Question

Startup of an online car rental and swap service by four people.

Write a Financial plan for 5 years

Include:

Sales Forecast

Income Statement

Cash Flow Statement

Answer 1

Sales Forcast

You need to develop a plan to focast unit sales per month, and as per your question, it should be per ride. As it is a startup, need to collect data from current market. Best way is to collect past 3 or 4 years data and use some statistical tool like trend anaysis etc to make the future prediction. As you are planning for 5 years prediction, you need to collect other competitors maket data to validate the growth. We need to break past 4 years sales factors to find out average price for per ride. Also need to consider competitors price for per ride. For startup, to catch the business or people's trust, at least one or two years, you need to give some offers like first ride is free, family ride will get discount etc.

Income statement

1, Find Predicated Revenue-------- Total sales (Pojrect sale amount as per forcast)

2, Then Deduct Cost of goods sold from the revenue

3, Deduct expenses from the previous amount

4, Then you will get operation income or loss

5, Then deduct taxes

6, Then net income

Cash flow statement

	1st year	2nd year	3rd year	4 year	5th year
Beginning cash	The amount which you are looking to invest as cash	xxxxx	xxxxx	xxxxx	xxxxx
Sales (total rides x price)	xxxx	xxx	xxxx	xxxx	xxx
Sale of assets	xxxx	xxxx	xxxx	xxxxx	xxxxx
Money from investors	xxxx	xxxx	xxxxx	xxxx	xxxxxxxx
Loans	xxxx	xxxx	xxxx	xxx	Xxxxx
Contributed capital	xxxx	xxxxx	xxxx	xxxxx	Xxxxx
Available cash	Total of above values	Total of above values	Total of above values	Total of above values	Total of above values
Use of funds( Minus from the available cash)
Salaries	xxxx	xxxx	xxxxx	xxxx	Xxxxx
Other operating expenses	xxxx	xxx	xxxx	xxxx	Xxxx
Loan payment	xxxx	xxxxx	xxxxx	xxxx	Xxxxx
Capital expenditures	xxxx	xxxxx	xxxxx	xxxxx	Xxxxxx
Tax payments	xxxxx	xxxxxx	xxxxxx	xxxxx	Xxxxxxx
Total cash out	Total of above values	Total of above values	Total of above values	Total of above values	Total of above values
Total available cash= Available cash-Total cash out	xxxxxx	xxxxx	xxxxx	xxxxxxx	xxxxxxx