Our financial plan charts the course for our new business and is ever evolving as we start
up. It's an ongoing and living document. This is a conservative view of our plans and ex-
pectations in the market and within ourselves. We don't have a “hockey stick” forecast, one
that predicts skyrocketing sales figures that in chart form look like a hockey stick. Rather,
we have carefully studied and analyzed the market and believe that our financial plan is
accurate and correctly represents our new venture.
The start-up expenses for the business are greatly reduced, compared to other businesses.
The company owner will maintain an office and toll-free telephone line at his residence.
This gives our business an immediate advantage over other traditional start-ups and offers
a low barrier to entry.
With this advantage, NEWCO, LLC strives to remain lean and aggressive and to utilize
many capital assets that are already owned. Therefore, the worksheet on page 69 summar-
izes the start-up expenses and expenditures that will be purchased at or just before business
Our cash-flow projection outlines our cash position, month to month, starting in January
with the $10,000 injection and assuming modest sales ramp up over a twelve-month period.
(Note from author: See an example of this on page 114). This cash-flow projection shows
how beginning in April of the first year, the cash position of the business improves each
month, simultaneously allowing wages to be paid and increased.
In month seven (July), we plan on hiring our first full-time employee, which will give us
the opportunity to grow the business and stay on plan.
NEWCO, LLC Start-up Expenses Worksheet
ExpENsE CAsH BuDgETED Accounting services $100.00
Equipment - Cpu $829.00
Equipment - Tools $190.00
Equipment - Bench $520.00
Internet service $62.00
Legal Costs $100.00
office supplies $300.00