BikeArt

Bicycle Art Business Plan

The Concept

BikeArt's mission is to provide the customer with functional

items and art work made out of recycled bicycle parts. The art work
will be made by three local artists, one of which is Steve's wife
Shoodnt. Some of the featured products are: wall clocks, picture
frames, chairs, tables, mobiles, wind chimes, book ends, kitchen
utensil holders, and many other products.

BikeArt will be a stand-alone kiosk located in the busy Valley

River Mall. Through the outstanding terms and conditions of its
lease, BikeArt will be able to display its larger items on the
surrounding floor space. This should significantly increase sales as
walk through traffic in the mall is very high.

BikeArt is forecasted to reach profitability by month nine and

will have profits of almost $40,000 by year three.
 Beginnings

The first month will be used to set up the kiosk and get things
underway. During this month the part-time employees will be hired and
trained. Sales will begin slowly during this first month. From the
second month on, sales will steadily increase from the flow of
customers that pass by the kiosk.

Total startup costs are $45,000. This will be financed through

$25,000 put forward by Steve Useitagyen as equity and another $20,000
in a long-term small business loan.

The Company

The company will be a sole proprietorship owned and operated by

Steve Useitagyen.

Steve Useitagyen is well qualified to work in this niche market.

He received a joint degree in business administration and art design
from the University of Portland. Throughout college Steve worked at a
bicycle shop, initially as a mechanic, then moved up to sales, and
then after college managed the shop for two years.

BikeArt will use three part-time employees to man the kiosk, in

addition to Steve who will take care of the hiring, payroll, and
purchasing.
 The Market

BikeArt will target two market segments, industrial art

aficionados and bicycle enthusiasts. Both of these groups are
populous in Eugene. BikeArt is focusing on these two groups
because they are the most likely consumers of this type of art
work.

BikeArt has several competitors:

Other retailers in the

mall.

Art galleries.

Bicycle retailers.

BikeArt will leverage its competitive advantage of existing

in a niche market by being the only retailer that exclusively
deals with bicycle artwork. Since the mall gets lots of foot
traffic all day, it is like having your own show room in the
middle of the hallway of a crowded mall.

Success

The company plans to grow slowly and establish a

sustainable level of sales and cash flow before seeking to
expand. Once this is done, BikeArt will seek to set up other
kiosks in Salem, Corvallis, and Portland. This expansion is
estimated to occur sometime after year three.
 The Break-even Analysis indicates $15,212 is needed in
monthly revenue to reach the break-even point. Pricing of
BikeArt's products will be based on a desired net margin of 12%.
Because BikeArt's products will be locally created works of art,
prices are estimated to range from $40 to $500 per piece.

The business is forecasted to reach profitability by month nine

and will have revenues of $147,000 and profits of $35,500 by the end
of year two.

Mission
BikeArt's mission is to provide the customer with functional
items and art work made out of recycled bicycle parts.  We exist to
attract and maintain customers.  When we adhere to this maxim,
everything else will fall into place.  Our services will exceed the
expectations of our customers. 
 The objectives for the first three years of operation include:

To create a product-based kiosk whose primary goal is to exceed

customer's expectations.

The increase in the number of products sold by 20% each year.

To develop a sustainable retail outlet that sells artwork and

functional items made out of recycled parts.

 out of recycled parts.
 Company Summary

BikeArt is a stand alone kiosk located in the Valley River Mall

that sells pieces of art, furniture, and other items manufactured
out of recycled bicycle parts.  While some of the items are
functional, they all can be considered art as they are aesthetically
pleasing.  In addition to the kiosk, BikeArt will warehouse their
purchased products as well as do the back end accounting in Steve
Useitagyen's home.  Steve is the founder and operator of BikeArt.

BikeArt will use three part-time employees to man the kiosk, in

addition to Steve who will take care of the hiring, payroll, and
purchasing.

The business is forecasted to reach profitability by month nine

and will have revenues of $147,000 by the end of year two.

Company Ownership

BikeArt is a sole proprietorship founded and owned by Steve

Useitagyen. 

Start-up Summary

BikeArt will incur the following start-up costs:

 Wheeled kiosk.

 Cash register.

 Computer system with printer and Internet connection.

 Desk, chair, and file cabinet.

 Legal fees associated with business formation and contract review.

Start-up Expenses

Legal $300

Insurance $0

Rent $0

Other $0

TOTAL START-UP EXPENSES $300

Start-up Assets

Cash Required $41,600

Start-up Inventory $0

Other Current Assets $0

Long-term Assets $3,100

TOTAL ASSETS $44,700

Total Requirements $45,000

START-UP FUNDING

Start-up Expenses to Fund $300

Start-up Assets to Fund $44,700

TOTAL FUNDING REQUIRED $45,000

Assets

Non-cash Assets from Start-up $3,100

Cash Requirements from Start-up $41,600

Additional Cash Raised $0

Cash Balance on Starting Date $41,600

TOTAL ASSETS $44,700

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $20,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $20,000

Capital

Planned Investment

Steve $25,000

Other $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $25,000

Loss at Start-up (Start-up Expenses) ($300)

TOTAL CAPITAL $24,700

TOTAL CAPITAL AND LIABILITIES $44,700

Total Funding $45,000

Products

BikeArt will sell artwork manufactured from recycled bicycle

parts.  The art work will be made by three local artists, one of
which is Steve's wife Shoodnt.  Some of the featured products are:
wall clocks, picture frames, chairs, tables, mobiles, wind chimes,
book ends, kitchen utensil holders, and many other products. 
 Market Analysis Summary

BikeArt's customers can be broadly classified from coming from

two different groups, those that appreciate industrial design
artwork, and those who are bicycle enthusiasts and value anything
having to do with cycling.

Being based in Eugene is very fortuitous for BikeArt.  Eugene is

a progressive city which tends to favor more industrial tastes
compared with more conservative towns.  Eugene is also a bicycling
mecca, known nationwide for its affinity for cycling.  Having such a
high concentration of cycling enthusiasts provides a large population
base of prospective customers.

Market Segmentation

BikeArt's market can be divided into two groups, industrial art

collectors and bicycle enthusiasts.  The industrial art collectors
are characterized by people who collect art with an industrial edge. 
Industrial art is typically characterized through the use of either
technical looking structures or using parts that existed for another
function for the basis of the art work.  Industrial art is the
opposite of organic art.  Industrial is typically sharp angles,
straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a

bicyclist town, one of the hottest in the country. In a town of
130,000, there are three bicycle manufacturers, miles upon miles of
bike lanes and independent bike paths.  If you drive around town you
will see just about everyone on bicycles, from small children to
grandmothers.  This culture will lend itself to BikeArt.  The bicycle
enthusiasts are people that ride a lot and appreciate anything
related to bicycles, including bicycle art pieces.
MARKET ANALYSIS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Growth CAGR

Customers

Industrial art 8% 5,644 6,096 6,584 7,111 7,680 8.00%

collectors

Bicycling 10% 12,545 13,800 15,180 16,698 18,368 10.00%

enthusiasts

Total 9.39% 18,189 19,896 21,764 23,809 26,048 9.39%

Target Market Segment Strategy

BikeArt's market can be divided into two groups, industrial art

collectors and bicycle enthusiasts.  The industrial art collectors
are characterized by people who collect art with an industrial edge. 
 Industrial art is typically characterized through the use of
either technical looking structures or using parts that existed for
another function for the basis of the art work.  Industrial art is
the opposite of organic art.  Industrial is typically sharp angles,
straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a

bicyclist town, one of the hottest in the country. In a town of
130,000, there are three bicycle manufacturers, miles upon miles of
bike lanes and independent bike paths.  If you drive around town you
will see just about everyone on bicycles, from small children to
grandmothers.  This culture will lend itself to BikeArt.  The bicycle
enthusiasts are people that ride a lot and appreciate anything
related to bicycles, including bicycle art pieces.

Industry Analysis

BikeArt has several different competitors:

Other retailers in the mall. For people that are shopping at

BikeArt for gifts for other people, they are also likely to visit
other retailers in the mall.  While the other retailers are not
direct competitors, their products will act as a substitute product.

Art galleries. These retailers specifically sell different types of

artwork.  While some might specialize or carry a theme of industrial
art, none of them sell bicycle-specific art.  People that are looking
for a wide range of art work are more likely to go to these
retailers.
 Bicycle retailers. Some bicycle shops do carry gifts for cycling
enthusiasts.  Sometimes this gift section will be art work based on
bicycles.  Some of BikeArt's artists also sell to bicycle shops so
they might have identical pieces.  The bicycle retailers do not
however, have the same selection as BikeArt.  As BikeArt grows, they
will be able to leverage their vendors to make BikeArt the exclusive
dealer for their bicycle art.

Strategy and Implementation Summary

BikeArt will leverage its competitive advantage of being the

only retailer that exclusively deals with bicycle artwork.  This is
significant as Eugene is truly a bicycling town.  BikeArt will also
be able to use its outstanding terms and conditions of their lease
with Valley River Center that allows them to display their products
not only on the kiosk itself but also on the surrounding floor
space.  Since the mall gets lots of foot traffic all day, it is like
having your own show room in the middle of the hallway of a crowded
mall.  Most retailers could only dream of this arrangement.

Competitive Edge

BikeArt's competitive edge is its specialization in bicycle

art.  No one else concentrates on this specific type of art.  This is
truly a competitive edge since BikeArt is based in Eugene, Biketown
USA.  By only concentrating on this niche, prospective customers will
correctly assume that BikeArt has the largest selection and are more
likely to come to BikeArt as opposed to going to a bicycle shop
looking for some art.
 Sales Strategy

BikeArt's sales strategy will be based on display and

local/environmental support.  BikeArt will be able to leverage the
outstanding terms of their lease with the mall that allows them to
occupy seven feet of floor space in all directions around the
kiosk.   This space will provide BikeArt with ample area to
display larger pieces that they sell.  Because they are located in
the mall, there will be sufficient walk-through traffic to notice all
of BikeArt's wares on display.  This will be the first step in the
sale process.

The second step is emphasizing all of the work that is done by

local artists and all of the art pieces are made out of recycled
bicycle parts.  Eugene in general seems to be a very close knit
supportive town of local residents, and Eugene shows their support of
their own through the purchase of local products.  Additionally, all
of the artwork is made out of recycled bicycle parts which will be
emphasized as an environmentally sound practice, something that will
be warmly received by Eugenians.
 Sales Forecast

The first month will be used to set up the kiosk and get things
underway.  During this month the part-time employees will be hired
and trained.  Sales will begin slowly during this first month.  From
the second month on, sales will steadily increase because there will
be a steady flow of customers that pass by the kiosk.

SALES FORECAST

YEAR 1 YEAR 2 YEAR 3

Sales

Industrial art collectors $58,229 $115,475 $126,547

Bicycling enthusiasts $87,531 $178,745 $189,785

TOTAL SALES $145,760 $294,220 $316,332

Direct Cost of Sales Year 1 Year 2 Year 3

Industrial art collectors $29,115 $57,738 $63,274

Bicycling enthusiasts $43,766 $89,373 $94,893

Subtotal Direct Cost of Sales $72,880 $147,110 $158,166

 Milestones

BikeArt will have several milestones early on:

Business plan completion. This will be done as a road map for the

organization.  While we do not need a business plan to raise
capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.

1.Set up the kiosk.

2.First turnover of inventory.

3.Revenue exceeding $25,000.

MILESTONES

Milestone Start End Date Budget Manager Department

Date

Business plan 1/1/2001 2/1/2001 $0 ABC Marketing

completion

Set up the kiosk 1/1/2001 2/1/2001 $0 ABC Department

First turnover of 1/1/2001 ****** $0 ABC Department

inventory

Totals $0
 Management Summary

Steve Useitagyen received a joint degree in business

administration and art design from the University of Portland.
Throughout college Steve worked at a bicycle shop, initially as a
mechanic, then moved up to sales, and then after college managed the
shop for two years.

Steve knew at some point in his life that he needed to have his
own business as he preferred to work for himself as opposed to
someone else.  It took his experience as manager of the bike shop to
gain the confidence that he could operate his own business.  With
assurances of his wife's support and her contribution of art work to
sell, Steve undertook the task of writing a business plan for his
dream.

Personnel Plan

Steve will begin the first two weeks setting up the kiosk and
interviewing people.  During the second half of the first month Steve
will hire and train three part-time people to operate the kiosk
during the day.

From month two on, there will always be one of the part-time

employees running the kiosk.  Steve will be taking care of all the
financials, setting up vendor relations, and correcting any problems
that BikeArt encounters. 
PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Steve $36,000 $40,000 $44,000

Part-time employee $10,100 $10,800 $10,800

Part-time employee $10,100 $10,800 $10,800

Part-time employee $10,100 $10,800 $10,800

TOTAL PEOPLE 4 4 4

Total Payroll $66,300 $72,400 $76,400

Financial Plan

The following sections will outline the important financial

assumptions, key financial indicators, Break-even Analysis, profit
and loss, cash flow, and balance sheet.
 Important Assumptions

The following table highlights some of the important financial

assumptions for BikeArt.

GENERAL ASSUMPTIONS

YEAR 1 YEAR 2 YEAR 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0
 7.2 Break-even Analysis

The Break-even Analysis indicates $15,212 is needed in monthly

revenue to reach the break-even point.

BREAK-EVEN ANALYSIS

Monthly Revenue Break-even $15,212

Assumptions:

Average Percent Variable Cost 50%

Estimated Monthly Fixed Cost $7,606

 7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

PRO FORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales $145,760 $294,220 $316,332

Direct Cost of Sales $72,880 $147,110 $158,166

Other $0 $0 $0

TOTAL COST OF SALES $72,880 $147,110 $158,166

Gross Margin $72,880 $147,110 $158,166

Gross Margin % 50.00% 50.00% 50.00%

Expenses

Payroll $66,300 $72,400 $76,400

Sales and Marketing and Other $0 $0 $0

Expenses

Depreciation $624 $624 $624

Leased Equipment $0 $0 $0
Utilities $1,200 $1,200 $1,200

Insurance $1,200 $1,200 $1,200

Rent $12,000 $12,000 $12,000

Payroll Taxes $9,945 $10,860 $11,460

Other $0 $0 $0

Total Operating Expenses $91,269 $98,284 $102,884

Profit Before Interest and Taxes ($18,389) $48,826 $55,282

EBITDA ($17,765) $49,450 $55,906

Interest Expense $1,745 $1,258 $703

Taxes Incurred $0 $11,892 $13,872

Net Profit ($20,134) $35,676 $40,706

Net Profit/Sales -13.81% 12.13% 12.87%

 7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $145,760 $294,220 $316,332

SUBTOTAL CASH FROM OPERATIONS $145,760 $294,220 $316,332

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest- $0 $0 $0

free)

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 $0 $0 $0

SUBTOTAL CASH RECEIVED $145,760 $294,220 $316,332

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $66,300 $72,400 $76,400

Bill Payments $97,938 $194,917 $200,247

SUBTOTAL SPENT ON OPERATIONS $164,238 $267,317 $276,647

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current $0 $0 $0
Borrowing

Other Liabilities Principal $0 $0 $0

Repayment

Long-term Liabilities Principal $4,783 $5,270 $5,825

Repayment

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $169,021 $272,586 $282,472

Net Cash Flow ($23,261) $21,634 $33,860

Cash Balance $18,339 $39,973 $73,833

 Projected Balance Sheet

The following table will indicate the projected balance sheet.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets

Current Assets

Cash $18,339 $39,973 $73,833

Inventory $12,204 $24,634 $26,485

Other Current Assets $0 $0 $0

TOTAL CURRENT ASSETS $30,543 $64,607 $100,319

Long-term Assets

Long-term Assets $3,100 $3,100 $3,100

Accumulated Depreciation $624 $1,248 $1,872

TOTAL LONG-TERM ASSETS $2,476 $1,852 $1,228

TOTAL ASSETS $33,019 $66,459 $101,547

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $13,236 $16,270 $16,476

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $13,236 $16,270 $16,476

Long-term Liabilities $15,217 $9,947 $4,123

TOTAL LIABILITIES $28,453 $26,217 $20,598

Paid-in Capital $25,000 $25,000 $25,000

Retained Earnings ($300) ($20,434) $15,242

Earnings ($20,134) $35,676 $40,706

TOTAL CAPITAL $4,566 $40,242 $80,948

TOTAL LIABILITIES AND CAPITAL $33,019 $66,459 $101,547

Net Worth $4,566 $40,242 $80,948

PERSONNEL PLAN

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

Steve 0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
%

Part- 0 $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
time %
employe
e

Part- 0 $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
time %
employe
e

Part- 0 $200 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
time %
employe
e

TOTAL 4 4 4 4 4 4 4 4 4 4 4 4
PEOPL
E

Total $3,600 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700
Payroll
GENERAL ASSUMPTIONS

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

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

Current 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Interest % % % % % % % % % % % %
Rate

Long- 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
term % % % % % % % % % % % %
Interest
Rate

Tax Rate 30.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00
% % % % % % % % % % % %

Other 0 0 0 0 0 0 0 0 0 0 0 0

PRO FORMA PROFIT AND LOSS

MON MON MON MON MON MON MON MO MO MO MON MON

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

Sales $0 $3,490 $5,112 $6,568 $8,201 $11,49 $13,84 $15,8 $17,8 $19,8 $21,43 $22,18
9 2 23 03 01 2 9

Direct $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,91 $8,90 $9,90 $10,71 $11,09
Cost of 2 2 1 6 5
Sales

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,91 $8,90 $9,90 $10,71 $11,09
COST 2 2 1 6 5
OF
SALES

Gross $0 $1,745 $2,556 $3,284 $4,101 $5,750 $6,921 $7,91 $8,90 $9,90 $10,71 $11,09
Margin 2 2 1 6 5

Gross 0.00% 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00
Margin % % % % % % % % % % % %

Expenses

Payroll $3,600 $5,700 $5,700 $5,700 $5,700 $5,700 $5,700 $5,70 $5,70 $5,70 $5,700 $5,700
0 0 0

Sales and $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing
and Other
Expenses

Depreciati $52 $52 $52 $52 $52 $52 $52 $52 $52 $52 $52 $52
on

Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipmen
t

Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,00 $1,00 $1,00 $1,000 $1,000
0 0 0

Payroll 1 $540 $855 $855 $855 $855 $855 $855 $855 $855 $855 $855 $855
Taxes 5
%

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total $5,392 $7,807 $7,807 $7,807 $7,807 $7,807 $7,807 $7,80 $7,80 $7,80 $7,807 $7,807
Operating 7 7 7
Expenses

Profit ($5,39 ($6,06 ($5,25 ($4,52 ($3,70 ($2,05 ($886) $105 $1,09 $2,09 $2,909 $3,288
Before 2) 2) 1) 3) 7) 8) 5 4
Interest
and Taxes

EBITDA ($5,34 ($6,01 ($5,19 ($4,47 ($3,65 ($2,00 ($834) $157 $1,14 $2,14 $2,961 $3,340
0) 0) 9) 1) 5) 6) 7 6

Interest $163 $160 $157 $154 $151 $147 $144 $141 $137 $134 $130 $127
Expense

Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incurred

Net Profit ($5,55 ($6,22 ($5,40 ($4,67 ($3,85 ($2,20 ($1,03 ($36) $957 $1,96 $2,779 $3,161
5) 2) 8) 7) 7) 5) 0) 0

Net 0.00% - - - - - - - 5.38 9.90 12.97 14.24

Profit/Sale 178.29 105.79 71.21 47.03 19.17 7.44% 0.23 % % % %
s % % % % % %

PRO FORMA CASH FLOW

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

Cash
Received

Cash
from
Operation
s
Cash $0 $3,49 $5,11 $6,56 $8,20 $11,4 $13,8 $15,8 $17,8 $19,8 $21,4 $22,1
Sales 0 2 8 1 99 42 23 03 01 32 89

SUBTOT $0 $3,49 $5,11 $6,56 $8,20 $11,4 $13,8 $15,8 $17,8 $19,8 $21,4 $22,1
AL 0 2 8 1 99 42 23 03 01 32 89
CASH
FROM
OPERA
TIONS

Additiona
l Cash
Received

Sales 0.0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax, 0%
VAT,
HST/GST
Received

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Borrowin
g

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Liabilities
(interest-
free)

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Liabilities

Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets

Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Assets

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investme
nt
Received

SUBTOT $0 $3,49 $5,11 $6,56 $8,20 $11,4 $13,8 $15,8 $17,8 $19,8 $21,4 $22,1
AL 0 2 8 1 99 42 23 03 01 32 89
CASH
RECEIV
ED

Expenditu Month Month Month Month Month Month Month Mont Mont Mont Mont Month
res 1 2 3 4 5 6 7 h8 h9 h 10 h 11 12

Expenditu
res from
Operation
s

Cash $3,60 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70 $5,70
Spending 0 0 0 0 0 0 0 0 0 0 0 0

Bill $63 $2,03 $5,87 $5,68 $6,32 $7,29 $9,78 $10,4 $11,2 $12,2 $13,2 $13,7
Payments 6 2 1 4 0 7 35 29 16 08 95

SUBTOT $3,66 $7,73 $11,5 $11,3 $12,0 $12,9 $15,4 $16,1 $16,9 $17,9 $18,9 $19,4
AL 3 6 72 81 24 90 87 35 29 16 08 95
SPENT
ON
OPERA
TIONS

Additiona
l Cash
Spent

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax,
VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayme
nt of
Current
Borrowin
g

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayme
nt

Long- $381 $384 $387 $390 $393 $397 $400 $403 $407 $410 $414 $417
term
Liabilities
Principal
Repayme
nt

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

SUBTOT $4,04 $8,12 $11,9 $11,7 $12,4 $13,3 $15,8 $16,5 $17,3 $18,3 $19,3 $19,9
AL 4 0 59 71 17 86 87 38 36 26 22 12
CASH
SPENT

Net Cash ($4,04 ($4,63 ($6,84 ($5,20 ($4,21 ($1,88 ($2,04 ($715 $467 $1,47 $2,11 $2,27
Flow 4) 0) 7) 3) 6) 7) 5) ) 5 0 7

Cash $37,5 $32,9 $26,0 $20,8 $16,6 $14,7 $12,7 $12,0 $12,4 $13,9 $16,0 $18,3
Balance 56 26 79 75 59 72 27 11 78 52 62 39
PRO FORMA BALANCE SHEET

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

Assets Starti
ng
Balan
ces

Current
Assets

Cash $41,6 $37,5 $32,92 $26,07 $20,87 $16,65 $14,77 $12,72 $12,01 $12,47 $13,95 $16,06 $18,33
00 56 6 9 5 9 2 7 1 8 2 2 9

Inventory $0 $0 $1,920 $2,812 $3,612 $4,511 $6,324 $7,613 $8,703 $9,792 $10,89 $11,78 $12,20
1 8 4

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets

TOTAL $41,6 $37,5 $34,84 $28,89 $24,48 $21,17 $21,09 $20,34 $20,71 $22,27 $24,84 $27,85 $30,54
CURRE 00 56 6 1 8 0 6 0 4 0 3 0 3
NT
ASSETS

Long-
term
Assets

Long- $3,10 $3,10 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100
term 0 0
Assets

Accumul $0 $52 $104 $156 $208 $260 $312 $364 $416 $468 $520 $572 $624
ated
Depreciat
ion
TOTAL $3,10 $3,04 $2,996 $2,944 $2,892 $2,840 $2,788 $2,736 $2,684 $2,632 $2,580 $2,528 $2,476
LONG- 0 8
TERM
ASSETS

TOTAL $44,7 $40,6 $37,84 $31,83 $27,38 $24,01 $23,88 $23,07 $23,39 $24,90 $27,42 $30,37 $33,01
ASSETS 00 04 2 5 0 0 4 6 8 2 3 8 9

Liabilities Mont Month Month Month Month Month Month Month Month Month Month Month
and h1 2 3 4 5 6 7 8 9 10 11 12
Capital

Current
Liabilities

Accounts $0 $1,84 $5,684 $5,472 $6,084 $6,964 $9,440 $10,06 $10,82 $11,77 $12,74 $13,33 $13,23
Payable 0 2 3 7 9 8 6

Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowin
g

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities

SUBTOT $0 $1,84 $5,684 $5,472 $6,084 $6,964 $9,440 $10,06 $10,82 $11,77 $12,74 $13,33 $13,23
AL 0 2 3 7 9 8 6
CURRE
NT
LIABILI
TIES

Long- $20,0 $19,6 $19,23 $18,84 $18,45 $18,06 $17,66 $17,26 $16,86 $16,45 $16,04 $15,63 $15,21
term 00 19 6 9 9 5 8 8 5 8 8 4 7
Liabilities

TOTAL $20,0 $21,4 $24,92 $24,32 $24,54 $25,02 $27,10 $27,33 $27,68 $28,23 $28,79 $28,97 $28,45
LIABILI 00 60 0 0 3 9 9 0 8 5 6 2 3
TIES

Paid-in $25,0 $25,0 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00 $25,00
Capital 00 00 0 0 0 0 0 0 0 0 0 0 0
Retained ($300 ($300 ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300) ($300)
Earnings ) )

Earnings $0 ($5,5 ($11,7 ($17,1 ($21,8 ($25,7 ($27,9 ($28,9 ($28,9 ($28,0 ($26,0 ($23,2 ($20,1
55) 78) 86) 63) 20) 24) 54) 90) 33) 73) 95) 34)

TOTAL $24,7 $19,1 $12,92 $7,514 $2,837 ($1,02 ($3,22 ($4,25 ($4,29 ($3,33 ($1,37 $1,405 $4,566
CAPITA 00 45 2 0) 4) 4) 0) 3) 3)
L

TOTAL $44,7 $40,6 $37,84 $31,83 $27,38 $24,01 $23,88 $23,07 $23,39 $24,90 $27,42 $30,37 $33,01
LIABILI 00 04 2 5 0 0 4 6 8 2 3 8 9
TIES
AND
CAPITA
L

Net $24,7 $19,1 $12,92 $7,514 $2,837 ($1,02 ($3,22 ($4,25 ($4,29 ($3,33 ($1,37 $1,405 $4,566
Worth 00 45 2 0) 4) 4) 0) 3) 3)