Clothing Store Financial Plan

Key Revenue & Costs

The revenue drivers for Lisa Jade Fine Clothing will be the merchandise they carry and sell at their boutique store. They will carry clothing for young women, young men, tweens, and children. They will also carry accessories for young ladies such as purses, wallets, sunglasses, and socks and hose.

The cost drivers will be the cost of procuring their clothing from a local factory that will source the fabric and manufacture the clothing. The net cost will be 20% from what they will price these clothing items. Other cost drivers are the cost to procure accessories and select clothing from other warehouses and overhead expenses such as rent, utilities, and payroll costs.

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Funding Requirements and Use of Funds

Lisa Jade Fine Clothing is seeking $150,000 in debt financing to open its boutique retail location in New Haven, Connecticut. The funding will be dedicated for leasehold improvements, design, working capital, and opening inventory. The breakout of the funding is below:

Store design/build: $50,000
Opening inventory: $75,000
Working capital: $25,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

Number of Customers Per Day: 30
Average Item Cost: $20.50
Average Ticket per Customer: $47.50
Annual Lease: $30,000

Financial Projections

Income Statement

	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$1,080,000	$2,472,768	$2,830,825	$3,240,728	$3,709,986
Total Expenses	$962,000	$1,539,107	$1,719,742	$1,901,321	$2,112,641
EBITDA	$118,000	$933,661	$1,111,082	$1,339,407	$1,597,344
Depreciation	$25,600	$25,600	$25,600	$25,600	$25,600
EBIT	$92,400	$908,061	$1,085,482	$1,313,807	$1,571,744
Interest	$29,946	$26,202	$22,459	$18,716	$14,973
PreTax Income	$62,455	$881,858	$1,063,023	$1,295,091	$1,556,772
Income Tax Expense	$21,859	$308,650	$372,058	$453,282	$544,870
Net Income	$40,595	$573,208	$690,965	$841,809	$1,011,902

Balance Sheet

		FY 1	FY 2	FY 3	FY 4	FY 5
ASSETS
	Cash	$280,608	$819,222	$1,475,216	$2,281,622	$3,257,625
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$90,000	$103,032	$117,951	$135,030	$154,583
	Total Current Assets	$370,608	$922,254	$1,593,167	$2,416,652	$3,412,208

	Fixed assets	$170,700	$170,700	$170,700	$170,700	$170,700
	Depreciation	$25,600	$51,200	$76,800	$102,400	$128,000
	Net fixed assets	$145,100	$119,500	$93,900	$68,300	$42,700

TOTAL ASSETS		$515,708	$1,041,754	$1,687,067	$2,484,952	$3,454,908

LIABILITIES & EQUITY
	Debt	$403,113	$345,525	$287,938	$230,350	$172,763
	Accounts payable	$72,000	$82,426	$94,361	$108,024	$123,666
	Total Liability	$475,113	$427,951	$382,298	$338,374	$296,429

	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	$40,595	$613,803	$1,304,769	$2,146,578	$3,158,479
	Total Equity	$40,595	$613,803	$1,304,769	$2,146,578	$3,158,479

TOTAL LIABILITIES & EQUITY		$515,708	$1,041,754	$1,687,067	$2,484,952	$3,454,908

Cash Flow Statement

		FY 1	FY 2	FY 3	FY 4	FY 5
CASH FLOW FROM OPERATIONS
	Net Income (Loss)	$40,595	$573,208	$690,965	$841,809	$1,011,902
	Change in working capital	($18,000)	($2,606)	($2,984)	($3,416)	($3,910)
	Depreciation	$25,600	$25,600	$25,600	$25,600	$25,600
	Net Cash Flow from Operations	$48,195	$596,202	$713,581	$863,993	$1,033,591

CASH FLOW FROM INVESTMENTS
	Investment	($170,700)	$0	$0	$0	$0
	Net Cash Flow from Investments	($170,700)	$0	$0	$0	$0

CASH FLOW FROM FINANCING
	Cash from equity	$0	$0	$0	$0	$0
	Cash from debt	$403,113	($57,588)	($57,588)	($57,588)	($57,588)
	Net Cash Flow from Financing	$403,113	($57,588)	($57,588)	($57,588)	($57,588)

	Net Cash Flow	$280,608	$538,614	$655,994	$806,406	$976,004
	Cash at Beginning of Period	$0	$280,608	$819,222	$1,475,216	$2,281,622
	Cash at End of Period	$280,608	$819,222	$1,475,216	$2,281,622	$3,257,625

Clothing Store Business Plan Template