BUSINESS PLAN

[YOUR NAME]
[YOUR TITLE]

Phone: [YOUR PHONE NUMBER]

Email: [YOUREMAIL@YOURCOMPANY.COM]
[YOUR WEBSITE ADDRESS]
[MONTH] [YEAR] // Confidential Information
 Table of Contents

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

Chart: Highlights....................................................................................................................2
1.1 Objectives...........................................................................................................................2
1.2 Mission................................................................................................................................2
1.3 Keys to Success.................................................................................................................2
2.0 Company Summary................................................................................................................3
2.1 Company Ownership..........................................................................................................3
2.2 Company History................................................................................................................3
Table: Past Performance.......................................................................................................3
Chart: Past Performance.......................................................................................................4
3.0 Services..................................................................................................................................4
4.0 Market Analysis Summary......................................................................................................5
4.1 Market Segmentation..........................................................................................................5
Table: Market Analysis..........................................................................................................5
Chart: Market Analysis (Pie)..................................................................................................6
4.2 Target Market Segment Strategy........................................................................................6
4.3 Service Business Analysis..................................................................................................6
4.3.1 Competition and Buying Patterns.................................................................................6
5.0 Web Plan Summary................................................................................................................6
5.1 Website Marketing Strategy................................................................................................7
5.2 Development Requirements...............................................................................................7
6.0 Strategy and Implementation Summary.................................................................................7
6.1 SWOT Analysis...................................................................................................................8
6.1.1 Strengths......................................................................................................................8
6.1.2 Weaknesses.................................................................................................................8
6.1.3 Opportunities................................................................................................................8
6.1.4 Threats.........................................................................................................................8
6.2 Competitive Edge................................................................................................................8
6.3 Marketing Strategy..............................................................................................................9
6.4 Sales Strategy.....................................................................................................................9
6.4.1 Sales Forecast.............................................................................................................9
Table: Sales Forecast......................................................................................................10
Chart: Sales Monthly.......................................................................................................10
Chart: Sales by Year........................................................................................................11
6.5 Milestones.........................................................................................................................11
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 Table of Contents

Table: Milestones................................................................................................................11
Chart: Milestones................................................................................................................12
7.0 Management Summary........................................................................................................12
7.1 Personnel Plan..................................................................................................................12
Table: Personnel.................................................................................................................12
8.0 Financial Plan.......................................................................................................................13
8.1 Important Assumptions.....................................................................................................13
8.2 Break-even Analysis.........................................................................................................13
Table: Break-even Analysis................................................................................................13
Chart: Break-even Analysis.................................................................................................14
8.3 Projected Profit and Loss..................................................................................................14
Table: Profit and Loss.........................................................................................................15
Chart: Profit Monthly............................................................................................................16
Chart: Profit Yearly..............................................................................................................16
Chart: Gross Margin Monthly..............................................................................................17
Chart: Gross Margin Yearly.................................................................................................17
8.4 Projected Cash Flow.........................................................................................................17
Table: Cash Flow................................................................................................................18
Chart: Cash.........................................................................................................................19
8.5 Projected Balance Sheet..................................................................................................19
Table: Balance Sheet..........................................................................................................19
8.6 Business Ratios................................................................................................................20
Table: Ratios.......................................................................................................................20
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Profit and Loss...................................................................................................................3
Table: Cash Flow..........................................................................................................................4
Table: Balance Sheet...................................................................................................................5

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 YOUR COMPANY NAME

1.0 Executive Summary

[YOUR COMPANY NAME]

[YOUR NAME]
INSERT ADDRESS
[YOUR PHONE NUMBER]
[YOUREMAIL@YOURCOMPANY.COM]

 Introduction

[YOUR COMPANY NAME] manufactures and sells custom cabinetry required for homebuilders, residential
remodels, kitchen re-facing, home entertainment centers, offices, wine cellars and storage options within a
thirty mile radius of Concord, [YOUR STATE/PROVINCE] . 

 The Company

[YOUR COMPANY NAME] is a Sole Proprietorship with 100% ownership held by [YOUR NAME].

 Our Services

[YOUR COMPANY NAME] manufactures and sells custom cabinetry.

 Financial Considerations

The current financial plan for [YOUR COMPANY NAME] is to secure funding in the amount of $226,000. The
funding will be used to purchase woodworking equipment, a used company vehicle, fund the installation of
solar panels on the company workshop, provide salaries for the addition of new employees, and expand
company advertising.

The major focus for funding is as follows:

  To fund an environmental friendly custom cabinetry company with a focus on environmental
responsibility and recyclable materials.

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Chart: Highlights

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Highlights

$500,000

$450,000

$400,000

$350,000
Sales
$300,000
Gross Margin
$250,000
Net Profit
$200,000

$150,000

$100,000

$50,000

$0
2011 2012 2013

1.1 Objectives

The objectives of [YOUR COMPANY NAME] are to:

 Excel at producing excellence in innovative cabinetry production and design.

 Exceed and expand its prior year sales figures by 30%.
 Provide service that exceeds customer expectations. 
 Expand company visibility utilizing advanced forms of advertising. 

1.2 Mission

The mission of [YOUR COMPANY NAME] is to offer excellence in custom cabinetry distinguishing itself as a
preferred leader within the industry with an established history of exceptional products, and service  with a
host of gratified patrons.

1.3 Keys to Success

The keys to the success of [YOUR COMPANY NAME] are:

 Its ability to offer the expertise and service derived from more than thirty years of industry experience. 
 The established industry reputation of a Diamond Certified custom cabinet designer and manufacturer. 
 Exceptional quality utilizing domestic materials.
 Innovative designs and solutions to augment space limitations.
 Resourceful ideas to maximize existing applications and recycle materials. 

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2.0 Company Summary

[YOUR COMPANY NAME] is located in [YOUR CITY], [YOUR STATE/PROVINCE] which is in Contra Costa
County located just east of the city of Oakland and is home to many affluent suburban professionals who
commute to downtown Oakland, San Francisco and Walnut Creek. The company has been in business for
more than 27 years and is under the direction of Owner and General Contractor INSERT NAME, who has
more than 30 years of cabinetry and small business experience.
 
[YOUR COMPANY NAME] designs and manufactures custom cabinet products for kitchens, bathrooms,
entertainment centers, office workspaces, custom wine cellars, general home storage units, remodeling and
re-facing projects.

2.1 Company Ownership

[YOUR COMPANY NAME] is privately owned exclusively by General Contractor and sole proprietor [YOUR
NAME]

2.2 Company History

As a result of the current economic climate, sales for [YOUR COMPANY NAME] have declined from that of
2007 which totaled $697,410. While the ascension back to a healthy gross profit is slow, [YOUR COMPANY
NAME] remains eminent within the industry and is utilizing this period to take steps to strengthen the products
and services provided in order to emerge as a solid competitor when the Nation’s economy stabilizes.

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Table: Past Performance

Past Performance
2008 2009 2010
Sales $487,053 $369,453 $387,926
Gross Margin $269,731 $207,148 $213,362
Gross Margin % 55.38% 56.07% 55.00%
Operating Expenses $151,757 $148,384 $152,836

Balance Sheet
2008 2009 2010

Current Assets
Cash $52,000 $22,640 $42,660
Other Current Assets $0 $0 $0
Total Current Assets $52,000 $22,640 $42,660

Long-term Assets
Long-term Assets $6,250 $6,250 $6,250
Accumulated Depreciation $3,250 $3,413 $3,576
Total Long-term Assets $3,000 $2,837 $2,674

Total Assets $55,000 $25,477 $45,334

Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $350,000 $350,000 $350,000

Retained Earnings ($412,974) ($383,287) ($365,193)
Earnings $117,974 $58,764 $60,527
Total Capital $55,000 $25,477 $45,334

Total Capital and Liabilities $55,000 $25,477 $45,334

Other Inputs
Payment Days 0 0 0

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Chart: Past Performance

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Past Performance

$500,000

$450,000

$400,000

$350,000
Sales
$300,000
Gross
$250,000
Net
$200,000

$150,000

$100,000

$50,000

$0
2008 2009 2010

3.0 Services

 
[YOUR COMPANY NAME] offers unrivalled quality in cabinetry with innovative and resourceful
designs specifically suited to fulfill customer needs and maintain decades of usefulness. By listening, [YOUR
COMPANY NAME] ascertains customer needs and crafts a product that is stylish and functional that exceeds
customer expectations.

Owner, [YOUR NAME], meets with each client in their home, assesses client needs and offers solutions and
options by displaying a portfolio of previous products and sample materials with a written estimate of the
service to be provided.

Careful communication and follow through ensure that customer needs are met and designs are created
within budget and timely.   
 

4.0 Market Analysis Summary

The U.S. cabinetwork and countertop manufacturing industry is a $15 billion industry and according to Kitchen
Cabinet Industry Trends and the 2008 Hardwood Manufacturers Association National Conference and Expo
long-term industry fundamentals remain in place with the following demand drivers: 

• Remodeling

• New household formation

• Expanded use of cabinetry in other areas of the home 

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Failure to supply a certified product will likely result in lost market share with “Green” products gaining
momentum. According to the Hardwood Manufacturers Association National Conference and Expo, higher-
end cabinet manufacturing will remain in the U.S

4.1 Market Segmentation

[YOUR COMPANY NAME] will focus on the following areas which are in close geographic proximity to [YOUR
CITY] , [YOUR STATE/PROVINCE] .
 
[YOUR CITY] - The population was 17,599 at the 2000 census. The town is located just east of the city
of Oakland

Concord, [YOUR STATE/PROVINCE] -As of the census of 2000, there were 121,780 people, 44,020
households, and 30,329 families residing in the city.

San Francisco - The [YOUR STATE/PROVINCE] Department of Finance estimated the population of San
Francisco at 856,095, as of January 1, 2010

Oakland - Oakland is the 41st-largest city in the US with a population of 446,901.

Walnut Creek - The city had a total population of 65,384 as of January 2008 according to the [YOUR
STATE/PROVINCE] Department of Finance.

Berkeley - As of the census of 2000, there were 102,743 people, 44,955 households, and 18,656 families
residing in the city.
 

Table: Market Analysis

Market Analysis
2011 2012 2013 2014 2015
Potential Customers Growth CAGR
[YOUR CITY] 3% 17,599 18,127 18,671 19,231 19,808 3.00%
Berkeley 3% 102,743 105,825 109,000 112,270 115,638 3.00%
Oakland 3% 446,901 460,308 474,117 488,341 502,991 3.00%
Walnut Creek 3% 65,384 67,346 69,366 71,447 73,590 3.00%
San Francisco 3% 856,095 881,778 908,231 935,478 963,542 3.00%
Concord 3% 121,780 125,433 129,196 133,072 137,064 3.00%
Total 3.00% 1,610,502 1,658,817 1,708,581 1,759,839 1,812,633 3.00%

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Chart: Market Analysis (Pie)

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Market Analysis (Pie)

Orinda

Berkeley

Oakland

Walnut Creek

San Francisco

Concord

4.2 Target Market Segment Strategy

[YOUR COMPANY NAME] focuses on homeowners that are geographically in close proximity to the company
workshop in [YOUR CITY] , [YOUR STATE/PROVINCE] specifically within an approximate 30 mile radius.

4.3 Service Business Analysis

The custom cabinetry industry provides custom woodwork designed to specifically accommodate a
customer’s space, storage and functionality. There are numerous products on the market designed to fulfill
these requirements and the choice becomes one of quality, economic feasibility and design. Modular
components are available to piece together to satisfy a space and re-facing options are available to update
existing cabinetry. Inferior materials provide inexpensive options for cabinetry however the long term effects
of inferior products, quality and the durability and design need to be considered when investing in cabinetry
that typically provides years of use and functionality

4.3.1 Competition and Buying Patterns

The home improvement industry provides a source of competition with its readily available modular cabinetry
as well as Sears which heavily markets laminate re-facing products. Another competitor is the less costly
cabinets produced in other countries of questionable quality and substandard materials prohibited for use in
cabinetry where they are produced.

[YOUR COMPANY NAME] utilizes only the finest domestic materials in the production of its custom cabinetry
designed to provide centuries of customer enjoyment.

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 YOUR COMPANY NAME

5.0 Web Plan Summary

Research indicates that an easy-to-use website significantly increases sales.  A sophisticated website is vital
to our marketing strategy to attract new customers and retain existing ones. The website must be visibly
appealing yet simple and organized, encouraging sales.  The site must be organized in such a way
that facilitates browsing and the ability of potential customers to locate relevant information, illustrations and
descriptions.  The design of the Company's website will encourage sales if it is efficient and easy to use and
provides the customer with the ability to make online appointments and research company services.  An easy
to use, simple website is of the utmost importance in securing sales as research indicates that many
websites lose customers without securing sales because the site is confusing and not easily navigated
leaving customers aimlessly migrating through a site and leaving in frustration.  

The [YOUR COMPANY NAME] website will be enhanced in such a way as to allow it to be easily
updated and maintained by management to maximize efficiency in detailing product services and pricing
information.  The company website will be updated to maximize the ease of customer use and fully detail
company services and established reputation as a result of direct customer response.

5.1 Website Marketing Strategy

[YOUR COMPANY NAME] will focus on utilizing modern forms of internet and social media advertising to
create company visibility, detail services provided with associated fee information when possible and promote
customer satisfaction survey results and candid testimonials. The Company goal is to rank high for preferred
keywords on the main search engines in "organic" or "natural" searches and increase search engine
optimization by writing a keyword rich title. The Company will submit the website to key directories. The
Company will also dramatically increase visibility by writing custom cabinetry related articles and distribute
them to editors as free content for  e-mail newsletters or websites requesting that a link to the company
website and a one-line description of company offerings be included with the article. 

5.2 Development Requirements

[YOUR COMPANY NAME] will utilize an online website builder to rejuvenate the Company's website and user
interface which the Company expects to accomplish within two months of receipt of funding.  The website will
be an ongoing company project and will be updated as service offerings are extended and modified and as
customer testimonials and survey results are received.

6.0 Strategy and Implementation Summary

The primary sales and marketing strategy for [YOUR COMPANY NAME]consists of the following:

1. To provide unparalleled custom cabinetry.

2. To establish a loyal following based on a high level of customer satisfaction.

3. To provide the highest quality cabinetry at a competitive price.

4. To establish and maintain an extensive customer database for marketing purposes.

[YOUR COMPANY NAME]has clearly defined the target market and has differentiated itself by offering a solid
solution to fulfilling its customers' needs. Reasonable sales targets have been established with an
implementation plan designed to ensure the goals set forth are achieved.

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 YOUR COMPANY NAME

6.1 SWOT Analysis

The SWOT analysis aids in displaying the internal strengths and weaknesses that [YOUR COMPANY NAME]
must address. It allows us to examine the opportunities presented as well as its potential threats. The
Company's strength will help it to succeed and strengths are valuable, but it is also important to realize the
weaknesses  the Company must address which include the lack of funding to expand and grow the
business. The Company's strengths will help it capitalize on emerging opportunities which include, but are not
limited to the fact that [YOUR COMPANY NAME] has established a name for itself within the community by
providing excellence in cabinetry and has established itself as a quality provider of service to those in need.
The Company's focus is to expand upon this base by increasing customer awareness through the use
of social network advertising, cultivated industry relationships and the expansion of the current website
featuring the Company's custom cabinetry production and design services to familiarize the general public
and increase visibility. The combination of these efforts along with an increased visibility will ensure a greater
market share going forward. Threats that the company should be aware of include, the existing economically
challenged financial environment we all presently face.

6.1.1 Strengths

Aside from the obvious giants in the cabinetry industry, [YOUR COMPANY NAME]intends to distinguish itself
as a leader in the industry by not only providing distinction in the production of custom cabinetry to the
general public but by providing innovative ideas and designs along with superior customer service  to the
delight of local patrons. Exemplary products have maintained company presence within the industry for over
thirty years and increased funding will allow for the company to reach a broader market share and increase
visibility.

6.1.2 Weaknesses

A lack of funding to expand existing equipment and fulfill hiring needs limit the Company's market share and
profitability.

6.1.3 Opportunities

[YOUR COMPANY NAME] is one of three Diamond Certified cabinetry companies in the East Bay providing a
90% customer approval rating. The Diamond screening service refers select businesses to customers based
on a 4 year history of excellence in products and service as the result of direct customer survey. With
additional funding [YOUR COMPANY NAME] will improve its products and services securing its reputation
and position within the industry.

6.1.4 Threats

The existing weakened economy currently faced by the Nation presents a threat to all established and
emerging businesses.

6.2 Competitive Edge

[YOUR COMPANY NAME] most advantageous competitive edge is its extensive industry experience and
innovation in custom cabinetry along with an established reputation as an elite service provider. The
Company also provides for a solid referral base and increased customer visibility.

6.3 Marketing Strategy

Escalating public interest in the newest communication devices is well documented and has become an
important part of everyday life for virtually every age group and ethnic background.  Modern communication
methods such as texting, emailing, and the use of social websites, blogs, and sophisticated company
websites must be an integral part of a company's marketing strategy for it to become and remain successful. 
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 YOUR COMPANY NAME

Every effort should be exhausted to develop printed and internet marketing materials in an identical

and consistent manner.  Company "branding" defines companies with the use of advertisements, flyers,
business cards, letterhead, forms, internet marketing materials, and the company website all having identical
design, color, logo, and appearances.  With the use of company branding in early stages, the
public immediately identifies and recognizes a marketing piece as belonging to a company once sufficiently
exposed. 

Not more than 10% of annual gross sales will be allocated to the marketing budget and regardless of
what type of marketing campaign is developed; management will make a conscious effort to research and
gather data supporting and testing the campaign, and analyze directly related expenses with potential profit to
determine cost justification.

Marketing research and the compilation of data will include the development and maintenance of a
customer information database that will be used for email, text, telephone or direct mail advertising
campaigns.  

Future consideration will be given to any economical marketing strategies that assist in obtaining referral

business through various forms of advertising, in order to convert new customers into loyal repetitive ones.

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6.4 Sales Strategy

[YOUR NAME], owner of [YOUR COMPANY NAME], meets with each potential client individually and listens
to their needs to gain an understanding of exactly what it is that client hopes to achieve. He presents
examples of materials for clients to choose from describing their strengths and importance in use and offers
solutions to their storage needs displaying a portfolio of cabinetry designed and manufactured by the
company. A detailed written estimate is presented to outline the services to be provided and the associated
cost along with an estimate of the project completion time.
 

6.4.1 Sales Forecast

[YOUR COMPANY NAME] expects sales to increase at a rate of 10% per year with the cost of sales
estimated at 45% of sales. Sales for 2011, 2012 and 2013 are $412,500, $453,750 and $499,125,
respectively.

Table: Sales Forecast

Sales Forecast
2011 2012 2013
Sales
Cabinetry Sales $412,500 $453,750 $499,125
$0 $0 $0
Total Sales $412,500 $453,750 $499,125

Direct Cost of Sales 2011 2012 2013

Cabinetry Cost of Sales $185,625 $204,188 $224,606
$0 $0 $0
Subtotal Direct Cost of Sales $185,625 $204,188 $224,606

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 Feb Mar A
YOUR COMPANY NAME

Jan
Chart: Sales Monthly

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Sales Monthly

$60,000

$50,000

$40,000
Cabinetry Sales
$30,000 $0

$20,000

$10,000

$0

Chart: Sales by Year

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Sales by Year

$500,000

$450,000

$400,000

$350,000
Cabinetry Sales
$300,000
$0
$250,000

$200,000

$150,000

$100,000

$50,000

$0
2011 2012 2013

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6.5 Milestones

[YOUR COMPANY NAME] will utilize funding expected to be received by August of 2011 by:

 Purchasing a used truck for company use.

 Purchasing woodworking equipment utilized in the course of business.
 Implementing an aggressive advertising campaign.
 Funding the company's working capital in order to provide for the projected payroll of new employees.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Department

Install Workshop Solar 8/1/2011 11/30/2011 $40,000 Owner
Panels
Purchase Equipment 8/1/2011 10/1/2011 $30,000 Owner
Purchase Used Truck 8/1/2011 10/1/2011 $25,000 Owner
Implement Advertising 8/1/2011 11/30/2011 $55,000 Owner
Campaign
Hire Additional Employees 8/1/2011 12/31/2012 $34,000 Owner
Working Capital $42,000
Totals $226,000

Chart: Milestones

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Milestones

Install Workshop Solar Panels

Purchase Equipment

Purchase Used Truck

Implement Advertising Campaign

Hire Additional Employees

Q3 `11 Q4 Q1 `12 Q2 Q3 Q4

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7.0 Management Summary

[YOUR COMPANY NAME] will convey its commitment to quality service and professionalism by investing the
time required to extensively train all company personnel to uphold and adhere to the Company's standards of
excellence in service and business decorum.

[YOUR NAME], Owner and Operations Manager, maintains thirty years of experience as a licensed contractor
in the woodworking industry, and twenty seven years as an independent business owner and as such will
oversee all elements of the company and its operations, profitability and commitment to service and
exceeding customer expectations. The company projects the inclusion of additional employees by the end
of 2012.

7.1 Personnel Plan

[YOUR COMPANY NAME] projects to create a new job within the community by adding an additional
employee by the beginning of 2012 with salaries including a 3% annual cost of living increase in 2013.

Table: Personnel

Personnel Plan
2011 2012 2013
INSERT NAME $42,000 $43,260 $44,558
Woodworker $34,000 $35,020 $36,071
Total People 2 2 2

Total Payroll $76,000 $78,280 $80,628

8.0 Financial Plan

The current financial plan for [YOUR COMPANY NAME] is to obtain funding in the amount of $226,000. The
funding will be used to execute leasehold improvements by installing solar panels to the existing workshop,
to purchase woodworking equipment and a used company truck, to fund an aggressive advertising
campaign and to provide salaries for the addition of new employees necessary for company expansion.

The following sections of this plan will serve to describe the Company's financial plan in more detail:

 General Assumptions
 Break-even Analysis
 Profit and Loss
 Cash Flow
 Balance Sheet
 Ratios

8.1 Important Assumptions

The tables below present the assumptions used in the financial calculations of this funding plan. [YOUR
COMPANY NAME] is a sole proprietorship and is taxed accordingly at an estimated 25% tax
rate. Depreciation expense is based on the scheduled additions in the Milestones table. Insurance,
utilities and all other expenses assume a 3% annual increase due to inflation & other cost variables.

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8.2 Break-even Analysis

The Company's monthly revenue break-even analysis for 2011 is projected to be $33,796. Sales are
projected to increase 10% for 2012 and 2013 due to the internal expansion of the Company and
corresponding advertising campaigns.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $33,796

Assumptions:
Average Percent Variable Cost 45%
Estimated Monthly Fixed Cost $18,588

Chart: Break-even Analysis

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Break-even Analysis
$20,000

$16,000

$12,000

$8,000

$4,000

$0

($4,000)

($8,000)

($12,000)

($16,000)

$0 $12,000 $24,000 $36,000 $48,000 $60,000

$6,000 $18,000 $30,000 $42,000 $54,000 $66,000

8.3 Projected Profit and Loss

The sales for 2011, 2012 and 2013 for [YOUR COMPANY NAME] are $412,500, $453,750 and $499,125,
respectively. Gross Profit will be 55% in 2011, 2012 and 2013. The Company will show a Net Profit for 2011,
2012 and 2013 of $2,864, $10,955 and $24,676 respectively due to the internal expansion of the Company to
launch the marketing, sales and operation efforts needed to take advantage of the market and growth in the
future years.

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The Company will show a positive EBITDA of $11,275 in 2011, $27,495 in 2012 and $45,789 in 2013. The
Operating expenses as a percentage of sales for this period were 54.07%, 51.78% and 48.41%, respectively.
The percentages of the net profit to sales for this period were 0.69%, 2.41% and 4.94%, respectively. The
Operating Expenses and Net Profit to Sales for the 2011, 2012 and 2013 period are affected by the internal
expansion of the Company. Gross Profit will remain in the 55% range in 2014/2015 and future years. The
Company estimates a positive Net Profit in 2014/2015.

Net Profit and Net Profit to Sales Percentage will continue to rise in future years as the internal expansion and
investments in Marketing and Advertising bear fruit.

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $412,500 $453,750 $499,125
Direct Cost of Sales $185,625 $204,188 $224,606
Other Costs of Sales $0 $0 $0
Total Cost of Sales $185,625 $204,188 $224,606

Gross Margin $226,875 $249,563 $274,519

Gross Margin % 55.00% 55.00% 55.00%

Expenses
Payroll $76,000 $78,280 $80,628
Marketing/Promotion $55,000 $56,650 $58,350
Depreciation $7,456 $12,888 $12,888
Rent $37,800 $38,934 $40,102
Utilities $5,700 $5,871 $6,047
Insurance $2,700 $2,781 $2,864
Payroll Taxes $11,400 $11,742 $12,094
Car & Truck Expenses $15,000 $15,450 $15,914
Other $12,000 $12,360 $12,731

Total Operating Expenses $223,056 $234,956 $241,618

Profit Before Interest and Taxes $3,819 $14,607 $32,901

EBITDA $11,275 $27,495 $45,789
Interest Expense $0 $0 $0
Taxes Incurred $955 $3,652 $8,225

Net Profit $2,864 $10,955 $24,676

Net Profit/Sales 0.69% 2.41% 4.94%

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Chart: Profit Monthly

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Profit Monthly

$10,000

$8,000

$6,000

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)

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

Chart: Profit Yearly

INCLUDEPICTURE "ooxWord://word/media/image10.emf" \* MERGEFORMATINET

Profit Yearly

$24,000

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0
2011 2012 2013

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 YOUR COMPANY NAME

Chart: Gross Margin Monthly

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Gross Margin Monthly

$30,000

$27,000

$24,000

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Gross Margin Yearly

INCLUDEPICTURE "ooxWord://word/media/image12.emf" \* MERGEFORMATINET

Gross Margin Yearly

$300,000

$270,000

$240,000
$210,000

$180,000

$150,000

$120,000

$90,000
$60,000

$30,000

$0
2011 2012 2013

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 YOUR COMPANY NAME

8.4 Projected Cash Flow

[YOUR COMPANY NAME] has applied for funding in the amount of $226,000. The company has forecast
that it will receive its funding of $226,000 in the month August of 2011.

The following table displays the Company's cash flow for 2011, 2012 and 2013 and the following chart
illustrates monthly cash flow in the first year. Monthly cash flow projections are also included in the appendix.

Table: Cash Flow

Pro Forma Cash Flow

2011 2012 2013
Cash Received

Cash from Operations

Cash Sales $412,500 $453,750 $499,125
Subtotal Cash from Operations $412,500 $453,750 $499,125

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 $226,000 $0 $0
Subtotal Cash Received $638,500 $453,750 $499,125

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $76,000 $78,280 $80,628
Bill Payments $305,338 $343,568 $378,524
Subtotal Spent on Operations $381,338 $421,848 $459,153

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 $95,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $476,338 $421,848 $459,153

Net Cash Flow $162,162 $31,902 $39,972

Cash Balance $204,822 $236,724 $276,696

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 Feb Mar
YOUR COMPANY NAME

Jan
Chart: Cash

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Cash
$240,000

$210,000

$180,000

$150,000
Net Cash Flow
$120,000
Cash Balance
$90,000

$60,000

$30,000

$0

8.5 Projected Balance Sheet

[YOUR COMPANY NAME] net worth is $274,198, $285,153 and $309,829 for 2011, 2012 and 2013,
respectively. The Company's Total Assets at the end of 2011, 2012 and 2013 will be $295,040, $314,054 and
$341,138, respectively.

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 YOUR COMPANY NAME

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets
Current Assets
Cash $204,822 $236,724 $276,696
Other Current Assets $0 $0 $0
Total Current Assets $204,822 $236,724 $276,696

Long-term Assets
Long-term Assets $101,250 $101,250 $101,250
Accumulated Depreciation $11,032 $23,920 $36,808
Total Long-term Assets $90,218 $77,330 $64,442

Total Assets $295,040 $314,054 $341,138

Liabilities and Capital 2011 2012 2013

Current Liabilities
Accounts Payable $20,842 $28,901 $31,310
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $20,842 $28,901 $31,310

Long-term Liabilities $0 $0 $0
Total Liabilities $20,842 $28,901 $31,310

Paid-in Capital $576,000 $576,000 $576,000

Retained Earnings ($304,666) ($301,802) ($290,847)
Earnings $2,864 $10,955 $24,676
Total Capital $274,198 $285,153 $309,829

Total Liabilities and Capital $295,040 $314,054 $341,138

Net Worth $274,198 $285,153 $309,829

8.6 Business Ratios

The table below presents the projected business ratios from the wood kitchen cabinet & counter top
manufacturing industry as a reference with sales below $500,000 

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 YOUR COMPANY NAME

Table: Ratios

Ratio Analysis
2011 2012 2013 Industry Profile
Sales Growth 6.33% 10.00% 10.00% -12.61%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 25.65%
Total Current Assets 69.42% 75.38% 81.11% 71.37%
Long-term Assets 30.58% 24.62% 18.89% 28.63%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 7.06% 9.20% 9.18% 40.87%

Long-term Liabilities 0.00% 0.00% 0.00% 42.47%
Total Liabilities 7.06% 9.20% 9.18% 83.34%
Net Worth 92.94% 90.80% 90.82% 16.66%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 55.00% 55.00% 55.00% 44.26%
Selling, General & Administrative 54.31% 52.59% 50.06% 18.76%
Expenses
Advertising Expenses 13.33% 12.48% 11.69% 0.46%
Profit Before Interest and Taxes 0.93% 3.22% 6.59% 4.61%

Main Ratios
Current 9.83 8.19 8.84 1.47
Quick 9.83 8.19 8.84 1.03
Total Debt to Total Assets 7.06% 9.20% 9.18% 83.34%
Pre-tax Return on Net Worth 1.39% 5.12% 10.62% 123.22%
Pre-tax Return on Assets 1.29% 4.65% 9.64% 20.53%

Additional Ratios 2011 2012 2013

Net Profit Margin 0.69% 2.41% 4.94% n.a
Return on Equity 1.04% 3.84% 7.96% n.a

Activity Ratios
Accounts Payable Turnover 15.65 12.17 12.17 n.a
Payment Days 27 26 29 n.a
Total Asset Turnover 1.40 1.44 1.46 n.a

Debt Ratios
Debt to Net Worth 0.08 0.10 0.10 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $183,980 $207,823 $245,387 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.72 0.69 0.68 n.a
Current Debt/Total Assets 7% 9% 9% n.a
Acid Test 9.83 8.19 8.84 n.a
Sales/Net Worth 1.50 1.59 1.61 n.a

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 YOUR COMPANY NAME

Dividend Payout 0.00 0.00 0.00 n.a

Page 23
 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Cabinetry Sales $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $55,500 $55,500 $25,000 $25,000 $25,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $55,500 $55,500 $25,000 $25,000 $25,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cabinetry Cost of Sales $6,750 $6,750 $6,750 $6,750 $24,975 $24,975 $24,975 $24,975 $24,975 $11,250 $11,250 $11,250
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of $6,750 $6,750 $6,750 $6,750 $24,975 $24,975 $24,975 $24,975 $24,975 $11,250 $11,250 $11,250
Sales

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 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
INSERT NAME $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Woodworker $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833 $2,833
Total People 2 2 2 2 2 2 2 2 2 2 2 2

Total Payroll $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $55,500 $55,500 $25,000 $25,000 $25,000
Direct Cost of Sales $6,750 $6,750 $6,750 $6,750 $24,975 $24,975 $24,975 $24,975 $24,975 $11,250 $11,250 $11,250
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $6,750 $6,750 $6,750 $6,750 $24,975 $24,975 $24,975 $24,975 $24,975 $11,250 $11,250 $11,250

Gross Margin $8,250 $8,250 $8,250 $8,250 $30,525 $30,525 $30,525 $30,525 $30,525 $13,750 $13,750 $13,750
Gross Margin % 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00%

Expenses
Payroll $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333
Marketing/Promotion $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583
Depreciation $298 $298 $298 $298 $298 $298 $298 $1,074 $1,074 $1,074 $1,074 $1,074
Rent $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150
Utilities $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475 $475
Insurance $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225
Payroll Taxes 15% $950 $950 $950 $950 $950 $950 $950 $950 $950 $950 $950 $950
Car & Truck $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Expenses
Other $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Total Operating $18,265 $18,265 $18,265 $18,265 $18,265 $18,265 $18,265 $19,041 $19,041 $19,041 $19,041 $19,041
Expenses

Profit Before Interest ($10,015) ($10,015) ($10,015) ($10,015) $12,260 $12,260 $12,260 $11,484 $11,484 ($5,291) ($5,291) ($5,291)
and Taxes
EBITDA ($9,717) ($9,717) ($9,717) ($9,717) $12,558 $12,558 $12,558 $12,558 $12,558 ($4,217) ($4,217) ($4,217)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($2,504) ($2,504) ($2,504) ($2,504) $3,065 $3,065 $3,065 $2,871 $2,871 ($1,323) ($1,323) ($1,323)

Net Profit ($7,511) ($7,511) ($7,511) ($7,511) $9,195 $9,195 $9,195 $8,613 $8,613 ($3,968) ($3,968) ($3,968)
Net Profit/Sales -50.07% -50.07% -50.07% -50.07% 16.57% 16.57% 16.57% 15.52% 15.52% -15.87% -15.87% -15.87%

Page 3
 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 $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $55,500 $55,500 $25,000 $25,000 $25,000
Subtotal Cash from $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $55,500 $55,500 $25,000 $25,000 $25,000
Operations

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $226,000 $0 $0 $0 $0
Subtotal Cash Received $15,000 $15,000 $15,000 $15,000 $55,500 $55,500 $55,500 $281,500 $55,500 $25,000 $25,000 $25,000

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

Expenditures from Operations

Cash Spending $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333 $6,333
Bill Payments $529 $15,880 $15,880 $15,880 $16,673 $39,673 $39,673 $39,667 $39,479 $38,882 $21,561 $21,561
Subtotal Spent on Operations $6,863 $22,213 $22,213 $22,213 $23,006 $46,007 $46,007 $46,000 $45,813 $45,215 $27,894 $27,894

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $95,000 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $6,863 $22,213 $22,213 $22,213 $23,006 $46,007 $46,007 $141,000 $45,813 $45,215 $27,894 $27,894

Net Cash Flow $8,137 ($7,213) ($7,213) ($7,213) $32,494 $9,493 $9,493 $140,500 $9,687 ($20,215) ($2,894) ($2,894)
Cash Balance $50,797 $43,584 $36,371 $29,158 $61,652 $71,145 $80,639 $221,138 $230,826 $210,610 $207,716 $204,822

Page 4
 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 $42,660 $50,797 $43,584 $36,371 $29,158 $61,652 $71,145 $80,639 $221,138 $230,826 $210,610 $207,716 $204,822
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current $42,660 $50,797 $43,584 $36,371 $29,158 $61,652 $71,145 $80,639 $221,138 $230,826 $210,610 $207,716 $204,822
Assets

Long-term Assets
Long-term Assets $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $101,250 $101,250 $101,250 $101,250 $101,250
Accumulated $3,576 $3,874 $4,172 $4,470 $4,768 $5,066 $5,364 $5,662 $6,736 $7,810 $8,884 $9,958 $11,032
Depreciation
Total Long-term $2,674 $2,376 $2,078 $1,780 $1,482 $1,184 $886 $588 $94,514 $93,440 $92,366 $91,292 $90,218
Assets
Total Assets $45,334 $53,173 $45,662 $38,151 $30,640 $62,836 $72,031 $81,227 $315,652 $324,266 $302,976 $299,008 $295,040

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

Current Liabilities
Accounts Payable $0 $15,350 $15,350 $15,350 $15,350 $38,351 $38,351 $38,351 $38,163 $38,163 $20,842 $20,842 $20,842
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $15,350 $15,350 $15,350 $15,350 $38,351 $38,351 $38,351 $38,163 $38,163 $20,842 $20,842 $20,842
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $0 $15,350 $15,350 $15,350 $15,350 $38,351 $38,351 $38,351 $38,163 $38,163 $20,842 $20,842 $20,842

Paid-in Capital $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $576,000 $576,000 $576,000 $576,000 $576,000
Retained ($365,193) ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666 ($304,666
Earnings ) ) ) ) ) ) ) ) ) ) ) )
Earnings $60,527 ($7,511) ($15,022) ($22,533) ($30,044) ($20,849) ($11,654) ($2,458) $6,155 $14,768 $10,800 $6,832 $2,864
Total Capital $45,334 $37,823 $30,312 $22,801 $15,290 $24,485 $33,681 $42,876 $277,489 $286,102 $282,134 $278,166 $274,198
Total Liabilities $45,334 $53,173 $45,662 $38,151 $30,640 $62,836 $72,031 $81,227 $315,652 $324,266 $302,976 $299,008 $295,040
and Capital

Net Worth $45,334 $37,823 $30,312 $22,801 $15,290 $24,485 $33,680 $42,876 $277,489 $286,102 $282,134 $278,166 $274,198

Page 5