Assumptions:
- Location: Suburban area with moderate competition
- Services Offered: General repairs, oil changes, brakes, tune-ups
- Average Revenue per Repair Order: $500
- Number of Repair Orders per Month (Month 1): 10 (gradually increasing)
- Rent: $3,000 per month
- Salaries & Benefits: $6,000 per month (includes 1 mechanic)
- Parts & Inventory: $2,000 per month
- Utilities & Other Expenses: $1,000 per month
Income Statement
| Category | Amount |
|---|---|
| Revenue (Repair Orders) | $60,000 (12 months x (10 orders/month x $500/order)) |
| Cost of Goods Sold (Parts & Inventory) | $24,000 |
| Gross Profit | $36,000 |
| Operating Expenses: | |
| Rent | $36,000 |
| Salaries & Benefits | $72,000 |
| Utilities & Other Expenses | $12,000 |
| Total Operating Expenses | $120,000 |
| Net Loss | ($84,000) |
Balance Sheet (Year-End)
| Assets | Amount | Liabilities & Equity | Amount |
|---|---|---|---|
| Cash | $10,000 | Accounts Payable | $5,000 |
| Inventory | $2,000 | Owner’s Equity | ($77,000) |
| Equipment | $20,000 | Total Liabilities & Equity | ($77,000) |
| Total Assets | $32,000 |
Cash Flow Statement
| Category | Amount |
|---|---|
| Cash Inflow: | |
| Revenue from Services | $60,000 |
| Cash Outflow: | |
| Cost of Parts & Inventory | $24,000 |
| Rent | $36,000 |
| Salaries & Benefits | $72,000 |
| Utilities & Other Expenses | $12,000 |
| Total Cash Outflow | $144,000 |
| Net Cash Flow | ($84,000) |
Important Notes:
- This is a very simplified example and should be tailored to your specific business plan.
- You’ll need to research and adjust assumptions based on your location, target market, and service offerings.
- Consider including additional income streams like tire sales or detailing services.
- Factor in loan payments if applicable.
- It’s important to project for multiple years to show potential profitability in the future.