Business plan

Topic: Business Plan: "Laas-Geel Travel Agency " Business Plans Handbook. Laas-Geel Travel Agency.vol. 01 Mardooji'Jeex Hargeisa Somaliland 1_6 Business Plans Handbooks. 11/8/2020 Title: Laas-Geel Travel Agency Document Type: Business plan, Laas-Geel Travel Agency 1.0 EXECUTIVE SUMMARY 2.0 Company znd Financial Summary: 4.0 Strastrategic and Market Analysis: 4.2 Industry Analysis 5.0 Marketing Plan: 6.0 OR organizational Plan and Personal Summary: All Regions in Somaliland found Laas-Geel Travel Agency 18 Pepsi St. Pepsi Hargeisa Somaliland Laas-Geel Travel Agency.com Laas-Geel Travel Agency Is a Hargeisa -based corporation that will develop a best travel agency in all parts of the regions in Somaliland area. 1.0 EXECUTIVE SUMMARY The purpose of this business plan is to raise $175,000 for the development of Laas-Geel Travel Agency while showcasing the expected financials and operations over the next three years. Laas-Geel Travel Agency is a regional Travel Agency which is in Somaliland based corporation that will develop best Travel Agency throutgh out all the regions in the country.The small business Company is founded by a group of persons who own the Company “ Laas-Geel Travel Agency. Laas-Geel Travel Agency intends to serve a wide variety of entre as that will be in Hargeisa Somaliland origin. These entrees include passengers , Cargo etc. Additionally, the business will offer a wide variety of other argent services which Management expects will generate a significant portion of the Company's revenues and profits. 1.2 Financing We are seeking to raise $175,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the location • Financing for the first six months of operation • Capital to purchase kitchen equipment • Working capital We will contribute $25,000 to the venture. 1.3 Mission Statement Our mission mission is to provide customers with an outstanding line of Somaliland best Vehicle Travel Agency while concurrently remaining within the letter of the law regarding the services in the State of Maroodijeex Hargeisa and the other regions in Somaliland area. 1.4 Management Team The Company is founded by a group of persons. We are new Company established this in this year as we hope we would soon get a widen of experience in the Travel services industry. Through our expertise, we will be able to bring the operations of the business to profitability within our first year of operations. 1.5 Sales Forecasts Laas-Geel Travel Agency expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proforma profit and loss (yearly) Proforma profit and loss (yearly) Year 1 2 3 Sales $710,790 $781,869 $860,056 Operating costs $343,912 $356,898 $370,495 EBITDA $126,680 $160,753 $198,921 Taxes, interest, and depreciation $ 74,144 $ 80,623 $ 94,407 Net profit $ 52,536 $ 80,130 $104,514 Sales, operating costs, and profit forecast 1.6 Expansion Plan We expect that the business will aggressively expand during the first three years of operation. We intend to implement marketing campaigns that will effectively target individuals within the target market of Pepsi and the surrounding communities. We may also seek to increase the number of locations we own after the fifth year of operations. 2.0 Company and Financing Summary. 2.1 Registered Name and Corporate Structure Laas-Geel Travel Agency is registered as a corporation in the States of the Somaliland Country. 2.2 Required Funds At this time, the company requires $175,000 of debt funds. Below is a breakdown of how these funds will be used: Projected startup costs Projected startup costs Initial lease payments and deposits $ 25,000 Working capital $ 40,000 FF&E $ 20,000 Leasehold improvements $ 35,000 Security deposits $ 15,000 Insurance $ 5,000 Kitchen equipment $ 45,000 Marketing budget $ 10,000 Miscellaneous and unforeseen costs $ 5,000 Total startup costs $200,000 Use of funds 2.3 Investor Equity We are not seeking an investment from a third party at this time. 2.4 Management Equity Our group owns 100% of 5 other Steakhouse. 2.5 Exit Strategy If the business is very successful, Our Group Laas-Geel Travel Agency may seek to sell the business to a third party for a significant earnings multiple. 3.0 Restaurant Products : Below is a description of the products offered by Laas-Geel Travel Agency in Somaliland omaliland : As stated in the executive summary, the primary focus Laas-Geel Travel Agency will be the service products throughout the all region S llocation. The Company will offer a smart normal services to its customers. 3.2 Beverages : The Company will serve a wide variety of services. Depending on the size and Travel and Cargo services used in the all regions of the country . The prices of Travel will be $5 to $8 per serving. 4.0 Stratetrategic and Market Analysis: This section of the analysis will detail the economic climate, Laas-Geel Travel Agency industry, the customer profile, and the competition that the business will face as it progresses through its business operations. 4.2 Industry Analysis: There over sicX regions in the Somaliland Gross annual receipts total more than $172000 dollars per year. It is one of the country's largest grossing industries. 4.3 Customer Profile. Laas-Geel Travel Agency average customer will be a middle to upper middle class man or woman living in the Company's targeted market. • Annual household income exceeding $4,000 • Lives or works no more than 20 miles from 45 Barqwaaqo Steakhouse • Will spend $25 to $35 per visit (per person) There are approximately 2000 people living within Pepsi County. Among these people, median family income is $5,000. Given the very high population density of the area, Laas-Geel Travel Agency should be able to remain profitable in most economic climates. 4.4 Competition. Hargeisa is renowned for having a number of steak houses that have been in operation for several decades. 5.0 Marketing Plan. Laas-Geel Travel Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its location. Below is an overview of the marketing strategies and objectives that Laas-Geel Travel Agency . • Implement a local campaign with the Company's targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising. • Hire a public relations firm to provide reviews and articles about the Company's grand opening. 5.2 Marketing Strategies. Our Group intends on using a number of marketing strategies that will allow Laas-Geel Travel Agency to easily target men and women within targeted market. These strategies include traditional print advertisements and discounts offered as a part of a grand opening campaign. 5.3 Pricing . Management anticipates that the business will generate approximately $35 per person for an entre e. 6.0 Organizational Plandand personal Summary. 6.1 Corporate Organization 6.2 Organizational Budget Personnel plan—yearly Personnel plan—yearly Year 1 2 3 Owner $ 40,000 $ 41,200 $ 42,436 Chefs $105,000 $108,150 $111,395 Wait staff $ 40,000 $ 41,200 $ 42,436 Busing staff $ 25,000 $ 25,750 $ 26,523 Administrative $ 20,000 $ 20,600 $ 21,218 Total $230,000 $236,900 $244,007 Numbers of personnel Owner 1 1 1 Chefs 3 3 3 Wait staff 4 4 4 Busing staff 2 2 2 Administrative 1 1 1 Totals 11 11 11 Personnel expense breakdown 7.0 Financial Plan. 7.1 Underlying Assumptions The Company has based its proforma financial statements on the following: • Laas-Geel Travel Agency will have an annual revenue growth rate of 10% per year. • The Owner will acquire $175,000 of debt funds to develop the business. • The loan will have a 10 year term with a 9% interest rate. 7.2 Sensitivity Analysis In the event of an economic downturn, the business may have a decline in its revenues. However, Laas-Geel Travel Agency will generate substantial gross margins from the passengers and Cargo sales, and despite a decrease in top line income. 7.3 Source of Funds Financing Financing Equity contributions Management investment $ 25,000.00 Total equity financing $ 25,000.00 Banks and lenders Banks and lenders $175,000.00 Total debt financing $175,000.00 Total financing $200,000.00 7.4 General Assumptions General Assumptions General assumptions Year 1 2 3 Short term interest rate 9.5% 9.5% 9.5% Long term interest rate 10.0% 10.0% 10.0% Federal tax rate 33.0% 33.0% 33.0% State tax rate 5.0% 5.0% 5.0% Personnel taxes 15.0% 15.0% 15.0% 7.5 Profit and Loss Statements Proforma profit and loss (yearly) Proforma profit and loss (yearly) Year 1 2 3 Sales $710,790 $781,869 $860,056 Cost of goods sold $240,198 $264,218 $290,640 Gross margin 66.21% 66.21% 66.21% Operating income $470,592 $517,651 $569,416 Expenses Payroll $230,000 $236,900 $244,007 General and administrative $ 9,000 $ 9,360 $ 9,734 Marketing expenses $ 15,637 $ 17,201 $ 18,921 Professional fees and licensure $ 5,000 $ 5,150 $ 5,305 Insurance costs $ 15,000 $ 15,750 $ 16,538 Travel and vehicle costs $ 7,500 $ 8,250 $ 9,075 Rent and utilities $ 25,000 $ 26,250 $ 27,563 Miscellaneous costs $ 2,275 $ 2,502 $ 2,752 Payroll taxes $ 34,500 $ 35,535 $ 36,601 Total operating costs $343,912 $356,898 $370,495 EBITDA $126,680 $160,753 $198,921 Federal income tax $ 41,804 $ 48,353 $ 61,331 State income tax $ 6,334 $ 7,326 $ 9,293 Interest expense $ 15,291 $ 14,230 $ 13,069 Depreciation expenses $ 10,714 $ 10,714 $ 10,714 Net profit $ 52,536 $ 80,130 $104,514 Profit margin 7.39% 10.25% 12.15% Sales, operating costs, and profit forecast 7.6 Cash Flow Analysis Proforma cash flow analysis—yearly Proforma cash flow analysis—yearly Year 1 2 3 Cash from operations $ 63,251 $ 90,844 $115,228 Cash from receivables $ 0 $ 0 $ 0 Operating cash inflow $ 63,251 $ 90,844 $115,228 Other cash inflows Equity investment $ 25,000 $ 0 $ 0 Increased borrowings $175,000 $ 0 $ 0 Sales of business assets $ 0 $ 0 $ 0 A/P increases $ 1,700 $ 1,955 $ 2,248 Total other cash inflows $201,700 $ 1,955 $ 2,248 Total cash inflow $264,951 $ 92,799 $117,476 Cash outflows Repayment of principal $ 11,311 $ 12,372 $ 13,533 A/P decreases $ 1,600 $ 1,920 $ 2,304 A/R increases $ 0 $ 0 $ 0 Asset purchases $150,000 $ 9,084 $ 11,523 Dividends $ 44,275 $ 63,591 $ 80,660 Total cash outflows $207,186 $ 86,967 $108,019 Net cash flow $ 57,764 $ 5,832 $ 9,457 Cash balance $ 57,764 $63,596 $ 73,053 Proforma cash flow (yearly) 7.7 Balance Sheet Proforma balance sheet—yearly Proforma balance sheet—yearly Year 1 2 3 Assets Cash $ 57,764 $ 63,596 $ 73,053 Amortized expansion costs $ 85,000 $ 85,908 $ 87,061 Kitchen equipment $ 45,000 $ 51,813 $ 60,455 FF&E $ 20,000 $ 21,363 $ 23,091 Accumulated depreciation ($ 10,714) ($ 21,429) ($ 32,143) Total assets $197,050 $201,252 $211,518 Liabilities and equity Accounts payable $ 100 $ 135 $ 79 Long term liabilities $163,689 $151,317 $138,945 Other liabilities $ 0 $ 0 $ 0 Total liabilities $163,789 $151,452 $139,024 Net worth $ 33,261 $ 49,800 $ 72,493 Total liabilities and equity $197,050 $201,252 $211,518 Proforma balance sheet 7.8 Breakeven Analysis Monthly break even analysis Monthly break even analysis Year 1 2 3 Monthly revenue $ 43,288 $ 44,922 $ 46,634 Yearly revenue $519,450 $539,065 $559,602 Break even analysis 7.9 Business Ratios Business ratios—yearly Business ratios—yearly Year 1 2 3 Sales Sales growth 00.00% 10.00% 10.00% Gross margin 66.20% 66.20% 66.20% Financials Profit margin 7.39% 10.25% 12.15% Assets to liabilities 1.20 1.33 1.52 Equity to liabilities 0.20 0.33 0.52 Assets to equity 5.92 4.04 2.92 Liquidity Acid test 0.35 0.42 0.53 Cash to assets 0.29 0.32 0.35 7.10 Three Year Profit and Loss Statement Profit and loss statement (first year) Profit and loss statement (first year) Months 1 2 3 4 5 6 7 Sales $53,650 $54,665 $55,680 $56,695 $57,710 $58,725 $59,740 Cost of goods sold $18,130 $18,473 $18,816 $19,159 $19,502 $19,845 $20,188 Gross margin 66.2% 66.2% 66.2% 66.2% 66.2% 66.2% 66.2% Operating income $35,520 $36,192 $36,864 $37,536 $38,208 $38,880 $39,552 Expenses Payroll $19,167 $19,167 $19,167 $19,167 $19,167 $19,167 $19,167 General and administrative $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 Marketing expenses $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 Professional fees and licensure $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 $ 417 Insurance costs $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 Travel and vehicle costs $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 Rent and utilities $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 Miscellaneous costs $ 190 $ 190 $ 190 $ 190 $ 190 $ 190 $ 190 Payroll taxes $ 2,875 $ 2,875 $ 2,875 $ 2,875 $ 2,875 $ 2,875 $ 2,875 Total operating costs $28,659 $28,659 $28,659 $28,659 $28,659 $28,659 $28,659 EBITDA $ 6,861 $ 7,533 $ 8,205 $ 8,877 $ 9,549 $10,221 $10,893 Federal income tax $ 3,155 $ 3,215 $ 3,275 $ 3,334 $ 3,394 $ 3,454 $ 3,514 State income tax $ 478 $ 487 $ 496 $ 505 $ 514 $ 523 $ 532 Interest expense $ 1,313 $ 1,306 $ 1,299 $ 1,292 $ 1,285 $ 1,278 $ 1,271 Depreciation expense $ 893 $ 893 $ 893 $ 893 $ 893 $ 893 $ 893 Net profit $ 1,022 $ 1,632 $ 2,242 $ 2,852 $ 3,462 $ 4,073 $ 4,683 Profit and loss statement (first year cont.) Profit and loss statement (first year cont.) Month 8 9 10 11 12 1 Sales $60,755 $61,770 $62,785 $63,800 $64,815 $710,790 Cost of goods sold $20,531 $20,874 $21,217 $21,560 $21,903 $240,198 Gross margin 66.2% 66.2% 66.2% 66.2% 66.2% 66.2% Operating income $40,224 $40,896 $41,568 $42,240 $42,912 $470,592 Expenses Payroll $19,167 $19,167 $19,167 $19,167 $19,167 $230,000 General and administrative $ 750 $ 750 $ 750 $ 750 $ 750 $ 9,000 Marketing expenses $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 15,637 Professional fees and licensure $ 417 $ 417 $ 417 $ 417 $ 417 $ 5,000 Insurance costs $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 15,000 Travel and vehicle costs $ 625 $ 625 $ 625 $ 625 $ 625 $ 7,500 Rent and utilities $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 2,083 $ 25,000 Miscellaneous costs $ 190 $ 190 $ 190 $ 190 $ 190 $ 2,275 Payroll taxes $ 2,875 $ 2,875 $ 2,875 $ 2,875 $ 2,875 $ 34,500 Total operating costs $28,659 $28,659 $28,659 $28,659 $28,659 $343,912 EBITDA $11,565 $12,237 $12,909 $13,581 $14,253 $126,680 Federal income tax $ 3,573 $ 3,633 $ 3,693 $ 3,752 $ 3,812 $ 41,804 State income tax $ 541 $ 550 $ 559 $ 569 $ 578 $ 6,334 Interest expense $ 1,264 $ 1,257 $ 1,250 $ 1,242 $ 1,235 $ 15,291 Depreciation expense $ 893 $ 893 $ 893 $ 893 $ 893 $ 10,714 Net profit $ 5,293 $ 5,904 $ 6,514 $ 7,125 $ 7,735 $ 52,536 Profit and loss statement (second year) Profit and loss statement (second year) 2 Quarter Q1 Q2 Q3 Q4 2 Sales $156,374 $195,467 $211,105 $218,923 $781,869 Cost of goods sold $ 52,844 $ 66,054 $ 71,339 $ 73,981 $264,218 Gross margin 66.2% 66.2% 66.2% 66.2% 66.2% Operating income $103,530 $129,413 $139,766 $144,942 $517,651 Expenses Payroll $ 47,380 $ 59,225 $ 63,963 $ 66,332 $236,900 General and administrative $ 1,872 $ 2,340 $ 2,527 $ 2,621 $ 9,360 Marketing expenses $ 3,440 $ 4,300 $ 4,644 $ 4,816 $ 17,201 Professional fees and licensure $ 1,030 $ 1,288 $ 1,391 $ 1,442 $ 5,150 Insurance costs $ 3,150 $ 3,938 $ 4,253 $ 4,410 $ 15,750 Travel and vehicle costs $ 1,650 $ 2,063 $ 2,228 $ 2,310 $ 8,250 Rent and utilities $ 5,250 $ 6,563 $ 7,088 $ 7,350 $ 26,250 Miscellaneous costs $ 500 $ 625 $ 676 $ 701 $ 2,502 Payroll taxes $ 7,107 $ 8,884 $ 9,594 $ 9,950 $ 35,535 Total operating costs $ 71,380 $ 89,225 $ 96,362 $ 99,931 $356,898 EBITDA $ 32,151 $ 40,188 $ 43,403 $ 45,011 $160,753 Federal income tax $ 9,671 $ 12,088 $ 13,055 $ 13,539 $ 48,353 State income tax $ 1,465 $ 1,832 $ 1,978 $ 2,051 $ 7,326 Interest expense $ 3,661 $ 3,593 $ 3,524 $ 3,453 $ 14,230 Depreciation expense $ 2,679 $ 2,679 $ 2,679 $ 2,679 $ 10,714 Net profit $ 14,676 $ 19,997 $ 22,168 $ 23,290 $ 80,130 Profit and loss statement (third year) Profit and loss statement (third year) 3 Quarter Q1 Q2 Q3 Q4 3 Sales $172,011 $215,014 $232,215 $240,816 $860,056 Cost of goods sold $ 58,128 $ 72,660 $ 78,473 $ 81,379 $290,640 Gross margin 66.2% 66.2% 66.2% 66.2% 66.2% Operating income $113,883 $142,354 $153,742 $159,437 $569,416 Expenses Payroll $ 48,801 $ 61,002 $ 65,882 $ 68,322 $244,007 General and administrative $ 1,947 $ 2,434 $ 2,628 $ 2,726 $ 9,734 Marketing expenses $ 3,784 $ 4,730 $ 5,109 $ 5,298 $ 18,921 Professional fees and licensure $ 1,061 $ 1,326 $ 1,432 $ 1,485 $ 5,305 Insurance costs $ 3,308 $ 4,134 $ 4,465 $ 4,631 $ 16,538 Travel and vehicle costs $ 1,815 $ 2,269 $ 2,450 $ 2,541 $ 9,075 Rent and utilities $ 5,513 $ 6,891 $ 7,442 $ 7,718 $ 27,563 Miscellaneous costs $ 550 $ 688 $ 743 $ 771 $ 2,752 Payroll taxes $ 7,320 $ 9,150 $ 9,882 $ 10,248 $ 36,601 Total operating costs $ 74,099 $ 92,624 $100,034 $103,739 $370,495 EBITDA $ 39,784 $ 49,730 $ 53,709 $ 55,698 $198,921 Federal income tax $ 12,266 $ 15,333 $ 16,559 $ 17,173 $ 61,331 State income tax $ 1,859 $ 2,323 $ 2,509 $ 2,602 $ 9,293 Interest expense $ 3,380 $ 3,306 $ 3,230 $ 3,153 $ 13,069 Depreciation expense $ 2,679 $ 2,679 $ 2,679 $ 2,679 $ 10,714 Net profit $ 19,601 $ 26,090 $ 28,731 $ 30,092 $104,514 7.11 Three Year Cash Flow Analysis Cash flow analysis (first year) Cash flow analysis (first year) Month 1 2 3 4 5 6 7 8 Cash from operations $ 1,915 $ 2,525 $ 3,135 $ 3,745 $ 4,355 $ 4,965 $ 5,576 $ 6,186 Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Operating cash inflow $ 1,915 $ 2,525 $ 3,135 $ 3,745 $ 4,355 $ 4,965 $ 5,576 $ 6,186 Other cash inflows Equity investment $ 25,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Increased borrowings $175,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 A/P increases $ 142 $ 142 $ 142 $ 142 $ 142 $ 142 $ 142 $ 142 Total other cash inflows $200,142 $ 142 $ 142 $ 142 $ 142 $ 142 $ 142 $ 142 Total cash inflow $202,056 $ 2,666 $ 3,277 $ 3,887 $ 4,497 $ 5,107 $ 5,717 $ 6,328 Cash outflows Repayment of principal $ 904 $ 911 $ 918 $ 925 $ 932 $ 939 $ 946 $ 953 A/P decreases $ 133 $ 133 $ 133 $ 133 $ 133 $ 133 $ 133 $ 133 A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset purchases $150,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Dividends $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total cash outflows $151,038 $ 1,044 $ 1,051 $ 1,058 $ 1,065 $ 1,072 $ 1,079 $ 1,086 Net cash flow $ 51,019 $ 1,622 $ 2,225 $ 2,828 $ 3,432 $ 4,035 $ 4,638 $ 5,242 Cash balance $ 51,019 $52,641 $54,866 $57,694 $61,126 $65,161 $69,799 $75,041 Cash flow analysis (first year cont) Cash flow analysis (first year cont.) Month 9 10 11 12 1 Cash from operations $ 6,796 $ 7,407 $ 8,017 $ 8,628 $ 63,251 Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 Operating cash inflow $ 6,796 $ 7,407 $ 8,017 $ 8,628 $ 63,251 Other cash inflows Equity investment $ 0 $ 0 $ 0 $ 0 $ 25,000 Increased borrowings $ 0 $ 0 $ 0 $ 0 $175,000 Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 A/P increases $ 142 $ 142 $ 142 $ 142 $ 1,700 Total other cash inflows $ 142 $ 142 $ 142 $ 142 $201,700 Total cash inflow $ 6,938 $ 7,549 $ 8,159 $ 8,770 $264,951 Cash outflows Repayment of principal $ 961 $ 967 $ 974 $ 982 $ 11,311 A/P decreases $ 133 $ 133 $ 133 $ 133 $ 1,600 A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 Asset purchases $ 0 $ 0 $ 0 $ 0 $150,000 Dividends $ 0 $ 0 $ 0 $44,275 $ 44,275 Total cash outflows $ 1,094 $ 1,101 $ 1,108 $45,390 $207,186 Net cash flow $ 5,844 $ 6,448 $ 7,051 –$36,620 $ 57,764 Cash balance $80,885 $87,333 $94,384 $57,764 $ 57,764 Cash flow analysis (second year) Cash flow analysis (second year) 2 Quarter Q1 Q2 Q3 Q4 2 Cash from operations $18,169 $22,711 $24,528 $25,436 $90,844 Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 Operating cash inflow $18,169 $22,711 $24,528 $25,436 $90,844 Other cash inflows Equity investment $ 0 $ 0 $ 0 $ 0 $ 0 Increased borrowings $ 0 $ 0 $ 0 $ 0 $ 0 Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 A/P increases $ 391 $ 489 $ 528 $ 547 $ 1,955 Total other cash inflows $ 391 $ 489 $ 528 $ 547 $ 1,955 Total cash inflow $18,560 $23,200 $25,056 $25,984 $92,799 Cash outflows Repayment of principal $ 2,990 $ 3,058 $ 3,127 $ 3,198 $12,372 A/P decreases $ 384 $ 480 $ 518 $ 538 $ 1,920 A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 Asset purchases $ 1,817 $ 2,271 $ 2,453 $ 2,544 $ 9,084 Dividends $12,718 $15,898 $17,170 $17,805 $63,591 Total cash outflows $17,909 $21,706 $23,268 $24,084 $86,967 Net cash flow $ 651 $ 1,493 $ 1,788 $ 1,899 $ 5,832 Cash balance $58,415 $59,909 $61,697 $63,596 $63,596 Cash flow analysis (third year) Cash flow analysis (third year) 3 Quarter Q1 Q2 Q3 Q4 3 Cash from operations $23,046 $28,807 $31,112 $32,264 $115,228 Cash from receivables $ 0 $ 0 $ 0 $ 0 $ 0 Operating cash inflow $23,046 $28,807 $31,112 $32,264 $115,228 Other cash inflows Equity investment $ 0 $ 0 $ 0 $ 0 $ 0 Increased borrowings $ 0 $ 0 $ 0 $ 0 $ 0 Sales of business assets $ 0 $ 0 $ 0 $ 0 $ 0 A/P increases $ 450 $ 562 $ 607 $ 630 $ 2,248 Total other cash inflows $ 450 $ 562 $ 607 $ 630 $ 2,248 Total cash inflow $23,495 $29,369 $31,719 $32,893 $117,476 Cash outflows Repayment of principal $ 3,270 $ 3,344 $ 3,420 $ 3,498 $ 13,533 A/P decreases $ 461 $ 576 $ 622 $ 645 $ 2,304 A/R increases $ 0 $ 0 $ 0 $ 0 $ 0 Asset purchases $ 2,305 $ 2,881 $ 3,111 $ 3,226 $ 11,523 Dividends $16,132 $20,165 $21,778 $22,585 $ 80,660 Total cash outflows $22,168 $26,966 $28,932 $29,954 $108,019 Net cash flow $ 1,328 $ 2,403 $ 2,787 $ 2,939 $ 9,457 Cash balance $64,924 $67,327 $70,114 $73,053 $ 73,053 Source Citation “Laas-Geel Travel Agency “ Business Plans Handbook Laas-Geel Travel Agency vol. 01. Pepsi , Hargeisa Somaliland 1-6 Business Plans Handbooks. Web. 11/10/2020