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Upon finalizing the location and the demographic analysis, we enter all applicable information into a computer program that provides an income statement, which is commonly known as a Pro-forma. The information that is entered into this program consists of the following:
Rent
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Labor Expense
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Utility Expense |
| Debt Structure |
Insurance |
Construction |
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| Washer Income |
Dryer Income
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Vending Income |
| Drop-off Income |
Other Income |
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While the Pro-forma is for estimate purposes, it does create a model that projects profit and loss statements based upon machine usage. While the national average machine usage may be 4.2 uses per day, the specific demographics may indicate a far higher usage rate. We therefore provide pro-forma estimates for several usage factors that often range from 3-7 turns per day. This enables the investor to analyze the location's potential along with the corresponding risk.
Click to view this Pro-forma example.
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