Financial Plan

The following section contains the financial information for Cambio crypto. Tables and charts show annual projections for the first five business years.

Startup Analysis

Financial Overview

Below is the financial overview showing the profitability of the business as the sales increases with little change in the cost. The profit is seen to increase with sales.

Profit and Loss

The below table is the profit and loss projection for the first five business years. The sales are seen to increase each year, causing a considerable increase in the net profit too.

From the above analysis, it is projected that the business will have a total revenue of $500,000 in the year 2022. Every business always aspires to increase its sales. With the marketing strategy adopted, it is assumed that this will yield an increase in the subsequent years of business operations, thereby, causing the revenue for each year to increase too.

The volume of revenue influences the profit that will be made during the year, therefore revenue generated in the course of running the business results in an increase in profit made by the business after taking care of all expenses.

Chart: Profit and Loss

Cash Flow Statement

Below is cash flow statement projection for five years showing the movement of cash within the business. The owner seeks $1,000,000 from investors (for a dividend of 10%) for the business funding.

Chart: Cash Flow

The graph above shows an upward movement of closing cash balance which indicates that there is an increase in cash balance at the end of every period.

Balance Sheet

Below is the financial forecast of the balance sheet for the business. The below table shows the steady growth in the net worth of the organization, this shows that the business is a very profitable one.

Table:  Balance Sheet

Chart: Net Worth

Break-even Analysis

Break-even is the point where the business neither makes profit nor loss. This means that at break-even, the business is only able to pay up its expenses both fixed and variable cost without any excess. The essence of break-even is to determine the number of sales that could lead to profitability

The business is seen to break the even in the first year of business activities. This means that there must be more than $94,800 worth of sales yearly before any profit can be recorded. The above analysis can be seen in the below graph showing the breakeven income and revenue.