[YOUR NAME]

[YOUR TITLE]

Phone: [YOUR PHONE NUMBER]

Email: [YOUREMAIL@YOURCOMPANY.COM]
[YOUR WEBSITE ADDRESS]
[MONTH] [YEAR] // Confidential Information
[MONTH] [YEAR] // Confidential Information
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided [YOUR COMPANY NAME] in this business
plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR
COMPANY NAME].

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in
nature, other than information which is in the public domain through other means and that any disclosure or use of
same by reader may cause serious harm or damage to [YOUR COMPANY NAME].

Upon request, this document is to be immediately returned to [YOUR COMPANY NAME].

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

[MONTH] [YEAR] // Confidential Information

 Table of Contents

1.0 Executive Summary............................................................................................................................................ 1

Chart: Highlights.............................................................................................................................................. 1
1.1 Objectives................................................................................................................................................. 1
1.2 Mission............................................................................................................................................................... 2
1.3 Keys to Success................................................................................................................................................. 2
2.0 Company Summary............................................................................................................................................ 2
2.1 Company Ownership.......................................................................................................................................... 2
2.2 Company History................................................................................................................................................ 3
Table: Past Performance................................................................................................................................. 3
Chart: Past Performance................................................................................................................................. 4
3.0 Products and Services........................................................................................................................................ 4
4.0 Market Analysis Summary.................................................................................................................................. 5
4.1 Target Market Segment Strategy................................................................................................................... 5
4.2 Service Business Analysis............................................................................................................................. 5
4.2.1 Competition and Buying Patterns.................................................................................................................... 5
5.0 Web Plan Summary............................................................................................................................................ 6
5.1 Website Marketing Strategy................................................................................................................................ 6
6.1 SWOT Analysis.................................................................................................................................................. 7
6.1.1 Strengths......................................................................................................................................................... 7
6.1.2 Weaknesses.................................................................................................................................................... 7
6.1.3 Opportunities................................................................................................................................................... 7
6.1.4 Threats............................................................................................................................................................ 7
6.2 Competitive Edge........................................................................................................................................... 7
6.4 Sales Strategy................................................................................................................................................ 8
6.4.1 Sales Forecast................................................................................................................................................. 8
Table: Sales Forecast...................................................................................................................................... 9
Chart: Sales Monthly...................................................................................................................................... 10
Chart: Sales by Year...................................................................................................................................... 10
6.5 Milestones.................................................................................................................................................... 11
Table: Milestones........................................................................................................................................... 11
7.0 Management Summary.................................................................................................................................... 12
7.1 Personnel Plan............................................................................................................................................. 12
Table: Personnel............................................................................................................................................ 12
8.0 Financial Plan................................................................................................................................................... 12
8.2 Break-even Analysis..................................................................................................................................... 13
Table: Break-even Analysis........................................................................................................................... 13
Chart: Break-even Analysis............................................................................................................................ 13
8.3 Projected Profit and Loss............................................................................................................................. 14
Table: Profit and Loss.................................................................................................................................... 14
Chart: Profit Monthly...................................................................................................................................... 15
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 Table of Contents

Chart: Profit Yearly......................................................................................................................................... 15

Chart: Gross Margin Monthly......................................................................................................................... 16
Chart: Gross Margin Yearly............................................................................................................................ 16
8.4 Projected Cash Flow.................................................................................................................................... 17
Table: Cash Flow........................................................................................................................................... 17
Chart: Cash.................................................................................................................................................... 18
8.5 Projected Balance Sheet.............................................................................................................................. 19
Table: Balance Sheet..................................................................................................................................... 19
8.6 Business Ratios................................................................................................................................................ 20
Table: Ratios.................................................................................................................................................. 20
Table: Sales Forecast...................................................................................................................................... 1
Table: Personnel.............................................................................................................................................. 3
Table: Personnel.............................................................................................................................................. 3
Table: Profit and Loss...................................................................................................................................... 4
Table: Cash Flow............................................................................................................................................. 6
Table: Balance Sheet....................................................................................................................................... 8

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 [YOUR COMPANY NAME]

1.0 Executive Summary

This business plan for [YOUR COMPANY NAME] projects sales, profits and losses, cash flow, and balances for the
next 3 years with the factor of $500,000 in grant funding sought by the company for expansion purposes included in
those figures. This funding is instrumental to the growth of [YOUR COMPANY NAME] in that it will allow for the
purchase of a property, in which a facility may be installed that will allow for Board and Training service, an otherwise
unavailable (and lucrative) feature of the company. This plan will also reflect on marketing strategies, web plans,
demographic considerations, milestones for the company to meet, and an explanation of the company’s nature and
past performance.

Chart: Highlights

1.1 Objectives

[YOUR COMPANY NAME]’s Objectives over the next 3 years are to implement new services (such as an expanded
Board and Train program), create a uniform and consistent means of client feedback, expand the range and depth of
education for our trainers, become a greater presence in local animal rescue programs, and to increase our
workload through advertising, a web presence, and client referrals. The primary objective of [YOUR COMPANY
NAME] and the intended use of the $500,000 in grant funding sought is to implement a Board and Train program, in
which owners will have their dog(s) stay in a comfortable facility where they will be well fed and groomed and can
choose whether or not to also pay for training services during the dog’s boarding time. Another new service will be
the recording and distribution of a dog training DVD, each containing a series of cumulative lessons that can be
purchased from both the store and from websites such as Amazon.com. [YOUR COMPANY NAME] will also
produce and maintain a survey for clients to fill out, explaining their likes and dislikes regarding our service.
Employees of the company will also be subject to higher scrutiny in the form of knowledge tests.

We will increase our revenue both by more comprehensive advertising and via increased client referrals based on
the new facility we will purchase and the increased quality in our service.

1.2 Mission

Our mission is to improve and enhance pack leader-dog/pack relationships by educating our clients utilizing proven
skills and techniques. Combined with instruction and information on a variety of topics, we train dogs and their owners
to be become better citizens and a more cohesive family unit.

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1.3 Keys to Success

[YOUR COMPANY NAME]’s keys to success are exceptional customer satisfaction with process and results of the
training, a positive reputation in the community from our support of programs and initiatives that better the animal
community (primarily Dog RESCUE societies), and the convenience of behavior training services in-home or in our
facility through the Board and Train service.

2.0 Company Summary

[YOUR COMPANY NAME] is currently a home-based business operating in the [YOUR CITY] Area. We have been in
operation since August, 2007, and provide in-home dog training. We travel to our clients’ homes and offer a variety of
training programs designed to accommodate individual clients’ needs. These needs may include: behavioral,
obedience, aggressive issues, puppy issues, new dog acclimation, pack development, and canine good citizen
evaluation. Follow-ups are sometimes conducted in public places or dog parks to further develop obedience skills. All
business is conducted through a home office, relying strongly on phone consultation and web site point of contact.
Accounting and Payroll services are contracted.  

2.1 Company Ownership

[YOUR COMPANY NAME] is an S-corporation, privately run and owned entirely by [YOUR NAME].

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2.2 Company History

The Past Performance table shows A [YOUR COMPANY NAME]'s sales, assets, liabilities, and capital for the year
2008 and for 2009.

Table: Past Performance

Past Performance
2008 2009
Sales $58,547 $108,706
Gross Margin $58,547 $108,706
Gross Margin % 100.00% 100.00%
Operating Expenses $40,004 $115,255

Balance Sheet
2008 2009

Current Assets
Cash $12,890 $5,140
Other Current Assets $0 $1,774
Total Current Assets $12,890 $6,914

Long-term Assets
Long-term Assets $0 $0
Accumulated Depreciation $0 $0
Total Long-term Assets $0 $0

Total Assets $12,890 $6,914

Current Liabilities
Accounts Payable $6,914 $3,258
Current Borrowing $0 $0
Other Current Liabilities (interest free) $0 $0
Total Current Liabilities $6,914 $3,258

Long-term Liabilities $0 $0
Total Liabilities $6,914 $3,258

Paid-in Capital $100 $100

Retained Earnings ($12,667) $10,105
Earnings $18,543 ($6,549)
Total Capital $5,976 $3,656

Total Capital and Liabilities $12,890 $6,914

Other Inputs
Payment Days 30 30

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Chart: Past Performance

3.0 Products and Services

We work on pack leadership from the dog’s point of view.  Our first lesson is at least 3 hours long. In that time we
discuss a wide range of training and pet-care factors, from food to who goes through a door first.   We address any
and all behavioral issues, such as biting, house training, jumping, etc. at the first lesson and the formal obedience is
usually sit, down, recall, perimeter to the door, wait and heel.  Our heel is a behind-the-leg, subordinate position that
reinforces the client’s pack position.  
 
The lessons after that are determined by which package the client chooses.  Most of our clients take a 4 lesson
package, the 3 lessons after the first range from 1.5 hours to 2 hours long. Clients are given the skills to have their
dogs off leash by the time they complete the 4 lessons, and the rest is a matter of practice and applying what has
been taught.  

We work on an appointment basis.  We have scheduling available 7 days a week and include evenings to make it as
convenient for the client as possible. Each lesson can be done on a different day and time. The lessons are
completed within a 4 month time frame with unlimited follow up for as long as the client has the dog. These lessons
are conducted by one of the trainers on staff.

Future offerings are Board & Train services involving the Boarding of the dogs at the business site, with training
sessions twice daily. Dogs are trained in basic obedience, house manners, potty training, and any other specific
needs of the owner. The dog will board in 5x10 indoor/5x15 outdoor connected kennels. Training is conducted in
home setting on-site.

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4.0 Market Analysis Summary

The median resident age in the San Antonio Area is 31.7 years, but [YOUR COMPANY NAME]’s services are most
typically sought by those who are 40 years of age and older, as this demographic tends to be higher earning and, if
retired, has more time for leisure and pet-care. Approximately 115,000 residents in the San Antonio Area make
between $75.000 and $200,000 each year. A large number of these residents exist as families.

4.1 Target Market Segment Strategy

[YOUR COMPANY NAME] intends to isolate this higher-earning portion of the San Antonio Area by advertising in
niche magazines related to pet-care (such as Dog Fancy), advertisements in wealthier sections of the area, and
through a strong web presence. We also believe that our charity involvement, primarily working with Dog RESCUE
societies to save dogs from unfit homes and to then house them, also contributes to our presence within this
demographic.

4.2 Service Business Analysis

[YOUR COMPANY NAME] has several competitors:

[COMPETITOR NAME] – [COMPETITOR NAME] caters to a lower income market, many of its customers being
impulse purchasers. They have a well-established brand name and marketing strength but are not directly associated
with training.

[COMPETITOR NAME] – This is a service for in-home aversion methods. They provide free demos, which appeal to
skeptical clients. However, [YOUR COMPANY NAME], also provides demos and does not have the stigma of being a
franchise.

[COMPETITOR NAME] – [COMPETITOR NAME] services are well-established. Like [YOUR COMPANY NAME], he
gives clients the option of boarding; however, his methods are treat based, as opposed to a mixture of treats and
applied dog psychology.

4.2.1 Competition and Buying Patterns

Method is a major initial influence, and then convenience and service advantages follow. Price is usually a
consideration when potential clients’ comparison shops. Brands are not as important, but recognition is becoming
more noticeable with Ceasar branding.

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5.0 Web Plan Summary

[YOUR COMPANY NAME] plans to create a new website: www.abetterdogtrainingtexas.com to provide an Internet
presence that will better represent it through digital images and text and serve to more effectively market the
Company and expand its market.

The enhanced website will include:

• Pictures and video Statements/testimonials of satisfied customers

• Links to businesses who have given positive statements and referrals
• Banner ads
• Link for visitors to opt in to the Company’s email list.

5.1 Website Marketing Strategy

[YOUR COMPANY NAME] plans to use email marketing campaigns for their outreach to current and prospective
customers.  Technology is available that incorporates video with email and offers very powerful, robust and dynamic
features.  Another benefit is in communicating through the use of streaming video embedded within the email. 
Management believes that the use of this technology will give the Business a strong competitive edge and outreach to
the community. 

[YOUR COMPANY NAME] can live broadcast so owners can tune in any time to view their pet and/or the facility.  It is
as simple as hooking up a web cam to a laptop or desktop computer and pointing the web cam in the direction of
choice.  What a relief it will be for the owner to be able to check in on his/her dog the first few days or every day, and
even several times a day, while they are at work or have access to an online computer or web enhanced cell phone!

[YOUR COMPANY NAME] is planning to incorporate an email drip campaign with video into its marketing efforts. 
This technology will more effectively market to its customer and potential customer base.  It is cost effective
(averaging about $99 per month), especially when compared to the $1,000's spent on print advertising, mailing and
postage.  The built-in analytics provide immediate feedback as to the campaigns effectiveness and who actually
viewed the message.  Auto responders with a specific message can be utilized as an immediate follow-up tool. 
Please visit www.attainresponse.com for additional information.  

This new email marketing campaign technology will serve to position A Better Dog Training, Inc. to achieve and
sustain name recognition in front of their current market within the local community.   This type of marketing is cost
effective and efficient.  The first thing most of us do every day is check our email in-box. 

Currently, management is unaware of any of its competitors incorporating the use of this technology within their
operation. 

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6.0 Strategy and Implementation Summary

The first order of business for [YOUR COMPANY NAME] in the course of the next 3 years will be to purchase the
property necessary for our Board and Train facility. That property will cost $350,000 and must then undergo building
modifications to be a suitable Board and Train facility. Those modifications include fencing and the installation an
energy efficient kennel building. The new services to be offered by [YOUR COMPANY NAME] are contingent upon
the purchase of this new property, and are thusly contingent upon the receipt of the $500,000 in grant funding sought.

6.1 SWOT Analysis

S personal
personal service,
service, consistent
consistent results
results

W growth
growth restraints
restraints

O new
new services,
services, increased
increased notoriety
notoriety

T litigation
6.1.1 Strengths
litigation

Our strengths lie in our personalized customer service and consistent results through a psychological method of pet
training that is not based only on incentives or treats but which does use them as rewards for good behavior. 

6.1.2 Weaknesses

The Weaknesses of [YOUR COMPANY NAME] are organizational structure, lack of brand recognition, and growth
restraints due to not having a proper facility in which to board and train dogs.

6.1.3 Opportunities

With this business plan and the funding it utilizes, we are looking forward to increased consumer awareness as well
as to expand our revenue by expanding the depth of our service.

6.1.4 Threats

The major threat to [YOUR COMPANY NAME] is possible litigation for an animal related situation. Given our
reputation within the animal lovers’ community, this is unlikely.

6.2 Competitive Edge

[YOUR COMPANY NAME]’s competitive edge is our method of training, which is heavily based on principles of dog
psychology and applied to behavioral modification.

6.4 Sales Strategy

We will capture clients with our offering of convenience and the best service possible. In the past, we have found
success marketing through vets, pet stores, groomers, and other pet professionals. Clients are heavily based upon
referrals. Groomers particularly like to recommend our services. A groomer can groom two good dogs in the time it
takes to groom one bad dog. Veterinarians recommend us because when a dog is trained, their exams are smoother,
calmer, and more complete.

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6.4.1 Sales Forecast

The sales forecast projects sales for the following 3 years. The sales are represented by the number of units sold, each
unit representing a service. The most significant increase in revenue is between the first and second year of the plan.
Cost of sales is also represented in the services to which a cost of sales applies.

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Table: Sales Forecast

Sales Forecast
2010 2011 2012
Unit Sales
1 Lesson Behavior Modification and Training 72 95 100
2 Lessons Obedience and Behavior 48 60 70
4 Lessons Obedience and Behavior 129 140 160
4 Lessons Human Aggressive 50 88 95
Boarding (per day) 84 75 85
Board and Training (per week) 75 93 100
DVD Video Lessons 330 600 800
Total Unit Sales 788 1,151 1,410

Unit Prices 2010 2011 2012

1 Lesson Behavior Modification and Training $375.00 $375.00 $375.00
2 Lessons Obedience and Behavior $695.00 $695.00 $695.00
4 Lessons Obedience and Behavior $795.00 $795.00 $795.00
4 Lessons Human Aggressive $1,295.00 $1,295.00 $1,295.00
Boarding (per day) $30.00 $30.00 $30.00
Board and Training (per week) $400.00 $400.00 $400.00
DVD Video Lessons $20.00 $20.00 $20.00

Sales
1 Lesson Behavior Modification and Training $27,000 $35,625 $37,500
2 Lessons Obedience and Behavior $33,360 $41,700 $48,650
4 Lessons Obedience and Behavior $102,555 $111,300 $127,200
4 Lessons Human Aggressive $64,750 $113,960 $123,025
Boarding (per day) $2,520 $2,250 $2,550
Board and Training (per week) $30,000 $37,200 $40,000
DVD Video Lessons $6,600 $12,000 $16,000
Total Sales $266,785 $354,035 $394,925

Direct Unit Costs 2010 2011 2012

1 Lesson Behavior Modification and Training $0.00 $0.00 $0.00
2 Lessons Obedience and Behavior $0.00 $0.00 $0.00
4 Lessons Obedience and Behavior $0.00 $0.00 $0.00
4 Lessons Human Aggressive $0.00 $0.00 $0.00
Boarding (per day) $4.50 $4.50 $4.50
Board and Training (per week) $60.00 $60.00 $60.00
DVD Video Lessons $2.00 $2.00 $2.00

Direct Cost of Sales

1 Lesson Behavior Modification and Training $0 $0 $0
2 Lessons Obedience and Behavior $0 $0 $0
4 Lessons Obedience and Behavior $0 $0 $0
4 Lessons Human Aggressive $0 $0 $0
Boarding (per day) $378 $338 $383
Board and Training (per week) $4,500 $5,580 $6,000
DVD Video Lessons $660 $1,200 $1,600
Subtotal Direct Cost of Sales $5,538 $7,118 $7,983

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 [YOUR COMPANY NAME]
Chart: Sales Monthly

Chart: Sales by Year

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6.5 Milestones

The milestones for [YOUR COMPANY NAME] are equivocal to our objectives:

 implement board and train service

 create video
 customer satisfaction questionnaire
 employee knowledge test

Table: Milestones

Milestones

Milestone Start Date End Date Budget

Board and Train 5/22/2010 6/21/2010 $400,000
Create Video 5/22/2010 6/21/2010 undefined
Satisfaction Questionnaire 5/22/2010 6/21/2010 undefined
Employee Knowledge Test 5/22/2010 6/21/2010 undefined
5/22/2010 6/21/2010
Totals $400,000

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7.0 Management Summary

Company managed by owner [YOUR NAME]. (founder)
 
Our team consists of 6 employees (5 trainers and 1 office assistant). We may require additional assistance in the
future, but we are currently sufficient.

7.1 Personnel Plan

There are 6 personnel currently employed, 1 of which is an office assistant.

 
The personnel table reflects the costs associated with [YOUR COMPANY NAME] 's employees, which factors in 3%
raises each year for employees.

Table: Personnel

Personnel Plan
2010 2011 2012
Office Assistant $2,700 $5,562 $5,729
Trainers $43,200 $74,160 $76,385
Total People 4 6 6

Total Payroll $45,900 $79,722 $82,114

8.0 Financial Plan

The growth of [YOUR COMPANY NAME] over the next 3 years is shown to be moderate in pace, which will make it
possible to keep up with that growth as opposed to becoming overwhelmed by the demands of sudden, impetuous
growth. Cash balances and profits will increase very substantial between the 1 st and 2nd years, and net worth is
expected to accumulate gradually but significantly. This growth will be possible upon acquisition of the $500,000 in
grant funds sought by the company. These funds will be spend as follows:

Purchase of property - $350,000

Purchase of “green” kennel building - $100,000

Fencing and Misc. - $50,000

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8.2 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 35

Monthly Revenue Break-even $11,749

Assumptions:
Average Per-Unit Revenue $338.56
Average Per-Unit Variable Cost $7.03
Estimated Monthly Fixed Cost $11,505

Chart: Break-even Analysis

INCLUDEPICTURE "ooxWord://word/media/image7.emf" \* MERGEFORMATINET

Break-even Analysis
$12,000

$9,000

$6,000

$3,000

$0

($3,000)

($6,000)

($9,000)

($12,000)

0 8 16 24 32 40 48 56 64 72 80 88

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8.3 Projected Profit and Loss

The Profit and Loss table shows a high sales growth associated with a high net profit for the following 3 years. The
gross margin percentage for each year is roughly 97% after an approximate 3% direct cost of sales. As is shown, the
company’s largest expense is investing in its staff of dog trainers.

Table: Profit and Loss

Pro Forma Profit and Loss

2010 2011 2012
Sales $266,785 $354,035 $394,925
Direct Cost of Sales $5,538 $7,118 $7,983
Other Costs of Sales $0 $0 $0
Total Cost of Sales $5,538 $7,118 $7,983

Gross Margin $261,247 $346,918 $386,943

Gross Margin % 97.92% 97.99% 97.98%

Expenses
Payroll $45,900 $79,722 $82,114
Marketing/Promotion $8,738 $12,000 $17,000
Depreciation $24,000 $24,000 $24,000
Accounting Services $3,798 $4,000 $4,000
Bank Charges $2,532 $3,000 $3,500
Client Refunds $249 $300 $300
Contract Labor $28,587 $10,000 $5,000
Dues and Subscriptions $300 $500 $500
Insurance - Business Liability $2,520 $3,000 $3,000
Office Expense $300 $500 $500
Printing $240 $500 $750
Rent Expense $11,040 $11,040 $11,040
Security $252 $750 $750
Supplies $3,600 $4,000 $4,500
Telephone $3,000 $3,300 $3,800
Utilities $3,000 $4,000 $4,500

Total Operating Expenses $138,056 $160,612 $165,254

Profit Before Interest and Taxes $123,191 $186,306 $221,689

EBITDA $147,191 $210,306 $245,689
Interest Expense $0 $0 $0
Taxes Incurred $36,957 $55,892 $66,507

Net Profit $86,234 $130,414 $155,182

Net Profit/Sales 32.32% 36.84% 39.29%

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Chart: Profit Monthly

Chart: Profit Yearly

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Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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8.4 Projected Cash Flow

The Monthly Cash Flow table shows a snowballing increase in cash balances over the following 3 years, and these
projections show no risk of a negative cash balance. The most significant increase in sales revenue is between the
first and second year of the plan while the least significant increase in expenses is between the second and third year.
$400,000 will be spent in the plan’s first year on new assets, primarily including a facility for the Board and Train
service, an eco-friendly kenneling unit. These factors amount to the company’s cash balance increasing by more than
200% over the course of the next three years.

Table: Cash Flow

Pro Forma Cash Flow

2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $266,785 $354,035 $394,925
Subtotal Cash from Operations $266,785 $354,035 $394,925

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
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 $500,000 $0 $0
Subtotal Cash Received $766,785 $354,035 $394,925

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $45,900 $79,722 $82,114
Bill Payments $105,535 $118,418 $132,501
Subtotal Spent on Operations $151,435 $198,140 $214,615

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $400,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $551,435 $198,140 $214,615

Net Cash Flow $215,350 $155,895 $180,310

Cash Balance $220,490 $376,384 $556,695

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 Jan
[YOUR COMPANY NAME]
Chart: Cash

Cash
$240,000

$210,000

$180,000

$150,000
Net Cash Flow
$120,000 Cash Balance

$90,000

$60,000

$30,000

$0

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8.5 Projected Balance Sheet

Net worth will increase slowly for the first year and then at a faster pace for years 2 and 3 of this business plan.
Earnings will only be negative for the plan's first 4 months. Earnings then turn positive and increase rapidly. The
developments of assets, liabilities, and capital are all projected in the Balance Sheet table.

Table: Balance Sheet

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $220,490 $376,384 $556,695
Other Current Assets $1,774 $1,774 $1,774
Total Current Assets $222,264 $378,158 $558,469

Long-term Assets
Long-term Assets $400,000 $400,000 $400,000
Accumulated Depreciation $24,000 $48,000 $72,000
Total Long-term Assets $376,000 $352,000 $328,000
Total Assets $598,264 $730,158 $886,469

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $8,374 $9,855 $10,983
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $8,374 $9,855 $10,983

Long-term Liabilities $0 $0 $0
Total Liabilities $8,374 $9,855 $10,983

Paid-in Capital $500,100 $500,100 $500,100

Retained Earnings $3,556 $89,790 $220,204
Earnings $86,234 $130,414 $155,182
Total Capital $589,890 $720,304 $875,486
Total Liabilities and Capital $598,264 $730,158 $886,469

Net Worth $589,890 $720,304 $875,486

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8.6 Business Ratios

The Ratio Analysis table is a collection of standard business ratios as they pertain to [YOUR COMPANY NAME].

Table: Ratios
Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 145.42% 32.70% 11.55% 9.32%

Percent of Total Assets

Other Current Assets 0.30% 0.24% 0.20% 38.63%
Total Current Assets 37.15% 51.79% 63.00% 47.47%
Long-term Assets 62.85% 48.21% 37.00% 52.53%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 1.40% 1.35% 1.24% 19.01%

Long-term Liabilities 0.00% 0.00% 0.00% 79.98%
Total Liabilities 1.40% 1.35% 1.24% 98.99%
Net Worth 98.60% 98.65% 98.76% 1.01%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 97.92% 97.99% 97.98% 71.78%
Selling, General & Administrative Expenses 65.60% 61.15% 58.68% 12.73%
Advertising Expenses 3.28% 3.39% 4.30% 0.36%
Profit Before Interest and Taxes 46.18% 52.62% 56.13% 5.06%

Main Ratios
Current 26.54 38.37 50.85 1.46
Quick 26.54 38.37 50.85 1.17
Total Debt to Total Assets 1.40% 1.35% 1.24% 98.99%
Pre-tax Return on Net Worth 20.88% 25.86% 25.32% 936.58%
Pre-tax Return on Assets 20.59% 25.52% 25.01% 9.43%

Additional Ratios 2010 2011 2012

Net Profit Margin 32.32% 36.84% 39.29% n.a
Return on Equity 14.62% 18.11% 17.73% n.a

Activity Ratios
Accounts Payable Turnover 13.21 12.17 12.17 n.a
Payment Days 28 28 28 n.a
Total Asset Turnover 0.45 0.48 0.45 n.a

Debt Ratios
Debt to Net Worth 0.01 0.01 0.01 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $213,890 $368,304 $547,486 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 2.24 2.06 2.24 n.a
Current Debt/Total Assets 1% 1% 1% n.a

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 [YOUR COMPANY NAME]
Acid Test 26.54 38.37 50.85 n.a
Sales/Net Worth 0.45 0.49 0.45 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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 Appendix

Table: Sales Forecast

Sales
Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unit Sales
1 Lesson 3 3 4 5 6 7 7 8 8 8 7 6
Behavior
Modification
and
Training
2 Lessons 3 4 4 3 3 3 5 5 6 4 4 4
Obedience
and
Behavior
4 Lessons 8 8 8 9 9 9 11 11 13 13 15 15
Obedience
and
Behavior
4 Lessons 3 3 4 4 5 5 5 5 5 4 4 3
Human
Aggressive
Boarding 3 3 4 4 4 5 6 6 7 8 16 18
(per day)
Board and 3 4 5 6 6 6 7 8 9 9 7 5
Training
(per week)
DVD Video 16 17 18 19 20 21 22 27 30 40 40 60
Lessons
Total Unit 39 42 47 50 53 56 63 70 78 86 93 111
Sales

Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Lesson $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00 $375.00
Behavior
Modification
and
Training
2 Lessons $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00 $695.00

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 Appendix
Obedience
and
Behavior
4 Lessons $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00 $795.00
Obedience
and
Behavior
4 Lessons $1,295.0 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00 $1,295.00
Human 0
Aggressive
Boarding $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
(per day)
Board and $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00 $400.00
Training
(per week)
DVD Video $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Lessons

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Sales Forecast Continued…

Sales
1 Lesson Behavior $1,125 $1,125 $1,500 $1,875 $2,250 $2,625 $2,625 $3,000 $3,000 $3,000 $2,625 $2,250
Modification and
Training
2 Lessons Obedience $2,085 $2,780 $2,780 $2,085 $2,085 $2,085 $3,475 $3,475 $4,170 $2,780 $2,780 $2,780
and Behavior
4 Lessons Obedience $6,360 $6,360 $6,360 $7,155 $7,155 $7,155 $8,745 $8,745 $10,335 $10,335 $11,925 $11,925
and Behavior
4 Lessons Human $3,885 $3,885 $5,180 $5,180 $6,475 $6,475 $6,475 $6,475 $6,475 $5,180 $5,180 $3,885
Aggressive
Boarding (per day) $90 $90 $120 $120 $120 $150 $180 $180 $210 $240 $480 $540
Board and Training $1,200 $1,600 $2,000 $2,400 $2,400 $2,400 $2,800 $3,200 $3,600 $3,600 $2,800 $2,000
(per week)
DVD Video Lessons $320 $340 $360 $380 $400 $420 $440 $540 $600 $800 $800 $1,200
Total Sales $15,065 $16,180 $18,300 $19,195 $20,885 $21,310 $24,740 $25,615 $28,390 $25,935 $26,590 $24,580

Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Lesson Behavior 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Modification and
Training
2 Lessons Obedience 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
and Behavior
4 Lessons Obedience 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
and Behavior
4 Lessons Human 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Aggressive
Boarding (per day) 15.00% $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Board and Training 15.00% $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00
(per week)
DVD Video Lessons 10.00% $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00

Direct Cost of Sales

1 Lesson Behavior $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Modification and
Training
2 Lessons Obedience $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
and Behavior
4 Lessons Obedience $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 Appendix
and Behavior
4 Lessons Human $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Aggressive
Boarding (per day) $14 $14 $18 $18 $18 $23 $27 $27 $32 $36 $72 $81
Board and Training $180 $240 $300 $360 $360 $360 $420 $480 $540 $540 $420 $300
(per week)
DVD Video Lessons $32 $34 $36 $38 $40 $42 $44 $54 $60 $80 $80 $120
Subtotal Direct Cost of $226 $288 $354 $416 $418 $425 $491 $561 $632 $656 $572 $501
Sales

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 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Office Assistant $0 $0 $0 $0 $0 $0 $450 $450 $450 $450 $450 $450
Trainers $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Total People 3 3 3 3 3 3 4 4 4 4 4 4

Total Payroll $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $4,050 $4,050 $4,050 $4,050 $4,050 $4,050

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 Appendix

Table: Profit and Loss

Pro Forma Profit

and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $15,065 $16,180 $18,300 $19,195 $20,885 $21,310 $24,740 $25,615 $28,390 $25,935 $26,590 $24,580
Direct Cost of Sales $226 $288 $354 $416 $418 $425 $491 $561 $632 $656 $572 $501
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Total Cost of Sales $226 $288 $354 $416 $418 $425 $491 $561 $632 $656 $572 $501

Gross Margin $14,840 $15,893 $17,946 $18,779 $20,467 $20,886 $24,249 $25,054 $27,759 $25,279 $26,018 $24,079
Gross Margin % 98.50% 98.22% 98.07% 97.83% 98.00% 98.01% 98.02% 97.81% 97.78% 97.47% 97.85% 97.96%

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 Appendix
Profit and Loss Continued…

Expenses
Payroll $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $4,050 $4,050 $4,050 $4,050 $4,050 $4,050
Marketing/Promotion $1,000 $940 $884 $831 $781 $734 $690 $649 $610 $573 $539 $507
Depreciation $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Accounting Services $300 $303 $306 $309 $312 $315 $318 $321 $324 $327 $330 $333
Bank Charges $200 $202 $204 $206 $208 $210 $212 $214 $216 $218 $220 $222
Client Refunds $30 $28 $26 $24 $22 $20 $19 $18 $17 $16 $15 $14
Contract Labor $5,000 $4,250 $3,612 $3,070 $2,610 $2,218 $1,885 $1,602 $1,362 $1,158 $984 $836
Dues and $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Subscriptions
Insurance - $210 $210 $210 $210 $210 $210 $210 $210 $210 $210 $210 $210
Business Liability
Office Expense $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Printing $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20
Rent Expense $920 $920 $920 $920 $920 $920 $920 $920 $920 $920 $920 $920
Security $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21
Supplies $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Telephone $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Total Operating $14,151 $13,344 $12,653 $12,061 $11,554 $11,118 $11,195 $10,875 $10,600 $10,363 $10,159 $9,983
Expenses

Profit Before Interest $689 $2,549 $5,293 $6,718 $8,913 $9,768 $13,054 $14,179 $17,159 $14,916 $15,859 $14,096
and Taxes
EBITDA $2,689 $4,549 $7,293 $8,718 $10,913 $11,768 $15,054 $16,179 $19,159 $16,916 $17,859 $16,096
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $207 $765 $1,588 $2,015 $2,674 $2,930 $3,916 $4,254 $5,148 $4,475 $4,758 $4,229

Net Profit $482 $1,784 $3,705 $4,703 $6,239 $6,837 $9,138 $9,925 $12,011 $10,441 $11,101 $9,867
Net Profit/Sales 3.20% 11.03% 20.25% 24.50% 29.87% 32.08% 36.94% 38.75% 42.31% 40.26% 41.75% 40.14%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received

Cash from Operations

Cash Sales $15,065 $16,180 $18,300 $19,195 $20,885 $21,310 $24,740 $25,615 $28,390 $25,935 $26,590 $24,580
Subtotal Cash from $15,065 $16,180 $18,300 $19,195 $20,885 $21,310 $24,740 $25,615 $28,390 $25,935 $26,590 $24,580
Operations

Additional Cash
Received
Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
New Current $0 $0 $0 $37,400 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment $0 $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0 $0
Received
Subtotal Cash $15,065 $16,180 $18,300 $56,595 $20,885 $21,310 $24,740 $525,615 $28,390 $25,935 $26,590 $24,580
Received

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 Appendix
Cash Flow Continued…
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from
Operations
Cash Spending $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $4,050 $4,050 $4,050 $4,050 $4,050 $4,050
Bill Payments $3,595 $10,114 $10,048 $10,419 $10,626 $10,884 $10,778 $11,701 $11,899 $12,745 $11,718 $11,687
Subtotal Spent on $7,195 $13,714 $13,648 $14,019 $14,226 $14,484 $14,828 $15,751 $15,949 $16,795 $15,768 $15,737
Operations

Additional Cash
Spent
Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current Borrowing
Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities Principal
Repayment
Purchase Other $0 $0 $0 $0 $0 $0 $0 $400,000 $0 $0 $0 $0
Current Assets
Purchase Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $7,195 $13,714 $13,648 $14,019 $14,226 $14,484 $14,828 $415,751 $15,949 $16,795 $15,768 $15,737
Spent

Net Cash Flow $7,870 $2,466 $4,652 $42,576 $6,659 $6,826 $9,912 $109,864 $12,441 $9,140 $10,822 $8,843
Cash Balance $13,010 $15,476 $20,128 $62,705 $69,363 $76,190 $86,102 $195,965 $208,406 $217,547 $228,368 $237,211

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 Appendix

Table: Balance Sheet

Pro Forma
Balance
Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

Current
Assets
Cash $5,140 $13,010 $15,476 $20,128 $62,705 $69,363 $76,190 $86,102 $195,965 $208,406 $217,547 $228,368 $237,211
Other $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774 $1,774
Current
Assets
Total Current $6,914 $14,784 $17,250 $21,902 $64,479 $71,137 $77,964 $87,876 $197,739 $210,180 $219,321 $230,142 $238,985
Assets

Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $400,000 $400,000 $400,000 $400,000 $400,000
Assets
Accumulated $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000
Depreciation
Total Long- $0 ($2,000) ($4,000) ($6,000) ($8,000) ($10,000) ($12,000) ($14,000) $384,000 $382,000 $380,000 $378,000 $376,000
term Assets
Total Assets $6,914 $12,784 $13,250 $15,902 $56,479 $61,137 $65,964 $73,876 $581,739 $592,180 $599,321 $608,142 $614,985

Liabilities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
and Capital

Current
Liabilities
Accounts $3,258 $9,779 $9,701 $10,065 $10,263 $10,525 $10,388 $11,306 $11,473 $12,354 $11,328 $11,329 $10,379
Payable
Current $0 $0 $0 $0 $37,400 $37,400 $37,400 $37,400 $37,400 $37,400 $37,400 $37,400 $37,400
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Page 10
 Appendix
Liabilities
Subtotal $3,258 $9,779 $9,701 $10,065 $47,663 $47,925 $47,788 $48,706 $48,873 $49,754 $48,728 $48,729 $47,779
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $3,258 $9,779 $9,701 $10,065 $47,663 $47,925 $47,788 $48,706 $48,873 $49,754 $48,728 $48,729 $47,779
Liabilities

Paid-in $100 $100 $100 $100 $100 $100 $100 $100 $500,100 $500,100 $500,100 $500,100 $500,100
Capital
Retained ($14,987) $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556 $3,556
Earnings
Earnings $18,543 ($652) ($107) $2,182 $5,159 $9,556 $14,519 $21,514 $29,210 $38,770 $46,937 $55,757 $63,550
Total Capital $3,656 $3,004 $3,549 $5,838 $8,815 $13,212 $18,175 $25,170 $532,866 $542,426 $550,593 $559,413 $567,206
Total $6,914 $12,784 $13,250 $15,902 $56,479 $61,137 $65,964 $73,876 $581,739 $592,180 $599,321 $608,142 $614,985
Liabilities
and Capital

Net Worth $3,656 $3,004 $3,549 $5,838 $8,815 $13,212 $18,175 $25,170 $532,866 $542,426 $550,593 $559,413 $567,206

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