Remember these will be assuming the herd freshened and kids" problem" has been resolved. You are all rested up and ready to conduct serious business :-) And these columns will be figures *AVERAGED* out over the twelve months, naturally this is only for demonstration purposes, it is merely a projection!
Under 1, for Jan. only, leave this blank.
2a- milk sales, 100 doesX 3qts. (the daily "average" for 305 days)= 75 gallons milk @ $7.50 ea.X 30 days= enter $16,875.00 in each month except Nov. & Dec. when herd is dry.
>One GLARING error
>>You didn't offset the amount of milk you'll be feeding 200 kids for at least 6 weeks.
That's why I gave such a choice of outcomes. If you would be raising the kids, yes, if not no. I leaned to the "NOT". Individual entries will vary a lot. It's just a helpsheet. Everyone's will be different.
These costs are from my actual experience and billings. We've never kept does that couldn't prosper under the normal management we offer. No special expensive babying. They thrive.
***2b meat and doe sales- assuming a 90% weaning success rate, each doe having 1 of each sex ave., buckling will weigh 35 lbs. at 8 weeks age, $1.15 lb. X 35 lbs X 90= $3,622.50. Doe kids sold at 2 months age @ $50.00 each= $4,500. (lotsa luck on this one!) Enter $675.00 each of 12 months. ***Assuming you're patient and dumb enough to do this as a *side income?*- You'll soon be thinking "There must be a better way!"
Now skip to 5a. Bottles $.20 ea., disinfectants,towels, washcloths, paper supplies, soaps, cleaners, shall I continue? allow $550.00 for each of 10 months, again skip Nov. and Dec. Boy we are keeping this simple. (lying a little, too)
5b. Gross wages- This is subjective, if you are doing EVERYTHING yourself, enter $0.00. (HAH!). If you hire 1 person, min. wage, enter $680.00 for each month. (You're ACTUALLY going to raise all those kids, and feed and shovel dodoo, and milk and bottle and deliver by yourself?)
Now the trouble begins. Because you have just hired an outside helper, so too you have to pay workmans comp and insurance benefits. If you had help from a family member you could have paid them $5.50 an hour and you could forget this crap. You're most likely insured under a spouses or parents policy if you are a house-spouse or teen-ager.
5c Payroll expenses (% of wages)Includes insurance policy- 1 worker- 154.54 per month, includes dental in case some big buck gets wild!, plus comp- enter $200.00 each month, leave blank if you are working yourself to death.
5d outside services- Very subjective- are you distributing yourself, or hiring a driver? Are you cleaning pens manually and disposing of, , or hiring a small tractor/dump set-up?
5e Supplies (office & operating) allow $100.00, includes labels.
5f Repairs and maintanence- subjective- are you handy? allow $100.00 a month.
5g Advertising- allow $50.00 month
5h Car, delivery and travel- again subjective. * Do yourself- allow $300.00 for the payments on a small refer truck and $100.00 a month on gas. Assumption- 2X week delivery, 300 miles/wk. total mileage. (Never deliver more than a 75 mile radius.)= $400.00 a month for 10 of the months. $300.00 for Nov. and Dec. cause the girls are dry. * Deliver bulk milk- (not an option since price for bulk milk is very low, however if you insist- $.15 fuel/mile, 1,200 miles mo., $.05 mi.oil etc., (You own the tanker)(You can depreciate it) (You have to maintain it) $240.00 a month. Subtract 1/2 of your milk income from 2a. *Contract for pick-ups- They are charging $.30 per gallon, so -this would be $225.00 monthly, not an option since now not only are you getting a low price for the milk, and here's the first middleman. Subtract a little MORE than 1/2 of your milk income from 2a.
5i Accounting and legal-Your tax preparer (you?), your book-keeper (you?) your attorney (you?), Again, leave blank IYAWYT.(;-))
5j Rent- "Regular" businesses have storefront rental expenses, you own(?) your dairy, skip this.
5k telephone- since you are going to be so busy, too busy to spend all this time on-line anymore- do $40.00 a month. Lonely doesn't count.
5l Utilities- Keep everything cool and does watered, hot water for cleaning-- $400.00 monthly.
5m Insurance- farm $700.00 yr., vehicles- if tanker- $880 yearly, if delivery truck/refer- $500.00 yrly.- do average of $1,400 yrly or $117.00 a month
5n Taxes (Real estate, etc.) Very subjective, Calif. is a high taxy state. Average here is $300.00 a month for dairy and 75 acres with residence- value $425,000. Yours may be very different.
5o Interest- if you financed with SBA, your loan will be 7- 10 years long- the payments are between$ 2,500 and $3,000 per month, the interest is 1/3 of the payment- or some $800- $1,000 per month- this is on $200,000.00 at 2 3/4% above prime, or about 11.5% on the loan, variable.( Also deductable later as business expense.) enter ave. $900.00 ea. mo.
5p Other expenses- (specify ea.)
5q Misc. unspecified- Kid expenses- Milk for 1st 10 days, 1 qt./ kidX 180 kids X$.30 (1/2 moms feed) X 30 days= $540.00 mo. Don't enter, this was included in 5p. Kid feed- next 46 days- milk value you have lost (because you are kid gulleting it instead of selling it.)= $1.40/ qt. X 180 qts. X 30 days= $7,560.00. per month... Don't enter that! This was your fault. That is also under 5p, moms feed.. Just thought you'd find it interesting.:-) Hay for kids- ave. 2 lbs. X 35 days X 180 kids X$ .06 lb.= (assuming yours don't nibble for the first 3 weeks!) $756.00 total,, enter $378.00/ month in Nov. and Dec. Grain for kids- ave 1 lb daily/ kid last 30 days , 180 lbs.x 30 daysX $.11 lb.= $300.00 month for Nov. and Dec.
5s loan principle payment- What the balance is from your entry 5o and your total SBA monthly payment.- enter $1,850.00 each month.
5t capital purchases- $100,000 for Maxwell unit to cool pasteurize. Enter $8,333.00 mo. JUST KIDDING!! Leave 5t blank.
5u Other start-up costs- can't think of any, blank (just wait!) you SURE that well pump is new? The health dept. might make you install an automatic bottler.
5v Reserve/escrow - Blank
5w Owners withdrawal- Of course you aren't going to pay yourself!
6. Total cash paid out (total 5a-5w) add and enter at bottom of each column.
7. Cash position (4 minus 6)
Esssential operating data -This is for tax purposes at the required filing times. it will bring out hidden assets such as does not yet fresh that have value raised by you, as well as the tax advantage you will have for depreciation as a benefit.
Some can be expensed, others must be time- divided. Status changes with the whim of legislation (Clinton?)
Go back to Jan.- and total items 2a & 2b, and enter on 3. Carry this number to the top of Feb.column 1, and add 1, 2a, and 2b together. Enter that in 3 under Feb., continue like this until all the items are totalled, then add along the total cash receipts (all the 3s) line moving to the right. Enter under the last listing after the Dec. month called Total.
Column 3 is your annual GROSS.
You automatically have added along column 7 when you worked out each months' running balances, and have entered in totals. You should have a total at the end. This is your annual NET. It should magically appear on column 7, month of Dec.
How's this look?
If you've goofed up, stop throwing those pencils at your poor computer.
If you've done pretty well, WELL????