Year 1 (12 months) is an investment year. Revenue is £40,000 net; cost of goods sold is £12,500; gross profit is £27,500 at a gross margin of 68.8%. Operating costs are £58,547.96, giving EBITDA of £-31,047.96.
The business deliberately runs at a planned loss while building product, brand and market traction. The loss is funded by the £65,000 investment and early customer deposits. The key metric for investors is the trajectory: break-even on monthly operations is targeted for Jun 27.
Year 2 and Year 3 indicative targets: £225,000 and £680,000. These are indicative targets, not bottom-up projections, and assume successful national scale-up and a signed 1,000-unit contract.
| Category | Amount |
|---|---|
| Revenue | £40,000 |
| Cost of sales | £12,500 |
| Gross profit | £27,500 |
| People / Operations | £18,280 |
| Manufacturing / Product Development | £9,300 |
| Professional Services | £3,600 |
| Premises & Facilities | £3,868 |
| Sales & Marketing | £18,300 |
| Technology & Software | £1,299.96 |
| Inventory / Working Capital | £3,600 |
| Insurance & Compliance | £300 |
| EBITDA | £-31,047.96 |
| Gross margin | 68.8% |
| EBITDA margin | -77.6% |
| Product | Price (net) | VAT % | Price (gross) | Unit cost | GP / unit | Margin | Deposit % |
|---|---|---|---|---|---|---|---|
| Cool Product | £400 | 20 | £480 | £125 | £275 | 68.8% | 50 |
| Month | Units | Revenue | COGS | Gross profit |
|---|---|---|---|---|
| Nov 26 | 0 | £0 | £0 | £0 |
| Dec 26 | 0 | £0 | £0 | £0 |
| Jan 27 | 0 | £0 | £0 | £0 |
| Feb 27 | 3 | £1,200 | £375 | £825 |
| Mar 27 | 5 | £2,000 | £625 | £1,375 |
| Apr 27 | 7 | £2,800 | £875 | £1,925 |
| May 27 | 9 | £3,600 | £1,125 | £2,475 |
| Jun 27 | 11 | £4,400 | £1,375 | £3,025 |
| Jul 27 | 13 | £5,200 | £1,625 | £3,575 |
| Aug 27 | 15 | £6,000 | £1,875 | £4,125 |
| Sep 27 | 17 | £6,800 | £2,125 | £4,675 |
| Oct 27 | 20 | £8,000 | £2,500 | £5,500 |
| Total | 100 | £40,000 | £12,500 | £27,500 |
Cash inflows comprise the £65,000 investment at the start plus customer cash from sales. Customer cash follows the pay-to-order model: 50% deposit at order and 50% balance on delivery, with an assumed one-month production lead time.
Cost of goods sold is paid on delivery; operating costs are spread across the year. Lowest cash is £27,480.02 at Apr 27; closing cash at month 12 is £39,652.04.
VAT treatment. The business charges £400 + VAT (B2B); VAT is not income — it is collected on behalf of HMRC. The cash flow treats VAT as net-neutral and does not embed a refund assumption. A detailed quarterly VAT schedule should be prepared with the accountant once registration and scheme choice are confirmed.
| Line | Nov 26 | Dec 26 | Jan 27 | Feb 27 | Mar 27 | Apr 27 | May 27 | Jun 27 | Jul 27 | Aug 27 | Sep 27 | Oct 27 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Funding received | £65,000 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Sales deposits | £0 | £0 | £0 | £720 | £1,200 | £1,680 | £2,160 | £2,640 | £3,120 | £3,600 | £4,080 | £4,800 |
| Sales balances on delivery | £0 | £0 | £0 | £0 | £720 | £1,200 | £1,680 | £2,160 | £2,640 | £3,120 | £3,600 | £4,080 |
| Total cash in | £65,000 | £0 | £0 | £720 | £1,920 | £2,880 | £3,840 | £4,800 | £5,760 | £6,720 | £7,680 | £8,880 |
| COGS paid | £0 | £0 | £0 | £0 | £375 | £625 | £875 | £1,125 | £1,375 | £1,625 | £1,875 | £2,125 |
| Costs: salary | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 | £1,050 |
| Costs: staff | £0 | £0 | £163 | £613 | £613 | £613 | £613 | £613 | £613 | £613 | £613 | £613 |
| Costs: contractors | £1,000 | £1,750 | £1,750 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Costs: professional_fees | £1,000 | £500 | £1,100 | £0 | £0 | £1,000 | £0 | £0 | £0 | £0 | £0 | £0 |
| Costs: premises | £0 | £50 | £50 | £50 | £50 | £530 | £480 | £480 | £480 | £480 | £480 | £480 |
| Costs: utilities | £43 | £43 | £43 | £43 | £43 | £43 | £0 | £0 | £0 | £0 | £0 | £0 |
| Costs: marketing | £4,603 | £4,599 | £4,598 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 |
| Costs: travel | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 | £100 |
| Costs: hospitality | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 |
| Costs: software | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 | £8.33 |
| Costs: manufacturing | £3,200 | £800 | £800 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Costs: equipment | £1,400 | £200 | £200 | £200 | £200 | £200 | £0 | £0 | £0 | £0 | £0 | £0 |
| Costs: technology | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 | £200 |
| Costs: insurance | £300 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
| Total cash out | £13,104.33 | £9,500.33 | £10,262.33 | £2,564.33 | £2,939.33 | £4,669.33 | £3,626.33 | £3,876.33 | £4,126.33 | £4,376.33 | £4,626.33 | £4,876.33 |
| Net cash flow | £51,895.67 | £-9,500.33 | £-10,262.33 | £-1,844.33 | £-1,019.33 | £-1,789.33 | £213.67 | £923.67 | £1,633.67 | £2,343.67 | £3,053.67 | £4,003.67 |
| Closing cash | £51,895.67 | £42,395.34 | £32,133.01 | £30,288.68 | £29,269.35 | £27,480.02 | £27,693.69 | £28,617.36 | £30,251.03 | £32,594.70 | £35,648.37 | £39,652.04 |
Closing cash over the year:
xychart-beta
title "Closing cash"
x-axis ["Nov 26", "Dec 26", "Jan 27", "Feb 27", "Mar 27", "Apr 27", "May 27", "Jun 27", "Jul 27", "Aug 27", "Sep 27", "Oct 27"]
y-axis "GBP" 0 --> 59680.02
line [51895.67, 42395.34, 32133.01, 30288.68, 29269.35, 27480.02, 27693.69, 28617.36, 30251.03, 32594.7, 35648.37, 39652.04]
Revenue (bars) versus operating costs (line):
xychart-beta
title "Revenue vs operating costs"
x-axis ["Nov 26", "Dec 26", "Jan 27", "Feb 27", "Mar 27", "Apr 27", "May 27", "Jun 27", "Jul 27", "Aug 27", "Sep 27", "Oct 27"]
y-axis "GBP" 0 --> 15069.98
bar [0, 0, 0, 1200, 2000, 2800, 3600, 4400, 5200, 6000, 6800, 8000]
line [13104.33, 9500.33, 10262.33, 2564.33, 2564.33, 4044.33, 2751.33, 2751.33, 2751.33, 2751.33, 2751.33, 2751.33]
Units sold per month:
xychart-beta
title "Units"
x-axis ["Nov 26", "Dec 26", "Jan 27", "Feb 27", "Mar 27", "Apr 27", "May 27", "Jun 27", "Jul 27", "Aug 27", "Sep 27", "Oct 27"]
bar [0, 0, 0, 3, 5, 7, 9, 11, 13, 15, 17, 20]
Use of funds:
pie title Use of funds
"People / Operations" : 18280
"Manufacturing / Product Development" : 9300
"Professional Services" : 4600
"Premises & Facilities" : 3868
"Sales & Marketing" : 18300
"Technology & Software" : 1299.96
"Inventory / Working Capital" : 3600
"Insurance & Compliance" : 300
"Contingency" : 5854.8
| Line | Amount |
|---|---|
| People / Operations | £18,280 |
| Director salary | £12,600 |
| Studio technician | £4,050 |
| Social media freelancer | £1,630 |
| Manufacturing / Product Development | £9,300 |
| PCB consultant | £3,000 |
| CNC consultant | £1,500 |
| Materials | £1,200 |
| Tools | £1,200 |
| Joinery | £2,400 |
| Professional Services | £4,600 |
| Accountant | £1,000 |
| Financial advisor | £1,000 |
| Legal contingency (reserve) | £1,000 |
| IP (trademark, design, contracts) | £500 |
| Grant writer | £1,100 |
| Premises & Facilities | £3,868 |
| Storage | £250 |
| Shipping container | £2,800 |
| WFH bills (utilities) | £258 |
| Business rates | £560 |
| Sales & Marketing | £18,300 |
| Trade shows | £1,200 |
| Travel | £1,200 |
| Hospitality | £2,400 |
| Web development | £1,000 |
| Photography / graphic design | £3,000 |
| Product video | £4,000 |
| Branding / merch | £4,000 |
| PR launch | £1,000 |
| Brochures | £500 |
| Technology & Software | £1,299.96 |
| CRM | £99.96 |
| Telephone & internet | £1,200 |
| Inventory / Working Capital | £3,600 |
| Desk | £1,200 |
| Cloud infrastructure | £1,200 |
| Equipment purchase or leasing | £1,200 |
| Insurance & Compliance | £300 |
| Public + product liability | £300 |
| Subtotal | £59,547.96 |
| Contingency (10%) | £5,854.80 |
| Grand total | £65,402.76 |
| Category | Amount | % of Total | Timing | Purpose |
|---|---|---|---|---|
| People / Operations | £18,280 | 27.95 | ||
| Manufacturing / Product Development | £9,300 | 14.22 | ||
| Professional Services | £4,600 | 7.03 | ||
| Premises & Facilities | £3,868 | 5.91 | ||
| Sales & Marketing | £18,300 | 27.98 | ||
| Technology & Software | £1,299.96 | 1.99 | ||
| Inventory / Working Capital | £3,600 | 5.50 | ||
| Insurance & Compliance | £300 | 0.46 | ||
| Contingency | £5,854.80 | 8.95 | Held in reserve | Buffer for overruns and delays |
| Total | £65,402.76 | 100 | **** | **** |
| Phase | Period | Investment used | Customer cash in | What it achieves |
|---|---|---|---|---|
| Build & Validate | Months 1–3 | £32,866.99 | £0 | Product finalised, brand live, first pitches, first deposit |
| Market Entry | Months 4–6 | £10,172.99 | £5,520 | 30 units in market, production digitised, break-even monthly ops |
| Bridge to Scale | Months 7–9 | £11,628.99 | £14,400 | Cash-positive, investment nearly fully deployed |
| Scale & Growth | Months 10–12 | £13,878.99 | £23,280 | 100 units sold, national contract pathway |
| Metric | Value |
|---|---|
| MRR | £0 |
| ARR | £0 |
| Year-end customers | 0 |
| Total units | 100 |
| Revenue (year) | £40,000 |
| Gross profit | £27,500 |
| Gross margin | 68.8% |
| Operating costs | £58,547.96 |
| EBITDA | £-31,047.96 |
| Closing cash | £39,652.04 |
| Lowest cash | £27,480.02 |
| Break-even units/month | 17.74 |
| Break-even month | Jun 27 |
| Runway (months) | 8.10 |