Page 154 - Business Plans that Work A Guide for Small Business

Financial Plan: Telling Your Story in Numbers • 145

plan year is simple: Year one of the model contributes to the year of their
opening on the financial plan, year two of the model contributes to the year after
they were added to the financial plan, and so forth. Dan is talking about
company stores and
what a model store looks
like. However, Lazybones
Franchises gets revenues from both
c ompany stores and
f ranchise fees.
Each franchise contributes revenue to Lazybones in two ways: an initial start-up
franchise fee of $35,000 and 7 percent of their annual revenues. Each franchise
also contributes 1 percent of their revenue to an advertising fund, but since
this fund is separate from all other corporate operations, it is not visible in the
financial plan.
Exhibit 10.3 Corporate Revenue
Notice how this table
Overview breaks down the different
revenue lines. We see both
Month Year 1 Year 2 Year 3 Year 4 Year 5 laundry and storage for the
Revenue Syracuse and Wisconsin
stores and then store totals
Total number of 8 8 8 8 8 for the new company-owned
owned stores stores based upon historic
performance. Finally, the fran-
Total number of 0 5 15 35 60 chise totals are shown. At
f ranchises the top of the table, they list
the revenue drivers (number
Owned stores
of company-owned stores
SU and UW 120% 112% 109% 106% 103% and franchises by year). They
growth rate also show projected growth
rate of the existing Syracuse
Syracuse and Wisconsin stores (note
120 percent means that it
Laundry $433,880 $485,945 $529,681 $577,352 $629,313 will grow 20 percent more
Storage $219,241 $245,550 $267,650 $291.738 $317,995 than the previous year). As
we noted above, we’d prefer
Syracuse total $653,121 $731,495 $797,331 $869,090 $947,308 to see an explanation of
that growth rate to further
Wisconsin enhance the accuracy of
the projection. Breaking the
Laundry $330,910 $370,619 $403,975 $440,333 $479,963
revenues down by this level
Storage $275,731 $308,819 $336,613 $366,908 $399,929 of detail helps create more
accurate projections.
Wisconsin total $606,641 $679,438 $740,558 $807,241 $879,892
Boston $204,392 $371,440 $532,752 $709,266 $730,544
Colorado $204,392 $371,440 $532,752 $709,266 $730,544
Additional owned $364,631 $817,567 $1,485,760 $2,131,007 $2,837,065
stores
Owned store $2,033,177 $2,971,381 $4,120,687 $5,225,870 $6,125,353
c ontribution
Franchises
Franchise fees $0 $175,000 $350,000 $700,000 $8175,00
Franchise % $0 $31,905 $135,348 $400,699 $892,146
Franchise $0 $206,905 $485,348 $1,100,699 $1,767,146
c ontribution
Total revenue $2,033,177 $3,178,286 $4,574,531 $6,326,569 $7,891,599