Financial Plan Summary
The following proforma contains Marcus's projections for seven years.
| Income Statement: | |||||||
| Notes: | |||||||
| 1Prorated Salary | |||||||
| 2Labor Costs Rise Annually 5% | |||||||
| 3Operating Costs Rise Annually 2.5% | |||||||
| 4Beginning in Year 5 - Revenues Increase on an Annual 7.5% Basis | |||||||
| REVENUES | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 |
| Total Revenue | 14,550 | 35,850 | 52,500 | 73,625 | 79,146.884 | 85,082.89 | 91,464.11 |
| EXPENSES | |||||||
| Fixed Labor Cost | $12,5001 | $25,000 | $26,2502 | $27,563 | $28,941 | $30,388 | $31,907 |
| Variable Labor Cost | $2,8601 | $8,580 | $9,0092 | $9,459 | $9,932 | $10,429 | |
| Operating Expenses | 4,400 | $6,9103 | $7,083 | $7,260 | $7,441 | $7,627 | $7,818 |
| Loan Repayment | $2,043 | $2,043 | $2,043 | $2,043 | $2,043 | ||
| Total Cost of Goods Sold | $18,943 | $36,813 | $43,955 | $45,874 | $47,884 | $47,947 | $50,154 |
| Gross Margin (Profit or Loss) | ($4,393) | ($963) | $8,545 | $27,751 | $31,263 | $37,135 | $41,310 |
| Percent of Revenue (%) | 16.30% | 37.70% | 39.50% | 43.60% | 45.20% | ||
| Income Tax (33%) | $2,820 | $9,158 | $10,317 | $12,255 | $13,632 | ||
| Development Cost Amortization | $1,640 | $1,640 | $1,640 | $1,640 | $1,640 | ||
| (Five Year Straight Line Method) | |||||||
| {After Tax} Net Income | ($2,753) | $677 | $7,365 | $20,233 | $22,586 | $24,881 | $27,678 |
Phase I Funding Amounts Sought
The following schedule highlights the anticipated developmental costs and the first year Marcus Accounting project expenditures. This schedule defines the financial needs to develop a successful business and are the basis for the financial start-up capital amounts listed in the Seven-Year Proforma.
Developmental Expenses
| Classification: | Cost |
| Office Storage System | $200 |
| Advertising & Promotion | $2,500 |
| Supplies, Postage & Printing | $1,500 |
| Computer and Software | $2,500 |
| Association Dues and Training | $1,500 |
| $8,200 | |
| Annual Value Amortized over 5 years | $1,640 |
The development of the business will require the time and talents full-time of Mary Beth Marcus. Her salary, office, and other related expenses during the first year of the project are incorporated into the Seven-Year Proforma.
Phase II growth amounts will be developed and sought at a later date, based upon needs to be determined at that time.
Financial Plan Assumptions
- The following assumptions will be incorporated into the Marcus proforma statements.
- All operating costs are based on Marcus management research of similar operating companies.
- Automated informational systems will reduce Marcus staff requirements.
- Developmental start-up costs are amortized over a five-year period.
- Home office lease costs are deferred until year two combined and lease back to Marcus.
- Overhead and operations costs are calculated on an annual basis.
- Marcus founder salary is based on a fixed salary expense basis.
- All fixed and variable labor costs should rise annually at five percent.
- All revenues, past year 5 are figured to rise annually at seven and a half percent.
- Fixed annual, administrative, and office expenses rise at an annual rate of two and a half percent.
Appendix a -Appendix a - Appendix a - Resume of Ms. Mary Beth Marcus
Olsten, Manpower, Officeteam, Accountemps Employment Agencies
Appendix B - Example Promotional Materials
Appendix C - Example Fee Schedule
