Business Plan Essay Research Paper Business PlanBusiness
Business Plan Essay, Research Paper
Business Plan
Business Plan: Progressive Consulting
What follows is a complete concern program for a conjectural company. Please transcript
or salvage to your disc and usage as an illustration in developing your ain concern program.
If you would wish to read a series of articles jump to Web Marketing. For
extra concern AIDSs chink on The Practical Tools of Consulting
1. 0 Executive Summary
Progressive Consulting will be formed as a confer withing company specialising in
selling of high engineering merchandises in international markets. Its laminitiss are
former sellers of confer withing services, personal computing machines, and market research,
all in international markets. They are establishing Progressive Consulting to
formalise the confer withing services they offer.
1. 2 Mission
Progressive Consulting offers hi-tech makers a dependable, high quality
alternate to inhouse resources for concern development, market development,
and channel development on an international graduated table. A true option to in
house resources offers a really high degree of practical experience, cognize how,
contacts, and confidentiality. Clients must cognize that working with Progrssive
Consulting is a more professional, less hazardous manner to develop new countries even than
working wholly in house with their ain people. Progressive Consulting must
besides be able to keep fiscal balance, bear downing a high value for its
services, and presenting an even higher value to its clients. Initial focal point will
be development in the European and Latin American markets, or for European
clients in the United States market.
1. 3 Keys to Success
? Excellence in carry throughing the promise wholly confidential, dependable,
trusty expertness and information.
? Developing visibleness to bring forth new concern leads.
? Leveraging from a individual pool of expertness into multiple gross coevals
chances: consideration consulting, undertaking consulting, market research, and
market research published studies.
2. 0 Company Summary
Progressive Consulting is a new company supplying high-ranking expertness in
international hi-tech concern development, channel development, distribution
schemes, and selling of high tech merchandises. It will concentrate ab initio on
supplying two sorts of international trigons:
? Supplying United States clients with development for European and Latin
American markets.
? Supplying European clients with development for the United States and Latin
American markets.
As it grows it will take on people and confer withing work in related markets, such
as the remainder of Latin America, and the Far East, and similar markets. As it grows
it will look for extra purchase by taking securities firm places and
representation places to make per centum retentions in merchandise consequences.
2. 1 Company Ownership
Progressive Consulting will be created as a California C corporation based in
Los Angeles County, owned by its chief investors and chief operators. As
of this composing it has non been chartered yet and is still sing
options of legal formation.
2. 2 Startup Summary
Entire get down up disbursal ( including legal costs, logo design, letter paper and
related disbursals ) come to $ 73,000. Get down up assets required include $ 3,000 in
short term assets ( office furniture, etc. ) and $ 1,000,000 in initial hard currency to
manage the first few months of confer withing operations as gross revenues and histories
receivable drama through the hard currency flow. The inside informations are included in the tabular array.
Start-up Plan _______________________________ Start-up Expenses Legal
$ 1,000 Stationery etc. $ 3,000 Brochures
$ 5,000 Consultants $ 5,000
Insurance $ 350 Expensed equipment $ 3,000
Other $ 1,000 _______________________________ Total
Start-up Expense $ 18,350
Start-up Assetss Needed Cash demands $ 25,000 Start-up
stock list $ 0 Other Short-run Assets $ 7,000 Sum
Short-run Assets $ 32,000 Long-term AssetsWORD
DOCUMENT HAS NO NUMBER HERE Capital Assets $ 0 ______________
_________________ Total Assets $ 32,000
Entire Startup Requirements: $ 50,350 Left to finance: $ 0
Start-up Funding Plan
Investing Investor 1 $ 20,000 Investor 2
$ 20,000 Other $ 10,000 Total investing
$ 50,000
Short-run adoption Unpaid disbursals $ 5,000 Short-run
loans $ 0 Interest-free short-run loans $ 0 Subtotal Short-run
Borrowing $ 5,000 Long-run Borrowing $ 0 Total Borrowing
$ 5,000
Loss at start-up ( $ 23,000 ) Entire Equity $ 27,000
Entire Debt and Equity $ 32,000
2. 3 Company Servicess
Progressive offers expertise in channel distribution, channel development, and
market development, sold and packaged in assorted ways that allow clients to
take their preferable relationship: these include consideration consulting
relationships, undertaking based consulting, relationship and confederation brokering,
gross revenues representation and market representation, project-based market research,
published market research, and information forum events.
2. 4 Company locations and installations
The initial office will be established in A quality office infinite in the Los
Angeles County & # 8221 ; Dearborn Valley & # 8221 ; country of California, the bosom of the U.S. high
tech industry.
3. 0 Servicess
Progressive offers the expertness a high-technology company needs to develop new
merchandise distribution and new market sections in new markets. This can be taken
as high-ranking consideration consulting, market research studies, or project-based
consulting.
3. 1 Service Description
1. Retainer confer withing: we represent a client company as an extension of its
concern development and market development maps. This begins with complete
apprehension of the client company & # 8217 ; s state of affairs, aims, and restraints. We
so stand for the client company softly and confidentially,
sifting through new market developments and new chances as is appropriate
to the client, stand foring the client in initial negotiations with possible Alliess,
sellers, and channels.
2. Undertaking consulting: Proposed and billed on a per-project and per-milestone
footing, undertaking confer withing offers a client company a manner to tackle our particular
qualities and utilize our expertness to work out specific jobs, develop and/or
implement programs, develop specific information.
3. Market research: group surveies available to selected clients at $ 5,000 per
unit. A group survey is packaged and published, a complete survey of a particular
market, channel, or subject. Examples might be surveies of developing consumer
channels in Japan or Mexico, or deductions of altering borders in package.
3. 2 Competitive Comparison
The competition comes in several signifiers:
1. The most important competition is no confer withing at all, companies taking
to make concern development and channel development and market research in-house.
Their ain directors do this on their ain, as portion of their regular concern
maps. Our cardinal advantage in competition with in-house development is that
directors are already overloaded with duties, they don & # 8217 ; Ts have clip for
extra duties in new market development or new channel development.
Besides, Progressive can near confederations, sellers, and channels on a confidential
footing, garnering information and doing initial contacts in ways that the
corporate directors can & # 8217 ; T.
2. The high-ranking prestigiousness direction consulting: High-Tec, San Diego Consulting
Group, etc. These are basically Renaissance mans who take their name-brand
direction confer withing into forte countries. Their other really of import failing
is the direction construction that has the spouses selling new occupations, and
inexperienced associates presenting the work. We compete against them as experts
in our specific Fieldss, and with the warrant that our clients will hold the
top-level people making the existent work.
3. The 3rd general sort of rival is the international market research
company: International Electronic Data Corporation ( IEDC ) , Dataquest, Stanford
Research Institute, etc. These companies are formidable rivals for
published market research and market forums, but can non supply the sort of
high-level consulting that Triangle will supply.
4. The 4th sort of competition is the market-specific smaller house. For
illustration: Nomura Research in Japan, Select S.A. de C.V. in Mexico ( now affiliated
with IEDC ) .
5. Gross saless representation, brokering, and trade accelerators are an ad-hoc concern
signifier that will be defined in item by the specific nature of each person
instance.
3. 3 Gross saless Literature
The concern will get down with a general corporate booklet set uping the
positioning. This booklet will be developed as portion of the start-up disbursals.
Literature and mailings for the initial market forums will be really of import,
with the demand to set up a high-quality expression and feel for & # 8230 ; & # 8230 ; [ truncated
because this program is provided for intents of illustration merely ]
3. 4 Sourcing
? The cardinal fulfilment and bringing will be provided by the principals of the
concern. The existent nucleus value is professional expertness, provided by a
combination of experience, difficult work. and instruction ( in that order ) .
? We will turn to qualified professionals for freelance back-up in market
research and presentation and study development, which are countries that we can
afford to contract out without put on the lining the nucleus values provided to the clients.
3. 5 Technology
Progressive Consulting will keep latest Windows and Macintosh capablenesss
including:
? 1. Complete Email installations in Internet, Compuserve, America Online, and
Applelink, for working with clients straight through email bringing of bill of exchanges
and information.
? 2. Complete presentation installations for readying and bringing of multimedia
presentations on Macintosh or Windows machines, in formats including on-disk
presentation, unrecorded presentation, or video presentation.
? 3. Complete desktop publication installations for bringing of regular consideration
studies, undertaking end product studies, selling stuffs, market research studies.
3. 6 Future Servicess
In the hereafter Progressive will broaden the coverage by spread outing into coverage
of extra markets ( e.g. all of Latin America, Far East, Western Europe ) and
extra merchandise countries ( e.g. telecommunications and engineering integrating ) .
We are besides analyzing the possibility of newssheet or electronic newssheet
services, or possibly particular on-topic studies.
4. 0 Market Analysis Summary
Progressive will be concentrating on high-technology makers of computing machine
hardware and package, services, networking, who want to sell into markets in
the United States, Europe, and Latin America. These are largely larger companies,
and on occasion moderate-sized companies.
Our most of import group of possible clients are executives in larger
corporations. These are selling directors, general directors, gross revenues directors,
sometimes charged with international focal point and sometimes charged with market or
even specific channel focal point. They do non desire to blow their clip or put on the line their
money looking for deal information or questionnable expertness. As they go
into markets looking at new chances, they are really sensitive to put on the lining
their company & # 8217 ; s name and repute. Professional experience & # 8230 ; [ truncated
because this program is provided for intents of illustration merely ]
4. 1 Market Segmentation
? Large maker corporations: our most of import market section is the big
maker of high-technology merchandises, such as Apple, Hewlett-Packard, IBM,
Microsoft, Siemens, or Olivetti. These companies will be naming on Progressive
for development maps that are better spun off than managed in-house, and
for market research, and for market forums.
? Medium sized growing companies: peculiarly in package, multimedia, and some
related high growing Fieldss, Triangle will be able to offer an attractive
development option to the company that is direction forced and unable
to turn to chances in new markets and new market sections.
4. 2 Industry Analysis
The confer withing & # 8220 ; industry & # 8221 ; is pulverized and disorganized, 1000s of smaller
confer withing organisations and single advisers for every one of the few
twelve well-known companies.
Consulting is a disorganised industry, with participants runing from major
international name trade name advisers to 10s of 1000s of persons. One of
Progressive & # 8217 ; s challenges will be set uping itself as a & # 8220 ; existent & # 8221 ; confer withing
company, positioned as a comparatively risk free corporate purchase.
4. 2. 1 Industry Participants
The confer withing & # 8220 ; industry & # 8221 ; is pulverized and disorganized, 1000s of smaller
confer withing organisations and single advisers for every one of the few
twelve well-known companies.
At the highest degree are the few good established major names in direction
confer withing. Most of these are organized as partnerships established in major
markets around the universe, linked together by complecting managers and
sharing the name and corporate wisdom. Some evolved from accounting companies
( e.g. Arthur Anderson, Touche Ross ) and some from direction consulting
( McKinsey, Bain ) . These companies charge really high rates for consulting, and
maintain comparatively high overhead constructions and fulfillment constructions based on
spouses selling and junior associates carry throughing. At the intermediate degree are
some map specific or market specific advisers, such as the market
research houses ( IEDC, Dataquest ) or impart development houses ( ChannelCorp,
Channel Strategies, ChannelMark ) .
Some sorts of consulting is little more than contract expertness provided by
person looking for a occupation and offering confer withing services as a stop-gap
step while looking.
4. 2. 2 Distribution Forms
Consulting is sold and purchased chiefly on a viva-voce footing, with
relationships and old experience being by far the most of import factor.
The major name-brand houses have locations in major metropoliss and major markets,
and executive-level directors or spouses develop new concern through industry
associations, concern associations, and Chamberss of commercialism and industry, etc. ,
even in some instances societal associations such as state nines.
The medium-level houses are by and large area-specific or map particular, and
are non easy able to leverage their concern through distribution.
4. 2. 3 Competition and Buying Patterns
The cardinal component in purchase Delaware
cisions made at the Progressive client degree is
trust in the professional repute and dependability of the confer withing house.
4. 2. 4 Main Rivals
? The high-ranking prestigiousness direction consulting:
Strengths: international locations managed by owner-partners with a high degree
of presentation and apprehension of general concern. Enviable reputes
which make purchase of confer withing an easy determination for a director, despite the
really high monetary values. Failings: General concern cognition doesn & # 8217 ; t replacement for
the specific market, channel, and distribution expertness of Triangle, concentrating
on high-technology markets and merchandises merely. Besides, fees are highly expensive,
and work is by and large done by really junior-level advisers, even though sold by
high-ranking spouses.
? The international market research company:
Strengths: International offices, specific market cognition, lasting staff
developing market research information on lasting footing, good relationships
with possible client companies.
Failings: market Numberss are non marketing, non impart development or market
development. Although these companies compete for some of the concern Triangle
is after, they can non truly offer the same degree of concern apprehension at a
high degree.
? Market specific or function-specific experts
Strengths: expertness in market or functional countries. Triangle should non seek to
compete with Normura or Select in their markets with market research, or with
ChannelCorp in channel direction.
Failings: the inability to distribute beyond a specific focal point, or to lift above a
specific focal point, to supply actuial direction expertness, experience, and wisdom
beyond the particulars.
The most important competition is no confer withing at all, companies taking to
make concern development and channel development and market research in-house.
Strengths: no incremental cost except travel ; besides, the general work is done by
the people who are wholly responsible, the be aftering done by those who will
implement. Failings: most directors are awfully overburdened already, unable
to happen incremental resources in clip and people to use to incremental
chances. Besides, there is a batch of extra hazard in market development and
channel development done in house from the land up. Finally, retainer-based
antenna advisers can greatly heighten a company & # 8217 ; s range and widen its
place into conversations that might otherwise ne’er hanve taken topographic point.
4. 3 Market Analysis
As indicated by the illustrations, we must concentrate on a few thousand well-chosen
possible clients in the United States, Europe, and Latin America. These few
thousand hi-tech fabrication companies are the cardinal clients for Progressive.
Potential CustomersCustomersGrowth rate _____________________________
_______________________ U.S. High Tech5,00010 % European
High Tech1,00015 % Latin America250
35 % Other10,0002 % ______________________________
______________________ Total16,250n.a.
5. 0 Strategy Summary
Progressive will concentrate on three geographical markets, the United States, Europe,
and Latin America, and in limited merchandise sections: personal computing machines, package,
webs, telecommunications, personal organisers, and engineering integrating
merchandises. The mark client is normally a director in a larger corporation, and
on occasion an proprietor or president of a moderate-sized corporation in a high-
growing period.
5. 1 Pricing Scheme
Progressive Consulting will be priced at the upper border of what the market will
bear, viing with the name trade name advisers. The pricing fits with the
general placement of Triangle as high-ranking expertness.
Consulting should be based on $ 5,000 per twenty-four hours for undertaking consulting, $ 2,000 per
twenty-four hours for market research, and $ 10,000 per month and up for consideration consulting.
Market research studies should be priced at $ 5,000 per study, which will of
class require that studies be really good planned, focused on really of import
subjects really good presented.
5. 2 Gross saless Forecast
The gross revenues forecast monthly sum-up is included in the appendix. The one-year gross revenues
projections are included here in the undermentioned tabular array.
Gross saless Forecast
Gross saless 1995 1996 1997 ____________________
______________________________________________ Retainer Consulting
$ 200,000 $ 250,000 $ 325,000 Project Consulting $ 270,000
$ 325,000 $ 350,000 Market Research $ 122,000
$ 150,000 $ 200,000 Strategic Reports $ 0 $ 50,000
$ 125,000 Other $ 0 $ 0 $ 0 Sum
Gross saless $ 592,000 $ 775,000 $ 1,000,000
Cost of sales199519961997 ____________________
______________________________________________ Retainer Consulting
$ 30,000 $ 20,000 $ 30,000 Project Consulting
$ 45,000 $ 25,000 $ 31,000 Market Research
$ 84,000 $ 45,000 $ 50,000 Strategic
Reports $ 0 $ 20,000 $ 40,000 Other
$ 0 $ 0 $ 0 Total Cost of Gross saless $ 159,000
$ 110,000 $ 151,000
5. 3 Strategic Alliances
At this composing strategic confederations with Smith and Jones are possibilities,
given the content of bing treatments. Given the background of prospective
spouses, we might besides be speaking to European companies including Mhos and
Olivetti and others, and to United States companies related to Apple Computer.
In Latin America we would be looking at the cardinal local high-technology sellers,
get downing with Printaform.
6. 0 Management Summary
The initial direction squad depends on the laminitiss themselves, with small
back-up. As we grow we will take on extra consulting aid, plus graphic/
column, gross revenues, and selling.
6. 1 Organizational Structure
Progressive should be managed by working spouses, in a construction taken chiefly
from Smith Partners. In the beginning we assume 3-5 spouses:
? Ralph Sampson
? At least one, likely two spouses from Smith and Jones
? One strong European spouse, based in Paris.
The organisation has to be really level in the beginning, with each of the laminitiss
reponsible for his or her ain work and direction.
? One other strong spouse
6. 2 Management Team
The Progressive concern requires a really high degree of international experience
and expertness, which means that it will non be easy leveragable in the common
confer withing company manner in which spouses run the concern and do gross revenues, while
associates fulfill. Partners will needfully be involved in the fulfilment of
the nucleus concern proposition, supplying the expertness to the clients.
The initial forces program is still probationary. It should affect 3-5 spouses,
1-3 advisers, 1 strong editorial/graphic individual with good staff support, 1
strong selling individual, an office director, and a secretary. Later we add more
spouses, advisers and and gross revenues staff.
Founders & # 8217 ; sketchs are included as an extra fond regard to this program.
6. 3 Forces Plan
The elaborate monthly forces program for the first twelvemonth is included in the
appendices. The one-year personal estimations are included here as Table 5.
Forces Plan
199519961997 ____________________
_____________________________________________
Spouses $ 144,000 $ 175,000 $ 200,000 Advisers
$ 0 $ 50,000 $ 63,000 Editorial/graphic
$ 18,000 $ 22,000 $ 26,000 VP Selling
$ 20,000 $ 50,000 $ 55,000 Gross saless people
$ 0 $ 30,000 $ 33,000 Office Manager $ 7,500
$ 30,000 $ 33,000 Secretarial $ 5,250
$ 20,000 $ 22,000 Other $ 0 $ 0
$ 0 Subtotal $ 194,750 $ 377,000 $ 432,000
7. 0 Fiscal Plan
We will keep a conservative fiscal scheme, based on developing capital
for future growing.
7. 1 Important Premises
The tabular array in this subdivision summarizes cardinal fiscal premises, including 45-day
mean aggregation yearss, gross revenues wholly on invoice footing, disbursals chiefly on cyberspace
30 footing, 35 yearss on norm for payment of bills, and contemporary involvement
rates.
General Assumptions
199519961997 ____________
_____________________________________________________________
Collection days434545
Payment Days353535
199519961997 ____________
_____________________________________________________________ Short Term
Interest Rate8.00 % 8.00 % 8.00 % Long Term Interest Rate
10.00 % 10.00 % 10.00 % Payment yearss
353535 Tax Rate Percent0.00 %
0.00 % 0.00 % Expenses in hard currency % 25.00 % 25.00 %
25.00 % Gross saless on credit100.00 %
100.00 % 100.00 % Personnel Burden % 14.00 %
14.00 % 14.00 %
7.2 Cardinal Financial Indexs
The chart summarizes cardinal fiscal benchmarks. Unfortunately, as we increase
gross revenues we will hold to demo a diminution in public presentation of aggregation yearss and gross
border.
7. 3 Break-even Analysis
Break Even Analysis: ___________________________________________________ Monthly
Unit of measurements Break-even125,000 Monthly Gross saless Break-even
$ 125,000
Premises: Average Unit Sale $ 1.00 Average Per-Unit Cost
$ 0.20 Fixed Cost $ 100,000
7. 4 Jutting Net income and Loss
The elaborate monthly pro-forma income statement for the first twelvemonth is included
in the appendices. The one-year estimations are included here.
Pro-forma Income Statement
199519961997 ____________
_____________________________________________________________ Gross saless
$ 592,000 $ 775,000 $ 1,000,000 Cost of Gross saless
$ 159,000 $ 110,000 $ 151,000 Other
$ 1,000 $ 0 $ 0
_________________________________________________
Entire Cost of Gross saless $ 160,000 $ 110,000 $ 151,000 Gross
margin $ 432,000 $ 665,000 $ 849,000 Gross border
percent72.97 % 85.81 % 84.90 % Operating
disbursals: Advertising/Promotion10.00 % $ 36,000
$ 40,000 $ 44,000 Public Relations10.00 % $ 30,000
$ 30,000 $ 33,000 Travel10.00 %
$ 90,000 $ 60,000 $ 110,000 Miscellaneous
10.00 % $ 6,000 $ 7,000 $ 8,000 Payroll disbursal
$ 194,750 $ 377,000 $ 432,000 Leased Equipment $ 6,000
$ 7,000 $ 7,000 Utilities20 % $ 12,000
$ 14,000 $ 17,000 Insurance20 % $ 3,600
$ 2,000 $ 2,000 Depreciation $ 0
$ 0 $ 0 Rent25 %
$ 18,000 $ 23,000 $ 29,000 Payroll Burden
$ 0 $ 0 $ 0 Contract/Consultants
$ 0 $ 0 $ 0 Other $ 0
$ 0 $ 0
_________________________________________________
Entire Operating Expenses $ 396,350 $ 560,000 $ 682,000 Net income
Before Interest and Taxes $ 35,650 $ 105,000 $ 167,000
Interest Expense ST $ 3,600 $ 12,800 $ 12,800
Interest Expense LT $ 5,000 $ 5,000 $ 5,000 Taxes
Incurred $ 0 $ 0 $ 0 Net Net income
$ 27,050 $ 87,200 $ 149,200 Internet
Profit/Sales4.57 % 11.25 % 14.92 %
7. 5 Jutting Cash Flow
Cash flow projections are critical to our success. The monthly hard currency flow is
shown in the illustration, with one saloon stand foring the hard currency flow per month and
the other the monthly balance. The one-year hard currency flow figures are included here.
Detailed monthly Numberss are included in the appendices.
Pro-Forma Cash Flow
199519961997 ____
________________________________________________________________________________
Net Net income: $ 27,050 $ 87,200
$ 149,200 Plus: Depreciation $ 0
$ 0 $ 0 Change in Accounts Payable $ 49,413
$ 16,799 $ 13,764 Current Borrowing ( refund )
$ 60,000 $ 100,000 $ 0 Increase ( lessening ) Other
Liabilitiess $ 0 $ 0 $ 0 Long-run Borrowing
( refund ) $ 50,000 $ 0 $ 0 Capital
Input $ 0 $ 0 $ 0
Subtotal $ 186,463 $ 203,999 $ 162,964
Less:190519051905
Change in Accounts Receivable $ 94,000 $ 5,750
$ 50,500 Change in Inventory $ 0 $ 0
$ 0 Change in Other ST Assets $ 0 $ 0 $ 0
Capital Expenditure $ 0 $ 0 $ 0
Dividends $ 0 $ 0 $ 0
Subtotal $ 94,000 $ 5,750
$ 50,500 Net Cash Flow $ 92,463
$ 198,249 $ 112,464 Cash balance $ 117,463
$ 315,712 $ 428,176
7. 6 Projected Balance Sheet
The balance sheet shows healthy growing of net worth, and strong fiscal
place. The monthly estimations are included in the appendices.
Pro-forma Balance Sheet
199519961997 ____
________________________________________________________________________________
Short-run AssetsStarting Balances Cash $ 25,000
$ 117,463 $ 315,712 $ 428,176 Accounts receivable $ 0
$ 94,000 $ 99,750 $ 150,250 Inventory $ 0
$ 0 $ 0 $ 0 Other Short-run Assets $ 7,000
$ 7,000 $ 7,000 $ 7,000 Total Short-term Assetss
$ 32,000 $ 218,463 $ 422,462 $ 585,426 Long-run
Assetss Capital Assets $ 0 $ 0 $ 0
$ 0 Accumulated Depreciation $ 0 $ 0 $ 0 $ 0 Sum
Long-run Assets $ 0 $ 0 $ 0 $ 0
_________________________________________________ Total
Assetss $ 32,000 $ 218,463 $ 422,462 $ 585,426
Debt and Equity
199519961997 ____
________________________________________________________________________________
Histories Collectible $ 5,000 $ 54,413 $ 71,212
$ 84,976 Short-run Notes $ 0 $ 60,000
$ 160,000 $ 160,000 Other ST Liabilities $ 0 $ 0
$ 0 $ 0 Subtotal Short-run Liabilitiess
$ 5,000 $ 114,413 $ 231,212 $ 244,976
Long-run Liabilities $ 0 $ 50,000 $ 50,000
$ 50,000 Total Liabilities $ 5,000 $ 164,413
$ 281,212 $ 294,976
Paid in Capital $ 50,000 $ 50,000
$ 50,000 $ 50,000 Retained Net incomes ( $ 23,000 )
( $ 23,000 ) $ 4,050 $ 91,250 Earnings $ 0
$ 27,050 $ 87,200 $ 149,200 Total Equity
$ 27,000 $ 54,050 $ 141,250 $ 290,450 Sum
Debt and Equity $ 32,000 $ 218,463 $ 422,462
$ 585,426 Net Worth $ 27,000 $ 54,050
$ 141,250 $ 290,450
7. 7 Business Ratios
Progressive Consulting will be formed as a confer withing company specialising in
selling of high-technology merchandises in international markets. Its laminitiss are
former sellers of confer withing services, personal computing machines, and market research,
all in international markets. They are establishing Progressive to formalise the
confer withing services they offer.
Ratio Analysis
Profitability Ratios:199519961997 ____________
________________________________________________________ Gross border
72.97 % 85.81 % 84.90 % Net net income border
4.57 % 11.25 % 14.92 % Return on Assets12.38 %
20.64 % 25.49 % Return on Equity50.05 %
61.73 % 51.37 %
Activity Ratios: AR Turnover6.307.77
6.66 Collection days294545
Inventory Turnover0.000.000.00 Accts
collectible turnover7.677.067.35 Entire plus
turnover2.711.831.71
Debt Ratios:199519961997 ____________
________________________________________________________ Debt to sack Worth
3.041.991.02 Short-run Debt to Liab.0.70
0.820.83
Liquidity Ratios: Current Ratio1.911.83
2.39 Quick Ratio1.911.83
2.39 Net Working Capital $ 104,050 $ 191,250 $ 340,450
Interest Coverage4.155.909.38
Additional Ratios:199519961997 ____________
_________________________________________________________ Asset
