Post on 18-Jul-2015
transcript
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 1
Fleur de Lis Bookkeeping, Inc. Business PlanHelena B. FrazierOwner/Operator
123 Lundi Gras Ave.New Orleans, LA 70119
(504) 555-5555administration@fluerdelisbookkeeping.com
January 10, 2015
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 2
A.Executive Summary..................................................................................................................................................4
B.Company Summary..................................................................................................................................................5
C.Market Analysis........................................................................................................................................................7
D.Market Strategy........................................................................................................................................................8
D1: 4Ps. The pricing of services offered by Fleur de Lis Bookkeeping, Inc. will be competitive with industry
standards. Services/product includes:.........................................................................................................................8
D2: Price List- ..........................................................................................................................................................10
D3: Selling Strategy- The sales strategy for Fleur de Lis Bookkeeping, Inc. is to continue selling services to
existing customers while marketing to potential customers. This will require the company to offer referral
incentives. For example, $100 off a month’s service for a referral that results in an annual contracted directly for
referrals. All existing customers must be made aware of the new incentives, and will be contact. This will be
accomplished via email and inserts in billing documents. Additionally, Frazier will be responsible for cold calls,
presenting commercials for television and radio, and engaging in business expo events........................................11
D4: Sales Forecast- Below is a table of projected sales for the first year. If the company is able to expand into the
Texas market, sales are expected to double by the end of the year. With an annual contract, revenues are can be
reasonably predicted. North Georgia’s tourism industry stays steady during the winter months with attractions
like cabins in the Appalachian Mountains, while Louisiana, Texas and Florida have an increase during the
summer months. It is important to diversify the areas where services are available so that the Company can offset
potential reductions in revenue due to seasonal changes..........................................................................................11
The fluctuations in sales/revenues are due to the seasonal nature of the tourism industry. The chart below also
shows the expectation of a consistent increase in larger client acquisition. Individual services are expected to
produce less than packaged services as those services can be purchased as a one-time service or with an annual
contract. The packaged services are priced competitively and require an annual contract. Packaged services will
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 3
be encouraged and promoted to potential clients through aggressive advertising and marketing.
..................................................................................................................................................................................11
E.Implementation Strategy........................................................................................................................................12
E3. Control Plan- Below is a more in depth explanation of the company’s milestones and the basis for completion
measurement.............................................................................................................................................................15
F.Financial Statements and Projections....................................................................................................................16
F1. Revenue and Cost Estimate- ..............................................................................................................................16
F2. Forecasted Profit and Loss Statement
..................................................................................................................................................................................20
F3. Forecasted Balance Sheet- .................................................................................................................................23
G1. Financial Projections..........................................................................................................................................24
G1a- Breakeven Point- ........................................................................................................................................25
G1b-Financial Position:........................................................................................................................................26
G1c-Capital/Investment Needs: ..........................................................................................................................26
References....................................................................................................................................................................27
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 4
A. Executive Summary
A1. Business Identification: Fleur de Lis Bookkeeping, Inc. is a for profit corporation, owned
and operated by Helena Frazier, CPA in New Orleans, Louisiana. The company will specialize in
bookkeeping services for large tourism industries in the southeastern region of the United States.
A2. Mission, Goals and Objectives: The Company is capable of servicing the states of:
Louisiana, Mississippi, Alabama, Georgia, Tennessee, and Florida at minimal cost. However, Fleur de
Lis, Inc.’s mission is to expand into the western market by servicing the state of Texas. This will require
an investment in personnel and marketing. This business plan describes the set objectives for growth and
business expansion over the next three years.
A3. Keys to Success: The keys to success for this business are accessibility, flexibility, and
affordability. Fleur de Lis, Inc. offers easy to use interactive software that is directed towards the tourism
industries. Clients can enter raw data that is automatically be transmitted to Fleur de Lis, Inc. In turn,
Fleur de Lis, Inc. completes all of the basic bookkeeping essentials for the client (I.e. recording sales,
earned revenue, payment of taxes, earned interest, payroll and other operational expenses, etc.). The
company also offers customer service availability seven days a week for client convenience. Most
importantly, Fleur de Lis, Inc. understands the fickle and often seasonal aspect of the tourism markets.
Therefore, the company offers flexible billing and payment options on a per client basis to meet the
client’s needs. With package plans and a la carte bookkeeping options, the client does not have to pay for
unneeded services. The effect will be sales doubling over three years, as two full-time bookkeepers work
under the direction of a licensed CPA to assist clients while using the company’s services.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 5
B. Company Summary
The newly established Fleur de Lis Bookkeeping, Inc., established by Helena Frazier, is a
three person CPA firm which provides bookkeeping services to companies in the tourism industries. Most
of the company’s clients are small businesses that gross under $1 million in revenue annually. The
company has recently contracted two major clients who are based in New Orleans, Louisiana and Atlanta,
Georgia. Fleur de Lis, Inc.’s plan to expand into the Texas region will increase revenues substantially.
B1. Industry History: Fleur de Lis Bookkeeping, Inc. will be operating within the tourism
industry. The tourism industry provides a substantial amount of revenue for the individual states with in
the United States of America. Some of the fastest growing economies due to tourism are along the Gulf
Coast. Travel, events, sports, recreation, business and other attractions bring large amounts of people to
those areas on a regular basis. More than half of the state of Louisiana’s total revenue from tourism has
come from visitors to the state (Louisiana Research, 2015), based on information from the Louisiana
Office of Tourism. In Texas, during 2013, an estimated 233.5 million domestic visitors helped fuel the
tourism economy (Official Texas Economic Development Corporation, 2014).
B2. Legal Form of Ownership: Helena Frazier is the founder and owner of
Fleur de Lis, Inc., S-Corporation.
B3. Location and Facilities: Fleur de Lis Bookkeeping, Inc. is based in New Orleans,
Louisiana. It operates out of a rented office space in the city business district of New Orleans. All services
are performed via the company’s website, thereby limiting travel and customer face time.
Communications are held via internet, phone, facsimile, and audiovisual methods. The company does not
have any major concerns regarding the legal or regulatory issues in reference to the location/ facility. The
city business district is zoned for commercial business operation. However, because clients are from
different cities and states, Fleur de Lis Bookkeeping, Inc. must diligently ensure that each client’s
financial documentation complies with the client’s city and state regulations.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 6
If the company is able to expand into the Texas market, the company will plan to change its
headquarters and incorporate under a different name in Texas. Texas has no corporate income tax, and its
sales tax is 2.72% lower than the 9% sales tax of Louisiana (Fool, 2015).
B4: Management Structure: Helena Frazier, CPA is the sole manager of Fleur de Lis
Bookkeeping, Inc. She oversees the work of one full-time bookkeeper. This bookkeeper will
eventually act as assistant management. This person will be in a post-graduate accounting
program with a minimum of five years bookkeeping experience. This manager will work closely
with Frazier in ensuring accuracy and regulatory compliance for client reports. This manager will
work directly from the office, checking in with Frazier via email, telephone to give material
updates on specific client situations.
Once additional bookkeepers are hired, this manager will be present for all training
provided by Frazier so that s/he will be aware of his or her requirements and responsibilities.
The manager will be responsible for auditing the other bookkeepers’ work and maintaining
accuracy. Bookkeepers are to report any questions, problems, or concerns directly to the
manager. If the manager cannot determine a solution, Frazier should be contacted for
assistance. Frazier will also review samples of work from the bookkeepers and the manager at
least three times a month to ensure accuracy.
Personnel Plan: The bookkeeping manager’s role can expand as the company expands, if the
bookkeeping manger is willing to become a CPA. Employee benefits include up to $5,000 in tuition
reimbursement, and are only provided for management after two years of full time employment. This
incentive is a strategy to retain this key employee.
Direct cost wages for bookkeepers’ billable hours are listed in the Sales Forecast. We will start
with one bookkeeper and one bookkeeper manager at the start of 2015. The second and third bookkeepers
will be added towards the middle of 2016 and 2017 respectively, based on client demand of services.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 7
B5. Products and Service: Clients will have access to the company’s website, which will allow
them to input raw data. Fleur de Lis Bookkeeping, Inc. converts the client’s data into the appropriate
financial documents. Services include: recording sales, earned revenue, payment of taxes, earned interest,
payroll and other operational expenses, loans and investments. All of these services can be purchased as a
package for a discounted rate, or individually at a higher rate.
Services offered by Fleur de Lis Bookkeeping, Inc. includes:
Payroll processing
Accounts Payable
Accounts receivable
Sales Tax processing
Bank reconciliations
Inventory management
Financial statement preparation
Financial projection
Credit Card processing Set-up
Other financial reporting
C. Market Analysis
C1: Target Market- Fleur de Lis Bookkeeping, Inc. is in a unique position in the industry. The
majority of our services are virtually based, allowing the client a lot of flexibility. We take away the need
for the client to hire full-time bookkeeping or payroll staff in office. We also offer the added advantage
and security of being a third party. We can act as an additional financial control for the client. The client
also has the advantage of only using the services that are relevant to their company. Therefore, we can
serve small businesses (grossing under $1 million a year) as well as large businesses.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 8
Our target market is mid-sized companies. These companies are in the growth phase. They are
focusing on marketing and advertising. Outsourcing their bookkeeping allows them to allocate more
resources to that area. Our goal is to grow with those companies.
C2: Industry Analysis - Fleur de Lis Bookkeeping, Inc. will be operating in the tourism
industries. The tourism industry provides a substantial amount of revenue in the states where Fleur de Lis
Bookkeeping, Inc. is operating. According to the Louisiana Office of Tourism, the tourism industry in
Louisiana alone generated $807 million in tax revenues in 2013 (Louisiana Research, 2015). Texas
generated $51.8 billion in 2009 and $67 billion in 2013, based on the Overview of the Texas Economy
that is published by the Office of the Governor Economic Development and Tourism division (Official
Texas Economic Development Corporation, 2015). Based on these numbers, there are a lot of businesses
that could use the specialized services of our company to ensure that their businesses are operating
efficiently and within compliance to their respective states. These figures also represent the growing
nature of the industry and the opportunity for major market expansion.
C3: Competitive Analysis- Currently, Fleur de Lis Bookkeeping, Inc. experiences its greatest
competition from do it yourself software packages such as QuickBooks, Peachtree, and guided tax
preparation software such as H and R Block and TurboTax. The company also faces competition from
larger Fortune 500 companies like Ernst and Young. In smaller towns, locally owned businesses are can
pose a threat. Potential clients may only want to conduct business with companies that are locally owned.
The key to overcoming these obstacles will be in marketing and education. Fleur de Lis Bookkeeping,
Inc.’s advantage is that it combines the ease of do- it-yourself accounting with reliability of accuracy that
can be gained from a fortune 500 at a competitive price.
D. Market Strategy
D1: 4Ps. The pricing of services offered by Fleur de Lis Bookkeeping, Inc. will
be competitive with industry standards. Services/product includes:
Payroll processing
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 9
Accounts Payable
Accounts receivable
Sales Tax processing
Bank reconciliations
Inventory management
Financial statement preparation
Financial projection
Credit Card processing Set-up
Other financial reporting (determined by client needs)
Promotion will include:
Radio -(focus is on News, Talk Radio, Christian radio, and Hispanic Radio)
Internet –(Direct emails to potential customers)
Social Media – (Face Book, LinkedIn, Twitter, Instagram, etc.)
Cold Calls –(Calling local businesses through the phone book asking if it is ok to email
or fax information)
Television Commercials –(Focus on cable network television)
Word of Mouth –(Positive customer reviews)
Business conventions – (Set up a booth during business expos that showcase the
company’s services.)
Distribution is web-based. Customers input raw data into the company’s secure user site.
Information can be input manually or uploaded as pdf, Excel, or Word documents. Documents
can also be faxed and saved into the client’s portal. Once the information is received, our
company will create the necessary documents or forms. The completed project will be uploaded
to the customer’s site in a locked form for review. Once the customer is satisfied, they will click
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 10
on a button authorizing their agreement of the service fulfilled. If the customer’s account does
not have any past due balances, the forms will be released in their portal for downloading and
printing. A hard copy will also be mailed to the client for their convenience.
If the client has any questions, concerns, or comments: video chat, email, telephone, and
fax are all optional forms of communication.
D2: Price List-
A la carte pricing:
Packages:
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 11
Custom packages also available based on client needs.
Pricing is based on an annual contract, but payments can be manipulated to accommodate
seasonal companies.
D3: Selling Strategy- The sales strategy for Fleur de Lis Bookkeeping, Inc. is to continue
selling services to existing customers while marketing to potential customers. This will require
the company to offer referral incentives. For example, $100 off a month’s service for a referral
that results in an annual contracted directly for referrals. All existing customers must be made
aware of the new incentives, and will be contact. This will be accomplished via email and inserts
in billing documents. Additionally, Frazier will be responsible for cold calls, presenting
commercials for television and radio, and engaging in business expo events.
The result of this initiative is to obtain at least two clients a month within the first year. Fleur de
Lis, Bookkeeping, Inc. has a goal of servicing at least four companies under an annual contract in Texas
by the end of the fiscal year, as the tourism market is growing and there are plenty of opportunities to
acquire new business.
D4: Sales Forecast- Below is a table of projected sales for the first year. If the
company is able to expand into the Texas market, sales are expected to double by the end
of the year. With an annual contract, revenues are can be reasonably predicted. North
Georgia’s tourism industry stays steady during the winter months with attractions like
cabins in the Appalachian Mountains, while Louisiana, Texas and Florida have an
increase during the summer months. It is important to diversify the areas where services
are available so that the Company can offset potential reductions in revenue due to
seasonal changes.
The fluctuations in sales/revenues are due to the seasonal nature of the tourism
industry. The chart below also shows the expectation of a consistent increase in larger
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 12
client acquisition. Individual services are expected to produce less than packaged services
as those services can be purchased as a one-time service or with an annual contract. The
packaged services are priced competitively and require an annual contract. Packaged
services will be encouraged and promoted to potential clients through aggressive
advertising and marketing.
E. Implementation Strategy
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 13
E1. Overall Strategy- Fleur de Lis Bookkeeping, Inc.’s goal is expand business to include the
Texas market, namely the Hispanic diaspora, in the tourism industry. That is our target market within the
tourism industry. This is also what will make Fleur de Lis Bookkeeping, Inc. unique and competitive in
the bookkeeping industry.
The company’s strengths are that it is very convenient by offering remote services. It has a great
opportunity to tap into a subsection of the tourism industry by providing services to the Hispanic division
of tourism in Texas. Do it yourself software and larger accounting and bookkeeping companies pose a
threat to the company. Fleur de Lis Bookkeeping, Inc. plans to address this issue by offering competitive
pricing, and easy to use web-based system, and personal support and guidance for potential clients. The
company’s weakness is that it is new. Through excellent service and aggressive advertising and
marketing, the company will make a reputable name for itself.
E2. Implementation- The implementation strategy to increase its personnel and expand into the
Texas market requires four key actions:
• Increase advertising and marketing for the company to engage new business
o Focus on the Latino demographic in Texas via television and radio by advertising
in Spanish
• Initiate a client referral program
• Complete training regarding unusual laws in Texas that may affect completion of services
in that market
• Require that staff working on projects in the Texas is bi-lingual in English and Spanish.
These key actions help the company to be successful. This marketing plan supports the business
goal of expanding into the Texas market by running advertisements on the radio and on television in both
English and Spanish, we will be able to reach a demographic that is often overlooked but is a large part of
the Texas tourism industry.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 14
The estimated budget for this plan implementation is approximately $22,000. This is based on an
annual salary for a bilingual bookkeeper at a rate of $12/hour plus applicable business taxes that the
company will need to pay on their behalf. It also includes the cost for marketing and advertising (How
much does a Bookkeeper Cost?, 2015). The average cost to have a radio advertisement run for three
months is $4,000 for the quarter. It is a flat rate of $3,500 to play a local television commercial on the
sister network to Telemundo for six months after 7pm.
The hard dates/milestones for the implementation of this plan are as follows:
January 20, 2015 –Complete the PowerPoint/Voiceover commercial for the local television
station. The audio can be used for the radio station
February 2, 2015 –Initiate customer referral program
February 2, 2015 –Begin running the Commercial and Television ads
February 9, 2015 –Begin interviewing for bilingual bookkeeper
March 2, 2015 –Complete training with all employees on the new regulations and expectations
for work completed on Texas area assignments
Fleur de Lis Bookkeeping, Inc.’s goal is to begin working on projects in the Texas market by
March. The company plans acquire at least six clients in the Texas market by the end of 2015 with
aggressive marketing and advertising. Throughout the year, Fleur de Lis Bookkeeping, Inc. will make an
effort to participate in community events while promoting the company. Fleur de Lis Bookkeeping, Inc.
will partner with new clients in sponsoring food drives, back-to-school “school supply” giveaways, and
other charitable acts. Frazier and the Bookkeeping manager will be expected to make a physical
appearance at a charity event at least twice a year.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 15
E3. Control Plan- Below is a more in depth explanation of the company’s
milestones and the basis for completion measurement.
Milestone Start Date End Date Budget Manager Department
Develop TV Commercial/Radio Ad 1/20/2015 2/2/2015 $500 Frazier Marketing
Run TV Commercial/ Radio Ad 2/2/2015 12/30/2015 $8,000 Frazier Marketing
Develop New Brochures 1/20/2015 2/2/2015 $100 Frazier Marketing
Print New Brochures 2/2/2015 3/2/2015 $500 Frazier Marketing
Promotion to Clients 2/2/2015 12/30/2015 $100 Frazier Sales
Search Engine Marketing 2/2/2015 12/30/2015 $500 Frazier Marketing
Interview bilingual Bookkeeper 2/9/2015 2/28/2015 $100 FrazierHuman
ResourcesHire bilingual Bookkeeper 3/2/2015 3/2/2015 $12,000 Frazier AccountingTexas market introduction training
3/2/2015 3/2/2015 $100 FrazierHuman
Resources
Totals $21,900
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 16
To implement the milestones listed, Helena Frazier will create and promote the necessary documents and media needed. Once the company reaches a profit of $100,000 annually, Fleur de Lis Bookkeeping, Inc. will implore the services of a marketing service. The total amount of these costs will be incurred throughout 2015. However, the radio and television services paid for during 2015 will carry over into February 2016 as they will be entered into as annual contracts.
F. Financial Statements and Projections
F1. Revenue and Cost Estimate-
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 17
Revenue & Expenses January February March April May June July August September October November December
Sales Revenue
Payroll processing $
200.00 $
400.00 $
450.00 $
450.00 $
600.00 $
600.00 $
850.00 $
850.00 $
900.00 $
750.00 $
600.00 $
350.00
Accounts Payable $
100.00 $
200.00 $
225.00 $
225.00 $
300.00 $
300.00 $
425.00 $
425.00 $
450.00 $
325.00 $
300.00 $
125.00
Accounts Receivable $
250.00 $
300.00 $
300.00 $
300.00 $
350.00 $
400.00 $
400.00 $
450.00 $
450.00 $
300.00 $
300.00 $
200.00
Sales Tax processing
$ - $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
80.00
Bank reconciliations
$ - $
100.00 $
100.00 $
150.00 $
150.00 $
200.00 $
275.00 $
350.00 $
200.00 $
100.00 $
150.00 $
100.00
Inventory management
$ - $
100.00 $
150.00 $
200.00 $
300.00 $
300.00 $
350.00 $
350.00 $
300.00 $
300.00 $
250.00 $
200.00
Financial statement preparation $
75.00 $
75.00 $
75.00 $
100.00 $ - $ - $ - $
75.00 $
50.00 $
50.00 $
75.00 $
50.00
Financial projection $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00
Credit Card processing Set-up
$ - $
150.00 $
100.00 $
75.00 $ - $
150.00 $
75.00 $
75.00 $ - $
100.00 $ -
Other financial reporting $
75.00 $ - $ - $ - $ - $ - $ - $
150.00 $
150.00 $
100.00 $ - $ -
Package #1 -$200/mo annually $
200.00 $
200.00 $
200.00 $
400.00 $
400.00 $
600.00 $
600.00 $
800.00 $
800.00 $
1,000.00 $
1,000.00 $
800.00
Package #2 -$500/mo annually
$ - $ - $ - $
500.00 $
500.00 $
500.00 $
500.00 $
1,000.00 $
1,500.00 $
1,500.00 $
1,500.00 $
2,000.00
Total Sales Revenue $
1,000.00 $
1,575.00 $
1,850.00 $
2,625.00 $
2,875.00 $
3,100.00 $
3,750.00 $
4,725.00 $
5,075.00 $
4,625.00 $
4,475.00 $
4,005.00 $ 39,680.00
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 18
Other Income: Start Up Investment
$ 30,000.00
Gross Profit
$ 32,000.00 $ 2,750.00 $ 3,250.00 $ 4,800.00 $ 5,150.00 $ 5,600.00 $ 6,650.00 $ 8,600.00 $ 9,250.00 $ 8,500.00 $ 8,350.00 $ 7,660.00 $ 102,560.00
Operating Expenses
Sales and Marketing
Advertising -Television
$ 4,250.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,250.00
Advertising -Radio
$ 4,250.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,250.00
Direct marketing
$ 1,200.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,200.00 $ - $ 2,400.00
Wages and salaries
$ 2,200.00 $ 2,200.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 38,400.00
Outside services
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Supplies
$ 500.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 200.00 $ 100.00 $ 100.00 $ 150.00 $ 100.00 $ 100.00 $ 1,750.00
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 19
Meals and entertainment
$ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Rent
$ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 4,800.00
Telephone
$ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 2,400.00
Utilities
$ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Depreciation
$ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 600.00
Insurance
$ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 1,800.00
Repairs and maintenance
$ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Total Operating Expenses
$ 13,500.00 $ 3,400.00 $ 4,600.00 $ 4,600.00 $ 4,600.00 $ 4,600.00 $ 4,700.00 $ 4,600.00 $ 4,600.00 $ 4,650.00 $ 5,800.00 $ 4,600.00 $ 64,250.00
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 20
F2. Forecasted Profit and Loss Statement
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 21
Revenue & Expenses January February March April May June July August September October November December
Sales Revenue
Payroll processing $
200.00 $
400.00 $
450.00 $
450.00 $
600.00 $
600.00 $
850.00 $
850.00 $
900.00 $
750.00 $
600.00 $
350.00
Accounts Payable $
100.00 $
200.00 $
225.00 $
225.00 $
300.00 $
300.00 $
425.00 $
425.00 $
450.00 $
325.00 $
300.00 $
125.00
Accounts Receivable $
250.00 $
300.00 $
300.00 $
300.00 $
350.00 $
400.00 $
400.00 $
450.00 $
450.00 $
300.00 $
300.00 $
200.00
Sales Tax processing $ -
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 100.00
$ 80.00
Bank reconciliations $ -
$ 100.00
$ 100.00
$ 150.00
$ 150.00
$ 200.00
$ 275.00
$ 350.00
$ 200.00
$ 100.00
$ 150.00
$ 100.00
Inventory management $ -
$ 100.00
$ 150.00
$ 200.00
$ 300.00
$ 300.00
$ 350.00
$ 350.00
$ 300.00
$ 300.00
$ 250.00
$ 200.00
Financial statement preparation
$ 75.00
$ 75.00
$ 75.00
$ 100.00 $ - $ - $ -
$ 75.00
$ 50.00
$ 50.00
$ 75.00
$ 50.00
Financial projection $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00 $
100.00
Credit Card processing Set-up $ -
$ 150.00
$ 100.00
$ 75.00 $ -
$ 150.00
$ 75.00
$ 75.00 $ -
$ 100.00 $ -
Other financial reporting $
75.00 $ - $ - $ - $ - $ - $ - $
150.00 $
150.00 $
100.00 $ - $ -
Package #1 -$200/mo annually $
200.00 $
200.00 $
200.00 $
400.00 $
400.00 $
600.00 $
600.00 $
800.00 $
800.00 $
1,000.00 $
1,000.00 $
800.00
Package #2 -$500/mo annually $ - $ - $ -
$ 500.00
$ 500.00
$ 500.00
$ 500.00
$ 1,000.00
$ 1,500.00
$ 1,500.00
$ 1,500.00
$ 2,000.00
Total Sales Revenue $
1,000.00 $
1,575.00 $
1,850.00 $
2,625.00 $
2,875.00 $
3,100.00 $
3,750.00 $
4,725.00 $
5,075.00 $
4,625.00 $
4,475.00 $
4,005.00 $ 39,680.00
Other Income: Start Up Investment
$ 30,000.00
Gross Profit $ 32,000.00 $ 2,750.00 $ 3,250.00 $ 4,800.00 $ 5,150.00 $ 5,600.00 $ 6,650.00 $ 8,600.00 $ 9,250.00 $ 8,500.00 $ 8,350.00 $ 7,660.00 $ 102,560.00
Operating Expenses
Sales and Marketing
Advertising -Television $ 4,250.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,250.00
Advertising -Radio $ 4,250.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,250.00
Direct marketing $ 1,200.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,200.00 $ - $ 2,400.00
Wages and salaries $ 2,200.00 $ 2,200.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 3,400.00 $ 38,400.00
Outside services $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ -
Supplies $ 500.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 200.00 $ 100.00 $ 100.00 $ 150.00 $ 100.00 $ 100.00 $ 1,750.00
Meals and entertainment $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Rent $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 4,800.00
Telephone $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 2,400.00
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 22
Utilities $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Depreciation $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 600.00
Insurance $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 1,800.00
Repairs and maintenance $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 1,200.00
Total Operating Expenses $ 13,500.00 $ 3,400.00 $ 4,600.00 $ 4,600.00 $ 4,600.00 $ 4,600.00 $ 4,700.00 $ 4,600.00 $ 4,600.00 $ 4,650.00 $ 5,800.00 $ 4,600.00 $ 64,250.00
Taxes
Income taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,536.00 $ 1,536.00
Payroll taxes $ 400.00 $ 400.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 7,600.00
Real estate taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ -
Total Taxes $ 400.00 $ 400.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 680.00 $ 2,216.00 $ 9,136.00
Net Profit $ 18,100.00 $ (1,050.00) $ (2,030.00) $ (480.00) $ (130.00) $ 320.00 $ 1,270.00 $ 3,320.00 $ 3,970.00 $ 3,170.00 $ 1,870.00 $ 844.00 $ 29,174.00
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 23
Fleur de Lis Bookkeeping, Inc. will initiate with a startup investment of $30,000 from Helena
Frazier. Without additional financing, the company plans to operate at a loss for approximately four
months. This is based on the company’s anticipated revenues and expenses. However, because of the
startup investment, the company will not necessarily lose any money during this time.
The company plans to make almost $24,000 by the end of its first year, paying taxes in the
amount of approximately $960-$1,000. Also, as an S Corporation in Louisiana, the net income will be
taxed at a rate of 5% (Steingold, 2015). This amount will increase as the company’s revenue increases.
Fleur de Lis Bookkeeping, Inc. essentially a pass thru entity at this time, and Frazier will pay personal
taxes based on the company’s revenues. This is another reason why moving incorporation as well as
business to Texas is desirable.
F3. Forecasted Balance Sheet-
Projected Balance SheetAssetsCurrent assets:
Cash $ -
Investments $ 30,000.00
Accounts receivable $ 72,560.00
Total current assets $ 102,560.00
Fixed assets:Property and equipment $ - Leasehold improvements $ - Equity and other investments $ - Less accumulated depreciation $ - Total fixed assets $ -
Other assets:Goodwill $ - Total other assets $ -
Total assets $102,560.00 Liabilities and owner's equityCurrent liabilities:Accounts payable $ 8,400.00 Accrued wages $ 38,400.00 Income taxes payable $ 1,536.00 Unearned revenue $ -
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 24
Other $ 18,450.00 Total current liabilities $ 66,786.00
Long-term liabilities:Mortgage payable $ 4,800.00 Insurance $ 1,800.00 Total long-term liabilities $ 6,600.00
Owner's equity:Investment capital $ (30,000.00)Accumulated retained earnings $ 29,174.00 Total owner's equity $ (826.00)
Balance $ 30,000.00
G1. Financial Projections
Fleur de Lis Bookkeeping, Inc. is expected to make a profit at the end of its first year.
This is based on the assumption that Helena Frazier will contribute $30,000 of her own money
towards the startup costs. Revenue is anticipated based on market trends and the historical
information gathered from acquiring the Company’s first two clients. The Company plans to see
a steady increase in new clients purchasing package plans with an annual contract. Package #1
is expected to sell at a higher rate than Package #2, as the Company’s target market are
growing mid-sized companies. In the process, we anticipate that as the clients that have opted
for Package #1 continue to grow their business, Package #2 will be of a greater benefit.
Thereby, we will be able to grow with our clients.
Regarding costs, the majority of the expenses incurred will be in the startup phase.
Advertising and marketing will require the most funds. Wages and salaries are the next highest
expense. As the Company retains new clients, additional staff will be necessary to perform
services. Hence, the increase in fixed costs in March. The goal is to add two new bookkeepers
over the course of three years. Based on the financials provided, only one new bookkeeper will
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 25
be added during the year. This bookkeeper is expected to be bilingual and assist in growing the
Company in the Texas market.
Taxes are based on estimated revenue and can change accordingly. As an S-Corporation,
Fleur de Lis Bookkeeping, Inc. is not subject to state income tax, but will need to be prepared to
pay large incorporation fees. Overall, the Company will see a declining loss from February thru
May. As the tourism season picks up, the Company will also see an increase in clients. The
increase in revenue will off-set the increase in wages and salaries expense. By the end of the
year, Fleur de Lis Bookkeeping, Inc. is expected to have a net profit of approximately $29,174.
The projected balance sheet indicates that Frazier will take a loss on her investment
during the first year of operation, but the Company is expected to recoup this loss by year two.
Frazier is the majority owner and operator for the Company, and will not withdraw cash for the
first two years. Any profits made will be retained to build equity in the Company and repay any
loans or financial investments on behalf of the Company.
G1a- Breakeven Point-
Our monthly revenue break-even is based on the fixed costs of running the current business. The
increased marketing activity, legal expenses, insurance, payroll, benefits, and other expenses for the new
bookkeeper and entry into the Texas market drives this break-even point higher. Please see the chart
below.
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 26
G1b-Financial Position:
The estimated financial position of Fleur de Lis Bookkeeping, Inc. at the end of the first year is a
net profit of $29,174. This is based on the assumption of fluctuating sales due to the seasonal nature of the
tourism industry. Although the company ends the year with a net profit, this is due to the loss in capital
incurred by Frazier from her initial $30,000 investment. The Company will need additional financing to
offset the loss that the Company anticipates throughout the first quarter due to startup and expansion
costs.
G1c-Capital/Investment Needs:
In order for Fleur de Lis Bookkeeping, Inc. to grow and expand into the Texas market, it will
need additional funding. Although Frazier is contributing $30,000 to the startup of the Company, it will
need an additional estimated $7,000 in capital/investment to cover the net loss during the months of
February thru May, and the equipment and legal expenses associated with expanding into the Texas
market. Approximately $3,690 will be used to offset the loss during February thru May, so that the
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 27
Company can breakeven. The remaining balance of $3,310 will be used for legal fees, trademarks,
equipment, and other startup costs associated with the business.
Explanation Cost
Net loss –(February) $ 1,050.00
Net loss –(March) $ 2,030.00
Net loss –(April) $ 480.00
Net loss –(May) $ 130.00
Incorporation $ 400.00
Trademark $ 600.00
Computer & Electronics $ 2,310.00
Total $ 7,000.00
In conclusion, with an investment of only $7,000, Fleur de Lis Bookkeeping, Inc. has the
potential to break into a relatively untapped market. Over the next three years, revenues are expected to
increase tremendously. Frazier and current staff are dedicated to the success of this Company and of its
potential clients. This is an opportunity to reach an overlooked demographic and obtain a stable amount
of market share and the potential to receive great returns on the investment.
References
Student ID 000341242 Frazier Business Capstone Business plan Version 1 page 28
Doe, J. P. (2011, 10 10). www.wgu.edu. Retrieved from Student Template in APA for Business Plan:
http://www.wgu.edu
Fool, Dan Dzombak The Motley. "These States Have No Income Tax." USA Today. Gannett, 26
Apr. 2014. Web. 11 Jan. 2015.
"How Much Does a Bookkeeper Cost? - CostHelper.com." CostHelper. Cost Helper, 2014. Web.
12 Jan. 2015.
"Louisiana Research | Louisiana Office of Tourism." Louisiana Research. Louisiana Office of
Tourism, 2014. Web. 12 Jan. 2015.
"Official Texas Economic Development Corporation." Official Texas Economic Development
Corporation. Office of the Governor Economic Development & Tourism, Sept. 2014.
Web. 12 Jan. 2015.
Steingold, David M. "Louisiana State Business Income Tax | Nolo.com." Nolo.com. NOLO Law
for All, Jan. 2013. Web. 12 Jan. 2015.