Financial Projections, Start-up Information, and a Get-Started Phone Call
THREE YEARS OF FINANCIAL PROJECTIONS
Coming up with financial projections for the first few years of a business is one of the most valuable, yet difficult, tasks to tackle. This is especially true when writing up a business plan that will be presented to a bank for a loan approval. Banks and investors want very detailed financial plans but you, as a start-up, can only provide a best guess estimate of what you hope to obtain.
If you are anything like me, simply guessing won't work for you. Yes, you can have an idea of how many daycare dogs you can accommodate, how many luxury suites you'll have, how many kennels, but can you guess how often your facility will be at capacity? Can you closely estimate the percentage growth you'll have year over year for the first three years? What will your expenses be each month? How much can you expect to spend on payroll, utilities, cleaning supplies, or insurance? Having answers to these questions will dramatically improve the accuracy of your projections.
That's where I can help. I've created a Google sheet that automatically calculates revenue and expenses month by month for three years. Each month is calculated based on a percentage occupancy for that time period and each year reflects revenue growth from the prior year.
My daycare Pawtropolis has been opened for over 21 years. I used the financial data collected over those years to determine what percentages are spent, on average, on specific categories. Our reservation totals by month were used to calculate possible percentage capacity throughout the year. A five year period of growth was used to determine growth year over year for the projected period or three years.
By inputting what base services you plan to offer, along with capacity and price, you'll get an instant detailed report by month and by year for three years. You will also have the ability to input a known rent or loan payment amount allowing you to see how said payments will affect your cashflow. You'll have two options available to calculate how much owner salary you will be able to pay. With the first option, you can leave the box labeled "Minimum Required Monthly Owner Salary" blank. Doing so will allow the chart to calculate owner's salary based off of the percentage put in that reflects what is done at Pawtropolis. The second option would be used if you knew there was a minimum amount of salary you'd need each month in order to cover personal expenses. You would put that amount in the "Minimum Required Monthly Owner Salary" box to have the chart calculate how that monthly amount would affect cash flow each month.
Once you have the projections completed with your information and it is ready to be presented to a bank or investor, I will provide a letter explaining how the formulas were determined along with background on Pawtropolis. This will help validate the information being provided to them. I will first review your projections to confirm no formulas were changed and to catch any possible mistakes.
START-UP INFORMATION
Included with the three years of projections, you'll find a minimum of three additional Google sheet tabs (may add more over time) that include other useful start-up information. Currently included:
Start-up Costs
Here you'll find a list of items that need to be considered when calculating start up costs. It is formatted in a way that allows you to insert a company name that you may potentially buy from, the number of the item needed, and the cost.
Design Notes
I'll list miscellaneous notes regarding building design that will be helpful when making building decisions. I will include rooms and areas that I feel are necessary to have in a dog daycare and boarding facility.
Hours & Staff Needs
Here I layout a potential daily schedule for a daycare and boarding facility as well as example shift times for different positions. Though this information will need to be modified depending on your facility's open hours, it will still be helpful as you come up with your own daily plan.
GET STARTED PHONE CALL
After purchase, I will reach out via email to provide you the information needed to access your personal Google sheet. We will then schedule a phone call, FaceTime, or a Zoom meeting where I will review the tabs in Google sheets with you and spend an additional 30 minutes answering any start-up questions you may have. After this initial call, you may purchase additional "Let's Chat" calls whenever you like. These calls can be used to discuss any aspects of your project you may need help with. You may also be interested in upgrading to a mentoring package. If you do so, the cost of this Financial Projections Google sheet will be deducted from the price of the package you choose.
ADDITIONAL DETAILS REGARDING PURCHASE
Due to Google sheets being easily copied once shared, once purchased we are unable to offer any refunds. For this reason, if you have any questions prior to purchase feel free to reach out to me at amanda@pawtropolis.com.