vi) Management Segment

The initial management team depends on the founder himself, with little back-up. As we grow,
we will take on additional consulting, sales, and marketing help.

Personnel Plan

The following table is the personnel plan for Coaching Company. The table reflects the hiring of
a second full-time salesperson / coach in year 2.

Personnel Plan

Year 1 Year 2 Year 3

President Tsh 270,000 Tsh 500,000 Tsh 500,000

Second
Tsh 0 Tsh 200,000 Tsh 420,000
salesperson/coach

Total People 1 2 2

Total Payroll Tsh 270,000 Tsh 700,000 Tsh 920,000

(vii) Critical Risks Segment

We can minimize risk factors by:

1. Obtaining initial capitalization of the company to sustain operations through year one

2. Maintaining low overhead through the use of shared office space and home-based office
through year one 

3. Developing a strong customer base through aggressive marketing

4. Creating strong community ties and involvement

5. Eliminating collection costs, by establishing cash/credit/debit card only facilities

(viii) Financial Segment

Our financial plan is based on conservative estimates and assumptions. We will need initial
investment to make the financials work, but the owner is prepared to contribute that funding.

Start-up Funding

The start-up costs are to be financed by the owners' personal funds.

Start-up Funding (‘000)

Start-up Expenses to Fund Tsh 22,250

Start-up Assets to Fund Tsh 10,500

Total Funding Required Tsh 32,750

Assets

Non-cash Assets from Start-up Tsh 2,500

Cash Requirements from Start-up Tsh 8,000

Additional Cash Raised Tsh 950

Cash Balance on Starting Date Tsh 8,950

Total Assets Tsh 11,450

Liabilities and Capital

Liabilities

Current Borrowing Tsh 0

Long-term Liabilities Tsh 0

Other Current Liabilities (interest-

Tsh 0
free)

Total Liabilities Tsh 0

Capital

Planned Investment

Owner Tsh 33,700

Investor Tsh 0
Additional Investment Requirement Tsh 0

Total Planned Investment Tsh 33,700

Loss at Start-up (Start-up Expenses) (Tsh 22,250)

Total Capital Tsh 11,450

Total Capital and Liabilities Tsh 11,450

Total Funding Tsh 33,700

Projected Profit and Loss

The following table and chart shows the projected Profit and Loss for Coaching Company. The
majority of our operating expenses are the owner's payroll, benefits and taxes. This includes a
standard PPO health plan, since the owner is sole provider of services; if he gets sick, sales stop.
The second largest category is Marketing and Promotion, necessary for establishing brand
recognition and generating new business, as a start-up.

The moving expenses in December and increased rent starting at the same time reflect the
planned move into an office space, and out of the owner's home.
Pro Forma Profit and Loss (‘000)

Year 1 Year 2 Year 3

Sales Tsh 81,467 Tsh 120,604 Tsh 147,315

Direct Cost of Sales Tsh 10,654 Tsh 13,486 Tsh 16,339

Other Costs of Sales Tsh 0 Tsh 0 Tsh 0

Total Cost of Sales Tsh 10,654 Tsh 13,486 Tsh 16,339

Gross Margin Tsh 70,813 Tsh 107,118 Tsh 130,976

Gross Margin % 86.92% 88.82% 88.91%

Expenses
Payroll Tsh 27,000 Tsh 70,000 Tsh 92,000

Marketing/Promotion Tsh 4,800 Tsh 5,400 Tsh 6,400

Depreciation Tsh 0 Tsh 0 Tsh 0

Rent Tsh 2,335 Tsh 10,000 Tsh 10,000

Utilities Tsh 480 Tsh 528 Tsh 580

Insurance Tsh 972 Tsh 1,020 Tsh 1,072

Payroll Taxes Tsh 4,050 Tsh 10,500 Tsh 13,800

Moving Expenses Tsh 1,000 Tsh 0 Tsh 0

Other Tsh 0 Tsh 0 Tsh 0

Total Operating
Tsh 40,637 Tsh 97,448 Tsh 123,852
Expenses

Profit Before Interest

Tsh 30,176 Tsh 9,670 Tsh 7,124
and Taxes

EBITDA Tsh 30,176 Tsh 9,670 Tsh 7,124

Interest Expense Tsh 0 Tsh 0 Tsh 0

Taxes Incurred Tsh 9,053 Tsh 2,901 Tsh 2,137

Net Profit Tsh 21,123 Tsh 6,769 Tsh 4,987

Net Profit/Sales 25.93% 5.61% 3.39%

Break-even Analysis

Break-even data is presented in the chart and table below.

Break-even Analysis

Monthly Revenue Break-even Tsh 3,896

Assumptions:

Average Percent Variable Cost 13%

Estimated Monthly Fixed Cost Tsh 3,386

 Projected Balance Sheet

The following table presents the Balance Sheet for our Company. It shows our projected steady
increase in Net Worth over the next three years. As a consulting company, we do not need a
great deal in the way of assets, so the largest factor in the Balance Sheet is our cash balance.

Pro Forma Balance Sheet (‘000)

Year 1 Year 2 Year 3

Assets
Current Assets

Cash Tsh 30,073 Tsh 36,842 Tsh 41,829

Other Current
Tsh 2,500 Tsh 2,500 Tsh 2,500
Assets

Total Current
Tsh 32,573 Tsh 39,342 Tsh 44,329
Assets

Long-term Assets

Long-term Assets Tsh 0 Tsh 0 Tsh 0

Accumulated
Tsh 0 Tsh 0 Tsh 0
Depreciation

Total Long-term
Tsh 0 Tsh 0 Tsh 0
Assets

Total Assets Tsh 32,573 Tsh 39,342 Tsh 44,329

Liabilities and
Year 1 Year 2 Year 3
Capital

Current Liabilities

Current Borrowing Tsh 0 Tsh 0 Tsh 0

Other Current
Tsh 0 Tsh 0 Tsh 0
Liabilities

Subtotal Current
Tsh 0 Tsh 0 Tsh 0
Liabilities

Long-term
Tsh 0 Tsh 0 Tsh 0
Liabilities

Total Liabilities Tsh 0 Tsh 0 Tsh 0

Paid-in Capital Tsh 33,700 Tsh 33,700 Tsh 33,700

Retained Earnings (Tsh 22,250) (Tsh 1,127) Tsh 5,642

Earnings Tsh 21,123 Tsh 6,769 Tsh 4,987

Total Capital Tsh 32,573 Tsh 39,342 Tsh 44,329

Total Liabilities and
Tsh 32,573 Tsh 39,342 Tsh 44,329
Capital

Net Worth Tsh 32,573 Tsh 39,342 Tsh 44,329

(ix) Milestone Schedule Segment

Our Company has a big year coming. In order to achieve the sales and marketing goals that have
been outline in this business plan, the company has deadlines to meet and ideas to implement.
Frank Smith is accountable for all items. Some of these are outlined below:

 March 1, 2017 is the date Coaching Company must commence operations. This requires
a trip to Anytown in January 2017 with final franchise agreements signed by February 1,
2017.  Richard Mtavilalo will be visiting Anytown on January 14, 2017 to take care of
this.

 March 1, 2017 is the date specified to begin the Lead Generation Program
(direct marketing) which includes direct mail, email marketing, advertising and phone
sales calls. 

 February 28, 2017 is the deadline for joining two chamber of commerces (Anytown and
Dodoma), and other networking groups; this is key to the marketing/networking effort.
This will be effective immediately after submitting application and membership fee.
Frank Smith will begin scheduling free talks immediately.

 April 15, 2017 is the deadline for scheduling the first of monthly Sample Previews.
  Marketing materials. Printing costs are involved in printing brochures, business cards,
and developing website. This can't be done until after the photo/logo design work
(costing Tsh 1,000) has been completed.

 February 28, 2017 is deadline for joining the Anytown Chamber of Commerce and a
secondary Chamber.  Cost is Tsh 195-Tsh 225/year.  Benefits include networking,
marketing and free talks.

 February 28, 2017 is the deadline to join Local Business Network.  Cost is Tsh 360/year. 
Benefits include networking, marketing and free talks.  May also be used to populate first
workshops.

Milestones

Milestone Start Date End Date Budget (‘000) Manager Department

Lead Generation Richard

3/1/2017 3/15/2017 Tsh 1,000 Marketing
Prgm

Sample Previews 2/15/2017 3/15/2017 Tsh 300 Richard Marketing

Free Talks 3/1/2017 3/1/2007 Tsh 50 Richard Marketing

Start Business 2/1/2017 2/28/2017 Tsh 17,900 Mohamed Finance

Marketing Richard
2/15/2017 2/28/2017 Tsh 500 Marketing
Materials/Stationery

Chamber of Richard
2/1/2017 2/28/2017 Tsh 195 Marketing
Commerce

Networking Group 2/1/2017 2/28/2017 Tsh 360 Richard Marketing

Second Chamber 2/1/2017 2/28/2017 Tsh 200 Richard Department

Totals Tsh 20,505

(x) Appendix and/or Bibliography

Sales Forecast (‘000)

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales

Strategic Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
0% Tsh 0 Tsh 0
Workshops 3,000 3,500 5,000 7,500 7,500 7,500 7,500 7,500 7,500 7,500

One On
Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
One 0% Tsh 0 Tsh 0
500 500 500 562 562 562 562 625 625 624
Coaching

Coaching Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
0% Tsh 0 Tsh 0
Club 800 816 832 849 866 883 901 919 937 956

Special Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
0%
Projects 235 250 150 150 250 250 300 300 300 300 300 300

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Total Sales
235 250 4,450 4,966 6,582 9,161 9,228 9,245 9,263 9,344 9,362 9,380

Direct Cost Month Month Month Month Month Month Month Month Month Month Month Month
of Sales 1 2 3 4 5 6 7 8 9 10 11 12

Royalties Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
 471 471 471 471 471 471 471 471 471 471 471 471

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Marketing
417 417 417 417 417 417 417 417 417 417 417 417

Subtotal
Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Direct Cost
888 888 888 888 888 888 888 888 888 888 888 888
of Sales

Pro Forma Profit and Loss (‘000)

Month Month Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
1 2 h3 h4 h5 h6 h7 h8 h9 h 10 h 11 h 12

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Sales
235 250 4,450 4,966 6,582 9,161 9,228 9,245 9,263 9,344 9,362 9,380

Direct Cost of Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Sales 888 888 888 888 888 888 888 888 888 888 888 888

Other Costs of
Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0
Sales

Total Cost of Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Sales 888 888 888 888 888 888 888 888 888 888 888 888

(Tsh (Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Gross Margin
653) 638) 3,562 4,078 5,694 8,273 8,340 8,357 8,375 8,456 8,474 8,492

- -
80.05 82.12 86.51 90.31 90.38 90.40 90.42 90.50 90.52 90.53
Gross Margin % 277.87 255.13
% % % % % % % % % %
% %

Expenses

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Payroll Tsh 0
2,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500

Marketing/Prom Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
otion 1,500 300 300 300 300 300 300 300 300 300 300 300
Depreciation Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Rent Tsh 0 Tsh 75
75 75 75 75 75 75 75 75 830 830

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Utilities Tsh 0 Tsh 38
39 40 41 42 43 45 46 48 49 50

Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Insurance Tsh 0 Tsh 84
85 86 87 87 88 89 90 91 92 93

15 Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Payroll Taxes Tsh 0
% 300 375 375 375 375 375 375 375 375 375 375

Moving 15 Tsh
Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0
Expenses % 1,000

Other Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0

Total Operating Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Expenses 1,500 2,797 3,373 3,375 3,378 3,380 3,382 3,384 3,386 3,388 5,146 4,148

Profit Before
(Tsh (Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Interest and
2,153) 3,434) 189 703 2,317 4,894 4,958 4,973 4,989 5,068 3,329 4,344
Taxes

(Tsh (Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
EBITDA
2,153) 3,434) 189 703 2,317 4,894 4,958 4,973 4,989 5,068 3,329 4,344

Interest Expense Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0 Tsh 0

(Tsh (Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Taxes Incurred
646) 1,030) 57 211 695 1,468 1,488 1,492 1,497 1,520 999 1,303

(Tsh (Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh Tsh
Net Profit
1,507) 2,404) 132 492 1,622 3,425 3,471 3,481 3,492 3,547 2,330 3,041

- -
2.97 9.91 24.64 37.39 37.61 37.66 37.70 37.96 24.89 32.42
Net Profit/Sales 641.32 961.61
% % % % % % % % % %
% %