18 on business planning 76 projected balance sheet

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Unformatted text preview: th good staff support, one strong marketing person, an office manager, and a secretary. Later, we add more partners, consultants, and sales staff. Founders’ resumes are included as an attachment to this plan. 6.3 Personnel Plan The detailed monthly personnel plan for the first year is included in the appendix. The annual personnel estimates are included here. Personnel Plan Partners Consultants Editorial/graphic VP Marketing Sales people Office Manager Secretarial Other Other Total Payroll Year 1 $144,000 $0 $18,000 $20,000 $0 $7,500 $5,250 $0 $0 $194,750 Year 2 $175,000 $50,000 $22,000 $50,000 $30,000 $30,000 $20,000 $0 $0 $377,000 Year 3 $200,000 $63,000 $26,000 $55,000 $33,000 $33,000 $22,000 $0 $0 $432,000 Total Headcount Payroll Burden Total Payroll Expenditures 7 $27,265 $222,015 10 $52,780 $429,780 11 $60,480 $492,480 Page 11 HURDLE: THE BOOK SP1.14 ON BUSINESS PLANNING 7.0 Financial Plan 7.1 Important Assumptions The following table summarizes key financial assumptions, including 45-day average collection days, sales entirely on invoice basis, expenses mainly on net 30 basis, 35 days on average for payment of invoices, and present-day interest rates. General Assumptions Year 1 8.00% 10.00% 35 45 25.00% 25.00% 100.00% 14.00% Short-term Interest Rate % Long-term Interest Rate % Payment Days Estimator Collection Days Estimator Tax Rate % Expenses in Cash % Sales on Credit % Personnel Burden % Year 2 8.00% 10.00% 35 45 25.00% 25.00% 100.00% 14.00% Year 3 8.00% 10.00% 35 45 25.00% 25.00% 100.00% 14.00% 7.2 Key Financial Indicators The following benchmark chart indicates our key financial indicators for the first three years. We foresee major growth in sales and operating expenses, and a bump in our collection days as we spread the business during expansion. Benchmark Comparison Page 12 SAMPLE PLAN: ACME CONSULTING SP1.15 7.3 Break-even Analysis This table and chart summarizes the break-even analysis, including monthly units and sales breakeven points. Break...
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