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.................................................................................................................................6 4....................................................................................................................7 5.........................13 Chart: Gross Margin Yearly........................................................................13 7................................................................................................................................................3 Service Business Analysis.............15 Page 1 ...........................................................................................................................................................................................3 Keys to Success..................................................................................................2 Objectives................................3..........................................................4 3.......0 Financial Plan..............................................................................................................................................................7 5......................................................................................6 4.............................3 Company Locations and Facilities................0 Executive Summary..........................................................................................................................................................0 Company Summary......................................................................................2 ...........................8 6.................................1 2.......................2 Start-up Summary...................................1 Competition and Buying Patterns.........................................................................................................................0 Strategy and Implementation Summary............................................................10 7..............................................................................................................12 Chart: Gross Margin Monthly.................................................................................................................................1 2.......1 Mission...........4 4.........1 Break-even Analysis......................9 6...............................................10 Table: Break-even Analysis.................................................................................................................................................2 Target Market Segment Strategy.............6 4........................................2 Sales Strategy...........................................................................9 7.................................1 Personnel Plan...............................................................................................................................................0 Services...................................................................................................................................................................................................................................................................2..............6 5.............................................................................................1 Market Segmentation..........................................2 Table: Start-up............................................................................................................................................................................................0 Management Summary..........1 Competitive Edge...................................................................................................5 4..............................................................................................................5 Chart: Market Analysis (Pie)....................9 Table: Personnel...................................................................................2 2...........1 1................14 Table: Cash Flow..................................................................................................................................................................................................3 Projected Cash Flow............................................................................................................................................................................................1 Market Needs.......................................................................4 4..........................................................................................................................0 Market Analysis Summary...............................................................................................................................................................................................................................................7 Chart: Sales by Year........................2 Projected Profit and Loss.........14 Chart: Cash.............................................................................................................7 Table: Sales Forecast..............................................11 Table: Profit and Loss...........................................15 Table: General Assumptions......................................11 Chart: Profit Monthly..................................................................................................................................................4 2.....................................................1 1........1 1...9 7.............................................Table of Contents 1.....................2 Chart: Start-up.......................................................12 Chart: Profit Yearly................................................................................................................................................................................................................................10 Chart: Break-even Analysis...................................................................................................................................1 Company Ownership..............................4 Table: Market Analysis...................8 Chart: Sales Monthly..........................................

...............................................................................................................4 Table: Cash Flow.....................................................16 ...............................................................................................................2 ...............................................................................................................................................................................................................................................................................................................................................................................................................16 Table: Balance Sheet.......5 Table: Balance Sheet........................................................4 Projected Balance Sheet...........................................6 Page 2 ........................................................16 Table: Ratios.........................................................................................................................................................................................................................................1 ...................................................................................................................................................................3 ..........................................................................................................................................................................................................................2 Table: General Assumptions................................................................................................................................................................................................................................................17 Table: Sales Forecast.....................................Table of Contents ...................................................................................3 Table: Profit and Loss..15 7....................................................................................................................................................1 Table: Personnel.................................................................................................4 .........................................................................................

hair stylists. we can help. 3. receptions. as well as full-service referrals to florists. 1. we can help. we want every detail of their event to be both a pleasurable and a memorable experience. 2. hair stylists. 1. answers to etiquette questions. Our clients' wishes become our commands. holy union. Las Vegas or more traditional wedding or anniversary party. holy unions and anniversaries. entertainers. We listen to their needs and work with them to create the event of their dreams. Service our clients' needs promptly and efficiently. musicians. 1. Too many people become overly stressed and frustrated when planning these wonderful events. receptions. honeymoons. Our consultants are experienced and dedicated professionals with many years of event planning experience. etc.2 Objectives Whether this is our client's first wedding. holy unions and anniversaries. TLC is unique in that we give our clients our undivided attention.0 Executive Summary TLC Wedding Consultants is a full service company that provides complete consulting services for weddings. anniversary consultations. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are a fullservice bridal consulting group and our goal is to put the "fun" back into planning a wedding. Las Vegas or more traditional wedding. holy union or anniversary party. We are experienced and professional consultants and will use our expertise to help create memorable and stress free events for our customers. hair salons and bridal shops. Tropical.TLC Wedding Consultants 1. grooms and other family members. budget planning. Our clients' wishes become our commands. We listen to their needs and work with them to create the event of their dreams. a renewal of their vows or their anniversary. Our services include weddings. Our services include weddings. and anniversary consulting services to brides. So whether our client wants a Western. We are confident that this business venture will be a success and we estimate that our net income will increase modestly by the second year. So whether our client wants a Western. TLC is unique in that we give our clients our undivided attention.0 Company Summary TLC Wedding Consultants is a start-up company that provides wedding. entertainers. answers to etiquette questions. Maintain a professional image at all times. By doing this. musicians.1 Mission TLC Wedding Consultants is a full service company that provides complete consulting services for weddings. The result? We create events suited to the couple's unique style--a true expression of their relationship and individuality as a couple. 2. Tropical. honeymoons. Maintain an excellent working relationships with vendors such as florists. our clients can sit back and enjoy their event. Page 1 . Our consultants are experienced and dedicated professionals with many years of event planning experience.3 Keys to Success The keys to our success are as follows: 1. anniversary consultations. etc. as well as full-service referrals to florists. budget planning.

and related expenses). the owners will consider re-registering as a limited liability company or as a corporation. Darla and Micah Johnson are investing $4. will handle day-to-day operations of the plan and will work collaboratively to ensure that this business venture is a success.. direct mail. Darla and Micah Johnson.000 Total Requirements $8. whichever will better suite the future business needs. owned by its founders. Table: Start-up Start-up Requirements Start-up Expenses Legal Stationery etc.000 $0 $0 $5.TLC Wedding Consultants 2. advertising. The start-up costs are to be financed in equal portions by the owners' personal funds (i.1 Company Ownership This business will start out as a simple proprietorship.2 Start-up Summary The company founders. An additional $5.000 will be required in the bank account as an operating capital for the first two months of operation.000 Page 2 . 2. We estimate that our start-up costs will be $3. Darla and Micah Johnson. As the operation grows. Brochures Insurance Research and development Expensed equipment Other Total Start-up Expenses $200 $450 $450 $300 $200 $900 $500 $3.000 each).e.000 (including legal costs. logo design.000 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets $5.

000 $5.000) $5.000 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $0 $5.TLC Wedding Consultants Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $3.000 $5.000 $0 $8.000 $0 $5.000 Total Funding $8.000 Total Capital and Liabilities $5.000 $8.000 ($3.000 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities $0 $0 $0 $0 $0 Capital Planned Investment Darla Johnson Micah Johnson Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $4.000 Page 3 .000 $4.

4 million marriages took place in the United States. professional wedding consultants are a commodity. vendor confirmation.0 Market Analysis Summary Nearly $35 billion are spent every year on weddings and receptions. However. not a calamity.1 Market Segmentation Although the flash and excitement of impending nuptials can be intoxicating. supervision of both ceremony and reception setup and budget planning. we intend to expand our facilities into a well-equipped and operational office.000 people is still the highest rate among the industrialized countries.0 Services We are a full-service wedding consultant group and provide the following services: etiquette advice. discounted invitations and products. the current US marriage rate of nine marriages per 1. rehearsal attendance. by Year 5. therefore. Therefore. however.TLC Wedding Consultants Chart: Start-up 2. we primarily market our services to the people who need them most--brides and grooms. We pride ourselves on being professional and courteous at all times and we have packages to suit everyone's needs. it can also be overwhelming. According to the Encarta Encyclopedia. 4. event scheduling. This marriage rate is Page 4 . As previously stated. marriage is a billion dollar industry. we mostly advertise to brides. 2. and family members.3 Company Locations and Facilities Initially this will be a home-based business. 4. grooms. 3. Therefore. In 1997. TLC Wedding Consultants are full-service wedding consultants that offer a variety of services to our clients. just about everyone we meet is a potential client.

158 8.078 1.575 5.500 marriages are registered each year.654 5. Another customer segment is represented by the numerous family members and guests attending weddings. Table: Market Analysis Market Analysis Potential Customers Growth Brides & Grooms Family Members Other Total 5% 5% 5% 5.00% Chart: Market Analysis (Pie) Page 5 .000 7.050 7.01% 5. OR area. over 1.00% Year 1 Year 2 Year 3 Year 4 Year 5 1.250 1.500 5.216 9.103 8. In the Eugene. Besides the wedding arrangements. etiquette training.513 1.00% 5. which TLC Wedding Consultants believe to be their major client assignments.01% 5.875 1.824 6. and similar events.270 1.500 1. This segment requires event preparation services like gift ideas.000 orders in the Eugene. OR area where TLC Wedding Consultants plans to operate their business. This customer segment is estimated to have the annual volume of 1.TLC Wedding Consultants expected to remain at the same level in the near future.789 1. etc. etc.737 5. anniversaries.000 1. other events the company will provide services to include corporate retreats. which creates a sizable market potential for this line of business. etiquette tips.118 CAGR 5.684 1.

2 Target Market Segment Strategy TLC Wedding Consultants will offer its services mostly to the brides and grooms. hair stylists. by utilizing numerous supplier contacts that the company owners have established and economies of scale. catering. Unlike most of its competitors.3 Service Business Analysis The wedding services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services.2. Lafayette Wedding offers its clients entertaining. 4. plan and budget for the wedding ceremony as far as a year or more in advance. floral design and hair styling services. 4. lower prices are very often associated with poor service quality. brides and grooms and family members. Moreover. Page 6 . This will significantly reduce the customers' time and efforts preparing for such an important event as a wedding. TLC will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. TLC Wedding Consultants will offer its customers the ease of one-stop shopping. rehearsing and execution services. The following is the list of the major competitors with a brief description of their services: • • • Rent-An-Action offers ceremony preparation.1 Competition and Buying Patterns Competitive analysis conducted by the company owners has shown that there are 20 companies currently offering some sort of wedding planning services in the Eugene area.1 Market Needs The market needs for wedding planning services are strongly shaped by the customers' desire to have a perfectly planned and executed wedding ceremony. there are almost no companies that will provide the full range of services associated with the wedding planning and execution. By aggregating a complete range of wedding services under one roof. There are numerous florists. In fact. they often realize that they cannot make all the necessary preparations by themselves in a cost effective manner. Cross & Reeves provide flower and catering arrangements and wedding consulting services. as well as to the family members.3. the majority of the incumbent competitors offer only a limited line of services like catering. Strongly affected by the established social values. The company will position itself as an experienced provider of wedding planning services. However. TLC Wedding Consultants will be able to pass on to its customers sizable cost savings. flower arrangements or gifts. Although both major customer segments. 4. of these 25 competitors only three offered a range of services comparable with what TLC Wedding Consultants plan to offer to its customers.TLC Wedding Consultants 4. In fact. However. The market research has also shown that customers anticipate the complete wedding consulting services to be expensive and they budget accordingly. and caterers to choose from. such customers seek professional advice to ensure that all the important aspects of the wedding ceremony meet or exceed perceived expectations.

including The Register Guard.0 Strategy and Implementation Summary Our strategy is simple: we intend to provide our customers with a wide range of services custom tailored to their individual needs. Developing affiliate relationships with other service providers (florists. The Oregon Daily Emerald. we can help. whether they require a complete package.generating sales leads in the local community through customer referrals. Chart: Sales by Year Page 7 . Both owners have very strong communication skills that will help develop the 'buzz' about the high quality of the services offered by TLC Wedding Consultants. Word of mouth referrals . 5. 5. caterers) that would receive a percentage of sales to the referred customers. Placing advertisements in the local press.two inch by three inch ads describing the services will be placed in the local Yellow Pages.TLC Wedding Consultants 5. The company will leverage its owners' expertise in planning such events to competitively position itself as a premier provider of wedding services. Therefore. hair stylists.1 Competitive Edge By aggregating a complete range of wedding services under one roof. Eugene Weekly. TLC Wedding Consultants will offer its customers the ease of one-stop shopping. or simply consulting on a particular service.2 Sales Strategy The company's sales strategy will be based on the following elements: • • • • Advertising in the Yellow Pages .

056 $20.200 $25.196 $125.360 $114.796 Year 1 $0 $0 $0 $0 Year 2 $0 $0 $0 $0 Year 3 $0 $0 $0 $0 Sales Brides & Grooms Family Members Other Total Sales Direct Cost of Sales Row 1 Row 1 Other Subtotal Direct Cost of Sales Chart: Sales Monthly Page 8 .300 $65.544 $34.TLC Wedding Consultants Table: Sales Forecast Sales Forecast Year 1 Year 2 Year 3 $54.800 $15.360 $71.960 $18.300 $95.040 $30.

Micah has an Associates Degree in Fashion Design. Darla has received extensive training in wedding planning and her certification from the National Association of Wedding Consultants and Professional Wedding Planners.800 $0 0 Total Payroll $53. She has been a wedding consultant for five years and became interested in providing consultant services when she successfully planned her first five weddings for family and friends. They are knowledgeable about all areas of planning. Since then.800 7.0 Management Summary Our wedding consultants are Darla and Micah Johnson. she became interested in becoming a consultant when she successfully planned her first three weddings. both of whom will be working full time. Micah received her certification from the National Association of Wedding Consultants and has been a wedding planner for three years. As the personnel plan shows. Darla has a BS in Communications and a minor in Interior Decorating. Page 9 . Table: Personnel Personnel Plan Year 1 Year 2 Year 3 Owner Other Total People $53.100 $0 0 $76.0 Financial Plan The following subtopics represent the financial plan of TLC Wedding Consultants. Collaboratively they have planned and serviced over 150 weddings and receptions. as well as budgeting.1 Personnel Plan Initially.TLC Wedding Consultants 6. 6. we expect to hire an additional wedding consultant in the next year This person will work full time. Micah enjoys all aspects of planning traditional and nontraditional weddings.200 $0 0 $85. decorating.100 $76.200 $85. like Darla. and. but will not be included in the management decisions. TLC Wedding Consultants' personnel will include only the two owners.

Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even $4.804 Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 0% $4.TLC Wedding Consultants 7.1 Break-even Analysis The following table and chart summarize our break-even analysis.804 Chart: Break-even Analysis Page 10 .

360 $0 $0 $0 $125.200 $1.996 $0 $9.870 24.996 $37.650 $0 $9.00% $114.360 100.208 29.00% Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other $53.2 Projected Profit and Loss Our projected profit and loss is shown in the following table.290 $37.160 $37.00% $125.300 100.800 Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred $37.550 $0 $0 $0 $0 $0 $0 $0 $76.60% $27.650 $37.37% $28.800 $2.160 $0 $9.796 $0 $0 $0 $95.200 $87.657 Net Profit Net Profit/Sales $28.443 $37.53% Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Page 11 .650 $77.300 $0 $0 $0 $114.100 $4.000 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses $57.796 100.TLC Wedding Consultants 7.339 22.000 $0 $0 $0 $0 $0 $0 $0 $85. Table: Profit and Loss Pro Forma Profit and Loss Year 1 Year 2 Year 3 $95.

TLC Wedding Consultants Chart: Profit Monthly Chart: Profit Yearly Page 12 .

TLC Wedding Consultants Chart: Gross Margin Monthly Chart: Gross Margin Yearly Page 13 .

Chart: Cash Page 14 .3 Projected Cash Flow The following chart and table show our cash flow projections.TLC Wedding Consultants 7.

494 $83.394 $0 $0 $0 $0 $0 $0 $0 $83.00% 25. VAT.545 $97.100 $12.848 $76.075 $124.748 $65.744 $66.889 $0 $0 $0 $0 $0 $0 $0 $97.049 $74.394 Year 1 Year 2 Year 3 $53. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent $0 $0 $0 $0 $0 $0 $0 $65.949 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax. VAT.023 $50.42% 0 2 10.766 $22.200 $10.889 $85.900 $27.120 $45.00% 10.279 $112.689 $86.00% 10.00% 25.42% 0 Page 15 .345 Sales Tax.614 $0 $0 $0 $0 $0 $0 $0 $112.766 $25.134 $47.00% 0 3 10.318 $74.023 $0 $0 $0 $0 $0 $0 $0 $124.00% 25.614 $45.00% 10. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 Year 2 Year 3 1 10.345 Net Cash Flow Cash Balance $17.800 $11.TLC Wedding Consultants Table: Cash Flow Pro Forma Cash Flow Year 1 Year 2 Year 3 $38.848 $0 $0 $0 $0 $0 $0 $0 $86.

000) $28.000 $53.416 $90.000 ($3.923 $74.452 $0 $0 $0 $61.374 Year 1 Year 2 Year 3 Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $1.078 $28. First year monthly figures are included in the appendix.023 $0 $61.416 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Page 16 .339 $89.374 Net Worth $33.4 Projected Balance Sheet Three years of annual totals are presented in the Projected Balance Sheet below.900 $14.207 $61.949 $15.TLC Wedding Consultants 7.245 $0 $846 $0 $958 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $8.923 $0 $0 $0 $90.766 $11.078 $61. Table: Balance Sheet Pro Forma Balance Sheet Year 1 Year 2 Year 3 $22.452 $47.208 $33.245 $0 $0 $1.452 $8.426 $0 $90.686 $0 $34.208 $27.208 $34.000 $25.078 $89.923 $8.870 $61.245 $846 $0 $0 $846 $958 $0 $0 $958 Long-term Liabilities Total Liabilities $0 $1.374 $0 $0 $0 $34.

00% 1.29 2.a n.39% 1.a.64 1.49% 42. The final column. to Liab.00% 100.a n.00% 100.53% 31.10% 52.00% 27.a n.01 1.36 4% 18. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin Return on Equity 29.94% 33.10% 100.a n. Industry Profile. 20. Table: Ratios Ratio Analysis Year 1 Year 2 Year 3 Industry Profile n.00% 17.00% 1.20% 4.81 1.89 57 11.38% 109.68 3. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code.04 1.54 1% 56.a n.a n.30% 16.00% 72.00% 10.00% 75.61% 96.00% 100.00 0.06% 42.37% 45.06% 98.00% 100.00% 0.61% 0.a n.89 68 12.37% 60.00% 100.00 0.84% 60.70% 2.72 1% 78.04% 1.5 Business Ratios The following table outlines some of the more important ratios from the Personal Services industry.20% 100.32 94.94% 24.60% Sales Growth Percent of Total Assets Percent of Sales Sales Gross Margin Selling.87 0.59% 30. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout Page 17 .90% 28.00% 100.00% 0.00 n.63% 1.22 73.a $33.00 0.00 n.24 27 2.61% 113.90% 6.00% 3.52% 39.17 28 1.92% 0.00% 100. 7299.00 $89.a n.28% 73.00% 100.39 n.17 37 1.TLC Wedding Consultants 7.00 $61.00% 61.00% 11.87 0.22 1.35% 1.51% 100.90% Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Total Assets 33.22 1.77 4.00% 0.68 27.87% 32.a n.a Activity Ratios Accounts Receivable Turnover Collection Days Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.a 0.00% 100.00% Current Liabilities Long-term Liabilities Total Liabilities Net Worth 3.20% 100.89 71 12.00% 77.01% 94.69% n.01 1.49% 100.33 61.90% 38.078 0.07% 0.41 0.60% 84.65% 0.a 4.00% 70.63% 22.416 0.37% 0.00 n.37% 98.00% 17.a n.85 4.a n.207 0.a 0.32 1.00% 0.06% 0.00% 22.80% 47.10% 37.63% 0.37% 3.00 0.

000 $2.200 $1.400 $10.100 $5.900 $1.200 $6.200 $7.500 $1.200 $6.500 $2.200 $6.100 Sales Brides & Grooms Family Members Other Total Sales Direct Cost of Sales 0% 0% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Row 1 $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 Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Page 1 .300 $8.700 $6.300 $8.700 $3.100 $1.100 $1.700 $2.600 $1.400 $2.200 $2.700 $1.300 $1.Appendix Table: Sales Forecast 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 $2.000 $3.600 $2.000 $2.500 $1.900 $1.800 $1.300 $5.700 $1.200 $5.600 $4.900 $5.600 $5.300 $8.300 $8.000 $1.400 $1.000 $2.300 $3.600 $1.800 $4.200 $5.300 $9.400 $9.300 $1.

000 $4.000 $0 0 $4.000 $0 0 $4.000 $0 0 $4.000 $0 0 $4.000 $0 0 $4.000 $0 0 $4.000 $4.700 $0 0 $4.700 $0 0 $5.Appendix Table: Personnel Personnel Plan Owner Other Total People Total Payroll 0% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $4.700 $5.000 $0 0 $4.000 $0 0 $5.700 $0 0 $5.000 $5.000 $4.700 $5.000 $4.000 $0 0 $4.000 $4.000 $4.000 $4.000 $4.700 Page 2 .

00% 25.00% 10.00% 10.00% 10.00% 10.00% 10.00% 25.00% 25.00% 10.00% 0 0 0 0 0 0 0 0 0 0 0 0 Plan Month Other Month 12 Page 3 .00% 10.00% 10.00% Tax Rate 30.00% 25.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 25.00% 10.00% 10.00% 10.00% 25.00% 25.00% 10.00% 25.00% 10.00% 10.00% 25.00% 25.00% 10.00% 10.00% 10.00% 10.00% 25.Appendix Table: General Assumptions General Assumptions Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 1 2 3 4 5 6 7 8 9 10 11 12 Current Interest Rate 10.

225 $2.250 $4.050 $2.00% 100.700 $5.300 $9.038 Payroll Taxes Other Total Operating Expenses Interest Expense Taxes Incurred Net Profit Net Profit/Sales 15% $420 $1.700 $10.075 $838 $938 $1.Appendix Table: Profit and Loss 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 $5.000 $4.600 $8.100 $8.250 $4.100 $4.313 $1.350 $3.700 $5.200 $8.413 $2.550 $3.200 $8.00% 100.350 $4.800 $8.700 Sales and Marketing and Other Expenses Depreciation $1.300 $6.00% 100.000 $4.100 $8.600 $4.250 $4.600 $4.600 $7.00% 100.08% 38.37% 21.88% 24.350 $3.538 $1.850 $4.700 $6.300 $6.000 $6.113 7.850 $4.65% 37.250 $4.250 $4.600 $5.050 $2.513 $2.600 $4.00% 100.78% 35.24% 27.088 $1.263 $3.950 $5.94% 36.00% 100.99% 30.750 $4.888 $3.750 $4.700 $10.000 $6.700 $6.600 $7.350 $4.300 $3.950 $3.138 $963 $1.00% 100.800 $8.000 $4.900 $9.000 $4.300 $3.000 $4.70% 27.250 $4.150 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $180 $438 $513 $588 $650 $1.750 $2.900 $9.100 Direct Cost of Sales $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 Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales Gross Margin $5.00% 100.950 Profit Before Interest and Taxes $600 $1.950 $5.000 $4.350 $2.02% 28.000 $4.40% 26.100 100.00% 100.000 $4.000 $5.813 $3.600 $8.300 $9.350 $2.82% Page 4 .100 $250 $250 $250 $600 $250 $250 $250 $600 $250 $250 $250 Gross Margin % Expenses $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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5.150 EBITDA $600 $1.00% Payroll $4.750 $2.00% 100.550 $3.00% 100.763 $1.

217 $1.891 ($1.000 $4.255 $5.210 $3.430 $8.382 $5.972 $4.880 $4.737 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.746) $1.217 $5. VAT.260 $690 $765 $851 $1.946 $6.514 $5.690 $4.880 $3.246 $6. 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 $4.000 $4.655 $1.000 $5.352 $5.000 $4.763) ($2.851 $5.000 $4.700 $5.000 $4.560 $3.228 $9.786 $3.349 $7.489 $3.256 $1.440 $3.765 $4.520 $2.255 $1. VAT.851 $5.400 $2.437 $2.720 $3.355 $6.700 $5.348 $5.886 $9.791 $6. HST/GST Received New Current Borrowing 0.791 $6.426 $3.280 $2.492 $7.514 $5.870 $5.765 $4.706 $8.280 $2.166 $5.886 $9.266 $4.217 $5.628 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 $4.260 $4.520 $3.640 $2.706 $8.237 $2.240 $3.492 $7.000 $4.606 $3.588 $2.382 $1.043 $5.043 $5.355 $6.666 $7.815 $2.228 $9.382 $5.700 $43 $1.430 $8.592 $8.091 $1.349 $7.690 $4.081 $1.280 $2.592 $8.666 $7.000 $4.Appendix Table: Cash Flow 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 $2.040 $0 $114 $3.531 $2.946 $6.00% Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Subtotal Cash Spent Net Cash Flow Page 5 .255 $5.191 $4.349 $1.481 $1.891 Sales Tax.628 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $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 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $2.260 $4.000 $4.246 $6.

838 $8.007 $3.000) $3.395 $15.736 $9.000 $0 $0 $0 $6.747 $7.029 $11.983 $11.980 $9.742 $0 $28.208 $34.334 $20.980 $16.228 $5.341 $1.283 $18.000) $25.657 $8.051 $0 $1.051 $1.280 $9.334 $8.208 $0 $0 $1.237 $665 $0 $0 $665 $737 $0 $0 $737 $810 $0 $0 $810 $1.000 ($3.545 $22.770 $26.838 $0 $0 $0 $26.456 $0 $16.000 $5.270 $8.000 ($3.455 $12.420 $6.207 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Page 6 .389 $8.000 ($3.686 $0 $34.282 $30.000 ($3.000) $16.000 ($3.000) $22.000) $19.243 $0 $0 $0 $34.000 $5.148 $1.214 $0 $31.397 $0 $0 $0 $9.000 ($3.328 $0 $26.000 $0 $0 $5.007 $0 $0 $0 $10.000 ($3.208 $1.452 $0 $0 $0 $5.397 $8.033 $10.148 $0 $13.191 $0 $0 $0 $16.172 $0 $1.033 $10.614 $0 $10.619 $0 $0 $1.657 $0 $0 $0 $7.455 $0 $0 $0 $22.208 $33.245 Long-term Liabilities Total Liabilities $0 $0 $0 $1.395 $16.283 $19.000) $13.733 $6.657 $491 $6.545 $21.983 $15.237 $0 $665 $0 $737 $0 $810 $0 $1.260 $0 $9.237 $3.491 $12.906 $0 $7.770 $24.766 $11.000) $1.283 $27.389 $0 $0 $0 $28.000 $3.838 $16.293 $0 $1.842 $0 $0 $0 $13.452 $5.592 $10.545 $24.245 $8.736 $0 $0 $0 $19.029 $22.283 $21.770 $27.420 $0 $6.395 $18.733 $7.095 $31.148 $0 $0 $1.293 $0 $0 $1.043 $7.283 $28.208 $0 $1.061 $17.245 $0 $0 $1.172 $0 $0 $1.000 ($3.237 $0 $0 $1.Appendix Cash Balance $3.455 $8.228 $7.000 ($3.491 $9.334 $0 $0 $0 $31.397 $1.000) $10.747 $3.452 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Starting Balances Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $0 $0 $0 $0 $1.766 Table: Balance Sheet Pro Forma Balance Sheet Assets Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $5.592 $20.389 $17.000) $6.000 ($3.964 $0 $19.280 $9.095 $33.270 $9.858 $0 $22.842 $8.619 $1.191 $8.341 $0 $0 $1.000) $420 $5.000 ($3.293 $1.237 $491 $1.000) $5.191 $7.736 $8.148 $0 $1.051 $0 $0 $1.733 $8.000 ($3.172 $1.270 $10.619 $0 $1.420 $6.007 $8.095 $30.842 $5.983 $13.061 $10.033 $11.000) $28.243 $8.341 $0 $1.243 $22.043 $8.000 $8.000 ($3.000) $0 $5.