In order to arrive at an initial projection for the profit and losses of our first year, we took into account the following variables:
initial expenses to get the studio up and running
fixed studio costs that we can except month over month
projected revenue/sales profit from studio and equipment rental
All of the above can be found outlined in the cash flow forecast provided.
We will be able to update these figures to be more inclusive once we have a sense of the operating cash we will have available as our starting balance. We will also be able to send an updated cash flow forecast at the end of each month updated with figures based on past actuals.
This revised forecast will also include a breakout of our gross margin and net profit to date. Another addition to the sales forecast will be that of creative services which we will gradually introduce into the studio offering as we build momentum.
For the initial launch, we will be focusing on the studio and equipment rentals as the foundation of the business.
Based on our initial projections, which are subject to change, we anticipate EOY sales for the first year of business to be equal to or greater than $XK while expenses/costs are expected to be around $XK which gives us a total net profit of ~$XK. We expect this figure to more than double in the following year with the removal of the initial startup costs we will face in the first year.
Growth Tracking:
Annual Report to track our accomplishments at the end of the year.
Sales and Revenue Report to track sales on an ongoing basis.
Inventory Report to track what inventory we have the frequency with which we are renting each item.
Marketing Report to track ROI and what forms of engagement are revenue drivers for the business.
Web/Social Media Report to track online performance for the studio.
