Wholesale Landscape Products Business Plan

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Table of Contents
1.0 Executive Summary .................................................................................................................... 1

Chart: Highlights .......................................................................................................................... 2
1.1 Objectives.................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 2
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
2.1 Company Ownership ............................................................................................................... 3
2.2 Start-up Summary ................................................................................................................... 3
Table: Start-up Funding ............................................................................................................ 3
Table: Start-up.............................................................................................................................. 4
Chart: Start-up ............................................................................................................................. 4
3.0 Products ........................................................................................................................................... 5
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Chart: Market Analysis (Pie) .................................................................................................... 6
Table: Market Analysis ............................................................................................................... 6
5.0 Strategy and Implementation Summary ............................................................................ 6
5.1 Competitive Edge ..................................................................................................................... 7
5.2 Sales Strategy ........................................................................................................................... 7
5.2.1 Sales Forecast.................................................................................................................... 7
Table: Sales Forecast ............................................................................................................. 7
Chart: Sales Monthly .............................................................................................................. 8
Chart: Sales by Year ............................................................................................................... 8
6.0 Management Summary .............................................................................................................. 8
6.1 Personnel Plan ........................................................................................................................... 9
Table: Personnel ........................................................................................................................... 9
7.0 Financial Plan ................................................................................................................................. 9
7.0 Financial Plan ................................................................................................................................. 9
7.1 Break-even Analysis ................................................................................................................ 9
Table: Break-even Analysis...................................................................................................... 9
Chart: Break-even Analysis ................................................................................................... 10
7.2 Projected Profit and Loss ..................................................................................................... 11
Chart: Profit Monthly ................................................................................................................ 11
Chart: Profit Yearly .................................................................................................................... 11
Chart: Gross Margin Monthly................................................................................................. 12
Chart: Gross Margin Yearly .................................................................................................... 12
Table: Profit and Loss ............................................................................................................... 13
7.3 Projected Cash Flow .............................................................................................................. 13
Chart: Cash .................................................................................................................................. 14
Table: Cash Flow ........................................................................................................................ 15
7.4 Projected Balance Sheet ...................................................................................................... 16
7.4 Projected Balance Sheet ...................................................................................................... 16
Table: Balance Sheet ................................................................................................................ 16
7.5 Business Ratios ....................................................................................................................... 16
Page 1
Table of Contents
Table: Ratios ................................................................................................................................ 17

Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2
Table: General Assumptions ............................................................................................................ 3
Table: General Assumptions ............................................................................................................ 3
Table: Profit and Loss ......................................................................................................................... 4
Table: Profit and Loss ......................................................................................................................... 4
Table: Cash Flow .................................................................................................................................. 5
Table: Cash Flow .................................................................................................................................. 5
Table: Balance Sheet .......................................................................................................................... 7
Table: Balance Sheet .......................................................................................................................... 7
Page 2
Glen Mar Forest Products
1.0 Executive Summary
The marketplace for nursery products and services is changing, both in nature and scope. The
consumer is more upscale, and the market is expanding.
During the last seven years, the number of U.S. households increased 10 percent to 140.9
million. The National Association of Home Builders anticipates 903,000 new home starts this
year, while there will be more than 4.5 million sales of existing homes, according to the
National Association of Realtors.
These facts alone paint a future of opportunity for forest by-products. But they do not stand
alone. A significant population change has occurred. Baby boomers now dominate the housing
market, the 45- to 56-year-old bracket will increase by 54 percent in the next four years,
according to the U.S. Department of Commerce. Recently, 45 to 60 year old customers
emerged as the nursery industry's primary buyers, accounting for 50 percent of retail nursery
sales.
Last year, a quarter of U.S. households spent an average of $500 each for landscaping
(installing plant material in original or renovated landscapes). This helped retailers ring up over
$5 billion in sales.
Glen Mar Forest Products will offer this growing customer base a new product line that will
change the face of landscaping. The product is called Rainbow Mulch™. This color enhanced
shredded hardwood mulch is colorfast and environmentally safe. It does not blow or wash
away and is safe for all plants and animals. The product is 100% organic and produced from
virgin wood products.
The customer can choose from five rainbow colors:
• Rainbow Gold
• Rainbow Brown
• Rainbow Green
• Rainbow Grey
• Rainbow White
Rainbow Mulch™ gives the customer a new landscaping tool that can change a ho-hum lawn
into beautiful landscape.
Page 1
Chart: Highlights
1.1 Objectives
• Establish Glen Mar Forest Products as the regional leader in producing color enhanced
mulch.
• Increase the number of retail outlets carrying Glen Mar Forest Products by 20% over the
next two years.
• Build a solid working relationship with all the region's landscape product wholesale
distributors.
1.2 Mission
Glen Mar's mission is to introduce innovative landscaping products to its target customer base.
Charles Marshall, owner of Glen Mar, will utilize his landscaping background, his experience in
the wood products industry, and his contacts with the region's wholesale distributors to create
products that will change the face of landscaping.
1.3 Keys to Success
The keys to success in Glen Mar's business are:
1. Offering innovative landscaping products. This is essential for maintaining the niche market
sectors mentioned in the mission statement.
2. Reliable and timely deliveries. Glen Mar must make good on its delivery promises.
3. A reliable administration that is ready to serve customers, prepare accurate billing, follow-
up on orders and other documentation, and maintain a close watch on expenses and
collection of accounts receivable.
Page 2
2.0 Company Summary
Glen Mar Forest Products will create landscaping products. Glen Mar Forest Products is located
in Springfield, Oregon. The location offers access to wood for manufacturing our products as
well as excellent shipping resources.
2.1 Company Ownership
Glen Mar's is owned by Charles Marshall. Charles has ten years of landscaping experience and
seven years of experience in wood by-products.
2.2 Start-up Summary
The start-up cost of Glen Mar Forest Products will consist primarily of equipment and
inventory. Charles Marshall and silent partner will each invest equally. Charles will also secure
a hefty long-term commerical loan in an amount matching the two partners' investment.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $107,800
Start-up Assets to Fund $92,200
Total Funding Required $200,000
Assets
Non-cash Assets from Start-up $70,000
Cash Requirements from Start-up $22,200
Additional Cash Raised $0
Cash Balance on Starting Date $22,200
Total Assets $92,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Charles Marshall $50,000
Silent Partner $50,000
Additional Investment Requirement $0
Total Planned Investment $100,000
Loss at Start-up (Start-up Expenses) ($107,800)

Total Capital ($7,800)
Total Capital and Liabilities $92,200
Total Funding $200,000
Page 3
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $800
Brochures $2,000
Insurance $1,000
Rent $3,000
Expensed Equipment $80,000
Truck $20,000
Total Start-up Expenses $107,800
Start-up Assets
Cash Required $22,200
Start-up Inventory $20,000
Other Current Assets $0
Long-term Assets $50,000
Total Assets $92,200
Total Requirements $200,000
Chart: Start-up
Page 4
3.0 Products
Our product is called Rainbow Mulch™. This color enhanced shredded hardwood mulch is
colorfast and environmentally safe. It does not blow or wash away and is safe for all plants and
animals. The product is 100% organic and produced from virgin wood products.
The customer can choose from 5 rainbow colors:
• Rainbow Gold
• Rainbow Brown
• Rainbow Green
• Rainbow Grey
• Rainbow White
Rainbow Mulch™ gives the customer a new landscaping tool that can change a ho-hum lawn
into beautiful landscape.
Rainbow Mulch™ is available in either a 25 lb or a 50 lb bag.
4.0 Market Analysis Summary
Last year, a quarter of U.S. households spent an average of $500 each for landscaping
(installing plant material in original or renovated landscapes). This helped retailers ring up over
$5 billion in sales.
The expanding, upscale landscaping market means more demand for the speciality nursery
products. Landscaping will be a project of high priority among new homeowners, who expect to
spend an average of $3,500 on it. Five percent estimate they will spend $10,000 or more.
Fifty-one percent of these landscape customers are male. Fifty-six percent are 30 to 49 years
old, and 46 percent are married with children. Forty-nine percent are college-educated. Fifty-
one percent hold business or professional jobs, and 56 percent earn $30,000 or more. Half live
in the suburbs.
4.1 Market Segmentation
Glen Mar Forest Products will focus on two customer groups:
• Wholesale Distributors: This group is the critical supplier to retail outlets and pivotal to
the success of Rainbow Mulch™.
• Landscaping Professionals: An important key to the landscaping market is the ability to

add value to property through innovative products or techniques. We believe that Rainbow
Mulch™ is an invaluable tool to landscaping professionals that will improve the range of
options they have in projects.
Page 5
Chart: Market Analysis (Pie)
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Wholesale Distributors 4% 20,000 20,800 21,632 22,497 23,397 4.00%
Professional Landscapers 6% 35,000 37,100 39,326 41,686 44,187 6.00%
Total 5.29% 55,000 57,900 60,958 64,183 67,584 5.29%
5.0 Strategy and Implementation Summary
Glen Mar Forest Products will focus on becoming the leading provider of color enhanced mulch
products.
Page 6
5.1 Competitive Edge
Charles Marshall is the competitive edge of Glen Mar Forest Products. Charles has worked for
both Acme Forest Products and Wilson Landscaping over the past fourteen years.
In his last position with Acme Forest Products, Charles sold wood by-products to numerous
markets on the West Coast. He generated sales in excess of $4 million annually. His strength
is his customer relation skills and he has been successful in expanding the range of products
purchased by wholesale distributors in his sales region.
Before joining Acme Forest Products, Charles was a sales representative for Wilson Landscaping
for six years. Wilson Landscaping is the largest landscaping firm in the greater Lane County
area with sales in excess of $4 million annually.
During his years with both Acme Forest Products and Wilson Landscaping, Charles has made
invaluable contacts with wholesale distributors, landscaping professionals, and commercial
retail outlets. This gives Glen Mar Forest Products the competitive edge in introducing its new
products to its target customers.
5.2 Sales Strategy
Glen Mar Forest Products will have two distinct sales approaches:
• For Wholesale Distributors: We will offer distributors a 20% discount on wholesale

purchases for the first three months of operation.
• For Landscaping Professionals: We will offer landscaping professionals the wholesale

price for Rainbow Mulch™ for the first six months of operation.
5.2.1 Sales Forecast
The following is the sales forecast for three years.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Wholesale Distributors $209,500 $260,000 $310,000
Landscaping Professionals $124,000 $160,000 $200,000
Total Sales $333,500 $420,000 $510,000
Direct Cost of Sales Year 1 Year 2 Year 3

Wholesale Distributors $85,900 $110,000 $130,000
Landscaping Professionals $18,300 $23,000 $24,000
Subtotal Direct Cost of Sales $104,200 $133,000 $154,000
Page 7
Chart: Sales Monthly
Chart: Sales by Year
6.0 Management Summary
Charles Marshall will be responsible for sales and marketing. Glen Mar Forest Products will
have a Production Manager who will be responsible for the daily manufacturing operation.
Page 8
6.1 Personnel Plan
The personnel of Glen Mar Forest Product are as follows:
• Owner/sales and marketing manager;

• Production manager;
• Production staff (3).
Table: Personnel
Personnel Plan
Chales Marshall $33,600 $40,000 $50,000
Production Manager $33,600 $40,000 $50,000
Production Staff (3) $57,600 $60,000 $66,000
Total People 5 5 5
Total Payroll $124,800 $140,000 $166,000
7.0 Financial Plan
The following is the financial plan for Glen Mar Forest Products.
7.1 Break-even Analysis
The monthly break-even point is calculated and displayed in the following table and chart.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $25,743
Assumptions:
Average Percent Variable Cost 31%
Estimated Monthly Fixed Cost $17,700
Page 9
Chart: Break-even Analysis
Page 10
7.2 Projected Profit and Loss
The following table and chart will highlight projected profit and loss for the next three years.
Chart: Profit Monthly
Chart: Profit Yearly
Page 11
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Page 12
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $333,500 $420,000 $510,000
Direct Cost of Sales $104,200 $133,000 $154,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $104,200 $133,000 $154,000
Gross Margin $229,300 $287,000 $356,000

Gross Margin % 68.76% 68.33% 69.80%
Expenses
Payroll $124,800 $140,000 $166,000
Sales and Marketing and Other Expenses $18,000 $36,000 $46,000
Depreciation $2,880 $2,880 $2,880
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $6,000 $6,000 $6,000
Rent $36,000 $36,000 $36,000
Payroll Taxes $18,720 $21,000 $24,900
Other $0 $0 $0
Total Operating Expenses $212,400 $247,880 $287,780
Profit Before Interest and Taxes $16,900 $39,120 $68,220

EBITDA $19,780 $42,000 $71,100
Interest Expense $9,480 $8,760 $7,940
Taxes Incurred $2,226 $9,108 $18,084
Net Profit $5,194 $21,252 $42,196

Net Profit/Sales 1.56% 5.06% 8.27%
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
Page 13
Chart: Cash
Page 14
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $100,050 $126,000 $153,000
Cash from Receivables $181,790 $280,601 $343,059
Subtotal Cash from Operations $281,840 $406,601 $496,059
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $4,000 $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 $10,000 $0 $0
Subtotal Cash Received $291,840 $410,601 $496,059
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $124,800 $140,000 $166,000
Bill Payments $170,595 $262,269 $296,326
Subtotal Spent on Operations $295,395 $402,269 $462,326
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $1,200
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $9,600 $9,600 $9,600
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $304,995 $411,869 $473,126
Net Cash Flow ($13,155) ($1,268) $22,933

Cash Balance $9,045 $7,777 $30,710
Page 15
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $9,045 $7,777 $30,710
Accounts Receivable $51,660 $65,059 $79,000
Inventory $15,950 $17,530 $18,413
Other Current Assets $0 $0 $0
Total Current Assets $76,655 $90,366 $128,124
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000
Accumulated Depreciation $2,880 $5,760 $8,640
Total Long-term Assets $47,120 $44,240 $41,360
Total Assets $123,775 $134,606 $169,484
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $25,981 $21,160 $24,642
Current Borrowing $0 $4,000 $2,800
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $25,981 $25,160 $27,442
Long-term Liabilities $90,400 $80,800 $71,200

Total Liabilities $116,381 $105,960 $98,642
Paid-in Capital $110,000 $110,000 $110,000

Retained Earnings ($107,800) ($102,606) ($81,354)
Earnings $5,194 $21,252 $42,196
Total Capital $7,394 $28,646 $70,842
Total Liabilities and Capital $123,775 $134,606 $169,484
Net Worth $7,394 $28,646 $70,842
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 2493, Reconstituted Wood Products, are shown for
comparison.
Page 16
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 25.94% 21.43% 8.10%
Percent of Total Assets

Accounts Receivable 41.74% 48.33% 46.61% 22.10%
Inventory 12.89% 13.02% 10.86% 16.70%
Other Current Assets 0.00% 0.00% 0.00% 27.00%
Total Current Assets 61.93% 67.13% 75.60% 65.80%
Long-term Assets 38.07% 32.87% 24.40% 34.20%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 20.99% 18.69% 16.19% 36.60%

Long-term Liabilities 73.04% 60.03% 42.01% 15.70%
Total Liabilities 94.03% 78.72% 58.20% 52.30%
Net Worth 5.97% 21.28% 41.80% 47.70%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 68.76% 68.33% 69.80% 31.60%
Selling, General & Administrative Expenses 67.15% 63.13% 61.33% 18.10%
Advertising Expenses 3.60% 7.14% 7.84% 0.50%
Profit Before Interest and Taxes 5.07% 9.31% 13.38% 2.00%
Main Ratios
Current 2.95 3.59 4.67 1.61
Quick 2.34 2.89 4.00 0.98
Total Debt to Total Assets 94.03% 78.72% 58.20% 52.30%
Pre-tax Return on Net Worth 100.35% 105.98% 85.09% 4.20%
Pre-tax Return on Assets 5.99% 22.55% 35.57% 8.90%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 1.56% 5.06% 8.27% n.a
Return on Equity 70.25% 74.19% 59.56% n.a
Activity Ratios
Accounts Receivable Turnover 4.52 4.52 4.52 n.a
Collection Days 56 72 74 n.a
Inventory Turnover 9.68 7.95 8.57 n.a
Accounts Payable Turnover 7.57 12.17 12.17 n.a
Payment Days 27 33 28 n.a
Total Asset Turnover 2.69 3.12 3.01 n.a
Debt Ratios
Debt to Net Worth 15.74 3.70 1.39 n.a
Current Liab. to Liab. 0.22 0.24 0.28 n.a
Liquidity Ratios
Net Working Capital $50,674 $65,206 $100,682 n.a
Interest Coverage 1.78 4.47 8.59 n.a
Additional Ratios
Assets to Sales 0.37 0.32 0.33 n.a
Current Debt/Total Assets 21% 19% 16% n.a
Acid Test 0.35 0.31 1.12 n.a
Sales/Net Worth 45.10 14.66 7.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 17
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 10 Month 11 Month 12
Sales
Wholesale Distributors 0% $14,000 $14,000 $14,000 $16,000 $16,000 $17,500 $18,000 $18,000 $20,000 $20,000 $20,000 $22,000
Landscaping Professionals 0% $5,000 $5,000 $6,000 $6,000 $8,000 $10,000 $12,000 $12,000 $13,000 $14,000 $16,000 $17,000
Total Sales $19,000 $19,000 $20,000 $22,000 $24,000 $27,500 $30,000 $30,000 $33,000 $34,000 $36,000 $39,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Wholesale Distributors $4,000 $4,000 $4,000 $4,400 $6,000 $6,300 $8,000 $8,200 $9,000 $10,000 $10,000 $12,000
Landscaping Professionals $1,000 $1,000 $1,000 $1,080 $1,200 $1,280 $1,700 $1,740 $1,800 $2,000 $2,000 $2,500
Subtotal Direct Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Page 1
Appendix
Table: Personnel
Personnel Plan
Chales Marshall 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Production Manager 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Production Staff (3) 0% $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $19,000 $19,000 $20,000 $22,000 $24,000 $27,500 $30,000 $30,000 $33,000 $34,000 $36,000 $39,000
Direct Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $5,000 $5,000 $5,000 $5,480 $7,200 $7,580 $9,700 $9,940 $10,800 $12,000 $12,000 $14,500
Gross Margin $14,000 $14,000 $15,000 $16,520 $16,800 $19,920 $20,300 $20,060 $22,200 $22,000 $24,000 $24,500
Gross Margin % 73.68% 73.68% 75.00% 75.09% 70.00% 72.44% 67.67% 66.87% 67.27% 64.71% 66.67% 62.82%
Expenses
Payroll $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400
Sales and Marketing and Other $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Expenses
Depreciation $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560 $1,560
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700
Profit Before Interest and Taxes ($3,700) ($3,700) ($2,700) ($1,180) ($900) $2,220 $2,600 $2,360 $4,500 $4,300 $6,300 $6,800
EBITDA ($3,460) ($3,460) ($2,460) ($940) ($660) $2,460 $2,840 $2,600 $4,740 $4,540 $6,540 $7,040
Interest Expense $827 $820 $813 $807 $800 $793 $787 $780 $773 $767 $760 $753
Taxes Incurred ($1,358) ($1,356) ($1,054) ($596) ($510) $428 $544 $474 $1,118 $1,060 $1,662 $1,814
Net Profit ($3,169) ($3,164) ($2,459) ($1,391) ($1,190) $999 $1,269 $1,106 $2,609 $2,473 $3,878 $4,233
Net Profit/Sales -16.68% -16.65% -12.30% -6.32% -4.96% 3.63% 4.23% 3.69% 7.91% 7.27% 10.77% 10.85%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $5,700 $5,700 $6,000 $6,600 $7,200 $8,250 $9,000 $9,000 $9,900 $10,200 $10,800 $11,700
Cash from Receivables $0 $443 $13,300 $13,323 $14,047 $15,447 $16,882 $19,308 $21,000 $21,070 $23,123 $23,847
Subtotal Cash from Operations $5,700 $6,143 $19,300 $19,923 $21,247 $23,697 $25,882 $28,308 $30,900 $31,270 $33,923 $35,547
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $5,700 $6,143 $19,300 $19,923 $21,247 $33,697 $25,882 $28,308 $30,900 $31,270 $33,923 $35,547
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 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400
Bill Payments $218 $6,529 $6,567 $7,985 $12,901 $16,437 $16,417 $20,359 $18,591 $20,748 $22,183 $21,662
Subtotal Spent on Operations $10,618 $16,929 $16,967 $18,385 $23,301 $26,837 $26,817 $30,759 $28,991 $31,148 $32,583 $32,062
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $11,418 $17,729 $17,767 $19,185 $24,101 $27,637 $27,617 $31,559 $29,791 $31,948 $33,383 $32,862
Net Cash Flow ($5,718) ($11,585) $1,533 $739 ($2,854) $6,060 ($1,736) ($3,251) $1,109 ($678) $541 $2,685
Cash Balance $16,482 $4,897 $6,430 $7,169 $4,315 $10,375 $8,639 $5,388 $6,497 $5,820 $6,361 $9,045
Page 5
Appendix
Page 6
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $22,200 $16,482 $4,897 $6,430 $7,169 $4,315 $10,375 $8,639 $5,388 $6,497 $5,820 $6,361 $9,045
Accounts Receivable $0 $13,300 $26,157 $26,857 $28,933 $31,687 $35,490 $39,608 $41,300 $43,400 $46,130 $48,207 $51,660
Inventory $20,000 $15,000 $10,000 $6,000 $6,028 $7,920 $8,338 $10,670 $10,934 $11,880 $13,200 $13,200 $15,950
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $42,200 $44,782 $41,054 $39,287 $42,130 $43,921 $54,203 $58,917 $57,622 $61,777 $65,150 $67,767 $76,655
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Accumulated Depreciation $0 $240 $480 $720 $960 $1,200 $1,440 $1,680 $1,920 $2,160 $2,400 $2,640 $2,880
Total Long-term Assets $50,000 $49,760 $49,520 $49,280 $49,040 $48,800 $48,560 $48,320 $48,080 $47,840 $47,600 $47,360 $47,120
Total Assets $92,200 $94,542 $90,574 $88,567 $91,170 $92,721 $102,763 $107,237 $105,702 $109,617 $112,750 $115,127 $123,775
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 $6,311 $6,307 $7,559 $12,353 $15,894 $15,737 $19,742 $17,901 $20,007 $21,466 $20,766 $25,981
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 Liabilities $0 $6,311 $6,307 $7,559 $12,353 $15,894 $15,737 $19,742 $17,901 $20,007 $21,466 $20,766 $25,981
Long-term Liabilities $100,000 $99,200 $98,400 $97,600 $96,800 $96,000 $95,200 $94,400 $93,600 $92,800 $92,000 $91,200 $90,400
Total Liabilities $100,000 $105,511 $104,707 $105,159 $109,153 $111,894 $110,937 $114,142 $111,501 $112,807 $113,466 $111,966 $116,381
Paid-in Capital $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000
Retained Earnings ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800) ($107,800)
Earnings $0 ($3,169) ($6,333) ($8,792) ($10,183) ($11,373) ($10,374) ($9,105) ($7,999) ($5,390) ($2,917) $961 $5,194
Total Capital ($7,800) ($10,969) ($14,133) ($16,592) ($17,983) ($19,173) ($8,174) ($6,905) ($5,799) ($3,190) ($717) $3,161 $7,394
Total Liabilities and Capital $92,200 $94,542 $90,574 $88,567 $91,170 $92,721 $102,763 $107,237 $105,702 $109,617 $112,750 $115,127 $123,775
Net Worth ($7,800) ($10,969) ($14,133) ($16,592) ($17,983) ($19,173) ($8,174) ($6,905) ($5,799) ($3,190) ($717) $3,161 $7,394
Page 7

Wholesale Landscape Products Business Plan

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

Table: Ratios ................................................................................................................................ 17

1.0 Executive Summary

The customer can choose from five rainbow colors:

1.3 Keys to Success

The keys to success in Glen Mar's business are:

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($107,800)

Total Capital and Liabilities $92,200

Total Funding $200,000

Total Requirements $200,000

The customer can choose from 5 rainbow colors:

Rainbow Mulch™ is available in either a 25 lb or a 50 lb bag.

4.0 Market Analysis Summary

4.1 Market Segmentation

Glen Mar Forest Products will focus on two customer groups:

• Landscaping Professionals: An important key to the landscaping market is the ability to

Chart: Market Analysis (Pie)

Table: Market Analysis

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

5.2 Sales Strategy

• For Wholesale Distributors: We will offer distributors a 20% discount on wholesale

• For Landscaping Professionals: We will offer landscaping professionals the wholesale

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

Chart: Sales Monthly

Chart: Sales by Year

6.0 Management Summary

6.1 Personnel Plan

The personnel of Glen Mar Forest Product are as follows:

• Owner/sales and marketing manager;

Total Payroll $124,800 $140,000 $166,000

7.0 Financial Plan

7.1 Break-even Analysis

Table: Break-even Analysis

Monthly Revenue Break-even $25,743

Chart: Break-even Analysis

7.2 Projected Profit and Loss

Chart: Profit Monthly

Chart: Profit Yearly

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

Gross Margin $229,300 $287,000 $356,000

Total Operating Expenses $212,400 $247,880 $287,780

Profit Before Interest and Taxes $16,900 $39,120 $68,220

Net Profit $5,194 $21,252 $42,196

7.3 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

Cash from Operations