1.

0 Executive Summary

DIMENSION Painters will provide top-quality interior and exterior residential and commercial painting services. !e principal o""icers o" DIMENSION Painters #elieve t!at most companies in t!is industry su""er two ma$or pro#lems. !ese are poor sc!eduling o" $o# pro$ects and poor retention o" quality employees. %ot! lead to lower customer satis"action& lac' o" repeat #usiness and a low word-o"-mout! re"erral rate. DIMENSION Painters #elieves t!at it can improve upon and exploit t!ese wea'nesses to gain local mar'et s!are. !e o#$ectives "or DIMENSION Painters over t!e next t!ree years are( o ac!ieve sales revenues o" approximately )*+,,,,, #y year t!ree. o ac!ieve a customer mix o" -,. commercial/0,. residential #uilding contracts per year. o expand operations to include all t!e %1SINESS 2 3ESEDEN I45 area including 6743843& P4N9E5& 4ND7E3I& M151ND& 74NE. !e company will see' to provide its painting services in t!e most timely manner and wit! an ongoing compre!ensive quality-control program to provide :,,. customer satis"action. !e company;s principal o""icers see eac! contract as an agreement not #etween a #usiness and its customers& #ut #etween partners t!at wis! to create a close and mutually-#ene"icial long-term relations!ip. !is will !elp to provide greater long-term pro"its t!roug! re"errals and repeat #usiness. DIMENSION Painters will institute t!e "ollowing 'ey procedures to reac! its goals( <reate a position o" inventory coordinator& and !ave at least one expeditor assigned to eac! pro$ect. 7ave a dedicated pro$ect manager "or eac! pro$ect w!o can !andle quality-control issues. Institute a program o" pro"it s!aring among all employees.

DIMENSION Painters is a start-up limited lia#ility company consisting o" t!ree principal o""icers wit! com#ined industry experience o" =, years. DIMENSION Painters will #e a partners!ip #etween Mr. 6alpes! Pare'!& Mr. 6us!al !a''ar 2 Mr. 4mit 8!adi. !e principals will #e investing signi"icant amounts o" t!eir own capital into t!e company and will also #e see'ing a loan o" 3s.-&:>&,,, to cover start-up costs and "uture growt!. ?inally& t!e company !as procured a

3s.=&>,&,,, line o" credit @not s!own on "inancial statementsA t!at will #e used i" necessary to cover un"oreseen expenses or opportunities. DIMENSION Painters will #e located in a rented suite in t!e %IM4 <omplex& ) nd "loor& 6alam#oli& Navi Mum#ai& opposite to 7industan Steel Bard. !e "acilities will include a reception area& o""ices "or t!e principals& storage area "or inventory& and employee lounge. DIMENSION Painters o""ers a
wide variety o" services primarily "ocused on interior and exterior residential and commercial painting. !e "irm also provides suc! services as drywall plastering& "alse ceilings& pressure was!ing& and ot!ers. !e idea is to provide clients wit! a #road range o" related services t!at will minimiCe t!eir need to employ a variety o" contractors. DIMENSION Painters will engage in a low-cost leaders!ip strategy w!ile maintaining

a suita#le level o" quality. Initially t!e company will "ocus on residential and commercial customers in t!e 6!argar& Panvel& 2 4nd!eri. 7owever& #y t!e end o" t!e t!ree-year pro$ections& t!e company expects to #e serving t!e entire Navi Mum#ai area. !e company !as rigorously examined its "inancial pro$ections
and concluded t!at t!ey are #ot! conservative in pro"its and generous in expenditures. !is was done deli#erately to provide "or un"oreseea#le events. !e company;s principals #elieve t!at cas! "low pro$ections are realistic.
1.1 Objectives

!e o#$ectives "or DIMENSION Painters over t!e next t!ree years are to( 4c!ieve sales revenues o" approximately ),&)>&,,,, #y year t!ree. 4c!ieve a customer mix o" -,. commercial 0,. residential #uilding contracts per year. Expand operations to include all t!e 6!argar& Panvel& 2 4nd!eri 2 t!e Navi Mum#ai.

1.2 Mission

!e mission o" DIMENSION Painters is to provide top-quality interior and exterior residential and commercial painting services. !e company will see' to provide t!ese services in t!e most timely manner and wit! an ongoing compre!ensive quality control program to provide :,,. customer satis"action. !e company;s principal o""icers see eac! contract as an agreement not #etween a #usiness and its customers& #ut #etween partners t!at wis! to create a close and mutually #ene"icial long-term relations!ip. !is will !elp to provide greater long-term pro"its t!roug! re"errals and repeat #usiness.

1.3 Keys to Success

!e principal o""icers o" DIMENSION Painters !ave !ad many years o" experience in t!e contracting #usiness. !ey #elieve t!at most companies in t!is industry& w!ic! includes painting contractors& su""er "rom two ma$or pro#lems t!at DIMENSION Painters can improve upon and exploit. !e "irst pro#lem comes "rom sc!eduling o" $o#s. Many painting contractors "ind it di""icult to maintain esta#lis!ed sc!edules wit! t!eir customers t!at lead to a decrease in customer satis"action and retention. !is is caused #y poor management& less t!an relia#le employees& and delays in inventory procurement and distri#ution. !e second pro#lem is in retaining relia#le and motivated personnel. Many painting companies rely on temporary or transient employees t!at lead to !ig! turnover rates and decreased service quality. DIMENSION Painters will institute t!e "ollowing 'ey procedures( <reation o" a position o" inventory coordinator and !ave at least one expeditor assigned to eac! pro$ect. 7ave a dedicated pro$ect manager "or eac! pro$ect w!o can !andle quality control issues. Institute a program o" pro"it s!aring among all employees.

2.0 Company Summary

DIMENSION Painters is a start-up limited lia#ility company consisting o" t!ree principle o""icers wit! com#ined industry experience o" =, years. !e company was "ormed to ta'e advantage o" t!e perceived wea'ness and inadequacies o" ot!er regional companies in terms o" quality and customer satis"action. DIMENSION Painters will #e a partners!ip #etween Mr.6alpes! Pare'!& Mr.6us!al !a''ar& Mr. 4mit 8!adi. !e principles in t!e company will #e investing signi"icant amounts o" t!eir own capital into t!e company and will also #e see'ing a loan to cover start-up costs and "uture growt!. DIMENSION Painters will #e located in a rented suite in t!e %IM4 <omplex& Navi Mum#ai. !e "acilities will include a reception area& o""ices "or t!e principals& storage area "or inventory& and employee lounge. !e company plans to use its existing contacts and t!e com#ined customer #ase o" Mr.Pare'!&Mr. !a''ar 2 Mr. 8!adi s!ort term residential contracts. Its long-term pro"ita#ility will rely on "ocusing on commercial contracts t!at will #e o#tained t!roug! strategic alliances and a compre!ensive mar'eting program.
2.1 Company Ownership

DIMENSION Painters is a privately owned limited lia#ility partners!ip wit! eac! o" t!e principal o""icers !olding an equal s!are in t!e company.
2.2 Start up Summary

!e "ollowing ta#le and c!art s!ow t!e start-up costs "or DIMENSION Painters. Start-up

3equirements

Start-up Expenses 5egal Stationery etc. %roc!ures <onsultants Insurance 3ent Expensed equipment :E,,, :->,, ))>,, --*>, )*,,, :E,,,, ,

Expensed Equipment Ot!er otal Start-up Expenses

, , )+=*>,

Start-up 4ssets Needed <as! %alance on Starting Date Start-up Inventory Ot!er <urrent 4ssets otal <urrent 4ssets :E,0*>, -E)>, , :E=>,,,

5ong-term 4ssets otal 4ssets otal 3equirements

:E,,,, ),)>,,, )-:+*>,

?unding

Investment Filliam %arnum 4nt!ony %arnum Mic!ael 6ruger otal Investment 0*>,,, E-=*>, =+>&,,, ),,=*>,

<urrent 5ia#ilities 4ccounts Paya#le <urrent %orrowing Ot!er <urrent 5ia#ilities <urrent 5ia#ilities , -&:>&,,, , -:>&,,,

5ong-term 5ia#ilities otal 5ia#ilities

, -:>&,,,

5oss at Start-up otal <apital otal <apital and 5ia#ilities

2.3 Company !ocations an" #aci$ities

@)+=*>,A :*:,,,, ),)>,,,

DIMENSION Painters will #e located in a rented suite in t!e %IM4 <OMP5EG& ) ND ?loor& 6alam#oli&Navi Mum#ai& opposite to 7industan Steel Bard. !e "acilities will include a reception area& o""ices "or t!e principals& storage area "or inventory& a painting #oot!& tool area and employee lounge.

3.0 Services

DIMENSION Painters o""ers compre!ensive interior and exterior painting services "or #ot! t!e residential and commercial mar'ets.

3.1 Service %escription

DIMENSION Painters services include( ?ull prep wor'. Dry wall contouring. ?ine detailing. Small carpentry wor'. Specialty wall coatings. 3e"inis!ings. ?alse ceilings. Pressure was!ing/roo" cleaning.

Eac! pro$ect is customiCed to t!e wants and needs o" t!e client. Prices are determined #y t!e scope o" t!e pro$ect& materials needed& wear and tear on equipment and required pro"it margin.
3.2 Competitive Comparison

!e contracting and painting mar'et is very competitive. !e #arriers to entry and exit in t!is mar'et are very low ma'ing t!is an industry wit! a large num#er o" rival "irms wit! !ig! turnover rates. %uyers !ave a signi"icant amount o" power since t!ey !ave a large num#er o" companies to c!oose "rom. Moreover& services are undi""erentiated& w!ic! means t!at customer loyalty is usually low. Painting companies must compete on quality and timeliness o" service& customer relations& and price. DIMENSION Painters #elieves t!at it can improve on t!e quality and timeliness o" services in t!is industry #y instituting procedures t!at will avoid many o" t!e mista'es t!at ot!er "irms ma'e. !is includes delayed sc!edules and !ig! employee turnover w!ic! leads to lower service quality. !e company will #e equally competitive in price and will maintain close ties wit! its clients t!roug!out t!e entire pro$ect since eac! pro$ect is a customiCed $o#. !roug! t!ese steps& DIMENSION Painters will #e a#le to #uild up a reputation o" #etter quality service at competitive prices t!an its competitors.
&.0 Mar'et (na$ysis Summary

DIMENSION Painters will "ocus on two mar'ets wit!in t!e industry& t!e residential segment @including apartment #uildingsA and t!e commercial segment @including #uildings used "or pro"essional purposesA. !e commercial mar'et requires t!e s!ortest amount o" time to completion o" pro$ects and usually t!e least amount o" customiCation. Since our pro$ects impinge upon a #usiness; pro"ita#ility& it is a#solutely crucial "or our pro$ect "oremen to maintain sc!edule and 'eep t!e sta'e!olders apprised o" t!e pro$ect;s progress. 4lt!oug! t!e a#ove is also true "or t!e residental owner& time is not as critical& quality and meeting t!e needs/wants o" t!e client come "irst in t!e residential segment. !e client is o"ten willing to wait a little longer to !ave t!e pro$ect done to !is/!er speci"ications. !e pro$ect "oremen must #e willing to #e more "lexi#le and willing to listen to t!e client. Over t!e past decade a num#er o" new trends !ave #een o#served in t!is industry. !is includes t!e tremendous growt! o" t!e economy& t!e !ig! tec!nology #oom& and t!e growt! o" su#stitute services suc! as 7ome Depot.
&.1 Mar'et Se)mentation

DIMENSION Painters will "ocus on two mar'ets wit!in t!e industry& t!e residential segment @including apartment #uildingsA and t!e commercial segment w!ic! includes #uildings used "or pro"essional purposes. !e company can !andle any siCe #uilding t!at needs its services. It is t!e goal o" t!e company to eventually !ave approximately one-t!ird o" all #usiness coming "rom t!e commercial segment& since t!is generates t!e greatest cas! "low. ?urt!ermore& t!is segment !as t!e lowest percentage o" varia#le costs. !e residential segment is considered to #e t!e company;s cas! cow. Even during t!e slow winter mont!s& t!e company can expect to !ave a small num#er o" residential contracts. 7owever& #y t!e end o" t!e t!ree year pro$ections& t!e company expects to #e serving t!e entire Navi Mum#ai 2 4nd!eri area.

Potential

8rowt!

),,)

),,-

),,=

),,>

),,0

<ustomers <ommercial %uildings 3esidential %uildings Ot!er otal =. -,,&,,, -:,&>,, -):&-0E --)&0:0 -==&)>E

-. ,. ).0E.

:&-*>&,,, , :&0*>&,,,

:&=,+&-*> , :&*:+&E*>

:&===&0,+ , :&*0>&+**

:&=E,&*)= , :&E:-&-=,

:&>:*&*=) , :&E0)&,,,

&.2 *ar)et Mar'et Se)ment Strate)y

Eac! o" t!e two mar'et segments !as di""ering needs and trends. !e "ollowing sections go into detail a#out !ow t!e company will "act t!em.
&.2.1 Mar'et *ren"s

Over t!e past decade a num#er o" new trends !ave #een o#served in t!is industry. !e tremendous growt! o" t!e economy !as "ueled t!e painting contractors industry as well& as people !ave progressively spent more and saved less. 7owever& t!e growt! o" "irms suc! as 7ome Depot& w!ic! encourages do-it-yoursel" painting and construction& !as lead to a serious decline in sales "or t!e residential segment. !e growt! o" t!is trend poses a signi"icant t!reat to t!e industry. DIMENSION Painters plans to increasingly "ocus on t!e commercial segment as t!e company grows in order to promote greater revenue and income.
&.3 Service +usiness (na$ysis

Most o" t!e industry analysis is contained in t!e <ompetitive <omparison section to give t!e reader t!e idea o" t!e competitive nature o" t!e industry& its opportunities and t!reats& and t!e company;s "lexi#ility in pricing. DIMENSION Painters exists in a purely competitive mar'et t!at "aces virtually unlimited competition and !ig! demand. !e a#ility o" t!e company to di""erentiate its services or enter into a nic!e mar'et is limited. !e company will engage in a low-cost leaders!ip strategy w!ile maintaining a suita#le level o" quality. In t!e painting contracting industry& t!ere are a limited num#er o" large "irms t!at compete "or t!e largest pro$ects& and a vast num#er o" smaller companies t!at "ig!t "or all t!e rest. Fit!in t!e largest company section& mar'et consolidation is always a t!reat.
&.3.1 Competition an" +uyin) ,atterns

!is industry is !ig!ly seasonal. !e #usiest times are during t!e summer mont!s w!ere it is easy "or a company to #ecome so engaged t!at it must turn down contracts. During t!e winter mont!s #usinesses must "ocus on mar'eting to get any contracts at all.
&.3.2 Main Competitors

!e main competitors "or DIMENSION Painters include 4sian Paints& Nerolac &%erger Paints etc. Eac! o" t!ese competitors is a#le to ac!ieve a !ig! degree o" pro"ita#ility t!roug! mar'eting& volume or !ig!-end contracts. !ey pose a signi"icant t!reat to DIMENSION Painters #ecause o" t!eir deep poc'ets and t!eir desire to acquire ot!er painting competitors. DIMENSION Painters will compete wit! t!ese rivals t!roug! t!e use o" greater mar'eting and #etter service.

-.0 Strate)y an" .mp$ementation Summary

10

4s stated #e"ore& t!e company will "ocus on greater service t!roug! #etter sc!eduling& pro$ect management& and greater alignment o" personnel #y providing pro"it s!aring. !e company is see'ing to use t!e most up-to-date communications and sc!eduling tec!nology #etween t!e pro$ect manager& "oreman& suppliers& and operations personnel to insure t!at deadlines are met. ?urt!ermore& t!e company will see' to create a relia#le pool o" individual painters to draw upon and eventually !ire all t!e painters "ull time wit! salary and ot!er compensation. !e company also plans to carry out an aggressive mar'eting plan starting in year t!ree. !is includes literature& 9& radio& #ill#oards and strategic alliances wit! ot!er large contractors t!at do not !ave t!eir own painting services.
-.1 Mar'etin) Strate)y

!e "ollowing sections detail t!e mar'eting strategy "or DIMENSION Painters.

-.1.1 ,ricin) Strate)y

!e company will price eac! pro$ect #ased on time& material& and a "lat >-:,. pro"it margin& depending on t!e segment. In t!e "irst year or two& depending on sales& t!e company will "ocus more on getting t!e contracts t!an on maintaining its pricing structure. !ere"ore& pro"it margin may #e a little low "or t!e "irst year or two.
-.1.2 ,romotion Strate)y

!e company will #e engaging in an aggressive mar'eting program t!at will include mailers& p!one solicitation& 9& radio& #ill#oards and ot!er plat"orms to generate service awareness& and value proposition. 7owever& as stated elsew!ere& t!e company;s immediate goal will #e to generate enoug! pro"it to pay "or suc! expenses. !e mar'eting plan will go into e""ect starting in year t!ree. Prior to t!is t!e company will use more modest mar'eting tools suc! as mailer& promotion o" word-o"-mout! mar'eting& and ads suc! as in t!e Bellow Pages.
-.2 Sa$es Strate)y

Sales "orecast is #ased on t!e existing client #ase o" t!e t!ree principal o""icers o" t!e company and t!eir a#ility to generate new sales #ased on t!eir contacts. %y #ringing toget!er Mr. Pare'! commercial painting experience and Mr. !a''ar residential experience& t!e company will #e a#le to generate sales in #ot! areas. ?urt!ermore& t!e company;s growing mar'eting program will generate t!e growt! t!e company needs to survive.

-.2.1 Sa$es #orecast

See Sales Strategy.

11

Sales ?orecast Sales <ommercial %uildings 3esidential %uildings otal Sales ),,* E,>>,,, *,E*>,, :>:=)>,, ),,E :=:E,E>, *==:E*> ):0))*)> ),,+ ),=+-:E, *E:-+E, )E-,*:0,

Direct <ost o" Sales <ommercial %uildings 3esidential %uildings Su#total Direct <ost o" Sales

),,* :E):0,, ):)0)>, -+=*E>,

),,E ->=>)-> )-E:=,, >+)00->

),,+ =>,E>,> )>,,=*, *,,E+*>

-.3 Strate)ic ($$iances

!e company is currently in negotiations to "orm a strategic alliance wit! an undisclosed large contractor company. !e agreement will #e t!at DIMENSION Painters will provide all t!e painting needs t!at t!e contractor;s clients require and vice versa. !e company will see' "urt!er alliances as situations develop. !e company will see' only t!ose contractors t!at !ave !ig! standards o" customer service and retention

/.0 Mana)ement Summary

12

Management consists o" t!ree individuals w!o !ave extensive experience in t!e painting contractors industry. !ese are 6alpes! Pare'!&6us!al !a''ar& 4mit 8!adi. . Eac! individual #rings a unique outloo' and s'ill set t!at will !elp drive sales and pro"its. !e president and !ead o" operations o" DIMENSION Painters will #e Mr.6alpes! Pare'!& t!e !ead o" inventory& expeditor and H24 will #e Mr.6us!al !a''ar and t!e person in c!arge o" sales and contracting will #e Mr.4mit 8!adi.
/.1 Or)ani0ationa$ Structure

!e company will "ollow a !ierarc!ical structure wit! Mr. 6alpes! Pare'! at t!e top as president and Mr. 4mit 8!adi and Mr. 6us!al !a''ar as department !eads. !e sales and contracting department along wit! inventory& expeditors& and H24 will consist o" only t!ose individuals until suc! time as growt! o" t!e company will require more people. !is is anticipated to occur in year t!ree to "ive.
/.2 Mana)ement *eam

Mr. 6alpes! Pare'! !as #een in t!e painting industry wor'ing wit! residential owners "or :> years. 7e initially started o"" wit! %2% contractors as a carpenter and painter and wor'ed wit! various companies "or t!e next ten years.. 7e t!en wor'ed "or Star Painters as a pro$ect manager and "inancial analyst. Mr. 4mit 8!adi started out wor'ing wit! painting and contracting companies w!ile attending college. 7e !as a %.S. in communications "rom Mum#ai 1niversity. 7e !as eig!t years experience in sales. Mr. 6us!al !a''ar !as wor'ed in t!e painting industry "or ), years as a contractor& pro$ect manager and owner o" <!emtrol Enterprises. 7e !as extensive experience in #idding and completing commercial painting pro$ects.

/.3 ,ersonne$ ,$an

!e "ollowing ta#le is t!e personnel plan "or DIMENSION Painters.

13

Personnel Plan Production Personnel Pro$ect ?orman I: Pro$ect ?oreman I) 3esidential Painter 3esidential Painter 3esidential Painter <ommercial Painter <ommercial Painter <ommercial Painter <ommercial Painter <ommercial Painter Ot!er Su#total ),,* :,)0,,, , >E,>,, >E,>,, >E,>,, --E0)> --E0)> --E0)> , , , -*E--*> ),,E :->,,,, , 0,*>,, 0,*>,, 0,*>,, 0,*>,, 0,*>,, 0,*>,, , , , =++>,,, ),,+ :->,,,, :->,,,, 0-,,,, 0-,,,, 0-,,,, 0-,,,, 0-,,,, 0-,,,, 0-,,,, 0-,,,, , **=,,,,

Sales and Mar'eting Personnel Mr.4mit 8!adi& <ontracting and Sales Ot!er Su#total :->,,,, , :->,,,, :->,,,, , :->,,,, :->,,,, , :->,,,,

8eneral and 4dministrative Personnel Mr.6alpes! Pare'!. Operations Mr.'us!al !a''ar& Expeditor and H24 Expeditor Expeditor Su#total :->,,,, :->,,,, :->,,,,

:->,,,, , , )*,,,,,

:->,,,, E:,,,, , ->:,,,,

:->,,,, E:,,,, E:,,,, =-),,,,

14

Ot!er Personnel Name or itle Ot!er Su#total , , , , , , , , ,

otal People otal Payroll

* *E---*>

:: +E>>,,,

:= :-=:,,,,

1.0 #inancia$ ,$an

!e "ollowing sections will outline t!e ?inancial Plan o" DIMENSION Painters.
1.1 .mportant (ssumptions

15

!e "ollowing ta#le s!ows t!e 8eneral 4ssumptions "or DIMENSION Painters.

8eneral 4ssumptions ),,* Plan Mont! <urrent Interest 3ate 5ong-term Interest 3ate ax 3ate Sales on <redit . Ot!er : :,.,,. :,.,,. -,.,,. >,.,,. , ),,E ) :,.,,. :,.,,. -,.,,. >,.,,. , ),,+ :,.,,. :,.,,. -,.,,. >,.,,. ,

1.3 +rea' even (na$ysis

!e %rea'-even 4nalysis gives t!e reader an idea o" !ow many pro$ects DIMENSION Painters must #id "or& prep& paint and complete eac! mont! to cover costs. %ecause DIMENSION Painters is providing a customiCed service wit! many pro$ects !aving unique requirements& t!e estimates o" revenue and cost are somew!at ar#itrary. ?urt!ermore& t!e company experiences a !ig! degree o" seasonality in its contracts w!ic! may result in a num#er o" unpro"ita#le mont!s during t!e late "all& winter and early spring periods. ?ixed costs are #ased on running costs estimated #y t!e o""icers o" t!e company and include payroll "or all employees. 9aria#le costs are #ased on a ),. estimate o" t!e average sales per unit. !e average revenue estimate is #ased on t!e consensus o" t!e principal o""icers w!o !ave !ad many years o" experience in t!e industry and on t!e realistic assumption o" t!e types o" contracts t!e company will get in t!e #eginning and t!e requirements needed to complete suc! pro$ects.
%rea'-even 4nalysis( Mont!ly 1nits %rea'-even Mont!ly 3evenue %rea'-even > E==+0>

4ssumptions( 4verage Per-1nit 3evenue 4verage Per-1nit 9aria#le <ost :E,,,, >=,,,

16

Estimated Mont!ly ?ixed <ost

1.& ,rojecte" ,ro2it an" !oss

>+:=E,

!e "ollowing ta#le and c!art s!ows t!e pro$ected Pro"it and 5oss "or DIMENSION Painters.
Pro ?orma Pro"it and 5oss ),,* Sales Direct <ost o" Sales Production Payroll Ot!er Production Expenses :>:=)>,, -+=*E>, -*E--*> , -----------otal <ost o" Sales 8ross Margin 8ross Margin . Operating Expenses( Sales and Mar'eting Expenses( Sales and Mar'eting Payroll 4dvertising/Promotion ravel Miscellaneous :->,,,, :0),,, :,E,,, :,E,,, -----------otal Sales and Mar'eting Expenses Sales and Mar'eting . 8eneral and 4dministrative Expenses( 8eneral and 4dministrative Payroll )*,,,,, ->:,,,, =-),,,, :*)E,,, ::.=:. :->,,,, ))>,,, :>*>,, :->,,, -----------:E0*>,, E.0=. :->,,,, =>,,,, :E,,,, :->,,, -----------)::>,,, *.=*. **-:))> *=::)*> =E.+=. ),,E ):0))*)> >+)00-> =++>,,, , -----------:,+):0-> :,*,::-> =+.=+. ),,+ )E-,*:0, *,,E+*> **=,,,, , -----------:=*=E+*> :->>E:E> =*.+,.

17

Sales and Mar'eting and Ot!er Expenses Depreciation 5eased Equipment 1tilities Insurance 3ent Payroll axes Ot!er 8eneral and 4dministrative Expenses

, >=,,, , E:,,, :0),,, :,E,,,, ::*=++> , ------------

, >=,,, , E:,,, :0),,, :,E,,,, :=*E)>, , -----------0-0>)>,

, >=,,, , E:,,, :0),,, :,E,,,, ),::>,, , -----------**,E>,,

otal 8eneral and 4dministrative Expenses 8eneral and 4dministrative . Ot!er Expenses( Ot!er Payroll %oo''eeper and acountant

>)>:++>

-=.0E.

)+.==.

)*.)-.

, :,E,,, ------------

, ::)>,, -----------::)>,, ,.>). -----------E-=>)>, )->>EE> -:>,, 0+*-), :0)*,0> *.>).

, :)-*>, -----------:)-*>, ,.==. -----------++=*)>, -0:,+-> -:>,, :,*-E-> )>,>0,, E.E>.

otal Ot!er Expenses Ot!er .

:,E,,, ,.*:. ------------

otal Operating Expenses Pro"it %e"ore Interest and axes Interest Expense axes Incurred Net Pro"it Net Pro"it/Sales
1.- ,rojecte" Cash #$ow

*,E*++> -)-)E, -:>,, E*>)> ),=)>> :.->.

18

!e "ollowing ta#le and c!art is t!e <as! ?low "or DIMENSION Painters.
Pro ?orma <as! ?low ),,* ),,E ),,+

<as! 3eceived <as! "rom Operations( <as! Sales <as! "rom 3eceiva#les Su#total <as! "rom Operations *>*:)>, *=)E*-> :=++++E> :,E::-E> :,*>,-0> ):>0:*>, :=:>->E, :=,+,0*, )E)==)>,

4dditional <as! 3eceived Sales ax& 94 & 7S /8S 3eceived New <urrent %orrowing New Ot!er 5ia#ilities @interest-"reeA New 5ong-term 5ia#ilities Sales o" Ot!er <urrent 4ssets Sales o" 5ong-term 4ssets New Investment 3eceived Su#total <as! 3eceived , , , , , , , :=++++E> , , , , , , , ):>0:*>, , , , , , , , )E)==)>,

Expenditures Expenditures "rom Operations( <as! Spending Payment o" 4ccounts Paya#le

),,*

),,E

),,+

0)-),> :=>*+E0>

E)+>-, :E*E00+,

:,-=:,, )=*:0,*,

19

Su#total Spent on Operations

:>),-,)>

:+0:0)),

)>*>,:*,

4dditional <as! Spent Sales ax& 94 & 7S /8S Paid Out Principal 3epayment o" <urrent %orrowing Ot!er 5ia#ilities Principal 3epayment 5ong-term 5ia#ilities Principal 3epayment Purc!ase Ot!er <urrent 4ssets Purc!ase 5ong-term 4ssets Dividends Su#total <as! Spent , , ,

, , :>),-,)>

, , :+0:0)),

, , )>*>,:*,

Net <as! ?low <as! %alance

@),-,=,A :0,-*:,

:+=>>-, ->=+)=,

)=+=,E, 0,=--),

1./ ,rojecte" +a$ance Sheet

!e "ollowing ta#le presents t!e %alance S!eet "or %arnum Painters.

20

Pro ?orma %alance S!eet

4ssets <urrent 4ssets <as! 4ccounts 3eceiva#le Inventory Ot!er <urrent 4ssets otal <urrent 4ssets 5ong-term 4ssets 5ong-term 4ssets 4ccumulated Depreciation otal 5ong-term 4ssets otal 4ssets :E,,,, >=,,, :)0,,, ))00=)> :E,,,, :,E,,, *),,, -+,>**> :E,,,, :0),,, :E,,, 0=)-0:> ),,* :0,-*:, :=)>:> -+=),, , ):=,=)> ),,E ->=+)=, ),-=+, E:,=> , -E00:*> ),,+ 0,=--), )00=,, +>E>, , 0=,>0:>

5ia#ilities and <apital <urrent 5ia#ilities 4ccounts Paya#le <urrent %orrowing Ot!er <urrent 5ia#ilities Su#total <urrent 5ia#ilities ),,* -*:*, -:>,,, , ->):*, ),,E =+>,, -:>,,, , -0=>,, ),,+ 0:0+> -:>,,, , -*00+>

5ong-term 5ia#ilities otal 5ia#ilities

, ->):*,

J, -0=>,,

J, -*00+>

Paid-in <apital 3etained Earnings Earnings otal <apital otal 5ia#ilities and

),,=*>, @)+=*>,A ),=)>> :+:=)>> ))00=)>

),,=*>, @+,=+>A :0)*,0> ->=:)*> -+,>**>

),,=*>, :>-0>)> )>,>0,, 0,*-E*> 0=))*:>

21

<apital Net Fort! :+:=)>> ->=:)*> 0,=0E*>

22