Start-up Funding | |
Start-up Expenses to Fund | $1,250 |
Start-up Assets to Fund | $23,750 |
Total Funding Required | $25,000 |
Assets | |
Non-cash Assets from Start-up | $5,000 |
Cash Requirements from Start-up | $18,750 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $18,750 |
Total Assets | $23,750 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Investor 1 | $25,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $25,000 |
Loss at Start-up (Start-up Expenses) | ($1,250) |
Total Capital | $23,750 |
Total Capital and Liabilities | $23,750 |
Total Funding | $25,000 |
WLF will provide provide law services to two different groups of customers.
WLF’s customers can be divided into two groups, technology firms and public interest organizations.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Technology companies | 9% | 345 | 376 | 410 | 447 | 487 | 9.00% |
Public interest organizations | 8% | 278 | 300 | 324 | 350 | 378 | 7.98% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 8.55% | 623 | 676 | 734 | 797 | 865 | 8.55% |
WLF will be targeting high technology companies for two reasons.
WLF will be targeting public interest organizations for one simple reason, a desire to give back to the community. Public interest work is inherently altruistic to some degree. Generally, the person performing the work receives a good feeling for his/her contribution, but in today’s capitalistic society, someone who donates his/her time at far below market wages should be considered altruistic.
The technology law practice is fairly competitive in Portland. Most larger, more prestigious firms have attorneys who specialize in technology. Some smaller firms also have attorneys who do work for technology companies. Lastly, there are boutique firms, like WLF. As a service-based industry, the practice of law is driven by personal relationships and reputation. Potential clients choose attorneys based on reputation and who they are familiar with or are recommended to. Therefore, if the attorney is providing better service to a client, the client is likely to form a long lasting business relationship with the client.
WLF has the advantage that when Richard left (name omitted) he brought 15 of his clients, which, for now, are almost enough to survive on.
WLF will be courting new technology clients through networking and advertisements in the Yellow Pages, Business Journal of Portland, and other technology specific regional journals. As stated earlier, WLF has a sufficient amount of business at day one, however, more technology clients means the ability to perform more public interest work.
Richard will be attending the Portland Venture Group meetings as well as other informal gatherings of technology companies to network with the different technology firms in the region. These networking activities along with advertisements in appropriate media forms will allow WLF to steadily grow their list of clients.
WLF’s competitive advantage will be based on two factors, experience and specialization:
WLF’s sales strategy will begin with months two through five with the goal of serving the existing customer base of clients. The absence of bringing in new clients during this time is purposeful, it allows WLF and the existing clients to form a new relationship at WLF, different from their previous relationship at (name omitted).
Month six will signal WLF’s conscious effort to generate new clients. Using the previously mentioned networking techniques, Richard, through personal communications, will convince prospective clients of the value of a boutique technology law firm, specifically the depth of knowledge and the close attention that the client will get when dealing with a small firm.
Regarding the public interest organizations, there will be less of a sale strategy, more of a choosing of the organizations that Richard wants to represent. There are so many needy public interest organizations that Richard will have to pick and choose those that he wishes to help out.
The first month will be spent setting up the home office. This will include setting up the office, a conference room, and all of the computer equipment. During the first month, Richard will also be serving some existing technology clients and some public interest clients. We project that if we spend 1/3 of our time on the technology clients, this would sufficiently subsidize the public interest clients so we would only have to cover overhead expenses.
By month six, Richard will begin actively soliciting new clients. Between months one and five he will continue networking, though will not be actively seeking customers. From month seven on and there will be a slight increase in clients taken aboard. There will be only a slight increase so as to create solid relationships with the new and existing clients. Richard will be cognizant of the possibility of growing too fast and not being able to offer the same quality service to his clients.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Technology companies | $174,096 | $189,525 | $195,747 |
Public Interest organizations | $16,839 | $22,578 | $24,547 |
Total Sales | $190,935 | $212,103 | $220,294 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Technology companies | $0 | $0 | $0 |
Public Interest organizations | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
WLF will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2001 | 1/1/2001 | $0 | Richard | Marketing |
Set up ofifce | 1/1/2001 | 1/1/2001 | $0 | Richard | Department |
First month of total technology subsidy | 4/1/2001 | 4/1/2001 | $0 | WLF | Department |
Totals | $0 |
Wy’East Law Firm is an Oregon Corporation founded and run by Richard Bloom. Richard has a degree in Political Science from the University of Colorado, Boulder, and a J.D. from Lewis and Clark University. While at Lewis and Clark, Richard was the President of the school’s Public Interest Student Organization. It was through this organization that Richard became fond of public interest law. After graduation, Richard went to work for (name omitted) for three years in the e-group which concentrated on technology. While working in the e-group, Richard worked on technology issues with a number of well known start-up organizations and established companies.
One of the perks working at (name omitted) was his ability to do pro bono work which counted toward his required yearly billable hours requirement. Richard has spent a fair amount of time with 1000 Friends of Oregon and other public interest organizations. After three years however, Richard was feeling constrained and desired more autonomy. He decided to leave and start his own firm. Richard was able to bring a fair number of his clients from (name omitted) to his new firm, helping the transition from leaving an established practice to hanging out his own shingle and starting over.
The staff will consist of Richard working full time. In addition to Richard, a part-time secretary and part-time paralegal will join WLF by month two. Month four will bring WLF a law clerk, and a second law clerk by month eight.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Richard | $66,000 | $66,000 | $66,000 |
Receptionist/ secretary | $11,550 | $12,500 | $13,500 |
Paralegal | $22,000 | $23,000 | $24,000 |
Law clerk | $8,100 | $11,000 | $12,000 |
Law clerk | $4,500 | $11,000 | $12,000 |
Total People | 5 | 5 | 5 |
Total Payroll | $112,150 | $123,500 | $127,500 |
The following sections will outline important financial information.
The following table details important assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The following table and charts present the projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $190,935 | $212,103 | $220,294 |
Direct Cost of Sales | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $0 | $0 | $0 |
Gross Margin | $190,935 | $212,103 | $220,294 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $112,150 | $123,500 | $127,500 |
Sales and Marketing and Other Expenses | $2,160 | $2,160 | $2,160 |
Depreciation | $1,668 | $1,666 | $1,666 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $1,500 | $1,500 | $1,500 |
Rent | $2,400 | $2,400 | $2,400 |
Payroll Taxes | $16,823 | $18,525 | $19,125 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $136,701 | $149,751 | $154,351 |
Profit Before Interest and Taxes | $54,235 | $62,352 | $65,943 |
EBITDA | $55,903 | $64,018 | $67,609 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $13,210 | $15,588 | $16,761 |
Net Profit | $41,024 | $46,764 | $49,182 |
Net Profit/Sales | 21.49% | 22.05% | 22.33% |
The Break-even Analysis indicates what WLF will need in hours and revenue a month to reach the break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $11,392 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $11,392 |
The following chart and table show anticipated cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $47,734 | $53,026 | $55,074 |
Cash from Receivables | $112,707 | $155,697 | $163,912 |
Subtotal Cash from Operations | $160,441 | $208,722 | $218,986 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $160,441 | $208,722 | $218,986 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $112,150 | $123,500 | $127,500 |
Bill Payments | $31,394 | $41,570 | $41,800 |
Subtotal Spent on Operations | $143,544 | $165,070 | $169,300 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $143,544 | $165,070 | $169,300 |
Net Cash Flow | $16,898 | $43,652 | $49,686 |
Cash Balance | $35,648 | $79,300 | $128,986 |
The following table displays the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $35,648 | $79,300 | $128,986 |
Accounts Receivable | $30,494 | $33,874 | $35,183 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $66,141 | $113,174 | $164,168 |
Long-term Assets | |||
Long-term Assets | $5,000 | $5,000 | $5,000 |
Accumulated Depreciation | $1,668 | $3,334 | $5,000 |
Total Long-term Assets | $3,332 | $1,666 | $0 |
Total Assets | $69,473 | $114,840 | $164,168 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $4,699 | $3,302 | $3,448 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $4,699 | $3,302 | $3,448 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $4,699 | $3,302 | $3,448 |
Paid-in Capital | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($1,250) | $39,774 | $86,538 |
Earnings | $41,024 | $46,764 | $49,182 |
Total Capital | $64,774 | $111,538 | $160,721 |
Total Liabilities and Capital | $69,473 | $114,840 | $164,168 |
Net Worth | $64,774 | $111,538 | $160,721 |
Industry profile ratios based on the NAICS code 541110, Offices of Lawyers, are shown in the table below.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 11.09% | 3.86% | 8.50% |
Percent of Total Assets | ||||
Accounts Receivable | 43.89% | 29.50% | 21.43% | 8.60% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 66.90% |
Total Current Assets | 95.20% | 98.55% | 100.00% | 75.50% |
Long-term Assets | 4.80% | 1.45% | 0.00% | 24.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 6.76% | 2.88% | 2.10% | 50.20% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 12.90% |
Total Liabilities | 6.76% | 2.88% | 2.10% | 63.10% |
Net Worth | 93.24% | 97.12% | 97.90% | 36.90% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 100.00% | 100.00% | 100.00% | 0.00% |
Selling, General & Administrative Expenses | 78.70% | 77.95% | 77.55% | 58.20% |
Advertising Expenses | 0.13% | 0.11% | 0.11% | 0.50% |
Profit Before Interest and Taxes | 28.40% | 29.40% | 29.93% | 3.40% |
Main Ratios | ||||
Current | 14.08 | 34.28 | 47.62 | 1.54 |
Quick | 14.08 | 34.28 | 47.62 | 1.09 |
Total Debt to Total Assets | 6.76% | 2.88% | 2.10% | 63.10% |
Pre-tax Return on Net Worth | 83.73% | 55.90% | 41.03% | 12.30% |
Pre-tax Return on Assets | 78.07% | 54.29% | 40.17% | 33.40% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 21.49% | 22.05% | 22.33% | n.a |
Return on Equity | 63.33% | 41.93% | 30.60% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.70 | 4.70 | 4.70 | n.a |
Collection Days | 57 | 74 | 76 | n.a |
Accounts Payable Turnover | 7.68 | 12.17 | 12.17 | n.a |
Payment Days | 34 | 36 | 29 | n.a |
Total Asset Turnover | 2.75 | 1.85 | 1.34 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.07 | 0.03 | 0.02 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $61,442 | $109,872 | $160,721 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.36 | 0.54 | 0.75 | n.a |
Current Debt/Total Assets | 7% | 3% | 2% | n.a |
Acid Test | 7.59 | 24.02 | 37.41 | n.a |
Sales/Net Worth | 2.95 | 1.90 | 1.37 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Technology companies | 0% | $0 | $8,005 | $9,514 | $13,587 | $16,547 | $16,874 | $16,854 | $17,525 | $18,547 | $18,752 | $18,887 | $19,004 |
Public Interest organizations | 0% | $0 | $1,100 | $1,200 | $1,500 | $1,545 | $1,587 | $1,584 | $1,654 | $1,666 | $1,548 | $1,741 | $1,714 |
Total Sales | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Technology companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Public Interest organizations | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Richard | 0% | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
Receptionist/ secretary | 0% | $0 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 |
Paralegal | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Law clerk | 0% | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
Law clerk | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 |
Total People | 1 | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Gross Margin % | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
Sales and Marketing and Other Expenses | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | |
Depreciation | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Payroll Taxes | 15% | $825 | $1,283 | $1,283 | $1,418 | $1,418 | $1,418 | $1,418 | $1,553 | $1,553 | $1,553 | $1,553 | $1,553 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $6,969 | $10,477 | $10,477 | $11,512 | $11,512 | $11,512 | $11,512 | $12,547 | $12,547 | $12,547 | $12,547 | $12,547 | |
Profit Before Interest and Taxes | ($6,969) | ($1,372) | $238 | $3,576 | $6,581 | $6,950 | $6,927 | $6,633 | $7,667 | $7,754 | $8,082 | $8,172 | |
EBITDA | ($6,830) | ($1,233) | $377 | $3,715 | $6,720 | $7,089 | $7,066 | $6,772 | $7,806 | $7,893 | $8,221 | $8,311 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($2,091) | ($343) | $59 | $894 | $1,645 | $1,737 | $1,732 | $1,658 | $1,917 | $1,938 | $2,020 | $2,043 | |
Net Profit | ($4,878) | ($1,029) | $178 | $2,682 | $4,935 | $5,212 | $5,195 | $4,974 | $5,750 | $5,815 | $6,061 | $6,129 | |
Net Profit/Sales | 0.00% | -11.30% | 1.66% | 17.77% | 27.28% | 28.23% | 28.17% | 25.94% | 28.45% | 28.65% | 29.38% | 29.58% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $2,276 | $2,679 | $3,772 | $4,523 | $4,615 | $4,610 | $4,795 | $5,053 | $5,075 | $5,157 | $5,180 | |
Cash from Receivables | $0 | $0 | $228 | $6,869 | $8,145 | $11,390 | $13,578 | $13,845 | $13,847 | $14,410 | $15,162 | $15,233 | |
Subtotal Cash from Operations | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
Bill Payments | ($761) | ($687) | $1,458 | $1,879 | $2,841 | $3,571 | $3,660 | $3,656 | $3,724 | $3,975 | $3,999 | $4,079 | |
Subtotal Spent on Operations | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
Net Cash Flow | ($4,739) | ($5,587) | ($7,102) | ($688) | $376 | $2,985 | $5,078 | $4,634 | $4,826 | $5,160 | $5,970 | $5,984 | |
Cash Balance | $14,011 | $8,424 | $1,322 | $634 | $1,010 | $3,995 | $9,073 | $13,707 | $18,533 | $23,693 | $29,663 | $35,648 |
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The primary value of your business plan is to create a written resource that evaluates most aspects of your new business including a description of your target customers and markets, profitability, organization, operations and more. The very process of writing your business plan helps you put your ideas on paper so you can evaluate what resources you have and what you need to be successful.
Your business plan is your blueprint for starting your business, your script to tell the story of your business to others, and your comprehensive analysis of the opportunity for your business. Business plans help you plan your roadmap, state your goals, share your vision, and analyze your strategy. A business plan is an important and valuable tool for new as well as existing businesses.
This MOBI Business Plan Template consists of sections that relate to the content included in the MOBI Starting a Business course . You can also use this template as a guide independently. We have created this template with the input of key stakeholders such as economic development agencies, lenders, mentors and successful entrepreneurs. You can complete sections of the business plan as you go through the course, to apply what you are learning along the way, or you can wait until you have completed the course. This business plan template is a universal model suitable for most types of business, which you can customize to fit your circumstances. MOBI provides leading topics, questions, and suggestions in each section to guide you. Here are some instructions to help you get started:
Once you complete your business plan, be sure that key stakeholders review it. Business plans are not static; they will change as your business and the business environment change around you. It’s important to continually review and update your business plan to adjust for these changes.
BUSINESS PLAN
Enter Your Business Name
Enter Your Name
Enter Date
Contact Information
Executive Summary Provide a summary of your business by addressing these key areas.
Name and Description of Business State the name of your business and describe your product or service.
Targeted Market and Customers Describe your target markets and customers and why they want or need your product or service.
Trends in this Industry What are the current trends in the industry that make this a good time for your product or service? For example, is the market for your product growing, and why? Have others failed to address a particular need that your product or service will address?
Value Proposition Provide a brief statement of the unique benefits and value your business will deliver to your customers. Describe the unique qualities of your product or service that will enable you to be profitable.
The Vision Describe the vision of your business and why you are committed to pursuing this vision and making it successful.
Founder Background: Work/life experience related to the intended business Describe your work/life experience, educational credentials, and how they are related to the business you plan to start. Include a list of your skills and knowledge, which will be required in your business.
Your Team If you plan to hire full- or part-time employees or seek business partners, describe your plan for engaging with these other members of your team. If you already have employees or partners, describe key personnel and their roles here.
Goals for business: Outline your key goals for your business. (Explain your plans for growing the business and what you can realistically accomplish in a defined period of time.)
Financing and Financial Projections ( Many business owners require the assistance of a bookkeeper or accountant when completing this section.)
Startup Capital Provide a table or spreadsheet showing the sources of your startup capital including what you or other investors will contribute and what you intend to borrow. Create a list of what the startup capital will be used for and how much will be left over for working capital ( SCORE Startup Expenses Template ).
Accounting Statements Prepare your starting balance sheet and projected profit and loss (income) statements for the first three years. (By month for the first year and then by year for years two and three.) Forecast your month-to-month cash flow requirements for the first year.
Analysis of Costs List and explain the key costs and profit margins that are important for your business. Classify your costs as fixed, variable, product, delivery, etc.
Break-Even Analysis Based on your costs and pricing strategy, prepare a break-even analysis.
Internal Controls Explain your internal and cash controls. For instance, check signing policy, strategy for controlling shrinkage, and control of incoming merchandise or supplies.
Business Organization
Business Organization Explain the form of business organization you intend to use and why it is best for your business (sole proprietorship, partnership, LLC, etc.).
Professional Consultants List the names of your key advisors: bookkeeper/accountant, consultants, lawyer, insurance agent, and any other professionals.
Business Location
If you need a physical location other than your home to operate your business, identify your business space needs considering all phases of your workflow (production, storage, shipping, potential employees, customer meetings, and future requirements). Explain why the location you picked meets your workflow needs.
Marketing and Sales
Market Research: Your Customers and Competition Describe your ideal customer (who will be purchasing your product/service, key characteristics).
Describe your position in the market, your strongest competitors, and how you intend to compete.
Marketing Strategy and Tools Describe your overall marketing strategy, how you will find, engage, and build customers, including:
Sales Strategy Describe your sales process, activities you will conduct, obstacles you expect, how you will overcome them, and any customer service strategies to retain and expand your customer base.
Include k ey details about how you will operate your business.
Addendum: Licenses and Permits *Addendums can include but are not limited to License and Permits*
Make a comprehensive list of all licenses and permits you will need to do business in your area.
Your list should include the following: (For US-based businesses; requirements differ by country and region.)
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Www.saclaw.org, documentary transfer tax, identifying grantors and grantees.
Templates and forms.
Warning about adding names
Any time owners make a change to the title of real estate, they must record a deed with the County Recorder. This Step-by-Step guide outlines the requirements and provides samples with instructions.
PCOR Tips: All recorded forms must be accompanied by a PCOR (Preliminary Change of Ownership Report). This guide has links to the form and tips on filling it out.
Affidavits of Death: If you are transferring Joint Tenancy property, Community Property with Rights of Survivorship, or Transfer on Death Deed property because someone has died, use the Affidavits of Death guide instead of this one.
California mainly uses two types of deeds: the “grant deed” and the “quitclaim deed.” Most other deeds you will see, such as the common “interspousal transfer deed,” are versions of grant or quitclaim deeds customized for specific circumstances. Since the interspousal deed is so commonly requested, we are including a sample in this guide.
A grant deed is used when a person who is on the current deed transfers ownership or adds a name to a deed. The grantor(s) promise that they currently own the property and that there are no hidden liens or mortgages.
A quitclaim deed (sometimes misspelled “quick claim”) is used when someone gives up (waives or disclaims) ownership rights in favor of another person. The grantor may or may not be on the current deed. A quitclaim deed is often used in divorces or inheritance situations, when a spouse or heir gives up any potential rights to real estate. The grantor is giving up their own rights, if any, but not promising anything else.
An interspousal deed is used between spouses or registered domestic partners (“DP”) to change real estate to or from community property. Spouses/DPs can use grant or quitclaim deeds to do the same things, but the interspousal deed makes it clear that the transaction is intended to affect community property rights.
There are many other types of deeds, such as warranty deed, joint tenancy deed, easement deed, trust deed, etc. In some states, these may be considered separate deed types, but in California, these are usually just customized grant deeds.
In a warranty deed, the grantor promises to pay for any lawsuits or damages due to undisclosed ownership disputes. In California, title insurance usually covers such disputes.
Other types of deeds, such as joint tenancy deeds, corporation deeds, easement deeds, or mineral rights deeds, can be created by customizing our grant deed format by downloading the RTF (word processing) version from our website. Consult an attorney or come to the Law Library to research appropriate wording.
Locate the current deed for the property.
You will need information from the current deed. If you need a copy of the current deed, contact the Recorder’s Office where the property is located. In Sacramento, call (916) 874-6334.
To transfer ownership, disclaim ownership, or add someone to title, you will choose between a “grant deed” and a “quitclaim deed.” Spouses/domestic partners transferring property between each other may choose an “interspousal deed.”
Here is a flow chart to help you choose:
If there is more than one new owner, you are moving the real estate into or out of a trust, or the new owner is married, the form of title can have important effects.
If there is only one new owner, and that person is unmarried, title can usually be left blank, although it doesn’t hurt to state something like “a single person” or “a widow” or the like.
If you leave this blank, the default is “tenants in common.”
Examples: siblings who inherit property together, business partners, couples who are not married or registered domestic partners (DP).
If you leave the title line blank, or fill in something like “as husband and wife” or “as domestic partners,” it will be treated as “community property” and a share will go to any heirs instead of all to the surviving spouse/DP.
If only one spouse/DP owns the property (because that person already owned it when they got married, or it was a gift or inheritance), they can make that clear by using the phrase “a married man/woman/person as his/her/their sole and separate property.” Note : if any money earned during the marriage is spent to purchase, make mortgage payments, maintain, or improve the house, the community owns a share regardless of what it says on the deed.
Many couples use trusts to hold their property. The contents of a trust are technically owned by the trustees. Therefore, when transferring property into a trust, the grantees are the “[name of trustees], as trustees of the [name of trust] dated [date trust was signed].”
When transferring property out of a trust, the grantors are the trustees, identified the same way.
See “ Forms of Title for Multiple Owners ,” below, for examples of how these are entered onto the deed.
Your choice of title can have many effects later, such as when you sell or refinance, if one owner falls into debt, if one owner dies, or if a couple divorces. Some examples of potential effects are:
If you have questions about which form of title to use, talk to a family or estate lawyer or research your options at the law library.
You will find filled-out samples of each type of deed at the end of this guide.
The deed can be filled out online, typed, or neatly written in dark blue or black ink. You will need the following information:
The notary will charge a fee for this service. You can find notaries at many banks, mailing services, and title companies.
The new owners do not need to sign.
The PCOR is required when property changes hands, to update the tax records. Turn it in at the Recorder’s Office along with the deed. You can download a Sacramento version of the PCOR from Cal Assessor e-Forms. Each county has its own version; contact the assessor’s office in the county where the property is located to obtain the proper form.
The Recorder’s Office charges a recording fee (currently $20/first page plus $3 for additional pages). Current Sacramento fees are available at the County Clerk/Recorder’s website . You may also need to pay the Documentary Transfer Tax or a $75 “Building Homes and Jobs Act” fee.
When property changes hands, it is reassessed for tax purposes, often causing a sizeable increase in property tax for the new owner.
Certain transfers are excluded from reassessment, including:
If your transfer is excluded from reassessment, you may need to file a claim with the County Assessor. For more information in Sacramento, call the Assessor’s office (916‑875-0750) or visit the Sacramento Assessor’s office website .
Some parts of deeds often need more explanation.
When property changes hands, the county charges a one-time tax of $.55 per $500 of the value of the real estate (1.1%). Some kinds of transfers are exempt. If yours is exempt, enter the Revenue and Taxation code that provides the exemption, and an explanation, then sign. If yours is not exempt, calculate the dollar amount and write it in.
Common exemption codes and explanations:
Other exemptions may be available. See the list of “Transfer Tax Exemptions” on the Sacramento Recorder’s website.
There is an additional $75 fee on mortgage refinances and other real estate transactions that are exempt from Documentary Transfer Tax. Some exceptions apply. Contact your county recorder’s office to determine the total amount you will need to pay.
Grantor(s): The current owner or person transferring the property rights or part of the property rights. This is the person or people who will sign this deed.
Grantee(s) : List all people who are receiving property rights from the grantor(s). If the grantor is staying on title, be sure to list the grantor’s name as one of the grantees also.
It’s often helpful to include the grantors’ and grantees’ marital status.
When there is more than one grantee, you will need to specify the form of title. It can also be helpful to do that if a grantee is a married person or domestic partner.
Here are examples of common title phrases:
Here is a quick reference chart comparing common forms of title.
If you change your name (by court-ordered name change, marriage, or divorce), deeds made out to your old name should be updated. Make out a new grant deed from yourself ([new name], who acquired title under the former name [old name]) as Grantor to yourself ([new name]) as Grantee. For example:
In some situations, after a property owner dies, a new owner receives the property without having to go through probate, just by recording an affidavit. Common examples include people who own the property together as joint tenants or community property with right of survivorship, and people who inherit property via a transfer on death (TOD) deed. For more information, see our guide on Affidavits of Death: Transferring Property without Probate.
The new owner removes the prior owner from the deed by filing an Affidavit of Death of Joint Tenant, Affidavit of Surviving Spouse, or Affidavit of Death of Transferor under TOD Deed.
This is legally sufficient to change ownership, but the lack of a deed showing the new owner’s name can be confusing and lead to problems when selling or refinancing the property. The new owners can make the chain of title (history of ownership) clearer by recording a Grant Deed showing themselves as the Grantee. Here’s how:
Fill out a standard Grant Deed for the property. The new owner will list themselves as both the Grantor and the Grantee. For example, if Chris Jones was a surviving joint tenant on property, after they recorded an Affidavit of Death of Joint Tenant, they could fill out a grant deed like this:
This is the full description of the property, not just the address. It may be brief or very long and full of legalese. It must match the current deed exactly .
You may want to photocopy the legal description and attach it to the new deed as an exhibit, especially if it is too long to fit on the page.
If a piece of real estate is part of a probate case, once the case is resolved the personal representative (executor or administrator) must record documentation showing that it is now owned by the heir or heirs. They can either:
Because the Order is bulky and may have personal and financial information, recording a deed is often preferred. The deed must reference the legal description of the property, the county and case number of the probate case, and the date and title of the order authorizing distribution, state that there is no representation, warranty, or covenant of any kind, and be signed by the personal representative “as executor or administrator of the Estate of ________.”
Here is example wording of a Deed to Real Property that can be customized to fit your needs. The sample is worded for a probate that includes a will. If your situation does not include a will, you would state that you are “administrator of the estate” instead of “executor of the will.”
Sacramento County Clerk-Recorder’s Office Sacramento County Assessor’s Office :
DivorceNet: “ Interspousal Transfers vs Quitclaim Deed ” Self-help information about the differences between these two deeds.
Deeds for California Real Estate ( KFC 170 .Z9 R36, Self-Help) This book, published by Nolo Press, a respected publisher of self-help legal books, is a guide to choosing the right kind of deed, completing the required forms, and filing them. It also discusses related legal issues such as disclosure requirements, community property issues, and tax and estate planning. It contains forms for most transfers of property.
Miller & Starr California Real Estate Forms (KFC 140 .M53) Sections 1:133-1:137 offer language for grant, interspousal, quitclaim, and easement deeds.
California Real Property Practice Forms Manual (KFC140 .A65 C34) A range of sample forms for specific situations such as easements, mineral rights, and more.
PCOR Instructions and Tips In addition to your deed, you will also need to turn in a PCOR (Preliminary Change of Ownership Report). Download the Sacramento PCOR or obtain it from the county assessor where the property is located (the form is different in each county).
Below are samples of the deeds discussed in this guide.
This material is intended as general information only. Your case may have factors requiring different procedures or forms. The information and instructions are provided for use in the Sacramento County Superior Court. Please keep in mind that each court may have different requirements. If you need further assistance consult a lawyer.
Family law form and sample packets, department of child support services forms.
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How to Create a Law Firm Business Plan
How to Write a Business Plan for a Law Firm (with Sample ...
The plan should also explain how you will know when you have met them. For example, you might have a growth goal of reaching five lawyers within two years. Or you might have a revenue goal of collecting $200,000 your first year. Too many businesses, including law firms, meander on their developmental path.
A law firm business plan is a document that outlines your business goals and strategies to achieve those goals. It includes your law firm overview, your reason to start your firm, the services you will offer, a budget or funding requirements, and strategies to get and manage your clients.
A well-structured law firm business plan consists of several key components, each playing a crucial role in guiding the firm's operations and ensuring its long-term success. Here are the essential elements of a comprehensive law firm business plan: ... Sample Business Plan and Fillable Template. If you're in the early stages of creating ...
Download your free law firm sample business plan. Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business. Just make sure you're taking the time to do your own research.
Law Firm Business Plan Template [Updated 2024]
Personal business planning is not about writing a 50-page manifesto outlining every detail of every day of your professional life for the next 10 years. In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF. You don't even have to call it a business ...
Call 1-888-858-2546 or email [email protected]. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. Download our free law firm business plan template. Start your law firm on the right foot with a clear plan that explains where you're going, and how you're getting there.
Cash flow statement: Attach a cash flow statement to the financial plan section of your law firm business plan. Update your revenue, expenses, and budget accordingly throughout the year. 8. Startup Budget. The startup budget section underlines everything you need to turn your law firm business plan into reality.
How to Write Your Law Firm Business Plan
Law Firm Business Plan Template + Example
It should also contain some deeper information about the firm's identity and aspirations. This would include: A mission statement about the firm's purpose. A vision statement or recitation of medium- and long-term goals for the firm. Important aspects of the firm's history. Any important philosophies that the firm brings to legal practice.
Writing a Business Plan for Law Firm
Business Overview. The Harris & Harris Law Firm is a startup up business that provides legal advice and services for clients located within the Scottsdale, Arizona region. The company is founded by Roger Harris and his son, Anthony. Roger Harris has been a partner in a well-established company, Foundations Law Firm, for over twenty years.
A good business plan includes: Vision. Create a picture of what you're building. Values. Identify the rules to guide your team's important work. Law Firm Business Model. What you offer, who you offer it to, and how you'll deliver your services. Targets and Priorities. Clarify metrics that indicate success.
A Sample Law Firm Business Plan Template 1. Industry Overview. The services of lawyers are needed in every part of the united states of America. Statistics has it that the United States of America has about 165,000 law offices and they generate about $180 billion in annual revenue. These goes to show that starting a law firm is indeed a ...
Law Firm Business Plan Example
When to use a Business Plan: You want to start a new business and want to set out the blueprint for the new venture. You will present your plan to potential investors to clearly outline the business goals, financials, and strategies. You are a business owner who wants all your employees and leaders to know the mission and goals for your business.
This MOBI Business Plan Template consists of sections that relate to the content included in the MOBI Starting a Business course. You can also use this template as a guide independently. We have created this template with the input of key stakeholders such as economic development agencies, lenders, mentors and successful entrepreneurs.
Adding or Changing Names on Property (Completing and ...
Closing And Distributing The Probate Estate
Family Law Form and Sample Packets. In this section. Complete Forms at Home. Electronic Form Programs. Self-Help Form and Sample Packets. Individual Forms and Statewide Resources.