Prelude

This is the seventh entry regarding my business plan. This is part of a series where I will be posting my business plan online. If you are curious as to why I would post my business plan online, visit my “what’s the business plan” post.

Seasonality

The slowest month is December. From the start of December business starts to wind down as businesses prepare for the holiday season. After the first week of January, most revenue streams pick right back up, with video business taking a little longer to pick up.

However, the off-season isn’t large. The biggest variance comes in project work, which can come and go no matter the season. The unpredictability of project work is why the business has on-going contracts with several businesses that provide steady work every month. With this base of revenues, the business can sustain months on end without project work. However, it is quite unlikely to get no additional project or on-call work. Known slow periods, such as December, is also a good opportunity to take vacation time. In other slower periods, this would be an opportunity to do research, development, and re-calibration on the business.

Key Financial Assumptions

Assumptions made regarding revenues are:

  1. Relationships with key clients will be ongoing.
  2. Additional income can be obtained above and beyond relationships with key clients.
  3. Passive income can be achieved starting in 2011.
  4. The average hourly rate is $50 an hour

Assumptions made regarding Expenses are:

  1. An out-of-home office will not be needed, keeping overhead low.
  2. No major new equipment purchases will be made. If they are made, they will be financed and expensed over two to three years.
  3. Marketing expenses will not need to increase significantly in order to increase sales.

Projected Income Statement – Year One

Click on the image below for a full view of the statement.

Small Business Doer Income Statement 2010

Projected Income Statement 2010

Projected Income Statement – Year 1 and 2

Click on the image below for a full view of the statement.

Small Business Doer Income Statement for Year One and Two

Projected Income Statement Year One and Two

Projected Cash Flow – Year One

Click on the image below for a full view of the statement.

Small Business Doer Cashflow

Projected Cashflow - Year One

Opening Balance Sheet

Click on the image below for a full view of the statement.

Small Business Doer Balance Sheet

Balance Sheet - Year One

That’s it for the plan! Check out the updates to see how it all went down. The first Update is this January 2010 post.

Go back to the business plan page.