Kidz Club

Financial Plan

• Kidz club consulting will finance growth mainly through cash flow.  It is recognized that this means the childcare will have to grow gradually into the planned four other hotels. 

• The most important factor in our business delivering good care to kids while parents are enjoying their pleasant time at casino.

Important Assumptions

The Kidz club consulting financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.  The monthly assumptions are included in the appendices. Interest rates, tax rates, and personnel burden are based on conservative assumptions. 

The most important underlying assumption is that there is a strong need for the business in the hotel.

Table: General Assumptions

|General Assumptions | | | |

| | Year 1 | Year 2 | Year 3 |

|Plan Month |1 |2 |3 |

|Current Interest Rate |7.00% |7.00% |7.00% |

|Long-term Interest Rate |7.00% |7.00% |7.00% |

|Tax Rate |30.00% |30.00% |30.00% |

|Other |0 |0 |0 |

Break-even Analysis

For the break-even analysis, start-up monthly running costs assumptions are shown in the table below, including a three person payroll, rent, utilities and an estimation of other running costs. 

Based on these assumptions,...