Business Plan Sample
To begin with, it is worth saying that one of the main points of the balance sheet has to be the option of the current actives of the organization. In other words, all items of business activity should be outlined as the financial interpretation of the business’ running resources. Taking this into account, it is to be said that the total asset is comprised by $64, 850. In fact, this amount has been reached during two past quarters of the third year. It can be explained by the technical widening of the organization so that it is capable of serving more clientele. In general, the asset has been increased on 30% during three years. Actually, such growth resulted in the constant funding the business so that the major part of income was used for broadening of the organization. To be more specific, the organization has operated with $58, 300 of circulating cash while the inventory was requiring only $5, 350. By the same token, prepaid expenses comprise $1, 200.
With regard to the current obligations of the firm, it is worth emphasizing that the organization has not taken any loans. In the same way, none of investors have been called. Actually, it is possible to explain by the fact that the firm primarily belongs to the sphere of a small business so that all start-ups are initiated on the basis of the entrepreneurship.
Concerning the capital of the organization, it should be admitted that owner’s equity is currently $37, 720. To be more precise, this amount is a result of previous funds so that last quarters of the third year. In such a way, it is possible to admit that the firm has been stabilized its performance because the correlation between annual income and funds is stable positive. Finally, regarding all three years of performance, the total liabilities and owner’s equity are comprised by $71, 350.
Speaking about the income statement, it is worth admitting that this spreadsheet is primarily focused on the outlining a financial success and losses of the organization during a particular period. Hence, it is important to take into consideration such aspects as expenses, losses, obligatory payments, and all other factors, which influence the income of the organization. Therefore, it is necessary to state that the income of the organization is actually equal to the current capital of the owner. It is known that the firm belongs to the sphere of a small business so that such cycling of income to capital is underpinned by the entrepreneurial desires of the owner. Thus, it is necessary to say that the clear income of the firm comprises $37, 720.
As for the regular expenses of the firm, it should be admitted that they include a range of aspects. Taking this into account, it is to be said that inventory costs $5, 350 while prepaid expenses are only $1, 200. What is more, it is important to outline regular assets. In such a way, equipment spending required $5, 000. As for furniture and fixtures, they comprised $2, 000. Besides that, it is worth mentioning that total less accumulated depreciation demanded $1,850. All in all, such low spending can be explained by the evidence of no loan have been taken and strictly focused funding of the business. Therefore, it is worth admitting that the firm has made a considerable progress within three years. It can be proved by the capital, which has been increased on 30%. With regard to the future growth of the firm, it should be noted that moves on the next stage of performance so that it may require the opening of some extra branches.
Cash Flow Statement
For starters, it is necessary to outline the main purpose of the cash flow statement. In fact, this type of spreadsheet summarizes the state of the organization’s financial abilities. It includes a wide range of items, which comprise the financial power of the firm in some particular way.
Taking this point into account, it is necessary to describe operative aspect of the company’s performance. Actually, the main source of the firm’s income is the immediate servicing of Apple and mobile production at the place, which is preferable for a customer. As a consequence, some costs on the gas, inventory, and equipment are required. Still, the organization managed to grow on 30% during recent years.
Speaking about performing abilities of the organization in terms of investment perspective, it is worth saying that the firm was not invested at all because it belongs to the sphere of a small business. Therefore, the company was initiated on the entrepreneurial basis. However, it is important to mention that the company demonstrates a thriving performance so that it would be capable of paying returns on investment.
Finally, concerning the financial activities of the company themselves, it should be admitted that the organization does not possess any additional tools for the capital increase. In other words, the primary source of the income is the actual sphere of activity. In such a way, the firm does not possess any external property and does not lease any, except the real estate, which is used for the firm’s headquarters, equipment storage, and supply base. What is more, the organization has not taken any loans so that it does not suffer from obligations to pay the debt. To the broadest extent, the correlation of benefits and losses concerning this perspective is equal null.
To start with, it is worth admitting that break-even analysis touches upon the revealing of conditions, under which the company will not face any losses, even though the entire income will cover them. To the broadest extent, this analysis identifies a capacity of the organization for the future performance. Hence, it is necessary to outline that the organization has grown considerably in recent three years so that the customer flow has been widened accordingly. By the same token, the income and spending of the firm has increased. Though, it is worth emphasizing on the tendency of the company’s growth, which is equal to 30%. In such a way, it is possible to admit that the company surely have reached a break-even point. Otherwise, the incomes and extents of the company would remain the same or even would start decreasing.
To be more specific, the break-even point can be also proved by two sources. The first one is the number of customers, who accepted the service of the firm at least once. In other words, the growth of the company can be explained by the increased number of customers and need for the additional place for equipment and inventory storage. In such a way, the number of customers was higher than the organization could serve. Therefore, the company had to widen itself. The second source is a financial interpretation of the company’s success. It is known that the clear capital of the owner is $37, 720 while inventory is only $5, 350 and equipment is $5, 000. All in all, it is to be said that the organization has surely reached the break-even point. Furthermore, the firm performs with thriving rates currently so that it can stop at this stage or make funds in order to grow more.
Actually, ratio analysis is a comparative summary of the financial statement of the organization. However, as no data regarding the competitors is available, it is necessary to summarize the tendencies of the organization’s developments. Taking this point into account, it should be admitted that the organization has grown on 30% during recent three years. In the same way, the organization has not taken any loans or investments because of its entrepreneurial background. Therefore, it is possible to admit that the developmental progress is obviously seen in this case. In addition, it is to be mentioned that the organization has quite promising prospects for the future expansion.
Speaking about the actual performance of the company, it is worth saying that it is the primary source of the income. Moreover, the constantly increasing number of customers has caused a need for a broadening because more and more people want to get their devices serviced by this organization. As a consequence, spending on inventory and equipment was remaining nearly the same while the clear owner’s capital has grown up to $37, 720. In such a way, the correlation between costs and actual income has become positive. Hence, the break-even point has been reached. To the broadest extent, the tendency of the organization’s income increase can be regarded as dynamic.
It can be explained by the fact that the company has reached a particular capacity of the growth. Thus, the organization can make new funds in order to widen its sphere of activity or remain at the same level with a constant income. One may say that the organization is still not protected from unexpected changes, but it should be admitted that the break-even point of the firm is far from its current thriving performance.