4.18.24 Movement Legacies, Reflection, and Review.pptx
EDU Niche - Presentation Update
1.
2. 2
Table of Contents
1.0 Executive Summary...........................................................................................3
1.1 Objectives............................................................................................................................. 5
1.2 Mission Statement ............................................................................................................... 5
1.3 Keys to Success .................................................................................................................... 5
2.0 Company Summary...........................................................................................5
2.1 Company Ownership .......................................................................................................... 5
2.2 Pre-Operating Source and Use of Funds .......................................................................... 6
3.0 Products and Services........................................................................................7
4.0 Market Summary...............................................................................................9
4.1 Industry Summary............................................................................................................ 11
5.0 Marketing Strategy/Implementation .............................................................14
5.1 SWOT Analysis ................................................................................................................. 15
6.0 Management Summary ...................................................................................16
7.0 Financial Summary..........................................................................................17
7.1 Revenue Forecast............................................................................................................... 17
7.2 Personnel Forecast ............................................................................................................ 19
7.3 Income Statement.............................................................................................................. 20
7.4 Statement of Cash Flow.................................................................................................... 22
7.5 Balance Sheet..................................................................................................................... 24
7.6 Break-Even Analysis......................................................................................................... 25
7.7 Best & Worse Case............................................................................................................ 26
Appendix A – Year 1 Financials...........................................................................27
3. 3
1.0 Executive Summary
Despite the challenging economy, demographic trends show an ever increasing demand for
quality tutoring services. With so many of today’s parents both working, online tutoring
provides a convenient and reliable way to accommodate the high numbers of students requiring
assistance with their studies and on-going tutoring,
proving the industry to be recession resistant.
EDU Niche, LLC (“the Company”) will be a state-of-
the-art web-based resource for one-on-one tutoring to
assist students of all level of learning to excel in school.
Simple and easy to access, EDU Niche was founded to
take advantage of the convenience and ready
accessibility of the Internet and its owners’ knowledge
of the tutoring industry to present customers with a
invaluable resource in the comfort of their own homes.
EDU Niche will capitalize on the fact that most children have ready access to a computer and
associate the use of a computer with entertainment and fun. By leveraging this concept, EDU
Niche’s approach makes learning fun and more interesting through the use of cutting edge
technology. Online tutoring sessions are conducted on a real-time interactive whiteboard in
conjunction with audio and video capabilities that allow students and tutors to share one screen
in a secure web environment. Students and the Company’s professional tutors are able to
communicate on a personalized one-to-one basis at their own pace, giving students the undivided
attention that is needed to assist them in understanding the concepts easily and quickly. Using
the virtual whiteboard workspace both tutor and student draw and write to share problems,
solutions and explanations, and work with simulations and animations to maximize learning.
This high tech approach makes tutoring more efficient, cost effective, and accessible for students
everywhere.
4. 4
Our highly qualified team assesses each student’s capabilities and targets specific problem areas
in order to augment their learning and analyzing skills. All tutors are well trained and have either
a Master’s or Bachelor’s Degree. The online platform provides for unlimited online tutoring -
24/7 – giving students the help they need to achieve their goals, when they need it. Students can
connect to a tutor as often as they need help to get tutoring for any and all subjects. EDU Niche
also delivers one-on-one homework help, including writing reports and essays - allowing
students to obtain immediate answers to their queries.
Online, or e-learning, is a growing market and one that figures prominently in the future of
education. The U.S. online education market alone was estimated at $10.2 billion in 2010 and
will reach a projected $24.2 billion by 2015. Approximately 5.6 million college students were
enrolled in at least one online course in 2009, including 2.14 million online-only students. By
2014, that number will grow to an estimated nearly 4 million, according to research from The
Sloan Consortium. There are also over 5 million community college students taking online
courses, and 2 million K-12 online students. Education research firm Ambient Insights reports
that K-12 students taking at least some online education courses will grow to an estimated 6.7
million by 2014.
EDU Niche’s management knows that the best marketing strategy is to aggressively pursue a
comprehensive promotional campaign. A well-rounded approach to marketing promotes the
Company to a diverse customer base. Marketing for the Company will include a combination of
time-tested methods, including traditional advertising, public relations, social media, and a
robust search engine optimization and online marketing
campaign. Perhaps the most valuable source of
advertising will be referrals given by satisfied parents
and children who recommend EDU Niche to others,
assisting in increasing the client base and establishing
the Company as the premier web-based tutoring service.
The Company is led by Sunil and Eva Kumar, who have
a strong background in management, operational
management, project management and financial
modeling, and possesses outstanding customer service and communications skills. They bring
with them significant business acumen and expertise garnered from 24 years of combined
experience working as a Business Analyst and a Operations Team Lead for JP Morgan Chase.
Mr. Kumar began tutoring during his college years and has continued to dedicate himself to
helping other achieve their educational goals by providing private tutoring. Mr. Kumar holds a
Master’s and Bachelor’s Degree in Commerce, as well as a Bachelor’s Degree in Law. Mrs.
Kumar holds a Bachelor’s Degree in Spanish.
EDU Niche is looking for all available options to raise $200K in small business funding in order
to fuel the growth of our education business. The funds will also act as operating capital during
the first few months of operation.
5. 5
1.1 Objectives
Achieve funding
Build a fully functional, interactive website
Establish to EDU Niche as the preferred online tutoring resource
Firmly establish EDU Niche as a marquee brand, expand services to reach a global
market
1.2 Mission Statement
The mission of EDU Niche, LLC is to offer affordable education through the internet to students
worldwide and helping them to achieve their goals. We understanding that in today’s fast-paced
world, that time is of essence for both our clients and their parents. To meet this market demand
EDU Niche will accommodate clients’ needs by offering flexible schedules online to bring
tutoring services to the students at their convenience.
1.3 Keys to Success
Provide superior customer service that leads to referrals and establishes a strong tie with
both parents and children
Provide exceptional services that lead to client satisfaction and consistent referrals
Maintain well-planned and innovative tutoring programs
Implement a strategic marketing plan to secure a solid base of student enrollment
Astute management of budget and careful cost control
2.0 Company Summary
EDU Niche, LLC is a start-up S-corporation that is registered in the state of Texas on May 12,
2011.
2.1 Company Ownership
EDU Niche, LLC is jointly owned by Sunil Kumar (50%) and Eva Kumar (50%).
6. 6
2.2 Pre-Operating Source and Use of Funds
The Pre-Operating Source & Use of Funds section details the Expenses, Assets, Inventory,
Investment and Debt needed to facilitate the Company’s business objectives. The Pre-Operating
expenses and funding occur before the Company receives revenue.
Expenses
Marketing & Advertising $600
Travel & Entertainment $6,000
Legal & Accounting $1,000
Rent Deposit $1,000
Staff/Payroll $2,000
Office Supplies $1,000
Total Expenses $11,600
Assets
Inventory $0
Property $0
Equipment $28,000
Other Long-Term Assets $0
Total Assets $28,000
Total Use of Funds $39,600
Pre-Operating Use of Funds
Investment
Owner $0
Investor $0
Total Investment $0
Debt
Current Debt $0
Long-Term Debt $200,000
Total Debt $200,000
Total Source of Funds $200,000
Pre-Operating Source of Funds
Total Source of Funds $200,000
Total Use of Funds $39,600
Month 1 Starting Cash $160,400
Total Source & Use of Funds
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Investment Debt Expenses Assets Cash
Total Source & Use of Funds
7. 7
3.0 Products and Services
EDU Niche, LLC offers online tutoring services to students of all ages from grades K-12 and
college, and for any subject. The Company’s individualized teaching methods enable students to
master not only the basics, but also gain in-depth knowledge of subjects. With the assistance of
interactive white board, microphone and headset, digital pen tablet, and high speed internet,
EDU Niche uses state-of-the-art tools and software to ensure superior voice quality and video
clarity in order to teach students in an interactive manner.
EDU Niche’s Program Coordinators will interface with the students to conduct an online Pre-
Enrollment Test (PET). The PET measures achievement in a broad range of topics, basic skills,
and allows for both formative and summative assessments. A comprehensive, detailed analysis
is prepared by EDU Niche’s Academic Counselors based on the student’s PET score and
parent’s feedback. The Company’s professional tutors then create a Structured Learning Plan
(SLP) for the student. The SLP helps to provide weekly and monthly achievement goals for each
student and identify any modification to the teaching strategies that may be required to best
facilitate achieving the individual student’s goals.
Subjects include, but are not limited to the following:
English
Math
Geometry
Algebra
Discrete Mathematics
Boolean Algebra
Trigonometry
Calculus
Physics
Science
Statistics
Biology
Chemistry
Some of the most popular help topics include:
Math Calculation
Math Symbols
Math Multiplication Table
Math Conversions
Math Charts
Equivalent Fractions
Linear Equations
Math Problems
How to Factor Polynomials
Area of Triangle
Algebra Equations
Simplifying Radicals
Fractions
Solving Square Root
Slope Formula
Algebra 2 Help
Algebra Word Problems
Math Word Problems
CPT Math Practice Test
GED Math Practice Test
EDU Niche employs a diverse and highly professional team of tutors, who are experts in their
field. Tutors include professors, teachers, lecturers, and graduate students from recognized
universities, and all of whom have a Bachelor’s or Master’s degree.
8. 8
Pricing for the Company’s services are as follows:
Plans Free Trial 1 Hour____ 2 Hours__________5 Hours
Cost $0.00 $14.99 $29.99 $69.99
Payment
Frequency Weekly Monthly Monthly Monthly
Online
Tutoring - - - -
Contract None None None None None None None
Basic Plan Includes:
Connect with any available online tutor.
24/7 Available Online Tutoring with Customer Support
Unlimited Online Tutoring
Customized Online Assessment Tests to meet the needs of each student
Homework help
Personalized Features:
Additional Cost: $15.00 per month
Includes all Basic plan features
Ability to pre-schedule your sessions
Personalized 1 to 1 Tutoring with same tutor each time
Detailed Confidential Progress Reports
Audio/Video Features:
Additional Cost: $10.00 per month
Live Video/Audio Streaming of online sessions
9. 9
4.0 Market Summary
Online education is a burgeoning market that is just beginning to truly transform the education
system. More than 2,500 colleges and universities nationwide offer one or more online course,
and an approximate 5.6 million students were enrolled in at least one online course in 2009,
according to the most recent data from the Sloan Survey of Online Learning. More than 1
million new online students took courses that year.1
“This represents the largest ever year-to-year increase in the number of students studying
online,” said study co-author Elaine Allen, of the Babson Survey Research Group and Professor
of Statistics & Entrepreneurship at Babson College. “Nearly thirty percent of all college and
university students now take at least one course online.” Other report findings include:
Almost two-thirds of for-profit institutions now say that online learning is a critical part
of their long term strategy.
The 21% growth rate for online enrollments far exceeds the 2% growth in the overall
higher education student population.
Nearly one-half of institutions report that the economic downturn has increased demand
for face-to-face courses and programs.
Three-quarters of institutions report that the economic downturn has increased demand
for online courses and programs.
Along with overall online education students, there have also been substantial increases in
online-only enrollment, which will reach an estimated 3.97 million by 2014, according to the
Babson Survey Research Group. This growth is shown in the chart below,2
which is followed by
projections for high school online enrollment.3
1
The Sloan Consortium. “Class Differences: Online Education in the United States, 2010.”
http://sloanconsortium.org/publications/survey/survey05.asp
2
Babson Survey Research Group. “Going the Distance: Online education in the U.S. 2011.” Nov. 2011.
http://www.onlinelearningsurvey.com/reports/goingthedistance.pdf
3
Ambient Insight. “US Self-Paced e-Learning Market.” Oct 2009.
http://www.ambientinsight.com/Reports/eLearning.aspx#section1
10. 10
The National Education Association (NEA) reports that the percentage of high school students
taking online courses “nearly doubled” in 2009 to 27%. The NEA’s annual “Speak Up” report
notes that there are several initiatives nationwide moving more and more courses online in high
school. Among these:4
“In Florida, a new state law requires all entering 9th-graders to have at least one online
class before they graduate (as does Michigan, Indiana, New Mexico, and Alabama) and it
also provides that the full-time, kindergarten through 12th-grade Florida Virtual School
begin offering high-school diplomas in 2013.
In Texas, possible presidential candidate Gov. Rick Perry has expanded the reach of the
Texas Virtual School Network and called on state colleges to offer a $10,000 degree –
something he says is possible through online education.”
The NEA also reports that at the community college level, “the number of online students has
grown astronomically over the years.” Just 700,000 students took online classes in 1997, and the
figure grew to over 5 million in 2007.
Revenue for all segments of the U.S. online learning was $10.2 billion in 2010 and will reach a
projected $24.2 billion by 2015. Of this, the preK-12 academic segment is the fastest-growing
4
NEA. “Study Shows Students Taking Online Courses More Likely to Fail.” July 26, 2011.
http://neatoday.org/2011/07/26/study-shows-students-taking-online-courses-more-likely-to-fail/
11. 11
segment, with a 16.8% annual growth rate, according to the International Association for K-12
Online Learning (iNACOL).5
4.1 Industry Summary
The Company will operate in this distinct industry; Exam Preparation and Tutoring (NAICS
611691). Information provided is gathered from the U.S. Census.
Sales Volume Number of Businesses
Unknown 0.00%
Less Than $500k 39.81%
$500k to $1mil 26.86%
$1 to $2.5mil 18.47%
$2.5 to $5mil 9.11%
$5 to $10mil 4.32%
$10 to $20mil 0.96%
$20 to $50mil 0.24%
$50 to $100mil 0.24%
$100 to $500mil 0.00%
$500mil to $1bil 0.00%
Over $1bil 0.00%
U.S. Exam Preparation and Tutoring
Employee Size Number of Businesses
Unknown 0.00%
1 to 4 53.84%
5 to 9 14.39%
10 to 19 22.03%
20 to 49 7.62%
50 to 99 1.06%
100 to 249 0.67%
250 to 499 0.17%
500 to 999 0.12%
1,000 to 4,999 0.10%
5,000 to 9,999 0.00%
10,000+ 0.01%
U.S. Exam Preparation and Tutoring
Sales
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Unknown
LessThan
$500k
$500kto
$1mil
$1to
$2.5mil
$2.5to
$5mil
$5to
$10mil
$10to
$20mil
$20to
$50mil
$50to
$100mil
$100to
$500mil
$500milto
$1bil
Over$1bil
Sales Volume
NumberofBusinesses
5
iNACOL. “Research, Trends, and Statistics.”
http://www.inacol.org/press/docs/nacol_fast_facts.pdf
13. 13
Exam Preparation and Tutoring
This U.S. industry comprises establishments primarily engaged in offering preparation for
standardized examinations and/or academic tutoring services. Academic tutoring services.
College entrance exam preparation instruction. Learning centers offering remedial courses.
Tutoring, academic
Establishments Total Sales Annual Payroll Paid Employees
5,035 $1,909,336,000 $772,544,000 53,669
10.7 40.5%
Annual Payroll per Employee Sales Per Employee
Employees per Establishment Payroll as a Percent of Sales
United States Exam Preparation and Tutoring
Sales per Establishment Payroll per Establishment
$379,213 $153,435
$14,395 $35,576
Establishments Total Sales Annual Payroll Paid Employees
291 $99,885,000 $36,414,000 3,129
$11,638 $31,922
Annual Payroll per Employee Sales Per Employee
10.8 36.5%
Employees per Establishment Payroll as a Percent of Sales
$343,247 $125,134
Texas Exam Preparation and Tutoring
Sales per Establishment Payroll per Establishment
14. 14
5.0 Marketing Strategy/Implementation
EDU Niche will utilize a comprehensive promotional campaign, initially focusing on driving
awareness within the United States and Canada. EDU Niche will emphasize the convenience
and affordability of its online interactive services, and that it offers services that are superior to
the competition and at the most competitive prices. The Company will reach its audience by
using a marketing strategy that includes a combination of time-tested methods, including
traditional marketing, such as public relations and direct sales, but will primarily focus on
developing a strong internet marketing strategy and high-profile presence. This will be
accomplished by using social media, and a robust search engine optimization and online
marketing campaign. The Company will also promote brand recognition through article and
directory submission, online PR, and affiliate marketing. Additionally, these marketing efforts
will be employed:
Marketing Collateral: The Company will develop attractive product brochures, flyers, and
other media. This marketing collateral can then be sent to schools, organizations, and interested
individuals.
Press Releases: Press releases will be created, and the Company will contact TV shows,
newspapers, industry magazines and websites. This is a free to low cost way to drive awareness
of the Company and its products and services.
Internet Advertising: The Company will allot portions of its marketing budget for strategic
Internet marketing, including search engine optimization. This tactic involves organically
improving the quality and volume of traffic to its website through search engines. Search engine
optimization (SEO) can also target different kinds of searches, including image, local, and
industry-specific vertical searches.
Website: An attractive and user-friendly website will be created. It will outline the Company’s
philosophy and services, as well as spotlight the considerable background of the management
team. The website will be fairly complex, utilizing state-of-the-art software and real-time
instruction tools. The website will also offer a private chat room for clients only and an e-
commerce functionality for on-line payments. The website will be professionally designed and
maintained, presenting customers with a dynamic face for EDU Niche.
Referral Marketing: The Company will become a member of online networking forums, which
allows businesses to share ideas, contacts, and most importantly, business referrals. EDU Niche
will use referrals to reach a new customer base in need of the services provided.
Trade Shows: These are vital to making connections with potential customers. The Company
will attend select trade shows and conventions within the industry and target markets in the U.S.
and Canada.
Social media: The Company will communicate with its customers via online forums and monitor
ratings and review sites and industry blogs to determine the prevailing consumer attitudes, the level
15. 15
of EDU Niche’s brand recognition, as well as trends the Company needs to address. The Company
will consider maintaining Facebook and Twitter sites.
Word of mouth: EDU Niche’s adherence to providing industry-leading services with an
unmatched attention to client satisfaction will establish a positive reputation within the region.
This will lead the Company’s customers to recommending the Company to their friends, family,
and colleagues. This is a simple (and free) marketing tactic that has powerful implications and
can help EDU Niche become further recognized as a premier online tutoring program.
5.1 SWOT Analysis
Internal
Factors
External
Factors
Positive Negative
Strengths Weaknesses
Affordable pricing
Unlimited online tutoring
Establish Company as the leader
24/7 service
in child care in the area
Capitalize on franchise brand recognition
Prolonged economic recovery
Highly professional team of tutors
Threats
Parents choose to spend elsewhere
Dealing with an highly competitive market
Seasonal Impacts with online tutoring
New Company lack brand recognition
Opportunities
Capture the majority of the online tutoring
market in the U.S. and Canada
16. 16
6.0 Management Summary
The Company will be owned and managed by Eva Kumar, who together possess the requisite
management skills and experience to successfully run this operation. Mrs. Kumar is
entrepreneurial-minded leaders who is highly skilled in project management on an international
level.
Eva Kumar, President and Co-Founder – Mrs. Kumar brings with her over 4 years’
experience in education and business before co-founding EDU Niche. She is a co-founder
for another internet eLearning company, Tutor Pace, Inc. a global education company
that leverages Internet, technology and resources worldwide to make supplemental
education affordable to masses. Tutor Pace addresses global students through remote
teachers and provides one-on-one personalized tutoring at an affordable $79.99 a month
for unlimited tutoring. Eva’s visionary leadership and educational expertise brought
several ideas for K-12 market. With experience as a teacher, Eva provide a unique
combination of cutting edge vision and practical application skills.
17. 17
7.0 Financial Summary
7.1 Revenue Forecast
The Revenue Forecast section details the revenue that the Company will receive. This section
also details the direct costs. The following graphs illustrate the amount of revenue each line item
contributes.
Year 1 Year 2 Year 3
Units
Tuition Fees 2,748 4,586 7,137
Advertising 2,720 4,540 7,065
Total Units 5,468 9,125 14,202
Unit Price
Tuition Fees $99.00 $99.00 $99.00
Advertising $200.00 $200.00 $200.00
Revenue
Tuition Fees $272,032 $453,970 $706,524
Advertising $544,065 $907,940 $1,413,047
Gross Revenue $816,097 $1,361,910 $2,119,571
Unit Cost
Tuition Fees $82.17 $82.17 $82.17
Advertising $0.00 $0.00 $0.00
Direct Costs
Tuition Fees $225,787 $376,795 $586,415
Advertising $0 $0 $0
Direct Cost of Revenue $225,787 $376,795 $586,415
Yearly Revenue
19. 19
7.2 Personnel Forecast
The Personnel section breaks down the payroll expense line on the Income Statement. It
provides total headcount, average salary per category and total pay per category.
Year 1 Year 2 Year 3
Headcount
Managers 1 2 3
Executives 2 2 2
Management 2 4 7
Team Leads 4 8 14
Team Members 28 56 98
HR 1 2 2
IT 4 6 6
Finance/Accounting 1 1 2
Admin Support 1 1 1
District Coordinators 6 6 6
Total Headcount 50 88 141
Compensation
Managers $15,000 $16,200 $17,496
Executives $25,000 $25,750 $26,523
Management $10,000 $10,800 $11,664
Team Leads $7,000 $7,560 $8,165
Team Members $5,000 $5,400 $5,832
HR $5,000 $5,400 $5,832
IT $8,000 $8,640 $9,331
Finance/Accounting $6,000 $6,480 $6,998
Admin Support $6,000 $6,480 $6,998
District Coordinators $20,000 $20,600 $21,218
Payroll
Managers $15,000 $32,400 $52,488
Executives $50,000 $51,500 $53,045
Management $20,000 $43,200 $81,648
Team Leads $28,000 $60,480 $114,307
Team Members $140,000 $302,400 $571,536
HR $5,000 $10,800 $11,664
IT $32,000 $51,840 $55,987
Finance/Accounting $6,000 $6,480 $13,997
Admin Support $6,000 $6,480 $6,998
District Coordinators $120,000 $123,600 $127,308
Total Payroll $422,000 $689,180 $1,088,979
Yearly Personnel
20. 20
7.3 Income Statement
The Income Statement is also known as a Profit & Loss Statement. This table breaks down
Revenue, Cost of Revenue, Operating Expenses, Depreciation, Interest, Taxes, and bottom line
Earnings for the first three years.
Year 1 Year 2 Year 3
Gross Revenue $816,097 $1,361,910 $2,119,571
Direct Cost of Revenue $225,787 $376,795 $586,415
Other Direct Costs $0 $0 $0
Total Cost of Revenue $225,787 $376,795 $586,415
Gross Profit $590,310 $985,115 $1,533,156
Gross Margin Percentage 72.3% 72.3% 72.3%
Operating Expenses
Marketing & Advertising $7,200 $7,560 $8,316
Travel & Entertainment $6,000 $6,000 $6,000
Merchant Fees $360 $378 $397
Rent $12,000 $13,200 $14,520
Utilities $1,200 $1,260 $1,323
Legal/Accounting $7,200 $7,776 $8,398
Office Supplies $2,400 $2,520 $2,722
Auto $12,000 $12,600 $13,860
Cleaning & Janitorial $1,200 $1,260 $1,361
Web Hosting $3,000 $3,150 $3,308
Repair & Maintenance $600 $630 $674
Telephones/Internet $3,600 $3,780 $4,082
Misc Expenses $2,400 $2,520 $2,722
Total Payroll $422,000 $689,180 $1,088,979
Payroll Taxes $46,420 $75,810 $119,788
Payroll Benefits $0 $0 $0
Total Operating Expenses $527,580 $827,624 $1,276,448
Operating Profit $62,730 $157,491 $256,708
Operating Profit Percentage 7.7% 11.6% 12.1%
Depreciation $3,500 $5,875 $9,188
Earning Before Interest & Taxes $59,230 $151,616 $247,520
EBIT Percentage 7.3% 11.1% 11.7%
Interest Expenses $12,903 $10,401 $7,717
Taxes Accrued $0 $0 $0
Earnings $46,327 $141,215 $239,803
Earnings Percentage 5.7% 10.4% 11.3%
Yearly Income Statement
21. 21
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Year 1 Year 2 Year 3
Yearly Income Statement
Gross Revenue
Gross Profit
Operating Profit
Earning Before
Interest & Taxes
Earnings
($10,000)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Year 1 Income Statement
Gross Revenue
Gross Profit
Operating Profit
Earning Before
Interest & Taxes
Earnings
22. 22
7.4 Statement of Cash Flow
The Statement of Cash Flow illustrates the Company’s cash received and cash spent for the three
year period. The table is broken down into three main categories; Operating, Investing, and
Financing. The Operating Activities report the Company’s business operations. Investing
Activities detail the Company’s property, plant, and equipment transactions. Financing
Activities account for the Company’s paid-in capital and debt.
Year 1 Year 2 Year 3
Operating Activities
Cash Received
Gross Revenue $816,097 $1,361,910 $2,119,571
Total Cash Received $816,097 $1,361,910 $2,119,571
Cash Used
Cost of Revenue $225,787 $376,795 $586,415
Payroll/Taxes/Benefits $468,420 $764,990 $1,208,766
Other Operating Expenses $59,160 $62,634 $67,682
Additional Inventory $0 $0 $0
Interest Expenses $12,903 $10,401 $7,717
Taxes Accrued $0 $0 $0
Total Cash Used $766,270 $1,214,819 $1,870,580
Net Cash From/(Used By) Operating $49,827 $147,090 $248,991
Investing Activities
Cash Received
Proceeds from Property/Land $0 $0 $0
Proceeds from Equipment $0 $0 $0
Total Cash Received $0 $0 $0
Cash Used
Purchase of Property/Land $0 $0 $0
Purchase of Equipment $0 $19,000 $26,500
Total Cash Used $0 $19,000 $26,500
Net Cash From/(Used By) Investing $0 ($19,000) ($26,500)
Financing Activities
Cash Received
Proceeds from Investors $0 $0 $0
Proceeds from Long-Term Debt $0 $0 $0
Total Cash Received $0 $0 $0
Cash Used
Dividends Paid $0 $0 $0
Repayment of Long-Term Debt $34,620 $37,122 $39,806
Total Cash Used $34,620 $37,122 $39,806
Net Cash From/(Used By) Financing ($34,620) ($37,122) ($39,806)
Net Cash Flow $15,207 $90,968 $182,685
Cash Balance $175,607 $266,575 $449,261
Yearly Statement of Cash Flow