How to Write a Business Plan

254 | HOW TO WRITE A BUSINESS PLAN

-8-

Project Development Cash Flow—Remodel House at 2246½ Hamilton

Pre-

Const

Construction Period

Total

Cost

House

Sale

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Sources of Cash

Savings 5,300

New Second 30,000

Sales—Down Payment 12,000

New First 96,000

Total Sources 5,300 30,000 108,000

Uses of Cash: Preconstruction

Down payment to buy house 5,000

City Inspection fee 100

Engineer consultant 200

Total Preconstruction 5,300

Uses of Cash: Construction

Contractors 5,718 5,718 5,719 17,155

Supplies 167 167 166 500

Permits/fees 250 -0- 250 500

Interest on old first mortgage 550 550 550 550 550 550 3,300

Principal on old first mortgage 250 250 250 250 250 250 1,500

Loan fees on new 2nd 600 600

Interest on new 2nd 300 300 300 300 300 300 1,800

Developer overhead 1,500 1,500 1,500 -0- -0- -0- 4,500

Total Construction 9,335 8,485 8,735 1,100 1,100 1,100 29,855

Sales—pay off savings of J.R. 5,000

Pay off old first 53,500

Pay off new 2nd 30,000

Sales commission 7,200

Total Sale 95,700

Net Cash -0- 20,665 (8,485) (8,735) (1,100) (1,100) (1,100) (29,855) 12,300

Cumulative Net Cash -0- 20,665 12,180 3,445 2,345 1,245 145 145 12,445

●