Publishing Business Plan
Below is our publishing business plan template and sample plan created using what we consider the best free AI business plan generator.
I. Executive Summary
Company Overview
EverLasting Impressions Publishing is a newly established venture based in Brookhaven, GA, stepping into the vibrant world of publishing. Our mission is to serve the local community by offering a comprehensive range of high-quality publishing services, filling a significant gap in the market. Our dedicated team is passionate about empowering local authors and content creators, helping to bring their visions to life and share their stories with the world. With services covering editing, proofreading, design, formatting, distribution, marketing, and rights management, we are committed to supporting our clients at every step of their publishing journey. As a business deeply rooted in our local community, we are excited to become a cornerstone for local authors, providing them with the necessary tools and support to thrive in the competitive publishing landscape.
Success Factors
Our confidence in the success of EverLasting Impressions Publishing is based on several key factors. The founder’s previous experience in the publishing industry provides us with invaluable insights and a solid foundation for success. Our superior rights management and licensing services, combined with a comprehensive suite of publishing services, set us apart from competitors. Since our inception on January 5, 2024, we have made significant strides, including developing a strong brand identity and securing an excellent location for our operations. These accomplishments, along with our commitment to building on this foundation, position us well for creating a lasting impact in the publishing world.
Industry Analysis
The Publishing industry in the United States, valued at approximately $25 billion in 2020, continues to show resilience and growth despite the challenges posed by digital media. With an expected annual growth rate of 2.5%, the industry’s value is projected to reach $30 billion by 2025. A key trend is the increasing consumer demand for niche and specialized content, offering new opportunities for companies like EverLasting Impressions Publishing. Based in Brookhaven, GA, we are ideally positioned to capitalize on this trend by offering tailored publishing services. The rise of self-publishing and independent authors further expands our market, allowing us to provide comprehensive support and solutions to a growing segment of aspiring writers and authors.
Customer Analysis
Our primary customer base includes local residents of Brookhaven, GA, encompassing aspiring authors, families, local businesses, and educational institutions. By offering a diverse range of publishing services, we cater to the unique needs of each segment, from publishing first books to creating custom educational materials. Our approach is tailored to support local authors in achieving wider recognition, while also addressing the specific requirements of businesses and schools for professional publishing services. This strategy enables us to build a strong customer base and establish EverLasting Impressions Publishing as a key player in the local community.
Competitive Analysis
Our main competitors include Paperback Book Printers, known for their high-quality paperback printing, and Hourglass Publishing, which offers a comprehensive suite of services for new authors. Additionally, Atlanta Business Chronicle competes for advertising dollars within our market. Our competitive advantage lies in our focus on rights management and licensing, providing authors with greater control and profit from their work. Combined with our broad range of publishing services, from editorial excellence to global distribution, we offer unmatched support to our authors. This comprehensive approach and dedication to author success set us apart in a crowded market.
Marketing Plan
EverLasting Impressions Publishing offers a wide range of high-quality services, from editing and proofreading to design, distribution, and marketing, all designed to meet the needs of authors striving for success. Our pricing is competitive and tailored to the complexity of each service, ensuring accessibility for authors at every stage of their journey. Our promotional plan includes a robust online marketing strategy, leveraging social media, email marketing, SEO, and content marketing to build brand awareness and engage with our audience. We will also participate in local events and community engagements, fostering relationships with authors, bookstores, and libraries. Through these efforts, we aim to attract and retain a loyal customer base and make a significant impact in the publishing industry.
Operations Plan
Our operational plan involves key processes such as manuscript acquisition and review, editing and proofreading, design and layout, printing and production, distribution, marketing and promotion, customer service, financial management, and strategic planning. We aim to finalize our strategic location in Brookhaven, GA, establish a legal and financial framework, and develop a strong brand identity. Building relationships with authors and literary agents, launching our business with an inaugural list of titles, and establishing distribution channels are among our initial milestones. Our goal is to achieve operational efficiency and financial stability, consistently generating significant monthly revenue and expanding our publishing catalog to ensure long-term success in the publishing industry.
Management Team
Under the leadership of Gianna Stewart, our President, EverLasting Impressions Publishing boasts a management team with a wealth of experience and expertise in the publishing industry. Gianna’s proven track record of successfully managing a publishing business and her deep knowledge of the industry’s complexities make her an invaluable asset to our team. Her vision and leadership are instrumental in guiding our company towards achieving and surpassing our goals, ensuring our position as a leading publisher in the market.
Financial Plan
To achieve our growth goals, EverLasting Impressions Publishing requires $205,000 in funding. This investment will be allocated across various areas, including capital improvements to our location, equipment purchases, and initial operational costs such as salaries, marketing, and insurance. This funding is critical for establishing our operations, building a strong foundation for our business, and driving our growth in the competitive publishing industry.
Summary
Below is an overview of our expected financial performance over the next five years:
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
---|---|---|---|---|---|
Revenues | $6,801,606 | $7,364,984 | $7,975,027 | $8,635,600 | $9,350,888 |
Direct Expenses | $3,301,257 | $3,469,441 | $3,646,193 | $3,831,949 | $4,027,169 |
Gross Profit | $3,500,348 | $3,895,542 | $4,328,834 | $4,803,650 | $5,323,718 |
Gross Profit (%) | 51.5% | 52.9% | 54.3% | 55.6% | 56.9% |
Other Expenses | $97,085 | $100,030 | $103,065 | $106,192 | $109,414 |
EBITDA | $3,403,263 | $3,795,512 | $4,225,768 | $4,697,457 | $5,214,304 |
Depreciation | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 |
Amortization | $0 | $0 | $0 | $0 | $0 |
Interest Expense | $20,500 | $20,500 | $20,500 | $20,500 | $20,500 |
Income Tax Expense | $1,174,167 | $1,311,454 | $1,462,043 | $1,627,135 | $1,808,031 |
Net Income | $2,180,596 | $2,435,557 | $2,715,224 | $3,021,822 | $3,357,772 |
II. Company Overview
EverLasting Impressions Publishing is a new venture stepping into the world of publishing and serving the community in Brookhaven, GA. As a local business, we are excited to fill the gap in the market by providing high-quality publishing services that were previously unavailable in the area. Our team is dedicated to bringing the visions and voices of local authors to life, ensuring their stories and ideas are shared with the world in the most professional manner.
At EverLasting Impressions Publishing, our offerings are designed to cater to the diverse needs of authors and content creators. Our range of services includes Editing and Proofreading, to ensure your work is polished and error-free; Design and Formatting, to create visually appealing and reader-friendly publications; Distribution and Sales, to make sure your work reaches its audience; Marketing and Promotion, to build your presence and engage readers; and Rights Management and Licensing, providing you with the best possible control and profits from your work. We are here to support you at every step of the publishing journey.
Located in the heart of Brookhaven, GA, we are proud to be part of this vibrant community and to serve its residents. Our focus is on being a cornerstone for local authors, providing them with the services and support they need to succeed in the competitive world of publishing.
Our confidence in the success of EverLasting Impressions Publishing stems from several key factors. Firstly, our founder brings valuable experience from running a successful publishing business in the past. This expertise is complemented by our superior rights management and licensing offerings compared to our competitors, along with a broader spectrum of publishing services. These unique qualifications set us apart and provide us with a solid foundation for success.
Since our founding on January 5, 2024, EverLasting Impressions Publishing has achieved a number of significant milestones. As a Limited Liability Company, we have developed a strong brand identity, complete with a designed logo and a memorable company name. Additionally, we have secured an excellent location that will serve as our base of operations. These accomplishments mark just the beginning of our journey, and we are committed to building on this strong foundation to create a lasting impact in the world of publishing.
III. Industry Analysis
The Publishing industry in the United States is a significant sector that continues to thrive despite the challenges presented by digital media. In 2020, the industry was valued at approximately $25 billion, with continued growth expected in the coming years. Market analysts project a steady annual growth rate of 2.5% over the next five years, reaching a value of $30 billion by 2025.
One of the key trends in the Publishing industry is the increasing demand for niche and specialized content. Consumers are seeking out unique and personalized reading materials, creating opportunities for new players like EverLasting Impressions Publishing. Based in Brookhaven, GA, EverLasting Impressions Publishing is well-positioned to capitalize on this trend by offering customized publishing services tailored to the specific needs of its customers.
Additionally, the rise of self-publishing and independent authors has opened up new avenues for growth in the Publishing industry. EverLasting Impressions Publishing can tap into this market segment by providing comprehensive publishing solutions and support to aspiring writers and authors. By staying abreast of industry trends and leveraging its expertise, EverLasting Impressions Publishing can establish a strong presence in the market and carve out a niche for itself in the competitive publishing landscape.
IV. Customer Analysis
Below is a description of our target customers and their core needs.
Target Customers
We will target local residents in Brookhaven, GA, as our primary customer segment. This group is integral to our success, comprising individuals and families interested in a range of publishing services. From aspiring authors who need support to publish their first book to families looking to create memorable photo books or custom holiday cards, our services will cater to their diverse needs.
EverLasting Impressions Publishing will also focus on serving local businesses and educational institutions. Businesses in Brookhaven looking for professional publishing services for their marketing materials, such as brochures, business cards, and catalogs, will find our offerings invaluable. Similarly, schools and colleges in the area will benefit from our custom publishing solutions for their textbooks, yearbooks, and other educational materials.
In addition to these segments, we will tailor our services to meet the needs of local authors seeking a platform for their work. By providing a range of publishing, marketing, and distribution services, we will support these authors in reaching a wider audience, both locally and beyond. This approach will not only help us build a strong customer base but also establish EverLasting Impressions Publishing as a key player in the Brookhaven community.
Customer Needs
EverLasting Impressions Publishing meets the critical need for high-quality design and formatting that authors and creators in the community seek. Clients can expect their work to be presented in the most professional and appealing manner, ensuring that the final product stands out in a competitive market. This focus on excellence in presentation is essential for authors who want to make a significant impact with their work.
In addition to top-tier design services, EverLasting Impressions Publishing provides comprehensive rights management and licensing expertise. Authors and creators can navigate the complex landscape of intellectual property with confidence, knowing their interests are protected. This service is invaluable for those looking to maximize the potential of their work while ensuring legal security and compliance.
Moreover, EverLasting Impressions Publishing addresses the broader needs of its clients by offering personalized support and guidance through the publishing process. From initial concept to final print, clients can rely on a team that understands the nuances of publishing and can tailor their approach to suit each unique project. This level of personalized service ensures that every client’s vision is realized to its fullest potential, making EverLasting Impressions Publishing a trusted partner in the creative journey.
V. Competitive Analysis
Direct Competitors
EverLasting Impressions Publishing’s competitors include the following companies:
Paperback Book Printers specializes in offering high-quality printing services for paperback books. Their products include a variety of paper and cover options to suit different publishing needs, catering primarily to self-publishers and small publishing houses. They have competitive price points that vary based on the specifics of the printing job, such as quantity, paper type, and binding options. While specific revenue figures are not publicly available, their cost-effective printing solutions have garnered a strong customer base, particularly among independent authors and small publishers. Paperback Book Printers operates primarily in the southeastern United States, with their main facility located in Atlanta, Georgia. Their key strength lies in their customization options and quick turnaround times. However, their focus solely on paperback printing can be seen as a limitation, as it does not cater to publishers looking for hardcover or specialty printing options.
Hourglass Publishing stands out for its comprehensive suite of services tailored towards new authors, including editorial services, book design, marketing, and distribution. They offer various packages that scale in price depending on the level of service required, making them accessible to authors at different stages of their publishing journey. Hourglass Publishing has an undisclosed revenue, but their business model targets a wide range of authors from those just starting to well-established ones looking to expand their reach. They are based in Atlanta, Georgia, but their services extend to authors across the United States, focusing on both digital and print markets. A key strength of Hourglass Publishing is their personalized approach to each project, ensuring that authors receive the support they need. A potential weakness is their pricing structure, which might be prohibitive for authors on a tighter budget.
Atlanta Business Chronicle, while not a traditional publishing house, competes for attention and advertising dollars within the local market. They offer a range of advertising products and services, including print ads in their weekly publication, online advertising options, and sponsorship opportunities for their numerous events. Their pricing varies widely depending on the advertising package and placement chosen. The Atlanta Business Chronicle generates significant revenue through its advertising services, subscriptions, and event sponsorships, highlighting its strong position in the Atlanta business community. The publication serves a broad audience in the Greater Atlanta area, focusing on business professionals, leaders, and entrepreneurs. Their strength lies in their extensive network and reputation as a leading source of business news and information in Atlanta. However, their focus on news and advertising rather than publishing content for authors could be seen as a weakness when compared to traditional publishing services.
Competitive Advantages
At EverLasting Impressions Publishing, we understand the critical importance of rights management and licensing in the publishing industry. Our approach ensures that authors retain greater control and receive more favorable terms than what is typically offered in the market. This focus on empowering authors not only sets us apart but also attracts a diverse range of talent looking for a partner that values their creative control and financial returns. By prioritizing these aspects, we can offer unique opportunities for our authors to expand their reach and income through more strategic licensing agreements that are often overlooked by other publishers.
In addition to our superior rights management and licensing capabilities, we boast a comprehensive suite of publishing services that covers every aspect of bringing a book to market. From editorial excellence and innovative design to strategic marketing and global distribution, our services are designed to meet the needs of today’s authors. This holistic approach ensures that each book we publish has the best possible chance for success, setting us apart in a crowded marketplace. Our commitment to providing a full spectrum of publishing services underlines our dedication to our authors’ success, making us an attractive option for both new and established voices looking for a publisher that can offer more than just the basics.
VI. Marketing Plan
Our marketing plan, included below, details our products/services, pricing and promotions plan.
Products, Services & Pricing
EverLasting Impressions Publishing offers an array of services designed to meet the comprehensive needs of authors looking to make their mark in the literary world. The company prides itself on providing high-quality services across various facets of the publishing industry, ensuring that authors have the support they need to successfully publish their works.
Editing and Proofreading are foundational services offered, aimed at refining and perfecting manuscripts. The company employs experienced editors who specialize in different genres to provide tailored feedback and corrections. Prices for editing and proofreading services depend on the manuscript’s length and complexity but typically start around $0.02 per word. This meticulous process ensures that texts are grammatically sound and stylistically polished before proceeding to the next stages of publication.
Design and Formatting services cater to the aesthetic aspects of book publishing. This includes the creation of eye-catching book covers and the professional formatting of the manuscript’s interior for both print and digital formats. Prices for these services start at $200 for basic formatting and can go up to $500 or more for complex designs and formatting needs. The goal is to match the book’s visual presentation with its literary quality, making it appealing to potential readers.
Distribution and Sales is a critical service that ensures books reach their intended audience. EverLasting Impressions Publishing partners with major distributors to make titles available in both physical and digital bookstores globally. The company also helps set up print-on-demand options, ensuring authors do not have to bear the cost of large print runs. The service fees for distribution and sales are generally included in a percentage of sales revenue, providing a cost-effective solution for authors.
Marketing and Promotion services are designed to maximize the visibility and appeal of books to potential readers. This includes the development and execution of marketing plans, which cover social media promotions, book tours, and placement in newsletters and relevant publications. The starting price for marketing packages is around $500, which can increase based on the campaign’s scope and duration. Tailored strategies ensure that books find their audience and generate sales momentum.
Rights Management and Licensing is a service offered to authors who wish to maximize their book’s potential beyond the initial publication. This includes negotiating terms for audiobooks, translations, and adaptations into other media. The company acts as a liaison between authors and interested parties, ensuring that authors receive fair compensation for their work. Fees for rights management and licensing services are typically a percentage of the deals negotiated, ensuring authors have expert support without upfront costs.
EverLasting Impressions Publishing stands as a comprehensive partner for authors at every stage of the publishing process. With a focus on quality and a commitment to the success of its authors, the company provides the tools and guidance necessary for authors to leave a lasting impression on the literary world.
Promotions Plan
At EverLasting Impressions Publishing, we understand the importance of connecting with our audience and making a lasting impression. To achieve this, we employ a variety of promotional methods, with a strong emphasis on online marketing, to ensure we reach our target customers effectively and efficiently.
One of the core strategies we will utilize is social media marketing. By creating engaging content on platforms such as Facebook, Twitter, and Instagram, we aim to build a community around our brand. This will not only increase brand awareness but also allow us to interact directly with our customers, gathering feedback and fostering loyalty.
Email marketing is another tool we will leverage. By developing a subscription-based newsletter, we will keep our subscribers informed about new releases, upcoming events, and exclusive offers. This direct line of communication is invaluable for retaining customers and encouraging repeat business.
Search Engine Optimization (SEO) will be critical in ensuring that our website ranks highly on search engine results pages. By optimizing our site’s content with relevant keywords, we will attract more organic traffic, making it easier for potential customers to find us online.
Content marketing will also play a significant role in our promotional efforts. By regularly publishing high-quality, informative, and entertaining content, we will position ourselves as thought leaders in the publishing industry. This content will not only attract visitors to our website but also improve our SEO efforts.
In addition to online marketing, we will also explore traditional promotional methods such as local events and community engagements. Participating in book fairs, author signings, and literary festivals in Brookhaven, GA, and surrounding areas will allow us to connect with our audience in a personal and meaningful way.
Networking is another avenue we will pursue. Building relationships with local authors, bookstores, and libraries can lead to collaborative efforts that benefit all parties involved. These partnerships can increase our visibility and credibility within the local community and beyond.
Lastly, customer referral programs will be implemented to encourage our satisfied customers to spread the word about our publishing house. By offering incentives for referrals, we can harness the power of word-of-mouth marketing, which is invaluable for a business like ours.
By employing these promotional methods, EverLasting Impressions Publishing expects to attract and retain a loyal customer base, making a significant impact in the publishing industry. Our comprehensive approach to marketing combines the best of online and offline strategies to ensure our message reaches our intended audience, wherever they may be.
VII. Operations Plan
Our Operations Plan details:
- The key day-to-day processes that our business performs to serve our customers
- The key business milestones that our company expects to accomplish as we grow
Key Operational Processes
To ensure the success of EverLasting Impressions Publishing, there are several key day-to-day operational processes that we will perform.
- Manuscript Acquisition and Review:
- Review manuscripts submitted by authors for potential publication.
- Engage with authors throughout the review process, providing timely feedback.
- Identify manuscripts that align with our publishing goals and target market needs.
- Editing and Proofreading:
- Perform content editing to improve clarity, organization, and coherence.
- Conduct copy editing to correct grammar, spelling, punctuation, and syntax.
- Ensure manuscripts are proofread thoroughly to uphold high-quality publication standards.
- Design and Layout:
- Collaborate with designers to create engaging book covers and interior layouts.
- Ensure designs are appropriate for the target audience and genre.
- Review and approve final designs and layouts before proceeding to print.
- Printing and Production:
- Select the most suitable printing method (e.g., on-demand, offset printing) based on the volume and book specifications.
- Maintain quality control throughout the printing process to ensure the final product meets our standards.
- Manage inventory levels effectively to meet demand without overstocking.
- Distribution:
- Establish and maintain relationships with distributors and retailers to ensure wide availability of our books.
- Utilize online platforms and e-commerce for direct sales to consumers.
- Monitor sales channels to ensure efficient distribution and replenishment of stock.
- Marketing and Promotion:
- Develop and implement marketing strategies to promote new releases and backlist titles.
- Engage with readers and authors through social media, email newsletters, and events.
- Collaborate with authors on marketing efforts, ensuring they have the tools and support for book promotion.
- Customer Service:
- Respond promptly to customer inquiries and feedback.
- Handle order processing, delivery issues, and returns efficiently.
- Maintain a high level of customer satisfaction to build loyalty and encourage repeat business.
- Financial Management:
- Monitor day-to-day financial transactions, including sales revenue, expenses, and cash flow.
- Prepare and review financial reports regularly to ensure the business remains profitable.
- Manage budgets for publishing projects, marketing campaigns, and operational costs.
- Strategic Planning and Analysis:
- Analyze market trends and reader preferences to inform future publishing decisions.
- Evaluate the performance of published titles to identify opportunities for growth and improvement.
- Develop long-term strategies to expand our market presence and enhance our publishing portfolio.
Milestones
EverLasting Impressions Publishing expects to complete the following milestones in the coming months in order to ensure its success:
- Secure a Strategic Location: Finalize the lease for a physical office in Brookhaven, GA, that will serve as the central hub for operations, meetings, and local author engagements. This location will also house a small inventory of published works for direct sale.
- Establish Legal and Financial Framework: Complete all necessary legal formalities, including registering the business, obtaining any necessary publishing licenses, and setting up a robust financial system for managing revenues, expenses, and taxes.
- Develop a Strong Brand Identity and Online Presence: Create a compelling brand identity, including a logo and company color scheme, and launch a professional website. The website should feature an online store for selling published works directly to consumers and information for authors interested in publishing with EverLasting Impressions.
- Build Relationships with Authors and Literary Agents: Begin outreach to local and national authors and literary agents to build a pipeline of manuscripts for potential publication. Hosting networking events and attending literary conferences will aid in this effort.
- Launch Our Publishing Business: Officially launch EverLasting Impressions Publishing with an inaugural list of titles. This launch should be supported by a marketing campaign that leverages social media, local press, and literary blogs to generate buzz.
- Establish Distribution Channels: Secure partnerships with bookstores, both local independents and national chains, as well as online retailers to ensure wide availability of published titles. Additionally, setting up accounts with e-book platforms will be crucial to capture the digital market.
- Implement a Robust Marketing and Sales Strategy: Develop and execute a comprehensive marketing plan that includes author tours, book signings, online promotions, and targeted advertising to drive sales and brand recognition.
- Achieve Operational Efficiency: Streamline operations to reduce costs, including negotiating favorable terms with printers and distributors, automating sales and inventory management, and optimizing shipping and fulfillment processes.
- Get to $15,000/month in Revenue: Through a combination of direct sales, distribution deals, and online sales, consistently generate at least $15,000 in monthly revenue. This financial stability will demonstrate market traction and support further growth.
- Expand the Publishing Catalog: Continually seek out new and diverse voices to add to the publishing roster, aiming to grow the catalog by at least 20% annually. This will help in keeping the publishing line fresh and engaging for a broad audience. By systematically achieving these milestones, EverLasting Impressions Publishing will mitigate risks associated with launching a new business and set a solid foundation for long-term success in the competitive publishing industry.
VIII. Management Team
Our management team has the experience and expertise to successfully execute on our business plan.
Management Team Members
EverLasting Impressions Publishing management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:
Gianna Stewart, President
Gianna Stewart, President, brings a proven track record of success in the publishing industry to EverLasting Impressions Publishing. Having previously managed a publishing business, Gianna has demonstrated an adept ability to navigate the complex landscape of publishing, from identifying promising manuscripts to overseeing the entire publishing process and successfully bringing books to market. Her leadership and vision have been instrumental in shaping the strategic direction of previous ventures, and she is poised to guide EverLasting Impressions Publishing to a position of lasting success. Gianna’s depth of experience and industry knowledge make her an invaluable asset to the team, ensuring that the company not only meets but exceeds its goals.
IX. Financial Plan
Summary
Below is an overview of our expected financial performance over the next five years:
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
---|---|---|---|---|---|
Revenues | $6,801,606 | $7,364,984 | $7,975,027 | $8,635,600 | $9,350,888 |
Direct Expenses | $3,301,257 | $3,469,441 | $3,646,193 | $3,831,949 | $4,027,169 |
Gross Profit | $3,500,348 | $3,895,542 | $4,328,834 | $4,803,650 | $5,323,718 |
Gross Profit (%) | 51.5% | 52.9% | 54.3% | 55.6% | 56.9% |
Other Expenses | $97,085 | $100,030 | $103,065 | $106,192 | $109,414 |
EBITDA | $3,403,263 | $3,795,512 | $4,225,768 | $4,697,457 | $5,214,304 |
Depreciation | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 |
Amortization | $0 | $0 | $0 | $0 | $0 |
Interest Expense | $20,500 | $20,500 | $20,500 | $20,500 | $20,500 |
Income Tax Expense | $1,174,167 | $1,311,454 | $1,462,043 | $1,627,135 | $1,808,031 |
Net Income | $2,180,596 | $2,435,557 | $2,715,224 | $3,021,822 | $3,357,772 |
Funding Requirements/Use of Funds
To accomplish our growth goals, EverLasting Impressions Publishing needs $205,000 in funding. Key uses of this funding will be as follows:
Capital Investments | |
---|---|
Location Buildout/Improvements | $50,000 |
Furniture | $10,000 |
Equipment | $20,000 |
Machines (Printers, Binders, etc.) | $50,000 |
Computers and IT Infrastructure | $10,000 |
Non Capital Investments | |
---|---|
Working Capital | $20,000 |
Initial Rent/Lease (First 3 Months) | $6,000 |
Staff Salaries (First 3 Months) | $30,000 |
Initial Marketing and Advertising | $5,000 |
Supplies | $2,000 |
Insurance (First Year Premium) | $2,000 |
Financial Projections
5 Year Annual Income Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Revenues | $6,801,606 | $7,364,984 | $7,975,027 | $8,635,600 | $9,350,888 | |
Total Revenues | $6,801,606 | $7,364,984 | $7,975,027 | $8,635,600 | $9,350,888 | |
Direct Costs | ||||||
Direct Costs | $3,301,257 | $3,469,441 | $3,646,193 | $3,831,949 | $4,027,169 | |
Total Direct Costs | $3,301,257 | $3,469,441 | $3,646,193 | $3,831,949 | $4,027,169 | |
GROSS PROFIT | $3,500,348 | $3,895,542 | $4,328,834 | $4,803,650 | $5,323,718 | |
GROSS PROFIT % | 51.5% | 52.9% | 54.3% | 55.6% | 56.9% | |
Other Expenses | ||||||
Salaries | $72,814 | $75,023 | $77,299 | $79,644 | $82,060 | |
Marketing Expenses | $6,067 | $6,251 | $6,441 | $6,637 | $6,838 | |
Rent/Utility Expenses | $6,067 | $6,251 | $6,441 | $6,637 | $6,838 | |
Other Expenses | $12,135 | $12,503 | $12,883 | $13,274 | $13,676 | |
Total Other Expenses | $97,085 | $100,030 | $103,065 | $106,192 | $109,414 | |
EBITDA | $3,403,263 | $3,795,512 | $4,225,768 | $4,697,457 | $5,214,304 | |
Depreciation | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | |
Amortization | $0 | $0 | $0 | $0 | $0 | |
EBIT | $3,375,263 | $3,767,512 | $4,197,768 | $4,669,457 | $5,186,304 | |
Interest Expense | $20,500 | $20,500 | $20,500 | $20,500 | $20,500 | |
PRETAX INCOME | $3,354,763 | $3,747,012 | $4,177,268 | $4,648,957 | $5,165,804 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $3,354,763 | $3,747,012 | $4,177,268 | $4,648,957 | $5,165,804 | |
Income Tax Expense | $1,174,167 | $1,311,454 | $1,462,043 | $1,627,135 | $1,808,031 | |
NET INCOME | $2,180,596 | $2,435,557 | $2,715,224 | $3,021,822 | $3,357,772 | |
Net Profit Margin (%) | 32.1% | 33.1% | 34% | 35% | 35.9% |
5 Year Annual Balance Sheet
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $1,978,204 | $4,407,929 | $7,114,050 | $10,138,745 | $13,276,448 | |
Other Current Assets | $583,825 | $632,183 | $684,547 | $719,633 | $779,240 | |
Total Current Assets | $2,562,029 | $5,040,113 | $7,798,598 | $10,858,379 | $14,055,688 | |
Intangible Assets | $0 | $0 | $0 | $0 | $0 | |
Acc Amortization | $0 | $0 | $0 | $0 | $0 | |
Net Intangibles | $0 | $0 | $0 | $0 | $0 | |
Fixed Assets | $140,000 | $140,000 | $140,000 | $140,000 | $140,000 | |
Accum Depreciation | $28,000 | $56,000 | $84,000 | $112,000 | $140,000 | |
Net fixed assets | $112,000 | $84,000 | $56,000 | $28,000 | $0 | |
Preliminary Exp | $0 | $0 | $0 | $0 | $0 | |
TOTAL ASSETS | $2,674,029 | $5,124,113 | $7,854,598 | $10,886,379 | $14,055,688 | |
LIABILITIES & EQUITY | ||||||
Current Liabilities | $288,433 | $302,959 | $318,219 | $328,178 | $344,715 | |
Debt outstanding | $205,000 | $205,000 | $205,000 | $205,000 | $0 | |
Total Liabilities | $493,433 | $507,959 | $523,219 | $533,178 | $344,715 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $2,180,596 | $4,616,153 | $7,331,378 | $10,353,200 | $13,710,973 | |
Total Equity | $2,180,596 | $4,616,153 | $7,331,378 | $10,353,200 | $13,710,973 | |
TOTAL LIABILITIES & EQUITY | $2,674,029 | $5,124,113 | $7,854,598 | $10,886,379 | $14,055,688 |
5 Year Annual Cash Flow Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $2,180,596 | $2,435,557 | $2,715,224 | $3,021,822 | $3,357,772 | |
Change in Working Capital | ($295,391) | ($33,832) | ($37,103) | ($25,127) | ($43,070) | |
Plus Depreciation | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | |
Plus Amortization | $0 | $0 | $0 | $0 | $0 | |
Net Cash Flow from Operations | $1,913,204 | $2,429,725 | $2,706,121 | $3,024,695 | $3,342,702 | |
CASH FLOW FROM INVESTMENTS | ||||||
Fixed Assets | ($140,000) | $0 | $0 | $0 | $0 | |
Intangible Assets | $0 | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($140,000) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from Equity | $0 | $0 | $0 | $0 | $0 | |
Cash from Debt financing | $205,000 | $0 | $0 | $0 | ($205,000) | |
Net Cash Flow from Financing | $205,000 | $0 | $0 | $0 | ($205,000) | |
Net Cash Flow | $1,978,204 | $2,429,725 | $2,706,121 | $3,024,695 | $3,137,702 | |
Cash at Beginning of Period | $0 | $1,978,204 | $4,407,929 | $7,114,050 | $10,138,745 | |
$1,978,204 | $4,407,929 | $7,114,050 | $10,138,745 | $13,276,448 |