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

Chart: Highlights...........................................................................................................................1
1.1 Mission...........................................................................................................................................1
1.2 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................2
2.2 Start-up Summary....................................................................................................................2
Table: Start-up..............................................................................................................................2
Table: Start-up Funding.............................................................................................................3
Chart: Start-up..............................................................................................................................4
2.3 Company Locations and Facilities.......................................................................................4
3.0 Products and Services.................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation..............................................................................................................5
Table: Market Analysis................................................................................................................5
Chart: Market Analysis (Pie).....................................................................................................6
5.0 Strategy and Implementation Summary.............................................................................6
5.1 Competitive Edge......................................................................................................................6
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast....................................................................................................................7
Table: Sales Forecast..............................................................................................................7
Chart: Sales Monthly...............................................................................................................7
Chart: Sales by Year................................................................................................................8
6.0 Management Summary...............................................................................................................8
6.1 Personnel Plan............................................................................................................................8
Table: Personnel............................................................................................................................8
7.0 Financial Plan..................................................................................................................................9
7.0 Financial Plan..................................................................................................................................9
7.1 Break-even Analysis.................................................................................................................9
Table: Break-even Analysis......................................................................................................9
Chart: Break-even Analysis......................................................................................................9
7.2 Projected Profit and Loss.....................................................................................................10
Chart: Profit Monthly.................................................................................................................10
Chart: Profit Yearly.....................................................................................................................10
Table: Profit and Loss................................................................................................................11
7.3 Projected Cash Flow...............................................................................................................12
Table: Cash Flow.........................................................................................................................12
Chart: Cash...................................................................................................................................13
7.4 Projected Balance Sheet......................................................................................................14
Table: Balance Sheet.................................................................................................................14
7.5 Business Ratios........................................................................................................................14
Table: Ratios.................................................................................................................................15
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Page
Table of Contents
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...........................................................................................................................6
Table: Balance Sheet...........................................................................................................................6
Page
Southwest Veterinary Clinic
1.0 Executive Summary
The Southwest Veterinary Clinic will be located in southwest Richmond. The clinic will offer a full
range of medical services to the area's pet owners. Southwest Richmond is a mixture of
industrial and residential property. There are approximately 20,000 moderate-income residents
in the area. Many of these residents are elderly with multiple pets.
Currently, the three closest veterinary clinics are a fifteen minute drive for most southwest
Richmond residents. Southwest Veterinary Clinic will be a five minute drive from most locations
in southwest Richmond.
Edward Anderson, DVM, and Michelle Johnson, DVD, have seven years of veterinary experience.
Edward has four years of experience with the Richmond Emergency Veterinary Hospital.
Michelle has been a staff veterinarian at Blue Cross Hospital for three years.
Both Richmond Emergency and Blue Cross Hospitals serve residents in southwest Richmond.
Edward and Michelle have treated numerous pets from the southwest section of town over the
years. Most of these customers praised the service they received. Thirty customers have
already confirmed that they will be using the new hospital services.
Chart: Highlights
Highlights
$500,000
$450,000
$400,000
$350,000
Sales
$300,000
$250,000 Gross Margin
$200,000 Net Profit
$150,000
$100,000
$50,000
$0
Year 1 Year 2 Year 3
1.1 Mission
Our goal is to help customers' pets live long, happy and healthy lives. We believe that a key
element to a healthy pet is a great relationship with your veterinarian. Everyone at Southwest
Veterinary Clinic is committed to professional, caring, personalized service. Southwest
Veterinary Clinic takes pride in our dedication to the highest standards in veterinary medicine.
We have a full service clinic offering state-of-the-art veterinary medical technology.
Page 1
1.2 Keys to Success
 We treat our patients as if they were our own pets and try to offer customers the service
that they desire and deserve.
 We take an individualized approach to the long-term care of each of our patients and are
dedicated to providing our clients with enough information to make appropriate decisions
concerning the health care of their animal companions.
2.0 Company Summary
The Southwest Veterinary Clinic will be located in southwest Richmond. The clinic will offer its
customers the full range of medical services to the area's pet owners.
2.1 Company Ownership
Edward Anderson, DVM, and Michelle Johnson, DVD, are co-owners of Southwest Veterinary
Clinic.
2.2 Start-up Summary
Southwest Veterinary Clinic's start-up costs consist of medical, surgical, and lab equipment. In
addition, there will a $30,000 interior remodeling cost for the clinic. Edward Anderson and
Michelle Johnson will invest $80,000. In addition, they will secure a $70,000 SBA loan.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $1,000
Medical/Surgical Equipment $40,000
Lab Equipment $30,000
Insurance $2,000
Rent $3,000
Clerical/Bookkeeping Setup $2,000
Kennel Equipment $5,000
Waiting Room/Examination Rooms Setup $10,000
Total Start-up Expenses $95,000
Start-up Assets
Cash Required $25,000
Other Current Assets $0
Long-term Assets $110,000
Total Assets $135,000
Total Requirements $230,000
Page 2
Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $95,000
Start-up Assets to Fund $135,000
Total Funding Required $230,000
Assets
Non-cash Assets from Start-up $110,000
Cash Requirements from Start-up $25,000
Additional Cash Raised $0
Cash Balance on Starting Date $25,000
Total Assets $135,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $150,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $150,000
Capital
Planned Investment
Michelle Johnson $40,000
Edward Anderson $40,000
Additional Investment Requirement $0
Total Planned Investment $80,000
Loss at Start-up (Start-up Expenses) ($95,000)

Total Capital ($15,000)
Total Capital and Liabilities $135,000
Total Funding $230,000
Page 3
Chart: Start-up
Start-up
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses Assets Investment Loans
2.3 Company Locations and Facilities
Southwest Veterinary Clinic will be located on the corner of 7th and Stewart, two of the busiest
streets in southwest Richmond.
3.0 Products and Services
Southwest Veterinary Clinic will offer the following services:
 Internal medicine and surgery;

 Orthopedics;
 Dental care;
 Skin disorders;
 Geriatric care;
 Endoscopy;
 Reproductive services.
Page 4
4.0 Market Analysis Summary
Southwest Richmond is a section of the city that, in recent years, has become primarily
industrial. There are approximately 20,000 residents in the area who are currently underserved
in a number of basic services. The area's residents can be put into three groups:
 Elderly;
 Moderate-income families;
 Young single adults.
All three groups own pets but find it difficult to find local veterinary resources when needed.
Southwest Veterinary Clinic will fill the community's need for reasonably priced local veterinary
services.
4.1 Market Segmentation
Southwest Veterinary Clinic will focus on three significant customer groups:
 Elderly: This group is the first tier of customers that are pivotal to the success of the clinic.
They are the most proactive to the health of their pets and demand a strong relationship
with their pet's veterinarian. In return, they will become loyal customers who will refer both
friends and neighbors.
 Moderate-income Families: The second tier of critical customers are the area's families.
This group is important for the sustained growth of the clinic. A veterinary service
relationship with a family can last 10-20 years over which time the family can own
numerous pets.
 Young, Single Adults: This group represents the third tier of customers that the clinic will
focus on. This group is primarily reactive to the health of their pets and will usually only visit
the clinic for emergencies, reproduction services, and shots. This is still a significant source
of customers from the community.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Elderly 5% 6,000 6,300 6,615 6,946 7,293 5.00%
Moderate-income Families 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Young Adults 10% 4,000 4,400 4,840 5,324 5,856 10.00%
Total 8.57% 20,000 21,700 23,555 25,580 27,790 8.57%
Page 5
Chart: Market Analysis (Pie)
Market Analysis (Pie)
Elderly
Moderate-income Families
Young Adults
5.0 Strategy and Implementation Summary
The key to the clinic's success is its visibility in the community. The location is crucial.
Southwest Veterinary Clinic will be located on the corner of 7th and Stewart, two of the busiest
streets in southwest Richmond. The clinic will be visible in the community. The name
"Southwest" will communicate that the clinic is local to residents who are scanning the phone
book for veterinary services.
Edward Anderson and Michelle Johnson will meet with both the three Southwest Seniors
Organizations and the five Southwest Neighborhood Associations to introduce the veterinary
hospital to the community. At these meetings, Edward and Michelle, will distribute invitations to
the clinic's grand opening.
In addition, Southwest Veterinary Clinic will reward customers who refer friends and neighbors
to the clinic with 15% off their pet's next visit.
5.1 Competitive Edge
The competitive edge of Southwest Veterinary Clinic is:
 Location: Southwest Veterinary Clinic is located on the corner of 7th and Steward. The
traffic on those two streets is very strong. The closest veterinary clinic to the Southwest
area is a fifteen minute drive.
 Southwest Area Focus: Currently there are no southwest-focused veterinary clinics in the
area. Southwest Veterinary Clinic will the only one in the area.
Page 6
5.2 Sales Strategy
The Southwest Veterinary Clinic's sales strategy will be to grow the clinic through referrals.
These referrals from satisfied customers will be the most important component to the success
of Southwest Veterinary Clinic. To promote referrals from existing customers, Southwest
Veterinary Clinic will offer 15% off the next visit for referrals.
5.2.1 Sales Forecast
The following is the sales forecast for three years.
Table: Sales Forecast
Sales Forecast
Sales
Services $417,000 $450,000 $490,000
Other $0 $0 $0
Total Sales $417,000 $450,000 $490,000
Direct Cost of Sales Year 1 Year 2 Year 3

Services $98,700 $110,000 $120,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $98,700 $110,000 $120,000
Chart: Sales Monthly
Sales Monthly
$50,000
$45,000
$40,000
$35,000
$30,000 Services
$25,000 Other
$20,000
$15,000
$10,000
$5,000
$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Page 7
Chart: Sales by Year
Sales by Year
$500,000
$450,000
$400,000
$350,000
Services
$300,000
$250,000 Other
$200,000
$150,000
$100,000
$50,000
$0
6.0 Management Summary
Edward Anderson and Michelle Johnson will co-manage the clinics daily operation.
6.1 Personnel Plan
The Southwest Veterinary Clinic will have a staff of three.
 Receptionist;
 Veterinary assistants (2).
Table: Personnel
Personnel Plan
Edward Anderson $45,600 $50,000 $55,000
Michelle Johnson $45,600 $50,000 $55,000
Receptionist/Clerical $24,000 $30,000 $33,000
Veterinary Assistants (2) $52,800 $53,000 $55,000
Total People 5 5 5
Total Payroll $168,000 $183,000 $198,000
Page 8
7.0 Financial Plan
The following is the financial plan for Southwest Veterinary Clinic.
7.1 Break-even Analysis
The monthly break-even point is $30,000.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $28,351
Assumptions:
Average Percent Variable Cost 24%
Estimated Monthly Fixed Cost $21,641
Chart: Break-even Analysis
Break-even Analysis
$20,000
$16,000
$12,000
$8,000
$4,000
$0
($4,000)
($8,000)
($12,000)
($16,000)
($20,000)
$0 $10,000 $20,000 $30,000 $40,000 $50,000

$5,000 $15,000 $25,000 $35,000 $45,000 $55,000
Page 9
7.2 Projected Profit and Loss
The following is the projected profit and loss for three years.
Chart: Profit Monthly
Profit Monthly
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
($8,000)
Chart: Profit Yearly
Profit Yearly
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Page 10
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $417,000 $450,000 $490,000
Direct Cost of Sales $98,700 $110,000 $120,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $98,700 $110,000 $120,000
Gross Margin $318,300 $340,000 $370,000

Gross Margin % 76.33% 75.56% 75.51%
Expenses
Payroll $168,000 $183,000 $198,000
Sales and Marketing and Other Expenses $6,000 $6,000 $6,000
Depreciation $11,424 $11,424 $11,424
Leased Equipment $0 $0 $0
Utilities $3,600 $3,600 $3,600
Insurance $7,200 $7,200 $7,200
Rent $36,000 $36,000 $36,000
Payroll Taxes $27,465 $30,300 $32,400
Other $0 $0 $0
Total Operating Expenses $259,689 $277,524 $294,624
Profit Before Interest and Taxes $58,611 $62,476 $75,376

EBITDA $70,035 $73,900 $86,800
Interest Expense $14,242 $12,901 $11,502
Taxes Incurred $13,311 $14,872 $19,162
Net Profit $31,058 $34,702 $44,712

Net Profit/Sales 7.45% 7.71% 9.12%
Page 11
7.3 Projected Cash Flow

The following is the projected cash flow for three years.
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $417,000 $450,000 $490,000
Subtotal Cash from Operations $417,000 $450,000 $490,000
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $417,000 $450,000 $490,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $168,000 $183,000 $198,000
Bill Payments $181,390 $227,847 $234,632
Subtotal Spent on Operations $349,390 $410,847 $432,632
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 $13,992 $13,992 $13,992
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $363,382 $424,839 $446,624
Net Cash Flow $53,618 $25,161 $43,376

Cash Balance $78,618 $103,779 $147,154
Page 12
Chart: Cash
Cash
$80,000
$70,000
$60,000
$50,000
Net Cash Flow
$40,000
Cash Balance
$30,000
$20,000
$10,000
$0

Page 13
7.4 Projected Balance Sheet
The following is the projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $78,618 $103,779 $147,154
Other Current Assets $0 $0 $0
Total Current Assets $78,618 $103,779 $147,154
Long-term Assets
Long-term Assets $110,000 $110,000 $110,000
Accumulated Depreciation $11,424 $22,848 $34,272
Total Long-term Assets $98,576 $87,152 $75,728
Total Assets $177,194 $190,931 $222,882
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $25,128 $18,154 $19,386
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $25,128 $18,154 $19,386
Long-term Liabilities $136,008 $122,016 $108,024

Total Liabilities $161,136 $140,170 $127,410
Paid-in Capital $80,000 $80,000 $80,000

Retained Earnings ($95,000) ($63,942) ($29,239)
Earnings $31,058 $34,702 $44,712
Total Capital $16,058 $50,761 $95,472
Total Liabilities and Capital $177,194 $190,931 $222,882
Net Worth $16,058 $50,761 $95,472
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 0742, Veterinary Services, are shown for
comparison.
Page 14
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 7.91% 8.89% -2.90%
Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 32.60%
Total Current Assets 44.37% 54.35% 66.02% 59.90%
Long-term Assets 55.63% 45.65% 33.98% 40.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 14.18% 9.51% 8.70% 31.10%

Long-term Liabilities 76.76% 63.91% 48.47% 21.50%
Total Liabilities 90.94% 73.41% 57.16% 52.60%
Net Worth 9.06% 26.59% 42.84% 47.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.33% 75.56% 75.51% 40.00%
Selling, General & Administrative Expenses 71.42% 70.80% 68.96% 23.70%
Advertising Expenses 1.44% 1.33% 1.22% 0.50%
Profit Before Interest and Taxes 14.06% 13.88% 15.38% 3.60%
Main Ratios
Current 3.13 5.72 7.59 1.95
Quick 3.13 5.72 7.59 1.26
Total Debt to Total Assets 90.94% 73.41% 57.16% 52.60%
Pre-tax Return on Net Worth 276.30% 97.66% 66.90% 5.50%
Pre-tax Return on Assets 25.04% 25.96% 28.66% 11.60%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 7.45% 7.71% 9.12% n.a
Return on Equity 193.41% 68.36% 46.83% n.a
Activity Ratios
Accounts Payable Turnover 8.22 12.17 12.17 n.a
Payment Days 27 36 29 n.a
Total Asset Turnover 2.35 2.36 2.20 n.a
Debt Ratios
Debt to Net Worth 10.03 2.76 1.33 n.a
Current Liab. to Liab. 0.16 0.13 0.15 n.a
Liquidity Ratios
Net Working Capital $53,490 $85,625 $127,768 n.a
Interest Coverage 4.12 4.84 6.55 n.a
Additional Ratios
Assets to Sales 0.42 0.42 0.45 n.a
Current Debt/Total Assets 14% 10% 9% n.a
Acid Test 3.13 5.72 7.59 n.a
Sales/Net Worth 25.97 8.87 5.13 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 15
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
Services 0% $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Services $4,000 $5,000 $5,300 $6,000 $7,000 $8,000 $8,400 $9,000 $10,000 $11,000 $12,000 $13,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $4,000 $5,000 $5,300 $6,000 $7,000 $8,000 $8,400 $9,000 $10,000 $11,000 $12,000 $13,000
Page 1
Appendix
Table: Personnel
Personnel Plan
Edward Anderson 0% $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800
Michelle Johnson 0% $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800
Receptionist/Clerical 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Veterinary Assistants (2) 0% $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400
Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
Direct Cost of Sales $4,000 $5,000 $5,300 $6,000 $7,000 $8,000 $8,400 $9,000 $10,000 $11,000 $12,000 $13,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $4,000 $5,000 $5,300 $6,000 $7,000 $8,000 $8,400 $9,000 $10,000 $11,000 $12,000 $13,000
Gross Margin $11,000 $15,000 $17,700 $20,000 $23,000 $26,000 $27,600 $31,000 $34,000 $35,000 $38,000 $40,000
Gross Margin % 73.33% 75.00% 76.96% 76.92% 76.67% 76.47% 76.67% 77.50% 77.27% 76.09% 76.00% 75.47%
Expenses
Payroll $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
Sales and Marketing and Other $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Expenses
Depreciation $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $2,220 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295 $2,295
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $21,572 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647 $21,647
Profit Before Interest and Taxes ($10,572) ($6,647) ($3,947) ($1,647) $1,353 $4,353 $5,953 $9,353 $12,353 $13,353 $16,353 $18,353
EBITDA ($9,620) ($5,695) ($2,995) ($695) $2,305 $5,305 $6,905 $10,305 $13,305 $14,305 $17,305 $19,305
Interest Expense $1,240 $1,231 $1,221 $1,211 $1,201 $1,192 $1,182 $1,172 $1,163 $1,153 $1,143 $1,133
Taxes Incurred ($3,544) ($2,363) ($1,550) ($857) $45 $948 $1,431 $2,454 $3,357 $3,660 $4,563 $5,166
Net Profit ($8,269) ($5,514) ($3,617) ($2,001) $106 $2,213 $3,340 $5,727 $7,833 $8,540 $10,647 $12,054
Net Profit/Sales -55.12% -27.57% -15.73% -7.69% 0.35% 6.51% 9.28% 14.32% 17.80% 18.57% 21.29% 22.74%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
Subtotal Cash from Operations $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
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 $15,000 $20,000 $23,000 $26,000 $30,000 $34,000 $36,000 $40,000 $44,000 $46,000 $50,000 $53,000
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 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000
Bill Payments $277 $8,391 $10,599 $11,712 $13,112 $15,005 $16,864 $17,762 $19,385 $21,258 $22,571 $24,454
Subtotal Spent on Operations $14,277 $22,391 $24,599 $25,712 $27,112 $29,005 $30,864 $31,762 $33,385 $35,258 $36,571 $38,454
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 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166
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 $15,443 $23,557 $25,765 $26,878 $28,278 $30,171 $32,030 $32,928 $34,551 $36,424 $37,737 $39,620
Net Cash Flow ($443) ($3,557) ($2,765) ($878) $1,722 $3,829 $3,970 $7,072 $9,449 $9,576 $12,263 $13,380
Cash Balance $24,557 $20,999 $18,234 $17,357 $19,079 $22,908 $26,878 $33,950 $43,399 $52,975 $65,238 $78,618
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $25,000 $24,557 $20,999 $18,234 $17,357 $19,079 $22,908 $26,878 $33,950 $43,399 $52,975 $65,238 $78,618
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $25,000 $24,557 $20,999 $18,234 $17,357 $19,079 $22,908 $26,878 $33,950 $43,399 $52,975 $65,238 $78,618
Long-term Assets
Long-term Assets $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000
Accumulated Depreciation $0 $952 $1,904 $2,856 $3,808 $4,760 $5,712 $6,664 $7,616 $8,568 $9,520 $10,472 $11,424
Total Long-term Assets $110,000 $109,048 $108,096 $107,144 $106,192 $105,240 $104,288 $103,336 $102,384 $101,432 $100,480 $99,528 $98,576
Total Assets $135,000 $133,605 $129,095 $125,378 $123,549 $124,319 $127,196 $130,214 $136,334 $144,831 $153,455 $164,766 $177,194
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 $8,039 $10,210 $11,277 $12,614 $14,444 $16,274 $17,118 $18,677 $20,508 $21,758 $23,588 $25,128
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 $8,039 $10,210 $11,277 $12,614 $14,444 $16,274 $17,118 $18,677 $20,508 $21,758 $23,588 $25,128
Long-term Liabilities $150,000 $148,834 $147,668 $146,502 $145,336 $144,170 $143,004 $141,838 $140,672 $139,506 $138,340 $137,174 $136,008
Total Liabilities $150,000 $156,873 $157,878 $157,779 $157,950 $158,614 $159,278 $158,956 $159,349 $160,014 $160,098 $160,762 $161,136
Paid-in Capital $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
Retained Earnings ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000) ($95,000)
Earnings $0 ($8,269) ($13,783) ($17,400) ($19,401) ($19,295) ($17,082) ($13,742) ($8,016) ($183) $8,358 $19,005 $31,058
Total Capital ($15,000) ($23,269) ($28,783) ($32,400) ($34,401) ($34,295) ($32,082) ($28,742) ($23,016) ($15,183) ($6,642) $4,005 $16,058
Total Liabilities and Capital $135,000 $133,605 $129,095 $125,378 $123,549 $124,319 $127,196 $130,214 $136,334 $144,831 $153,455 $164,766 $177,194
Net Worth ($15,000) ($23,269) ($28,783) ($32,400) ($34,401) ($34,295) ($32,082) ($28,742) ($23,016) ($15,183) ($6,642) $4,005 $16,058
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Copyright Palo Alto Software, Inc., 2020 All rights reserved.

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This is a business plan. It does not imply an offering of securities.

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

1.0 Executive Summary

$250,000 Gross Margin

$200,000 Net Profit

1.2 Keys to Success

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

Total Requirements $230,000

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($95,000)

Total Capital and Liabilities $135,000

Total Funding $230,000

2.3 Company Locations and Facilities

3.0 Products and Services

Southwest Veterinary Clinic will offer the following services:

 Internal medicine and surgery;

4.0 Market Analysis Summary

4.1 Market Segmentation

Southwest Veterinary Clinic will focus on three significant customer groups:

Table: Market Analysis

Chart: Market Analysis (Pie)

Market Analysis (Pie)

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

The competitive edge of Southwest Veterinary Clinic is:

5.2 Sales Strategy

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

Chart: Sales Monthly

Chart: Sales by Year

6.0 Management Summary

6.1 Personnel Plan

The Southwest Veterinary Clinic will have a staff of three.

Total Payroll $168,000 $183,000 $198,000

7.0 Financial Plan

The following is the financial plan for Southwest Veterinary Clinic.

7.1 Break-even Analysis

The monthly break-even point is $30,000.

Table: Break-even Analysis

Monthly Revenue Break-even $28,351

Chart: Break-even Analysis

$0 $10,000 $20,000 $30,000 $40,000 $50,000

7.2 Projected Profit and Loss

Chart: Profit Monthly

Chart: Profit Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

Gross Margin $318,300 $340,000 $370,000

Total Operating Expenses $259,689 $277,524 $294,624

Profit Before Interest and Taxes $58,611 $62,476 $75,376

Net Profit $31,058 $34,702 $44,712

7.3 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow