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Green Design Group, LLC
Projected Financials

DEVELOPMENT COSTS

Ongoing operations are to be financed by the design consulting fees generated by Green Design Group LLC. One hundred fifty thousand dollars ($150,000) in financing is sought to fund office personnel and marketing activities. Key office personnel includes a sales manager and production manager. Marketing activities include promotional materials, direct sales efforts and development costs of sample designs. Individual projects are explained in Current Business Development.

REVENUES

The Company projects revenues of $285,500 in 1997. Revenues increase to $2,875,000 by year three. Included in this projection are sales revenues from Tee-Shirt design and manufacturing which is explained in Current Business Development. (A detailed four-year projected income statement can be found in Appendix F.)

For the first three years, salaries and operating expenses are kept low to generate funds for growth and expansion. The business projects Earnings Before Interest and Taxes (EBIT) of $1,354,314 in year three, which is a net margin before taxes of 47%.

The largest expense other than employees is Marketing/Research and Development and Travel Expenses. It is anticipated in the start-up phase of the new business model that numerous proposals and expenses will be incurred in attempts to attract clients and accounts.

Financials including a Balance Sheet, Projected Income Statements and Projected Cash Flow Statements along with a Four-Year Projected Income Statement can be found in Appendices D, E, and F.

Industry Pricing Structure
As compared to a Traditional Branded Apparel Company

Traditional Branded Co.Branded Co. ClientRetail Chain ClientPromotional Client
Manufacturer's FOB cost (materials and labor)$20.00$20.00$20.00$20.00
Production Commission by DG.$1.25$3.60$6.66
Total FOB$21.25$23.60$26.66
Landed Duty Paid (approximate) (cost to branded company)$24.00$25.50$28.32$31.99
Wholesale Price(cost to retailer)$48.00$48.00$28.32$31.99
50% margins46% margins
Retail Price(cost to consumer before mark-downs)$96.00$96.00$56.64$0.00
50% margins 50% margins50% margins

Balance Sheet - April 1, 1997

Current Assets
Cash$46,139
Accounts Receivable$0
Prepaid and other$1,100
Total Current Assets$47,239
Fixed Assets at Fair Market Value
Computer Equipment$10,756
Computer Software$2,266
Office Equipment (Phones, Fax, Copier, etc.)$1,500
Office Furniture$1,586
Accumulated Depreciation($4,839)
Art Books 125 @ $45.00 each$5,625
Total Fixed Assets$16,894
Total Assets$64,133
Current Liabilities
Accounts Payable$1,848
Taxes Payable on 4/15/97$4,619
Total Current Liabilities$6,467
Shareholder Equity
Common Stock
Retained Earnings
Total Shareholder Equity$57,666
Total Liabilities and Equity$64,133

Projected Income Statement by Quarters for 1997

1st Quarter2nd Quarter3rd Quarter4th quarterTOTALS
Revenues
Consulting Fees (a)$41,500$27,500$68,750$41,250$179,000
Production Royalties/Commission$0$9,500$22,000$45,000$76,500
Product Sales (c)$0$0$0$25,000$25,000
Total Revenues$41,500$37,000$90,750$111,250$280,500
Expenses
General Office$9,500$12,000$15,000$15,000$51,500
Research and Development$1,500$5,500$5,500$5,500$18,000
Travel$3,500$6,500$7,500$11,000$28,500
Marketing Expenses$0$15,500$18,000$8,500$42,000
Misc. Expenses$500$500$500$500$2,000
COGS$0$0$0$12,500$12,500
Employees$4,800$32,000$38,500$38,500$113,800
Taxes and Govt. Fees$1,440$9,600$11,550$11,550$34,140
Commissions$0$2,500$0$2,500$5,000
Loan Payment$0$0$0$0$0
Total Expenses$21,240$84,100$96,550$105,550$307,440
EBIT per month$20,260($47,100)($5,800)$5,700($26,940)
(a) One client will renew for Fall 1998 design season, GDG will land two additional clients for Fall 1998 design season
(b) 1997 - 2nd qtr: Lanzera Production, 3rd qtr: Crable royalties, Apex royalties, 4th qtr: Crable royalties, Apex royalties
(c) 1997 – Tee-shirt and product sales for Holiday '97

Projected Income Statement by Quarters for 1998

1st Quarter2nd Quarter3rd Quarter4th quarterTOTALS
Revenues
Consulting Fees (a)$68,750$55,000$55,000$41,250$220,000
Production Royalties/Commis$20,000$20,000$85,000$25,000$150,000
Product Sales (c)$85,000$110,000$190,000$125,000$510,000
Total Revenues$173,760$185,000$330,000$191,250$880,000
Expenses
General Office$15,000$15,000$15,000$15,000$60,000
Research and Development$7,500$3,200$10,500$8,000$29,200
Travel$7,500$7,500$13,000$11,000$39,000
Marketing Expenses$12,500$5,500$15,000$12,000$45,000
Misc. Expenses$500$500$500$500$2,000
COGS$42,500$55,000$95,000$62,500$255,000
Employees$38,500$38,500$44,800$48,000$169,800
Taxes and Govt. Fees$11,550$11,550$13,440$14,400$50,940
Commissions$8,500$11,000$19,000$12,500$51,000
Loan Payment$0$0$0$0$0
Total Expenses$144,050 $147,750 $226,240 $183,900 $701,940
EBIT per month$29,700 $37,250 $103,760 $7,350 $178,060
(a) For Calendar Year 1998, GDG will have 4 seasonal design clients
(b) 1998 - 1st qtr: Apex royalties, 2nd qtr. Apex royalties, 3rd qtr: Crable royalties, Apex royalties, 4th qtr: Apex royalties
(c) 1998 - $500,000 in Product Sales

Projected Cash Flow Statement by Quarters for 1997 - 1998
Does not Include $150,000 Investment Funds

19971998
1st Quarter2nd Quarter3rd Quarter4th Quarter1st Quarter2nd Quarter3rd Quarter4th Quarter
Sources
Revenues$41,500$27,500$68,750$66,250$113,750$160,000$250,000$256,250
Cash From Principal$0$29,760$22,000$45,000$0$0$0$0
Investment$0$0$0$0$0$0$0$0
Outflows
General Office$9,500$12,000$15,000$15,000$15,000$15,000$15,000$15,000
Research and Development$1,500$5,500$5,500$5,500$7,500$3,200$10,500$8,000
Travel$3,500$6,500$7,500$11,000$7,500$7,500$13,000$11,000
Marketing Expenses$0$15,500$18,000$8,500$12,500$5,500$15,000$12,000
Misc. Expenses$500$500$500$500$500$500$500$500
COGS$0$0$12,500$42,500$55,000$95,000$62,500$110,000
Employees$4,800$32,000$38,500$38,500$38,500$38,500$44,800$48,000
Taxes and Govt. Fees$1,440$9,600$11,550$11,550$11,550$11,550$13,440$14,400
Commissions$0$2,500$0$2,500$8,500$11,000$19,000$12,500
Loan Payment$0$0$0$0$0$0$0$0
Total Outflows$21,240$84,100$109,050$135,550$156,550$187,750$193,740$231,400
Cash Position before Taxes$20,260($26,840)($18,300)($24,300)($42,800)($27,750)$56,260$24,850
Cumulative Cash Position$20,260($26,840)($45,140)($69,440)($112,240)($139,990)($83,730)($58,880)

Projected Cash Flow Statement by Quarters for 1997 - 1998
Includes $150,000 Investment Funds

19971998
1st Quarter2nd Quarter3rd Quarter4th Quarter1st Quarter2nd Quarter3rd Quarter4th Quarter
Sources
Revenues$41,500$27,500$68,750$66,250$113,750$160,000$250,000$256,250
Cash From Principal$0$29,760$22,000$45,000$0$0$0$0
Investment$0$150,000$0$0$0$0$0$0
Outflows
General Office$9,500$12,000$15,000$15,000$15,000$15,000$15,000$15,000
Research and Development$1,500$5,500$5,500$5,500$7,500$3,200$10,500$8,000
Travel$3,500$6,500$7,500$11,000$7,500$7,500$13,000$11,000
Marketing Expenses$0$15,500$18,000$8,500$12,500$5,500$15,000$12,000
Misc. Expenses$500$500$500$500$500$500$500$500
COGS$0$0$12,500$42,500$55,000$95,000$62,500$110,000
Employees$4,800$32,000$38,500$38,500$38,500$38,500$44,800$48,000
Taxes and Govt. Fees$1,440$9,600$11,550$11,550$11,550$11,550$13,440$14,400
Commissions$0$2,500$0$2,500$8,500$11,000$19,000$12,500
Loan Payment$0$0$0$0$0$0$0$0
Total Outflows$21,240$84,100$109,050$135,550$156,550$187,750$193,740$231,400
Cash Position before Taxes$20,260$123,160($18,300)($24,300)($42,800)($27,750)$56,260$24,850
Cumulative Cash Position$20,260$123,160$104,860$80,560$37,760$10,010$66,270$91,120

Projected Four Year Income Statement 1997 - 2000

1997199819992000
Revenues
Consulting Fees$179,000$220,000$218,875$525,000
Production Royalties/Commissions$76,500$150,000$450,000$950,000
Product Sales$25,000$510,000$950,000$1,400,000
Total Revenues$280,500$880,000$1,618,875$2,875,000
Expenses
General Office$51,500$60,000$66,000$72,600
Research and Development$18,000$29,200$29,200$32,120
Travel$28,500$39,000$45,000$65,000
Marketing Expenses$42,000$45,000$55,000$75,000
Misc. Expenses$2,000$2,000$5,500$6,500
COGS$12,500$255,000$475,000$700,000
Employees$113,800$169,800$255,000$350,000
Taxes and Govt. Fees$34,140$50,940$66,222$79,466
Commissions$5,000$51,000$95,000$140,000
Loan Payment$0$0$180,000$0
Total Expenses$307,440$701,940$1,271,922$1,520,686
EBIT per month($26,940)$178,060$346,953$1,354,314
Net Margin (before taxes)-9.60%20.23%21.43%47.11%

Green Design Group, LLC
Table of ContentsAppendices
1. Executive Summary
2. Company
3. Product & Services
4. Market
5. Sales & Marketing
6. Competitors
7. Management
8. Historical Financials
9. Projected Financials
Business Model
Industry Pricing
Balance Sheet
Projected Income Statements
Projected Cash Flow Statements
Projected 4 Year Income Statement
Resume & Business
© Green Design Group LLC. April 1,1997.