[COMPANY NAME]

Business Plan 
 

Contact: [NAME]

Direct Phone: XXX-XXX-XXXX

[ADDRESS]

[CITY, STATE ZIP]

Email: [EMAIL]

 
 Confidentiality Agreement

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

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

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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

 [COMPANY NAME] 2010

1.0 Executive Summary................................................................................................................3

Chart: Highlights....................................................................................................................4
1.1 Objectives...........................................................................................................................4
1.2 Mission................................................................................................................................4
1.3 Keys to Success.................................................................................................................5
2.0 Company Summary................................................................................................................6
2.1 Company Ownership..........................................................................................................6
2.2 Start-up Summary...............................................................................................................6
Table: Start-up.......................................................................................................................6
Chart: Start-up.......................................................................................................................7
3.0 Products and Services............................................................................................................8
4.0 Market Analysis Summary......................................................................................................9
4.1 Market Segmentation..........................................................................................................9
Table: Market Analysis..........................................................................................................9
Chart: Market Analysis (Pie)..................................................................................................9
4.2 Target Market Segment Strategy......................................................................................10
4.3 Service Business Analysis................................................................................................10
4.3.1 Competition and Buying Patterns..............................................................................10
5.0 Web Plan Summary..............................................................................................................11
5.1 Website Marketing Strategy..............................................................................................11
5.2 Development Requirements.............................................................................................11
6.0 Strategy and Implementation Summary...............................................................................12
6.1 SWOT Analysis.................................................................................................................12
6.1.1 Strengths....................................................................................................................12
6.1.2 Weaknesses...............................................................................................................12
6.1.3 Opportunities..............................................................................................................12
6.1.4 Threats.......................................................................................................................12
6.2 Competitive Edge..............................................................................................................12
6.3 Marketing Strategy............................................................................................................13
6.4 Sales Strategy...................................................................................................................13
6.4.1 Sales Forecast...........................................................................................................13
Table: Sales Forecast......................................................................................................14
Chart: Sales Monthly.......................................................................................................15
Chart: Sales by Year........................................................................................................15
6.5 Milestones.........................................................................................................................16
Table: Milestones................................................................................................................16
7.0 Management Summary........................................................................................................17
7.1 Personnel Plan..................................................................................................................17
Table: Personnel.................................................................................................................17
8.0 Financial Plan.......................................................................................................................18
8.1 Start-up Funding...............................................................................................................18
Table: Start-up Funding.......................................................................................................18
8.2 Important Assumptions.....................................................................................................19
8.3 Break-even Analysis.........................................................................................................20
Table: Break-even Analysis................................................................................................20
Chart: Break-even Analysis.................................................................................................20
8.4 Projected Profit and Loss..................................................................................................21
Table: Profit and Loss.........................................................................................................21

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 [COMPANY NAME] 2010

Chart: Profit Monthly............................................................................................................23

Chart: Profit Yearly..............................................................................................................23
Chart: Gross Margin Monthly..............................................................................................24
Chart: Gross Margin Yearly.................................................................................................24
8.5 Projected Cash Flow.........................................................................................................25
Table: Cash Flow................................................................................................................25
Chart: Cash.........................................................................................................................26
8.6 Projected Balance Sheet..................................................................................................27
Table: Balance Sheet..........................................................................................................27
8.7 Business Ratios................................................................................................................28
Table: Ratios.......................................................................................................................28
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Profit and Loss...................................................................................................................3
Table: Cash Flow..........................................................................................................................4
Table: Balance Sheet...................................................................................................................5

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 [COMPANY NAME] 2010

1.0 Executive Summary

[COMPANY NAME]
Contact: [NAME]
Direct Phone: XXX-XXX-XXXX
[ADDRESS]
[CITY, STATE ZIP]
Email: [EMAIL]

Introduction

 [COMPANY NAME] will provide vehicle maintenance and repair to [CITY], OK and surrounding areas. 

Location

[NAME] is looking to purchase a 7,900 sq ft shop in [CITY], [STATE] upon receipt of grant funding.

Company

The Company offers vehicle mechanical repair services. [COMPANY NAME] will be a sole proprietorship owned
100% by [NAME]. [NAME] has been in the mechanical repair service business for over 30 years. [COMPANY
NAME] will be committed to quality and service. The Company's 100% Satisfaction Guarantee is our personal
commitment to creating long-term relationships with our customers. 

Services

[COMPANY NAME] will provide vehicle repair and maintenance such as, Transmission repair, Front-End
Alignment, Diesel repair, Differential repair, Air-conditioning/heater repair, Brakes, Struts, Oil & Lube, and Tune-
ups.

The Market

[COMPANY NAME] will be located in [CITY], [STATE]. The Company will target the surrounding area of [CITY]
along with three surrounding counties of: Gavin, Murray and McClain.

 Financial Considerations

The current financial plan for [COMPANY NAME] is to obtain grant funding in the amount of $303,000. The grant
will be used to launch a mechanical repair shop including leasehold improvements, purchase equipment,
purchase of office furniture, fixtures and equipment, create our website, hiring employees and launching an
advertising campaign.

The major focus for grant funding is as follows

.
1. Launch vehicle maintenance and repair shop.
2. Purchase energy efficient maintenance shop.
3. Purchase recycled materials.
4. Hire employees; the Company will look to hire veterans, minorities, disabled persons and the unemployed. 

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 [COMPANY NAME] 2010

Chart: Highlights

Highlights

$400,000

$360,000

$320,000

$280,000
Sales
$240,000
Gross Margin
$200,000
Net Profit
$160,000

$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

1.1 Objectives

The objectives for [COMPANY NAME] are outlined below:

1. To create a service-base company whose goal is to exceed customer's expectations and becomes a return
client.
2. Sales increase to over $350,000 by end of second year and $400,000 by end of third year.
3. To increase the number of clients services by at least 20% per year through superior performance and word-
of mouth referrals.
4. Have a clientele return rate of 90% by end of first year.
5. Become an established community destination by end of first year.
6. To hire local employees to help stimulate the economy.
7. To bring back the community's trust in the auto repair industry.
8. To provide excellent service for domestic and foreign automobiles.

1.2 Mission

[COMPANY NAME] mission is to help stimulate the economy in [CITY].  They will not only hire up to four full-time
employees, but will create business for other companies that are already in business (e.g. [COMPANY NAME],
[COMPANY NAME]) and various auto parts dealerships on the internet.  The goal is to give customers quality
workmanship at a more reasonable price than that of the competition.  Most independent shops operate on a
cash basis; [COMPANY NAME] will be set up to take and clear checks and most credit cards. They will also
have experienced technicians to deliver the customers vehicles back repaired faster than our competition.

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 [COMPANY NAME] 2010

1.3 Keys to Success

The keys to success in business are:

 Superior Customer Service: Provide fast, friendly and quality service.

 Environment: provide a clean, upscale, odor free, enjoyable environment conducive to giving professional
trusting service.
 Convenience: offering clients a wide range of services in one environment.
 Location: provide an easily accessible location for customer convenience.
 Reputation: credibility, integrity, and 100% dedication from 30 years mechanical experience working in an
auto dealership.

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 [COMPANY NAME] 2010

2.0 Company Summary

[COMPANY NAME] is the desire of [NAME] to start vehicle maintenance and repair shop.  With [NAME]
experience of over 30 years experience as an auto mechanic at an auto dealership, his desire is to start up their
own company and offer better service to their clients than their competitors.

The company will be a sole proprietor company owned 100% by [NAME] registered in the state of [STATE]. The
company will be based in [CITY]. The facility will contain a two-bay garage, office space and storage space for
tools, parts, etc.

The company is seeking a grant in order to finance the start of operations for the company. The owners will be
putting up some of their own capital as equity.

2.1 Company Ownership

[COMPANY NAME] will be created as a sole proprietorship based in Garvin County, privately owned by its
principal operator.

2.2 Start-up Summary

The data obtained for the start-up comes from research done in the Paul' Valley area with other small mechanic
shops who have started their own business. Inflation has been taken into account between the estimates of
these fellow business owners (and when they started) and the current prices for expensed items. Much of the
equipment to go into the facilities such as tools, air compressors, scanners, etc., will be purchased with the grant
funding.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $2,000
Stationery etc. $1,000
Insurance $1,000
Marketing and Advertising $500
Office Equipment and Supplies $3,500
Other $2,000
Total Start-up Expenses $10,000

Start-up Assets
Cash Required $97,640
Start-up Inventory $10,560
Other Current Assets $0
Long-term Assets $184,800
Total Assets $293,000

Total Requirements $303,000

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 [COMPANY NAME] 2010

Chart: Start-up

Start-up

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Expenses Assets Investment Loans

Page 29
 [COMPANY NAME] 2010

3.0 Products and Services

[COMPANY NAME] will offer a wide range of services. It is ultimately the goal of the company to offer a one-stop
facility for all auto-servicing needs, including brakes, transmission, wheel alignment, etc. In this way, the
company can offer greater perceived value for the customer than many other shops, which specialize in certain
areas.

 The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the
prices of their products and services to repair shops. In addition, because the customers see the service as
undifferentiated and a "commodity" with little value separation between competitors, buyer power is also very
high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including
substitutes (such as do-it-yourself work) means that the pricing for such services are very competitive. The only
way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create
higher switching costs through the building of strong business to customer ties.

[COMPANY NAME] will hire trained and certified mechanics that are able to prove they have superior customer
awareness and interaction. It is the company's professional people who will fulfill the firm's contracts and goals.
The largest part of the company's expenses will be in labor costs.

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 [COMPANY NAME] 2010

4.0 Market Analysis Summary

Since [COMPANY NAME] will be able to service any vehicle on the road, including motorcycles and campers, it
does not make any sense to segment our market. Our potential customer includes every
household in [CITY] that owns one or more vehicles. The industry does not have any seasonality that affects it.

4.1 Market Segmentation

The following table and chart show the market analysis for [COMPANY NAME].

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Vehicles in [CITY] 3% 2,475 2,549 2,625 2,704 2,785 2.99%
Vehicles in Garvin 3% 10,865 11,191 11,527 11,873 12,229 3.00%
County
Vehicles in Murray 3% 5,003 5,153 5,308 5,467 5,631 3.00%
county
Vehicles in McClain 3% 10,331 10,641 10,960 11,289 11,628 3.00%
county
Total 3.00% 28,674 29,534 30,420 31,333 32,273 3.00%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Vehicles in Pauls Valley

Vehicles in Garvin County

Vehicles in Murray county

Vehicles in McClain county

Page 29
 [COMPANY NAME] 2010

4.2 Target Market Segment Strategy

Our choice of target markets is based on comprehensive experience within the transportation industry coupled
with an in-depth understanding of the customer's needs. The company has a modest program of marketing its
services that include the following:

1.   Word of mouth.

2.   Flyers.
3.   Direct mailers.
4.   Discounts.
5.   Newspaper ads.
6.   Yellow pages.
7.   Referrals through other local businesses.
8.   Website

Each of these marketing approaches has the advantage of being low cost and creating service awareness. The
company's long-term marketing goals are to use local radio and TV ads. The company is also investigating the
possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and
other promotional ideas.

4.3 Service Business Analysis

This section is covered in the Competitive Comparison section of the Plan.

4.3.1 Competition and Buying Patterns

While many customers looking to purchase automotive repair services are concerned with price, the primary
concern is with building a relationship of trust between themselves and their service provider. A large number of
people within the country have experienced or heard of bad service encounters within this market. As a person's
car is usually connected in one way or another with that individual's livelihood, a dependable automobile is
crucial. Therefore, many clients are willing to pay a little more for a mechanic they feel does a quality job and
understands their needs.

An automotive repair company that can anticipate, meet, and even exceed customer's needs can build a
defensible position within the market place and acquire market share at the expense of other rivals.

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 [COMPANY NAME] 2010

5.0 Web Plan Summary

[COMPANY NAME] website will be created to provide feedback and also to diagnose small mechanical
problems. The website be a simple, yet elegant and well designed, website that stays current with the latest
trends and provides information to the customers and a portal to our services. A site that is too flashy, or tries to
use too much of the latest Shockwave of Flash technology can be overdone, and cause potential clients to look
elsewhere for products or information.

5.1 Website Marketing Strategy

[COMPANY NAME] will maintain a two-way link between the website and their customers. In addition to using
the page as a service tool, the business will develop a page dedicated to feedback.

5.2 Development Requirements

The [COMPANY NAME] website will be initially developed with few technical resources. A simple hosting
provider will host the site and provide the technical back end.

The maintenance of the site will be done by [NAME] an employee of [COMPANY NAME]. As the website rolls out
future development, a technical resource may need to be contracted to build the tractable download and other
capabilities.

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 [COMPANY NAME] 2010

6.0 Strategy and Implementation Summary

[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 below are achieved. 

6.1 SWOT Analysis

[COMPANY NAME] main strength lies in the reputation [NAME] has built for himself as a successful and reliable
auto mechanic. This is primarily due to the three decades of experience he has within this industry.   The only
current weakness is in the lack of working capital to start-up the business. This can be overcome, however, with
the receipt of grant funding. Although there are threats posed to [COMPANY NAME] from further economic
downswings, these can be lessened by the Company taking advantage of its opportunities in the form of
increasing its market share as well as receiving grant funding.

6.1.1 Strengths

[COMPANY NAME] main strength lies in [NAME]'s 30 years of experience in automotive repair. His area of
expertise lies not just in repairs but also in changing parts.  He is greatly valued for the work he does by his
customers and has therefore built up a solid reputation within a three county area.

6.1.2 Weaknesses

[COMPANY NAME] weaknesses come from the lack of funding to start-up business. Grant funds will be used to
launch our garage including, purchase building, building improvements, purchase equipment, purchase of office
furniture, fixtures and equipment, purchase of bay lifts and mechanical parts, creating our website, hiring
employees and launching an advertising campaign.

6.1.3 Opportunities

The Company's main opportunity lies in taking advantage of its target market and capitalizing on it, by securing
grant funding.

6.1.4 Threats

The only obstacle to [COMPANY NAME] success would be further downswings in the economy.

6.2 Competitive Edge

[COMPANY NAME] competitive edge lies in the vision of its owner, who understand better than many of their
rivals that a service visit does not just include repairing a client's car, it includes the entire service experience
from the first time a client talks to their mechanic until they decide to stop driving. The long-term profitability of a
service firm of this type lies in the repeat customer that finds [COMPANY NAME] services an excellent
experience, DESPITE the fact that they usually have suffered a inconvenient breakdown. The company will seek
to examine ALL aspects of the service experience to seek ways to improve its customer satisfaction. In addition,
all employees will be rigorously trained and retrained to think about customer satisfaction in order to create a
self-sustaining company culture that revolves around this issue.

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 [COMPANY NAME] 2010

6.3 Marketing Strategy

The key element of the marketing strategy for this business is referrals from past and present customers. 
[COMPANY NAME] recognizes the need to advertise this new service.  Advertising the services is planned to
increase business faster than simply relying on word-of-mouth referrals alone.  The company's main advertising
effort will be newspaper ads in local publications within the surrounding counties.  Other advertising, such as
creating a website will also be done. 

Each of these marketing approaches has the advantage of being low cost and creating service awareness. The
company's long-term marketing goals are to use local radio and TV ads.

6.4 Sales Strategy

Since the automotive repair industry is, operationally, a job-shop environment, it is somewhat difficult to estimate
sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once
an order is made. However, the sales forecast reflect the professional opinion of [OWNER] in how much sales he
will make based on the following assumptions:

1.   The number of clients [NAME] can attract from his previous companies.

2.   The effect of planned promotions and word-of-mouth marketing.

3.   Current prices and costs of doing business.

4.   The types of automobiles and jobs that will occur in every month.

For the most part, sales for an automobile repair firm are steady year round and reflect little seasonality.
The table and charts below outline the sales forecast.   Three years of annual sales and costs of sales are
shown.   Twelve monthly tallies are included in the appendices.

6.4.1 Sales Forecast

[COMPANY NAME] exists in a purely competitive environment where each firm must be a price taker. In other
words, the firm has no ability to affect the market price of its services, regardless of how many automobiles it
repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit)
is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, [COMPANY
NAME] can service automobiles at total capacity without affecting the price.

What all of this means for [COMPANY NAME] is that the company must seek to charge its clients at the market
price (or lower). Research has shown that the average price is approximately $400 per vehicle. As long as
marginal costs do not exceed revenues, the method to maximize short run profits is to service automobiles at
maximum capacity. This means that [COMPANY NAME] can expect an ROA of approximately 4.5%

The sales for year one, year two and year three are projected to be $316,800.00, $364,320.00, and $400,752.00,
respectively.  The cost of sales for year one, year two and year three are projected to be, $87,120.00,
$81,972.00, and $90,169.00, respectively. Direct Cost of Sales is made up of parts. 

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 [COMPANY NAME] 2010

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Service Revenue $142,560 $163,944 $180,338
Parts Billings $174,240 $200,376 $220,414
Total Sales $316,800 $364,320 $400,752

Direct Cost of Sales Year 1 Year 2 Year 3

Parts Costs $87,120 $81,972 $90,169
$0 $0 $0
Subtotal Direct Cost of Sales $87,120 $81,972 $90,169

Page 29
 Month
3 M4
[COMPANY NAME] 2010

MonthMonth
1 Month
2
Chart: Sales Monthly

Sales Monthly

$32,000

$28,000

$24,000

$20,000 Service Revenue

$16,000 Parts Billings

$12,000

$8,000

$4,000

$0

Chart: Sales by Year

Sales by Year

$400,000

$350,000

$300,000
Service Revenue
$250,000
Parts Billings
$200,000

$150,000

$100,000

$50,000

$0
Year 1 Year 2 Year 3

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 [COMPANY NAME] 2010

6.5 Milestones

In order to achieve the growth and marketing goals that have been outlined in this business plan, the
Company has the following deadlines to meet and ideas to implement. The plan will take effect on date of grant
funding. Some of these are outlined below:

1. Obtain Grant funding to expand, grow and improve the business.

2. Secure a location in Paul's Valley, [STATE] to launch our mechanical garage.
3. Construction/Leasehold Improvements in the Company's retail location.
4. Purchase four bay lifts.
5. Purchase computers, office equipment, office furniture and fixtures.
6. Purchase mechanical equipment, such as, scanners, parts, and tools.
7. Hire employees, the Company will look to hire minorities, veterans, disabled persons and the unemployed.
8. Update our website and social media.
9. Launch an advertising campaign.
10. Working Capital to support operation until cash flow profitability. 

This milestone table is only for the purpose of reviewing the direction, not an actual financial statement.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Purchase building 4/1/2011 4/30/2011 $163,000 Owner Operations
Purchase Equipment 4/1/2011 4/30/2011 $3,000 Owner Operations
Leasehold 5/1/2011 5/31/2011 $2,000 Owner Operations
Improvements
Start-up expenses 4/1/2011 5/31/2011 $10,000 Owner Administration
Marketing and 4/1/2011 5/31/2011 $500 Owner Marketing
Advertising
Hire Employees 5/1/2011 12/31/2011 $115,000 Owner Administration

Totals $293,500

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 [COMPANY NAME] 2010

7.0 Management Summary

[NAME] has been working as a mechanic for over 30 years. During that time, he has worked for a variety of
automotive shops and dealerships and has numerous certificates in automobile repair industry. He has extensive
experience in engine repair & service, transmission repair & service, as well as, differential repair and service.
[NAME] also works at his residence in the evenings and weekends of vehicles for friends and acquaintances as
far away as 3 counties.  

7.1 Personnel Plan

[COMPANY NAME] initial staffing will consist of [NAME], two general mechanics, a secretary that will perform
accounting, meet and greet customers, and starting repair orders. The company will seek  additional entry level
mechanics to be hired after the company is operating. However, management has decided to await future
developments before determining the best time to bring on such personnel.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
[NAME], Owner $57,600 $59,328 $61,108
[NAME], Secretary $19,992 $20,592 $21,210
[NAME], General Mechanic $17,280 $17,798 $18,332
[NAME], General Mechanic $31,680 $32,630 $33,609
Total People 4 4 4

Total Payroll $126,552 $130,349 $134,259

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 [COMPANY NAME] 2010

8.0 Financial Plan

The current financial plan for [COMPANY NAME] is to obtain grant funding in the amount of $303,000. The grant
will be used to launch our repair shop, including leasehold improvements, equipment, purchase of office
furniture, fixtures and equipment, creating our website, hiring employees and launching an advertising campaign.

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 Start-up Funding

[COMPANY NAME] start-up funds are summarized in the following table:

 Start-up Expenses to Fund $10,000, Start-up Assets to Fund $293,000, Total Funding Required $303,000,
Assets:  Non-cash Assets from Start-up $195,360, Cash Requirements from Start-up $97,640, the additional
capital is needed to fund salaries, inventory lags and other costs during the first months of the business year.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $10,000
Start-up Assets to Fund $293,000
Total Funding Required $303,000

Assets
Non-cash Assets from Start-up $195,360
Cash Requirements from Start-up $97,640
Additional Cash Raised $0
Cash Balance on Starting Date $97,640
Total Assets $293,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

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 [COMPANY NAME] 2010

Capital

Planned Investment
Owner $0
Investor $303,000
Additional Investment Requirement $0
Total Planned Investment $303,000

Loss at Start-up (Start-up Expenses) ($10,000)

Total Capital $293,000

Total Capital and Liabilities $293,000

Total Funding $303,000

8.2 Important Assumptions

The table below presents the assumptions used in the financial calculations of this business plan.

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 [COMPANY NAME] 2010

8.3 Break-even Analysis

For the Company's break-even analysis for 2011, the monthly revenue break-even is projected to

be $25,113. Sales are projected to increase 3% for 2011, 2012 and 2013 periods due to the internal expansion
of the Company.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $25,113

Assumptions:
Average Percent Variable Cost 28%
Estimated Monthly Fixed Cost $18,207

Chart: Break-even Analysis

Break-even Analysis

$12,000

$9,000

$6,000

$3,000

$0

($3,000)

($6,000)

($9,000)

($12,000)

($15,000)

($18,000)
$0 $8,000 $16,000 $24,000 $32,000 $40,000
$4,000 $12,000 $20,000 $28,000 $36,000 $44,000

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 [COMPANY NAME] 2010

8.4 Projected Profit and Loss

[COMPANY NAME] Pro Forma Profit and Loss statement was constructed based in large part on the current
economic conditions and investments in machinery.

The sales for 2011, 2012 and 2013 are projected to be $316,800, $364,320 and $400,752, respectively. Gross
Profit is expected to be 72.50% in 2011 and 77.50% in 2012 and 2013. The Garage will show a net profit for
2011, 2012 and 2013 of $7,838, $40,118 and $55,156, respectively.  The Garage will show an EBITDA
of $55,495 in 2011, $102,938 in 2012 and $125,790 in 2013. The Operating expenses for this period
were $218,483, 225,037, and $231,778 respectively. The percentages of the net profit to sales for this period
were 2.47%%, 11.01% and 13.76% 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 77%
range in 2014/2015 and future years. Operating Expenses to Sales will continue to decrease in 2014/2015 and
future years. Net Profit and Net Profit to Sales Percentage will continue to rise in future years as the internal
expansion and investments in equipment bear fruit.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $316,800 $364,320 $400,752
Direct Cost of Sales $87,120 $81,972 $90,169
Other Costs of Sales $0 $0 $0
Total Cost of Sales $87,120 $81,972 $90,169

Gross Margin $229,680 $282,348 $310,583

Gross Margin % 72.50% 77.50% 77.50%

Expenses
Payroll $126,552 $130,349 $134,259
Marketing/Promotion $3,942 $4,060 $4,182
Depreciation $44,298 $45,627 $46,996
Utilities $6,003 $6,183 $6,369
Insurance $1,500 $1,545 $1,591
Payroll Taxes $18,983 $19,552 $20,139
Other $1,016 $1,046 $1,078
Advertising $4,002 $4,122 $4,246
Legal $1,500 $1,545 $1,591
Office Supplies $497 $512 $527
Web Design $1,008 $1,038 $1,069
Auto Expense $1,150 $1,184 $1,220
Equipment Expense $3,832 $3,947 $4,065
Telephone $1,206 $1,243 $1,280
Repair/Maintenance $1,987 $2,046 $2,108
Inventory $1,008 $1,038 $1,069

Total Operating Expenses $218,483 $225,037 $231,788

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 [COMPANY NAME] 2010

Profit Before Interest and Taxes $11,197 $57,311 $78,795

EBITDA $55,495 $102,938 $125,790
Interest Expense $0 $0 $0
Taxes Incurred $3,359 $17,193 $23,638

Net Profit $7,838 $40,118 $55,156

Net Profit/Sales 2.47% 11.01% 13.76%

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 [COMPANY NAME] 2010

Chart: Profit Monthly

Profit Monthly

$2,000

$1,500

$1,000

$500

$0

($500)

($1,000)

($1,500)

($2,000)
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Profit Yearly

Profit Yearly

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
Year 1 Year 2 Year 3

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 [COMPANY NAME] 2010

Chart: Gross Margin Monthly

Gross Margin Monthly

$24,000

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Gross Margin Yearly

Gross Margin Yearly

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

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 [COMPANY NAME] 2010

8.5 Projected Cash Flow

[COMPANY NAME] has applied for a grant of $303,000. The Garage forecast that it'll receive $303,000 in the
month of April 2011. Upon receipt of grant funding the Garage will purchase a 7,900 sq ft building, four bay
lifts, tools, and hand held software equipment.

The following table displays the Garage's cash flow, and the 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

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $316,800 $364,320 $400,752
Subtotal Cash from Operations $316,800 $364,320 $400,752

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 $0 $0 $0
Subtotal Cash Received $316,800 $364,320 $400,752

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $126,552 $130,349 $134,259
Bill Payments $122,737 $147,550 $164,492
Subtotal Spent on Operations $249,289 $277,899 $298,751

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 $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $249,289 $277,899 $298,751

Net Cash Flow $67,511 $86,421 $102,001

Cash Balance $165,151 $251,572 $353,573

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 MonthMo
3
[COMPANY NAME] 2010

MonthMonth
1 2
Chart: Cash

Cash

$160,000

$140,000

$120,000

$100,000 Net Cash Flow

$80,000 Cash Balance

$60,000

$40,000

$20,000

$0

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 [COMPANY NAME] 2010

8.6 Projected Balance Sheet

The table below presents the balance sheet for [COMPANY NAME]. This table reflects a positive cash position
throughout the period of this financial plan through 2013.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $165,151 $251,572 $353,573
Inventory $9,179 $6,469 $8,319
Other Current Assets $0 $0 $0
Total Current Assets $174,330 $258,041 $361,892

Long-term Assets
Long-term Assets $184,800 $184,800 $184,800
Accumulated Depreciation $44,298 $89,925 $136,921
Total Long-term Assets $140,502 $94,875 $47,879
Total Assets $314,832 $352,916 $409,771

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $13,994 $11,960 $13,660
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $13,994 $11,960 $13,660

Long-term Liabilities $0 $0 $0
Total Liabilities $13,994 $11,960 $13,660

Paid-in Capital $303,000 $303,000 $303,000

Retained Earnings ($10,000) ($2,162) $37,956
Earnings $7,838 $40,118 $55,156
Total Capital $300,838 $340,956 $396,112
Total Liabilities and Capital $314,832 $352,916 $409,771

Net Worth $300,838 $340,956 $396,112

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 [COMPANY NAME] 2010

8.7 Business Ratios

The table below presents the projected business ratios from the General Automotive Maintenance Industry as a
reference with sales from $1,000,000 - $4,999,999.

Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 15.00% 10.00% -0.95%

Percent of Total Assets

Inventory 2.92% 1.83% 2.03% 13.40%
Other Current Assets 0.00% 0.00% 0.00% 36.14%
Total Current Assets 55.37% 73.12% 88.32% 61.83%
Long-term Assets 44.63% 26.88% 11.68% 38.17%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 4.44% 3.39% 3.33% 30.66%

Long-term Liabilities 0.00% 0.00% 0.00% 58.05%
Total Liabilities 4.44% 3.39% 3.33% 88.70%
Net Worth 95.56% 96.61% 96.67% 11.30%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 72.50% 77.50% 77.50% 53.42%
Selling, General & Administrative Expenses 70.03% 66.49% 63.74% 22.29%
Advertising Expenses 1.24% 1.11% 1.04% 1.36%
Profit Before Interest and Taxes 3.53% 15.73% 19.66% 6.01%

Main Ratios
Current 12.46 21.57 26.49 1.53
Quick 11.80 21.03 25.88 1.09
Total Debt to Total Assets 4.44% 3.39% 3.33% 88.70%
Pre-tax Return on Net Worth 3.72% 16.81% 19.89% 245.85%
Pre-tax Return on Assets 3.56% 16.24% 19.23% 27.77%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 2.47% 11.01% 13.76% n.a
Return on Equity 2.61% 11.77% 13.92% n.a

Activity Ratios
Inventory Turnover 11.92 10.48 12.20 n.a
Accounts Payable Turnover 9.77 12.17 12.17 n.a
Payment Days 27 33 28 n.a
Total Asset Turnover 1.01 1.03 0.98 n.a

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 [COMPANY NAME] 2010

Debt Ratios
Debt to Net Worth 0.05 0.04 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $160,336 $246,081 $348,233 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.99 0.97 1.02 n.a
Current Debt/Total Assets 4% 3% 3% n.a
Acid Test 11.80 21.03 25.88 n.a
Sales/Net Worth 1.05 1.07 1.01 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 29
 Appendix

Table: Sales Forecast

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales
Service Revenue $9,000 $9,000 $9,000 $11,000 $11,000 $11,000 $12,500 $12,500 $12,500 $15,020 $15,020 $15,020
Parts Billings $11,000 $11,000 $11,000 $13,444 $13,444 $13,444 $15,278 $15,278 $15,278 $18,358 $18,358 $18,358
Total Sales $20,000 $20,000 $20,000 $24,444 $24,444 $24,444 $27,778 $27,778 $27,778 $33,378 $33,378 $33,378

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Parts Costs 50% $5,500 $5,500 $5,500 $6,722 $6,722 $6,722 $7,639 $7,639 $7,639 $9,179 $9,179 $9,179
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost $5,500 $5,500 $5,500 $6,722 $6,722 $6,722 $7,639 $7,639 $7,639 $9,179 $9,179 $9,179
of Sales

Page 1
 Appendix

Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month 12
10 11
[NAME], Owner $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
[NAME], Secretary $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
[NAME], General $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440
Mechanic
[NAME], General $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640
Mechanic
Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales $20,000 $20,000 $20,000 $24,444 $24,444 $24,444 $27,778 $27,778 $27,778 $33,378 $33,378 $33,378
Direct Cost of Sales $5,500 $5,500 $5,500 $6,722 $6,722 $6,722 $7,639 $7,639 $7,639 $9,179 $9,179 $9,179
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $5,500 $5,500 $5,500 $6,722 $6,722 $6,722 $7,639 $7,639 $7,639 $9,179 $9,179 $9,179

Gross Margin $14,500 $14,500 $14,500 $17,722 $17,722 $17,722 $20,139 $20,139 $20,139 $24,199 $24,199 $24,199
Gross Margin % 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50% 72.50%

Expenses
Payroll $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546
Marketing/Promotion $312 $315 $318 $321 $324 $327 $330 $333 $336 $339 $342 $345
Depreciation $349 $349 $349 $349 $349 $6,079 $6,079 $6,079 $6,079 $6,079 $6,079 $6,079
Utilities $423 $436 $449 $462 $476 $490 $505 $520 $536 $552 $568 $586
Insurance $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Payroll Taxes 15% $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582 $1,582
Other $0 $0 $0 $100 $103 $106 $109 $113 $116 $119 $123 $127
Advertising $282 $290 $299 $308 $317 $327 $337 $347 $357 $368 $379 $390
Legal $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Office Supplies $35 $36 $37 $38 $39 $41 $42 $43 $44 $46 $47 $48
Web Design $71 $73 $75 $78 $80 $82 $85 $87 $90 $93 $95 $98
Auto Expense 15% $81 $83 $86 $89 $91 $94 $97 $100 $103 $106 $109 $112
Equipment Expense $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374
Telephone $85 $88 $90 $93 $96 $99 $101 $105 $108 $111 $114 $118
Repair/Maintenance 15% $140 $144 $149 $153 $158 $162 $167 $172 $177 $183 $188 $194
Inventory $71 $73 $75 $78 $80 $82 $85 $87 $90 $93 $95 $98

Total Operating $14,497 $14,544 $14,592 $14,741 $14,795 $20,580 $20,637 $20,696 $20,756 $20,818 $20,881 $20,947
Expenses

Profit Before Interest $3 ($44) ($92) $2,981 $2,927 ($2,858) ($498) ($557) ($617) $3,381 $3,318 $3,252
and Taxes
EBITDA $352 $305 $257 $3,330 $3,276 $3,221 $5,581 $5,522 $5,462 $9,460 $9,397 $9,331
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1 ($13) ($28) $894 $878 ($857) ($149) ($167) ($185) $1,014 $995 $976

Page 3
 Appendix

Net Profit $2 ($31) ($64) $2,087 $2,049 ($2,001) ($349) ($390) ($432) $2,367 $2,322 $2,276
Net Profit/Sales 0.01% -0.15% -0.32% 8.54% 8.38% -8.18% -1.26% -1.40% -1.55% 7.09% 6.96% 6.82%

Page 4
 Appendix

Table: Cash Flow

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month
12
Cash Received

Cash from Operations

Cash Sales $20,000 $20,000 $20,000 $24,444 $24,444 $24,444 $27,778 $27,778 $27,778 $33,378 $33,378 $33,378
Subtotal Cash from $20,000 $20,000 $20,000 $24,444 $24,444 $24,444 $27,778 $27,778 $27,778 $33,378 $33,378 $33,378
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 $0 $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 Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $0 $0 $0 $0 $0
Received
Subtotal Cash $20,000 $20,000 $20,000 $24,444 $24,444 $24,444 $27,778 $27,778 $27,778 $33,378 $33,378 $33,378
Received

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

Expenditures from
Operations
Cash Spending $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546 $10,546
Bill Payments $153 $4,735 $8,595 $9,286 $12,645 $11,444 $9,907 $12,389 $11,544 $11,729 $15,876 $14,432
Subtotal Spent on $10,699 $15,281 $19,141 $19,832 $23,191 $21,990 $20,453 $22,935 $22,090 $22,275 $26,422 $24,978
Operations

Additional Cash Spent

Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
of Current Borrowing

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 Appendix

Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Purchase Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $10,699 $15,281 $19,141 $19,832 $23,191 $21,990 $20,453 $22,935 $22,090 $22,275 $26,422 $24,978

Net Cash Flow $9,301 $4,719 $859 $4,612 $1,253 $2,454 $7,325 $4,843 $5,688 $11,102 $6,956 $8,400
Cash Balance $106,94 $111,65 $112,51 $117,13 $118,38 $120,83 $128,16 $133,00 $138,69 $149,79 $156,75 $165,151
1 9 8 0 3 7 2 5 3 6 1

Table: Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting
Balances

Current Assets
Cash $97,640 $106,941 $111,659 $112,518 $117,130 $118,383 $120,837 $128,162 $133,005 $138,693 $149,796 $156,751 $165,151
Inventory $10,560 $6,060 $5,500 $5,500 $6,722 $6,722 $6,722 $7,639 $7,639 $7,639 $9,179 $9,179 $9,179
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $108,200 $113,001 $117,159 $118,018 $123,852 $125,105 $127,559 $135,801 $140,644 $146,332 $158,974 $165,930 $174,330

Long-term Assets
Long-term Assets $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800 $184,800
Accumulated $0 $349 $698 $1,047 $1,396 $1,745 $7,824 $13,903 $19,982 $26,061 $32,140 $38,219 $44,298
Depreciation
Total Long-term Assets $184,800 $184,451 $184,102 $183,753 $183,404 $183,055 $176,976 $170,897 $164,818 $158,739 $152,660 $146,581 $140,502
Total Assets $293,000 $297,452 $301,261 $301,771 $307,256 $308,160 $304,535 $306,698 $305,462 $305,071 $311,634 $312,511 $314,832

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

Current Liabilities
Accounts Payable $0 $4,449 $8,290 $8,864 $12,262 $11,117 $9,493 $12,004 $11,158 $11,198 $15,395 $13,949 $13,994
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current $0 $4,449 $8,290 $8,864 $12,262 $11,117 $9,493 $12,004 $11,158 $11,198 $15,395 $13,949 $13,994
Liabilities

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $4,449 $8,290 $8,864 $12,262 $11,117 $9,493 $12,004 $11,158 $11,198 $15,395 $13,949 $13,994

Paid-in Capital $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000 $303,000
Retained Earnings ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000)

Page 6
 Appendix

Earnings $0 $2 ($28) ($93) $1,994 $4,043 $2,043 $1,694 $1,304 $872 $3,239 $5,562 $7,838
Total Capital $293,000 $293,002 $292,972 $292,907 $294,994 $297,043 $295,043 $294,694 $294,304 $293,872 $296,239 $298,562 $300,838
Total Liabilities and $293,000 $297,452 $301,261 $301,771 $307,256 $308,160 $304,535 $306,698 $305,462 $305,071 $311,634 $312,511 $314,832
Capital

Net Worth $293,000 $293,002 $292,972 $292,907 $294,994 $297,043 $295,043 $294,694 $294,304 $293,872 $296,239 $298,562 $300,838

Page 7