TRUE CAR

RENTASL LLC

Business plan.
TABLE OF CONTENTS
1. Executive summary....................................5
2. Industry Overview......................................6
3. Business Target..........................................7
4. MISSION, VISION OF THE COMPANY 8
5. Our values..................................................9
6. Market analysis........................................11
Competitive Landscape....................................13
7. SWOT analysis.........................................15
8. Business Structure....................................16
9. Job Roles AND RESPONSIBILITIES....17
10. OUR COMPETITIVE ADVANTAGE.19
11. Sales forecast.........................................20
12. Pricing strategy......................................21
13. Sales and marketing strategy.................22
14. Publicity and advertising strategy.........23
15. financials...............................................24
Table: Balance Sheet................................24
Table: Cash Flow.....................................25
Table: Profit and Loss..............................26
1. EXECUTIVE SUMMARY
“TRUE” Car Rental LLC is a standard and registered car rental company that will be located
in Freeport, NY. TRUE is a New York-based LLC that will provide the rental of economy,
standard, and luxury automobiles in its targeted market. TRUE was founded in 2021 by
Prince Yellordy, who will be taking a hands-on management role in the company. TRUE”
Car Rental LLC will offer car rental
services such as leisure car rental, business
car rental, car leasing, and car-sharing
services, et al. We are set to service a wide
range of clientele base in the locations
where we choose to operate. We are well
trained and equipped to service the market
segments that require car rental services.
Although our intention of starting “TRUE”
Car Rental LLC is to offer only the above-
stated services, we will not close our doors
to diversification (additional services) as
long as it does not affect our core services.
At “TRUE” Car Rental LLC, we are
passionate about pursuing excellence and
financial success with uncompromising
services and integrity, which is why we
have decided to start our own car rental
business; we are in the industry to make a
positive mark. We are pretty optimistic that
our values, highly reliable and comfortable
fleet of cars, and the quality of service
offering will help us drive our car rental business to enviable heights and help us attract the
numbers of clients that will make the business highly profitable. We are a company that will
be dedicated to establishing good business relationships with our clients, giving them value
for their money and reasons for them to rent and lease our cars over and over again. We are
pretty aware that to become the number one choice in our city, we must continue to deliver
quality services, precisely what we will do. Our overall business goal is to position TRUE”
Car Rental LLC to become one of the leading car rental company brands. Our client’s best
interest will always come first, and our values and professional ethics will guide everything
we do. We will ensure that we hold ourselves accountable to the highest standards by meeting
our client’s needs precisely and completely. We will cultivate a working environment that
provides a human, sustainable approach to earning a living and living in our world for our
partners, employees, and clients. 
2. INDUSTRY OVERVIEW

The car rental industry has grown more strongly in recent times, after previous years of
recession. This was primarily because airlines saw a decrease in customers, which have now
seen an increase compared to recent years, thereby linking air travel to car rentals. The car
rental industry is expected to experience remarkable growth following an increase in the
number of passengers traveling by air due to a rise in per capita income and corporate profit.
The largest car rental companies in the industry have a competitive advantage over smaller
firms, especially as they have strategic alliances with airlines and hotels, which the smaller
car rentals do not have. Players in this industry either rent or lease passenger cars to
customers. Car rental services typically last a short period, usually 30 days or less, while car
leasing agreements are for a more extended period, usually 12 months or more. The major
companies in this industry have created strong brand awareness and therefore enjoy its
recognition. This helps retain customers for these businesses and creates difficulty for new
car rentals start-up towards getting customers and retaining them. Also, significant companies
constantly need to purchase fleets to meet up with customers’ demand, a feat that smaller
companies cannot match up with, and yet regardless of the number of cars in one’s fleet,
maintenance, storage, and then staff the rental location. The Car Rental Industry is indeed a
large and thriving industry in developed countries and most of the world. Statistics have it
that in the United States of America alone, there are about 2,716 licensed and registered car
rental businesses responsible for employing about 113,499 employees, and the industry rakes
in a whooping sum of $38bn annually with an annual growth rate projected at 3.0 percent.
The car rental companies dominating the market are Avis Budget Group Inc., Enterprise Rent
– – Car Company, and Hertz Global Holdings Inc. Apart from the increase in international
travel, other vital factors that drive the car rental market include the increasing population
and increasing internet usage amongst the people. Most online car rentals are due to the
increase in internet usage, which has made it more convenient for customers to access car
rentals, and for car rental businesses to increase their revenue. The major restraint in this
industry, especially globally, has been the increase in environmental regulations worldwide.
The high amount of environmental pollutants that are released by cars is highly responsible
for these environmental regulations. Executive cars and MUVs are the leaders in the car
rental business globally, followed by economy cars, SUVs, and luxury cars. Apart from
revenue from the airport segment, other segments that contribute to the car rental business
include outstation, local usage, event transportation, employee transportation, and self-drive.
Over and above, car rental businesses worldwide are still enjoying good patronage,
particularly if they are well positioned and know how to reach out to their target market.
3. BUSINESS TARGET

The company aims at providing the best car rental services to its customers. Monetarily, the
company’s goal is to balance its startup costs with the earned profits by the end of the first
year.
 4. MISSION, VISION OF THE
COMPANY

 Mission
Our mission is to complete our customer's rent a car needs in New York and, in doing so,
exceed their expectations for service, quality, and value. We will strive to earn our customer's
loyalty by working to deliver more than promised, being honest and fair, and going the extra
mile to provide exceptional personalized service that creates a pleasing business experience.
Treat employees and customers like family and never compromising our commitment to
superior customer service. We will work to engage the community in which we operate,
improve diversity through our ranks, and contribute resources to the most important causes.
Although our goal is to be the best and not necessarily the biggest or the most profitable, our
success at satisfying customers and motivating employees will bring growth and long-term
profitability. After all, we are not entitled to our success. We have to earn it every day. 
Vision 
 Our vision is to offer service beyond customer satisfaction and demand. We want to help our
clients maximize their customer lifetime value and increase their competitive advantage by
helping drive productivity and efficiency while delivering measurable results.

Success Factors
"TRUE" Car Rental LLC is uniquely qualified to succeed due to the following reasons.
"TRUE" Car Rental LLC will fill a specific market niche in the growing community we are
entering. In addition, we have surveyed the local population and received highly positive
feedback saying that they explicitly want to use our services when launched. Our location is
in a high-wealth area where customers are interested in car rental services. The management
team has a track record of success in the car rental services business.
5. OUR VALUES

Integrity
 We will honor all commitments to our customers, employees, and shareholders.
 We will conduct business with unwavering high standards of honesty, trust,
professionalism, and ethical behavior.
 We will communicate openly and frequently, sharing what we know when we know
it.
Respect for the Individual
 We will treat each person with whom we work with respect, professionalism, and
dignity.
 We will communicate expectations to employees and provide honest and timely
feedback on performance.
 We will embrace a diversity of ideas, cultures, ethnicities, and backgrounds to
enhance our promise and value to customers.
 We will provide career development opportunities for employees who show initiative
and performance results to help them individually manage their careers to maximize
their potential.
Quality
 We will place the interests of our customers first.
 We will be dedicated to providing an individualized rental experience that assures
customer satisfaction and earns the unwavering loyalty of our customers
 We will ensure that the "We Try "TRUE" Car Rental LLC underlies everything we do
and shines through our service to customers.
Teamwork
 We will work as one cohesive team from the smallest unit to the organization as a
whole.
 We will develop and retain leaders who continually raise the bar, provide direction,
remove barriers and empower people to accomplish goals.
  We will maintain a caring and supportive work environment that fosters ideas, skills,
and resources.
Growth and Profitability
 We will be dedicated to continuous innovation and pursue new ideas and
opportunities to accelerate profitable growth.
 We will deliver value in all we do to assure consistently high returns to our
shareholders.
 We will recognize and reward excellent performance, which drives superior results.
Community Responsibility
 We will be active participants in our communities and encourage employee
involvement in civic and charitable activities.
 We will be role model business leaders in the countries and communities in which we
operate.
 We will develop and implement business practices consistent with safeguarding the
environment. 
 6. MARKET ANALYSIS

Market Trends
Suppose you are conversant with one of the latest trends in the car rental services industry. In
that case, you will note that more people now book to rent cars via the mobile application and
other internet access rather than visiting the car rental office. Car rental mobile application
usage has seen an increment in recent times. The car rental business is also segmented into
organized and unorganized labor, with the organized labor expected to provide the highest
incremental opportunity in the future. No doubt, the Car Rental Services industry has indeed
changed gears over the last five years, growing strongly after being forced into retrogression
during the recession period. Air travelers represent the industry’s primary market; growth in
air travel has been most influential in driving revenue expansion in this industry over the last
five years.
Furthermore, the industry is anticipated to continue growing going forward, driven by an
increase in the number of air travelers, rising per capita income, and of course, rising
corporate profit as well. The industry’s largest companies are expected to retain their
competitive advantages over more minor players, such as maintaining strategic alliances with
airlines and hotels. The car rental services industry trend is that most car wash companies, in
the bid to survive the recent global economic meltdown, included additional services to their
core service offerings. It is much easier for car rental companies to increase their revenues by
diversifying as against increasing their market scope.

The Car rental market accounted for USD 86 billion in 2020 and is expected to reach USD
131 billion by 2026, projecting a CAGR of about 7% during the forecast period. The rapid
spread of COVID-19 has an enormous impact on the travel and tourism industry, affecting
the car rental market in parallel. With reduced global air traffic, demand for rental cars has
slowed down at airports as there were travel restrictions worldwide to contain the spread of
the virus. Also, rising prices of petrol and diesel in developing countries likely hamper the
growth of the market during the forecast period. However, post-pandemic, with safety and
hygiene becoming the need of the hour, practices for disinfecting the car are followed
meticulously. The need for individual mobility and the social distancing norms is bound to
improve the industry conditions. The car rental market witnessed new trends in ride-sharing,
micro-mobility, and peer-to-peer car-sharing services such as Uber, Lyft, and Ola as safety
and social distance guidelines to play a significant role in the growth of the market share the
forecast period. The market in North America is expected to dominate in the global market in
terms of revenue and is expected to continue its dominance over the forecast period; this can
be attributed to the increasing number of business trips and vacations local and international
across various countries in this region. The market in the Asia Pacific is expected to register
significant growth in terms of CAGR over the forecast period, owing to increasing travel and
tourism and increasing availability of high-end luxury and economy vehicles, especially
across developing countries in this region.
Competitive Landscape

The market is moderately fragmented, with numerous international and domestic companies
operating across the globe. However, the industry is on the verge of consolidation, with few
players capturing a significant market share. Key participants include Enterprise Rent-A-Car,
The Hertz Corporation, Sixt SE, Europe car, and Avis Budget Group. The primary focus of
these players is on enhancing their services to gain a customer base and maximize
profitability, for instance. In March 2019, Sixt SE launched a mobility app that facilitates
customers with vehicle renting or sharing and cab-hailing services. In April 2019, Enterprise
Holdings Inc. announced to launch its car subscription service. Under this service, the
customers are required to pay monthly fees to select from six different vehicle classes varying
from small and mid-sized Sports Utility Vehicle (SUVs) to medium-sized trucks.
Collaboration is another key strategy implemented by industry players to strengthen their
position in the market. For instance, in January 2019, Enterprise Rent-A-Car announced a
collaboration with Premier Group for expanding its car rental service portfolio in Egypt.
 7. SWOT ANALYSIS

The car rental business is one of the many businesses that can quickly generate sales with
little stress as long as they are well-positioned and equipped to carry out their services. We
are building a standard car rental services business with a variety of complimentary services,
which is why we have decided to subject our business idea (company) to SWOT Analysis.
Here is a of the result we got from the SWOT analysis that was conducted on behalf of
"TRUE"" Car Rental LLC
Strength:
Aside from the large fleet of comfortable and highly reliable cars under our rental services,
our location is, in fact, one of our major strengths. Another strength that counts for us is our
team's power, workforce, and management. We have a team considered an expert in the car
rental industry, a team of hardworking and dedicated individuals.
Weakness:
"TRUE" Car Rental LLC is a new business that is owned by an individual (family), and we
may not have the financial muscle to sustain the kind of publicity we want to give our
business. As a new business, we are also quite aware that it will take time to build trust with
our clients. 
Opportunities:
We are centrally located in one of the busiest areas, and we are open to all the available
opportunities that the city has to offer. Our business concept also positioned us to be a one-
stop shop in the car rental line of business. The truth is that there is no standard and healthy–
equipped car rental business within the area where ours is going to be located; the closest car
rental services company to our proposed location is about 6 miles away. In a nutshell, we do
not have any direct competition within our target market area.
Threat:
Some of the threats that are likely going to confront "TRUE" Car Rental LLC are unfavorable
government policies, seasonal fluctuations, demographic/social factors, the downturn in the
economy, which is likely going to affect consumers spending, and of course, the emergence
of new competitors within the exact location where our car rental business is located. 
 8. BUSINESS STRUCTURE

We are pretty aware that the success of any business lies in the foundation on which the
business is built, which is why we have decided to build our car rental services company on
the proper business foundation. We want to build a business with a dedicated workforce that
will go all the way to ensure that our customers are satisfied and get value for their money. In
other to achieve this, we aware that it takes a business with the right employees and structure
to achieve all that we have set to achieve, which is why we will be putting structures and
standard operating processes in place that will help us deliver excellent services and run the
business on autopilot. The success of our car rental services business will be anchored on the
team, not on any individual. With the wide range of our service offerings, we are only
expected to employ more than is required to run a conventional car rental services business.
We will have various employees man the various job roles available in “TRUE” Car Rental
LLC. To maximize operational cost, we will contract the maintenance of all our cars to the
service provider; we don’t intend to maintain a vast overhead from the onset. But as soon as
the business grows and stabilizes, we will assemble our professional in–house maintenance
team. “TRUE” Car Rental LLC will employ professionals and skilled people to occupy the
following position;

 Manager (Owner)
 Accountant / Cashier
 Marketing and Sales Executive
 Client Service Executive
 Car Washer and Auto Detailers
 Standby drivers
 9. JOB ROLES AND RESPONSIBILITIES

Manager (Owner):
 Responsible for providing direction for the business
 Creating, communicating, and implementing the organization's vision, mission, and
overall direction – i.e., leading the development and implementation of the overall
organization's strategy.
 Responsible for fixing prices and signing business deals and payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Responsible for managing the daily activities in the organization
 Ensures that the facility is in tip-top shape and conducive enough to welcome
customers
 Prepares budget and reports for the organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Designs job descriptions with KPI to drive performance management for all
employees
 Regularly hold meetings with key stakeholders (clients and members of the board) to
review the business Policies, Procedures, and processes' effectiveness.
 Maintains office supplies by checking stocks, placing and expediting orders,
evaluating new products.
 Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs.
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation, and assessment of employees
 Oversees the smooth running of the daily activities of the organization.
Marketing and Sales Executive
  Identify, prioritize, and reach out to new clients and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; ensures completion of
projects.
 Writes winning proposal documents, negotiate fees and rates in line with
organizations' policy
 Responsible for handling business research, market surveys, and feasibility studies for
clients
 Responsible for supervising implementation, advocate for the customer's needs, and
communicate with clients
 Develops, executes, and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represent McElroy® Car Rental Services, Inc. in strategic meetings
 Help increase sales and growth for "TRUE" Car Rental LLC
Accountant / Cashier
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides management with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects;
conducts market research to forecast trends and business conditions.
 Responsible for financial forecasting and risk analysis.
 Performs cash management, general ledger accounting, and financial reporting for the
organization
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for "TRUE" Car Rental LLC
 Serves as an internal auditor for "TRUE" Car Rental LLC
Client Service Executive
 Monitors the locations of cars rented by clients via car tracker software apps
 Welcomes clients and visitors by greeting them in person or on the telephone;
answering or directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS, or phone) provide
the client with a personalized customer service experience of the highest level
  Through interaction with clients on the phone, uses every opportunity to build client's
interest in the company's products and services
 Manages administrative duties assigned by the manager in an effective and timely
manner
 Consistently stays abreast of any new information on the organizations' products and,
promotional campaigns, etc. to ensure accurate and helpful information is supplied to
clients when they make inquiries
Car washers and Automobile Detailers 
 Responsible for cleaning, restoration, and finishing of all our cars, both inside and
out, to produce a pristine level of detail
 Handle services that involve cleaning and restoring or exceeding the original
condition of the surface of the car's finish (usually a paint with a glossy finish),
chrome trim, windows, wheels, and tires, as well as other visible components on the
exterior and of course the interior of a vehicle.
 Cleans up after customers and cleans work area.
 Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass
doors and windows, etc., if required.
 Ensures that toiletries and supplies don't run out of stock
 Handles any other duty as assigned by the manager.
Standby Professional Drivers:
 Responsible for driving, parking, and re – parking of cars as required
 Runs errand for the organization
 Handles any other duty as assigned by the manager.
 10. OUR COMPETITIVE ADVANTAGE

The car rental services business is an easy-to-setup business that does not require formal
training to achieve; anybody can set a car rental services business if they have the required
startup capital. It means that the possibility of car rental services business springing up in the
location where our car rental company is located high. We are aware of this, which is why we
decided to develop a business concept that will position us to become the leader in New
York. Our competitive edge is that we are a standard car rental Service Company with a fleet
of comfortable cars and affordable services. So also, the power of our team, our workforce,
and our management. We have a team considered an expert in the car rental services industry,
a team of hardworking and dedicated individuals. We can confidently say that the location of
our car rental services business will count as a positive for us amongst any competitor that
might start a car rental services business in the exact location where ours is located. For the
time being, “TRUE” Car Rental LLC has no real competitors that can match compete with
the quality of services we offer and our fleet of reliable and comfortable cars et al. Our
customer service will be customized to meet the needs of all our customers. Lastly, all our
employees will be well taken care of. Their welfare package will be among the best within
our category (startups car rental services business in the United States) in the industry. It will
enable them to be more than willing to build the business with us and help deliver our set
goals and achieve all our business aims and objectives.
 11. SALES FORECAST

 One thing is sure; there would always be corporate organizations and individual clients who
would need the services of a car rental Services Company. We are well-positioned to take on
the available market. We are pretty optimistic that we will meet our target of generating
enough income/profits from the first six months of operations and growing our car rental
services business and clientele base. We have been able to examine the car rental services
market critically, and we have analyzed our chances in the industry, and we have been able to
come up with the following sales forecast. The sales projection is based on information
gathered on the field and some peculiar assumptions to similar startups. 
Below is the sales projection for “TRUE” Car Rental LLC. It is based on the location of our
business and, of course, the wide range of related services that we will be offering;
 First Fiscal Year-: $250,000
 Second Fiscal Year-: $550,000
 Third Fiscal Year-: $1 Million
 12. PRICING STRATEGY

Our Pricing Strategy
Our pricing system will be based on what is obtainable in the car rental services industry. We
don’t intend to charge more (except for premium and customized services), and we don’t
intend to charge less than our competitors are offering. Be that as it may, we have put plans in
place to offer discount services once in a while and reward our loyal customers mainly when
they refer clients to us. The prices of our services will be the same as what is obtainable in the
open market.
Payment Options
At “TRUE” Car Rental LLC our payment policy will be all inclusive because we know that
different clients would prefer different payment options as it suits them. Here are the payment
options that we will make available to our clients;
 Payment by via bank transfer
 Payment via POS machine
 Payment via online bank transfer
 Payment via check
 Payment via bank draft
 Payment via mobile money
 Payment with cash
Given the above, we have chosen banking platforms to help us achieve our plans with little or
no itches. Our bank account numbers will be made available on our website and promotional
materials to make it easier for clients to make payments when necessary.
 13. SALES AND MARKETING STRATEGY

The marketing strategy for TRUE” Car Rental LLC will be driven basically by reliable and
comfortable cars, excellent customer service, honesty, and quality service delivery. We will
ensure that we build a loyal customer base. We want to drive sales via the output of our
services and via referrals from our satisfied customers. We are pretty aware of how satisfied
customers drive business growth, especially businesses like car rental services. “TRUE” Car
Rental LLC. is a car rental services business that is strategically located, and we are going to
maximize the available opportunities, which is why we spend more to locate the business in a
location that will be visible and enable us to access our target market. Our sales and
marketing team will be recruited based on their vast experience in the industry, and they will
be trained regularly to be well equipped to meet their targets and the overall goal of “TRUE”
Car Rental LLC. Our goal is to grow “TRUE” Car Rental LLC to become the leading car
rental services company, so we have mapped out a strategy that will help us take advantage
of the available market and grow to become a significant force to reckon with within the car
rental services industry. “TRUE” Car Rental LLC. It is set to make use of the following
marketing and sales strategies to attract clients;
 Introduce our car rental services business by sending introductory letters alongside
our brochure to corporate organizations, travel agencies, hotels, households, and key
stakeholders 
 Print out fliers and business cards and strategically drop them in offices, libraries,
public facilities, airports and train stations et al.
 Use friends and family to spread the Word about our business
 Post information about our company and the services we offer on bulletin boards in
places like schools, libraries, and local coffee shops et al
 Placing a small or classified advertisement in the newspaper, or local publication
about our company and the services we offer
 Leverage on referral networks such as agencies that will attract clients who would
need our customized services
  Advertise our car rental services company in relevant magazines, newspapers, TV
stations, and radio stations.
 Attend relevant expos, seminars, and business fairs et al. to market our services
 Engage in direct marketing approach
 Encourage the use of Word of mouth marketing from loyal and satisfied clients
 Join local chambers of commerce and industry to market our services.
Lastly, we need an online presence, a good website, and ensure that it is Search Engine
Optimization (SEO) Compliant if you intend to achieve a good number of visitors that would
patronize your car rental business. The truth is that a website ensures that our business
remains visible to your existing and potential customers.
 14. PUBLICITY AND ADVERTISING STRATEGY

Here are the platforms we intend leveraging on to promote and advertise TRUE” Car Rental
LLC
 Encourage our loyal customers to help us use the Word of Mouth mode of
advertisement (referrals)
 Advertise our car wash and auto detailing business in relevant magazines, local
newspaper, local TV stations, and local radio station
 Promote our business online via our official website
 List our business on local directories (yellow pages)
 Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram, Facebook,
Twitter, et al to promote our brand
 Install our Bill Boards on strategic locations 
 Leverage on direct coupon mailing approach
 Engage in roadshow from time to time in target communities
 Distribute our fliers and handbills in the target area
 Ensure that all our staff members wear our branded shirts, and all our official vehicles
are well branded with our company logo et al

 
 15. FINANCIALS

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $272,623 $99,025 $213,664
Inventory $4,993 $205,028 $102,398
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $327,616 $354,053 $366,062

Long-term Assets
Long-term Assets $300,000 $400,000 $500,000
Accumulated Depreciation $100,000 $200,000 $300,000
Total Long-term Assets $200,000 $200,000 $200,000
Total Assets $527,616 $554,053 $566,062

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $0 $48,059 $26,831
Current Borrowing $40,000 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $40,000 $48,059 $26,831

Long-term Liabilities $280,102 $258,161 $236,219

Total Liabilities $320,102 $306,219 $263,050

Paid-in Capital $130,000 $130,000 $130,000

Retained Earnings ($4,400) $77,514 $117,833
Earnings $81,914 $40,319 $55,178
Total Capital $207,514 $247,833 $303,012
Total Liabilities and Capital $527,616 $554,053 $566,062

Net Worth $207,514 $247,833 $303,012

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $476,955 $607,500 $675,000
Subtotal Cash from Operations $476,955 $607,500 $675,000

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 $476,955 $607,500 $675,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $75,000 $82,500 $90,750
Bill Payments $142,534 $536,657 $347,670
Subtotal Spent on Operations $217,534 $619,157 $438,420

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $40,000 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $19,898 $21,941 $21,941
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $100,000 $100,000
Dividends $0 $0 $0
Subtotal Cash Spent $237,432 $781,098 $560,361

Net Cash Flow $239,523 ($173,598) $114,639

Cash Balance $272,623 $99,025 $213,664
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $476,955 $607,500 $675,000
Direct Cost of Sales $116,589 $297,000 $335,000
Other $0 $0 $0
Total Cost of Sales $116,589 $297,000 $335,000

Gross Margin $360,366 $310,500 $340,000

Gross Margin % 75.56% 51.11% 50.37%

Expenses
Payroll $75,000 $82,500 $90,750
Sales and Marketing and Other $900 $1,100 $1,300
Expenses

Depreciation $100,000 $100,000 $100,000

Leased Equipment $600 $600 $600
Utilities $600 $650 $700
Insurance $2,400 $2,800 $3,200
Rent $24,000 $28,000 $30,000
Payroll Taxes $11,250 $12,375 $13,613
Other $0 $0 $0

Total Operating Expenses $214,750 $228,025 $240,163

Profit Before Interest and Taxes $145,616 $82,475 $99,838

EBITDA $245,616 $182,475 $199,838
Interest Expense $28,596 $24,876 $21,011
Taxes Incurred $35,106 $17,280 $23,648

Net Profit $81,914 $40,319 $55,178

Net Profit/Sales 17.17% 6.64% 8.17%