Artificial florals have been a part of humanity for thousands of years. Ancient Egyptians replicated florals using thin slivers of horn, and silk floral replications date back over one thousand and five hundred years ago in China. Ladies of the Imperial Palace ordered silk florals to be worn in their hair, a trend that spread through Japan, Korea, and further. The Victorian era saw lavish arrangements, floral bouquets, and an entire language of flowers through artificial and genuine florals.
Fake flowers and plants have come a long way since their origins over a thousand years ago! Today's technology and craftsmanship allow us to enjoy the glory of full blooms, luscious leaves, and delightful greenery so realistic it is hard to tell the faux from the real. And there are so many beautiful benefits with faux florals in our homes.
Today we're excited to share an extensive dive into every benefit you can enjoy with artificial flowers in your home.
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1. Evergreen
When fake plants are made by a company that cares about every detail, you will enjoy your artificial flowers for a long time. In many cases, decades or more. With some simple steps to care for your faux blooms, you can keep them looking fresh and as realistic as the day you brought them home.
Dust weekly with a craft or paintbrush, and as long as the florals or plants are not created from latex or foam, you can even clean them with a damp cloth.
Are you tired of the same arrangement? Change it quickly by rearranging your florals into a new statement piece and recycling them into a craft project&#;the sky's the limit! Artificial plants and flowers are truly evergreen, as they can be reused, repurposed, and reinvigorated in countless ways.
2. Nothing to Sneeze At
Those of us who suffer allergies, especially those triggered by pollens, know the misery of pollen season and spring. Allergy symptoms for many people can be severe. Just a few of the symptoms of fragrance allergy or pollen allergies are:
&#; Headaches
&#; Difficulty breathing
&#; Wheezing
&#; Tight feeling in the chest
&#; Worsening asthma symptoms
&#; Runny, stuffy nose
&#; Sneezing
&#; Nasal congestion
&#; Runny, itchy eyes
&#; Itchy throat
&#; A skin allergy like contact dermatitis, which is an itchy, red rash
Artificial flowers are 100% pollen and fragrance-free, allowing many with severe allergies to decorate their home with beautiful plants they may never have been able to.
3. Time and Money Saving
Our time is precious and sometimes limited in today's fast-paced and hectic world. Maintaining healthy, happy live plants requires time and effort. Certain types of plants require specific amounts of sunlight, direct or indirect. Other plants require watering at particular times or special nutrients for their soil and monitoring humidity. At the end of the day, whether you frequently travel for work or have a long shift&#;many of us can't commit to caring for natural plants.
Artificial flowers and fake plants don't require sunlight, watering, unique placement, or soil monitoring. The only care artificial plants need is the occasional dusting!
When it comes to saving money, artificial botanicals never fade or whither. You don't have to worry about what florals are in or out of season, and there's no need to worry about fungus or gnats or purchasing a new bouquet every week for your home.
4. Mental and Emotional Impact
Including plants in your interior design provides an uplifting and welcoming ambiance and positively impacts the health and well-being of those in the home. And yes, artificial flowers, plants, and even faux trees and shrubs can offer the same benefits.
While artificial plants cannot filter the air in your home, the visual appeal, mood improvement, and stress reduction are shared between real and faux flowers. Green has long been known as a soothing color, and many plants and flowers mimic fractal patterns. This naturally occurring repetitive pattern is aesthetically pleasing to the eye and calming and relaxing.
Faux flowers and plants used to have a bad reputation for being fake. Today, thanks to technology and innovative materials, faux botanicals look natural and can feel real to the touch.
5. Pet Friendly
Some plants and flowers can be highly harmful to pets. Lilies, members of the Lilium spp. family is, in fact, highly poisonous to felines. Even the smallest amount of lily can cause severe and sometimes fatal kidney damage. Parts of the Sago Palm, Tulips and Narcissus bulbs, Azaleas, Oleander, Yew, Amaryllis, Autumn Crocus, and even Chrysanthemums are also highly toxic.
Artificial florals and plants, however, carry none of the toxicity risks, meaning you can display any of your favorite plants and flowers without the worry of pets nibbling something that could be dangerous to them.
6. Environmentally Conscious
While not every faux floral company is reputable, many companies strive to be more environmentally conscious daily. Companies that care about the environment are working to reduce and reuse many materials that would otherwise take up landfills and decades to degrade.
Additionally, many real flowers are grown overseas in South America and Africa, where the climate is more conducive to growing flowers year-round. However, those countries have little to no guidelines on the use of pesticides, as flowers are not considered food.
Since more cut flowers are imported, they have often flown thousands of miles in refrigerated airplane holds. The transport of flowers grown in Colombia and flown to the US is estimated to generate up to 360,000 metric tons of C02. That would be roughly the equivalent of 78,000 cars if they were driven for one year.
The idea is to get blooms from the field to a vase in your home within three to five days. On top of the carbon emissions from importing, flower growing contributes to high water use and pesticide chemical runoff. In some parts of Africa, flower farms are being blamed for consuming alarming amounts of fresh water.
Artificial flowers require no water or chemicals to last, and in colder climates, they do not require heated greenhouses.
Faux botanicals look great, help improve your mood, brighten up your space, are allergen free, pet-friendly, and better for the environment. What's not to love? Artificial floral arrangements take the long view of sustainability and beauty over the genuine any day.
Fantastic Florals
Fantastic Florals, Inc. (FFI) imports exclusively handmade flowers by artisans from Indonesia. The firm&#;s main office is in Anytown, Oregon, and has a customs house broker in Seattle, Washington to deal with related matters.
FFI quality products are unique and exclusive, and its target consumers are women with upper-middle to upper-end incomes. FFI&#;s competitive edge is that the products are 100% handmade, unlike competitor&#;s products. By this fact, the firm hopes to attract people that value the artistry of producing silk flowers. Since FFI products are mostly silk flowers and silk hair accessories, it considers itself to be in the retail gift market, although some consumers purchase the product for themselves.
For the starting year, the company plans to attract manufacturer reps and retailers to distribute the products by attending the Silk trade show in Chicago, Illinois. This trade show is where suppliers of silk flowers and other silk products and buyers meet and arrange deals to sell the product. FFI projected sales are approximately $1.1 million by the end of the first year of operation. Also during this year, FFI plans to open an exclusive gift shop for our product in Anytown at the Third Street Public Market, leasing for five years.
For the following year, the company plans to expand to direct mail catalog sales by being in an established catalog, with a similar target market. FFI projects sales of $1.5 million in Year 2. During the third year, FFI plans to do both selling through suppliers, catalogs, and the exclusive gift store in Anytown, projecting sales to be nearly $2 million.
The FFI family will expand in Year 3 by adding 10 different kinds of flowers and flower arrangements. Maintaining an average gross margin of 25 to 30 percent is very realistic. The projected rate of annual growth in sales is 25 percent.
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FFI&#;s mission is to become a recognized importer of artisan quality silk gift items in the United States. The company guarantees 100 percent customer satisfaction and values friendly service.
FFI&#;s purpose is to increase customer appreciation of handmade silk flowers and other silk products and to provide customers with beautiful unique artistic decorations.
Keys to success for Fantastic Florals Inc. are:
Fantastic Florals, Inc. imports silk flowers and other silk accessories products from artisans in Indonesia and distributes the products to customers in the United States. The customers are retail stores and wholesalers who want imported silk flowers and accessories products, targeting women in middle-upper to upper-end income as the end user of the products.
Fantastic Florals, Inc. is a privately held Anytown corporation. Suzy Rosemadder, FFI&#;s founder, is the majority owner. Several members of the board of directors also hold minority stock positions.
Start-up costs are approximated at $75,000, which primarily consists of product costs and expenses associated with establishing a marketing program and opening up FFI&#;s first distribution center.
Start-up Requirements Start-up Expenses Legal $1,000 Insurance $600 Rent $1,300 Other $200 Total Start-up Expenses $3,100 Start-up Assets Cash Required $70,000 Start-up Inventory $0 Other Current Assets $0 Long-term Assets $0 Total Assets $70,000 Total Requirements $73,100We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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FFI&#;s headquarters are located in Anytown at the founder&#;s home, Main Street, Anytown, OR . It will also have a 600-square foot retail store at the Third Street Public Market, which will serve as both an outlet and test market.
FFI imports silk flowers and other silk accessories. These products provide consumers with a wide variety of product lines and allows for individual customization of orders.
Fantastic Florals, Inc. has a variety of silk flowers and products from which to choose. During the first two years, the product line will include:
Fantastic Florals, Inc. products contain these features that distinguish them from those produced by competitors:
Copies of FFI products, more specifically bouquets and other arrangements are included. Upon production of advertisements and brochures, these will be added.
FFI imports products from artisans in Indonesia and then hires brokers in Seattle to take care of the legal requirements and paperwork. Currently, there are no significant obstacles in importing the products into the United States. According to the U.S. Customs Office in Seattle, there are no quotas for artificial products imported from Indonesia. FFI will benefit from the duty-free treatment under the new GSP rules.
Some FFI products are protected by patents, although the majority of products and services are not dependent on patentable inventions nor process technology.
Fantastic Florals, Inc. plans to introduce ten new kinds of flowers and silk products every year for the first four years, with aggressive advertising at the beginning of each year that introduces these new flowers.
After establishing a firm reputation, FFI plans to import products other that silk products, but all will still be related to flowers. These will be produced by Indonesian artisans in various cities in the original region, all managed by the same artist. The products will include silk jewelry boxes, mirrors, and china, all with hand-painted flowers.
Currently, the market for permanent floral products is rapidly expanding. According to statistics, the value of permanent floral products for the fiscal year was over $2.2 billion, and it still continues to grow.
The gift industry is also growing, as households headed by 45- to 54-year-olds are the biggest gift purchasers.
Since Fantastic Florals, Inc. only deals with a few, select products, segmentation is minimal. Two segments currently exist:
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There are two industries for Fantastic Florals, Inc.: the gift market industry and the silk flower and accessories industry.
In , the average American household gave 5.8 percent of its total spending to gifts, a 0.3 percent increase from . Households headed by 45- to 54-year-olds are the biggest gift-givers. These consumers spend an average of $1,450 on gifts, which is 62 percent more than the average household. In addition, married couples without children are the most generous gift-givers. These households spend 48 percent more than average on gifts. Households with incomes of over $65,000 spent 135 percent more than average on gifts, while they also account for 58 percent of the glassware gift market and 62 percent of the plant and flower gift market. By the year , it is estimated that households headed by 35- to 54-year-olds will account for 63 percent of the gift market.
In the silk flowers and accessories industry, flowers alone accumulated sales over $1.95 billion in . This category still continues to grow.
Considering the information and analysis of both industries, FFI believes that its products have the opportunity to be successful in the market. The growing gift industry and silk flower and accessories industry imply that there is a growing demand for these products. Because there is no similar product currently available in the U.S. market, FFI has a huge opportunity in the silk accessory industry.
According to the information from Silk &#;94, the wholesale buyers of silk flowers and accessories are:
The company is the world’s best Artificial Flowers Supplier supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.
Fantastic Florals, Inc. current competitors in the surrounding area are:
There are currently no direct competitors in the silk hair accessories market, and the silk flowers industry is very unconcentrated. Few wholesalers distribute directly to the consuming public, and the majority of retail stores only offer a minimal selection with varying quality.
Both industries, however, are predicted to develop further, while the gift industry also continues to grow. As the markets evolve, the key issue will be relations with suppliers. As there are few suppliers of silk flowers and accessories, competition is likely to increase substantially.
Distribution channels are currently relatively simple. There is one artist in Indonesia who provides all products for FFI. The products are shipped directly to FFI facilities, which are then sold to consumers. There are no significant obstacles to importing these products, and there are no import quotas.
FFI focuses on providing high-quality products to consumers with outstanding service. Customization of orders and specialization of services will create a competitive advantage.
FFI is developing the organization by beginning with few employees to reduce costs. All current employees are very motivated, resulting in a positive and strong company culture. This culture will carry over to all new trainees, which is a prime objective for the expansion of FFI.
The first year of service will be the most important, as FFI plans to establish strong relations with both suppliers and buyers. These relationships will help FFI to grow and evolve in this industry.
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The goal of FFI is to promote its products as fine collectibles, either for the collector or the gift-buyer. This will be done through in-store promotions, direct-mail advertisements, appearances in related catalogs, and publicity events.
FFI sets standard prices for each product line. These prices are not expected to experience significant change over the next three years.
These prices exhibit quality products at reasonable costs to consumers.
Products will be distributed through the retail store in Anytown at Third Street Market or by pre-orders until FFI is able to further expand. Sales is one area that needs to be developed in order to better serve the consumer and meet objectives.
As indicated in the table, sales are forecasted to remain relatively constant throughout , with growth predicted in both and . Sales, however, will tend to fluctuate depending on the month and the season.
Sales Forecast Year 1 Year 2 Year 3 Unit Sales Tulips and Roses 28,300 35,165 45,714 Arranged Flowers 1 5,000 6,501 8,451 Arranged Flowers 2 5,000 6,500 8,450 Silk Scarf 10,800 13,910 18,083 Other hair accessories 12,000 15,600 20,280 Other/seasonal bouquet 8,200 10,660 13,858 Catalog Sales 0 20,000 30,000 Total Unit Sales 69,300 108,336 144,836 Unit Prices Year 1 Year 2 Year 3 Tulips and Roses $2.25 $2.25 $2.25 Arranged Flowers 1 $18.99 $18.99 $2.25 Arranged Flowers 2 $39.99 $39.99 $39.99 Silk Scarf $15.99 $15.99 $15.99 Other hair accessories $9.99 $9.99 $9.99 Other/seasonal bouquet $59.99 $59.99 $59.99 Catalog Sales $0.00 $2.25 $2.25 Sales Tulips and Roses $63,675 $79,121 $102,857 Arranged Flowers 1 $94,950 $123,454 $19,015 Arranged Flowers 2 $199,950 $259,935 $337,916 Silk Scarf $172,692 $222,421 $289,147 Other hair accessories $119,880 $155,844 $202,597 Other/seasonal bouquet $491,918 $639,493 $831,341 Catalog Sales $0 $45,000 $67,500 Total Sales $1,143,065 $1,525,269 $1,850,373 Direct Unit Costs Year 1 Year 2 Year 3 Tulips and Roses $1.50 $1.50 $1.50 Arranged Flowers 1 $11.99 $11.99 $1.42 Arranged Flowers 2 $27.99 $27.99 $27.99 Silk Scarf $8.50 $8.50 $8.50 Other hair accessories $6.50 $6.50 $6.50 Other/seasonal bouquet $41.99 $41.99 $41.99 Catalog Sales $0.00 $1.50 $1.50 Direct Cost of Sales Tulips and Roses $42,446 $52,742 $68,564 Arranged Flowers 1 $59,951 $77,949 $12,006 Arranged Flowers 2 $139,963 $181,952 $236,537 Silk Scarf $91,803 $118,239 $153,711 Other hair accessories $78,006 $101,408 $131,830 Other/seasonal bouquet $344,343 $447,645 $581,939 Catalog Sales $0 $29,997 $44,996 Subtotal Direct Cost of Sales $756,512 $1,009,932 $1,229,583We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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Sample Milestones topic text.
The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.
Milestones Milestone Start Date End Date Budget Manager Department Sample Milestones 1/4/ 1/4/ $0 ABC Department Finish Business Plan 5/7/ 6/6/ $100 Dude Boss Acquire Financing 5/17/ 7/6/ $200 Dudette Legumers Ah HA! Event 5/27/ 6/1/ $60 Marianne Bosses Oh NO! Event 6/26/ 7/1/ $250 Marionette Bouc émissaire Grande Opening 7/6/ 7/11/ $500 Gloworm Nobs Marketing Program Starts 6/6/ 7/1/ $1,000 Glower Marketeers Plan vs. Actual Review 11/1/ 11/8/ $0 Galore Alles First Break-even Month 3/5/ 4/4/ $0 Bouys Salers Hire Employees 2/1/ 3/3/ $150 Gulls HRM Upgrade Business Plan Pro 4/22/ 4/24/ $100 Brass Bossies Totals $2,360Fantastic Florals, Inc. will start with three qualified and experienced employees. An increase to six employees will likely be needed in three to five years. FFI will continue to have a customs-house broker in Seattle to take care of the import-related matters and sales representatives who are compensated based on commission.
Fantastic Florals, Inc. will be a Subchapter-S corporation. Legal matters and written agreements are being handled by an FFI consultant lawyer.
The company is organized into three main functional areas:
Each of the three employees is responsible for managing his or her area of expertise. The problems with having only one individual in charge of a department are as follows:
The personnel plan indicates one employee for each department:
Beginning in , there will be two employees in both Sales and Marketing and Administration.
Personnel Plan Year 1 Year 2 Year 3 Production/Fulfillment $14,400 $16,000 $18,000 Sales and Marketing $14,400 $32,000 $54,000 Administration $14,400 $32,000 $36,000 Total People 3 3 4 Total Payroll $43,200 $80,000 $108,000We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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General assumptions in FFI&#;s financial plan indicate the assumption of a stable economy without any major recessions or booms in both the U.S. and Indonesian economies.
General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% Other 0 0 0We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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The owner will contribute $35,000 to finance the start-up requirements. FFI is also seeking a short-term loan of $35,000, to be repaid by July (two and a half years), for the remainder of necessary start-up funding.
Start-up Funding Start-up Expenses to Fund $3,100 Start-up Assets to Fund $70,000 Total Funding Required $73,100 Assets Non-cash Assets from Start-up $0 Cash Requirements from Start-up $70,000 Additional Cash Raised $0 Cash Balance on Starting Date $70,000 Total Assets $70,000 Liabilities and Capital Liabilities Current Borrowing $35,000 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $3,100 Other Current Liabilities (interest-free) $0 Total Liabilities $38,100 Capital Planned Investment Owner $35,000 Investor $0 Additional Investment Requirement $0 Total Planned Investment $35,000 Loss at Start-up (Start-up Expenses) ($3,100) Total Capital $31,900 Total Capital and Liabilities $70,000 Total Funding $73,100Key financial indicators for Fantastic Florals, Inc. include:
FFI&#;s break-even analysis indicates that the firm has a strong balance of costs and sales.
Break-even Analysis Monthly Units Break-even 2,284 Monthly Revenue Break-even $37,667 Assumptions: Average Per-Unit Revenue $16.49 Average Per-Unit Variable Cost $10.92 Estimated Monthly Fixed Cost $12,738Fantastic Florals, Inc. projects profits for every month of and on into both and , in addition to positive growth margins for the same time periods.
Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $1,143,065 $1,525,269 $1,850,373 Direct Cost of Sales $756,512 $1,009,932 $1,229,583 Shipping, etc. $40,235 $44,260 $48,688 Total Cost of Sales $796,747 $1,054,192 $1,278,271 Gross Margin $346,318 $471,077 $572,102 Gross Margin % 30.30% 30.88% 30.92% Expenses Payroll $43,200 $80,000 $108,000 Marketing/Promotion $84,455 $118,860 $162,302 Depreciation $0 $0 $0 Rent $15,600 $17,160 $18,876 Utilities $2,400 $2,640 $2,904 Insurance $7,200 $7,920 $8,712 Payroll Taxes $0 $0 $0 Other $0 $0 $0 Total Operating Expenses $152,855 $226,580 $300,794 Profit Before Interest and Taxes $193,463 $244,497 $271,308 EBITDA $193,463 $244,497 $271,308 Interest Expense $2,778 $1,500 $417 Taxes Incurred $57,206 $72,899 $81,267 Net Profit $133,480 $170,097 $189,624 Net Profit/Sales 11.68% 11.15% 10.25%FFI&#;s cash balance is expected to increase each year, providing the necessary capital for expansion into different product lines and distribution channels.
Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $857,299 $1,143,951 $1,387,779 Cash from Receivables $232,800 $363,607 $447,529 Subtotal Cash from Operations $1,090,099 $1,507,558 $1,835,308 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $1,090,099 $1,507,558 $1,835,308 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $43,200 $80,000 $108,000 Bill Payments $916,116 $1,339,812 $1,556,038 Subtotal Spent on Operations $959,316 $1,419,812 $1,664,038 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $13,332 $13,332 $8,336 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $972,648 $1,433,144 $1,672,374 Net Cash Flow $117,451 $74,415 $162,934 Cash Balance $187,451 $261,865 $424,800We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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The balance sheet indicates a positive and ever-increasing net worth for FFI.
Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $187,451 $261,865 $424,800 Accounts Receivable $52,967 $70,677 $85,741 Inventory $88,783 $118,524 $144,302 Other Current Assets $0 $0 $0 Total Current Assets $329,200 $451,066 $654,843 Long-term Assets Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $0 $0 $0 Total Assets $329,200 $451,066 $654,843 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Accounts Payable $142,153 $107,253 $129,742 Current Borrowing $21,668 $8,336 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $163,821 $115,589 $129,742 Long-term Liabilities $0 $0 $0 Total Liabilities $163,821 $115,589 $129,742 Paid-in Capital $35,000 $35,000 $35,000 Retained Earnings ($3,100) $130,380 $300,477 Earnings $133,480 $170,097 $189,624 Total Capital $165,380 $335,477 $525,101 Total Liabilities and Capital $329,200 $451,066 $654,843 Net Worth $165,380 $335,477 $525,101The ratios illustrated in the table indicate strong, consistent growth. Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code , Flowers and Florist&#;s Supplies, are shown for comparison.
Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth 0.00% 33.44% 21.31% 6.22% Percent of Total Assets Accounts Receivable 16.09% 15.67% 13.09% 25.17% Inventory 26.97% 26.28% 22.04% 28.25% Other Current Assets 0.00% 0.00% 0.00% 28.53% Total Current Assets 100.00% 100.00% 100.00% 81.95% Long-term Assets 0.00% 0.00% 0.00% 18.05% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 49.76% 25.63% 19.81% 45.52% Long-term Liabilities 0.00% 0.00% 0.00% 13.34% Total Liabilities 49.76% 25.63% 19.81% 58.86% Net Worth 50.24% 74.37% 80.19% 41.14% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 30.30% 30.88% 30.92% 13.07% Selling, General & Administrative Expenses 21.06% 21.93% 22.19% 5.31% Advertising Expenses 1.05% 0.89% 0.76% 0.67% Profit Before Interest and Taxes 16.92% 16.03% 14.66% 1.00% Main Ratios Current 2.01 3.90 5.05 1.53 Quick 1.47 2.88 3.94 0.82 Total Debt to Total Assets 49.76% 25.63% 19.81% 62.11% Pre-tax Return on Net Worth 115.30% 72.43% 51.59% 3.32% Pre-tax Return on Assets 57.92% 53.87% 41.37% 8.77% Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin 11.68% 11.15% 10.25% n.a Return on Equity 80.71% 50.70% 36.11% n.a Activity Ratios Accounts Receivable Turnover 5.40 5.40 5.40 n.a Collection Days 56 59 62 n.a Inventory Turnover 12.00 9.74 9.36 n.a Accounts Payable Turnover 7.42 12.17 12.17 n.a Payment Days 27 35 27 n.a Total Asset Turnover 3.47 3.38 2.83 n.a Debt Ratios Debt to Net Worth 0.99 0.34 0.25 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a Liquidity Ratios Net Working Capital $165,380 $335,477 $525,101 n.a Interest Coverage 69.64 162.98 650.93 n.a Additional Ratios Assets to Sales 0.29 0.30 0.35 n.a Current Debt/Total Assets 50% 26% 20% n.a Acid Test 1.14 2.27 3.27 n.a Sales/Net Worth 6.91 4.55 3.52 n.a Dividend Payout 0.00 0.00 0.00 n.aWe recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
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Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Production/Fulfillment 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 Sales and Marketing 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 Administration 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 Total People 3 3 3 3 3 3 3 3 3 3 3 3 Total Payroll $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 Pro Forma Profit and Loss Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales $74,722 $110,212 $96,692 $76,546 $101,365 $112,087 $90,966 $114,610 $77,020 $74,296 $80,520 $134,030 Direct Cost of Sales $49,591 $73,086 $64,737 $50,840 $67,089 $74,436 $59,540 $75,686 $50,691 $48,842 $53,191 $88,783 Shipping, etc. $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 Total Cost of Sales $52,591 $76,146 $67,858 $54,024 $70,336 $77,748 $62,918 $79,132 $54,206 $52,427 $56,848 $92,513 Gross Margin $22,131 $34,066 $28,834 $22,522 $31,029 $34,339 $28,048 $35,478 $22,814 $21,869 $23,672 $41,517 Gross Margin % 29.62% 30.91% 29.82% 29.42% 30.61% 30.64% 30.83% 30.96% 29.62% 29.44% 29.40% 30.98% Expenses Payroll $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 Marketing/Promotion $6,355 $7,788 $7,160 $6,257 $7,279 $7,676 $6,720 $7,815 $6,290 $6,180 $6,395 $8,540 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 Payroll Taxes 18% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses $12,055 $13,488 $12,860 $11,957 $12,979 $13,376 $12,420 $13,515 $11,990 $11,880 $12,095 $14,240 Profit Before Interest and Taxes $10,076 $20,578 $15,974 $10,565 $18,050 $20,963 $15,628 $21,963 $10,824 $9,989 $11,577 $27,277 EBITDA $10,076 $20,578 $15,974 $10,565 $18,050 $20,963 $15,628 $21,963 $10,824 $9,989 $11,577 $27,277 Interest Expense $282 $273 $264 $255 $245 $236 $227 $218 $208 $199 $190 $181 Taxes Incurred $2,938 $6,091 $4,713 $3,093 $5,341 $6,218 $4,620 $6,523 $3,185 $2,937 $3,416 $8,129 Net Profit $6,856 $14,213 $10,997 $7,217 $12,463 $14,509 $10,781 $15,221 $7,431 $6,853 $7,971 $18,967 Net Profit/Sales 9.17% 12.90% 11.37% 9.43% 12.30% 12.94% 11.85% 13.28% 9.65% 9.22% 9.90% 14.15% Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales $56,042 $82,659 $72,519 $57,410 $76,024 $84,065 $68,225 $85,957 $57,765 $55,722 $60,390 $100,523 Cash from Receivables $0 $623 $18,976 $27,440 $24,005 $19,343 $25,431 $27,846 $22,939 $28,339 $19,232 $18,626 Subtotal Cash from Operations $56,042 $83,282 $91,495 $84,850 $100,029 $103,408 $93,655 $113,803 $80,704 $84,061 $79,622 $119,148 Additional Cash Received Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $56,042 $83,282 $91,495 $84,850 $100,029 $103,408 $93,655 $113,803 $80,704 $84,061 $79,622 $119,148 Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Expenditures from Operations Cash Spending $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 Bill Payments $6,895 $113,925 $114,489 $73,015 $53,489 $101,543 $100,004 $63,364 $109,569 $41,694 $62,371 $75,757 Subtotal Spent on Operations $10,495 $117,525 $118,089 $76,615 $57,089 $105,143 $103,604 $66,964 $113,169 $45,294 $65,971 $79,357 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent $11,606 $118,636 $119,200 $77,726 $58,200 $106,254 $104,715 $68,075 $114,280 $46,405 $67,082 $80,468 Net Cash Flow $44,435 ($35,354) ($27,705) $7,124 $41,829 ($2,846) ($11,060) $45,727 ($33,577) $37,656 $12,541 $38,680 Cash Balance $114,435 $79,081 $51,376 $58,500 $100,328 $97,483 $86,423 $132,150 $98,574 $136,230 $148,770 $187,451 Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Assets Starting Balances Current Assets Cash $70,000 $114,435 $79,081 $51,376 $58,500 $100,328 $97,483 $86,423 $132,150 $98,574 $136,230 $148,770 $187,451 Accounts Receivable $0 $18,681 $45,611 $50,808 $42,504 $43,840 $52,518 $49,829 $50,636 $46,952 $37,187 $38,085 $52,967 Inventory $0 $49,591 $73,086 $64,737 $50,840 $67,089 $74,436 $59,540 $75,686 $50,691 $48,842 $53,191 $88,783 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $70,000 $182,707 $197,778 $166,920 $151,844 $211,257 $224,437 $195,792 $258,472 $196,217 $222,259 $240,046 $329,200 Long-term Assets Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Assets $70,000 $182,707 $197,778 $166,920 $151,844 $211,257 $224,437 $195,792 $258,472 $196,217 $222,259 $240,046 $329,200 Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Current Liabilities Accounts Payable $3,100 $110,062 $112,031 $71,287 $50,104 $98,165 $97,948 $59,633 $108,203 $39,628 $59,927 $70,855 $142,153 Current Borrowing $35,000 $33,889 $32,778 $31,667 $30,556 $29,445 $28,334 $27,223 $26,112 $25,001 $23,890 $22,779 $21,668 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $38,100 $143,951 $144,809 $102,954 $80,660 $127,610 $126,282 $86,856 $134,315 $64,629 $83,817 $93,634 $163,821 Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $38,100 $143,951 $144,809 $102,954 $80,660 $127,610 $126,282 $86,856 $134,315 $64,629 $83,817 $93,634 $163,821 Paid-in Capital $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 Retained Earnings ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) Earnings $0 $6,856 $21,069 $32,066 $39,283 $51,747 $66,255 $77,036 $92,257 $99,688 $106,541 $114,512 $133,480 Total Capital $31,900 $38,756 $52,969 $63,966 $71,183 $83,647 $98,155 $108,936 $124,157 $131,588 $138,441 $146,412 $165,380 Total Liabilities and Capital $70,000 $182,707 $197,778 $166,920 $151,844 $211,257 $224,437 $195,792 $258,472 $196,217 $222,259 $240,046 $329,200 Net Worth $31,900 $38,756 $52,969 $63,966 $71,183 $83,647 $98,155 $108,936 $124,157 $131,588 $138,441 $146,412 $165,380We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
Create your own business plan
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