Financial Plan
Key Revenue & Costs
Revenue Sources
Commission Fees:
Keystone Realty Solutions anticipates earning commission fees from real estate transactions. Based on market analysis and anticipated sales volume, the following revenue figures are projected:
Year 1: $500,000
Year 2: $575,000
Year 3: $690,000
Property Management Fees:
Keystone Realty Solutions expects to generate additional revenue through property management services. Based on the number of properties managed and estimated fees, the projected revenue figures are as follows:
Year 1: $150,000
Year 2: $180,000
Year 3: $200,000
Real Estate Consulting Services
Keystone Realty Solutions plans to offer consulting services to clients. The projected revenue from consulting services is estimated as follows:
Year 1: $50,000
Year 2: $60,000
Year 3: $70,000
Costs
Staff Salaries and Benefits:
Keystone Realty Solutions will hire a team of professionals, including real estate agents, property managers, administrative staff, and support personnel. The anticipated staff costs for the first three years are as follows:
Year 1: $157,015
Year 2: $180,000
Year 3: $191,650
Marketing and Advertising:
To promote the business and attract clients, Keystone Realty Solutions will allocate a budget for marketing and advertising activities. The estimated costs for marketing and advertising are as follows:
Year 1: $80,000
Year 2: $90,000
Year 3: $100,000
Office Rent and Utilities:
The company will incur costs related to office space rental, utilities, maintenance, and other facilities required for day-to-day operations. The projected expenses for office rent and utilities are as follows:
Year 1: $60,000
Year 2: $65,000
Year 3: $70,000
Professional Services:
Keystone Realty Solutions may engage external professionals for legal services, accounting, and other specialized services. The estimated costs for professional services are as follows:
Year 1: $30,000
Year 2: $35,000
Year 3: $40,000
Technology and Software:
The company will invest in real estate management software, CRM systems, and other technology tools to streamline operations. The projected costs for technology and software are as follows:
Year 1: $25,000
Year 2: $30,000
Year 3: $35,000
Training and Development:
Keystone Realty Solutions will allocate a budget for continuous professional development and training programs for employees. The estimated costs for training and development are as follows:
Year 1: $10,000
Year 2: $12,000
Year 3: $15,000
Financial Projections:
Income Statement (Profit and Loss Statement):
| FY 1 | FY 2 | FY 3 | ||
| Revenues | ||||
| Total Revenues | $500,000.00 | $575,000.00 | $690,000.00 | |
| Expenses & Costs | ||||
| Lease | $82,985.00 | $83,000.00 | $85,000.00 | |
| Marketing | $20,000.00 | $10,000.00 | $10,000.00 | |
| Salaries | $157,015.00 | $180,000.00 | $191,650.00 | |
| Initial expenditure | $10,000.00 | $0 | $0 | |
| Total Expenses & Costs | $400,000.00 | $380,000.00 | $450,000.00 | |
| Operation cost | $130,000.00 | $107,000.00 | $163,350.00 | |
| EBITDA | $100,000.00 | $195,000.00 | $240,000.00 | |
| Depreciation | $18,000.00 | $18,000.00 | $18,000.00 | |
| EBIT | $82,000.00 | $177,000.00 | $222,000.00 | |
| Interest | $1,759.00 | $1,860.00 | $2,058.00 | |
| PRETAX INCOME | $80,241.00 | $175,140.00 | $219,942.00 | |
| Net Operating Loss | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | |
| Taxable Income | $80,241.00 | $175,140.00 | $219,942.00 | |
| Income Tax Expense | $8,000.00 | $12,000.00 | $16,000.00 | |
| NET INCOME | $72,241.00 | $163,140.00 | $203,942.00 |
Balance Sheet:
| FY 1 | FY 2 | FY 3 | ||
| ASSETS | ||||
| Cash | $80,000.00 | $150,000.00 | $200,000.00 | |
| Accounts receivable | $200,000.00 | $350,000.00 | $400,000.00 | |
| Inventory | $1,000,000.00 | $3,000,000.00 | $2,500,000.00 | |
| Total Current Assets | $1,280,000.00 | $3,500,000.00 | $800,000.00 | |
| Fixed assets | $200,000.00 | $200,000.00 | $200,000.00 | |
| Depreciation | $18,000.00 | $36,000.00 | $54,000.00 | |
| Net fixed assets | $172,840.00 | $145,680.00 | $118,520.00 | |
| TOTAL ASSETS | $1,452,840.00 | $3,645,680.00 | $3,218,520.00 | |
| LIABILITIES & EQUITY | ||||
| Debt | $0.00 | $0.00 | $0.00 | |
| Accounts payable | $300,000.00 | $80,000.00 | $60,000.00 | |
| Total Liability | $300,000.00 | $80,000.00 | $60,000.00 | |
| Share Capital | $0.00 | $0.00 | $0.00 | |
| Retained earnings | $100,000.00 | $200,000.00 | $300,000.00 | |
| Total Equity | $1,152,840.00 | $3,365,680.00 | $558,520.00 | |
| TOTAL LIABILITIES & EQUITY | $1,452,840.00 | $3,645,680.00 | $918,520.00 | |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | ||||||
| CASH FLOW FROM OPERATIONS | ||||||||
| Net Income (Loss) | $72,241.00 | $163,140.00 | $203,942.00 | |||||
| Change in working capital | (19,200.00) | (1,966.00) | (2,167.00) | |||||
| Depreciation | $18,000.00 | $18,001.00 | $18,002.00 | |||||
| Net Cash Flow from Operations | $71,041.00 | $179,175.00 | $219,777.00 | |||||
| CASH FLOW FROM INVESTMENTS | ||||||||
| Investment | $0 | $0 | $0 | |||||
| Net Cash Flow from Investments | $0 | $0 | $0 | |||||
| CASH FLOW FROM FINANCING | ||||||||
| Cash from equity | $0 | $0 | $0 | |||||