HelenaFrazier Business_Plan_Template_(0412)

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) [email protected]

January 10, 2015


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


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


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.


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.


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.


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.


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


Accounts Payable

Accounts receivable





Financial projection


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


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:


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


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


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.


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.


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


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-


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


$ - $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

100.00 $

80.00


$ - $

100.00 $

100.00 $

150.00 $

150.00 $

200.00 $

275.00 $

350.00 $

200.00 $

100.00 $

150.00 $

100.00


$ - $

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


$ - $

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

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


F2. Forecasted Profit and Loss Statement


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


$ 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


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


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 $ -


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


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.


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


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


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.

Date post:	18-Jul-2015
Category:	Documents
Upload:	helena-frazier
View:	80 times
Download:	3 times