Strategy and Implementation Summary

Splash's strategy for reaching her two target segments will be based on seminars and networking. The seminars are open to the public and have a small, subsidized entry fee. They are meant to cover the basics of financial and estate planning. Typically the seminars will start to get these people asking questions about their personal finances and hopefully come back to Splash for more help. Splash will also be doing networking to find customers. Her networking will be primarily based on contacts that she made while at Reed College and Willamette University.

Competitive Edge
Splash Financial Managers' competitive advantage is their comprehensive approach to research and services provided. It is Splash's philosophy that she can develop more value for her customers by investing more time up front while researching different options. Most planning firms will do adequate research in terms of looking into different options, certainly enough to meet due diligence requirements. While this is sufficient for some, Splash adheres to the philosophy that its is better to invest the time upfront in support of the customers. This will then pay off in the future by developing long lasting relationships. This attention to detail and thoroughness will certainly be appreciated by clients who are trusting their financial future to Splash.

Marketing Strategy
Splash will be offering public seminars on estate planning and financial planning in Portland once or twice a month. These workshops will be have subsidized rates and encourage people to attend and learn as much information as possible. These seminars will typically take place in a public building and offer a general discussion on the subject. Splash will caution people against solely using this information to make decisions. Instead they will be encouraged to see a professional individually so they can better assess the customers needs. The seminars will attempt to get these people to start thinking about their financial future. These seminars are a very good, and efficient, way of introducing Splash to new clients. Splash will also be doing a lot of networking to drum up business. One outstanding source of networking is with her friends from her MBA program. While everyone that went through the MBA program has a good educational foundation for financial management, most people do not do their own planning by themselves but are assisted by a specialist. Splash will be contacting her colleagues through social occasions as well as calling them, to keep in touch with them and offer her services if they are in need. These two methods will accurately target the segmented populations and allow Splash to build her client list.

If the client then goes ahead and purchases a mutual fund or equity. Splash will receive revenue from two sources. There will be no sales activity during this period of time. however it will only trickle in until the four month when it will become more steady. This compensation structure if fairly standard in the industry. This approach takes a lot of time up front for Splash. Splash receives a commission from the company that is selling the item. Revenue will begin to occur during the second month. It will not be until the middle of year two when things begin to settle and become more like an established business in terms of dividing time between serving clients and attracting new ones. She will charge the client an initial modest fee and this includes all of the needed research. interviews and meetings. . but the customers will recognize this effort and choose SplashFinancial Managers as their service provider. Sales Forecast The first month of business will be used to set up the office. This is likely to turn prospective clients into long-term customers because people are often cautious with their financial future and offering a comprehensive solution will likely allay their concerns because SplashFinancial Managers is willing to work extra hard to research all options. The initial fee allows the client to receive as much counseling and research that they need and then future transactions are compensated by the company selling the equity.Sales Strategy SplashFinancial Managers' sales strategy will be to emphasize their competitive advantage of comprehensive research and product offerings. much like the commission structure of travel agents.

4. Business plan completion.804 $5. 2.964 $11.407 $6.455 $62.236 $5.240 Year 3 $72.544 $3.545 $128. This will be done as a roadmap for the organization.545 $147.951 Year 2 $65.000 Year 2 $5.004 $10.591 $86.090 Year 3 $5.545 $74. 3.767 Milestones SplashFinancial Managers will have several milestones early on: 1.300 $42.891 Year 1 $3. .Sales Forecast Year 1 Sales Estate planning Investing Total Sales Direct Cost of Sales Estate planning Investing Subtotal Direct Cost of Sales $44. Set up the office. It will be an indispensable tool for the ongoing performance and improvement of the company. Profitability. Develop a full-time client list.

00% 10.00% 10.Financial plan: General assumption Plan month Current year Long term interest rate Tax rate other 1 year 1 10.00% 30% 00 st 2 nd year 2 10.00% 30% 0 rd 7.00% 10.2 Break-even Analysis The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point. .00% 30% 0 3 year 3 10.

.Projected Profit and Loss The following table will indicate projected profit and loss.


951 $79.090 $11.800 $67.200 $456 $0 $0 $1.00% Year3 $147.323 92.00% $63.00% Year2 $128.000 $1.000 $10.891 $6.240 $0 $10.951 $0 $6.120 $1.200 $456 $0 $0 $1.800 .200 $456 $0 $0 $1.767 $135.000 $1.767 $0 $11.240 $117.940 92.Projected Profit and Loss Account: Profit and loss Year1 sales Direct cost of cost Other production expenses Total cost of sale Gross margin Gross margin % Expenses Payroll sales and marketing expenses Depreciation Leased equipment Utilities insurance $86.760 92.800 $72.

044 ($14.104) ($13.478 $18.256 $31.747 7.506 $19.000 $10.747 $21.776 $13.067 $31.000 $10.Rent Payroll tax other Operating expense PBIT EBITDA Interest expense Tax incurred Net profit $18.468 $0 $94.4 Projected Cash Flow The following chart and table will indicate projected cash flow.710 $0 $5.254 $19.104) $18.648) $0 $0 ($14.050 $0 $98. .523 $0 $21.000 $9.800 $0 $104.

000 Year 2 $0 $0 $0 $0 $0 $0 $0 $147.409 $0 $0 $0 $0 .475 $113.891 $86.262 $0 $0 $0 $0 $86. HST/GST Paid Out Principal Repayment of Current $0 $0 $63.090 Year 3 $86.475 $72.000 $128.891 $128.090 $147. VAT.891 Year 1 $67.Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.120 $34.000 $52.409 $124. VAT.000 $147.142 $97.090 Year 2 Year 3 New Other Liabilities (interest-free $0 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 Sales Tax. HST/GST Received New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $128.000 $46.

300 $456 $1.868 $0 $0 $3.954 $2.300 $1.347 $0 $0 $4.5 Projected Balance Sheet The following table will indicate the projected balance sheet.868 $0 $45.954 $0 $22.954 $0 $0 $0 $0 $0 $124.347 $0 Year 2 Year 3 .388 $24.429 $0 $0 $0 $0 $0 $113.342 Year 2 $3.681 $45.273 Year 1 $3.635 $0 $45.277 $0 $0 $3.262 ($10.371) $8.429 $2.409 $22.525 $22.368 $932 $46. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash 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 Long-term Liabilities $8.277 $0 $22.635 $2.844 $10.Other Liabilities Principal Repayment $0 Long-term Liabilities Principal Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $0 $97.635 7.475 $14.429 $0 $8.300 $912 $1.567 Year 3 $4.

868 $22.996 $10.478 $20.342 $20.220 $46.104) $6.277 $22.000 ($900) ($14.273 $6.000 ($1.347 $22.996 $3.Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $3.220 .567 $42.000 ($15.526) $21.474 $24.004) $13.747 $42.474 $4.