Financials
PetLovers LLC financials are provided below. Our startup expenses are noted for the first year along with our projected cash flow, profit and loss projection and balance sheet. We also have noted our 3-year sales forecast along with our year 2 projected cash flow statement.
12-Mos startup expenses
Capital Sources
-
Include a $20k contribution from each owner, Sabrina Ahmed, Mengyi Guo, Yingquan Li, and Angela Borden, plus a $500k from angel investors with no ownership interest or repayment expectation (family members).
Startup Expenses
-
Minimal expenses include Furniture ($4k), Equipment ($6k), Utility Deposits ($500), Opening Inventory ($7,425), Legal and Accounting fees ($1,200), Advertising & Travel ($16k) as well as prepaid expenses noted in our financials.
Contingency Fund
-
Initially includes 10% of applicable costs per recommended coverage of 5-10%.
Wages
-
Wages will not be paid to the owners and all work will be performed by the owners, a four-person cross-functional team for year one. Beginning in year two, PetLovers will employ resources to help to build out the business and support its owners.
12-mos cash flow
Cash on Hand Pre-Startup
-
Cash on hand is $580,000
Revenue
-
Revenue will be generated by selling pet gift products originating from PetLovers’ ecommerce website. Our roadmap provides a structure for growth as we open new markets and expand our product line.
-
Products will be sold in the U.S. for year 1, followed by opening to Asia in Year 2 and Europe in Year 3.
-
Our partner portfolio is well diversified in order to achieve success in the marketplace. We will utilize advisors beginning in year 2 to help as well as employ resources to support our business needs.
Salaries
-
Owners will not receive salaries during Year 1 and Year 2.
Cash Position
-
Our cash position at the end of the fiscal year will be $613,205 and depreciation for fixed assets (furniture and computers) totals $2600.
Breakeven
-
PetLovers is forecasted to make its first profit during month 5 in the amount of $70 based on the sales forecast of $5,975 in Gross Profit being sold as of the first 5 months.
profit and loss projection (12 mos)
Profit and Loss Projection (12 Months)
-
PetLovers' Fiscal Year begins 10/1/2021 – 9/30/2022.
-
Our first profit of $70 (after taxes) is recognized in February 2022 (M5).
-
Cost of Goods Sold for Year 1 is $65,825.
Balance sheet projected fiscal ye
-
Our Balance sheet changes are a function of current period (10/1/2021 – 9/30/2022) expenses running through retained earnings.
3 Year - Sales Forecast
Assumptions
-
The average order size is $42.
-
Year 1: By the end of the first year for US market, 3,125 orders will have been placed and sales are projected to total $131,650 for the first year.
-
Year 2: By the end of the second year for US and Asia markets, 19,300 orders will have been placed and sales are projected to total $810,600 for the second year.
-
Year 3: By the end of the third year for US, Asia and Europe markets, 73,825 orders will have been placed and sales are projected to total $3,100,650 for the third year.
Year two - 12-mos cash flow
-
Net cash is projected to increase from $613k to almost $700k in Year 2.
-
Expenses are projected to be relatively consistent month over month.
-
Advertising budget will increase from $1k to $2k during Year 2.
-
PetLovers will pay salaries to hired resources such as a Fulfillment Associate, Supply Chain Specialist, Database Administrator Jr. and Software Engineer for Year 2. We will also pay federal (12%) and state (5.75%) income taxes.
-
Owners will not receive salaries for Year 1 and Year 2 but will begin taking disbursements during year 3.