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Sample Financial Projection for Auto Repair Shop (Year 1)

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.