8. Financials
Start-up Summary
CakeCup financing will come from the partners’ capital and five-year SBA
loan. The chart and table illustrate the company’s projected start-up costs.
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses Assets Investment Loans
9. Financials
Start-up Funding
Start-up Expenses to Fund $29,450
Start-up Assets To Fund $180,000
Total Funding Required $209,450
Assets
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $80,000
Total $180,000
Liabilities and Capital
Liabilities
Borrowing $0
Long-term Liabilities $100,000
Other Current Liabilities $0
Total Liabilities $100,000
Capital
Planned Investment
Ellington $15,000
Alonso $15,000
Torres $15,000
Jones $15,000
Jean $15,000
Brandon $15,000
Patel $15,000
Total Planned Investment $105,000
Loss at Start-up Expenses $29,450
Total Capital $75,550
Total Capital and Liabilities $180,000
Total Funding $209,450
10. Break Even
This Break-even is based on first month. Cakecup Break-even analysis is based on the
average of the first-year figures for total sales by units, and by operating expenses. These
are presented as per-unit revenue, per-unit cost, and fixed costs. Cakecup should break
even by the five month of its operation as it steadily increases its sales.
Break-Even Analysis
Monthly Units Break-even $12,535
Monthly Revenue Break-even $31,338
Assumptions:
Average Per-Unit Revenue $2.50
Average Per-Unit Variable Cost $0.50
Estimated Monthly Fixed Cost $29,450
11. Financials
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5
Unit Sales
Cupcakes 4,000 4,250 4,000 5,000 5,500
Drinks 1,500 1,500 2,500 3,500 4,500
Other 0 0 0 0 0
Total Unit Sales 5,500 5,750 6,500 8,500 10,000
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5
Cupcakes $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Drinks $ 1.69 $ 1.69 $ 1.69 $ 1.69 $ 1.69
Other 0 0 0 0 0
Sales
Cupcakes $10,000 $10,625 $10,000 $12,500 $13,750
Drinks $2,535 $2,535 $4,225 $5,915 $7,605
Other 0 0 0 0 0
Total Sales $12,535 $13,160 $14,225 $18,415 $21,355
Direct Unit Costs
Cupcakes $0.50 $0.50 $0.50 $0.50 $0.50
Drinks $0.89 $0.89 $0.89 $0.89 $0.89
Other 0 0 0 0 0
Direct Cost of Sales
Cupcakes $2,000 $2,125 $2,000 $2,500 $2,750
Drinks $1,335 $1,335 $2,225 $3,115 $4,005
Other 0 0 0 0 0
Total Direct Cost of Sales $3,335 $3,455 $4,225 $5,615 $6,755
