Aftermarket Internet Applications - Financial Plan
FINANCIAL PLAN
We are predicting that the business will grow at a relatively rapid rate. Fortunately, financing that growth will not be much of an issue due to a low number of fixed costs. Our major expense by far is salary at over 50 percent of the total expenditure per year. As long as collection goes well, these salaries will be covered with profits to spare. Part of our strategic plan is to offset the major e-commerce projects with smaller web design projects to keep our cash flow in good standing. Keep in mind that we are assuming start-up capital of $94,162. This will be the only long-term loan required for AutoAftermarket.com, at least for the first 3 years.
Important Assumptions
AutoAftermarket.com recognizes that collection days are critical. We will make it a corporate goal to keep collections within 30 days. We are assuming that we will do a fairly good job at collecting. Interest rates, tax rates, and personnel compensation are based on...
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