Late in 2014, your KCFC board of directors made the decision to hire Bill Gessner from CDS Consulting to build the first draft of the co-op’s fiscal pro forma. This is a document (actually a very busy spreadsheet) that gives the board information about the costs for opening and operating a store. It provides an initial operating budget, cost projections for everything from employees to maintaining inventory, and a ten-year fiscal statement that gives us a sense of when the store will be profitable. This is an important tool for both our planning and to ultimately share relevant information with partners, investors and financial institutions.
To be frank, while many of us on the board had a good sense of what a fiscal pro forma is about, few of us had ever seen one. So we were all exceptionally excited for the conference call we had scheduled with Bill on January 15th to go over the numbers with us. The document he created for us was informed by his 25 years of experience and proprietary data from hundreds of food co-ops from across the country.
The power of a planning document like this is that it gives the board solid tools and information with which to make decisions. This initial draft was build with assumptions for things like the size of the store, lease rates and the amount of debt we would carry. Many of the assumptions used have not been nailed down just yet, like the square footage of the store or what lease rate will be. However, the pro forma allows us to adjust the figures and immediately see the impact on our long-term financial statement. Bill will be helping us to build subsequent drafts as we have better information on a site.
Your board is hard at work getting things ready for the time when we can begin negotiating for a site and implement the capital campaign. The vision of a full-service, locally sourced, member owned natural market is getting closer every day.
Feel free to join us for our next board meeting on January 26th at 5:30pm. We’d love to hear from you. Contact firstname.lastname@example.org for more information.
Kitsap Community Food Co-op