Graffiti Removal Service: Graffiti, USA (Forecasting Revenue)
Forecasting Revenue
Graffiti, USA's revenue will be based on sales of contract services, on-call services, and peripheral services such as coatings, consultations, and product sales.
Graffiti Removal Pricing
Wand service costs $75.00 for the first 10 square feet (minimum), then $1.50 each additional foot.
The Maximum Strip costs $ 250.00 for the first 25 square feet (minimum), then $1.50 for each additional foot.
Sample graffiti removal bid:
Actual graffiti covered: 40 square feet of a 4000 square foot masonry wall.
Option 1. Wand Removal =$75.00
+ 15×$1.50 =$22.50
Option 2. Soda coating
4000×$.40 =$1,600.00
Option 3. Service option: 1 scheduled patrol per week plus any additional call outs for graffiti
removal at no additional charge at a rate of $ 150.00 per month.
Option 4. Individual call outs for graffiti removal at a rate of $75.00 (minimum) per call out. Includes
25' section, $1.50 each additional foot.
Pro Forma Cash Flow
| First Year | |||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Semi-Total | |
| Sales | 2,200 | 4,500 | 8,500 | 14,000 | 17,000 | 19,000 | 65,200 |
| Cash Sales | 500 | 700 | 2,100 | 2,500 | 2,300 | 3,000 | 11,100 |
| Less Rec. | (1,800) | (3,800) | (6,300) | 11,250 | (15,000) | (16,000) | (31,650) |
| Plus Collections | 0 | 1,800 | 3,800 | 6,300 | 11,500 | 15,000 | 38,400 |
| Less Bad Debts | 0 | 0 | 0 | (300) | (200) | 0 | (500) |
| Cash From Sales | 500 | 2,500 | 5,900 | 8,500 | 13,600 | 18,000 | 49,000 |
| Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | Year Total | |
| Sales | 21,000 | 22,000 | 20,000 | 18,000 | 17,000 | 19,000 | 182,200 |
| Cash Sales | 4,000 | 3,000 | 2,000 | 2,000 | 1,500 | 1,800 | 25,400 |
| Less Rec. | (17,000) | (19,000) | (18,000) | (16,000) | (15,500) | (17,200) | (134,350) |
| Plus Collections | 16,000 | 17,000 | 19,000 | 18,000 | 15,800 | 15,300 | 139,500 |
| Less Bad Debts | (300) | (200) | (300) | (500) | (200) | (200) | (2,200) |
| Cash From Sales | 19,700 | 19,800 | 20,700 | 19,500 | 17,100 | 16,900 | 162,700 |
| Second Year | |||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Semi-Total | |
| Sales | 17,000 | 17,000 | 18,000 | 20,000 | 22,000 | 23,000 | 117,000 |
| Cash Sales | 3,000 | 2,500 | 3,500 | 3,000 | 3,000 | 3,000 | 18,000 |
| Less Receivables | (15,000) | (14,500) | (14,500) | (17,000) | (19,000) | (20,000) | (100,000) |
| Plus Collections | 15,000 | 15,000 | 14,500 | 14,500 | 17,000 | 19,000 | 95,000 |
| Less Bad Debts | (300) | (300) | (200) | (300) | (500) | (700) | (2,300) |
| Cash From Sales | 17,700 | 17,200 | 17,800 | 17,200 | 19,500 | 21,300 | 110,700 |
| Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | Year Total | |
| Sales | 22,000 | 19,000 | 19,000 | 20,000 | 22,500 | 23,000 | 242,500 |
| Cash Sales | 2,000 | 2,000 | 2,000 | 2,000 | 2,500 | 2,000 | 30,500 |
| Less Rec. | (20,000) | (17,000) | (17,000) | (18,000) | (20,000) | (21,000) | (213,000) |
| Plus Collections | 20,000 | 20,000 | 17,000 | 17,000 | 18,000 | 20,000 | 207,000 |
| Less Bad Debts | (300) | (300) | (500) | (200) | (300) | (500) | (4,400) |
| Cash From Sales | 21,700 | 21,700 | 18,500 | 18,800 | 20,200 | 21,500 | 233,100 |
Pro Forma Expenses
Materials include the Hanly Blast Media, the Hanly Hydroflex Media, superficial coatings, and Terminator removal assist treatment, as well as freight costs.
Equipment includes rental of a 250 cfm or greater air compressor and a Hanly Maximum Strip soda blaster.
Equipment maintenance covers the preventive maintenance of the equipment and the van.
Van lease covers the monthly payment of a leased or purchased 1-ton new or used utility van.
Labor is the hourly wage(s) of a technician and helper and, when necessary, an office person.
Vehicle and washer gas are the monthly cost of fuels.
Phone includes the cost of the office phone and a field cellular phone service.
Mailbox is the monthly cost of a PO Box and business license posting fee at a private mailbox service.
Advertising covers a 1" local Yellow Pages ad with three other single listings.
Loan covers repayment of the line of credit.
License/Bond/Insurance covers business licenses, a bid or performance bond when necessary, and general liability/auto/life insurance premiums.
Office supplies combine the costs of business stationery, cards, fax paper, supplies, and processing fees.
Credit purchases are accounts payable on credit for materials and equipment rentals.
Credit payments will be made within 30-day terms covering the preceding calendar month's credit purchases.
| Sales and Expenses | |||||||||||||
| Forecast Expenses | |||||||||||||
| Month: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Total |
| Materials | 440 | 900 | 1,700 | 2,800 | 3,400 | 3,800 | 4,200 | 4,400 | 4,000 | 3,600 | 3,400 | 3,800 | 36,440 |
| Equipment | 300 | 500 | 500 | 500 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 9,800 |
| Equip. Maint. | 20 | 50 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 1,070 |
| Van Lease | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 4,800 |
| Labor | 0 | 500 | 1,000 | 2,000 | 2,200 | 2,500 | 2,700 | 2,700 | 2,700 | 2,500 | 2,500 | 2,500 | 23,800 |
| Veh gas | 150 | 150 | 300 | 300 | 350 | 350 | 350 | 350 | 250 | 250 | 250 | 250 | 3,300 |
| Washer gas | 75 | 100 | 75 | 75 | 75 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 1,100 |
| Phone | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 3,000 |
| Mailbox | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 360 |
| Advertising | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 207 | 2,484 |
| Loan | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 12,000 |
| Lic/Bond/Ins | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 3,600 |
| Office supplies | 50 | 150 | 200 | 200 | 200 | 250 | 250 | 250 | 250 | 200 | 250 | 250 | 2,500 |
| Total | 3,222 | 4,537 | 6,062 | 8,162 | 9,512 | 10,287 | 10,887 | 11,487 | 11,187 | 10,337 | 10,187 | 10,587 | 106,454 |
| Less credit prch | (225) | (250) | (375) | (375) | (425) | (450) | (450) | (450) | (350) | (350) | (350) | (350) | (4,400) |
| Plus credit pymt | 0 | 225 | 250 | 375 | 375 | 425 | 450 | 450 | 450 | 350 | 350 | 350 | 4,050 |
| Expenses | 2,997 | 4,512 | 5,937 | 8,162 | 9,462 | 10,262 | 10,887 | 11,487 | 11,287 | 10,337 | 10,187 | 10,587 | 106,104 |
| Monthly CFS | 500 | 2,500 | 5,900 | 8,500 | 13,600 | 18,000 | 19,700 | 19,800 | 20,700 | 19,500 | 17,100 | 16,900 | 162,700 |
| Cash Flow | 2,497 | 2,012 | 37 | 338 | 4,138 | 7,738 | 8,813 | 8,313 | 9,413 | 9,163 | 6,913 | 6,313 | 56,596 |
Assumptions
Pressure washing jobs are billed competitively for .05 cents per square foot
Hydroblasting (washer and sand pot attachment) is billed at .50 cents per square foot
Superficial coatings are billed at .40 cents per square foot
Wand and Hanly soda blasting are billed at $1.30 per square foot
Labor is calculated at 40 hours a week at $10.00 per technician, beginning in the 5th month
First month includes securing 1 job, second month 2 jobs, thereafter 4 per month
Industry standard of 97% collection of receivables within 30 days
