COMPANY NAME - 2011

Business Plan
COMPANY
NAME
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:

INSERT IMAGE/LOGO
COMPANY NAME - 2011

Business Plan 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.

 Table of Contents

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

Chart: Highlights.....................................................................................................................1
1.1 Objectives............................................................................................................................1
1.2 Mission.................................................................................................................................1
1.3 Keys to Success....................................................................................................................2
2.0 Company Summary.............................................................................................................2
2.1 Company Ownership..............................................................................................................2
2.2 Company History...................................................................................................................3
Table: Past Performance...........................................................................................................3
Chart: Past Performance...........................................................................................................4
3.0 Products and Services..........................................................................................................4
4.0 Strategy and Implementation Summary.................................................................................4
4.1 SWOT Analysis......................................................................................................................4
4.1.1 Strengths.......................................................................................................................4
4.1.2 Weaknesses....................................................................................................................4
4.1.3 Opportunities..................................................................................................................5
4.1.4 Threats..........................................................................................................................5
4.2 Competitive Edge..................................................................................................................5
4.3 Sales Strategy......................................................................................................................5
4.3.1 Sales Forecast................................................................................................................5
Table: Sales Forecast...............................................................................................................5
Chart: Sales Monthly................................................................................................................6
Chart: Sales by Year................................................................................................................6
4.4 Milestones............................................................................................................................7
Table: Milestones.....................................................................................................................7
5.0 Management Summary.........................................................................................................7
5.1 Personnel Plan......................................................................................................................7
Table: Personnel......................................................................................................................7
6.0 Financial Plan......................................................................................................................8
6.1Break-even Analysis...............................................................................................................8
Table: Break-even Analysis.......................................................................................................8
Chart: Break-even Analysis.......................................................................................................8
6.2 Projected Profit and Loss........................................................................................................9
Table: Profit and Loss...............................................................................................................9
Chart: Profit Monthly..............................................................................................................10
Chart: Profit Yearly................................................................................................................10
Chart: Gross Margin Monthly...................................................................................................11
Chart: Gross Margin Yearly.....................................................................................................11
6.3 Projected Cash Flow.............................................................................................................12

Page 1
 Table of Contents

Table: Cash Flow...................................................................................................................12

Chart: Cash..........................................................................................................................13
6.4 Projected Balance Sheet.......................................................................................................14
Table: Balance Sheet..............................................................................................................14
6.5 Business Ratios..................................................................................................................15
Table: Ratios.........................................................................................................................15
Table: Sales Forecast.................................................................................................................1
Table: Profit and Loss................................................................................................................2
Table: Cash Flow.......................................................................................................................3
Table: Balance Sheet.................................................................................................................5

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COMPANY NAME - 2011
Business Plan
1.0 Executive Summary
COMPANY NAME is a tire retailer and repair shop located in [CITY], [STATE]. This business plan
projects sales, profits, personnel changes, balances, and the nature of our expansion over the
course of the next three years of business. This projection includes the $250,000 in funding
sought, which will be instrumental in helping us to achieve our objectives. As a well-established
business (since 1985), our expansion will benefit us as much as it does the local community, with
whom we have created a loyal clientele.

Chart: Highlights

1.1 Objectives
COMPANY NAME currently sells and repairs commercial automobile tires and small tractor tires.
While these services are very necessary, it would be very much to the benefit of our company to
being selling and repairing large tractor tires for specialty vehicles. This includes mobilizing some
components of COMPANY NAME meaning that our representatives will need to be able to travel to
nearby locations for on-site tire changes and repairs. Because large tractor tires are difficult to
transport, and the transportation of the vehicles is even more difficult, mobility has the potential
to be a crucial asset that construction companies and large farms will notice and appreciate.

1.2 Mission
COMPANY NAME is a retailer that combines the utility of specialized knowledge with the
personalized service of a family-owned business. Our mission is to represent both our store and
ourselves. In doing so, we hope that every customer remembers us as fair, diligent, and reliable.

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COMPANY NAME - 2011
Business Plan
1.3 Keys to Success

The Keys to success for COMPANY NAME are:

 
Good service - The fair and conscientious treatment of the customer is a fundamental component
to the success of any retailer. 

Longevity - COMPANY NAME has been in business since 1985, which means that we have a
substantial presence in [CITY] and throughout [STATE].

Expansion - By increasing the size of our inventory and the span of that inventory (including the
addition of large tractor tires), COMPANY NAME hopes to perpetuate its business for many years
to come.

2.0 Company Summary

COMPANY NAME has been in business since 1985 and is owned and managed by INSERT NAME,
the company founder. Having been in business for 24 years, INSERT NAME has been able to
establish a very loyal clientele of consumers, local electric companies, water districts, and farmers.

2.1 Company Ownership

INSERT NAME is the company's sole proprietor of COMPANY NAME.

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COMPANY NAME - 2011
Business Plan
2.2 Company History
The past performance table shows sales, assets, liabilities, capital, and operating expenses for
COMPANY NAME for the most recent two of our 24 years in business, having started in 1985.
Because the company is currently in the middle of the year 2010, financials cannot be accurately
accounted for.

Table: Past Performance

Past Performance
2008 2009
Sales $139,029 $136,773
Gross Margin $42,891 $39,841
Gross Margin % 30.85% 29.13%
Operating Expenses $43,970 $53,823
Inventory Turnover 1.37 1.34

Balance Sheet
2008 2009

Current Assets
Cash $3,242 $2,375
Inventory $70,000 $75,000
Other Current Assets $150,000 $150,000
Total Current Assets $223,242 $227,375

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

Total Assets $223,242 $227,375

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

Long-term Liabilities $80,000

Total Liabilities $0 $80,000

Paid-in Capital $10,000 $7,000

Retained Earnings $214,321 $154,357
Earnings ($1,079) ($13,982)
Total Capital $223,242 $147,375

Total Capital and Liabilities $223,242 $227,375

Other Inputs

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COMPANY NAME - 2011
Business Plan
Payment Days 30 30

Chart: Past Performance

Past Performance

$140,000

$120,000

$100,000
Sales
$80,000
Gross
$60,000
Net
$40,000

$20,000

$0

2007 2008 2009

3.0 Products and Services

COMPANY NAME sells and repairs tires for consumer automobiles as well as for commercial
vehicles. Sales and repairs currently take place within the store, but we hope to mobilize our
services, which will especially benefit the owners of large commercial vehicles.

4.0 Strategy and Implementation Summary

COMPANY NAME plans to implement its plan for expansion by using the funding we seek to
purchase a truck that will allow for mobile service and by purchasing specialty tires that we do not
currently have the funds to purchase. These specialty tires have been asked of us by loyal clients,
and so we know that past customers, such as local farmers, will greatly benefit from this
expansion.

4.1 SWOT Analysis

A SWOT Analysis is a breakdown of the strengths, weakness, opportunities, and threats that
COMPANY NAME has had and will have in the future.

4.1.1 Strengths
Our strengths are longevity and the fairness of our pricing.

4.1.2 Weaknesses
Economic factors are a pivotal weakness. As retailers, we depend upon the income of consumers.

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COMPANY NAME - 2011
Business Plan
4.1.3 Opportunities
With the $250,000 in funding sought, COMPANY NAME will have the opportunity to increase its
inventory (in both size and range), procure a service truck for mobile service, and hire more
employees.

4.1.4 Threats
The major threat to COMPANY NAME is an exaggerated form of our weakness, which is economic
downtown. If a dip in the economy is our weakness, then a depression is a threat, as it would be
to any other retailer.

4.2 Competitive Edge

Our competitive edge is in our locally established name. A future competitive edge will be in the
mobility of our service.

4.3 Sales Strategy

Our fair pricing and small-business demeanor appeal to customers. Because tires are purchased
out of necessity and not recreation, it is not difficult to close a deal with a customer, which makes
our job more about finding the right product for the right consumer.

4.3.1 Sales Forecast

The sales forecast shows the projected sales for both tires and tire services (i.e. repairs) over the
course of the next three years. Growth is gradual, which will allow for COMPANY NAME to maintain
a solid infrastructure while still expanding. The cost of those sales is also incorporated in the sales
forecast table.

Table: Sales Forecast

Sales Forecast
2010 2011 2012
Sales
Tires $143,246 $179,057 $193,997
Tire Services $55,720 $62,065 $70,000
Total Sales $198,966 $241,122 $263,997

Direct Cost of Sales 2010 2011 2012

Cost of Goods Sold $70,955 $85,947 $93,118
$0 $0 $0
Subtotal Direct Cost of Sales $70,955 $85,947 $93,118

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COMPANY NAME - 2011
Business Plan
Chart: Sales Monthly

Chart: Sales by Year

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COMPANY NAME - 2011
Business Plan
4.4 Milestones
The milestones for the next 3 years of COMPANY NAME will be promoting its part-time employees
to full-time status, purchasing a truck to mobilize our service, and acquiring large specialty tires.

Table: Milestones

Milestones

Milestone Start End Date Budget Manager Department

Date
Promote 8/2/2010 4/2/2011 undefined INSERT Personnel
PT NAME
workers
to FT
Buy 8/2/2010 12/1/2010 $70,000 INSERT Operations
Service NAME
Truck
Purchase 8/2/2010 2/1/2010 $130,000 INSERT Inventory
Specialty NAME
Tires

Totals $200,000

5.0 Management Summary

INSERT NAME owns and manages the company. He is not paid a specific salary but rather takes
draws as needed. The Company currently has one assistant manager, [NAME]. There are currently
3 part-time employees who work between 10 and 20 hours each week. We would like to hire two
additional employees to our team and promote part-time employees to full-time. 

5.1 Personnel Plan

The Personnel table shows the projected payroll expenses and shifts in team size and
categorization over the next three years of business.

Table: Personnel

Personnel Plan
2010 2011 2012
Assistant Manager $23,040 $23,731 $24,917
Full-Time Employees $0 $67,584 $69,611
Part-Time Employees $22,272 $0 $0
Total People 4 6 6

Total Payroll $45,312 $91,315 $94,528

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COMPANY NAME - 2011
Business Plan

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COMPANY NAME - 2011
Business Plan
6.0 Financial Plan
This financial plan projects financials for COMPANY NAME over the course of the next three years,
incorporating $250,000 sought in investments. The plan shows how those investments will
positively affect cash flow and balances and will allow COMPANY NAME to expand our services,
both in the way of our inventory and in mobilizing our service. The plan shows that $11,088 is
required in monthly revenue in order to break even. The Profit and Loss table shows a steady
gross margin, significant spending on personnel and inventory in the second year, and a
substantial increase in net profit in the third year.
 

6.1Break-even Analysis
Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $11,088

Assumptions:
Average Percent Variable 36%
Cost
Estimated Monthly Fixed Cost $7,134

Chart: Break-even Analysis

INCLUDEPICTURE "ooxWord://word/media/image6.emf" \* MERGEFORMATINET
Break-even Analysis
$8,000

$6,000

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)

$0 $4,000 $8,000 $12,000 $16,000 $20,000

$2,000 $6,000 $10,000 $14,000 $18,000 $22,000

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COMPANY NAME - 2011
Business Plan
6.2 Projected Profit and Loss
The profit and loss table shows the projected sales, expenses, and net profit for the following
three years. Gross margins are steady as sales increase. Net profit in the plans third year will
exceed both the first and second years. The expense of payroll is expected to increase significantly
between 2010 and 2011 due to new jobs being created.

Table: Profit and Loss

Pro Forma Profit and Loss

2010 2011 2012
Sales $198,966 $241,122 $263,997
Direct Cost of Sales $70,955 $85,947 $93,118
Other Costs of Sales $0 $0 $0
Total Cost of Sales $70,955 $85,947 $93,118

Gross Margin $128,011 $155,175 $170,879

Gross Margin % 64.34% 64.36% 64.73%

Expenses
Payroll $45,312 $91,315 $94,528
Marketing/Promotion $1,593 $1,750 $2,000
Depreciation $1,200 $2,000 $2,500
Car and Truck Expenses $1,200 $1,500 $2,000
Insurance (other than $3,000 $5,000 $5,000
health)
Interest - mortgage (paid to $4,800 $4,800 $4,800
banks, etc.)
Legal and Professional $3,000 $3,500 $3,500
Services
Office Expenses $360 $400 $450
Supplies $180 $250 $300
Utilities $21,000 $2,400 $2,700
Misc. $3,960 $4,100 $4,100

Total Operating Expenses $85,605 $117,015 $121,878

Profit Before Interest and $42,406 $38,160 $49,001

Taxes
EBITDA $43,606 $40,160 $51,501
Interest Expense $8,000 $8,000 $8,000
Taxes Incurred $10,322 $9,048 $12,300

Net Profit $24,084 $21,112 $28,701

Net Profit/Sales 12.10% 8.76% 10.87%
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COMPANY NAME - 2011
Business Plan
Chart: Profit Monthly

Chart: Profit Yearly

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COMPANY NAME - 2011
Business Plan
Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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COMPANY NAME - 2011
Business Plan
6.3 Projected Cash Flow
As is shown in the Cash Flow table, the second year of business will contains significant spending
on personnel and inventory, which will result in negative cash flow but NOT a negative cash
balance. The following year will show a positive cash balance, as the business will have acclimated
to its paradigm shift. At no point will there be a negative cash balance. Sales revenue will increase
substantially between the first and second years. $200,000 will be spent on the purchase of new
assets, primarily a service truck and large tires for specialty vehicles. The remaining $50,000 in
funding sought will be managed as a reserve fund for unforeseen expenses and possibly for
personnel.

Table: Cash Flow

Pro Forma Cash Flow
2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $198,966 $241,122 $263,997
Subtotal Cash from Operations $198,966 $241,122 $263,997

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 $250,000 $0 $0
Subtotal Cash Received $448,966 $241,122 $263,997

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $45,312 $91,315 $94,528
Bill Payments $51,831 $171,164 $139,658
Subtotal Spent on Operations $97,143 $262,479 $234,186

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $0 $0 $0
Borrowing
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $200,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $297,143 $262,479 $234,186

Net Cash Flow $151,823 ($21,357) $29,811

Page 13
 May J
COMPANY NAME - 2011

Apr
Business Plan

Feb Mar
Cash Balance $154,823 $133,466 $163,277

Jan
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 - 2011
Business Plan
6.4 Projected Balance Sheet
The Balance Sheet table shows a steady, sustainable increase in earnings and net worth over the
next three years. The $250,000 investment sought will contribute very significantly to rise in net
worth for COMPANY NAME.

Table: Balance Sheet

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $155,065 $133,708 $163,519
Inventory $9,045 $57,311 $55,539
Other Current Assets $150,000 $150,000 $150,000
Total Current Assets $314,110 $341,019 $369,058

Long-term Assets
Long-term Assets $200,000 $200,000 $200,000
Accumulated Depreciation $1,200 $3,200 $5,700
Total Long-term Assets $198,800 $196,800 $194,300
Total Assets $512,910 $537,819 $563,358

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $10,584 $14,380 $11,219
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $10,584 $14,380 $11,219

Long-term Liabilities $80,000 $80,000 $80,000

Total Liabilities $90,584 $94,380 $91,219

Paid-in Capital $257,000 $257,000 $257,000

Retained Earnings $141,242 $165,326 $186,438
Earnings $24,084 $21,112 $28,701
Total Capital $422,326 $443,438 $472,139
Total Liabilities and Capital $512,910 $537,819 $563,358

Net Worth $422,326 $443,438 $472,139

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COMPANY NAME - 2011
Business Plan
6.5 Business Ratios
The ratios table shows standard business ratios are they apply to the years 2011-2013. These
ratios are measured against an industry profile (far right of the table).

Table: Ratios
Ratio Analysis
2010 2011 2012 Industry
Profile
Sales Growth n.a. 21.19% 9.49% 0.37%

Percent of Total Assets

Inventory 1.76% 10.66% 9.86% 42.93%
Other Current Assets 29.26% 27.90% 26.64% 29.10%
Total Current Assets 61.22% 63.39% 65.50% 91.91%
Long-term Assets 38.78% 36.61% 34.50% 8.09%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 2.06% 2.68% 1.99% 41.37%

Long-term Liabilities 15.60% 14.88% 14.21% 38.05%
Total Liabilities 17.67% 17.56% 16.20% 79.43%
Net Worth 82.33% 82.44% 83.80% 20.57%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 64.34% 64.36% 64.73% 17.89%
Selling, General & 52.23% 55.60% 53.86% 6.65%
Administrative Expenses
Advertising Expenses 0.80% 0.73% 0.76% 0.40%
Profit Before Interest and 21.31% 15.83% 18.56% 2.30%
Taxes

Main Ratios
Current 29.66 23.70 32.87 2.07
Quick 28.80 19.71 27.92 1.04
Total Debt to Total Assets 17.67% 17.56% 16.20% 79.43%
Pre-tax Return on Net Worth 8.15% 6.81% 8.69% 70.37%
Pre-tax Return on Assets 6.71% 5.61% 7.28% 14.48%

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COMPANY NAME - 2011
Business Plan
Additional Ratios 2010 2011 2012
Net Profit Margin 12.10% 8.76% 10.87% n.a
Return on Equity 5.71% 4.76% 6.08% n.a

Activity Ratios
Inventory Turnover 1.82 2.59 1.65 n.a
Accounts Payable Turnover 5.90 12.17 12.17 n.a
Payment Days 27 26 34 n.a
Total Asset Turnover 0.39 0.45 0.47 n.a

Debt Ratios
Debt to Net Worth 0.21 0.21 0.19 n.a
Current Liab. to Liab. 0.12 0.15 0.12 n.a

Liquidity Ratios
Net Working Capital $303,284 $326,396 $357,597 n.a
Interest Coverage 5.30 4.77 6.13 n.a

Additional Ratios
Assets to Sales 2.58 2.23 2.13 n.a
Current Debt/Total Assets 2% 3% 2% n.a
Acid Test 28.80 19.71 27.92 n.a
Sales/Net Worth 0.47 0.54 0.56 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 17
 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Tires $9,000 $9,450 $9,922 $10,418 $10,939 $11,486 $12,060 $12,663 $13,296 $13,961 $14,659 $15,392
Tire $3,500 $3,675 $3,859 $4,052 $4,255 $4,468 $4,691 $4,926 $5,172 $5,431 $5,703 $5,988
Services
Total $12,500 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Sales

Direct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cost of
Sales
Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,921
Goods
Sold
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtota $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,921
l Direct
Cost of
Sales

Table: Personnel
Personnel
Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assistant $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920
Manager
Full-Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Employees
Part-Time $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856
Employees
Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776

Page 1
 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oc Nov Dec
t
Sales $12,500 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,39 $20,362 $21,3
2 80
Direct Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,92
Sales 1
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Total Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 \$6,333 $6,523 $6,719 $6,92
Sales 1

Gross Margin $7,500 $7,975 $8,477 $9,007 $9,567 $10,158 $10,781 $11,440 $12,135 $12,86 $13,643 $14,4
9 59
Gross Margin % 60.00% 60.76% 61.51% 62.25% 62.97% 63.67% 64.36% 65.04% 65.71% 66.36 67.00% 67.63
% %

Expenses
Payroll $3,776 $3,7 $3,776 $3,7 $3,776 $3,7 $3,776 $3,7 $3,776 $3,776 $3,776 $3,77
76 76 76 76 6
Marketing/Pro $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171
motion
Depreciation $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Car and Truck $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Expenses
Insurance 15% $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
(other than
health)
Interest - 15% $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
mortgage (paid
to banks, etc.)
Legal and 15% $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Professional
Services
Office Expenses 15% $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Supplies 15% $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Utilities 15% $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,750 $1,750 $1,75
50 50 50 50 50 50 50 50 50 0
Misc. 15% $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330
Page 2
 Appendix

Total Operating $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,156 $7,164 $7,17
Expenses 01 06 11 17 23 29 35 42 49 2

Profit Before $399 $869 $1,366 $1,890 $2,444 $3,029 $3,646 $4,298 $4,986 $5,713 $6,47 $7,28
Interest and Taxes 9 7
EBITDA $499 $969 $1,466 $1,990 $2,544 $3,129 $3,746 $4,398 $5,086 $5,813 $6,57 $7,38
9 7
Interest Expense $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667
Taxes Incurred ($80) $61 $210 $367 $533 $709 $894 $1,089 $1,296 $1,514 $1,74 $1,98
4 6

Net Profit ($187) $142 $490 $856 $1,244 $1,654 $2,086 $2,542 $3,024 $3,532 $4,06 $4,63
9 4
Net Profit/Sales -1.50% 1.08% 3.55% 5.92% 8.19% 10.37% 12.45% 14.45% 16.37% 18.22% 19.98 21.68
% %

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
Operatio
ns
Cash $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Sales 0
Subtotal $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Cash 0
from
Operatio
ns

Additiona
l Cash
Received
Sales 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax, 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
Liabilitie
s
(interest
-free)
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Liabilitie
s
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
Page 4
 Appendix

Assets
New $0 $0 $0 $0 $0 $0 $0 $250,000 $0 $0 $0 $0
Investme
nt
Received
Subtotal $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $267,589 $18,468 $19,392 $20,362 $21,380
Cash 0
Received

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 Appendix

Cash Flow Continued…

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

Expenditures
from
Operations
Cash $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776
Spending
Bill $127 $3,816 $3,963 $4,117 $4,280 $4,453 $4,635 $4,826 $5,029 $5,243 $5,468 $5,873
Payments
Subtotal $3,903 $7,592 $7,739 $7,893 $8,056 $8,229 $8,411 $8,602 $8,805 $9,019 $9,244 $9,649
Spent on
Operations

Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $0 $0 $0 $0 $0 $0 $0 $200,000 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $3,903 $7,592 $7,739 $7,893 $8,056 $8,229 $8,411 $208,602 $8,805 $9,019 $9,244 $9,649
Cash Spent

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 Appendix

Net Cash $8,597 $5,533 $6,042 $6,577 $7,138 $7,725 $8,340 $58,987 $9,663 $10,373 $11,118 $11,731
Flow
Cash Balance $11,839 $17,372 $23,414 $29,991 $37,129 $44,854 $53,194 $112,181 $121,844 $132,217 $143,334 $155,065

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 $3,242 $11,839 $17,372 $23,414 $29,991 $37,129 $44,854 $53,194 $112,181 $121,844 $132,217 $143,334 $155,065
Inventory $75,000 $70,000 $64,850 $59,546 $54,083 $48,456 $42,660 $36,690 $30,541 $24,208 $17,685 $10,966 $9,045
Other $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Current
Assets
Total $228,242 $231,839 $232,222 $232,960 $234,074 $235,585 $237,514 $239,884 $292,722 $296,052 $299,902 $304,300 $314,110
Current
Assets

Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $200,000 $200,000 $200,000 $200,000 $200,000
Assets
Accumulated $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200
Depreciation
Total Long- $0 ($100) ($200) ($300) ($400) ($500) ($600) ($700) $199,200 $199,100 $199,000 $198,900 $198,800
term Assets
Total Assets $228,242 $231,739 $232,022 $232,660 $233,674 $235,085 $236,914 $239,184 $491,922 $495,152 $498,902 $503,200 $512,910

Page 7
 Appendix

Balance Sheet Continued…

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

Current
Liabilities
Accounts $0 $3,684 $3,825 $3,974 $4,132 $4,299 $4,474 $4,659 $4,855 $5,061 $5,279 $5,508 $10,584
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $0 $3,684 $3,825 $3,974 $4,132 $4,299 $4,474 $4,659 $4,855 $5,061 $5,279 $5,508 $10,584
Current
Liabilities

Long- $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
term
Liabilities
Total $80,000 $83,684 $83,825 $83,974 $84,132 $84,299 $84,474 $84,659 $84,855 $85,061 $85,279 $85,508 $90,584
Liabilities

Paid-in $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $257,000 $257,000 $257,000 $257,000 $257,000
Capital
Retained $155,224 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242
Earnings
Earnings ($13,982) ($187) ($46) $444 $1,300 $2,544 $4,198 $6,283 $8,825 $11,849 $15,381 $19,450 $24,084
Total $148,242 $148,055 $148,196 $148,686 $149,542 $150,786 $152,440 $154,525 $407,067 $410,091 $413,623 $417,692 $422,326
Capital
Total $228,242 $231,739 $232,022 $232,660 $233,674 $235,085 $236,914 $239,184 $491,922 $495,152 $498,902 $503,200 $512,910
Liabilities
and
Capital

Net Worth $148,242 $148,055 $148,196 $148,686 $149,542 $150,786 $152,440 $154,525 $407,067 $410,091 $413,623 $417,692 $422,326

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