,917 $4,341,389 $6,350,201 Subtotal Spent on Operations

$1,360,163 $2,714,701 $3,626,765 $4,839,022 $6,901,597

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out

$0 $0 $0 $0 $0

Principal Repayment of Current Borrowing

$0 $0 $0 $0 $0

Other Liabilities Principal Repayment

$0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment

$0 $0 $0 $0 $0

Purchase Other Current Assets

$0 $0 $0 $0 $0

Purchase Long-term Assets

$0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 Subtotal Cash Spent $1,360,163 $2,714,701 $3,626,765 $4,839,022 $6,901,597

Net Cash Flow $731,623 $1,960,151 $3,631,153 $5,001,962 $7,122,959 Cash Balance $742,673 $2,702,824 $6,333,977 $11,335,93 $18,458,89


9 8

Table: Balance Sheet

Pro Forma Balance SheetFY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Assets

Current AssetsCash $742,673 $2,702,824 $6,333,977 $11,335,93

9 $18,458,89

8 Inventory $98,256 $552,307 $595,687 $705,387 $1,056,579 Other Current Assets $0 $0 $0 $0 $0 Total Current Assets $840,929 $3,255,131 $6,929,664 $12,041,32

5 $19,515,47

6

Long-term AssetsLong-term Assets $0 $0 $0 $0 $0 Accumulated Depreciation

$0 $0 $0 $0 $0

Total Long-term Assets $0 $0 $0 $0 $0 Total Assets $840,929 $3,255,131 $6,929,664 $12,041,32

5 $19,515,47

6

Liabilities and Capital FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Current LiabilitiesAccounts Payable $1,115 $206,499 $266,187 $364,943 $535,993 Current Borrowing $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 Subtotal Current Liabilities

$1,115 $206,499 $266,187 $364,943 $535,993

Long-term Liabilities $0 $0 $0 $0 $0 Total Liabilities $1,115 $206,499 $266,187 $364,943 $535,993

Paid-in Capital $20,000 $20,000 $20,000 $20,000 $20,000 Retained Earnings ($8,950) $819,814 $3,028,632 $6,643,477 $11,656,38

2 Earnings $828,764 $2,208,818 $3,614,846 $5,012,905 $7,303,101 Total Capital $839,814 $3,048,632 $6,663,477 $11,676,38

2 $18,979,48

3 Total Liabilities and Capital

$840,929 $3,255,131 $6,929,664 $12,041,325

$19,515,476

Net Worth $839,814 $3,048,632 $6,663,477 $11,676,382

$18,979,483


Table: Ratios

Ratio AnalysisFY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Industry

ProfileSales Growth n.a. 123.49% 55.25% 35.59% 42.51% 1.55%

Percent of Total AssetsInventory 11.68% 16.97% 8.60% 5.86% 5.41% 17.35% Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 40.03% Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 76.45% Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 23.55% Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.13% 6.34% 3.84% 3.03% 2.75% 44.58% Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 43.76% Total Liabilities 0.13% 6.34% 3.84% 3.03% 2.75% 88.34% Net Worth 99.87% 93.66% 96.16% 96.97% 97.25% 11.66%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Gross Margin 80.00% 80.00% 80.00% 80.00% 80.00% 35.24% Selling, General & Administrative Expenses

40.38% 32.75% 30.19% 29.06% 27.93% 14.88%

Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 1.65% Profit Before Interest and Taxes

56.60% 67.50% 71.15% 72.77% 74.39% 2.26%

Main RatiosCurrent 754.49 15.76 26.03 33.00 36.41 1.43 Quick 666.33 13.09 23.80 31.06 34.44 1.04 Total Debt to Total Assets

0.13% 6.34% 3.84% 3.03% 2.75% 88.34%

Pre-tax Return on Net Worth

140.98% 103.50% 77.50% 61.33% 54.97% 113.05%

Pre-tax Return on Assets

140.79% 96.94% 74.52% 59.47% 53.46% 13.18%

Additional Ratios FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Net Profit Margin 39.62% 47.25% 49.81% 50.94% 52.07% n.aReturn on Equity 98.68% 72.45% 54.25% 42.93% 38.48% n.a

Activity RatiosInventory Turnover 3.78 2.87 2.53 3.03 3.18 n.aAccounts Payable Turnover

926.35 12.17 12.17 12.17 12.17 n.a

Payment Days 27 15 27 26 25 n.aTotal Asset Turnover 2.49 1.44 1.05 0.82 0.72 n.a

Debt Ratios


Debt to Net Worth 0.00 0.07 0.04 0.03 0.03 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity RatiosNet Working Capital $839,81

4 $3,048,63

2 $6,663,47

7 $11,676,3

82 $18,979,4

83 n.a

Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional RatiosAssets to Sales 0.40 0.70 0.95 1.22 1.39 n.aCurrent Debt/Total Assets

0% 6% 4% 3% 3% n.a

Acid Test 666.33 13.09 23.80 31.06 34.44 n.aSales/Net Worth 2.49 1.53 1.09 0.84 0.74 n.aDividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

Table: Investment Analysis

Investment Analysis

Start FY 2017 FY 2018 FY 2019 FY 2020 FY 2021Initial InvestmentInvestment $20,000 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 Ending Valuation $0 $0 $0 $0 $0 $25,560,5

00 Combination as Income Stream

($20,000) $0 $0 $0 $0 $25,560,500

Percent Equity Acquired

35%

Net Present Value (NPV)

$14,410,054

Internal Rate of Return (IRR)

318%

AssumptionsDiscount Rate 10.00% Valuation Earnings Multiple

10 10 10 10 10

Valuation Sales Multiple

2 2 2 2 2

Investment (calculated)

$20,000 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 Calculated Earnings-based Valuation

$8,290,000

$22,090,000

$36,150,000

$50,130,000

$73,030,000

Calculated Sales-based Valuation

$4,180,000

$9,350,000

$14,520,000

$19,680,000

$28,050,000

Calculated Average

$6,235,000

$15,720,000

$25,335,000

$34,905,000

$50,540,000


Valuation

financial_plan_for_trifecta_solutions

Documents