CSSC MOORINGS BUSINESS PLAN
A BUSINESS PLAN FOR TURRET AND MOORING SYSTEMS EPCIC COMPANY
Singapore p. [Telephone] [Email]
f. [Fax] [Web address]
TABLE OF CONTENTS
I. Executive Summary............................................................................................. 2
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business....................................................................................... 4
Company Ownership/Legal Entity
Location
Interior
Hours of Operation
Products and Services
Suppliers
Service
Manufacturing
Management
Financial Management
Start-Up/Acquisition Summary
III. Marketing........................................................................................................... 6
Market Analysis
Market Segmentation
Competition
Pricing
IV. Appendix.......................................................................................................... 10
Start-Up Expenses
Determining Start-Up Capital
Cash Flow
Income Projection Statement
Profit and Loss Statement
Balance Sheet
Sales Forecast
Milestones
Break-Even Analysis
Miscellaneous Documents
EXECUTIVE SUMMARY
CSSC MOORINGS PTE LTD will be formed as an Engineering, Procurement and Construction (EPC) firm
specializing in offshore oil and gas floating systems with focus on hydrodynamics, design and engineering of
mooring systems, turrets and CALM buoys, their component systems design/selection and supply, structural
design, analysis and interfacing with the mechanical components, coordination and interfacing with various
subcontractors and interact with fabrication yards during the construction phase.
The key team resumes are included herewith under Appendix A. With a vast amount of experience in the
FPSO industry; hands-on approach using the state-of-the-art technology and software, involvement directly in
the design development, engineering and implementation of several FPSOs including YARD FAT and
component design and manufacturing to the rigid tolerances are all strengths of the team.
HIGHLIGHTS
The intent of CSSC MOORINGS PTE LTD is for the firm to be in collaboration with CSSC and under the CSSC
label. The prime objective of the firm is to be an extension of CSSC’s presence in South East Asia and expansion
into the offshore Oil and Gas industry with added benefit of having fabrication yard in the region.
$110,000,00
Financial Overview
$95,000,000
Sales Net Profit
$120,000,000
0
$45,000,000
$100,000,000
$40,000,000
$80,000,000
$15,000,000
$60,000,000
$5,000,000
$2,000,000
$1,500,000
$1,300,000
$1,200,000
$700,000
$300,000
$40,000,000
$20,000,000
$0
2019 2020 2021 2022
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 2
OBJECTIVES
Head of Turret
Mooring Systems
Balakrishna
Menon
Secretary
Yuwana
Mokhtar
Moorings and Construction
Turret & Swivels
Hydrodynamics Coordination
Manager
Manager
Murali Sangeeth Team
TBD
Krishna Pillai
a) Start an office based in Singapore as a wholly/partially owned subsidiary of CSSC shipyards which will
require to house around 10 engineers and with the required software as detailed in Appendix B2.
b) The setting up of office is expected to take about 4 months from approval of budget and receipt of
funds.
c) The first year (soon after functional office) takes up the first arrangement/project made to meet the
overheads till 2nd year and CAPEX of setting up the office. (Purely Engineering and Drawings)
d) The second-year target larger projects with engineering and procurement of main components with
an aim of achieving 10% of the revenue as profit.
e) The third-year target will be to increase the profits and inclusion of fabrication scope as well, to
complete a project as a full-fledged EPC contractor for offshore mooring systems.
MISSION STATEMENT
Our mission is to translate the vast experience gained by highly skilled professionals in the field of floating
system moorings selection into an extremely competent service, which will benefit in the increase of profits as
well as in providing both parties a technological edge in the offshore engineering industry.
KEYS TO SUCCESS
a) Compact team of professionals providing quality services on time and within budget
b) Engineer and design cost-effective solutions based on simple, field proven and robust concepts.
c) Effective communication, interfacing and interactions with various stake holders to avoid any hold-
ups on construction and/or quality related issues/delays.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 3
DESCRIPTION OF BUSINESS
WHAT THE FIRM DOES
The new firm is in the business of offering EPCIC and specialized services of hydrodynamics, design and engineering
of mooring systems, turret moorings systems and CALM buoys, their component systems design/selection and
supply, structural design, analysis and interfacing with the mechanical components, coordination and interfacing
with various subcontractors and interact with fabrication yards during the construction phase.
WHAT IS IT THAT MAKES THIS FIRM UNIQUE
The key features that make this firm unique are:
the unusual mix of hands-on approach using the state-of-the-art technology and software,
right men behind the machines and their innovative methods developed from experience,
involvement directly in the design development, engineering and implementation of several FPSOs
including component design, YARD FAT and
manufacturing to the rigid tolerances and quality control procedures as stipulated by the design.
SPECIAL FEATURES THAT MAKES THE FIRM ATTRACTIVE TO POTENTIAL CUSTOMERS
Compact team of professionals providing quality services on time and within budget
Engineer and design cost-effective solutions based on simple, field proven and robust concepts.
Effective communication, interfacing and interactions with various stake holders to avoid any hold-ups on
construction and/or quality related issues/delays
COMPANY'S PRIMARY GOALS AND OBJECTIVES
To be recognised as a world class provider of Innovative, Safe, Reliable and Cost-effective services to the Energy
Industry.
COMPANY OWNERSHIP/LEGAL ENTITY
The firm will be a newly formed private limited type of company set-up based out of Singapore as a subsidiary to
CSSC Shipyard. There are two options for this kind of partnership in Singapore: -
a) A wholly owned subsidiary of the holding company as registered in Singapore – not advisable because of
the increase in taxes and other increased charges.
b) A private limited company based in Singapore but with stock options by CSSC. This would require a
Singapore citizen in the director board, which would suite.
c) Since, CSSC has already an office in Singapore, this new setup could be part of that as an expansion.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 4
PRODUCTS AND SERVICES
Describe your products or services and why there is a demand for them. What is the
potential market? How do they benefit customers? What about your products or
services gives you a competitive edge?
If you are selling several lines of products or services, describe what’s included. Why
did you choose this balance of offerings? How do you adjust this balance to respond to
market demands?
For product-based businesses, do you have or need inventory controls? Do you have
to consider “lead time” when reordering any items? Do you need an audit or security
system to protect inventory?
Note:
If your products and/or services are more important than your location, move this topic
before location and hours of business.
If you are providing only products or only services, delete the part of this heading that is
inappropriate.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 5
SERVICE
Whether your business products or services, use this section to address the level and
means of service that you provide to customers, before, during, and after the sale.
How do you make your service(s) stand out against the competition?
MANUFACTURING
Does your business manufacture any products? If so, describe your facilities and any
special machinery or equipment.
Without revealing any proprietary information, describe the manufacturing procedure.
If not already covered in the Products and Services section, describe how will you sell
the products you manufacture—Directly to the public? Through a wholesaler or
distributor? Other?
How will you transport your products to market?
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 6
MANAGEMENT
The leadership of the firm will comprise of highly qualified, specialized and experienced engineers who have been
involved in several real time engineering and project executions for various clients worldwide. The track record
made by the very same leadership in developing and completing the major turret and mooring systems in the past
5 years, working as an integrated team in all critical decision making and leading a lean group of young engineers
efficiently and effectively are the main strengths of the proposed management. The management will have access
to specialist talents when it comes to expanding the engineering and the right contacts of renowned vendors and
quality fabrication yards when it comes to expanding EPC role. To set the right framework of guidelines and
standard procedures to manage a vendor/fabricator are part of the management know-how.
QUALIFICATIONS AND BACKGROUND BRIEF
BALAKRISHNA MENON with about 33 years of experience in ship design, building, offshore engineering
industries has been involved in several engineering projects which includes around 20 offshore oil and gas projects.
He has a Master of Science degree in Offshore Technology from University of Strathclyde, UK. His main strengths
are managing engineering team and projects, developing strategy and procedures for design and engineering,
conceptualizing the design, guiding and mentoring young talent to grow and play along, managing to resolve and
problem-solving during engineering conflicts/clashes during representation at yard/offshore.
MURALI KRISHNA KARAVADI
SANGEETH PILLAI is a Naval Architect with a broad multidisciplinary background, an analytical mind and
excellent organizational, distinct leadership/coordination skills and expertise in Turret mooring system design,
Finite element analysis, Maintenance regime planning for offshore floating facility mooring systems. He has 20
years of experience in Marine and Offshore industry with 14 years in Oil and gas and 11 years in managerial roles.
He has 2 inventions in his name with Patent Applications pending on Turret Mechanical Systems.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 7
LOCATION
The location of this office setup can be anywhere in Singapore. The idea is to have a smaller office for the initial 2
years and then move to a larger space with/without fabrication space from the 3 rd year onwards, when larger EPC
projects are taken on.
Since CSSC has a Shipyard in Vietnam, the turrets and mooring system projects fabrication and assembly can be
executed there for the larger EPC based projects.
INTERIOR
The interior of the facility to house conference spaces with Video Conferencing facilities with clients as required.
HOURS OF OPERATION
The hours of operation as planned shall be from 9am to 6pm Singapore time.
FINANCIAL MANAGEMENT
a) Start an office based in Singapore as a wholly/partially owned subsidiary of CSSC shipyards which will
require to house around 10 engineers and with the required software as detailed in Appendix B2.
b) The setting up of office is expected to take about 4 months from approval of budget and receipt of funds.
c) The first year (soon after functional office) takes up the first arrangement/project made to meet the
overheads till 2nd year and CAPEX of setting up the office. (Purely Engineering and Drawings)
d) The second-year target larger projects with engineering and procurement of main components with an
aim of achieving 10% of the revenue as profit.
e) The third-year target will be to increase the profits and inclusion of fabrication scope as well, to complete
a project as a full-fledged EPC contractor for offshore mooring systems.
START-UP/ACQUISITION SUMMARY
Summarize key details concerning the starting or acquisition of your business. (If this
is not applicable to your business, delete.
As noted in the preceding section, include your table of start-up or acquisition costs in
the Appendix.
MARKETING
How well you market your business can play an important role in its success or failure.
It is vital to know as much about your potential customers as possible—who they are,
what they want (and don’t want), and expectations they may have.
MARKET ANALYSIS
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 8
What is your target market? (Who is most likely to buy your products or use your
services?) What are the demographics? What is the size of your potential customer
base?
Where are they? How are you going to let them know who and where you are and what
you have to offer?
If you believe that you have something new, innovative or that isn’t generally
available: How do you know that there is a market for it—that people are willing to pay
for what you have to offer?
Consider the market you are trying to reach: Is it growing, shrinking or static?
What percentage of the market do you think you will be able to reach? How will you be
able to grow your market share?
Note: You might include a chart, such as the one that follows, to demonstrate key
points about your market potential at-a-glance.
Not available as they do their own turret
Market Segment that is available
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 9
Local Market Growth
% growth over prior period
40% Potential
35% Customers
30% New Homes
25% New Businesses
20%
15%
10%
5%
0%
2008 2012 2016
MARKET SEGMENTATION
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 10
M a r LMC
k et Segments
Orwell
Promor
2%2%
6% SBM
Bluewater SOFEC
10% APL
Bluewa
SBM
ter
40%
APL
15%
SOFEC
25%
COMPETITION
CAN Turrets BW Offshore
SOFEC Inc Modec
SBM SBM
Bluewater Bluewater
LMC EMAS
Promor
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 11
Orwell Offshore
PRICING
How have you developed your pricing policy?
Which of the following pricing strategies might best suit your business? Retail cost and
pricing, competitive position, pricing below competition, pricing above competition,
multiple pricing, price lining, pricing based on cost-plus-markup, or other?
What are your competitors’ pricing policies and how does yours compare? Are your
prices in line with industry averages?
How will you monitor prices and overhead to ensure that your business will operate at
a profit?
How do you plan to stay abreast of changes in the marketplace, to ensure that your
profit margins are not adversely affected by new innovations or competition?
ADVERTISING AND PROMOTION
How do you intend to advertise your business?
Which of the following advertising and promotion options offer you the best chances of
successfully growing your business? Directory services, social networking websites,
media (newspaper, magazine, television, radio), direct mail, telephone solicitation,
seminars and other events, joint advertising with other companies, sales
representatives, word-of-mouth, other?
How will you determine your advertising budget?
How will you track the results of your advertising and promotion efforts?
Will you advertise on a regular basis or will you be conducting seasonal campaigns?
How will your products be packaged? Have you done research to see what type of
packaging will best appeal to your customers? Have you done a cost analysis of
different forms of packaging?
STRATEGY AND IMPLEMENTATION
Now that you have described the important elements of your business, you may want
to summarize your strategy for their implementation. If your business is new, prioritize
the steps you must take to open your doors for business. Describe your objectives and
how you intend to reach them and in what time parameters.
Planning is one of the most overlooked but most vital parts of your business plan to
ensure that you are in control (as much as possible) of events and the direction in
which your business moves. What planning methods will you utilize?
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 12
APPENDIX
START-UP EXPENSES
Business Licenses
Incorporation Expenses
Deposits
Bank Account
Rent
Interior Modifications
Equipment/Machinery Required:
Item 1
Item 2
Item 3
Total Equipment/Machinery
Insurance
Stationery/Business Cards
Brochures
Pre-Opening Advertising
Opening Inventory
Other (list):
Item 1
Item 2
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 13
DETERMINING START-UP CAPITAL
1. Begin by filling in the figures for the various types of expenses in the cash flow table on the following page.
2. Start your first month in the table that follows with starting cash of $0, and consolidate your “cash out” expenses from your cash flow
table under the three main headings of rent, payroll and other (including the amount of unpaid start-up costs in “other” in month 1).
3. Continue the monthly projections in the table that follows until the ending balances are consistently positive.
4. Find the largest negative balance—this is the amount needed for start-up capital in order for the business to survive until the break-
even point when all expenses will be covered by income.
5. Continue by inserting the amount of needed start-up capital into the cash flow table as the starting cash for Month 1.
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
Starting cash $0.00
Cash In:
Cash Sales Paid
Receivables
Total Cash In
Cash Out:
Rent
Payroll
Other
Total Cash Out
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 14
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
Ending Balance
CHANGE (CASH
FLOW)
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 15
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
Starting cash
Cash In:
Cash Sales
Receivables
Total Cash Intake
Cash Out
(expenses):
Rent
Utilities
Payroll (incl.
taxes)
Benefits
Loan Payments
Travel
Insurance
Advertising
Professional fees
Office supplies
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 16
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Postage
Telephone
Internet
Bank fees
Total Cash Outgo
ENDING BALANCE
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 17
INCOME PROJECTION STATEMENT
The Income Projection Statement is another management tool to preview the amount of income generated each month based on
reasonable predictions of the monthly level of sales and costs/expenses. As the monthly projections are developed and entered,
these figures serve as goals to control operating expenses. As actual results occur, a comparison with the predicted amounts
should produce warning bells if costs are getting out of line so that steps can be taken to correct problems.
The Industrial Percentage (Ind. %) is calculated by multiplying costs/expenses by 100% and dividing the result by total net
sales. It indicates the total sales that are standard for a particular industry. You may be able to get this information from trade
associations, accountants, banks, or reference libraries. Industry figures are a useful benchmark against which to compare the
costs/expenses of your own business. Compare your annual percentage with the figure indicated in the industry percentage
column.
The following is an explanation for some of the terms used in the table that follows:
Total Net Sales (Revenue): This figure is your total estimated sales per month. Be as realistic as possible, taking into
consideration seasonal trends, returns, allowances, and markdowns.
Cost of Sales: To be realistic, this figure must include all the costs involved in making a sale. For example, where inventory is
concerned, include the cost of transportation and shipping. Any direct labor cost should also be included.
Gross Profit: Subtract the cost of sales from the total net sales.
Gross Profit Margin: This is calculated by dividing gross profits by total net sales.
Controllable Expenses: Salaries (base plus overtime), payroll expenses (including paid vacations, sick leave, health insurance,
unemployment insurance and social security taxes), cost of outside services (including subcontracts, overflow work and special or
one-time services), supplies (including all items and services purchased for use in the business), utilities (water, heat, light, trash
collection, etc.), repair and maintenance (including both regular and periodic expenses, such as painting), advertising, travel and
auto (including business use of personal car, parking, and business trips), accounting and legal (the cost of outside professional
services).
Fixed Expenses: Rent (only for real estate used in business), depreciation (the amortization of capital assets), insurance (fire,
liability on property or products, workers’ compensation, theft, etc.), loan repayments (include the interest and principal payments
on outstanding loans to the business), miscellaneous (unspecified, small expenditures not included under other accounts or
headings).
Net Profit/Loss (Before Taxes): Subtract total expenses from gross profit.
Taxes: Inventory, sales, excise, real estate, federal, state, etc.
Net Profit/Loss (After Taxes): Subtract taxes from net profit before taxes.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 18
Annual Total: Add all monthly figures across the table for each sales and expense item.
Annual Percentage: Multiply the annual total by 100% and divide the result by the total net sales figure. Compare to industry
percentage in first column.
Ind. Annual Annual
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
% Total %
Est. Net Sales 5000 5000 2000 12000 50000 110000 40000 7000 5000 4000 9000 2000 251000
Cost Of Sales 1000 3000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Gross Profit 4000 2000 0 10000 48000 108000 38000 5000 3000 2000 7000 0 227000
Controllable Expenses:
Salaries/Wages 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 1440000
Payroll Expenses 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400
Legal/Accounting 240 120 120 120 120 120 120 120 120 120 120 120 1560
Advertising 500 500 200 1200 5000 11000 4000 700 500 400 900 200 25100
Travel/Auto 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400
Dues/Subs.
Utilities 600 600 600 600 600 600 600 600 600 600 600 600 7200
Misc.
12812 13412
Total Controllable Exp. 123740 123620 123320 124320 127120 123820 123620 123520 124020 123320 1502660
0 0
Fixed Expenses:
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Depreciation
Insurance 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000
Permits/Licenses 100000 0 0 0 0 0 0 0 0 0 0 0 100000
Loan Payments
Misc.
Total Fixed Expenses 111000 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000 232000
13912 14512
Total Expenses 234740 134620 134320 135320 138120 134820 134620 134520 135020 134320 1734660
0 0
Net Profit/Loss Before
Taxes
-230740 -132620 -134320 -125320 -91120 -37120 -100120 -129820 -131620 -132520 -128020 -134320 -1507660
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 19
Taxes 400 200 0 1000 4800 10800 3800 500 300 200 700 0 22700
Net Profit/Loss - - - - - - - - - - -
- -
23114 13282 13432 12632
95920 47920
10392 13032 13192 13272 12872 13432 153036
After Taxes 0 0 0 0 0 0 0 0 0 0 0
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 20
PROFIT AND LOSS STATEMENT
This table essentially contains the same basic information as the income projection
statement. Established businesses use this form of statement to give comparisons
from one period to another. Many lenders may require profit and loss statements for
the past three years of operations.
Instead of comparing actual income and expenses to an industrial average, this form
of the profit and loss statement compares each income and expense item to the
amount that was budgeted for it. Most computerized bookkeeping systems can
generate a profit and loss statement for the period(s) required, with or without budget
comparison.
PROFIT AND LOSS, BUDGET VS. ACTUAL: ( [STARTING MONTH, YEAR] —[ENDING MONTH, YEAR])
[Starting Month, Year]—
[Ending Month, Year] Budget Amount over Budget
Income:
Sales
Other
Total Income
Expenses:
Salaries/Wages
Payroll Expenses
Legal/Accounting
Advertising
Travel/Auto
Dues/Subs.
Utilities
Rent
Depreciation
Permits/Licenses
Loan Repayments
Misc.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 21
[Starting Month, Year]—
[Ending Month, Year] Budget Amount over Budget
Total Expenses
NET PROFIT/LOSS
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 22
BALANCE SHEET
Following are guidelines for what to include in the balance sheet: (For use in
established businesses)
Assets: Anything of value that is owned or is legally due to a business. Total assets
include all net values; the amounts that result from subtracting depreciation and
amortization from the original cost when the asset was first acquired.
Current Assets:
Cash—Money in the bank or resources that can be converted into cash within 12
months of the date of the balance sheet.
Petty Cash—A fund of cash for small, miscellaneous expenditures.
Accounts Receivable—Amounts due from clients for merchandise or services.
Inventory—Raw materials on hand, work-in-progress, and all finished goods (either
manufactured or purchased for resale).
Short-term Investments—Interest or dividend-yielding holdings expected to be
converted to cash within a year; stocks, bonds, certificates of deposit and time-deposit
savings accounts. These should be shown at either their cost or current market value,
whichever is less. Short-term investments may also be called “temporary investments”
or “marketable securities.”
Prepaid Expense—Goods, benefits or services that a business pays or rents in
advance, such as office supplies, insurance or workspace.
Long-term Investments—Holdings that a business intends to retain for at least a
year. Also known as long-term assets, these are usually interest or dividend paying
stocks, bonds or savings accounts.
Fixed Assets—This term includes all resources that a business owns or acquires for
use in its operations that are not intended for resale. They may be leased rather than
owned and, depending upon the leasing arrangements, may have to be included both
as an asset for the value and as a liability. Fixed assets include land (the original
purchase price should be listed, without allowance for market value), buildings,
improvements, equipment, furniture, vehicles.
Liabilities:
Current Liabilities: Include all debts, monetary obligations, and claims payable
within 12 months.
Accounts Payable—Amounts due to suppliers for goods and services purchased for
the business.
Notes Payable—The balance of the principal due on short-term debt, funds borrowed
for the business. Also includes the current amount due on notes whose terms exceed
12 months.
Interest Payable—Accrued amounts due on both short and long-term borrowed
capital and credit extended to the business.
Taxes Payable—Amounts incurred during the accounting period covered by the
balance sheet.
Payroll Accrual—Salaries and wages owed during the period covered by the balance
sheet.
Long-term Liabilities—Notes, contract payments, or mortgage payments due over a
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 23
period exceeding 12 months. These should be listed by outstanding balance less the
current position due.
Net Worth—Also called owner’s equity. This is the amount of the claim of the
owner(s) on the assets of the business. In a proprietorship or partnership, this equity is
each owner’s original investment plus any earnings after withdrawals.
Most computerized bookkeeping systems can generate a balance sheet for the
period(s) required.
Note: Total assets will always equal total liabilities plus total net worth. That is, the
bottom-line figures for total assets and total liabilities will always be the same.
Assets Liabilities
Current Assets: Current Liabilities:
Cash: Accounts Payable
Petty Cash Notes Payable
Accounts Receivable Interest Payable
Inventory Taxes Payable:
Short-Term Federal Income Tax
Investment
State Income Tax
Prepaid Expense
Self-Employment Tax
Long-Term Investment
Sales Tax (SBE)
Fixed Assets:
Property Tax
Land
Payroll Accrual
Buildings
Long-Term Liabilities
Improvements
Notes Payable
Equipment
NET
Furniture WORTH/OWNER’S
EQUITY/RETAINED
Automobiles/Vehicle EARNINGS
s
Other Assets:
Item 1
Item 2
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 24
Assets
Item 3
Total Assets: Total Liabilities:
SALES FORECAST
This information can be shown in chart or table form, either by months, quarters or
years, to illustrate the anticipated growth of sales and the accompanying cost of sales.
MILESTONES
This is a list of objectives that your business may be striving to reach, by start and
completion dates, and by budget. It can also be presented in a table or chart.
BREAK-EVEN ANALYSIS
Use this section to evaluate your business profitability. You can measure how close
you are to achieving that break-even point when your expenses are covered by the
amount of your sales and are on the brink of profitability.
A break-even analysis can tell you what sales volume you are going to need in order to
generate a profit. It can also be used as a guide in setting prices.
There are three basic ways to increase the profits of your business: generate more
sales, raise prices, and/or lower costs. All can impact your business: if you raise prices,
you may no longer be competitive; if you generate more sales, you may need added
personnel to service those sales which would increase your costs. Lowering the fixed
costs your business must pay each month will have a greater impact on the profit
margin than changing variable costs.
Fixed costs: Rent, insurance, salaries, etc.
Variable costs: The cost at which you buy products, supplies, etc.
Contribution Margin: This is the selling price minus the variable costs. It measures
the dollars available to pay the fixed costs and make a profit.
Contribution Margin Ratio: This is the amount of total sales minus the variable
costs, divided by the total sales. It measures the percentage of each sales dollar to pay
fixed costs and make a profit.
Break-even Point: This is the amount when the total sales equals the total expenses.
It represents the minimum sales dollar you need to reach before you make a profit.
Break-even Point in Units: For applicable businesses, this is the total of fixes costs
divided by the unit selling price minus the variable costs per unit. It tells you how
many units you need to sell before you make a profit.
Break-even Point in Dollars: This is the total amount of fixed costs divided by the
contribution margin ratio. It is a method of calculating the minimum sales dollar to
reach before you make a profit.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 25
Note: If the sales dollars are below the break-even point, your business is losing
money.
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 26
MISCELLANEOUS DOCUMENTS
In order to back up the statements you may have made in your business plan, you
may need to include any or all of the following documents in your appendix:
Personal resumes
Personal financial statements
Credit reports, business and personal
Copies of leases
Letter of reference
Contracts
Legal documents
Personal and business tax returns
Miscellaneous relevant documents.
Photographs
CSSC MOORINGS BUSINESS PLAN - DECEMBER 2019 27
