This is a sample financial projection for a fictional coffee shop business called “Coffee Corner.” Remember, actual figures will vary depending on your specific business plan.
Assumptions
- Year 1: Opening year with initial investment and ramp-up period.
- Sales growth of 10% per year in Years 2 and 3.
- Rent and other fixed costs remain constant.
- Variable costs (cost of goods sold) are 30% of revenue.
- Payroll and other operating expenses increase 5% per year.
Income Statement
| Year | Revenue | Cost of Goods Sold | Gross Profit | Operating Expenses | Net Income |
|---|---|---|---|---|---|
| 1 | $200,000 | $60,000 | $140,000 | $120,000 | $20,000 |
| 2 | $220,000 | $66,000 | $154,000 | $126,000 | $28,000 |
| 3 | $242,000 | $72,600 | $169,400 | $132,300 | $37,100 |
Balance Sheet (Year-End Figures)
| Year | Assets | Liabilities | Owner’s Equity |
|---|---|---|---|
| 1 | $300,000 (Initial Investment + Inventory) | $200,000 (Loan) | $100,000 |
| 2 | $320,000 (Cash + Inventory + Equipment) | $180,000 (Loan Paydown) | $140,000 |
| 3 | $342,400 (Cash + Inventory + Equipment) | $160,000 (Loan Paydown) | $182,400 |
Cash Flow Statement
| Year | Cash Inflow (Revenue) | Cash Outflow (Expenses) | Net Cash Flow |
|---|---|---|---|
| 1 | $200,000 | $240,000 (Expenses + Loan Payment) | -$40,000 |
| 2 | $220,000 | $234,600 (Expenses + Loan Payment) | -$14,600 |
| 3 | $242,000 | $228,440 (Expenses + Loan Payment) | $13,560 |
Notes:
- This is a simplified example and does not include all potential financial elements.
- You can expand this model to include additional details such as loan terms, depreciation schedules, and break-even analysis.
- Financial projections are best created using spreadsheet software like Excel or Google Sheets.
Remember: Financial projections are a tool to help you plan and assess the financial viability of your business. Regularly review and update your projections as your business progresses.