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 Table of Contents

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

Chart: Highlights...........................................................................................................................1
1.1 Mission...........................................................................................................................................1
1.2 Objectives....................................................................................................................................1
1.3 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................2
2.2 Start-up Summary....................................................................................................................2
Table: Start-up Funding.............................................................................................................2
Table: Start-up..............................................................................................................................3
Chart: Start-up..............................................................................................................................4
3.0 Services.............................................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................4
Chart: Market Analysis (Pie).....................................................................................................5
Table: Market Analysis................................................................................................................5
4.2 Market Needs..............................................................................................................................5
4.3 Target Market Segment Strategy.......................................................................................5
4.4 Service Business Analysis......................................................................................................6
4.5 Competition and Buying Patterns.......................................................................................6
5.0 Strategy and Implementation Summary.............................................................................6
5.1 Competitive Edge......................................................................................................................6
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast....................................................................................................................7
Chart: Sales Monthly...............................................................................................................7
Table: Sales Forecast..............................................................................................................8
6.0 Management Summary...............................................................................................................9
6.0 Management Summary...............................................................................................................9
Table: Personnel............................................................................................................................9
7.0 Financial Plan..................................................................................................................................9
7.1 Important Assumptions........................................................................................................10
Table: General Assumptions...................................................................................................10
7.2 Break-even Analysis...............................................................................................................11
7.2 Break-even Analysis...............................................................................................................11
Chart: Break-even Analysis....................................................................................................11
Table: Break-even Analysis....................................................................................................11
7.3 Projected Profit and Loss.....................................................................................................12
7.3 Projected Profit and Loss.....................................................................................................12
Table: Profit and Loss................................................................................................................12
7.4 Projected Cash Flow...............................................................................................................13
7.4 Projected Cash Flow...............................................................................................................13
Chart: Cash...................................................................................................................................13
Table: Cash Flow.........................................................................................................................13
7.5 Projected Balance Sheet......................................................................................................15

Page
 Table of Contents

7.5 Projected Balance Sheet......................................................................................................15

Table: Balance Sheet.................................................................................................................15
7.6 Business Ratios........................................................................................................................16
7.6 Business Ratios........................................................................................................................16
Table: Ratios.................................................................................................................................16
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

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 Buy the Time

1.0 Executive Summary

Buy the Time will be a shopping service that allows customers to purchase gifts and necessities
of life at little inconvenience to their schedule and workday. We will do this with the aid of a
shopping consultant to provide each customer with quality solutions to their shopping concerns
at reasonable prices. The owner has had years of experience in the retail market and is aware
of trends and the shopping environment. In time, this service will evolve to incorporate a larger
market instead of a luxury for the more wealthy customers.

Chart: Highlights

Highlights
$90,000

$80,000

$70,000

$60,000
Sales
$50,000
Gross Margin
$40,000
Net Profit
$30,000

$20,000

$10,000

$0
Year 1 Year 2 Year 3

1.1 Mission

The mission of Buy the Time is to offer custom goods for all occasions with minimal
interruptions into our clients' daily activities. We want our customers to be able to give special
gifts to their loved ones without it being a stressful event. We will strive to provide expert
consultants in order to guide the client from start to finish with low-cost, reliable information in
a timely fashion.

1.2 Objectives

The objectives for the company are outlined below:

 Obtain and service clients with a knowledgeable sales team offering purchases of goods
based on desires and needs.
 For a low charge, allow people to obtain custom items with minimal interruption into their
day and life.
 Grow into a large franchise with a reputation for getting the desired item at a reasonable
cost.
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1.3 Keys to Success

In order to ensure a healthy profit and low customer turnover, Buy the Time will have to:

 Provide a significantly easier, more convenient, and customized shopping experience

than can be found in high-end stores.
 Ensure 100% customer satisfaction.
 Establish close ties with the clients to ensure repeat business, encourage customer feedback
to enhance further customized service, and promote word-of-mouth marketing.

2.0 Company Summary

Buy the Time is a shopping service which allows the client to purchase custom items without
stress. With our expert staff, we intend to grow into a larger market where we can still be
personable, yet offer greater choices.

Our ideal larger market will expand from the Seattle area to include New York, San Francisco,
Los Angeles, Chicago, and Miami.

2.1 Company Ownership

Buy the Time will be a Seattle, WA-based company. It will be formed as a simple sole
proprietorship. The company will operate as a home business until such time as expansion is
required.

Jade Kousky is the owner and sole proprietor. With many years of retail experience, she brings
a unique knowledge of discovering solutions to personal needs at low cost. Many have known
her to have a personal flare for anticipating trends and an ability to match purchases to a
client's desires.

With growth, Ms. Kousky plans to convert the sole proprietorship into a corporation, still
maintaining major control. Each location manager will operate as a key figure in the growth and
evolution of Buy the Time.

2.2 Start-up Summary

Originally, operation will be based out of the owner's residence. One-to-one service can be
provided by meeting the client at a time and place most convenient for them. This will cut
unnecessary costs while still providing superb service.

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $1,250
Start-up Assets to Fund $3,650
Total Funding Required $4,900

Assets
Non-cash Assets from Start-up $2,400
Cash Requirements from Start-up $1,250
Additional Cash Raised $0
Cash Balance on Starting Date $1,250
Total Assets $3,650

Liabilities and Capital

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

Capital

Planned Investment
Owner $3,250
Private Investor $1,650
Other $0
Additional Investment Requirement $0
Total Planned Investment $4,900

Loss at Start-up (Start-up Expenses) ($1,250)

Total Capital $3,650

Total Capital and Liabilities $3,650

Total Funding $4,900

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Table: Start-up
Start-up

Requirements

Start-up Expenses
Legal $300
Stationery etc. $150
Brochures $200
Consultants $0
Insurance $0
Rent $0
Research and development $100
Expensed equipment $500
Other $0
Total Start-up Expenses $1,250

Start-up Assets
Cash Required $1,250
Other Current Assets $400
Long-term Assets $2,000
Total Assets $3,650

Total Requirements $4,900

Chart: Start-up

Start-up

$5,000

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0
Expenses Assets Investment Loans

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3.0 Services

Buy the Time will offer an expert consultant for all occasions. This consultant will specialize in
personal gifts and ideas for people who desire the latest fashions and/or gift solutions
for individuals who are hard to shop for. This service will provide insight, research, purchases,
and delivery in custom packaging. The focus of the company is the needs of the client. It is the
job of the consultant to translate those needs into low-cost solutions.

4.0 Market Analysis Summary

Buy the Time will target the middle-aged, busy executive. These individuals often have
extremely busy schedules, including a great deal of travel time. In addition, they possess a
large proportion of disposable income that allows them to afford custom services. This service
will allow them more concentration on work, while allowing them to obtain great products for
personal and business life.

4.1 Market Segmentation

The target market for Buy the Time is broken into three segments:

1. Busy executives desiring to keep pace with the trends, yet not having the time to facilitate
their needs.
2. Younger business persons who choose to have the luxury and convenience of a personalized
shopping service.
3. Those needing consultation in gifts and/or not wanting the pressures that are associated
with finding custom gifts for special occasions.

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Executives

Business Persons

Other

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Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Executives 52% 500 900 1,300 4,000 6,400 89.15%
Business Persons 32% 260 500 800 2,010 3,900 96.80%
Other 15% 60 240 400 1,000 1,840 135.32%
Total 96.16% 820 1,640 2,500 7,010 12,140 96.16%

4.2 Market Needs

Buy the Time's primary market, the executive or high-end professional individual, has certain
needs that are outlined below.

 They often find that their image is very important, both professionally and personally. They
need advice or information on what the latest trends and fashions are.
 They keep busy schedules that often involve a lot of travel. This leaves little time for
shopping that is time consuming, such as gift buying.
 They have a desire to be pampered and willingly spend money as a symbol of status.

4.3 Target Market Segment Strategy

The best way to develop the company is to make our service necessary and accessible to the
public. By facilitating their needs easily, we offer a great service at little inconvenience to them
in a time where convenience matters the most.

In its broadest definition, the American shopping market consists of every American who needs
to buy goods and services for themselves and their families. Although it is the aim of Buy the
Time to eventually reach out to a wide range of shoppers, including middle income families,
busy professionals, and people looking for "hard to find" items, the company will focus first on
the busy executive-type shopper.

4.4 Service Business Analysis

Buy the Time offers the service of shopping advice/expertise in trends, fashions, and emerging
products, along with the purchasing and delivery of such items to the customer's residence. It
is assumed that most of the items purchased will be in single or small quantities. The primary
attraction of such a service is that it significantly cuts down on shopping time for busy
customers who wish to utilize their time for other purposes. With the advent of computers and
the Internet, it is believed that this service can be offered at a low cost, and can be enhanced
through the use of an established-customer database to track individual preferences.

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4.5 Competition and Buying Patterns

This is a luxury service. An affordable cost will be needed to maintain clients and keep their
needs constant. This requires being aware of economic changes, as well as alterations in
trends.

At the moment, there are few services like this in the Seattle area. Therefore, there is a
tremendous opportunity to build and retain significant market share. Customers choose and
retain services like this often through word-of-mouth, when the company is able to achieve a
high level of customer satisfaction. Although it is the aim of Buy the Time to significantly lower
costs of this luxury service, at this time, cost does not play a significant factor in how
customers choose a shopping service. The bottom line is establishing a strong intimate
relationship with customers to capture the long-term profits through repeat business and create
the enthusiasm among customers that will spur on word-of-mouth marketing.

5.0 Strategy and Implementation Summary

Buy the Time will concentrate on expanding in metropolitan areas that have significant

growth of young business persons and executives. Starting in Seattle, it will grow down the
west coast to San Francisco and Los Angeles. From there we will target the east coast with
locations in New York City, Miami, and Chicago.

The target customer is a busy business person unable to find time for purchasing custom
goods. We will provide this tailored service to work around their schedules, while maintaining a
low cost.

5.1 Competitive Edge

Our competitive edge lies in our expert service at a reasonable price. We will transform this
service from a luxury into a demand service. We will provide a database for remembering
occasions and dates, this will allow the client to remain stress-free. Buy the Time was created
by an expert shopper who knows trends, prices, and details, such as fabrics and colors.

We are aware that there will be others trying to offer such a service, but only we will be able to
provide such services at a low cost, with friendly consultants, and an ability to find exactly what
our clients desire.

5.2 Sales Strategy

Our sales will be generated from repeat clients. This service will be established as an easy and
friendly way to shop without the hassle. We will offer low introductory costs for our services. To
ensure that all purchases will be worthwhile for the consultant, all of our orders will have a
minimal amount required to cover any expenses incurred. This will be minimal, allowing for our
services to be affordable.

Ms. Kousky has enough contacts in the Seattle area who have expressed interest in the service
that no advertising will be needed for the first year of operation. Subsequent advertising (which
may not start until year four or five) will depend on word-of-mouth, a website, telephone
directory ads, local newspaper ads and articles, and brochures.

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11 12
10 Month
5.2.1 Sales Forecast

9 Month
The following chart and table document forecasted sales.

8 Month
7 Month
In both April and May we expect a two percent growth each month. From June to September,

6 Month
each month should reflect a growth of five percent, since many activities occur during the
summer months. October will show approximately four percent, since this is usually a time of

5 Month
transitions. November and December will show an increase to seven percent, with many people
buying for the holidays. January through April will be an increase of one percent each month,

4 Month
since this is a slow retail period.

3 Month
This will result in a growth of 68% after the first year. From that, sales in 2002 will see a

2 Month
growth of 57% as we develop our team of consultants. By 2003, sales will show a 78% growth.

1 Month
By the end of the third year, we will be able to move into markets outside the Seattle area.

MonthMonth
Chart: Sales Monthly

Sales Monthly
$3,200

$2,800

$2,400

$2,000
Jade Kousky - Owner
$1,600
Retail Consultant 1
$1,200

$800

$400

$0

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Jade Kousky - Owner $32,365 $41,000 $50,000
Retail Consultant 1 $0 $25,000 $33,000
Total Sales $32,365 $66,000 $83,000

Direct Cost of Sales Year 1 Year 2 Year 3

Jade Kousky - Owner $11,250 $18,750 $22,500
Retail Consultant 1 $0 $9,000 $15,000
Subtotal Direct Cost of Sales $11,250 $27,750 $37,500

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6.0 Management Summary

As Buy the Time grows, we will add consultants so that we may continue to offer personalized
service in a timely fashion. Originally, it will start with the owner as the sole employee. By the
end of the first year, another consultant will be added. From that point we will add a
consultant when we choose to grow into different markets. We will shape our team depending
on sales and growth.

Marketing and public relations will be handled mainly by the owner. If there is a greater need, a
marketing consultant will be used.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Owner $15,000 $30,000 $37,000
Other $0 $0 $0
Total People 0 0 0

Total Payroll $15,000 $30,000 $37,000

7.0 Financial Plan

Growth will occur according to the number of clients and cash flow.

With approximately half of our services provided on credit, collection will be essential. With this
still being a service that is not essential to everyday living, we will show that payments are
necessary immediately. With a concrete system for cash flow, we will be able to keep debt to a
minimum, while still providing a high level of sales.

7.1 Important Assumptions

The following assumptions are made responding to growth, and are based on economic trends
from the preceding two years.

 A strong economy is expected to continue in the future.

 Many people have annual dates on which purchases are made.
 It is assumed that people are willing to pay for a service if it is an agreeable and convenient
experience.

The table below outlines some business assumptions that are the basis for Buy The Time's
growth, including tax rate and payment days.

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Table: General Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

Our break-even analysis is shown in further detail in the following chart and table.

This is a conservative figure since contacts have been made, and have already generated many
orders for our services. Buy the Time's goal is to generate twice as much as the break-even
point for a monthly standard.

Chart: Break-even Analysis

Break-even Analysis
$900

$600

$300

$0

($300)

($600)

($900)

($1,200)
$0 $600 $1,200 $1,800 $2,400 $3,000
$300 $900 $1,500 $2,100 $2,700 $3,300

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $1,916

Assumptions:
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost $1,250

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7.3 Projected Profit and Loss

Buy the Time's projected profit and loss is indicated in the following table. Gross margin should
remain between 50-70% the first year, with highest profits due near the end of the year. This
should prove to be accurate, since that is a time when many clients increase their spending.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $32,365 $66,000 $83,000
Direct Cost of Sales $11,250 $27,750 $37,500
Other $0 $0 $0
Total Cost of Sales $11,250 $27,750 $37,500

Gross Margin $21,115 $38,250 $45,500

Gross Margin % 65.24% 57.95% 54.82%

Expenses
Payroll $15,000 $30,000 $37,000
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $0 $0 $0
Rent $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0

Total Operating Expenses $15,000 $30,000 $37,000

Profit Before Interest and Taxes $6,115 $8,250 $8,500

EBITDA $6,115 $8,250 $8,500
Interest Expense $0 $0 $0
Taxes Incurred $1,528 $2,063 $2,160

Net Profit $4,587 $6,188 $6,340

Net Profit/Sales 14.17% 9.38% 7.64%

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7.4 Projected Cash Flow

The following chart and table outline the cash flow for fiscal years 2002, 2003, and 2004. For a
monthly analysis, please see the attached appendix.

Chart: Cash

Cash
$4,000

$3,500

$3,000

$2,500

$2,000 Net Cash Flow

$1,500
Cash Balance
$1,000

$500

$0

($500)

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

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Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $17,801 $36,300 $45,650
Cash from Receivables $11,759 $26,785 $35,877
Subtotal Cash from Operations $29,560 $63,085 $81,527

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $29,560 $63,085 $81,527

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $15,000 $30,000 $37,000
Bill Payments $11,630 $28,509 $38,851
Subtotal Spent on Operations $26,630 $58,509 $75,851

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $26,630 $58,509 $75,851

Net Cash Flow $2,929 $4,575 $5,676

Cash Balance $4,179 $8,755 $14,430

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7.5 Projected Balance Sheet

The Balance Sheet table for fiscal years 2002, 2003, and 2004 follows. For a monthly analysis,
please see the attached appendix.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $4,179 $8,755 $14,430
Accounts Receivable $2,805 $5,721 $7,194
Other Current Assets $400 $400 $400
Total Current Assets $7,385 $14,875 $22,024

Long-term Assets
Long-term Assets $2,000 $2,000 $2,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000
Total Assets $9,385 $16,875 $24,024

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $1,147 $2,450 $3,260
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $1,147 $2,450 $3,260

Long-term Liabilities $0 $0 $0
Total Liabilities $1,147 $2,450 $3,260

Paid-in Capital $4,900 $4,900 $4,900

Retained Earnings ($1,250) $3,337 $9,525
Earnings $4,587 $6,188 $6,340
Total Capital $8,237 $14,425 $20,764
Total Liabilities and Capital $9,385 $16,875 $24,024

Net Worth $8,237 $14,425 $20,764

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7.6 Business Ratios

The following table provides significant ratios for the personal services industry. The final
column, Industry Profile, shows ratios for this industry as it is determined by the Standard
Industrial Classification (SIC) Index 7299, "miscellaneous personal services."

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 103.92% 25.76% -8.50%

Percent of Total Assets

Accounts Receivable 29.89% 33.90% 29.95% 6.70%
Other Current Assets 4.26% 2.37% 1.66% 26.40%
Total Current Assets 78.69% 88.15% 91.68% 43.50%
Long-term Assets 21.31% 11.85% 8.32% 56.50%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 12.23% 14.52% 13.57% 19.50%

Long-term Liabilities 0.00% 0.00% 0.00% 21.40%
Total Liabilities 12.23% 14.52% 13.57% 40.90%
Net Worth 87.77% 85.48% 86.43% 59.10%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 65.24% 57.95% 54.82% 50.80%
Selling, General & Administrative Expenses 51.07% 54.26% 47.14% 34.40%
Advertising Expenses 0.00% 0.00% 0.00% 0.20%
Profit Before Interest and Taxes 18.89% 12.50% 10.24% 1.50%

Main Ratios
Current 6.44 6.07 6.76 2.09
Quick 6.44 6.07 6.76 1.03
Total Debt to Total Assets 12.23% 14.52% 13.57% 40.90%
Pre-tax Return on Net Worth 74.24% 57.19% 40.94% 1.10%
Pre-tax Return on Assets 65.16% 48.89% 35.38% 1.90%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 14.17% 9.38% 7.64% n.a
Return on Equity 55.69% 42.90% 30.53% n.a

Activity Ratios
Accounts Receivable Turnover 5.19 5.19 5.19 n.a
Collection Days 57 52 63 n.a
Accounts Payable Turnover 11.14 12.17 12.17 n.a
Payment Days 27 22 26 n.a
Total Asset Turnover 3.45 3.91 3.45 n.a

Debt Ratios
Debt to Net Worth 0.14 0.17 0.16 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $6,237 $12,425 $18,764 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.29 0.26 0.29 n.a
Current Debt/Total Assets 12% 15% 14% n.a
Acid Test 3.99 3.74 4.55 n.a

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Sales/Net Worth 3.93 4.58 4.00 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Page 16
 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
Jade Kousky - Owner 0% $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Retail Consultant 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185

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
Jade Kousky - Owner $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Retail Consultant 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938

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
Owner 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

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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 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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Table: Profit and Loss

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938

Gross Margin $1,231 $1,244 $1,353 $1,467 $1,587 $1,713 $1,766 $1,954 $2,155 $2,186 $2,217 $2,248
Gross Margin % 56.76% 57.02% 59.06% 61.00% 62.86% 64.62% 65.32% 67.57% 69.68% 69.98% 70.28% 70.57%

Expenses
Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Sales and Marketing and Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

Profit Before Interest and Taxes ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
EBITDA ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($6) ($2) $26 $54 $84 $116 $129 $176 $226 $234 $242 $249

Net Profit ($14) ($5) $77 $162 $252 $347 $387 $528 $678 $702 $725 $748
Net Profit/Sales -0.63% -0.22% 3.36% 6.75% 10.00% 13.09% 14.30% 18.25% 21.94% 22.47% 22.98% 23.49%

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Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations

Cash Sales $1,192 $1,200 $1,260 $1,322 $1,388 $1,458 $1,487 $1,590 $1,701 $1,718 $1,735 $1,752
Cash from Receivables $0 $33 $976 $983 $1,032 $1,084 $1,138 $1,193 $1,219 $1,304 $1,392 $1,406
Subtotal Cash from Operations $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158

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 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158

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 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Bill Payments $31 $932 $937 $964 $993 $1,023 $1,054 $1,068 $1,115 $1,164 $1,172 $1,179
Subtotal Spent on Operations $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429

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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429

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Net Cash Flow ($89) ($950) $49 $91 $178 $268 $321 $465 $555 $608 $705 $728
Cash Balance $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179

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Table: Balance Sheet

Pro Forma Balance Sheet

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

Current Assets
Cash $1,250 $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179
Accounts Receivable $0 $976 $1,925 $1,979 $2,078 $2,182 $2,290 $2,369 $2,477 $2,649 $2,750 $2,778 $2,805
Other Current Assets $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Total Current Assets $1,650 $2,537 $2,536 $2,639 $2,829 $3,111 $3,488 $3,887 $4,460 $5,187 $5,897 $6,629 $7,385

Long-term Assets
Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total Assets $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385

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 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
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 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147

Paid-in Capital $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900
Retained Earnings ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250)
Earnings $0 ($14) ($19) $58 $221 $473 $820 $1,207 $1,734 $2,413 $3,114 $3,839 $4,587
Total Capital $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237
Total Liabilities and Capital $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385

Net Worth $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237

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