using enjoy living company and business template. complete below. You will craft the heart of your financial projections by focusing on the Profit and Loss Statement projected over the next three years. Along with this, you will discuss the logic you used to estimate your sales (be sure to refer back to Section 4 of your business plan), and your expenses (the top five line items). Complete the Profit and Loss (section 6.1) of your business plan and the profit and loss assumption—section 6.5.1. You must justify your sales level by explaining the growth rate (number of customers times their average spending per visit and number of visits). Also justify your top five expenses. Use research to back up your numbers where appropriate (for example, likely rents based on commercial real estate leases in your area). Finally, you will craft your elevator pitch for your company and be prepared to record it and post it to the unit 10 Discussion boards. This “pitch” is created by entrepreneurs to help get potential investors excited or interested in their venture. Assignment checklist: Complete section 6.1 (Profit and Loss Statement) of your business plan outline Complete section 6.5.1 (Profit and Loss Assumption) of your business plan outline. Include justification for your sales figure, and explain the top five expenses. Write an elevator pitch that will be no longer than 60 seconds. No APA is required in this pitch. (Be prepared to record the pitch into a .WAV file in the next unit.)
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Financial Projection
The financial project for Enjoy Living was based on the key assumptions. The first assumption was that the company will make cash payments for all the services and withhold 10 % of the sales projected as an insurance reimbursement. The second assumption was that Enjoy Living will be operating on a strong and stable economy with minimal recession(Covello & Hazelgen, 2006). The third assumption was the medical insurance industry will not change in the near future. The fourth assumption was that the average variable cost will be 10 % of the monthly fixed cost. For Enjoy Living to break-even, it must provide 255 units of service per month or 3,010 units of service which translates to 894 patient visit annually.
Profit and Loss
| Year 1 | Year 2 | Year 3 | |
| Sales | $ 700,000.00 | $ 730,000.00 | $ 830,892.00 |
| Cost of Sales | $ 65,000.00 | $ 57,687.00 | $ 61,730.00 |
| Massage Therapists’ Commissions | $ 85,320.00 | $ 88,460.00 | $ 90,050.00 |
| Aestheticians’’ Commissions | $ 18,950.00 | $ 21,453.00 | $ 22,120.00 |
| Other Services Commissions | $ 17,260.00 | $ 15,380.00 | $ 18,450.00 |
| Total Cost of Sales | $ 186,530.00 | $ 182,980.00 | $ 192,350.00 |
| Gross Profit | $ 513,470.00 | $ 547,020.00 | $ 638,542.00 |
| OPERATING EXPENSES | |||
| Salary (Office & Overhead) | $ 255,430.00 | $ 260,480.00 | $ 281,920.00 |
| Payroll (taxes, etc.) | $ – | $ – | $ – |
| Outside Services | $ 12,000.00 | $ 13,000.00 | $ 14,000.00 |
| Supplies (Office & Operation) | $ 2,600.00 | $ 2,650.00 | $ 2,800.00 |
| Repairs & Maintenance | $ 6,850.00 | $ 7,340.00 | $ 8,050.00 |
| Advertising | $ 2,500.00 | $ 2,500.00 | $ 2,500.00 |
| Car, Delivery & Travel | $ 1,500.00 | $ 2,500.00 | $ 3,000.00 |
| Accounting & Legal | $ 6,480.00 | $ 7,039.00 | $ 7,500.00 |
| Rent | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 |
| Telephone | $ 1,500.00 | $ 1,500.00 | $ 1,500.00 |
| Utilities | $ 2,500.00 | $ 2,600.00 | $ 2,700.00 |
| Insurance | $ 1,500.00 | $ 1,500.00 | $ 1,500.00 |
| Taxes (Real Estate, etc.) | $ 6,500.00 | $ 7,000.00 | $ 7,500.00 |
| Interest | $ 2,500.00 | $ 2,700.00 | $ 2,900.00 |
| Depreciation | $ – | $ 100.00 | $ 1,000.00 |
| Other Expenses | $ 3,000.00 | $ 3,000.00 | $ 3,000.00 |
| TOTAL EXPENSES | $ 364,860.00 | $ 373,909.00 | $ 399,870.00 |
| NET PROFIT BEFORE TAXES | $ 148,610.00 | $ 173,111.00 | $ 238,672.00 |
| Income Taxes | $ 40,000.00 | $ 41,000.00 | $ 41,500.00 |
| NET PROFIT AFTER TAX | $ 108,610.00 | $ 132,111.00 | $ 197,172.00 |
Cash Flow
| Cash Flow | Pre-Startup | Year 1 | Year 2 | Year 3 |
| ESTIMATE | ||||
| Cash on Hand | $ 225,650.00 | $ 315,470.00 | $ 403,456.00 | $ 514,750.00 |
| CASH RECEIPTS | ||||
| Cash Sales | $ – | $ 700,000.00 | $ 730,000.00 | $ 830,892.00 |
| Collections from CR Accounts | $ – | $ 17,000.00 | $ 18,000.00 | $ 19,000.00 |
| Loan/Cash Injection | $189,560 | $ – | $ – | $ – |
| TOTAL CASH RECEIPTS | $ 189,560.00 | $ 717,000.00 | $ 748,000.00 | $ 849,892.00 |
| TOTAL CASH AVAILABLE | $ 415,210.00 | $ 1,032,470.00 | $ 1,151,456.00 | $ 1,364,642.00 |
| CASH PAID OUT | ||||
| Purchases | $ 6,400.00 | $ 5,378.00 | $ 5,293.00 | $ 5,178.00 |
| Gross Wages | $ 63,000.00 | $ 255,430.00 | $ 260,480.00 | $ 281,920.00 |
| Outside Services | $ 4,600.00 | $ 12,000.00 | $ 13,000.00 | $ 14,000.00 |
| Supplies | $ 12,000.00 | $ 2,600.00 | $ 2,650.00 | $ 2,800.00 |
| Repairs & Maintenance | $ 2,600.00 | $ 6,850.00 | $ 7,340.00 | $ 8,050.00 |
| Advertising | $ 4,900.00 | $ 2,500.00 | $ 2,500.00 | $ 2,500.00 |
| Car, Delivery & Travel | $ 2,500.00 | $ 1,500.00 | $ 2,500.00 | $ 3,000.00 |
| Accounting & Legal | $ 1,000.00 | $ 6,480.00 | $ 7,039.00 | $ 7,500.00 |
| Rent | $ 20,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 |
| Telephone | $ 2,500.00 | $ 1,500.00 | $ 1,500.00 | $ 1,500.00 |
| Utilities | $ 1,500.00 | $ 2,500.00 | $ 2,600.00 | $ 2,700.00 |
| Insurance | $ 3,500.00 | $ 1,500.00 | $ 1,500.00 | $ 1,500.00 |
| Taxes (Real Estate, etc.) | $ – | $ 6,500.00 | $ 7,000.00 | $ 7,500.00 |
| Interest | $ 6,500.00 | $ 2,500.00 | $ 2,700.00 | $ 2,900.00 |
| Other Expenses | $ 2,500.00 | $ 3,000.00 | $ 3,000.00 | $ 3,000.00 |
| SUBTOTAL | $ 133,500.00 | $ 370,238.00 | $ 379,102.00 | $ 404,048.00 |
| Loan Principal Payment | $ 7,200.00 | $ 7,200.00 | $ 7,200.00 | $ 7,200.00 |
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