Bakery Business Plan

Jolly's Java and Bakery

Financial Plan

Forecast

Revenue Forecast

	FY2019	FY2020	FY2021
Revenue
Coffee	$475,065	$517,500	$569,250
Pastries	$223,750	$250,000	$275,000
Other	$12,930	$15,000	$20,000
Total Revenue	$711,745	$782,500	$864,250
Direct Cost
Coffee	$190,026	$207,000	$227,700
Pastries	$89,500	$100,000	$110,000
Other	$5,172	$6,000	$8,000
Direct Labor
Total direct costs	$284,698	$313,000	$345,700
Gross margin	$427,047	$469,500	$518,550
Gross margin %	60%	60%	60%

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

We will be financing initial assets of $65,000 long-term assets (equipment, etc.) and $12,000 current assets plus initial inventory and the early months before break-even occurs.

Sources of Funds

Two owners each investing $70,000. Total startup investment is $140,000

Statements

Projected Profit & Loss

	FY2019	FY2020	FY2021
Revenue	$711,745	$782,500	$864,250

Direct Costs	$284,698	$313,000	$345,700

Gross Margin	$427,047	$469,500	$518,550
Gross Margin %	60%	60%	60%
Operating Expenses
Salaries & Wages	$265,000	$291,500	$320,650
Employee Related Expenses	$53,000	$58,300	$64,130
Rent	$60,000	$65,000	$70,000
Marketing and Promotion	$30,500	$33,000	$35,000
Total Operating Expenses	$408,500	$447,800	$489,780

Operating Income	$18,547	$21,700	$28,770

Interest Incurred	$2,881	$2,616	$2,343
Depreciation and Amortization	$13,000	$13,000	$13,000
Gain or Loss from Sale of Assets
Income Taxes	$400	$913	$2,014
Total Expenses	$709,479	$777,329	$852,837
Net Profit	$2,266	$5,171	$11,413
Net Profit/Sales	0%	1%	1%

Projected Balance Sheet

	Starting Balances	FY2019	FY2020	FY2021
Cash	$70,000	$91,886	$98,613	$115,920
Accounts Receivable	$0	$0	$0	$0
Inventory	$12,000	$26,083	$28,809	$28,809
Other Current Assets
Total Current Assets	$82,000	$117,969	$127,421	$144,729

Long-Term Assets	$65,000	$65,000	$65,000	$65,000
Accumulated Depreciation	$0	($13,000)	($26,000)	($39,000)
Total Long-Term Assets	$65,000	$52,000	$39,000	$26,000

Total Assets	$147,000	$169,969	$166,421	$170,729

Accounts Payable	$1,000	$13,233	$14,790	$15,024
Income Taxes Payable		$400	$231	$506
Sales Taxes Payable		$16,781	$15,650	$17,285
Short-Term Debt	$8,711	$8,976	$9,249	$9,530
Prepaid Revenue
Total Current Liabilities	$9,711	$39,390	$39,920	$42,345
Long-Term Debt	$91,289	$82,313	$73,064	$63,533
Long-Term Liabilities	$91,289	$82,313	$73,064	$63,533

Total Liabilities	$101,000	$121,703	$112,984	$105,878

Paid-In Capital	$110,000	$110,000	$110,000	$110,000
Retained Earnings	($64,000)	($64,000)	($61,734)	($56,563)
Earnings		$2,266	$5,171	$11,413
Total Owner’s Equity	$46,000	$48,266	$53,437	$64,850

Total Liabilities & Equity	$147,000	$169,969	$166,421	$170,729

Projected Cash Flow Statement

	FY2019	FY2020	FY2021
Net Cash Flow from Operations
Net Profit	$2,266	$5,171	$11,413
Depreciation & Amortization	$13,000	$13,000	$13,000
Change in Accounts Receivable	$0	$0	$0
Change in Inventory	($14,083)	($2,726)	$0
Change in Accounts Payable	$12,233	$1,557	$233
Change in Income Tax Payable	$400	($169)	$275
Change in Sales Tax Payable	$16,781	($1,131)	$1,635
Change in Prepaid Revenue
Net Cash Flow from Operations	$30,597	$15,702	$26,556
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt	$265	$273	$281
Change in Long-Term Debt	($8,976)	($9,249)	($9,530)
Net Cash from Financing	($8,711)	($8,976)	($9,249)
Cash at Beginning of Period	$70,000	$91,886	$98,613
Net Change in Cash	$21,886	$6,726	$17,307
Cash at End of Period	$91,886	$98,613	$115,920