"Truck Stop" Business Plan:
1.0 Executive Summary
2.0 Company Summary
3.0 Products and Services
4.0 Market Analysis Summary
5.0 Strategy and Implementation Summary
6.0 Management Summary
7.0 Financial Plan
 7.1 Important Assumptions
7.2 Break-even Analysis
7.3 Projected Cash Flow
7.4 Projected Profit and Loss
 7.5 Business Ratios
Advertise here from 10,-EUR per month.
Business Ideas applicable for this business plan:
Need working capital for on going company
This business plan was originally published
by Palo Alto Software, Inc. All rights reserved.
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7.0 Financial Plan
The following topics outline the financials for Interstate Travel Center.
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7.1 Important Assumptions
The chart indicating the projected cash account does not take into
account the investment needed to initiate Phases II-IV. The General Assumptions
table states some of the more important business assumptions for the company.
|
| General Assumptions |
| |
2001 |
2002 |
2003 |
| Plan Month |
1 |
2 |
3 |
| Current Interest Rate |
10.00% |
10.00% |
10.00% |
| Long-term Interest Rate |
10.00% |
10.00% |
10.00% |
| Tax Rate |
25.42% |
25.00% |
25.42% |
| Sales on Credit |
0.00% |
0.00% |
0.00% |
| Other |
0 |
0 |
0 |
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7.2 Break-even Analysis
The break-even chart and table below describe how much money will need to be
made to be profitable each month. As can be seen in the table, 224,821 units per
month, or $116,907, is necessary for Interstate Travel Center to be in the
black. These numbers can also be seen with the accompanying chart.
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7.3 Projected Cash Flow
The chart and table below show our cash flow projections. Monthly figures are in the appendix tables.
Cash
|
| Pro Forma Cash Flow |
| |
2001 |
2002 |
2003 |
| |
| Cash from Operations: |
| Cash Sales |
$8,203,203 |
$8,604,910 |
$9,027,661 |
| Cash from Receivables |
$0 |
$0 |
$0 |
| Subtotal Cash from Operations |
$8,203,203 |
$8,604,910 |
$9,027,661 |
| |
| Additional Cash Received |
| Sales Tax, VAT, HST/GST Received |
$0 |
$0 |
$0 |
| New Current Borrowing |
$0 |
$0 |
$0 |
| New Other Liabilities (interest-free) |
$0 |
$0 |
$0 |
| New Long-term Liabilities |
$0 |
$0 |
$0 |
| Sales of Other Current Assets |
$0 |
$0 |
$0 |
| Sales of Long-term Assets |
$0 |
$0 |
$0 |
| New Investment Received |
$0 |
$0 |
$0 |
| Subtotal Cash Received |
$8,203,203 |
$8,604,910 |
$9,027,661 |
| Expenditures |
2001 |
2002 |
2003 |
| Expenditures from Operations: |
| Cash Spending |
$714,316 |
$732,403 |
$772,642 |
| Payment of Accounts Payable |
$6,500,180 |
$7,133,241 |
$7,484,370 |
| Subtotal Spent on Operations |
$7,214,496 |
$7,865,644 |
$8,257,012 |
| |
| Additional Cash Spent |
| Sales Tax, VAT, HST/GST Paid Out |
$0 |
$0 |
$0 |
| Principal Repayment of Current Borrowing |
$0 |
$0 |
$0 |
| Other Liabilities Principal Repayment |
$0 |
$0 |
$0 |
| Long-term Liabilities Principal Repayment |
$275,000 |
$275,000 |
$275,000 |
| Purchase Other Current Assets |
$0 |
$0 |
$0 |
| Purchase Long-term Assets |
$0 |
$0 |
$0 |
| Dividends |
$0 |
$0 |
$0 |
| Subtotal Cash Spent |
$7,489,496 |
$8,140,644 |
$8,532,012 |
| |
| Net Cash Flow |
$713,707 |
$464,266 |
$495,649 |
| Cash Balance |
$963,707 |
$1,427,973 |
$1,923,622 |
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7.4 Projected Profit and Loss
The chart and table below projects the yearly profit and loss for the company.
For a monthly breakdown, please see the appendices following the plan.
|
| Pro Forma Profit and Loss |
| |
2001 |
2002 |
2003 |
| Sales |
$8,203,203 |
$8,604,910 |
$9,027,661 |
| Direct Cost of Goods |
$6,063,555 |
$6,366,533 |
$6,684,784 |
| Other |
$0 |
$0 |
$0 |
|
------------ |
------------ |
------------ |
| Total Cost of Sales |
$6,063,555 |
$6,366,533 |
$6,684,784 |
| Gross Margin |
$2,139,648 |
$2,238,377 |
$2,342,878 |
| Gross Margin % |
26.08% |
26.01% |
25.95% |
| Expenses: |
| Payroll |
$481,672 |
$481,672 |
$481,672 |
| Sales and Marketing and Other Expenses |
$220,800 |
$278,800 |
$378,800 |
| Depreciation |
$30,000 |
$30,000 |
$30,000 |
| Leased Equipment |
$49,800 |
$49,800 |
$49,800 |
| Utilities |
$49,200 |
$49,200 |
$49,200 |
| Insurance |
$91,800 |
$91,800 |
$91,800 |
| Rent |
$24,000 |
$30,000 |
$34,000 |
| Payroll Taxes |
$72,251 |
$72,251 |
$72,251 |
| Other |
$0 |
$0 |
$0 |
| |
------------ |
------------ |
------------ |
| Total Operating Expenses |
$1,019,523 |
$1,083,523 |
$1,155,355 |
| Profit Before Interest and Taxes |
$1,120,125 |
$1,154,854 |
$1,155,355 |
| Interest Expense |
$235,104 |
$208,750 |
$181,250 |
| Taxes Incurred |
$224,890 |
$236,526 |
$247,585 |
| Net Profit |
$660,131 |
$709,578 |
$726,520 |
| Net Profit/Sales |
8.05% |
8.25% |
8.05% |
Profit Monthly
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7.5 Business Ratios
The table below outlines industry profile statistics for the gas
and service station industry, as determined by the Standard Industry
Classification (SIC) Index code 5541, Gasoline Service Stations. These
statistics show a comparison of the industry standards and key ratios for this plan.
| |
| Ratio Analysis |
| |
2001 |
2002 |
2003 |
Industry Profile |
| Sales Growth |
0.00% |
4.90% |
4.91% |
10.80% |
| |
| Percent of Total Assets |
| Accounts Receivable |
0.00% |
0.00% |
0.00% |
10.80% |
| Inventory |
8.91% |
8.08% |
7.40% |
13.30% |
| Other Current Assets |
1.76% |
1.52% |
1.33% |
25.60% |
| Total Current Assets |
44.65% |
53.10% |
59.86% |
49.50% |
| Long-term Assets |
55.35% |
46.90% |
40.14% |
50.50% |
| Total Assets |
100.00% |
100.00% |
100.00% |
100.00% |
| |
| Current Liabilities |
17.14% |
15.18% |
13.98% |
31.60% |
| Long-term Liabilities |
78.45% |
59.39% |
44.52% |
23.10% |
| Total Liabilities |
95.59% |
74.58% |
58.50% |
54.70% |
| Net Worth |
4.41% |
25.42% |
41.50% |
45.30% |
| |
| Percent of Sales |
| Sales |
100.00% |
100.00% |
100.00% |
100.00% |
| Gross Margin |
26.08% |
26.01% |
25.95% |
16.50% |
| Selling, General & Administrative Expenses |
17.99% |
17.77% |
17.86% |
10.40% |
| Advertising Expenses |
2.34% |
2.32% |
2.77% |
0.20% |
| Profit Before Interest and Taxes |
13.65% |
13.42% |
12.80% |
0.50% |
| |
| Main Ratios |
| Current |
2.60 |
3.50 |
4.28 |
1.55 |
| Quick |
2.08 |
2.96 |
3.75 |
0.91 |
| Total Debt to Total Assets |
95.59% |
74.58% |
58.50% |
54.70% |
| Pre-tax Return on Net Worth |
707.28% |
113.35% |
62.39% |
2.50% |
| Pre-tax Return on Assets |
31.20% |
28.82% |
25.89% |
5.50% |
| |
| Additional Ratios |
2001 |
2002 |
2003 |
|
| Net Profit Margin |
8.05% |
8.25% |
8.05% |
n.a |
| Return on Equity |
527.55% |
85.01% |
46.54% |
n.a |
| |
| Activity Ratios |
| Accounts Receivable Turnover |
0.00 |
0.00 |
0.00 |
n.a |
| Collection Days |
0 |
0 |
0 |
n.a |
| Inventory Turnover |
24.00 |
24.58 |
24.59 |
n.a |
| Accounts Payable Turnover |
14.37 |
14.33 |
14.28 |
n.a |
| Payment Days |
24 |
25 |
25 |
n.a |
| Total Asset Turnover |
2.89 |
2.62 |
2.40 |
n.a |
| |
| Debt Ratios |
| Debt to Net Worth |
21.67 |
2.93 |
1.41 |
n.a |
| Current Liab. to Liab. |
0.18 |
0.20 |
0.24 |
n.a |
| |
| Liquidity Ratios |
| Net Working Capital |
$780,131 |
$1,244,709 |
$1,726,229 |
n.a |
| Interest Coverage |
4.76 |
5.53 |
6.37 |
n.a |
| |
| Additional Ratios |
| Assets to Sales |
0.35 |
0.38 |
0.42 |
n.a |
| Current Debt/Total Assets |
17% |
15% |
14% |
n.a |
| Acid Test |
2.08 |
2.96 |
3.75 |
n.a |
| Sales/Net Worth |
65.56 |
10.31 |
5.78 |
n.a |
| Dividend Payout |
0.00 |
0.00 |
0.00 |
n.a |
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