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JTB Products and Services, JTB Integrated Technologies, and JTB Industrial Sales.
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JTB Technologies, Inc
JTB Industrial Sales Division will distribute high-quality Industrial-related products and services
to loc al and national clients in the Automotive and Aerospac e Industries, Primary Metals and
Machining Industries, Mining and Contrac tor Industries, and in the Military and Governmental
proc urement sector.
JTB Products and Services Division will design custom tools tailored to the Automotive, Auto
Repair, Sports Service, and Commercial Drilling Industries. Additionally, this division will also
provide re-conditioning services to clients using our quality products from the JTB product line.
To maximize the equipment and output of the loc ation, this division will be situated within the
same building as the other divisions, making it able to service the distributorship's clients.
JTB Integrated Technologies Division will develop and support a full line of P.C. and
Internet-based business (software) applications. Additionally, JTB will develop and support ad-
based Internet marketplac es, on-line magazines, custom-developed commercial websites, and
other hosted business products tailored to the Industrial marketplac e.
To maximize profitability, JTB Technologies, Inc. will consolidate all of its operations into one
loc ation. JTB's divisions will be loc ated in Richfield, Louisiana. This loc ation is very close to the
I-82 corridor, providing excellent ac cess to the Mississippi, Arkansas and Texas industrial
markets. JTB's management ac quired its roots in the industrial marketplac e while
managing RL&I Tool and Machine, Inc., a privately held corporation that operated in Missouri
for over twenty-five years.
· High percentage of minority ownership will allow the business to participate in spec ial-
interest contrac t bids, special employee-training grant proc urement, and state offered
business development bond offerings.
· The ability of management to work towards developing other avenues of business,
including Military and other governmental proc urement fulfillment.
Based on the current prices in the Industrial Products and Services market, JTB Technologies,
Inc has the potential of making sales of $1,008,798 by year two of the plan. With good
management, a revenue growth of 29% annually is expec ted.
The equity for eac h investor will be based on his or her investment.
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JTB Technologies, Inc
1.1 Mission
JTB will develop and offer only the highest quality products and services.
· Our products will reduce customers' c osts, and have a longer life than the competitors'
products.
· Our re-manufacturing services will also offer the client a solid, value-based purchase
bac ked by a 100% quality commitment and effort by our employees and management.
Using JTB's own manufacturing fac ility as a model and test bed for our products, JTB will
provide the mid-sized corporate market with new and exciting ways to cost effectively manage
all external vendor and customer transactions, yielding continual savings for the users of our
products and services. Our manufacturing partners will also add value to our offering of services,
further allowing JTB to grow into a high-quality, long-term growth c orporation.
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JTB Technologies, Inc
2. Foc used and well-defined long-range goals for longevity. Our plan has been developed
to allow flexibility and growth.
4. Strong marketing goals with niche products and services; targeted services and
products delivered with unique marketing approaches.
6. Previous base of high-quality external support vendors available to build on, with over
twenty years of industry contac ts to work with, in both the purchasing of quality
products, and also in the marketing of our own products.
1.3 Objectives
Our primary objectives are to:
1. Integrate our products and services into the desired marketplac es.
2. Utilize our technology products to gain market share.
3. Resell this technology and its required support services.
4. Provide our clients with high-quality products and services while maintaining high
profitability.
JTB Technologies, Inc. will be loc ated in Richfield, Louisiana. This loc ation is very close to the I-
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JTB Technologies, Inc
82 corridor, providing excellent ac cess to the Mississippi, Arkansas and Texas industrial
markets. JTB's management ac quired its roots in the industrial marketplac e while
managing RL&I Tool and Machine, Inc., a privately held corporation that operated in Missouri
for over twenty-five years.
Further experience was also ac quired while managing RL&I's industrial supply division of RL&I Tool
and Machine. In late 1999 the Missouri corporation was closed and the management shown in
this plan reloc ated here to Louisiana. Prior to leaving Missouri, Technical Marketing
Technologies LLC, a spin-off of the Missouri based corporation was established, and operates
as a sole proprietorship here in Louisiana. With our roots firmly planted in the Industrial
marketplac e, JTB will provide Industrial and Commercial Tools, Safety Products, and Engineered
Sales expertise.
The primary partners in this plan are responsible for all phases of business and product
development with spec ial emphasis on bringing the latest in c omputer design into the
business. With our roots firmly planted in the Industrial Products and services market JTB will
provide Industrial and Commercial Tools, Re-manufacturing Services and engineering expertise
ac quired over the last twenty-five years while working with the following business types:
In addition to providing these clients with industrial products, JTB's sub-divisions will also provide
technical expertise, engineering assistance and all types of outsourced industrial services.
JTB's services division will be utilized for these services in many cases.
Once this is done, Mr. Jeremy will re-establish all of his previous industrial business contac ts to
develop a well-rounded offering of products for immediate resale. This will include several catalog
offerings with over 50,000 products eac h. A stoc k list will also be compiled of the major items
to be offered adding more customer support value to the business.
In the production area, approximately $125,000 of mac hinery allowing the firm to produce its
products and services will be added. We will include both manually-operated and computer-
controlled equipment, depending on availability. At present, the mac hine tool market has an
excess of available equipment which is driving down the costs to purchase these items down
considerably.
During this time (within the initial 60 days of startup), several contrac t-based developers will
be added to begin develop of the internet based software, to later drive the inventory-sharing
and customer-interac tivity aspec ts of the business.
We anticipate that within 18 months, the business will be at a level to attrac t further
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JTB Technologies, Inc
investment, and will be able to buy out its initial investors.
To ac hieve our objectives, we are seeking $253,150 in loan financing, and an additional $455,000
of investment. These loan will be paid from the cash flow of the business, and will be secured by
the assets of the company, and bac ked by the charac ter, experience and personal guarantees
of the owners. Investors will receive dividends as outlined in the plans for eac h sub-corporation.
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JTB Technologies, Inc
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $5,400
Stationery etc. $1,600
Brochures $11,500
Headhunter Fees (IT Div.) $2,000
Consultants $9,000
Insurance $2,250
Rent $2,250
Research and Development $18,000
Patent Process $18,000
Computers, Office Equipment, Software $18,700
Accounting System $3,500
Demo Models $1,200
Office Supplies $2,500
Total Start-up Expenses $95,900
Start-up Assets
Cash Required $496,250
Start-up Inventory $22,000
Other Current Assets $17,000
Long-term Assets $79,500
Total Assets $614,750
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JTB Technologies, Inc
Assets
Non-cash Assets from Start-up $118,500
Cash Requirements from Start-up $496,250
Additional Cash Raised $0
Cash Balance on Starting Date $496,250
Total Assets $614,750
Liabilities
Current Borrowing $0
Long-term Liabilities $253,150
Accounts Payable (Outstanding Bills) $2,500
Other Current Liabilities (interest-free) $0
Total Liabilities $255,650
Capital
Planned Investment
Investment- Industrial Sales Div $0
Investment- Ind Products and Services Div $230,000
Investment- Integrated Tech Div $225,000
Additional Investment Requirement $0
Total Planned Investment $455,000
If the right individuals are sough out, there also may be additional opportunity for them to sell
our services and build customer bases of their own allowing our manufacturing and distribution
divisions the ability to pursue these new clients as well.
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Mitchell R. Jeremy owns and operates Technical Marketing Technologies LLC, a technology and
marketing consulting firm. Mr. Jeremy is an innovator with over 25 years of technical experience
in the Industrial market with an additional 15 years of integrating computers and other
technologies into the manufacturing and distribution of industrial products. Mr. Jeremy has a
proven trac k record of success in launching new business projects and directing operations for
a previous Missouri-based corporation as President of RL&I Tool and Machine, Inc.
A percentage of the stoc k and royalties from our products will be offered to the initial investors.
One primary objective is to develop P.C.- based marketing and order proc essing systems, that
allow compatibility with our clients' existing ac counting systems. When c ompleted, their sales
and order proc essing will be available online, and function as it did internally without interruption.
In many cases, larger corporations are providing EDI services; with high end software and
servers in plac e, these businesses can easily extend larger clients Inventory, Order Trac king, and
Engineering Information. Our objective is to bring our version to market, making it possible for the
smaller corporations to participate in larger contrac t bids.
· Specialty Engineering to reduce the clients production costs through new Tool
Applications.
· Reselling quality Industrial products to fulfill clients engineered production needs.
· Contrac t Bid services, and Contrac t Servicing.
· Manufac turing patented products from the JTB line of Automotive Tool products.
· JTB's - Max-Drill line of specialty hole producing cutting tools.
· JTB's - Max-Kut Commercial waterline hole cutting tools.
· JTB's - Maxi-Kut Insert style drill system for the Sports service Industry.
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JTB Technologies, Inc
· Providing reconditioning for the JTB Commercial hole cutter line.
· Providing reconditioning for the JTB drill system for the Sports service Industry.
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JTB Technologies, Inc
· Manufac turing of patented products from the JTB line of Automotive Tool products.
· Manufac turing of patented JTB - Max-Drill commercial waterline hole cutting tools.
· Manufac turing of patented JTB - Max-Kut Insert style drill system for the Sports
service Industry.
· Providing reconditioning for the Max-Kut Commercial hole cutter line.
· Providing reconditioning for the Max-Kut drill system for the Sports service Industry.
· Providing reconditioning of industrial tools sold by JTB's Industrial Sales Division.
The Integrated Technologies Division will provide the corporation with profitable, internet-
based marketing media and spec ially-developed business- growth applications, to create a unique
customer service environment. All of the developed applications will be licensed for resale to
individual businesses, and web developers. The division will also develop specialty applications to
unite groups of businesses to provide larger clients with a strong systems- contrac t-style of
purchasing.
· Web Content
· Industra - Industrial and commercial website system.
· Industrial search engine technology.
· Industrial and Commercial Web development.
· Industrial and Commercial Hosting and Marketing support.
· Data management applications.
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JTB Technologies, Inc
unsurpassed test environment which gives the marketing department an almost instant feel for
which avenues of marketing work and how they are performing.
JTB's Industrial Sales Division will purchase goods and services for resale from many sources
throughout the U.S. Our distributor relationships with our suppliers will be a key fac tor in our
sales proc ess. Our many years of mac hining and engineering bac kground will lend credibility to
our sales proc ess. An order could be as simple as filling a customer requirement for a specified
manufacturer's EDP number, to getting faxes with requests to provide spec ialty tools for the
manufacturer, so they can complete their manufacturing proc ess.
JTB's internally manufactured products are developed to perform better than the competition.
Our products are developed with the goal of providing our clients a good, value-based
purchase that will help them be more profitable in their day-to-day operations. Our commitment
to high quality and consistency in our products and services is what sets us apart from others.
3.3 Fulfillment
In addition to direct reselling of products from affiliated manufacturers, our mix of nearly 300,000
industrial and safety products available through our catalog will allow us to compete against
the much larger catalog suppliers.
JTB Products and Services fulfillment proc ess includes developing our own product offering
combined with well-managed secondary services which c ompliment our products, and post-
sales services for the industrial sales division's clientele as well.
JTB's Integrated Technologies Division will fulfill its clients' needs by developing its own media
to support our Web-based products. This media will handle customer support and download
capabilities for clients to ac cess our products. Boxed CD versions of our products will be
available in our inventory, and shipped as needed. Further fulfillment comes when our staff, or an
outsourced engineer, travels to a client to make a hardware or software installation.
3.4 Technology
Computer-Controlled Equipment
With the proper mix of equipment, JTB can work as both a manufacturer and a service provider,
repairing its own products, and it's competitors products as well. Additionally, the equipment
gives the business an opportunity to sell itself at the production managers level, as well as at
the shop level, forging solid ties with production and engineering managers.
JTB will develop its own P.C.- based sales and marketing help systems for its employees to use
during the sales proc ess. Our applications will have extensions to our Internet sites to aid the
customer relations and sales proc ess. Our goal is to have extensive in-house Web development
capabilities via our Integrated Technologies Division. Additional plans include multiple industrial
portals for our advertising needs, and custom sales applications for licensing.
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Our prototype service will be handled via the Internet. A client sends a CAD file to our secure
dedicated servers, we download the CAD file into the 3-D prototype equipment, and the
proc ess of developing a tangible prototype begins. This new technology ac tually builds a 3-
dimensional model of the customer's intended part; depending on the material, some components
are durable enough for field test-fitting. This type of technology will bring JTB much c loser to the
Aerospac e and Automotive industry. This proc ess can also help JTB develop additional products
for different markets.
In particular, we will add products to complement our own lines, and develop a sales strategy
around eac h product. The additional products and services will likely come from our distributor
partners as they will be hand picked for their strengths, allowing us to develop high- quality
product and service offerings. Our distributor partners can also produce additional private label
products for us to incorporate into our lines without adding additional equipment and internal
overhead.
Further development on this strategy will come from our engineering software applications; co-
developed by our Integrated Technologies Division, these applications will allow us to work with
application engineers to fine-tune products to maximize the products' life, yielding the best
possible results.
The Louisiana market consists of 4,553 potential clients in the same categories.
These industries represent our intended target market. Our sales goal is to integrate our
Industrial Products and Services into the above markets. Our sales approach is simple, utilizing
a well-trained, inside sales staff to approach new clients, and to respond to well-plac ed ads in
industrial publications. Our P.C.- based server applications will make it possible for these
businesses to interac t closely with JTB and its distributor partners.
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· Our customers are seeking cost reduction in their daily operations. As JTB will function
as a distributor and a service provider, we can deliver custom specialty products
faster, with fair, competitive prices.
· All of the above markets are seeking longer product life, resulting in higher profitability.
Our overall experience in mac hining, grinding, and production management can provide our
clients with actual measurable results.
· All market segments purchase similar products and services, consolidating our internal
purchasing and marketing costs, maximizing long range profitability, while reducing
external costs as we gradually implement our order plac ement systems.
· All market segments can be serviced via existing modes of transportation (UPS, Fedex,
DHL).
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JTB Technologies, Inc
Over the last five years, we have been working with a limited budget to ac quire as much
knowledge as possible about sc ript proc essing to drive user/owned, user/developed site
content management systems that incorporate many of the features found in higher-end
programs. JTB will bring these products to market for 1/10th of the cost, while earning additional
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JTB Technologies, Inc
revenues with paid support services.
JTB's management has been working in this marketplac e for the last 5 years, collecting
information, and talking to businesses about their needs. As I was, most businesses are unhappy
with the Web development aspec ts of marketing, and many of the businesses in this group
have not had great success with attrac ting additional business via their sites. Sites tend to
stagnate and are not utilized effectively by the businesses as they are at the mercy of the
site developers demanding fees for continual changes. In most cases the developers do nothing
in the way of marketing the sites, and I have seen in some cases, sites are not even
registered with the search engines.
JTB will develop interac tive, Web-based products to replac e older technology sites, or work
with their existing site. As intended, we will develop our P.C.- based sales and marketing
products, to work interac tively with the businesses' sites, providing real-time inventory and
other customer-demanded interac tivity.
Industry by count:
The above client numbers are based on data available from Hugo Dunhill Mailing Lists, Inc., our
preferred database provider. Larger firms like Peoplesoftware, Profit2100, Dimasystems, and
Net2soft have developed very expensive software and netware pac kages starting at $10,000 -
$50,000 and up. Our cost analysis has shown that there are many cost competitive options
available for businesses to choose from, in many cases they are simply unaware they are
available. As a service business that will utilize our own products, we can market and demo our
products simultaneously, further reducing our costs per solicitation.
As our niche market is small to mid-sized corporations, these potential clients can benefit from
our industrial sales division's distributed products. Once the potential client bec omes an
established client of any JTB division, eac h c an be reviewed by the internal staff for further
potential. JTB's product and services division will compete for market share with a high-quality
offering of products and services that foc us on providing the customer with longer operation life,
and select product lines tailored to eac h c ustomers specific needs.
Commercial Utilities and Drilling clients: These clients are made up of individual commercial
service providers and contrac tors providing hole drilling services. Our proc ess for re-
manufacturing / re-building their drilling units will better the OEM's efforts to make and sell a
quality tool. The base cost index for these tools is very high, typically in excess of $2675 per
unit. These clients generally pay a minimum of 50% for a rebuild. Competition in this
marketplac e is developed as commercial plumbing supply houses; typically, the client is on their
own in terms of technical help. Our unique cost saving rebuild proc ess will be directly marketed
to them, also our industrial sales division can service these clients as well.
Sporting Good Service Centers: These clients are made up of bowling suppliers. Our
patented products will out-perform any available products, and create a large re-conditioning
market for JTB, as our patented products can only be reproduced by us. Competition in this
marketplac e is not very strong, as no one has developed a product for this proc ess, nor has
there been any standardization for this proc ess. Our Max-Drill product line re-defines the proc ess
giving the shops a plac e for technical help, good service, and a product that provides ease of
use, and a very cost-effective proc ess.
Metalworking and Manufacturing: These clients are made up of Machine shops, Aerospac e
Manufac turers, and other specialty manufacturers requiring industrial products and services.
Our services department will add value and services to JTB's industrial sales division, as it can
utilize the services division's equipment to provide its clients with c ustom solutions. Competition
is strong, as these clients work with both loc al suppliers, and catalog companies. As JTB has a
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very marketable mix of industrial sales, and industrial services, this will provide the added edge
to ac quire clients.
The loc al distributorships in size compare to our Third, Fourth and Fifth year projections in
terms of their size. There are also mega catalog distributorships with sales up to 50 Million
annually.
Presently, the loc al industrial suppliers and service providers do not really provide an effective
combination of supplying a cost-effective service strategy that yields the customer any real
savings. The loc al distributors must also rely heavily on outsourcing for many of their
services, which drives up the shipping costs to the customer dramatically.
This business plan allows for low-cost implementation of Internet-based customer ac cess, as
well as direct marketing where needed. The plan also foc uses on the needs of our clients,
working within particular parameters that permits the business to respond to small and large
clients equally efficiently.
When ac complished in-house, the value turns into a quality product or service for a reduced
overall cost to the customer. Simpler logistics means faster overall services at a reduced cost.
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As computer networking is a strong area for me personally, I see the benefits to businesses
that have solid, network-based sales and marketing tools in plac e. Overall, our goal is to utilize
our own applications and developed credibility to share our inventory and other services. When
completed, JTB will be able to offer much larger clients an extremely large variety of products
and services. When presented to these clients in the form of a Web-based purchasing system, it
will offer easy integration into their purchasing needs at little or no cost to them, ac cessible 24
hours a day, 7 days a week.
All of the JTB divisions will benefit from the marketing, strategic ad plac ement and direct
marketing products offered by eac h of the JTB divisions.
1. Develop a high-profile sales environment, to bring our products to new and existing
clients.
2. Develop new ways to market our products to potential clients via our branded
applications and credibility.
3. Develop manufacturing partnerships utilizing our Web-based applications.
4. Develop and maintain a high-quality customer service and follow-up program for all of
the JTB divisions.
5. Develop and utilize an ongoing automated marketing system to contac t potential clients.
6. Carefully target marketing expenditures to maximize returns on the campaigns.
In general, it is usually fairly easy to compete in both the catalog business and the industrial
sales business in terms of percentages, but we will not structure our pricing to give the house
away. What will set us apart is the services offering following the sale. We will generate
additional revenues by servicing the distributed products, thus another sales point to be made as
well. "Not only can we sell you the new products you need, we can service them in-house as
well."
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JTB Technologies, Inc
All of our media marketing products and custom-developed applications can be offered on a
trial and demonstration arrangement. Promotional strategy will include a 100% performance
guaranty with a money-bac k offer. Part of our strategy is to develop the products in such a way
that modules can be added when the client would like additional features. All of our products
will have a help and support area with 24 hour ac cess. This will also allow a no-cost, Web-based
demonstration and product marketing environment.
With order fulfillment as the major priority behind developing this system, we will work to
integrate our clients needs with our abilities, and the abilities of our distributor partners to
fulfill our clients' requirements.
Additionally, our catalog program will also keep the business in direct competition with the
larger catalog businesses; our highly-respec ted products and services will generate a large
long-term customer base.
JTB's Integrated Technologies division will develop long-term relationships with many media
developers, to provide our clients with a broad offering of products and services. Our
developer partners and technology suppliers will be hand-picked for their products and
capabilities. Our main goal while developing our strategic alliances is to select the best possible
providers we can loc ate. When developed, JTB will utilize our business development
applications to network with our clients, and distributor partners to create a unique collaborative
environment capable of providing the needed input to fulfill and complete our media projects.
Customers can ac cess their ac counts via the Internet to review purchases, request quotes,
and plac e orders. Pre-sales engineering will be available when consultation is needed. JTB will
develop online databases about the products we represent; the same database will be
available to our staff when conversing with c lients about projects. CAD and other engineering
software will work out potential issues on spec ialty projects prior to ordering. After the pre-
sale proc ess is complete, the staff will generate a formal quote to be sent to the client in the
format they prefer.
The most prominent components of our sales proc ess are ease of use and a knowledgeable
staff to promptly fulfill orders. Having purchased from all types of businesses, including cutting
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JTB Technologies, Inc
tool manufacturers, industrial distributors, and industrial catalog houses, JTB will blend the best
features from our purchasing experiences into a comfortable, customer-oriented purchasing
environment.
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Our sales forecast has an average margin of 36%. As an established direct or stoc king distributor
we previously had disc ount arrangements of up to 68% off list pricing these changes would
result in an additional 15 - 30% reduction in our direct costs of goods picture.
JTB's Products and Services Division: Many of the services provided are billable hourly at
nearly $60.00 per hour for service work. In c omparison, some products manufactured internally
will need to be at a lower shop rate to provide for more competitive pricing to break into the
different markets. We will work to have many of the patented products manufactured
externally, allowing our equipment to be utilized on more profitable work. Contingencies need to
be in plac e to bac kup all products and services offered in the event of personnel issues, or
equipment failure. These fac tors all affect the break even analysis as well. If we were
producing only one or several product lines you could show controlled costs vs products
manufactured. This plan however provides additional and substantially more profitable services to
all of the clients utilizing our products and services. The services are both fixed price list
services, and billable hourly for special work.
With potential clients and distributor partners numbering near 330,000, the sales forecast for
JTB's Integrated Technologies Division looks strong. As we are developing our own products
and services for resale, and in the form of renewable subsc ribed services there is a substantial
amount of market available. With the average business spending approximately $3,000 or more
annually, this quickly bec omes a $990 Million marketplac e.
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5.6 Milestones
Secure Leasing, Banking, and Attorney Arrangements - Long term arrangements to secure
the equipment financing, banking relations, and general and patent attorney needs.
Setup JTB's Industrial Services Location - Prepare working area for incoming equipment,
wiring, shipping and receiving areas, networked ac counting systems, and develop a work flow
methodology for the entire shop.
Complete the equipment selections and installation - Equipment will be selected from
various mac hine tool dealers throughout the U.S. These mac hine tools will be inspec ted closely
for quality, selecting the best possible pieces while working within our budget.
Contracted Application Developer selection - JTB will contrac t for a long-term relationship
partner seeking a progressive, well-established multi-talented individual to create the desired P.
C.- based business applications we plan to develop as part of our product offering. This individual
will work closely with management in a hands- on fashion to custom-develop the base code
needed for our application.
Re-establishment of Business Contacts - Our sales manager will personally work to re-
establish all of his previous business relationships in the industry, working to build both c lient and
vendor relationships.
JTB Service associate selection and training - Service Associates will be from a production
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bac kground, familiar with manufacturing and general mac hining; training will be ongoing for at
least 1 year. Management will work with these individuals on a one- on-one basis to ac complish
this, and minimize training costs while still completing orders as needed.
Selection of Sales Associates - JTB's Industrial Sales division will be seeking bright, sales-
oriented individuals to fulfill our internal needs for customer support, sales and marketing
initiatives, and long-term goals.
Begin Catalog Program - Initially, we will order 250 sets of custom catalogs. We anticipate
developing up to 1,200 c atalog clients during the 4 years projected in the plan, with 300,000
to 400,000 industrial items available for resale.
Applications development begins - JTB application developer will begin development of our
sales, marketing and engineering applications for integration with the corporations' websites,
as an aid for staff members to manage customer requests, engineering help, and exporting
sales and engineering information about our products and services offering. When c ompleted,
these P.C.- based tools will interac t with our Internet-based sites, and will bec ome part of our
applications offering of customer support products.
JTB Industrial Services Marketing Campaign - Our marketing campaign will initially target
the loc al market with an initial letter to the key personnel within the target businesses. This
introduction will be a combination letter marketing the JTB Industrial Sales Division as well;
alternately, the Industrial Sales Divisions sales personnel will be following up on these ac counts.
Marketing Sites are established - JTB will develop and manage multiple marketing sites
dedicated to target market JTB's entire line of industrial products and services. These sites will
also generate revenue with additional product marketing from our channel partners.
Revenue Sites are established - JTB will develop and manage multiple industry specific sites
dedicated to matching buyers with suppliers. These sites will be a pay-per-ad situation,
allowing businesses to highlight their products and services. The JTB media groups logo will
allow visitors to ac cess our product and service sites. In some cases, JTB will be a vendor in
these sites as well.
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Table: Milestones
Milestones
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offering into the marketplac es to be developed, we will get day-to-day information and feedback
from the various paid ads we plac e in industrial trade magazines, and with other websites as
well. The Web plan is to link our products and services with as many affiliate sites as possible.
When established, these marketplac es and affiliate sites will serve as a very cost-effective
marketing tool for all of the JTB divisions, again keeping in mind that eac h division's approach
to this will be tailored towards its intended potential clients. Each division will have dedicated
websites operating under the JTB logo. With a trac k record available at all times via our
servers, we can easily show others seeking a better marketing system, order proc essing, Web-
based marketing, or special applications that JTB products perform as intended, providing
affordable long term growth results for our clients.
As JTB will develop all of its sites and Internet based applications, this will be done at a
considerably lower overall cost that our competitors would spend to develop the same type of
Web-based applications.
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JTB Technologies, Inc
Mr. Jeremy will work with the managers and staff of the industrial sales division to train staff,
and ac t as the project manager on bigger projects requiring an engineered sales bac kground.
Additionally, Mitchell will train the staff on the technical aspec ts of the products, and the use
of the corporate intranet to further train the sales staff. Mr Jeremy will develop all of the
internal and external sales and marketing programs to train and orientate staff and customers
with our products and services. New products and programs will be added in layers as they are
developed.
Intranet: Mitchell Jeremy will continually develop our company intranet as new products and
services are added. Staff will be able to quickly search for items in our inventory, or in our
network of distributor partners, our catalog offering will be indexed in the intranet as well. One
key training goal for our staff is to make the associates self-sufficient as quickly as possible on
our base inventory. Working from standardized product lists and promotions containing many of
our base products will expedite the training proc ess.
Additionally, he will be solely responsible for the development, testing, creation, and patenting all
of the JTB tool products and services to be offered by the products and services division.
During year one of the plan, Rac hel will ac t as the Service Team Manager. She will oversee order
proc essing, sc heduling of outsourced orders, and ac t as the general business manager in Mr
Jeremy's absence. After year one, the service team members and service team manager will be
fully trained to handle the day-to-day workload in their area. Rac hel will then continue to
maintain the ongoing day-to-day work schedule, trac k time and billing issues, and remain in c lose
contac t with the clients to ensure that JTB is meeting its required deliveries and all that is
required by the customer.
Sales Team Leaders will work in both a sales and marketing role, providing customer support
while
continually training to market new products and services.
The customer support assoc iate/manager will work in all areas of sales, marketing and
customer support, providing customer support while continually training to market new products.
This manager will keep trac k of all services offered and products supported, train service
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JTB Technologies, Inc
personnel, and be responsible for maintaining a quick response time to customer service needs
and inquiries.
Sales Assoc iates will work in both a sales role, providing customer support while continually
training to support new products and services offered.
Responsible for shipping, inventory, and receiving incoming goods. Packing orders for shipment,
and misc ellaneous jobs throughout the business.
The customer support assoc iate/manager will work in all areas of sales, marketing and
customer support, providing customer support while continually training to market new products.
The customer support assoc iate will be available to cover the operating hours of the office when
the manager is unavailable. This role will foc us more on developing new clients while also
providing customer support when needed.
The Sales and Marketing Assoc iate will work in a sales role, new customer development and
follow up marketing.
Application Developer
2nd, Part-time App Developer/QA Tester
Web Developer
These employees are foc used spec ifically on developing our products. These
developers will also create updates and provide any additional custom work when needed.
The service team manager is a working manager position requiring complete knowledge of all
the manufacturing proc esses. This position will answer directly to the Operations Manager.
TBA. Service Associates will perform the manual labor required in the service and production
department.
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JTB Technologies, Inc
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Production Personnel
Shipping and Receiving $9,600 $9,600 $14,400 $18,800 $22,500
Application Developer $48,000 $50,000 $50,000 $50,000 $50,000
Part-time App Dev/QA $10,800 $14,000 $14,000 $14,000 $14,000
Web Developer $36,000 $10,800 $10,800 $10,800 $10,800
Service Team Manager $35,200 $24,000 $28,000 $29,500 $31,500
Service Team Member $8,800 $21,000 $23,000 $25,000 $28,000
Subtotal $148,400 $129,400 $140,200 $148,100 $156,800
Other Personnel
Name or Title $0 $0 $0 $0 $0
Name or Title $0 $0 $0 $0 $0
Name or Title $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0
Total People 13 13 13 13 13
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JTB Technologies, Inc
1. To develop the Industrial Sales Division of the corporation, JTB's financial plan is
based on receiving $181,000 (USD) in long-term loans. To maintain Gross Margins of
36% or better, the Industrial Sales Division will also help develop and create Internet-
based industrial sales applications and portals in c onjunction with our Integrated
Technologies Division.
2. To develop the Products and Services Division of the corporation, JTB's financial plan
is based on raising $230,000 (USD) by way of private equity to set up the products and
services division of the corporation. An additional $45,000 for equipment will be
obtained as a long-term loan. These operational costs are shown in the operating
statements projected in this plan. Management expec ts to ac hieve a small but stable
net profit on sales in just over two years.
The consolidated financial plan combines all divisional operating costs, including personnel,
equipment, loc ation costs, depreciation etc. For ac curac y and organizational reasons, we
have developed three related sub-plans, as eac h provides exac t details of eac h sub-division
goals and position within the corporation. JTB Technologies, Inc. will behave more like a holding
company. For this overall plan, the industry profile selected for comparison purposes was an
automotive parts and supplies manufacturer, since our combined companies are very similar to
this in terms of developing, manufacturing, servicing, and marketing tangible mac hinery
products for end-users. After year five of the plan, management hopes to develop or purchase
other divisions.
By the end of FY 2 of this plan, JTB will have developed sales revenue of $1,008,798 (USD) with
a Gross Margin on sales of 39.35%. By the end of FY 3 of this plan JTB will have developed
sales growth of 29% over year one, and sales of $1,303,319 (USD), while the Gross Margin on
sales has increased as the corporation improves on overall performance.
The exit for this plan has been left open; this can be disc ussed in detail after the plans' review. I
would provide a full recalculated version based on the investors' requirements. Further disc ussion
on the patented products' ac tual values, and expec ted percentages of the investors'
ownership are left open as well.
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JTB Technologies, Inc
All Profit and Loss tables in this main plan include the numbers from the sub-plans, and take
into consideration all of the operating expenses.
Key assumptions around which we have developed this plan are as follows:
The General Assumptions table below is utilized by the business plan to perform calculations on
the expec ted conditions in the business plan. These fac tors also play heavily into the business'
long-term plan, assuming the business can be developed in its entirety in one loc ation. This
greatly reduces operating costs, and provides a more flexible staff situation for cross- training
and other issues.
Upon reviewing the plan, you may have noticed management has mentioned expansion through
use of its online marketing system via numerous channel partners throughout the U.S. The
possible revenues from this have not been added into any projections. Management's position on
the plan's assumptions is that we can make better long-term arrangements, which should
better the projected cash position shown.
This system is complete with project management capabilities and budgeting; as such,
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JTB Technologies, Inc
management will implement a budgeted approach for the projects while adjusting costs in JTB's
favor wherever possible.
All Profit and Loss tables in this plan include all of the projections from JTB's three divisions. We
suggest that eac h plan is reviewed, as eac h is quite different.
1. Sales growth in this plan does extremely well, as the business offers a broad range of
products and services. Growth of approximately 37% per year can also be attributed to
the unique marketing products that we will develop and use in our marketing proc ess to
reac h c ustomers all over the U.S.
2. Gross Margins in this plan average 38% annually, and are attributed to our products
and services selections and how they apply to their individual markets. Our intranet-
based inside sales and marketing products provide our sales staff with the ability to
calculate the margins per order plac ed while proc essing orders. Product and Vendor
selections play a key role in profitability as well.
3. Operating Expenses in this plan remain stable as the projected personnel plan, and
operating expenses are essentially fixed during the first five years of the plan.
4. Inventory Turnover in the business plan shows good control over the planned
inventory, and short and JIT ordering is not a problem. In many cases, we will
implement vendor drop shipments, further lessening the need for additional inventory.
Some inventory lag could oc cur if a client wants inventory on hand for special
products; we would then be required to stoc k these products.
5. Collection Days are set to average 45 days. One key goal will be for the business to
target financially healthy businesses. We also anticipate a very large market of small
order purchases plac ed with c redit card or e-chec k via the internet.
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The initial goal is to bring the hard products to market within 60 days from startup along with the
addition of numerous well-ac cepted industrial products for resale. What will set JTB apart from
the other industrial entities is its ability for flexibility, expansion, and its individual divisions with
key individuals all under one roof targeting eac h market segment JTB will pursue.
With this in mind, the goal is to build a solid base for the corporation with our primary products
and services while continuing the development phase of our distribution software.
Assumptions:
Average Percent Variable Cost 57%
Estimated Monthly Fixed Cost $21,059
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JTB Technologies, Inc
The Projected Profit and Loss table takes into consideration all of the basic operating costs for
the entire corporation and all of its divisions. The P&L in this business plan also includes a full
depreciation sc hedule while remaining profitable. When management produced the table, we
would have preferred to project a softer startup with more of a gradual expense growth as we
added equipment and services.
Management's goal is to work with a leasing company that will provide a construction type loan/
lease situation allowing us time to hand-select the best possible equipment while minimizing the
cash outlay during this proc ess. For the purposes of this plan, and to maintain a conservative
approach, we have expensed this equipment in the start-up table. With this considered, the long
term goal has not changed and is reflected in year 2006.
With c onsideration given to note 8.1.1, management still feels it can produce a better-
structured corporation than what is shown in the existing business plan. Other considerations
not included in the P&L are the burden of management, and management's output. Please
remember when you do review the P&L, that the 3 JTB divisions will ac tually be operating
under one roof. As such, management's role will be to fill in, in all areas of production wherever
needed to complete orders.
Management's operating schedule will also be overlapped to "keep our doors open" more
operating hours than any of the other 9 to 5 operations. Management anticipates running at
least 50 hours per week allowing us to develop more business on the west coast' which is also
not calculated in the P&L.
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JTB Technologies, Inc
Operating Expenses
Other Expenses:
Other Payroll $0 $0 $0 $0 $0
Consultants $0 $6,000 $6,000 $6,000 $6,000
Other Other Expenses $0 $0 $0 $0 $0
Total Other Expenses $0 $6,000 $6,000 $6,000 $6,000
Other % 0.00% 0.59% 0.46% 0.37% 0.30%
Profit Before Interest and Taxes ($156,928) $71,004 $193,160 $341,354 $534,221
EBITDA ($146,232) $81,704 $203,860 $352,054 $544,921
Interest Expense $24,425 $22,849 $21,202 $19,556 $17,909
Taxes Incurred $0 $14,447 $0 $96,539 $0
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JTB Technologies, Inc
The outsourced manufacturing allows the company to have the product lines it desires while
utilizing its internal personnel on the more profitable services to be offered. The outsourced
products operate under a fixed cost situation, while the services area will for the most part be
working in a cost plus situation filling special and rush requests that carry a much higher shop
rate. As the cash flow projects only the base products described in the business plan,
its highly probable JTB will be involved with more outsourced products in years two through
five, furthering our potential profitability.
Please review section 8.1 regarding the Important Assumptions to get a better feel for the
explained projected cash flow.
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JTB Technologies, Inc
The business will build its cash position while also developing a strong net worth. Total
assets exceed $1 Million by year 5 as well. A full depreciation schedule and payment schedule is
included to depreciate the long-term assets.
During the life of the plan, inventory requirements may change as we offer our clients different
purchasing options and build our inventory of used products. Any differences in c ash flow and
inventory would show that the cash is tied up in inventory. With this in mind, we would try to
keep the required inventory down to reasonable levels wherever possible.
The products and services division is a service oriented segment of the business. Many of the
services offered are tied to particular product lines offered, allowing the business to create
multiple income streams throughout the development of the plan. For segmentation purposes,
some products have both labor and materials to manufacture a product, some have labor only
when providing a service. The segmentation shown in the plan does not break the finer details of
this down. This is also the case with the other two divisions as well; both c an provide labor-
based services with their product offering as well.
The overall projected balance sheet reflects a strong corporation capable of fully repaying the
original investors, and a corporation that can attrac t further investors later in the plan if desired.
The long-term plan for the corporation looks good as the continued growth of our distributor
partner program is beginning to show good growth as well.
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JTB Technologies, Inc
Current Assets
Cash $243,728 $165,492 $312,137 $415,015 $670,999
Accounts Receivable $108,902 $187,977 $242,857 $299,017 $376,546
Inventory $65,223 $68,090 $74,983 $87,737 $116,340
Other Current Assets $17,000 $17,000 $17,000 $17,000 $17,000
Total Current Assets $434,854 $438,559 $646,977 $818,769 $1,180,885
Long-term Assets
Long-term Assets $79,500 $79,500 $79,500 $79,500 $79,500
Accumulated Depreciation $10,696 $21,396 $32,096 $42,796 $53,496
Total Long-term Assets $68,804 $58,104 $47,404 $36,704 $26,004
Total Assets $503,658 $496,663 $694,381 $855,473 $1,206,889
Current Liabilities
Accounts Payable $89,189 $64,952 $77,178 $99,477 $111,047
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $89,189 $64,952 $77,178 $99,477 $111,047
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JTB Technologies, Inc
The averaged ratios of the 3 divisions reflect a strong growth with regards to its Gross Margins
as these margins are made up of many elements combining distribution, products, and services in
this plan. Initially we are slightly lower on the Gross margin in c omparison to the industry profile
partially due to new equipment debt load, and the training period to reac h full capacity.
Our long-term assets will dec line below industry profiles as equipment is paid down, but our
overall Debt to Asset ratios are much better than the industry in overall results as leaner
manufacturing and better coordinated use of our channel partners come into play allowing for
more growth without incurring additional expense.
Our General and Administrative ratios are initially higher than the industry, but this personnel
plays an essential role as the business grows towards its growth and outsourcing goals. Also
the industry standard profile could reflect more automation than we have at this point, their
requirements could reflect less personnel.
Our sales growth is substantially greater as we are adding new products and services eac h
year to the plan, and our Gross average margins are also higher than the profile, due to the
high profitability in our marketing products and services.
Overall our ratios are better than the industry as we have maximized our marketing budgets
and marketing avenues while keeping costs in c hec k. Further maximization comes in the form of
training the sales staff on maintaining profit per order levels when proc essing orders. Our
unique order proc essing Intranet, and Internet pac kage makes for streamlined repeat ordering by
customers further allowing our staff to proc ess orders more efficiently, while reducing the
internal costs of proc essing orders.
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JTB Technologies, Inc
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth n.a. 72.61% 29.20% 23.12% 25.93% 2.95%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 16.39% 39.35% 42.98% 45.35% 46.61% 19.32%
Selling, General & Administrative Expenses 47.42% 36.01% 29.79% 31.32% 21.06% 11.47%
Advertising Expenses 2.36% 1.78% 1.86% 1.58% 1.30% 0.31%
Profit Before Interest and Taxes -26.85% 7.04% 14.82% 21.27% 26.44% 0.58%
Main Ratios
Current 4.88 6.75 8.38 8.23 10.63 1.76
Quick 4.14 5.70 7.41 7.35 9.59 0.67
Total Debt to Total Assets 64.71% 57.42% 40.46% 33.53% 23.36% 64.48%
Pre-tax Return on Net Worth -102.03% 22.77% 41.59% 56.59% 55.82% 1.69%
Pre-tax Return on Assets -36.01% 9.70% 24.76% 37.62% 42.78% 4.75%
Activity Ratios
Accounts Receivable Turnover 4.02 4.02 4.02 4.02 4.02 n.a
Collection Days 42 72 80 82 81 n.a
Inventory Turnover 9.99 7.17 8.37 8.90 8.99 n.a
Accounts Payable Turnover 6.01 10.43 10.43 10.43 10.43 n.a
Payment Days 31 42 32 31 33 n.a
Total Asset Turnover 1.16 2.03 1.88 1.88 1.67 n.a
Debt Ratios
Debt to Net Worth 1.83 1.35 0.68 0.50 0.30 n.a
Current Liab. to Liab. 0.27 0.23 0.27 0.35 0.39 n.a
Liquidity Ratios
Net Working Capital $345,665 $373,607 $569,799 $719,292 $1,069,838 n.a
Interest Coverage -6.42 3.11 9.11 17.46 29.83 n.a
Additional Ratios
Assets to Sales 0.86 0.49 0.53 0.53 0.60 n.a
Current Debt/Total Assets 18% 13% 11% 12% 9% n.a
Acid Test 2.92 2.81 4.26 4.34 6.20 n.a
Sales/Net Worth 3.29 4.77 3.15 2.82 2.18 n.a
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JTB Technologies, Inc
Dividend Payout 0.00 0.00 1.86 0.31 0.31 n.a
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JTB Technologies, Inc
With our base firmly established here, our loc ation can serve as the master model and training
fac ility for developing other loc ations in the U.S. The logistical problems sometimes
encountered with our products and services could also be improved with regional loc ations,
making our offerings more attrac tive to potential clients.
Page 48
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
Industrial Sales Division 0% $2,100 $3,740 $5,600 $10,255 $12,895 $15,375 $19,375 $22,725 $24,975 $27,545 $29,865 $32,075
Products and Services Div 0% $1,000 $1,915 $6,220 $12,270 $18,500 $26,920 $34,300 $39,320 $45,400 $51,520 $55,520 $61,820
Integrated Technologies Div 0% $0 $0 $0 $0 $0 $600 $600 $1,200 $1,800 $4,444 $5,810 $8,750
Total Sales $3,100 $5,655 $11,820 $22,525 $31,395 $42,895 $54,275 $63,245 $72,175 $83,509 $91,195 $102,645
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
Industrial Sales Division $1,295 $2,314 $3,500 $6,389 $8,023 $9,546 $12,046 $14,121 $15,501 $17,098 $18,525 $19,901
Products and Services Div $490 $1,050 $3,340 $6,066 $9,587 $14,537 $18,654 $21,262 $24,573 $29,723 $32,721 $37,048
Integrated Technologies Div $0 $0 $0 $0 $0 $384 $384 $768 $1,152 $1,577 $1,838 $2,345
Subtotal Direct Cost of Sales $1,785 $3,364 $6,840 $12,455 $17,610 $24,467 $31,084 $36,151 $41,226 $48,398 $53,084 $59,294
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Production Personnel
Shipping and Receiving $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Application Developer $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Part-time App Dev/QA $0 $0 $0 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Web Developer $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Service Team Manager $0 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200
Service Team Member $0 $0 $0 $0 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100
Subtotal $7,800 $11,000 $11,000 $12,200 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300 $13,300
Other Personnel
Name or Title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 6 8 9 10 11 11 11 11 11 13 13 13
Total Payroll $13,900 $18,550 $19,450 $20,650 $21,950 $21,950 $21,950 $22,150 $22,150 $26,200 $26,200 $27,150
Page 2
Appendix
Table: General Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
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 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
Gross Margin ($6,860) ($9,084) ($6,395) ($2,505) $110 $4,753 $9,516 $13,419 $17,274 $21,436 $24,436 $29,676
Gross Margin % -221.29% -160.64% -54.10% -11.12% 0.35% 11.08% 17.53% 21.22% 23.93% 25.67% 26.80% 28.91%
Operating Expenses
Page 4
Appendix
General and Administrative % 407.11% 244.39% 125.98% 66.11% 48.07% 39.84% 28.91% 25.28% 22.16% 19.15% 17.54% 15.58%
Other Expenses:
Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Operating Expenses $15,570 $17,670 $19,641 $19,691 $19,991 $21,991 $20,591 $20,891 $20,891 $24,941 $24,941 $25,891
Profit Before Interest and Taxes ($22,430) ($26,754) ($26,036) ($22,196) ($19,881) ($17,238) ($11,075) ($7,472) ($3,617) ($3,505) ($505) $3,785
EBITDA ($21,539) ($25,863) ($25,145) ($21,305) ($18,990) ($16,347) ($10,184) ($6,581) ($2,726) ($2,614) $386 $4,676
Interest Expense $2,098 $2,087 $2,075 $2,064 $2,053 $2,041 $2,030 $2,018 $2,007 $1,996 $1,984 $1,973
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($24,529) ($28,841) ($28,112) ($24,260) ($21,934) ($19,279) ($13,105) ($9,491) ($5,624) ($5,501) ($2,489) $1,812
Net Profit/Sales -791.24% -510.01% -237.83% -107.70% -69.86% -44.95% -24.15% -15.01% -7.79% -6.59% -2.73% 1.77%
Page 5
Appendix
Table: Cash Flow
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
Net Cash Flow ($16,637) ($27,150) ($26,174) ($22,290) ($29,099) ($27,348) ($27,051) ($22,143) ($15,989) ($15,350) ($14,651) ($8,641)
Cash Balance $479,613 $452,463 $426,290 $404,000 $374,901 $347,553 $320,502 $298,359 $282,370 $267,020 $252,369 $243,728
Page 6
Appendix
Table: Balance Sheet
Current Assets
Cash $496,250 $479,613 $452,463 $426,290 $404,000 $374,901 $347,553 $320,502 $298,359 $282,370 $267,020 $252,369 $243,728
Accounts Receivable $0 $2,325 $5,326 $10,844 $21,031 $31,430 $43,160 $55,720 $66,430 $76,267 $87,893 $97,624 $108,902
Inventory $22,000 $20,215 $16,851 $10,011 $13,701 $19,371 $26,914 $34,192 $39,766 $45,349 $53,238 $58,392 $65,223
Other Current Assets $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000
Total Current Assets $535,250 $519,153 $491,640 $464,145 $455,731 $442,702 $434,626 $427,414 $421,555 $420,986 $425,151 $425,386 $434,854
Long-term Assets
Long-term Assets $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500 $79,500
Accumulated Depreciation $0 $891 $1,783 $2,674 $3,565 $4,457 $5,348 $6,239 $7,131 $8,022 $8,913 $9,805 $10,696
Total Long-term Assets $79,500 $78,609 $77,717 $76,826 $75,935 $75,043 $74,152 $73,261 $72,369 $71,478 $70,587 $69,695 $68,804
Total Assets $614,750 $597,762 $569,358 $540,971 $531,666 $517,745 $508,778 $500,675 $493,924 $492,464 $495,737 $495,081 $503,658
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 $2,500 $11,409 $13,215 $14,309 $30,633 $40,016 $51,697 $58,068 $62,177 $67,709 $77,853 $81,055 $89,189
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 $2,500 $11,409 $13,215 $14,309 $30,633 $40,016 $51,697 $58,068 $62,177 $67,709 $77,853 $81,055 $89,189
Long-term Liabilities $253,150 $251,781 $250,412 $249,043 $247,674 $246,305 $244,936 $243,567 $242,198 $240,829 $239,460 $238,091 $236,722
Total Liabilities $255,650 $263,190 $263,627 $263,352 $278,307 $286,321 $296,633 $301,635 $304,375 $308,538 $317,313 $319,146 $325,911
Paid-in Capital $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000 $455,000
Retained Earnings ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900) ($95,900)
Earnings $0 ($24,529) ($53,370) ($81,481) ($105,742) ($127,675) ($146,955) ($160,060) ($169,551) ($175,175) ($180,676) ($183,165) ($181,353)
Total Capital $359,100 $334,571 $305,730 $277,619 $253,358 $231,425 $212,145 $199,040 $189,549 $183,925 $178,424 $175,935 $177,747
Total Liabilities and Capital $614,750 $597,762 $569,358 $540,971 $531,666 $517,745 $508,778 $500,675 $493,924 $492,464 $495,737 $495,081 $503,658
Net Worth $359,100 $334,571 $305,730 $277,619 $253,358 $231,425 $212,145 $199,040 $189,549 $183,925 $178,424 $175,935 $177,747
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Appendix
Table: Long-term
Long-term
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sales $584,434 $1,008,798 $1,303,319 $1,604,704 $2,020,771 $2,166,942 $2,318,189 $2,411,867 $2,550,497 $2,662,957
Cost of Sales $488,658 $611,854 $743,119 $876,910 $1,078,910 $1,146,672 $1,232,935 $1,283,395 $1,364,157 $1,431,032
Gross Margin $95,776 $396,944 $560,200 $727,794 $941,861 $1,020,270 $1,085,254 $1,128,472 $1,186,340 $1,231,925
Gross Margin % 16.39% 39.35% 42.98% 45.35% 46.61% 47.08% 46.81% 46.79% 46.51% 46.26%
Operating Expenses $252,704 $325,940 $367,040 $386,440 $407,640 $476,693 $478,899 $490,721 $507,339 $517,599
Operating Income ($156,928) $71,004 $193,160 $341,354 $534,221 $543,577 $606,355 $637,751 $679,001 $714,326
Net Income ($181,353) $33,709 $171,958 $225,259 $516,312 $365,827 $408,077 $429,206 $456,968 $480,741
Current Assets $434,854 $438,559 $646,977 $818,769 $1,180,885 $1,348,152 $1,543,406 $1,734,009 $1,949,112 $2,144,024
Long-term Assets $68,804 $58,104 $47,404 $36,704 $26,004 $15,304 $4,604 $0 $0 $0
Current Liabilities $89,189 $64,952 $77,178 $99,477 $111,047 $205,573 $223,916 $229,108 $250,160 $275,017
Long-term Liabilities $236,722 $220,256 $203,790 $187,324 $170,858 $145,230 $119,602 $106,460 $93,744 $81,028
Equity $177,747 $211,455 $413,413 $568,672 $924,984 $1,012,653 $1,204,492 $1,398,441 $1,605,208 $1,787,979
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