Business plan

7.0 Financial Plan

[YOUR COMPANY NAME] will finance growth through cash flow, grants and government contract revenues. 

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

• 
  The Company assumes a slow-growth economy, with slow recovery after a national economy crisis, and has therefore set income levels substantially lower than capacity allows.
  
• 
  The Company assumes of that there will be no major changes in federal grant funding availability.
  
• 
  The Company assumes that a major weather catastrophe could affect business, and there are hopes it does not happen at all, especially in the first year of this plan.  
  

7.2 Break-even Analysis

[YOUR COMPANY NAME] break-even numbers demonstrate that the Company will need an income of $22,114 a month.  This will cover the company's expenses and minimal staff needed.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$34,369
Assumptions:
Average Percent Variable Cost	36%
Estimated Monthly Fixed Cost	$22,114

7.3 Projected Surplus or Deficit

The surplus indicates positive revenues flowing into the [YOUR COMPANY NAME].  The detailed monthly projections are included in the appendix.

Table: Surplus and Deficit

Surplus and Deficit
	2011	2012	2013
Funding	$557,252	$573,969	$591,189
Direct Cost	$198,698	$204,656	$210,796
Other Costs of Funding	$0	$0	$0
Total Direct Cost	$198,698	$204,656	$210,796
Gross Surplus	$358,554	$369,313	$380,393
Gross Surplus %	64.34%	64.34%	64.34%
Expenses
Payroll	$219,996	$226,596	$233,394
Marketing/Promotion	$0	$0	$0
Depreciation	$0	$0	$0
Supplies	$17,340	$17,860	$18,396
Telephone	$4,164	$4,289	$4,418
Postage and Shipping	$264	$272	$280
Occupancy	$8,988	$9,258	$9,535
Equipment Maintenance	$14,616	$15,054	$15,506
Total Operating Expenses	$265,368	$273,329	$281,529
Surplus Before Interest and Taxes	$93,186	$95,984	$98,864
EBITDA	$93,186	$95,984	$98,864
Interest Expense	$25,134	$25,134	$25,134
Taxes Incurred	$0	$0	$0
Net Surplus	$68,052	$70,850	$73,730
Net Surplus/Funding	12.21%	12.34%	12.47%