I. Executive Summary
This Section's Contents
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Business Overview
[Company Name], located in [insert location here] is a new accounting firm that focuses on providing reliable expertise and exceptional customer service. The company is owned and operated by an experienced CPA who has been working in the industry for over fifteen years.
Products Served
[Company Name] will provide a full range of accounting services for individuals and small businesses.
- Accounting and auditing services for small business
- Tax filing and preparation services for small business and individuals
- Financial consulting and advisory services for small business and individuals
Customer Focus
[Company Name] will primarily serve individuals and small businesses within a 30-mile radius of the firm’s office. The demographics of these customers are as follows:
- 120,000 individuals
- Average income of $74,700
- 58.9% married
- 49.6% in management/professional occupations
- Median age: 38 years
- 1,500 businesses
- Under 100 employees (average is 42)
Management Team
[Company Name] is led by [Founder’s Name], an experienced CPA who has been managing a large accounting firm in [location] for the past eight years. She graduated from [University] with an accounting degree and has been working at the large accounting firm since then, starting at an entry level position and working her way up to a management level role.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is a need for knowledgeable and affordable accounting services within the community. Currently, the area is served exclusively by two large firms that serve corporate clients and one small startup accounting firm that operates 100% online and has no brick-and-mortar presence.
- The firm’s office will be centrally located in a high-traffic commercial area, with easy access from multiple thoroughfares.
- The management team has a track record of success in the accounting business.
- Market trends such as changes to regulations and filing processes have spurred demand for accounting services.
Financial Highlights
[Company Name] is seeking a total funding of $150,000 of debt capital to open its accounting firm.
- Office design/build: $40,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
