What corrections / changes / adjustments would you recommend for her financial projections for her business?

The $435 incorporation fee would be paid on the first day of operations and expensed in the company’s first year. A website would be developed for Tidy at an estimated cost of $8,000, which would be completed and paid for in June. The website costs would be capitalized and amortized over a useful life of six years. Website maintenance would cost $250 a month, beginning in June, 2015. Website hosting and the domain name would cost $60 annually, paid in the first month of the fiscal year. Fernandes would purchase a used 2010 Toyota Yaris for $9,488 as the company vehicle.10 Fernandes planned to customize the car with the Tidy’s colours and logo at a cost of $1,400. Both the car and the customization would be paid for on the first day of operations. Fernandes estimated that gas would cost an average of $4 per round trip to and from a client’s location.

For the first three years of operations, Fernandes would operate Tidy out of her home to help reduce expenses. She would still need to spend $85 each month for a business phone and an Internet plan, and $5,500 annually for numerous insurance policies (general liability insurance, commercial auto insurance, and surety bonds). Fernandes decided she would purchase two-year insurance policies on the first day of operations and renew these policies in the third year of operations. Fernandes had also decided to charge Tidy $100 per month toward her home’s utilities. Tidy would have a corporate bank account that would cost $125 a month in service fees. Fernandes also planned to set up a $20,000 business line of credit. Costs for this line of credit would be a flat rate of $25 per month, plus 2.7 per cent per annum interest on the amount borrowed. Interest would be calculated on the previous month’s ending cash balance. For client payment, Tidy would accept cash, cheque, or credit card. Credit card fees were expected to be 1.5 per cent of total sales. Fernandes projected full payment in cash from services in the same month the service was performed.