Web Design Business Plan

Executive Summary

Studio Design is a small start-up firm located in the business district of

Allahabad, Uttar Pradesh. We offer Internet and Web-related services to small
businesses in the Uttar Pradesh area. The services we offer include website
development and design, hosting, maintenance, marketing, SEO (Search engine
Optimization), business card, broachers design and analysis.

Given our experience and expertise in both commercial Web development and
business-to-business sales, we believe we can offer a unique and superior
service to small business owners, in comparison to what is currently available.

The demand and growth rate for Web development and marketing services in the
small business market is at an all time high and shows no sign of slowing
anytime soon. Even more astonishing is the fact that very few Web development
companies have taken advantage of the opportunity, as there are no dominating
participants in this huge market.

We believe the reason for this virtually untapped market is due to expensive
project costs, the highest profit margins in Web development today are in
servicing large- and medium-sized corporations. We have developed a system
that dramatically reduces steep project costs and henceforth will allow us to offer
the same high-end Web development services as larger companies receive at a
much lower cost to the client.

This business plan will highlight many aspects of our system and our business. It
will detail market growth and demand, and it will outline our projected cash flow
and profit margins over the next three years. All numbers regarding our
projected company growth are based on previous information gathered by
activity in the company over the last few months of operation.

1.1 Objectives

Revenues of $200,000 by month 10.

Net Profit of 25% in year one and 35% in year two.

65% Gross margin by month 10.

1.2 Keys to Success

Offering high-end Web services to small businesses in a way that they can
understand and afford.
Build a strong residual income through secondary subscription-based services
tailored for small business (website hosting, marketing, maintenance,
consulting).

Establishing strategic partnerships with area Internet service providers and

computer consulting companies to refer small business website projects to us in
exchange for high payoffs.

1.3 Mission

Our mission is to provide affordable, accessible, and streamlined Internet and

Web services to small businesses. We have developed a system for offering
many different types of Web services (site development, hosting, marketing, and
maintenance) that are exclusively tailored to fit the needs and resources of small
companies.

Company Summary

Studio design is a start-up company that will provide high-end, affordable

Internet related services to small businesses that are looking to expand their
existing marketing efforts to reach the Web. We have a system established that
will allow us to offer website development, hosting, marketing, and maintenance
of the same caliber that large companies take advantage of, at a very affordable
rate.

2.1 Company Ownership

Ibrio has been incorporated as a Pennsylvania S corporation based in Lebanon
county as of August 28, 2000. The corporation is privately owned by David W.
Hickethier, chief operations officer and Richard B. Andrews, chief technology
officer.

2.2 Start-up Summary

Our start-up plan is a well thought out base to propel us forward with the proper
equipment, marketing tools, and personnel to start our venture. An initial cash
investment by the owners in the amount of $7,300 to purchase office furniture,
computer equipment, and software has been made. Both owners have also
invested a combined time of approximately 3,500 working hours toward the
start-up of Ibrio Inc.

The cash requirement of $17,000 arefunds that we need to provide the capital to
run our business for the first few months. This capital will fund two
employeespayroll and equipment/supplies to get them started. It will cover
business expenses for a few months until our cash flow takes over.

The four-year $20,000 loan has been secured from the XYZ bank to supply the
needed capital explained above.
Start-up

Requirements

Start-up Expenses

Business Cards $60

Phone Line Install (Two Lines) $150

Computer Monitor $200

InfoUSA Database $400

Office Equipment $580

Dedicated Server Setup Fee $150

Membership Fees $600

DSL Setup and Install $350

Phones $160

Total Start-up Expenses $2,650

Start-up Assets

Cash Required $17,000

Other Current Assets $7,650

Long-term Assets $0

Total Assets $24,650

Total Requirements $27,300

Start-up Funding

Start-up Expenses to Fund $2,650

Start-up Assets to Fund $24,650

Total Funding Required $27,300

Assets
Non-cash Assets from Start-up $7,650

Cash Requirements from Start-up $17,000

Additional Cash Raised $0

Cash Balance on Starting Date $17,000

Total Assets $24,650

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $20,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $20,000

Capital

Planned Investment

David W. Hickethier$3,650

Richard B. Andrews$3,650

Additional Investment Requirement $0

Total Planned Investment $7,300

Loss at Start-up (Start-up Expenses) ($2,650)

Total Capital $4,650

Total Capital and Liabilities $24,650

Total Funding $27,300

2.3 Company Locations and Facilities

We have an established commercial office space in Palmyra, PA under a two year

lease that will expire in October of 2001 with an option to renew every 60 days
thereafter. There is approximately 1,400 sq. ft. capable of housing workstations
for up to 12 workers. Palmyra is in Lebanon county, less than a 60 minute drive
to anywhere in our four county target market area.

Services

Ibrio Inc. is a full-service Internet solutions provider for small businesses. We

focus mainly on the Web, offering the following as our key 'Bread & Butter'
website services:

Design and development.

Marketing and analysis.

Hosting and maintenance.

We currently offer the following secondary services:

E-commerce development.

Website renovations and upgrades.

Application development (i.e. chatrooms, message boards, online polling, live-

feed audio/video, etc.).

Website maintenance training.

Internet/website education seminars.

Database construction.

We have plans to offer the following services within the next year:

Internet access service for small businesses.

Local Area Network (LAN) installation.

Intranet setup and installation.

Result-based website marketing.

3.1 Service Description

Website Design and Development: The service that we offer to small businesses
is modeled after the service that larger Web development firms offer Fortune
1000 companies in the sense that it is completely customized and unique to
each individual client.

Website Marketing and Analysis: After we build the website for our client, or a
new client introduces us to their pre-existing site, we offer this service. As
experts of the Web, we can analyze and test a website based on an established
set of standards that account for the website's aesthetic value, scalability,
functionality, ease-of-use, and main customer base. After an analysis has been
made, we then explore and present to the client a detailed list of the most
efficient Internet marketing tools and methods available to them within the
constraints of their budget. This type of service is pertinent to our company
given the fact that a very large percentage of our clients are on a tight budget
and can only afford to take advantage of marketing efforts that are targeted
directly at their desired demographic.

Website Hosting and Maintenance: This service is offered for two reasons. The
first reason is because they are both ongoing, continual services that we can use
to establish and maintain a strong residual income. The second reason for
offering these services is to allow for packaging together with other services
either Ibrio Inc. offers, or services an outside company can provide, hence
allowing us to expand our range of small business Internet services.

3.2 Sales Literature

IbrioInc. currently distributes a sales folder with all the pertinent information
about our company and services. This folder includes our strong points, history,
portfolio examples, and pricing packages info. It also contains facts based on the
growth and popularity of the Internet for small businesses.

Ibrio Inc. currently operates and maintains a fully-functioning website that

provides information about the company, plus a variety of helpful resources for
small business owners which we will be constantly updating.

In the next six months, we plan to produce and distribute bulk mail and fax flyers
promoting our Web development and hosting services to small businesses in
Central PA to solicit new business.
We have plans to offer a more compact version of our main sales folder in a
brochure format. This brochure will be available both as a mailer to interested
parties and as a sales solicitation in area businesses.

3.3 Fulfillment

For the website design, development, marketing, analysis, and maintenance we

will employ industry professionals to handle our clients' needs. Working for the
company presently is Brandon Andrews, a professional website development
engineer and strategist with four years of experience in the commercial Web
development industry. To keep employee costs low, we have designed a "team"
development system that will consist of two full-time sales people and three full-
time Web developers. Of the Web developers, one position will be filled by a
highly-qualified senior Web professional and two lesser-qualified, lower paid
developers. All three will work full-time on separate projects provided to them by
the sales people. However, the senior developer will have the duty of
maintaining the same high quality level of work in the junior developers'
projects, that our clients have learned to expect from us now.

For the website hosting services we offer, Ibrio Inc. has formed several alliances
with industry leaders to provide top-rate, reliable hosting solutions. Forming the
alliances has allowed us much flexibility in important hosting features,
customizability, and it has drove costs down dramatically. All these benefits are
crucial to preserving the integrity of our company as being a 'fully-rounded
Internet solutions provider' for small businesses.

3.4 Technology

It is a given that technology and keeping up with new innovations strongly

influence our business. We operate a Windows® based Local Area Network (LAN)
in the office that is equipped with the most current software and hardware tools
available to meet our project requirements. Within the next year, we will be
investing in additional tools that will extend our capabilities in handling various
types of program files (i.e. Macintosh computers, large capacity data storage,
and high-end image scanners). We also have plans to purchase licensing
agreements with our major software vendors to allow for automatic upgrades in
new software tools.

Currently we own and operate both a professional digital and film camera for the
purpose of offering on-site and in-house product and business photography to
our clients. We would like to improve upon these services in the near future by
purchasing a more complete photography system, it has been our experience
that this is a service many small businesses are recognizing as a crucial part of
their online marketing efforts and would take advantage of it were we to offer
such a service.

3.5 Future Services

Local Area Network Installation: These days, a quickly increasing number of

small businesses are using computers as a necessary tool in the everyday
operations of the company. We would like to be able to expand our current
services to meet this new demand. We will handle every aspect of setting up a
small business with an internal network of computers from purchasing, installing,
and configuring the machines to software integration and educating the
employees on proper usage and operating functions.

Intranet Setup Installation: In our plan, after developing an Internet website for
outside marketing purposes, we would like to offer the service of implementing
the website into the network for use in all the business day-to-day operations.
This would include extensive product/service cataloging, vital employee and
management information, sharing of accounting and inventory details, etc., all
intended for strictly company uses.

Internet Access for Small Business: This feature would act as another residual,
packageable service. We would target small businesses exclusively allowing us to
provide more flexibility and affordability to our clients through discounted high
volume rates, value added service packages, and much more aggressive
technical support services.

Result-based Marketing: This is a service that no small business can turn down.
We have plans to offer aggressive, intensified marketing services with the fees
based solely on results. To achieve this, we are in the process of forming multiple
partnerships and alliances with industry specific Internet websites and various
other software and service-oriented companies that provide specific marketing
services and tools based on results achieved. We feel as though offering this rare
service will dramatically increase our portfolio of clients.

Market Analysis Summary

Ibrio Inc. will initially focus almost exclusively on small companies looking to
develop an Internet presence for the first time. We will market our services to
small business owners as a "step-by-step" process, initially starting out with a
small, simple website, then gradually improving and adding to the site and their
entire online marketing efforts.
Although we plan to bring on many clients who simply will need an online
presence and nothing more, our most important and sought after clients will be
those business owners who are ready to implement a larger percentage of their
company onto the Internet. This type of client will traditionally need one of the
following services:

E-commerce/shopping cart.

Database driven websites.

Dynamic content and website features.

Aggressive online website marketing.

4.1 Target Market Segment Strategy

Ibrio Inc. will focus the majority of sales and marketing efforts toward attracting
small businesses. The reason for this decision is simply the low amount of
services available for a market with such a high demand. In addition to the very
promising supply and demand ratio, it is also technically easier and less
expensive to market to and attract small website projects than larger projects.

4.1.1 Market Needs

The need for small business Internet services has existed for several years. Small
businesses and start-up businesses alike are migrating onto the Web at an
astonishing rate and making their online presence a higher priority than in earlier
years. We have noticed an enormous hole however in the small business services
that are currently available.

Without a doubt, there is a need for custom, high-end, dynamic services

designed exclusively for small businesses. At this point, the majority of our
competitors are offering services tailored around big business, to small business
owners, or they are offering the exact opposite, one-dimensional, "cookie cutter"
type services.

While every small business has now recognized the need for having a presence
on the Internet, many do not know where to start, how much it will cost, or even
how it will benefit their company. It has been our experience by talking to small
business owners that the decision to take advantage of the Web is not a matter
of 'if' but a matter of 'when.'

4.1.2 Market Trends

An important market trend right now is the one toward aggressive online and
website marketing. Although many small businesses are still waiting to gain an
Internet presence, those who already have are beginning to look for more
options along the lines of improving their existing efforts. We believe that in the
upcoming years, small companies especially, will start to look for more ways to
increase the traffic to their websites.

Another important trend is the overall merging of daily business operations with
the Internet and World Wide Web. Just as the majority of large companies have
already started to use the Web to handle interoffice tasks, we believe that many
smaller companies will begin to realize the time and money saving advantages
to this strategy.

4.1.3 Market Growth

Our target market has been growing and expanding toward Internet and Web
usage at an astonishing rate. In addition, Internet usage by our clients'
customers has been growing exponentially. Below are supporting facts on our
target market growth:

By 2001, small businesses (1-99 employees) will spend in upwards of $22 billion
to either gain an Internet presence or improve their existing efforts. This number
is up from $12 billion in 2000 (Activemedia Research).

Small and home-based business' Internet usage is at approx. 81%, this is an

increase from only 26% usage in 1996. It is estimated to reach almost 95% by
the year 2004 (IDC Research).

Total U.S. business Information Technology (IT) expenditures for 2000 are $119.1
billion and will reach $285 billion by the year 2003. The year 2000 will also be
the first year that U.S. businesses spend more of their total IT expenditures on
Web-related services than on IT hardware (IDC Research).

Currently, the total number of online users in the U.S. is 107 million, by 2004 that
number will grow to 210 million (IDC Research).

E-commerce revenue will reach nearly $6.8 trillion by the year 2004, up from
$48.6 billion in 2000 (Forrester Research Group).

4.2 Service Business Analysis

Web services and development companies vary greatly in the type of service
they offer and the type of client they attract. Ibrio Inc. will be relatively unique in
the fact that we are marketing exclusively to small businesses.
This industry consists of many small Web development firms usually less than 10
years old that generally start out offering services to smaller companies but with
long-term goals of catering to large, corporate Web accounts.

4.2.1 Main Competitors

Teeple Graphics: Located approximately 10 miles from our Palmyra offices, they
offer Web development and graphic services.

Strengths: Teeple has a very strong clientele, by talking to several of their Web
development clients, we have come to the conclusion that Teeple offers a very
dependable and high-quality service.

Weaknesses: Teeple Graphics is owned and operated by George Teeple, he is also

the only employee working for the company out of his home, and does not run
his business as a full-time operation. In addition, Teeple Graphics requires all
clients who operate an e-commerce website to pay his company a commission
on the revenue generated by the site, this is paid on top of the development fee
that Teeple charges.

Sharp Innovations: Located approximately 30 miles from our Palmyra offices,

they offer Web development services to small businesses in the Lancaster, PA
area.

Strengths: Sharp Innovations has a large market share in its area, offering a very
broad range of services from Web development, e-commerce, graphic design,
and Internet access.

Weaknesses: Sharp Innovations is a young company with very high overhead.

They market themselves as "The Small Business Internet Marketing Professionals
of Central PA," but the types of services they offer and their very high prices do
not in anyway reflect the needs of small business owners. It is also our opinion,
after reviewing Sharp Innovations' portfolio that they lack a certain level of
technical and aesthetic design knowledge that so many small businesses are
beginning to demand.

Say1.net: Located approximately 10 miles from our Palmyra, PA location. They

offer a wide range of community and business-related Web services in the
Lebanon, PA and surrounding areas.

Strengths: Say1 has established a 'portal' type website designed to serve the
Lebanon and surrounding areas with useful information regarding community
events and business listings. This could serve as a valuable tool to their clients
when marketing to that area.

Weaknesses: For a company that claims to be experts in marketing for small

business, they do virtually no advertising of their own and it appears that they
lack in the ability to bring on clients that are outside the city of Lebanon. Even
though Web development is a service that Say1 offers, it is only one in a long list
of varied services and we believe this will dramatically hinder their focus toward
leading the industry in our market.

WebWorks: Located approximately 25 miles from our Palmyra, PA offices.

WebWorks offers Web development and marketing services to businesses in the
Greater Harrisburg, PA area.

Strengths: WebWorks has been in the Web services business for almost six years
and has a very experienced team of developers and programmers. They also
offer outstanding marketing services.

Weaknesses: Although WebWorks is a direct competitor, they have begun to

focus a large portion of their services toward attracting medium- to large-sized
companies. Their pricing is dramatically higher than any competing firms in the
Central PA area and they now have put into effect a policy of only excepting jobs
of a certain size.

4.2.2 Business Participants

The Web services and development industry consists mainly of three different
types of firms.

The first type are the very large, high revenue companies who service larger
Fortune 1000 corporations and well-funded Internet based start-ups exclusively.
In this category are only a few worldwide participants that dominate.

The second type of firm offers pre-fabricated, all-in-one, proprietary type Web
services to any size company at a very low cost or without any cost. The
participants in this category consist of a few dominating companies that mainly
all have additional sources of revenue and only offer Web services as a value-
added service or additional attraction.
The third type of firm is our classification, that is the smaller, usually very young
companies that market to small- and medium-sized businesses in their local
area. Currently there are a large number of participants in this category, but no
dominating forces.

4.3 Market Segmentation

Our target market is separated into the four surrounding counties listed below:

Dauphin County: Located to the West, approximately five miles from our location.
The number of businesses is estimated at 6,723. It will make up 23% of our four
county target area.

Lancaster County: Located Southeast, approx. 20 miles from our location. We

would like to begin marketing in this area within four months. The number of
businesses is estimated at 11,299. It will make up 40% of our target area.

Lebanon County: Our office is located in Lebanon County. Lebanon is the smallest
of the four counties and therefore we will market in proportion to its size. The
number of businesses is estimated at 2,547. It will make up 9% of our target
area.

York County: Located Southwest, approx. 40 miles from our location. York county
is the last of the four counties we will market in. It will be late next year before
we begin marketing in this county. The number of businesses is estimated at
8,238. It will make up 28% of our target area.

Our business allows us to offer services to small companies, no matter their

geographical location, and we plan to do so, eventually expanding outside our
immediate area. The above counties are where we will market most heavily and
expect to receive the majority of our work. We do expect to receive a small
portion from outside this target area due to ad placement in a national business
directory.

The above demographic information can be found through the Geospatial &
Statistical Data Center.
Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Dauphin County 2% 6,723 6,844 6,967 7,092 7,220 1.80%

Lancaster County 2% 11,299 11,502 11,709 11,920

12,135 1.80%

Lebanon County 2% 2,593 2,645 2,698 2,752 2,807 2.00%

York County 2% 8,238 8,403 8,571 8,742 8,917 2.00%

Total 1.88% 28,853 29,394 29,945 30,506 31,079

1.88%

Strategy and Implementation Summary

Ibrio Inc. will initially focus all marketing and sales efforts toward the Central
Pennsylvania area, this includes Harrisburg, Lebanon, Lancaster, and York
counties.

We will market ourselves as an Internet and Web services organization devoted

to offering high-end services to small businesses exclusively. Our target
customer will be the owners of any small or home-based company who are
looking to implement their business into the Web.

5.1 Competitive Edge

We have a valuable competitive edge over our local competitors based on the
fact that we have streamlined all our services into the small business market.
Through setting up several strategic partnerships with various Internet and Web-
related companies, we are able to offer our clients an affordable and efficient
proprietary Web package that will meet all their related needs.

Ibrio Inc. also has as its lead development manager, Brandon Andrews, a main
principal in the company. Brandon Andrews has four years of commercial Web
development experience and has been recognized as a leader and innovator in
the graphic design and layout areas of website development.

5.2 Marketing Strategy

Successful marketing of Web services to small business owners depends on how

you approach and follow-up every potential client. It is very important to deliver
our marketing pitch in a clear, no non-sense method. Details of the Internet and
Web are still relatively unknown by many small business owners, giving it the
tendency to confuse and intimidate easily.

5.2.1 Marketing Programs

The following is a summary of our marketing programs from the Milestones table:

We will begin our marketing by acquiring memberships from the following

organizations (October 2-9):

Lebanon Chamber of Commerce.

Harrisburg Chamber of Commerce.

Hershey Partnership.

We plan on doing a large scale marketing project during this month including
(March 5 - April 5, 2001):

Radio advertising (WHP 580).

Ad placement in local trade publications (The Central Penn Business Journal).

Billboard Ads to promote wide-spread name recognition.

5.2.2 Pricing Strategy

For most small business owners, cost, both residual and one-time are huge
influences on the decisions they make regarding everyday operations of their
company. Even though we offer 100% customized services and our pricing is
based on an hourly fee, to make it easier and less confusing for the clients, Ibrio
has established a packaged pricing system.

Budget Domain Website Package ($585.00): For simple, information based

websites. Popular with companies who just need to gain an Internet presence.

Mid-Level Website Package ($945.00): Information based websites with a large

amount of content. Popular with companies that have a large services/products
list and/or want to implement more of their business into the Web.

Catalog Website Package ($1,440.00): Usually reserved for product-oriented

websites that are e-commerce enabled. Popular with companies that have a
desire to market heavily on the Internet or sell their products/services directly
from the Web.

Website Hosting (from $15.00 to $45.00 per month): Depending on the type and
size of the website, the price for hosting can vary greatly. The average cost of
hosting for most clients is $25 per month.

Website Maintenance ($45.00 per hour): We charge a set fee of $45.00 per hour
billed in 10 minute increments. If a client feels as though they will need their
website updated or maintained on a regular basis, packages are available at a
discount rate.

5.2.3 Promotion Strategy

Our target client is part of a very specific demographic, for this reason, we
market and promote our services in a direct and specifically targeted manner.

Print Ads:

Currently we advertise in eight separate area yellow page directories. All our ads
appear under either the Internet Services or Website Design headings.

Ibrio Inc. also has an ad listing in a national business directory under the heading
of Web Developers.
In the near future we will feature ads in several area business publications such
as The Central Penn Business Journal and the Who's Who in Dauphin County.

Direct Mail and Fax:

We have sent out targeted bulk mail flyers promoting special offerings by our
company.

We have participated in targeted broadcast fax promotions to small businesses in

our area.

In the near future we will begin a new aggressive, ongoing bulk mail campaign to
promote our Web development and hosting services.

Mass Media Ads:

We will begin advertising on a broader scale within the next six months. Radio
spots will be continuously played during local area talk shows and news
programs, this placement is intended to reach the highest percentage of our
target client possible.

Billboard ad placement will be the second mass media marketing campaign we

will implement into our marketing efforts. Billboard ads will be intended as 'name
recognition' advertising.

Educational Seminars:

Ibrio Inc. has been invited to speak to business owners and managers at several
Internet and Web-related educational seminars on a variety of topic. In the near
future, we will promote our services through these seminars.

Local Area Commerce Groups:

To promote our services and our name as a participant in the Web services
industry, we will be joining many of the local area Chamber of Commerce groups
and various other strategic partnership clubs.

5.3 Sales Strategy

Our clients are small business owners, most are very protective of their
company, and almost all of them are salesmen themselves. We sell value,
service, and quality when we talk to business owners. We need to convince them
that they can look past all of the hype surrounding the Internet and still see why
having a website is worth the money spent.
We currently utilize a database system specifically targeted toward our desired
demographic to establish our first contact with every potential client. It has
proven a successful method for soliciting new business directly due to the
method in which we approach the first call. The salesman always requests to
speak to the business owner, asking for him by his first name only, and when
asked who is calling, responds by providing simply his first name as well. Once
on the phone with the business owner, there is absolutely no script and the
salesman clearly identifies himself and asks the business owner if he has ever
considered having a website developed for his company, no matter what the
response, a brief conversation will always pursue, sometimes leading to an
appointment, and sometimes to a follow-up call.

Because we have full confidence in our services, and recognize that business
owners are generally open to the idea of utilizing the Internet and most even
consider it a necessity, we take a very low-pressure, non-abrasive approach to
direct selling. We will normally present the information about our company,
portfolio, strengths, and pricing to the client and let them make the decision on
their own. This method has proven successful provided that we keep our follow-
up calls consistent and regular until we receive either a yes or no answer.

5.3.1 Sales Forecast

The following table and chart summarize our forecast sales. We expect the first
month of operations (October) to be spent training the new developer and new
salesman. November will be our first month of operation and we expect to grow
steadily in the following months.

Website development sales will be the largest portion of our revenue with result-
based marketing following. Maintenance and hosting revenue will be built up
slowly but are the residual base we will stand on in the future.
Sales Forecast

Year 1 Year 2 Year 3

Sales

Website Development $117,000 $350,000 $750,000

Result-based Marketing $19,250 $81,900 $199,500

Maintenance $14,230 $43,000 $130,000

Hosting $14,040 $40,000 $115,000

Total Sales $164,520 $514,900 $1,194,500

Direct Cost of SalesYear 1 Year 2 Year 3

Website Development $0 $0 $0

Result-based Marketing $9,900 $35,000 $102,600

Maintenance $0 $0 $0

Hosting $5,650 $15,000 $25,000

Subtotal Direct Cost of Sales $15,550 $50,000 $127,600

5.3.2 Sales Programs

The following is a summary of the our sales programs from the Milestones table:

October 9-16: Hiring first salesman. We will be training this employee this month
to make telephone calls to business owners in the area and set appointments to
meet with them and show them what we have to offer. Starting in mid-November
he/she will begin meeting with clients alone.

October 23 - November 2: We will be updating our sales literature including

creating brochures, and printing leaflets to be placed in our presentation folders.

February 12-26: Hiring second salesman. We will be training this salesman in the
same fashion previously stated.

5.4 Strategic Alliances

Currently, we do not participate in any co-marketing or co-development efforts

with outside companies. However, we have specific plans to establish several
strategic partnership programs with area ISPs (Internet Service Providers) and
computer consulting companies. These partnerships are intended to attract more
sub-contracting work from potential competitors, in exchange for a commission
to be paid for each lead and resulting new client.

5.5 Milestones

The accompanying table lists important program milestones, with dates and
managers in charge, and budgets for each. The milestone schedule indicates our
emphasis on planning for implementation.
What the table doesn't show is the commitment behind it. Our business plan
includes complete provisions for plan-vs.-actual analysis, and we will hold
monthly follow-up meetings every month to discuss the variance and course
corrections.

Milestones

Milestone Start Date End Date Budget Manager Department

Incorporation 8/14/2000 8/28/2000 $500 Dave Admin

Acquire Start-up Financing 8/14/2000 10/1/2000 $0 Dave Admin

Accounting/Balance Sheet Setup8/31/2000 8/31/2000 $300 Dave Admin

Acquire Chamber Memberships 10/2/2000 10/9/2000 $600 Dave Marketing

Staff Sales Position #1 10/9/2000 10/16/2000 $2,240 Dave HR

Staff Development Position #1 10/16/2000 10/23/2000 $3,200 Brandon

HR

Upgrade Current Sales Literature 10/23/2000 11/6/2000 $300 Dave

Sales

Acquire Dedicated Web Host Service 11/1/2000 11/8/2000 $770 Brandon

Development

Staff Development Position #2 1/15/2001 2/1/2001 $3,200 Brandon

HR

Staff Sales Position #2 2/12/2001 2/26/2001 $2,240 Dave HR

Acquire Large Scale Outside Marketing 3/5/2001 4/5/2001 $2,000

Dave Marketing

Staff Developer Postion #3 3/19/2001 4/2/2001 $3,200 Brandon

HR

Other 1/1/2001 1/1/2001 $0 ABC Department

Totals $18,550

Management Summary

Ibrio Inc. is owned and operated by two partners with equal equity in the
company, and both directors in the corporation.
David Hickethier attended Williamson College on a three year scholarship basis,
earning his Associates Degree in construction management. He has completed
many business management and business finance courses and has also had
hands on experience with managing people. He has one year experience in
Internet and Web-related sales and nearly two total years of professional sales
experience.

R. Brandon Andrews is an experienced website developer and strategist with

over four years of commercial Web and Internet services experience, plus
numerous attendance to various related seminars and educational classes.
Previous to the forming of Ibrio Inc., he owned and operated a sole-
proprietorship, which offered similar Web-related services, but did not market
exclusively to small business.

6.1 Organizational Structure

Ibrio Inc. will depend on the two main principals, David Hickethier and Brandon
Andrews, for all management responsibilities. This will include office
management, accounts receivable and payable, marketing, and talent
recruitment.

David Hickethier will serve as chief operations officer and sales manager. He will
supervise all salesmen and all sales promotions and projects. David will also be
holding the office of the treasurer therefore will be responsible for all financial
related matters.

Brandon Andrews will serve as chief technology officer and lead Web developer.
He will be directly supervising all Web development (employee and sub-
contracting projects), and will also be responsible for any necessary training in
the same department.

6.2 Management Team Gaps

The current management team will require support in both the business
development and administrative departments. Both managers have had prior
experience in these fields, but feel as though their experience is limited given
the fact that prior working environments rarely required this type of support.

We will turn to Parks & Company, our finance and accounting firm, to provide
expert advise and counseling in both the business development and
administrative support departments. This strategy will allow the partners of Ibrio
Inc. to lend the majority of their time to their respective areas of the company.

We will turn to the law offices of Keefer Wood Allen & Rahal, LLP for all advice
concerning the legal issues of running Ibrio, Inc.

6.3 Personnel Plan

We visualize implementing a "team" development system that will consist of two

full-time sales people and three full-time Web developers. Of the Web
developers, one position will be filled by a highly-qualified senior Web
professional and two lesser-qualified, lower paid developers. All three will work
full-time on separate projects provided to them by the sales people. However,
the senior developer will have the duty of maintaining the same high quality
level of work in the junior developers' projects, that our clients have learned to
expect from us now. By May, 2001 we plan to have one of these teams fully
functional.

The following table shows how we plan on making the above a reality.

Personnel Plan

Year 1 Year 2 Year 3

Production Personnel

Brandon/Web Developer $3,400 $25,000 $60,000

Keith/Hired in Oct $16,228 $23,000 $27,000

Developer #2/Hired in Feb $10,944 $21,000 $25,000

Developer #3/Hired in Apr $7,920 $21,000 $25,000

Other $0 $0 $0

Subtotal $38,492 $90,000 $137,000

Sales and Marketing Personnel

Dave/Marketing $3,400 $25,000 $60,000

Sales Position #1/Hired in Oct $16,504 $23,000 $25,000

Sales Position #2/Hired in Feb $10,096 $21,000 $23,000

Other $0 $0 $0

Subtotal $30,000 $69,000 $108,000

General and Administrative Personnel

N/A $0 $0 $0

N/A $0 $0 $0

Subtotal $0 $0 $0

Other Personnel

N/A $0 $0 $0

N/A $0 $0 $0

Subtotal $0 $0 $0

Total People 7 7 7

Total Payroll $68,492 $159,000 $245,000

Financial Plan

Ibrio's financials summarize the following areas:

Important Assumptions.

Key Financial Indicators.

Break-even Analysis.

Projected Profit and Loss.

Projected Cash Flow.

Projected Balance Sheet.

Business Ratios.

7.1 Important Assumptions

Our financial assumptions are based on a steady economy and standard

numbers for a business in our industry.

General Assumptions
 Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 13.00% 13.00% 13.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

7.2 Key Financial Indicators

The following chart indicates our key financial indicators over the next three
years.

7.3 Break-even Analysis

The following table and chart summarize our break-even analysis. With two
developers and two salesmen we plan on developing eight sites in November
and once the two new hires are fully trained doubling the number to 16 sites a
month. (We don't plan on that happening until March 2001).

The average variable cost is an aggregate measure for all the types of services
which will be offered.
Break-even Analysis

Monthly Revenue Break-even $4,649

Assumptions:

Average Percent Variable Cost 9%

Estimated Monthly Fixed Cost $4,210

7.4 Projected Profit and Loss

Our projected profit and loss is shown on the following table. Some highlights
are the Gross Margin at 67% for our first year and steadily increasing. Our Net
Profit/Sales starting at 26% and increasing by approximately 10% the following
two years to reach 45% by our third year.
Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $164,520 $514,900 $1,194,500

Direct Cost of Sales$15,550 $50,000 $127,600

Production Payroll $38,492 $90,000 $137,000

Other $0 $0 $0

Total Cost of Sales $54,042 $140,000 $264,600

Gross Margin $110,478 $374,900 $929,900

Gross Margin % 67.15% 72.81% 77.85%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll $30,000 $69,000 $108,000

Advertising/Promotion $2,790 $3,500 $10,000

Travel $1,020 $3,000 $7,000

Miscellaneous $0 $1,000 $2,500

Total Sales and Marketing Expenses $33,810 $76,500 $127,500

Sales and Marketing % 20.55% 14.86% 10.67%

General and Administrative Expenses

General and Administrative Payroll $0 $0 $0

Sales and Marketing and Other Expenses $0 $0 $0

Depreciation $3,180 $5,000 $12,000

Rent $4,500 $12,000 $24,000

Depreciation $0 $2,000 $4,000

Leased Equipment $0 $0 $0

Utilities $805 $2,000 $5,000

Insurance $0 $2,500 $5,000

Payroll Taxes $8,219 $19,080 $29,400

Other General and Administrative Expenses $0 $0 $0

Total General and Administrative Expenses $16,704 $42,580 $79,400

General and Administrative % 10.15% 8.27% 6.65%

Other Expenses:

Other Payroll$0 $0 $0

Consultants $0 $0 $0
Contract/Consultants $0 $0 $0

Total Other Expenses $0 $0 $0

Other % 0.00% 0.00% 0.00%

Total Operating Expenses $50,514 $119,080 $206,900

Profit Before Interest and Taxes $59,964 $255,820 $723,000

EBITDA $63,144 $260,820 $735,000

Interest Expense $2,600 $2,302 $1,664

Taxes Incurred $14,330 $63,380 $183,340

Net Profit $43,034 $190,139 $537,996

Net Profit/Sales 26.16% 36.93% 45.04%

7.5 Projected Cash Flow

Cash flow projections for the first half of the year are slightly declining and in
May they begin to raise sufficiently. We may need to borrow against our accounts
receivables but are projecting that the initial capital raised should cover us until
our cash becomes fluid.
Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $54,292 $169,917 $394,185

Cash from Receivables $70,969 $261,372 $638,141

Subtotal Cash from Operations $125,260 $431,289 $1,032,326

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets$0 $0 $0

New Investment Received$10,700 $0 $0

Subtotal Cash Received $135,960 $431,289 $1,032,326

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $68,492 $159,000 $245,000

Bill Payments $40,764 $156,598 $379,881

Subtotal Spent on Operations $109,256 $315,598 $624,881

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $4,589 $5,222

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $20,000 $20,000

Dividends $0 $0 $0

Subtotal Cash Spent $109,256 $340,187 $650,103

Net Cash Flow $26,704 $91,102 $382,224

Cash Balance $43,704 $134,806 $517,029

7.6 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of
net worth, and a sufficiently healthy financial position. The monthly estimates
are included in the appendix.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $43,704 $134,806 $517,029

Accounts Receivable $39,260 $122,871 $285,045

Other Current Assets $7,650 $7,650 $7,650

Total Current Assets $90,614 $265,327 $809,724

Long-term Assets

Long-term Assets $0 $20,000 $40,000

Accumulated Depreciation $3,180 $8,180 $20,180

Total Long-term Assets ($3,180) $11,820 $19,820

Total Assets $87,434 $277,147 $829,544

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $9,050 $13,213 $32,836

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $9,050 $13,213 $32,836

Long-term Liabilities $20,000 $15,411 $10,189

Total Liabilities $29,050 $28,624 $43,025

Paid-in Capital $18,000 $18,000 $18,000

Retained Earnings ($2,650) $40,384 $230,523

Earnings $43,034 $190,139 $537,996

Total Capital $58,384 $248,523 $786,519

Total Liabilities and Capital $87,434 $277,147 $829,544

Net Worth $58,384 $248,523 $786,519

7.7 Business Ratios

The following table shows the projected businesses ratios. We expect to maintain
healthy ratios for profitability, risk, and return. The Industry Profile ratios, shown
for comparison, are based on Standard Industrial Classification (SIC) code 7375,
Information Retrieval Services.

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 212.97% 131.99% 9.70%

Percent of Total Assets

Accounts Receivable 44.90% 44.33% 34.36% 25.00%

Other Current Assets 8.75% 2.76% 0.92% 46.30%

Total Current Assets 103.64% 95.74% 97.61% 76.60%

Long-term Assets -3.64% 4.26% 2.39% 23.40%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 10.35% 4.77% 3.96% 49.40%

Long-term Liabilities 22.87% 5.56% 1.23% 21.20%

Total Liabilities 33.23% 10.33% 5.19% 70.60%

Net Worth 66.77% 89.67% 94.81% 29.40%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 67.15% 72.81% 77.85% 0.00%

Selling, General & Administrative Expenses 41.00% 35.88% 32.56%

78.10%

Advertising Expenses 1.70% 0.68% 0.84% 0.90%

Profit Before Interest and Taxes 36.45% 49.68% 60.53% 1.90%

Main Ratios

Current 10.01 20.08 24.66 1.57

Quick 10.01 20.08 24.66 1.19

Total Debt to Total Assets 33.23% 10.33% 5.19% 70.60%

Pre-tax Return on Net Worth 98.25% 102.01% 91.71% 4.10%

Pre-tax Return on Assets 65.61% 91.47% 86.96% 13.80%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 26.16% 36.93% 45.04% n.a

Return on Equity 73.71% 76.51% 68.40% n.a

Activity Ratios

Accounts Receivable Turnover 2.81 2.81 2.81 n.a

Collection Days 54 86 93 n.a

Accounts Payable Turnover 5.50 12.17 12.17 n.a

Payment Days 27 25 21 n.a

Total Asset Turnover 1.88 1.86 1.44 n.a

Debt Ratios

Debt to Net Worth 0.50 0.12 0.05 n.a

Current Liab. to Liab. 0.31 0.46 0.76 n.a

Liquidity Ratios

Net Working Capital $81,564 $252,114 $776,888 n.a

Interest Coverage 23.06 111.14 434.50 n.a

Additional Ratios

Assets to Sales 0.53 0.54 0.69 n.a

Current Debt/Total Assets 10% 5% 4% n.a

Acid Test 5.67 10.78 15.98 n.a

Sales/Net Worth 2.82 2.07 1.52 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

Sales

Website Development 0% $0 $0 $4,800 $5,400 $7,200

$8,400 $8,400 $11,200 $14,000 $19,200 $19,200
$19,200

Result-based Marketing 0% $0 $0 $0 $0 $0 $0 $1,750

$2,100 $2,800 $3,500 $4,200 $4,900

Maintenance 0% $0 $0 $110 $280 $510 $750 $1,010 $1,350

$1,790 $2,290 $2,810 $3,330
Hosting 0% $0 $0 $200 $300 $540 $780 $1,020 $1,340
$1,740 $2,200 $2,700 $3,220

Total Sales $0 $0 $5,110 $5,980 $8,250 $9,930

$12,180 $15,990 $20,330 $27,190 $28,910 $30,650

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
Month 11 Month 12

Website Development $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0

Result-based Marketing $0 $0 $0 $0 $0 $0 $900

$1,080 $1,440 $1,800 $2,160 $2,520

Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Hosting $0 $0 $350 $350 $350 $350 $350 $1,100

$700 $700 $700 $700

Subtotal Direct Cost of Sales $0 $0 $350 $350 $350 $350

$1,250 $2,180 $2,140 $2,500 $2,860 $3,220

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

Production Personnel

Brandon/Web Developer $0 $200 $200 $200 $300 $300 $300

$300 $400 $400 $400 $400

Keith/Hired in Oct $0 $0 $1,836 $1,152 $1,584

$1,440 $1,584 $1,512 $1,840 $1,680 $1,760
$1,840

Developer #2/Hired in Feb $0 $0 $0 $0 $0 $1,440

$1,584 $1,512 $1,656 $1,512 $1,584 $1,656

Developer #3/Hired in Apr $0 $0 $0 $0 $0 $0 $0

$1,512 $1,656 $1,512 $1,584 $1,656

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0
Subtotal $0 $200 $2,036 $1,352 $1,884 $3,180
$3,468 $4,836 $5,552 $5,104 $5,328 $5,552

Sales and Marketing Personnel

Dave/Marketing $0 $200 $200 $200 $300 $300 $300 $300

$400 $400 $400 $400

Sales Position #1/Hired in Oct $0 $0 $1,904 $1,080

$1,440 $1,680 $1,680 $1,680 $1,760 $1,760
$1,760 $1,760

Sales Position #2/Hired in Feb $0 $0 $0 $0 $0 $1,120

$1,232 $1,176 $1,288 $1,760 $1,760 $1,760

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

Subtotal $0 $200 $2,104 $1,280 $1,740 $3,100

$3,212 $3,156 $3,448 $3,920 $3,920 $3,920

General and Administrative Personnel

N/A $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

N/A $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Other Personnel

N/A $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

N/A $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Total People 0 2 4 4 4 6 6 7 7 7
7 7
Total Payroll $0 $400 $4,140 $2,632 $3,624 $6,280
$6,680 $7,992 $9,000 $9,024 $9,248 $9,472

General Assumptions

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

Plan Month 1 2 3 4 5 6 7 8 9 10
11 12

Current Interest Rate 10.00% 10.00% 10.00% 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
10.00% 10.00%

Long-term Interest Rate 13.00% 13.00% 13.00% 13.00%

13.00% 13.00% 13.00% 13.00% 13.00% 13.00%
13.00% 13.00%

Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00%

25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
25.00%

Other 0 0 0 0 0 0 0 0 0 0 0
0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

Sales $0 $0 $5,110 $5,980 $8,250 $9,930

$12,180 $15,990 $20,330 $27,190 $28,910 $30,650

Direct Cost of Sales $0 $0 $350 $350 $350 $350 $1,250

$2,180 $2,140 $2,500 $2,860 $3,220

Production Payroll $0 $200 $2,036 $1,352 $1,884

$3,180 $3,468 $4,836 $5,552 $5,104 $5,328
$5,552

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0

Total Cost of Sales $0 $200 $2,386 $1,702 $2,234

$3,530 $4,718 $7,016 $7,692 $7,604 $8,188
$8,772
Gross Margin $0 ($200) $2,724 $4,278 $6,016
$6,400 $7,462 $8,974 $12,638 $19,586 $20,722
$21,878

Gross Margin % 0.00% 0.00% 53.31% 71.54%

72.92% 64.45% 61.26% 56.12% 62.16% 72.03%
71.68% 71.38%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll $0 $200 $2,104 $1,280

$1,740 $3,100 $3,212 $3,156 $3,448 $3,920
$3,920 $3,920

Advertising/Promotion $0 $0 $230 $230 $230 $300 $300

$300 $300 $300 $300 $300

Travel $0 $0 $60 $60 $60 $120 $120 $120 $120 $120

$120 $120

Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0

Total Sales and Marketing Expenses $0 $200 $2,394 $1,570

$2,030 $3,520 $3,632 $3,576 $3,868 $4,340
$4,340 $4,340

Sales and Marketing % 0.00% 0.00% 46.85% 26.25%

24.61% 35.45% 29.82% 22.36% 19.03% 15.96%
15.01% 14.16%

General and Administrative Expenses

General and Administrative Payroll $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

Sales and Marketing and Other Expenses $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

Depreciation $0 $0 $300 $300 $300 $300 $330 $330 $330

$330 $330 $330
Rent $0 $0 $450 $450 $450 $450 $450 $450 $450 $450
$450 $450

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0

Utilities $0 $0 $55 $70 $70 $80 $80 $90 $90

$90 $90 $90

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Payroll Taxes 12% $0 $48 $497 $316 $435 $754 $802 $959 $1,080
$1,083 $1,110 $1,137

Other General and Administrative Expenses $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

Total General and Administrative Expenses $0 $48 $1,302

$1,136 $1,255 $1,584 $1,662 $1,829 $1,950
$1,953 $1,980 $2,007

General and Administrative % 0.00% 0.00% 25.48%

18.99% 15.21% 15.95% 13.64% 11.44% 9.59%
7.18% 6.85% 6.55%

Other Expenses:

Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0

Total Other Expenses $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00%

Total Operating Expenses $0 $248 $3,696 $2,706 $3,285

$5,104 $5,294 $5,405 $5,818 $6,293 $6,320
$6,347
Profit Before Interest and Taxes $0 ($448) ($972) $1,572
$2,731 $1,296 $2,168 $3,569 $6,820 $13,293
$14,402 $15,531

EBITDA $0 ($448) ($672) $1,872 $3,031

$1,596 $2,498 $3,899 $7,150 $13,623 $14,732
$15,861

Interest Expense $217 $217 $217 $217 $217 $217 $217 $217
$217 $217 $217 $217

Taxes Incurred ($65) ($166) ($297) $339 $629 $270

$488 $838 $1,651 $3,269 $3,546 $3,829

Net Profit ($152) ($499) ($891) $1,017 $1,886

$810 $1,464 $2,514 $4,953 $9,807 $10,639
$11,486

Net Profit/Sales 0.00% 0.00% -17.44% 17.00%

22.86% 8.16% 12.02% 15.72% 24.36% 36.07%
36.80% 37.47%

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

Cash Received

Cash from Operations

Cash Sales $0 $0 $1,686 $1,973 $2,723 $3,277

$4,019 $5,277 $6,709 $8,973 $9,540 $10,115

Cash from Receivables $0 $0 $0 $114 $3,443 $4,057

$5,565 $6,703 $8,246 $10,810 $13,774 $18,256

Subtotal Cash from Operations $0 $0 $1,686 $2,088

$6,166 $7,334 $9,584 $11,980 $14,955 $19,783
$23,315 $28,370
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $10,700

$0 $0 $0 $0 $0

Subtotal Cash Received $0 $0 $1,686 $2,088 $6,166

$7,334 $20,284 $11,980 $14,955 $19,783 $23,315
$28,370

Expenditures Month 1 Month 2 Month 3 Month 4

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
Month 11 Month 12

Expenditures from Operations

Cash Spending $0 $400 $4,140 $2,632 $3,624

$6,280 $6,680 $7,992 $9,000 $9,024 $9,248
$9,472

Bill Payments $5 $150 $147 $1,577 $2,045 $2,443

$2,579 $3,754 $5,184 $6,114 $8,051 $8,715

Subtotal Spent on Operations $5 $550 $4,287 $4,209

$5,669 $8,723 $9,259 $11,746 $14,184 $15,138
$17,299 $18,187

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0

Subtotal Cash Spent $5 $550 $4,287 $4,209 $5,669

$8,723 $9,259 $11,746 $14,184 $15,138 $17,299
$18,187

Net Cash Flow ($5) ($550) ($2,601) ($2,121) $497

($1,389) $11,025 $234 $771 $4,645 $6,016 $10,183

Cash Balance $16,995 $16,445 $13,844 $11,723

$12,219 $10,830 $21,855 $22,089 $22,860 $27,505
$33,521 $43,704

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12

AssetsStarting Balances

Current Assets

Cash $17,000 $16,995 $16,445 $13,844 $11,723 $12,219

$10,830 $21,855 $22,089 $22,860 $27,505 $33,521
$43,704
Accounts Receivable $0 $0 $0 $3,424 $7,316 $9,401
$11,996 $14,592 $18,602 $23,977 $31,384 $36,980
$39,260

Other Current Assets $7,650 $7,650 $7,650 $7,650

$7,650 $7,650 $7,650 $7,650 $7,650 $7,650
$7,650 $7,650 $7,650

Total Current Assets $24,650 $24,645 $24,095 $24,918

$26,689 $29,270 $30,476 $44,097 $48,341 $54,487
$66,540 $78,151 $90,614

Long-term Assets

Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0

Accumulated Depreciation $0 $0 $0 $300 $600 $900 $1,200

$1,530 $1,860 $2,190 $2,520 $2,850 $3,180

Total Long-term Assets $0 $0 $0 ($300) ($600) ($900)

($1,200) ($1,530) ($1,860) ($2,190) ($2,520) ($2,850)
($3,180)

Total Assets $24,650 $24,645 $24,095 $24,618 $26,089

$28,370 $29,276 $42,567 $46,481 $52,297 $64,020
$75,301 $87,434

Liabilities and Capital Month 1 Month 2 Month 3 Month 4

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
Month 11 Month 12

Current Liabilities

Accounts Payable $0 $147 $95 $1,509 $1,964 $2,359

$2,456 $3,583 $4,982 $5,846 $7,761 $8,403
$9,050

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0
Subtotal Current Liabilities $0 $147 $95 $1,509 $1,964
$2,359 $2,456 $3,583 $4,982 $5,846 $7,761
$8,403 $9,050

Long-term Liabilities $20,000 $20,000 $20,000 $20,000

$20,000 $20,000 $20,000 $20,000 $20,000 $20,000
$20,000 $20,000 $20,000

Total Liabilities $20,000 $20,147 $20,095 $21,509 $21,964

$22,359 $22,456 $23,583 $24,982 $25,846 $27,761
$28,403 $29,050

Paid-in Capital $7,300 $7,300 $7,300 $7,300 $7,300

$7,300 $7,300 $18,000 $18,000 $18,000 $18,000
$18,000 $18,000

Retained Earnings ($2,650) ($2,650) ($2,650) ($2,650) ($2,650)

($2,650) ($2,650) ($2,650) ($2,650) ($2,650) ($2,650)
($2,650) ($2,650)

Earnings $0 ($152) ($650) ($1,542) ($525) $1,361

$2,171 $3,635 $6,149 $11,101 $20,909 $31,548
$43,034

Total Capital $4,650 $4,498 $4,000 $3,108 $4,125

$6,011 $6,821 $18,985 $21,499 $26,451 $36,259
$46,898 $58,384

Total Liabilities and Capital $24,650 $24,645 $24,095 $24,618

$26,089 $28,370 $29,276 $42,567 $46,481 $52,297
$64,020 $75,301 $87,434

Net Worth $4,650 $4,498 $4,000 $3,108 $4,125

$6,011 $6,821 $18,985 $21,499 $26,451 $36,259
$46,898 $58,384