Cigar Manufacturing Business Plan

Executive Summary
Cigar World is a company designed to offer 'The Fine Cigar,' a cigar of the highest quality at a low and affordable price. This flagship product, which will be launched at the Retailers Tobacco Dealers of America (RTDA) in Las Vegas, will be delivered in three forms, premium bundle cigars, short filler cigars and the boxed premium cigars. Cigar World is a Raleigh based company, and our mission is to revolutionize the industry by producing high-quality products at affordable prices. As with any company, Cigar World recognizes its risks. The company is working to determine trends in the industry, the needs of the customer, and how best to address the needs of the customer. We aim to provide customers with exemplary service and products to keep them coming back for more. Our products are geared for a high-end market, which is comprised of males between the ages of 25 and 65, mainly professionals with medium to high income. On the large scale, our focus will be on wholesalers, retailers, and catalog companies. We believe that after the necessary funding is obtained, the company can capture 5-10% of the bundle premium market in the United States and Canada and up to 5% of the world premium boxed market in an 18 to 24 month period. This market share represents revenues of $2,500,000 in Year 1 rising to $8,000,000 and $13,050,000 in Year 2 and Year 3 respectively.

1.1 Mission
At Cigar World our mission is to revolutionize the industry by producing high-quality products at affordable prices.

1.2 Keys to Success
y y
Offer customer service that is second to none. We take pride in addressing customer needs beyond their expectations, and in a timely manner. Our state-of-the-art quality control, which is the best in the industry, will help launch this company and enable us to compete with other companies in the market.

y y y

We believe that we will have the best turnaround time. This coupled with our production flexibility will allow us to accommodate any customer regardless of size. The 'Fine Cigar' premium cigar has the best presentation in the industry. Cigar World is a member of the American Wholesaler Marketers Association, the Raleigh Chamber of Commerce, and is listed with Dunn and Bradstreet

Company Summary
Our aim is to establish Cigar World as the company with the best customer service in the industry. Our unsurpassed customer service coupled with production flexibility and the best quality control in the industry will help launch this company and enable us to compete with other companies in the market. As far as production is concerned, we have the best turnaround time and flexibility that allows us to accommodate any customer of any size. We have established a strong business to business telemarketing effort that is working very well to create new business for us. Although this is a big industry, less than 1% of the companies doing business today are as aggressive as we are in capturing new business. Members of our management team will be attending the Retailers Tobacco Dealers of America (RTDA) trade convention in Las Vegas, Nevada. It is at this convention where our products will be officially launched. Furthermore, the company has acquired a vehicle to be used by our sales representatives. This will allow us to better serve customers in the state of North Carolina. We have acquired all the necessary permits at the federal, state, and county levels. At the present moment, there are no regulations as far as producing, importing, and commercializing cigars. Although a health-warning label is not mandatory for cigars, the company will place the labels as a matter of protection against the possibility of lawsuits.

2.1 Company Ownership
Cigar World is a North Carolina corporation and is owned, in equal shares, by:

y y y

Michael Jones, president. Nathan Smith, vice president. John Thompson, production manager.

2.2 Company History
The table and chart below summarize Cigar World's performance for the previous two fiscal years.

000 $50.000 $40.000 $130.00% 88.00 6.000 Collection Period (days) 0 13 14 Inventory Turnover 0.000 $35.000 Accounts Receivable $0 $50.000 $1.000 $400.000 $1.000 $5.000 Total Current Assets $0 $130.00% 87.Past Performance 1997 1998 1999 Sales $0 $1.600.000 Gross Margin % 0.00 Balance Sheet 1997 1998 1999 Current Assets Cash $0 $40.000 Inventory $0 $5.000.000 Gross Margin $0 $870.000 Other Current Assets $0 $35.000 Long-term Assets .800.89% Operating Expenses $0 $350.00 6.

000 Paid-in Capital $0 $25.000 $5.000 Current Liabilities Accounts Payable $0 $20.000 Other Inputs .000 $20.000 $100.000 Current Borrowing $0 $0 $0 Other Current Liabilities (interest free) $0 $0 $0 Total Current Liabilities $0 $20.000 Total Capital and Liabilities $0 $150.000 Total Long-term Assets $0 $20.000 Retained Earnings $0 $5.000 $150.000 Earnings $0 $0 $0 Total Capital $0 $30.000 $5.000 $20.000 $25.000 $150.000 $120.000 Long-term Liabilities $0 $100.000 $30.000 Total Assets $0 $150.000 Accumulated Depreciation $0 $5.000 Total Liabilities $0 $120.Long-term Assets $0 $25.000 $20.000 $25.

Romeo. We will be in need of substantial additional resources to facilitate the development and production of current and future products. 'Fine Cigar. We are also planning to launch a limited edition of another wrapper that we will name the exquisite collection. among other things.com/cigar_manufacturing_business_plan/company_summary_fc.1 Product Description The history of our 'Fine Cigar' project goes back to 1995.000 $1. Our product will compete with well-known brands in the market such as Fuentes. for that reason.2 Future Products Our research and development team is working on a new line of products that will revolutionize the industry.00 Read more: http://www. Our flagship product will be launched at the Retailers Tobacco Dealers of America (RTDA) in Las Vegas.cfm#ixzz10N9CUPcn Products Cigar World has filed for a design patent for the box of our main product.' The message our packaging delivers is refinement and excellence. is exactly what sets us apart from the competition. and the cigar band has being designed.Payment Days 0 0 30 Sales on Credit $0 $700. Monte Cristo. and Julianta. The Fine Cigar is a cigar of the highest quality at an affordable price. One problem we will be faced with is copycats or fake copies. We have also filed for a trademark of the name. In our research and development.350.bplans. The company has spent well in excess of $100. and with that. Theme stores. Our company is also contemplating opening theme stores in the United States. Production is done overseas in Jamaica. the blend of the cigar is done.000 in the next 24 months. Our main product has been developed. Our packaging. the Fine Cigar was born. Upon determining the needs of the people and developing our product. we have are filing a design patent to protect us against such individuals. all input comes from the consumer via our telephone marketing.000 Receivables Turnover 0. . Like every other cigar. The following proposals are being considered for the future: y y y 'Fine Cigar' exquisite collection. with the exception of machine made. we designed a high powered presentation without paragon aimed at introducing our product to the world. July 1999. all of our products are handmade. and Europe.00 14. Canada. The space is adequate but we're planning on relocating near the main airport in order to cut costs on ground transportation. 3. our future plans include spending an additional $250. 3. we have filed for a design patent for our box. The 'Bland Cigar' line.000 since we started the 'Fine Cigar' project. A few very knowledgeable tobacconists spent hundreds of hours trying to develop a great product that would be sold at an unbeatable price.00 27.

9 to 37. Per capita consumption (per male 18 years and over) increased from 36. moist smokeless tobacco. According to Tobacco Reporter magazine.7 billion. .3 billion in 1997. Cigarettes accounted for nearly 94% of the total sales that year. retailers.8 cigars.S.Market Analysis Summary The company is competing in the cigar segment of the alcohol and tobacco industry. The table below outlines the total market potential of Cigar World's premium cigar products (in thousands of units). Year Production of tobacco in harvest units (million pounds) 1995 1. Combined. rising for the fifth straight year. our customers are wholesalers. tobacco products accounted for about $52. Our market segment comprises of value-conscious smokers. The table below gives the production in harvest units of tobacco which is considered to be a principal crop. the US Department of Agriculture (USDA) estimates that the total U. Of that total amount. attributable in part to an upturn in luxury goods consumption in general. In the United States.679 1996 1997 Of all the major tobacco product categories. these industries' retail sales reached approximately $148.2 billion units. and snuff. 4. and catalog companies.1 Market Segmentation Our company is focusing on the high-end market of premium cigars which is comprised of males between the ages of 25-65 mainly professionals with a medium to high income.3 billion units. chewing tobacco. consumption of cigars rose 4% to 5. The company plans to reach a 5-10% market share in each of these subsegments in 24 months. On the large scale.269 1. consumption of cigars gained 14% in 1997 to 5.517 1. These figures were provided by the Agricultural Statistics Board. For 1998. U.S. cigars experienced the fastest unit growth in recent years. the remaining 6% came from cigars. This segment of the population is the most profitable one due to a large disposable income. alcoholic beverages and tobacco products are considered big business.

080 357.305 378..000 318. Also.102 126. From these interviews we have determined that the market is ready for a new cigar brand. most importantly.00% Short Filler Cigars 6% 100.00% 4. but the competition is strong and in order for us to succeed we need to market this cigar aggressively.540 178.180 59. Their widespread popularity and great value makes them difficult to obtain.00% Boxed Premium Cigars 6% 50.743 6.000 56.000 337. Sr.360 119. was virtually born into the cigar .248 6. one that is a unique. Carlos.000 112.000 106.000 168. 4.2 Competition and Buying Patterns We have developed a masterpiece when it comes to quality.Market Analysis 2000 2001 2002 2003 2004 Potential Customers Growth CAGR Premium Bundle Cigars 6% 150. His son.00% 300.551 63.000 159. but well worth the effort.652 189.000 53. Our staff has been interviewing prospective customers in all 50 states in order to get feedback from the customer.124 6. the price was determined by taking into consideration how much the customers are willing to pay for a new product. The Fuentes family has been making world class cigars for three generations. price. Arturo Fuentes learned the art of cultivating tobacco and manufacturing handmade cigars from his father in Cuba.371 6. presentation and.00% Total 6. The Fuentes family's tobacco roots go back to old-world Cuba of the 1800's.3 Main Competitors The major companies that compete in the market are: y Fuentes.

Customer service. Today the Fuentes family has over 1. The Macanudo Vintage Cabinet Selection cigars are not only few in number. the Partagas Limited Reserve cigars are made from fewer than one in 100 Partagas tobacco leaves. The Arturo Fuentes® brand is the most sought-after premium cigar in America. The introduction of the Bahia brand into the USA in 1994 caused a revolution in taste and appreciation of the world's finest cigars.business as his first home served as the Fuentes cigar factory in Tampa..1 Value Proposition Cigar World offers the following value proposition for customers: y y y y Presentation. The superior quality of the Arturo Fuentes® brand resulted in quickly establishing a loyal core of cigar customers which necessitated the building of a second factory. y Bahia Cigars. Within a year Tony was recognized with an annual award for his innovation by Market Watch (a sister publication of Cigar Aficionado) and soon after was much in demand by wine retailers to set up and open humidors throughout the USA. 4. On the contrary. Sr. At this time. These cigars were made of Cuban seed tobacco. The quality of the 'Fine Cigar' is as good as that of major brands. Read more: Strategy and Implementation Summary Our sales and marketing strategies are discussed in the following topics. The biggest risk involved is the continuing pressure of the United States government over any tobacco product. our premium cigars include Temple Hall Estates. . market by Tony Borhani and receive his personal guarantee against mass production and compromise in quality for any reason whatsoever. Customers can count on us to deliver on time and can easily reach us whenever they need to. and Canaria d'Oro. Jamaica. Not to be outdone. they're made only in the greatest of tobacco years. y General Cigar Company. a dark and rich cigar made in small quantities with a superb wrapper leaf grown in Mexico. a tribute to the island of Jamaica's oldest and greatest tobacco tradition. 5. This story begins in the tasting grounds of California where Tony Borhani started something of a trend by introducing cigar appreciation to clients of his fine wine business. Quality. We have prices that are very affordable. Ramon Allones.S. however. Extremely competitive prices. but they're not the only premium cigars.000 cigars. Macanudo and Partagas are the most famous names at General Cigar Company. The 'Fine Cigar' premium cigar has the best presentation in the industry. grown in Nicaragua of the 1988 harvest with a total production of 40. In 1980 the Fuentes opened their first factory in the Jamaica with seven employees. a cigar that rose to fame long before Castro came into power.800 employees in four factories in Santiago. Bahia was the first boutique producer specializing in small batch production of gourmet cigars to be selected for the U. Federal regulations are very lenient with cigars. Carlos. worked at the factory everyday after school learning how to blend tobaccos and the ritual of rolling cigars by hand.4 Risks The company recognizes that it is subject to both market and industry risks.

Our telephone solicitation concept is very unique. A direct mail piece and the program of which it is a part can be almost whatever we want it to be.2 Distribution Strategy Our customers are satisfied with the quality of customer service we have provided. we will rely on a combination of the following channels: y Trade shows. y Telephone solicitations.3 Marketing Strategy In marketing our products and services. and delivery. The message associated with our products is high quality at affordable prices. been using the phones aggressively with much success. service and market position. the customer can return the merchandise before accepting it. smooth operation. Use of the Internet is growing and more and more people are using it in place of the traditional methods to look for services and even to do their shopping. This will be done through direct mail and telephone solicitations. y Personal visits from our sales representatives. 5. Customers can reach us by email. We believe that will allow for efficiency. A van has been purchased for the sole use of the sales representatives. A website has been developed and this will be one of the major communication channels. This is a method we feel will be highly effective especially in the North Carolina area. we have not heard of a cigar company using this concept as a marketing tool. Our promotional plan is diverse and will include a range of marketing communications. allowing us to showcase our products. The table below summarized our sales forecast for fiscal year 2000-2002. manufacturing. and keep abreast with the changes and advancements in product selection. 5. without being constrained by the publication or broadcast schedules of the major media. or our 800 number. select the audience by name. With this approach. y Direct mail. Due to the nature of our product we only offer a full return on box damage due to shipping. we do not offer money back guarantee on the cigars itself. fax.4 Sales Forecast . and put us in direct contact with the clients and major decision-makers. This is a highly effective medium. Our company has. make direct selling offers. Direct mail is probably the most flexible medium of all. and the establishment of a magazine ad campaign. and set whatever distribution schedule is most desirable. make contact with industry leaders. Future plans call for company owned stores nationwide and in Europe. we can send coupons. we will rely on feedback from customers with whom we have relationships. in addition to other channels. The competition prefers to attend trade shows and place magazine ads. The company is currently offering a toll-free line for customer service.5. y Website. In monitoring our products.

500.Cigar World forecasts modest but steady growth in sales during the first year of this plan. marketing increases our exposure in our target segments.000 $8. Sales Forecast 2000 2001 2002 Sales All Product Lines $2. and the smoking of cigars gains greater acceptance as a cultural trend we anticipate skyrocketing sales in year two and three.000 $13.050.000 Other $0 $0 $0 . As new releases are added to the product offerings.000.

Below is a list of our key officers and their backgrounds.000 5.bplans.Total Sales $2.500 Production manager $36. Nathan Smith.000 Other $0 $0 $0 Subtotal Direct Cost of Sales $100.cfm#ixzz10N9f72n7 Managment Summary At Cigar World. and an immense desire to succeed. Personnel Plan 2000 2001 2002 President $36. We believe that this will expedite the dispatching of orders and enable us to develop this facility as a tourist attraction. Read more: http://www. this merger will enable us to secure a production of one million cigars a month with the potential to double this capacity at short notice. hard work. upon completion of the merger.com/cigar_manufacturing_business_plan/strategy_and_implementation_summary_fc.000 $370. a cigar producer in Jamaica.200 $47. plans have been made to relocate to a much larger facility close to the main airport in Jamaica.000 $8. vice president. Once complete. Also.000 $370.200 $47.000 $400.500. our management philosophy is based on responsibility.000. John Thompson.000 $43. production manager.000 $400.000 $13.200 $47.5 Strategic Alliances We are currently in the process of negotiating a merger with Cigar Maker. president.050.500 .500 Vice president $36.000 Direct Cost of Sales 2000 2001 2002 All Product Lines $100. Key Officers: y y y Michael Jones. Confidential and Proprietary resume information has been omitted from this sample plan.000 $43.000 $43.

90% . as determined by the Standard Industry Classification (SIC) Index.18% 29.37% 1.22% 24.89% 220.13% 8. Ratio Analysis 2000 2001 2002 Industry Profile Sales Growth 38.51% 0.100 $466.50% Percent of Total Assets Accounts Receivable 22.75% 97. we are requesting a loan of $150.500 $323.90% Inventory 0. In order to proceed.1 Business Ratios The following table contains important ratios from the Tobacco and Tobacco Products industry (SIC 5194). we feel a loan to our company is a sound investment. marketing.63% 98.50% Total Current Assets 95. We can provide an exit for this loan immediately after going public by a recapitalization of funds. The funds will be used for manufacturing and production.42% 13.30% 27.64% 0.74% 17.000.01% 0.10% Long-term Assets 4.85% 18.Workers $132.70% Other Current Assets 2.000 $401. 7.26% 82.25% 2. and to cover initial operating expenses.68% 0.00% 63.000 Financial Plan Based on our projections.500 Other $0 $0 $0 Total People 10 15 16 Total Payroll $240. The company is planning on going public within the next 12 to 18 months and this will provide additional funds to repay the loan.000 $271.

95% 2.08 1.90% Selling.05% 97. General & Administrative Expenses 40.99% 16.00% 100.86% 22.00% Gross Margin 95.95% 2.00% 100.64% 4.40% 74.79% 104.80% Percent of Sales Sales 100.30% 10.59% 7.00% 100.71% 3.70% Profit Before Interest and Taxes 75.00% 100.65% 3.46% 30.39% 46.00% Current Liabilities 13.00% 1.41% 99.95 Total Debt to Total Assets 18.30% Main Ratios Current 6.72 Quick 6.00% 100.58% 76.20% Net Worth 81.45 40.98% 0.96 0.90% Total Liabilities 18.97% 2.70% 57.98 24.30% 42.36% 95.77% 0.25% 96.30% Pre-tax Return on Assets 106.93 24.28% 1.64% 4.61 41.70% .20% Advertising Expenses 2.30% Long-term Liabilities 4.77% 28.16% 86.Total Assets 100.25% 0.00% 100.80% 95.70% 57.20% Pre-tax Return on Net Worth 130.19% 90.92% 0.

17 n.16 0.a Accounts Payable Turnover 9.43% 57.464 $15.25 8.479.83 n.91 13.36 367. to Liab.88% 78.43 1.Additional Ratios 2000 2001 2002 Net Profit Margin 55.05 0.429.a Debt Ratios Debt to Net Worth 0.74 0.078 n.a Additional Ratios .89 n.a Current Liab.03 n. 0.80 12.a Interest Coverage 77.a Payment Days 28 22 25 n.924 $6.75 n.53% 64.80 0.a Activity Ratios Accounts Receivable Turnover 4.26% n.a Total Asset Turnover 1.a Return on Equity 97.18 931.127.17 12.71 4.a Liquidity Ratios Net Working Capital $1.a Collection Days 57 51 63 n.47% 67.a Inventory Turnover 10.17% n.63 n.71 n.23 0.71 4.

45 n.00% Long-term Interest Rate 10.27 19.86 1.3 Break-even Analysis As the table below shows.85 n.00% 25.00 n. Cigar World's margins provide enough resources to break-even.22 0.a 7.00% Tax Rate 25.a Dividend Payout 0.Assets to Sales 0.a Current Debt/Total Assets 14% 4% 2% n.00 0.00% 10.76 1.00% 10.42% 25.00% 10.42% Other 0 0 0 7.00% 10. General Assumptions 2000 2001 2002 Plan Month 1 2 3 Current Interest Rate 10.21 n. .81 35.a Acid Test 5.2 Important Assumptions The table below shows the assumptions that are important to the success of Cigar World.00 0.70 0.a Sales/Net Worth 1.

Break-even Analysis Monthly Revenue Break-even $44.4 Projected Profit and Loss The table below shows our projected income statement.000 7. .792 Assumptions: Average Percent Variable Cost 4% Estimated Monthly Fixed Cost $43.

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620.000 $7.000 $10.050.000 Total Cost of Sales $105.000 Direct Cost of Sales $100.86% Expenses Payroll $240.000 $410.100 $466.000 Sales and Marketing and Other Expenses $218.000 Other $5.000.000 .000 $370.000 $295.25% 96.000 $10.000 $8.000 $230.80% 95.000 Gross Margin % 95.000 $12.640.Pro Forma Profit and Loss 2000 2001 2002 Sales $2.500.000 $13.000 $380.395.000 Gross Margin $2.000 $400.000 $401.

125 $5.417 Net Profit/Sales 55.5 Projected Cash Flow The company's cash reserves are sufficient for everyday operations and investments.465 $8.777.000 $10.400 $11.53% 64.750 Profit Before Interest and Taxes $1.750 Other $0 $0 $0 Total Operating Expenses $516.157.500 $5.879.400 $11.250 EBITDA $1.155 $2.500 $4.719.000 $3.000 $63.000 $10.000 $6.780 $12.895.781.187 Net Profit $1.791.905.000 $15.000 $5.885.000 Rent $2.26% 7.388. .000 Utilities $2.250 Interest Expense $24.600 $858.000 $6.000 $15.000 $724.000 Payroll Taxes $37.47% 67.585 $1.991.646 Taxes Incurred $466.290 $18.000 Insurance $10.Depreciation $6.500 $60.

VAT.Pro Forma Cash Flow 2000 2001 2002 Cash Received Cash from Operations Cash Sales $625.850 $8.000 $2.245.850 $12.000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 .123.500 Cash from Receivables $1.262. HST/GST Received $0 $0 $0 New Current Borrowing $150.750 $7.035 Subtotal Cash from Operations $2.151.000.983.000 $3.750 $5.526.123.535 Additional Cash Received Sales Tax.

VAT.535 Expenditures 2000 2001 2002 Expenditures from Operations Cash Spending $240.000 $401.720 $2.081 $6.000 Dividends $0 $0 $0 .286 Subtotal Spent on Operations $1.803 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $60.926 $19.750 $7.201 $17.720 $2.301.156.850 $12.000 $100.165 $4.123.350.000 Bill Payments $803. HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $78.751.286 Additional Cash Spent Sales Tax.000 $120.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 $2.100 $466.245.043.864 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $14.690.065 $3.

942.956 $47.000 Total Current Assets $1.078.507 $13.829 $5.507 $13.400.959 $6.250 $1.000 $164.678 $7.343.668.582 Cash Balance $1.117.183.504.Subtotal Cash Spent $1.000 Accumulated Depreciation $11. Pro Forma Balance Sheet 2000 2001 2002 Assets Current Assets Cash $1.474 Long-term Assets Long-term Assets $85.520 Other Current Assets $35.865 Inventory $11.000 $274.000 $305.829 $4.829 $5.753.089 7.000 .000 $31.880 $43.223.302.400 $2.6 Projected Balance Sheet The company's projected balance sheets for fiscal year 2000-2002 are provided below.863 $15.921 $2.400.343.000 $21.000 $185.000 $35.089 Accounts Receivable $398.947.000 Total Long-term Assets $74.172 $4.000 $35.223.953 Net Cash Flow $1.274.176.

008 Total Liabilities and Capital $1.417 Total Capital $1.591 $15.000 $8.800 .000 $71.272 $425.125 $6.591 Earnings $1.000 $220.125 $5.000 $200.000 $200.466 Paid-in Capital $25.800 $10.com/cigar_manufacturing_business_plan/financial_plan_fc.000 $270.000 $270.000 $8.591 $15.474 Liabilities and Capital 2000 2001 2002 Current Liabilities Accounts Payable $89.000 $200.959 $6.396 Long-term Liabilities $85.070 Total Liabilities $324.863 $15.742.353.000 $8.800 $8.035 $274.bplans.000 $25.000 Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Sales $100.008 Read more: http://www.035 $202.000 $200.575.575.474 Net Worth $1.000 $6.000 $8.000 $150.388.000 $6.000 $200.399 $377.157.000 $220.800 $8.000 $270.800 $10.480 $312.959 $6.000 $8.000 $200.000 Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec All Product Lines $4.Total Assets $1.055 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $239.000 $270.000 $270.465 $8.800 $10.000 $220.cfm#ixzz10NA1Rj4G Sales Forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales All Product Lines 0% $100.000 $8.125 $6.353.000 $25.125 $6.000 $1.418.418.000 $270.000 $200.800 $10.000 $8.800 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Direct Cost of Sales $4.742.000 $8.393.917.000 $8.778.777.000 $200.919 $65.341 Current Borrowing $150.800 $10.917.863 $15.000 $200.000 $8.873 $48.000 $8.000 $8.834 $342.550.000 $200.778.000 Retained Earnings $5.799 $67.800 $10.000 $150.000 $220.

5 $232.000 $3.000 00 0 50 50 00 00 00 00 00 00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec .000 $3.00 $37.com/cigar_manufacturing_business_plan/appendix_fc.00% 10.00 $50.00 $50.Read more: http://www.000 $3.00% 25.000 Vice president 0% $3.00% 25.000 $3.000 $20.00% 25.000 $20.00% 10.00% 25.50 $76.000 $3.000 $11.5 $233.000 $11.000 $3.000 $3.bplans.000 $11.000 $3.0 $200.bplans.00% 10.000 $3.00% 25.7 $200.50 $50.000 $20.000 $20.000 0 0 50 50 00 00 00 00 00 00 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $150.500 0 0 0 0 0 0 0 0 0 0 $25.000 $11.000 $3.000 $3.5 $233.000 $3.00% 25.000 $20.00% 10.000 $3.00% Long-term Interest Rate 10.00% 10.000 $3.000 $11.50 $67.00% 10.000 $20.00% 10.0 $166.0 $150.00% 25.00 $65.00% 10.000 $3.250 $202.000 $11.000 $3.000 $20.00% 10.000 Read more: http://www.000 $3.000 $3.00 VAT.2 $163.00% 25.5 $165.cfm#table_6_big_div#ixzz10NAInvoY Personnel Plan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec President 0% $3.00 $67.000 $11.7 $200.2 $163.000 $11.000 $3.0 $200.000 $3.0 $150.0 $65.0 $205.500 $67.000 $3.00% 10.00% 10.25 $113. HST/GST % Received New Current Borrowing New Other Liabilities (interestfree) New Longterm Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investmen t Received Subtotal Cash Received Expenditur $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25.000 $3. 0.0 $205.00% Other 0 0 0 0 0 0 0 0 0 0 0 0 Read more: http://www.000 $3.00% 10.5 $232.00 $27.000 $20.500 0 0 0 50 00 00 00 00 00 00 $50.000 $3.750 $270.00 $126.000 $20.00 $50.0 $200.com/cigar_manufacturing_business_plan/appendix_fc.00% 10.0 00 $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 $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 $200.00% 10.00% 10.00% 10.000 $3.com/cigar_manufacturing_business_plan/appendix_fc.000 $20.000 $3.000 $3.000 $3.7 $150.000 $3.000 $3.0 $150.00 $50.000 $20.00% 10.00% Tax Rate 30.00 $55.000 $3.00% 10.00% 25.00% 10.bplans.000 Production manager 0% $3.000 Workers 0% $11.00% 10.00% 10.750 $270.cfm#table_6_big_div#ixzz10NAMkzGE General Assumptions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Plan Month 1 2 3 4 5 6 7 8 9 10 11 12 Current Interest Rate 10.0 $205.000 $3.0 $205.00% 25.000 $3.00 $55.000 $11.00% 10.000 $11.000 Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total People 10 10 10 10 10 10 10 10 10 10 10 10 Total Payroll $20.cfm#table_6_big_div#ixzz10NATaiQh Pro Forma Cash Flow Jan Cash Received Cash from Operation s Cash Sales Cash from Receivabl es Subtotal Cash from Operation s Additional Cash Received Sales Tax.0 $150.00 $126.0 $200.00% 25.000 $11.

7 $119.00 $20.73% 95.000 $20.667 $20.46 $93.000 $8.1 $101.4 $128.000 $5.800 $10.000 $5.96 $96. HST/GST Paid Out Principal Repaymen t of Current Borrowing Other Liabilities Principal Repaymen t Long-term Liabilities Principal Repaymen t Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Page 4 of 6 Read more: http://www.291 $1.00 $20.000 $8.291 $1.000 $20.56 $97.82% 95.600 $191.0 $103.667 $20.800 $258.000 $20.7 27 $45 $47.667 $20.000 $200.000 $220.000 $5.000 $270.000 $200.400 $6.5 $827.025 3 4 7 4 4 1 3 1 8 9 $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 $0 $1.000 $20.66 $72.000 $20.64 $97.0 $619.78 $97.667 $15.000 0 0 0 0 0 0 0 0 0 0 $21.000 $5.80% 95.000 $270.200 $11.400 $8.071.28 $67.75 $87.000 Sales and Marketing and Other Expenses $10.00 $20.800 $10.3 $107.000 Direct Cost of Sales $4.36 $91.800 Other $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $500 $500 Total Cost of Sales $4.667 $20.000 $200.800 $8.7 $1.667 $10.600 $210.8 27 72 54 59 24 71 27 75 97 37 46 29 .1 $1.56 $77.600 $143.600 $191.03 $97.700 Gross Margin % 95.80% 95.291 $1.65 $97.667 $20.95 $78.74 $91.316 3 5 8 5 5 2 4 2 79 60 $153.9 $102.80% 95.7 $517.800 $10.000 $150.000 $20.050 $111.85% 95.400 $8.04 $94.46 $113.000 $200.400 $9.7 $241.000 $8.000 $0 $46.291 $1.4 $726.9 $956.291 $1.400 $8.27 $64.00 $20.7 $193.000 $20.00 $20.85 $104.000 $5.667 $20.60% 95.409 $152.291 $1.400 $8.3 $102.27 $38.684 2 5 65 48 56 48 21 40 $193.200 $11.000 $8.025 3 4 7 4 4 1 3 1 8 9 $41. VAT.35 $91.0 $308.400 $8.000 $0 $5.74 $71.050 $91.com/cigar_manufacturing_business_plan/appendix_fc.291 $1.7 $414.000 $220.800 $258.67 $89.7 $114.35 $71.00 $20.000 $8.000 $5.000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5.667 $20.300 Gross Margin $95.341 $117.200 $9.36 $71.291 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5.291 $1.80% 95.000 $8.00 $20.67 $69.75 $67.80% 95.800 $210.78 $77.667 Depreciation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Utilities $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $20.667 $15.000 $20.81% 95.300 $11.223.000 $200.00 $20.bplans.00 $20.es Expenditur es from Operation s Cash Spending Bill Payments Subtotal Spent on Operation s Additional Cash Spent Sales Tax.000 $5.000 $20.cfm#table_6_big_div#ixzz10NAZ5tgC Pro Forma Profit and Loss Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales $100.667 $20.70 $105.000 $270.600 $191.291 $1.27 $58.600 $191.600 $191.291 $1.000 $20.000 $20.000 $5.000 $6.00 $20.700 $258.81% Expenses Payroll $20.82% 95.66 $52.000 $20.000 $5.

955 $239.com/cigar_manufacturing_business_plan/appendix_fc.538 $37.197.925 $213.500 $7.102.000 $258.372 $577.500 $65.000 $60.058 $314.146 $1.559 $796.257.000 $51.871 $958.000 $70.965 Taxes Incurred $17.090 $85.000 $42.963 $89.725 $146.375 $45.000 $5.000 $5.225 $151.000 $150.724 $517.575 $827.699 $150.000 $100.366 $68.000 $150.871 $1.000 $150.500 $11.500 $10.73% 58.000 $33.000 $6.000 $5.709 $97.388.000 $60.000 $98.516.425 $213.045 $324.699 $150.000 Earnings $0 $40.418.000 $35.925 $213.351 $698.680 $11.139 $108.375 $40.442 $26.512 $157.857 $52.742.000 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $20.524 $855.127 $420.29% Read more: http://www.052 $40.585.737 $1.000 $25.205 $590.351 $668.125 Total Capital $30.223 $74.230.837 $52.000 $357.563 $122.017 $87.520 $311.829 Accounts Receivable $50.997 $956.102.000 $55.000 $3.800 $9.927 $200.730 $1.500 $74.725 $151.600 $8.730 $1.725 $151.127 $94.104 $685.500 $56.604 $647.com/cigar_manufacturing_business_plan/appendix_fc.372 $577.000 $35.255 $1.000 $185.759 $414.221 $316.94% 54.000 $7.000 $3.699 $79.955 $89.260.880 $11.585.959 Long-term Assets Long-term Assets $25.425 $165.000 $35.418.cfm#table_6_big_div#ixzz10NAg6QiL Pro Forma Balance Sheet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Starting Balances Current Assets Cash $40.627 $449.000 $3.730 $1.366 $218.066 $482.000 $25.640 $1.000 $5.313 $262.046 $36.000 $35.000 $30.430.959 Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Current Liabilities Accounts Payable $20.000 $35.500 $8.500 $215.225 $146.276 $1.225 $108.000 $24.398 $325.293 $36.000 $25.325 $211.000 Retained Earnings $5.672 $88.291 $37.000 $357.000 $25.71% 58.255 $1.186 $314.250 $398.000 $5.000 $25.000 $150.000 $324.024 $902.000 $85.000 $310.545 $92.375 $45.000 $25.000 Total Long-term Assets $20.493 $313.418 $96.500 $47.000 $25.375 $45.009.967 $75.000 $150.000 $5.776 $1.000 $3.000 $3.725 $108.94% 55.000 $333.375 $46.725 $146.066 $482.70% 53.500 $6.069 $913.219 $1.325 Interest Expense $2.000 $25.000 $150.500 $65.872 $111.427 $726.800 $8.000 $70.000 $150.008 $1.351 $698.776 $1.375 $45.365 $90.bplans.825 $212.727 $193.375 $45.255 $1.854 $40.627 $449.727 $1.000 $75.072.000 $5.000 $193.000 $80.500 $29.430.680 $9.559 $796.800 $8.223 $224.000 $3.000 $36.186 $374.800 $8.506 $821.617 $1.062 $2.000 Total Assets $150.051 $2.668.375 $40.000 $35.000 $150.000 $40.250 Inventory $5.000 $5.465 Net Profit $40.137.349 $67.049 $36.825 EBITDA $60.772 $241.313 $232.000 $35.000 $3.000 $9.000 $3.225 $146.225 $165.500 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses $35.125 Total Liabilities and Capital $150.365.975 $68.365 $240.024 $902.880 Other Current Assets $35.000 $45.750 $295.617 $1.927 $299.069 $943.017 $237.205 $590.000 $69.037 $328.254 $90.677 $1.725 $146.000 $295.035 Current Borrowing $0 $150.000 $3.860 $52.500 $9.000 $100.000 $150.000 $35.257.967 $225.000 $8.425 $213.742.08% 55.000 $65.054 $308.372 $543.000 $35.959 Net Worth $30.834 Paid-in Capital $25.219 $1.000 $5.836 $93.000 $35.225 $146.997 $1.019 $2.000 $150.bplans.400 $6.975 $218.000 $35.727 $1.227 $1.08% 55.000 $25.871 $1.035 Long-term Liabilities $100.381 $87.875 Profit Before Interest and Taxes $60.927 $50.07% 54.225 $151.219 $1.925 $165.559 $753.000 $286.500 $362.205 $560.000 $35.800 $8.819 $312.000 $50.071.71% 55.000 $5.066 $452.030 $2.009.081.000 $3.cfm#table_6_big_div#ixzz10NAl0dCi .000 $295.137.000 Accumulated Depreciation $5.073 $2.506 $791.000 $5.000 $10.147 $108.155 $122.983 $218.571 $158.000 $186.223.880 $108.725 $165.579 $158.000 Total Current Assets $130.375 $45.000 $25.699 $120.987 $1.186 $344.000 $25.000 $5.000 $150.375 $35.976 $1.500 $38.000 $4.260.177 $1.069 $943.000 $4.000 $295.918 $311.071 $619.040 $2.880 $11.000 $5.640 $1.617 $1.125 Read more: http://www.000 $70.Insurance $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 Rent $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 Payroll Taxes 15% $3.375 $45.677 $1.614 $111.104 $685.07% 54.640 $1.395 Net Profit/Sales 40.083 $2.000 $35.799 Total Liabilities $120.71% 58.983 $68.349 $217.000 $398.506 $821.000 $25.313 $262.186 $374.