Business Plan: By Muhammad Farooq

Executive Summary
Welcome to the future of event planning! Star Event Management, The Event Planning Specialists, brings to the community of Pakistan a new breath of air in the event planning market. By combining old fashioned values, going the extra mile, and using cutting edge event-planning software, Star Event Management will lead the market, providing the same quality results, every time. Star Event Management is an equal opportunity business making its expertise and its products available to help its customers plan their own events. Party Packs (complete kits for their event), make hosting a party a snap, right down to the refreshments. The event planning software brings interactive event planning as close as their personal computer. Through these and other affordable products and services, Star Event Management aims to be the number one resource for any event.

Table of contents
Introduction ......................................................................................................................................................5 Mission.........................................................................................................................................................5 Company.......................................................................................................................................................6 Company Ownership....................................................................................................................................6 Start-up Summary.........................................................................................................................................6 Company Location And Facilities..............................................................................................................10 Product and Services...................................................................................................................................11 1. Party Pack...........................................................................................................................................11 2. Step-by-Step Guides ..........................................................................................................................11 3. Event Planning Software....................................................................................................................12 4. Resources Manual...............................................................................................................................12 Competitive Comparison:...........................................................................................................................12 Market Analysis summary ........................................................................................................................13 Market segmentation..................................................................................................................................13 3. Age Breakdowns.................................................................................................................................14 Target Market segment Strategy.................................................................................................................15 Service Business Analysis..........................................................................................................................16 Hotels and Conference Centers..............................................................................................................16 2. Other Event Planners..........................................................................................................................16 Strategy and Implementation Summary.................................................................................................17 Sales Strategy..............................................................................................................................................17 Sales Forecast.............................................................................................................................................18 Milestones...................................................................................................................................................19 Management Summary...............................................................................................................................21 Organizational Structure.............................................................................................................................21 Personnel Plan............................................................................................................................................22 Financial Plan.............................................................................................................................................22 Important Assumptions...............................................................................................................................22 Key Financial Indicators.............................................................................................................................23 Break-even Analysis...................................................................................................................................24 Projected Profit and Loss............................................................................................................................25 Projected Cash Flow...................................................................................................................................28 Projected Balance Sheet.............................................................................................................................31 Business Ratios...........................................................................................................................................33

Introduction
Mission
Star Event Management strives to batter guide and exceed customer expectation within limited funding. We create our clients trust, loyalty, and reliability by adding significant value with strong commitment to make every event unforgettable. Our main focus is;

1. 2.

Consistent, accurate fulfillment of the clients wishes. Competitive pricing for the quality of services offered.

Company
Star Event Management Inc. was founded in January 2010 and provides products and services for Social, Cultural, Political, Corporate, Government and non Government Special events. This company is associated with Event Management Industry and Located at Saleem Complex Jinah Road Quetta.

Founded originally on a part-time basis, Star Event Management is a small business designed to meet the needs of the ever changing social world. Pakistan, is the current home with plans to expand to branch offices within four years. Star Event Management' staff of two, with numerous contract vendors, plans events, writes event-planning products, and trains area students in the art of event planning. Star Event Management is invested in the community it resides in. Star Event Management is, in part, the answer to demands of the social world, on the working family, heavily-burdened office, out-of-town business, or special Star Event Management in need of special recognition. As a business, we understand the needs of public and private organizations. As parents and family members, we understand the needs of setting special time apart from other events in our lives. Star Event Management strives to accomplish these goals, in Pakistan and eventually other countries.

Company Ownership
Star Event Management is established as a sole proprietorship with the intention of selling the business when it is established. The sole proprietor will use his or her name as the guarantor of each service. Therefore, the sole proprietor must embody the vision and mission of Star Event Management.

Start-up Summary
Through careful planning on the part of the founders, the start-up costs for Star Event Management are minimal. It began as a home-based business with little overhead, and it continues to demand least outlay of funds as a service-based
6

business. The start-up cost investment funds were assets saved from prior earnings by the owners who did event planning on a part-time basis before establishing themselves as a business. It is the wish of the founders to remain a debt-free establishment. However, recognizing that in reality not all variables are controllable, outside financing is a viable option.

Start-up

Requirements

Start-up Expenses

Legal

$200

Stationery etc.

$300

Brochures

$185

Consultants

$200

Insurance

$145

Rent

$150

Expensed Equipment

$1,985

Other

$200

Total Start-up Expenses

$3,365

Start-up Assets

Cash Required

$2,300

Start-up Inventory

$0

Other Current Assets

$0

Long-term Assets

$0

Total Assets

$2,300

Total Requirements

$5,665

Start-up Funding

Start-up Expenses to Fund

$3,365

Start-up Assets to Fund

$2,300

Total Funding Required

$5,665

Assets

Non-cash Assets from Start-up

$0

Cash Requirements from Start-up

$2,300

Additional Cash Raised

$0

Cash Balance on Starting Date

$2,300

Total Assets

$2,300

Liabilities and Capital

Liabilities

Current Borrowing

$2,000

Long-term Liabilities

$0

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$2,000

Capital

Planned Investment

Alicia Nollan

$3,400

Other

$265

Additional Investment Requirement

$0

Total Planned Investment

$3,665

Loss at Start-up (Start-up Expenses)

($3,365)

Total Capital

$300

Total Capital and Liabilities

$2,300

Total Funding

$5,665

Company Location And Facilities

Star Event Management is located inside the city limits of, Quetta, Pakistan, . It is a home-based business. Most meetings with clients are conducted in social settings, such as restaurants, coffee houses, the client's

10

home, facilities wishing to be used for the event, or over the phone. Although the demand has not yet reached its peak, Star Event Management will eventually move from its home base into a small office complex, also within the city limits of Quetta, Pakistan, . When the company has reached its finished point, Star Event Management will have branch offices in Quetta, Major cities of Pakistan and abroad. The company will maintain a high degree of professionalism. All offices are equipped with the latest in business technology, such as telephone systems, computers, fax machines, email, duplicators, printers, and software. Each location will have a secure storage area for supplies and equipment used in events, such as walkie-talkies, cellular phones, portable fax machines, laptops and other equipments.

Product and Services

Although Star Event Management is primarily a service business, we also offer products to aid our customers in planning the event. The following products are tools used inside our operation for the best possible results

1. Party Pack
The Party Pack is a complete kit for any party. It includes decorations, lighting effects guide, disposable theme cameras, cutlery, plates, napkins, cups, punch mix (or recipe), snack supplies (or recipe), tablecloths, theme music (where applicable), invitations, thank-you cards, and a step-by-step guide to planning, putting together, and hosting the event.

2. Step-by-Step Guides
These booklets include a calendar to map out the event, a step-by-step guide on what is needed for and how to put together a successful, worryfree event, resource information, popular refreshments with recipes, games and tips to put their event in the record books. The events available include birthdays for all ages, meetings, retreats, parties, vacations, and special Star Event Management celebrations such as graduations, holidays, showers, weddings, and receptions.

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3. Event Planning Software

This cutting-edge tool will allow the client all the resources and visual aids for their event planning. They will be able to visualize the decoration themes, listen to theme music, design invitations, thank-you cards, and RSVP cards, use the interactive planning calendar, and much more. This software will bring the event into the millennium with cutting edge technology that is designed to save time and money.

4. Resources Manual
This valuable guide acts as a review for all the resources located in the surrounding area. A ranking is given to the various services, such as caterers, decorators, disc jockeys, bands, and facilities. This manual gives the client the freedom of making a choice based on experience Free Event Planners Training for High School and College Students. As a member of the Pakistan community, it is our mission to support our community. Ten hours each month will be devoted to training area students in event planning. This will aid them in planning proms, graduation parties, river clean-ups, homecoming, and other important events. This is a priority of Star Event Management. It will not be cut back as the business grows. Star Event Management provides event planning in a wide range of applications. We guarantee satisfaction in the areas of appearance, performance, and taste. The following is a sampling of the types of events we plan every year. 1. 2. 3. 4. 5. Meetings, Trainings, and Retreats Conferences and Workshops Birthdays, Anniversaries, Graduations and Holidays Weddings, Receptions, and Showers Company picnics, banquets, and award ceremonies.

Competitive Comparison:

12

Star Event Management, although young, draws from the age-old tradition of going above and beyond what is expected, every time. Our systems for event planning have been drawn up, evaluated, practiced, worked, and reworked to ensure the maximum efficiency while minimizing the possibility of error. We employ local vendors who have the same desire to be the best at what they do, while providing un-match able services. Thus, we give back to the community by providing jobs outside of our organization. We encourage new and upcoming small businesses who provide a service within our need base to step up to the challenge of being the best through their contract with Star Event Management. Our products will serve the function of aiding those that cannot afford the cost of an event planner. We wish to make our event planning tips available to those who need a helping hand. Star Event Management is a member of the community. Through event planning, Star Event Management gets the opportunity to laugh when the community laughs and cry when the community cries, to rejoice when the community rejoices and to help put the pieces back together when things change or begin to fall apart. We care about the things that have meaning in the lives of our neighbors.

Market Analysis summary

The following sections describe the market segmentation, strategies, and industry analysis

Market segmentation
The breakdown of the market for event planning, falls in a wide, very diverse grouping. Individuals as well as organizations demand the services we provide. In order to provide the greatest depth of information, the market segments have been broken down into private and public organizations, and age groups 1. Private Organizations and Businesses Private organizations make up the single largest portion of Star Event Management' client base. Private organizations such as businesses, corporations, and political parties host the most events on the largest scales, therefore, these events generate larger revenues per event. The majority of larger scale holiday functions will fall under this segment.

2. Public Organizations
Government agencies host many events every year. Star Event Management hopes to alleviate the pressure of event planning for public employees. The second single largest segment, the public sector, can save money and give back to its community at the same time. These events are moderate in scale with middle to low revenues generated.

13

Emphasis is placed on the visibility of the event for public viewing. The majority of organizational family functions will fall under this segment

3. Age Breakdowns
Under 24: Persons under the age of twenty-four (24) using an event planner are rare at best. We hope to tap the early college graduates who have begun their professional careers but have not yet started their families. These events will focus mainly on themes with moderate to high energy appeal. The revenues generated will range from moderate to high, depending on the event. The majority of weddings will fall into this segment. Ages 25-55: The persons that fall into this age group are employed, middle to uppermiddle class families. The reason they choose event planners is they are too busy to do it themselves. Therefore, Star Event Management will be on hand for questions, contact will be moderate in length but occur regularly so as not to disturb the daily life of the families. These events will generate moderate revenues, with a few generating low revenues. The majority of special Star Event Management planning will occur in this market segment. Ages 56 and above: Persons over the age of 55 have reached the turning point of life. Many are retiring, others are celebrating anniversaries of significant years, and still others are seeing that their children's special events are taken care of. These events will generate moderate to high revenues depending upon the income level of the family (direct correlation to social status). Most holiday parties, and other special Star Event Management, such as wedding receptions and reunions, will occur in this market segment

4. Other
This segment has no direct information to compile for a description. It consists of any event planned that does not fit into one of the above categories.

14

Market Analysis

Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers

Growth

CAGR

Under 24

0%

18

18

20

21

22

5.14%

Age 25 to 55

0%

33

33

44

51

59

15.63%

Age 56 and over

0%

31

31

37

40

44

9.15%

Private Organizations

0%

40

40

102

163

261

59.83%

Public Organizations

0%

62

62

105

137

178

30.17%

Other

0%

15.83%

Total

31.95%

189

189

315

420

573

31.95%

Target Market segment Strategy

15

Our target markets are middle to upper-middle class families, couples, individuals, or private and public organizations. We chose these groups because they are most able to afford event planners, and have the least amount of time to spare for event planning in general. Families demand attention, employees are overburdened, and overwhelming detail needed to plan large events are too large a constraint to place on people not trained in the area of event planning. The fast pace of the world we live in leaves little time for extra things we would like to do, like plan events, parties, and social get-togethers. Star Event Management fills the need by being available to take on the burden of planning so that people can spend time on more important things, like family and friends. The demand for this service can only increase considering the rise in incomes, population, and need for interpersonal relations in the workplace.

Service Business Analysis

Star Event Management is in a unique position of competition. We compete against hotels with conference facilities, conference centers, other event planners both on the large and small scale, persons within an organization who are assigned the task of organizing an event, and people who wish to organize their own events without the benefit of assistance. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in quality and price.

Hotels and Conference Centers

Strengths: On-site facilities, equipment, and support staff. Ability to transport and house persons for overnight stays. Able to internalize costs of transportation and equipment. Weakness: Often very expensive, impersonal, rely on unskilled labor for support staff. The error rate is high due to high volume and traffic from other events happening at the same time

2. Other Event Planners

Strengths: Have been in the market longer, have established a reputation and client base. Weakness: Reputation precedes them, no systems-based businesses designed to produce consistent results; focus on smaller events, specialized events are main focused rather

16

than all events; do not have the supporting products to market with, or instead of, event planning services 3. Employees or Persons wishing to do it themselves Strengths: Internalized cost of planning the event; able to add tiny personalized touches that have meaning within the group or family. Weakness: Consumes time that could be spent on other things; don't have access to the best prices, services, and other needed resources available.

Strategy and Implementation Summary

Marketing and Competition We have discussed our client base as being predominately middle to upper-middle class individuals, couples or families, public and private organizations. We must then look at the needs of these markets and cater to them. We promise the same great results, every time. When marketing to individuals, the idea of releasing them from the task, freeing their time for family and friends, and the promise of a worry-free event are the buzz words and concepts. Our marketing is predominantly by word of mouth or visual connection to large events these individuals have participated in or worked at. When marketing to public or private organizations, the idea of greater efficiency for the money and a professional event without error would be the key concept. Groups, especially large ones, do not wish to deal with problems that arise due to oversight on their part. If the guarantee of worry-free, error-free events is available at a cost benefit to them, there really appears to be no better choice.

Sales Strategy
Star Event Management deals with a diverse market of clients. Within each market segment, closing of sales will differ. Each approach is described as follows. 1. Private and Public Organizations Sales will be concluded one to two days after the end of the event. A follow-up phone call will be placed informing the client of the total cost, number of attendees, and information about the billing packet that will arrive at their offices. Feedback forms will be included in these packets to ensure the client is being

17

served as they deem appropriate. Form letter thank-yous will be sent following each event. 2. Individuals Sales will be concluded with a follow-up phone call one to two days after the event. The phone call will explain the total cost of the event, number of attendees, and information concerning the billing. Individual parties of any age group are placed on a billing cycle. Invoices will be sent out the 25th of the month and will be due the 10th of the following month. Feedback forms will be included in these packets to ensure the client is being served as they deem appropriate. Thank-you cards will follow each individual event.

Sales Forecast
By beginning on a smaller scale, Star Event Management has the foresight to grow at a rapid pace to keep up with demand. We wish to maintain a steady rate of sales growth; however, we understand that sales of products and services will vary in different months. As noted in the graph and chart, rapid increases during the holiday season will boost sales, then allow that growth to level off at a steady rate

Sales Forecast

Year 1

Year 2

Year 3

18

Sales

Private

$206,170

$276,099

$299,002

Public

$113,185

$178,490

$193,000

Other

$33,794

$40,081

$62,777

Total Sales

$353,149

$494,670

$554,779

Direct Cost of Sales

Year 1

Year 2

Year 3

Private

$28,864

$38,654

$41,860

Public

$11,319

$17,849

$19,300

Other

$1,690

$2,004

$3,139

Subtotal Direct Cost of Sales

$41,872

$58,507

$64,299

Milestones
The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

19

Milestones

Milestone

Start Date

End Date

Budget

Manager

Department

Sample Milestones

1/4/2008

1/4/2008

$0

ABC

Department

Finish Business Plan

5/7/2009

6/6/2009

$100

Dude LeGrande Fromage

Acquire Financing

5/17/2009

7/6/2009

$200

Dudette

Legumers

Ah HA! Event

5/27/2009

6/1/2009

$60

Marianne

Bosses

Oooooh Noooooo! Event

6/26/2009

7/1/2009

$250

Marionette

Chvre deBlme

Grande Opening

7/6/2009

7/11/2009

$500

Gloworm

Nobs

Marketing Program Starts

6/6/2009

7/1/2009

$1,000

Glower

Marketeers

Plan vs. Actual Review

11/1/2009

11/8/2009

$0

Galore

Alles

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First Break-even Month

3/5/2010

4/4/2010

$0

Bouys

Salers

Hire Employees

2/1/2010

3/3/2010

$150

Gulls

HRM

Upgrade Business Plan Pro

4/22/2010

4/24/2010

$100

Brass

Bossies

Totals

$2,360

Management Summary
Information and expense details are presented in subtopics Organizational Structure and Personnel Plan.

Organizational Structure
The management team within Star Event Management will be small in the beginning. The primary employee is the founder, who plans events, then contracts with caterers, decorators, disc jockeys, and bands to fill out the event. A contract labor site manager will be on hand to work the events as a liaison and vendor coordinator. Thus, there are two main employees with various levels of vendors. When Star Event Management reaches its expansion goals, each office will have one to two event planners, an office assistant, two to three site managers for the events, and a product and marketing specialist. This team will function as one with constant communication through weekly staff meetings, email, and message boards. All jobs are interrelated. The performance of one affects the performance of the others; therefore, each team member expects nothing but the best from each other.

As it functions currently, we see no gaps in the management of this organization. Should Star Event Management grow beyond its estimated size, more positions in specialized areas will need to be added as well as additional site support and office assistance. To fill these positions, Star Event Management is looking for energetic, teachable, detailoriented persons who want the potential to grow and improve their skills within the organization. Star Event Management wants to be the best; therefore, they will hire those who want to succeed.

21

Personnel Plan
The following table shows the estimated personnel needs for Star Event Management.

Personnel Plan

Year 1

Year 2

Year 3

Event Specialist

$36,000

$40,000

$42,000

Site Manager

$11,097

$13,750

$14,560

Other

$8,947

$9,560

$10,000

Total People

Total Payroll

$56,044

$63,310

$66,560

Financial Plan
Service-based businesses require little funds to start-up, and as they grow and expand, less funds to maintain. The charts and graphs that follow will show that investment up front allows Star Event Management to function debt-free with little overhead. This gives Star Event Management a quicker break-even point and increased profit margins from the start. As Star Event Management grows, the debt-free philosophy will be maintained until it is impossible to function during growth periods without financial assistance.

Important Assumptions

22

Tax rates are noted for information. We carry no loan burden that would be effected by these rates. What hits Star Event Management the hardest (but not nearly are bad as other service businesses), is the tax rate of 24%, which is nearly one quarter of the total sales. As Star Event Management continues to grow, these numbers will be reference rather than influence.
General Assumptions

Year 1

Year 2

Year 3

Plan Month

Current Interest Rate

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

Tax Rate

24.00%

24.00%

24.00%

Other

Key Financial Indicators

The break-even point for Star Event Management is based on the assumption that we will produce 22 events per month and average approximately $521 per event. In the current situation, we average more than this assumption for our public and private organization events. These currently make up 18 of the 22 average events hosted per month.

23

Break-even Analysis
The break-even point is based on the assumption that we will produce 22 events per month and average approximately $521 per event. In the current situation, we average more than this assumption for our public and private organization events. These currently make up 18 of the 22 average events hosted per month.

The break-even point will appear more rapidly for Star Event Management than for other types of home-based businesses. Start-up costs are limited to minimal equipment, there is little or no staff to pay in the beginning, and contracted companies will handle any additional equipment required for the planned events.

24

Break-even Analysis

Monthly Revenue Break-even

$19,313

Assumptions:

Average Percent Variable Cost

12%

Estimated Monthly Fixed Cost

$17,023

Projected Profit and Loss

25

Leading the industry in event planning requires the use of the resources available at the lowest cost. As noted in the table, we spend less money on overhead than another event planners with an outside office or office space in their own facility. This savings allows us to market in creative ways and spend funds on expansion into other areas when the time is right.

Pro Forma Profit and Loss

26

Year 1

Year 2

Year 3

Sales

$353,149

$494,670

$554,779

Direct Cost of Sales

$41,872

$58,507

$64,299

Other Costs of Sales

$196

$203

$221

Total Cost of Sales

$42,068

$58,710

$64,520

Gross Margin

$311,081

$435,960

$490,259

Gross Margin %

88.09%

88.13%

88.37%

Expenses

Payroll

$56,044

$63,310

$66,560

Sales & Marketing & Other Expenses

$146,013

$68,400

$73,400

Depreciation

$0

$0

$0

Leased Equipment

$0

$0

$0

Utilities

$516

$750

$800

Insurance

$264

$750

$1,000

Rent

$1,440

$1,800

$1,800

Payroll Taxes

$0

$0

$0

27

Other

$0

$0

$0

Total Operating Expenses

$204,277

$135,010

$143,560

Profit Before Interest and Taxes

$106,804

$300,950

$346,699

EBITDA

$106,804

$300,950

$346,699

Interest Expense

$406

$279

$362

Taxes Incurred

$25,535

$72,161

$83,121

Net Profit

$80,862

$228,510

$263,216

Net Profit/Sales

22.90%

46.19%

47.45%

Projected Cash Flow

Our cash situation is great. Although we begin with little extra cash, our increased growth allows us to make up for lost time. Our cash balance is always above the mark with the cash flow not too far behind. We have no negatives in our cash analysis

28

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received

Cash from Operations

Cash Sales

$141,260

$197,868

$221,912

Cash from Receivables

$178,271

$283,330

$327,145

Subtotal Cash from Operations

$319,531

$481,198

$549,057

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$4,000

$1,080

$1,080

29

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

$0

$0

$0

Subtotal Cash Received

$323,531

$482,278

$550,137

Expenditures

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

$56,044

$63,310

$66,560

Bill Payments

$199,964

$209,268

$223,979

Subtotal Spent on Operations

$256,008

$272,578

$290,539

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$3,500

$500

$0

Other Liabilities Principal Repayment

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

30

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

Subtotal Cash Spent

$259,508

$273,078

$290,539

Net Cash Flow

$64,023

$209,200

$259,598

Cash Balance

$66,323

$275,523

$535,121

Projected Balance Sheet

Star Event Management is set up for success. According to the numbers, we start out fair and end up amazing. By FY2000, we will be worth over $125,000 with a profit margin of over 30%. We are operating with little to zero debt, boosting the net worth even higher. Our only weakness is the products to be released in FY2000 have not been accounted for as an investment of funds. This will effect the cash flow in a moderate way, and is undetermined how it will effect the profit ratio of the business.

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets

Current Assets

Cash

$66,323

$275,523

$535,121

Accounts Receivable

$33,618

$47,090

$52,812

Inventory

$4,991

$6,975

$7,665

31

Other Current Assets

$0

$0

$0

Total Current Assets

$104,933

$329,588

$595,598

Long-term Assets

Long-term Assets

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

Total Long-term Assets

$0

$0

$0

Total Assets

$104,933

$329,588

$595,598

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities

Accounts Payable

$21,270

$16,836

$18,550

Current Borrowing

$2,500

$3,080

$4,160

Other Current Liabilities

$0

$0

$0

Subtotal Current Liabilities

$23,770

$19,916

$22,710

Long-term Liabilities

$0

$0

$0

32

Total Liabilities

$23,770

$19,916

$22,710

Paid-in Capital

$3,665

$3,665

$3,665

Retained Earnings

($3,365)

$77,497

$306,007

Earnings

$80,862

$228,510

$263,216

Total Capital

$81,162

$309,672

$572,888

Total Liabilities and Capital

$104,933

$329,588

$595,598

Net Worth

$81,162

$309,672

$572,888

Business Ratios

Ratio Analysis

Year 1

Year 2

Year 3

Industry Profile

Sales Growth

0.00%

40.07%

12.15%

11.37%

Percent of Total Assets

Accounts Receivable

32.04%

14.29%

8.87%

10.40%

Inventory

4.76%

2.12%

1.29%

3.83%

33

Other Current Assets

0.00%

0.00%

0.00%

48.41%

Total Current Assets

100.00%

100.00%

100.00%

62.64%

Long-term Assets

0.00%

0.00%

0.00%

37.36%

Total Assets

100.00%

100.00%

100.00%

100.00%

Current Liabilities

22.65%

6.04%

3.81%

23.10%

Long-term Liabilities

0.00%

0.00%

0.00%

24.97%

Total Liabilities

22.65%

6.04%

3.81%

48.07%

Net Worth

77.35%

93.96%

96.19%

51.93%

Percent of Sales

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

88.09%

88.13%

88.37%

100.00%

Selling, General & Administrative Expenses

69.22%

35.37%

34.65%

65.24%

Advertising Expenses

0.51%

0.44%

0.47%

2.43%

Profit Before Interest and Taxes

30.24%

60.84%

62.49%

4.31%

Main Ratios

Current

4.41

16.55

26.23

1.83

34

Quick

4.20

16.20

25.89

1.31

Total Debt to Total Assets

22.65%

6.04%

3.81%

58.52%

Pre-tax Return on Net Worth

131.09%

97.09%

60.45%

7.33%

Pre-tax Return on Assets

101.40%

91.23%

58.15%

17.66%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

22.90%

46.19%

47.45%

n.a

Return on Equity

99.63%

73.79%

45.95%

n.a

Activity Ratios

Accounts Receivable Turnover

6.30

6.30

6.30

n.a

Collection Days

43

50

55

n.a

Inventory Turnover

10.91

9.78

8.78

n.a

Accounts Payable Turnover

10.40

12.17

12.17

n.a

Payment Days

27

34

29

n.a

Total Asset Turnover

3.37

1.50

0.93

n.a

Debt Ratios

Debt to Net Worth

0.29

0.06

0.04

n.a

35

Current Liab. to Liab.

1.00

1.00

1.00

n.a

Liquidity Ratios

Net Working Capital

$81,162

$309,672

$572,888

n.a

Interest Coverage

262.90

1,078.67

957.73

n.a

Additional Ratios

Assets to Sales

0.30

0.67

1.07

n.a

Current Debt/Total Assets

23%

6%

4%

n.a

Acid Test

2.79

13.83

23.56

n.a

Sales/Net Worth

4.35

1.60

0.97

n.a

Dividend Payout

0.00

0.00

0.00

n.a

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

Private

0%

$12,860

$10,966

$11,435

$12,889

$13,001

$15,777

$15,998

$24,960

$26,522

$20,009

$19,650

$22,103

Public

0%

$3,852

$7,884

$7,200

$8,965

$8,566

$7,600

$9,705

$11,245

$11,780

$11,999

$12,300

$12,089

Other

0%

$800

$955

$900

$1,190

$2,450

$2,133

$2,100

$4,656

$4,500

$4,622

$4,800

$4,688

36

Total Sales

$17,512

$19,805

$19,535

$23,044

$24,017

$25,510

$27,803

$40,861

$42,802

$36,630

$36,750

$38,880

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

Private

$1,800

$1,535

$1,601

$1,804

$1,820

$2,209

$2,240

$3,494

$3,713

$2,801

$2,751

$3,094

Public

$385

$788

$720

$897

$857

$760

$971

$1,125

$1,178

$1,200

$1,230

$1,209

Other

$40

$48

$45

$60

$123

$107

$105

$233

$225

$231

$240

$234

Subtotal Direct Cost of Sales

$2,226

$2,371

$2,366

$2,760

$2,799

$3,075

$3,315

$4,852

$5,116

$4,232

$4,221

$4,538

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

Event Specialist

0%

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

Site Manager

0%

$735

$907

$735

$735

$735

$735

$1,245

$1,400

$1,245

$875

$875

$875

Other

0%

$586

$800

$586

$586

$586

$586

$844

$895

$844

$844

$895

$895

Total People

Total Payroll

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

Pro Forma Profit and Loss

37

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

$17,512

$19,805

$19,535

$23,044

$24,017

$25,510

$27,803

$40,861

$42,802

$36,630

$36,750 $38,880

Direct Cost of Sales

$2,226

$2,371

$2,366

$2,760

$2,799

$3,075

$3,315

$4,852

$5,116

$4,232

$4,221

$4,538

Other Costs of Sales

$15

$13

$15

$16

$16

$16

$19

$22

$22

$13

$15

$14

Total Cost of Sales

$2,241

$2,384

$2,381

$2,776

$2,815

$3,091

$3,334

$4,874

$5,138

$4,245

$4,236

$4,552

Gross Margin

$15,271

$17,421

$17,154

$20,268

$21,202

$22,419

$24,469

$35,987

$37,664

$32,385

$32,514 $34,328

Gross Margin %

87.21%

87.96%

87.81%

87.95%

88.28%

87.88%

88.01%

88.07%

88.00%

88.41%

88.47% 88.29%

Expenses

Payroll

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

Sales & Marketing & Other Expenses

$9,015

$10,748

$9,982

$10,260

$10,315

$10,415

$12,418

$18,015

$16,615

$13,290

$11,975 $12,965

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

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

Insurance

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

Rent

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

Payroll Taxes

12%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

38

Total Operating Expenses

$13,521

$15,640

$14,488

$14,766

$14,821

$14,921

$17,692

$23,495

$21,889

$18,194

$16,930 $17,920

Profit Before Interest and Taxes

$1,750

$1,781

$2,666

$5,502

$6,381

$7,498

$6,777

$12,492

$15,775

$14,191

$15,584 $16,408

EBITDA

$1,750

$1,781

$2,666

$5,502

$6,381

$7,498

$6,777

$12,492

$15,775

$14,191

$15,584 $16,408

Interest Expense

$17

$50

$47

$44

$41

$38

$35

$33

$30

$27

$24

$21

Taxes Incurred

$416

$415

$629

$1,310

$1,521

$1,790

$1,618

$2,990

$3,779

$3,399

$3,734

$3,933

Net Profit

$1,318

$1,315

$1,990

$4,148

$4,818

$5,669

$5,123

$9,469

$11,966

$10,765

$11,826 $12,454

Net Profit/Sales

7.52%

6.64%

10.19%

18.00%

20.06%

22.22%

18.43%

23.17%

27.96%

29.39%

32.18% 32.03%

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

$7,005

$7,922

$7,814

$9,218

$9,607

$10,204

$11,121

$16,344

$17,121

$14,652

$14,700

$15,552

Cash from Receivables

$0

$5,604

$11,241

$11,797

$12,844

$14,138

$14,888

$16,040

$20,860

$25,138

$23,706

$22,016

Subtotal Cash from Operations

$7,005

$13,526

$19,055

$21,014

$22,451

$24,342

$26,009

$32,384

$37,981

$39,790

$38,406

$37,568

Additional Cash Received

39

Sales Tax, VAT, HST/GST Received

0.00%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

$0

$4,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Other Liabilities (interestfree)

$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

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$7,005

$17,526

$19,055

$21,014

$22,451

$24,342

$26,009

$32,384

$37,981

$39,790

$38,406

$37,568

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

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

Bill Payments

$477

$14,309

$13,919

$13,277

$15,006

$14,951

$15,891

$18,185

$27,728

$25,842

$20,173

$20,204

Subtotal Spent on Operations

$4,798

$19,016

$18,240

$17,598

$19,327

$19,272

$20,980

$23,480

$32,817

$30,561

$24,943

$24,974

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

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

40

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

$4,798

$19,016

$18,590

$17,948

$19,677

$19,622

$21,330

$23,830

$33,167

$30,911

$25,293

$25,324

Net Cash Flow

$2,206

($1,490)

$465

$3,066

$2,773

$4,720

$4,679

$8,554

$4,814

$8,879

$13,113

$12,245

Cash Balance

$4,506

$3,016

$3,481

$6,547

$9,321

$14,041

$18,719

$27,273

$32,087

$40,966

$54,079

$66,323

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

Assets

Starting Balances

Current Assets

Cash

$2,300

$4,506

$3,016

$3,481

$6,547

$9,321

$14,041

$18,719

$27,273

$32,087

$40,966

$54,079

$66,323

Accounts Receivable

$0

$10,507

$16,786

$17,266

$19,296

$20,863

$22,031

$23,825

$32,301

$37,122

$33,963

$32,306

$33,618

Inventory

$0

$2,448

$2,609

$2,602

$3,037

$3,079

$3,383

$3,647

$5,337

$5,628

$4,655

$4,643

$4,991

Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Current Assets

$2,300

$17,462

$22,411

$23,350

$28,880

$33,262

$39,454

$46,191

$64,911

$74,837

$79,584

$91,028

$104,933

41

Long-term Assets

Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Assets

$2,300

$17,462

$22,411

$23,350

$28,880

$33,262

$39,454

$46,191

$64,911

$74,837

$79,584

$91,028

$104,933

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

$13,844

$13,478

$12,777

$14,509

$14,423

$15,296

$17,259

$26,860

$25,169

$19,502

$19,470

$21,270

Current Borrowing

$2,000

$2,000

$6,000

$5,650

$5,300

$4,950

$4,600

$4,250

$3,900

$3,550

$3,200

$2,850

$2,500

Other Current Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Current Liabilities

$2,000

$15,844

$19,478

$18,427

$19,809

$19,373

$19,896

$21,509

$30,760

$28,719

$22,702

$22,320

$23,770

Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Liabilities

$2,000

$15,844

$19,478

$18,427

$19,809

$19,373

$19,896

$21,509

$30,760

$28,719

$22,702

$22,320

$23,770

Paid-in Capital

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

$3,665

Retained Earnings

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

($3,365)

Earnings

$0

$1,318

$2,633

$4,623

$8,771

$13,589

$19,258

$24,381

$33,851

$45,817

$56,582

$68,408

$80,862

Total Capital

$300

$1,618

$2,933

$4,923

$9,071

$13,889

$19,558

$24,681

$34,151

$46,117

$56,882

$68,708

$81,162

Total Liabilities and Capital

$2,300

$17,462

$22,411

$23,350

$28,880

$33,262

$39,454

$46,191

$64,911

$74,837

$79,584

$91,028

$104,933

42

Net Worth

$300

$1,618

$2,933

$4,923

$9,071

$13,889

$19,558

$24,681

$34,151

$46,117

$56,882

$68,708

$81,162

43

44