Financial plan for business proposal

FINANCIAL PLAN

Major Assumptions

Revenue Projections

All services will be rendered on cash basis . The following table details the annual income the company expects to attain

Year 1 Year 2 Year 3 Year 4 Year 5

Target of sites 21 ,000 .00 30 ,000 .00 40 ,000 .00 45 ,000 .00 45 ,000 .00

Rate per site 20 .00 25 .00 30 .00 35 .00 40 .00

\ 0 .00 " 1 ,575 ,000 .00 f2 f3 \ 0 .00 " 1 ,800 ,000 .00 Increase base year 64 .29 26 .81 37 .14

40 .00 Initial Investment / Capitalization

The Board of Directors , composed of seven (7 ) members who will also serve as the company 's top executives , will contribute 50 ,000 each as initial investment

Operating Expenses

Employee salaries and outsourcing of other functions to third party are the company 's expected major expenses . Office rental is also considered as one of the major costs

Financial Statements

Comparative Income Statement

The company 's projected statements of profits and loss for the next five (5 ) years are detailed below

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Revenues 420 ,000 .00 690 ,000 .00 875 ,000 .00 1 ,200 ,000 .00 1 ,680 ,000 .00

Salaries 328 ,200 .00 361 ,020 .00 397 ,122 .00 436 ,834 .20 480 ,517 .62

Payroll taxes 32 ,820 .00 36 ,102 .00 39 ,712 .20 43 ,683 .42 48 ,051 .76

Office Rent 42 ,000 .00 46 ,200 .00 50 ,820 .00 55 ,902 .00 61 ,492 .20

Depreciation 11 ,666 .67 11 ,666 .67 11 ,666 .67 11 ,666 .67 11 ,666 .67

Licenses Fees 12 ,000 .00 12 ,000 .00 12 ,000 .00 12 ,000 .00 12 ,000 .00

Advertising 12 ,000 .00 13 ,800 .00 15 ,870 .00 19 ,044 .00 22 ,852 .80

Miscellaneous 6 ,000 .00 6 ,900 .00 7 ,935 .00 9 ,522 .00 11 ,426 .40

Utilities 12 ,000 .00 13 ,200 .00 14 ,520 .00 15 ,972 .00 17 ,569 .20

Insurance 1 ,500 .00 1 ,725 .00 1 ,983 .75 2 ,380 .50 2 ,856 .60

Outside Services 60 ,000 .00 69 ,000 .00 79 ,350 .00 91 ,252 .50 104 ,940 .38 Net Income (Loss (98 ,186 .67 ) 118 ,386 .33 244 ,020 .38 501 ,742 .71 906 ,626 .38 Employee Salaries and Related Costs . Aside from the monthly salaries the company is required by law to provide for worker 's compensation insurance . This is estimated to be 10 of the monthly salary . A 10 increase in the basic salary is also projected . Below table details the work force requirements and distribution per employee

Management Team 7 .00 7 ,000 .00

Project Managers 5 .00 5 ,000 .00

Web Analysts 5 .00 3 ,300 .00

Systems Analysts 5 .00 3 ,300 .00

IT Officers 10 .00 2 ,750 .00

Account Executives 3 .00 4 ,000 .00

Support Staff 7 .00 2 ,000 .00

Outside Services . The company will pay 5 ,000 .00...