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Table of Contents
Page
Green Investments
Services
GI has developed a criteria-based marker system which is easy and effective in evaluating a
wide range of different companies on their environmental impact. Only financially
prudent/performing companies are evaluated, ensuring that its recommendations make both
financial and environmental sense.
Competitive Edge
GI will leverage the proprietory evaluation system to quickly gain market share. The system is
convenient and based on extensive research, providing a streamlined overview of the
environmental performance of the companies.
Market
GI will concentrate on the unserved niche of environmental investing within the financial
services market. GI faces indirect competition from environmentally responsible mutual funds,
which do a similar job in assessing a company's environmental performance but do not allow
for investing in individual equity.
Management Team
GI is lead by two experienced managers, Sarah Lewis, and Steve Burke. Sarah has a masters
degree in environmental studies and has worked for the Environmental Protection Agency
where she was responsible for preparing environmental impact statements. Steve has an MBA
and has worked for Salomon Smith Barney where he developed an extensive amount of
networking contacts.
GI addresses a previously ignored niche of the financial services market. GI will generate
$230,000 and $261,000 in sales in year two and three respectively.
Page 1
Green Investments
Chart: Highlights
Highlights
$240,000
$200,000
$160,000
Sales
$120,000
Gross Margin
$80,000
Net Profit
$40,000
$0
($40,000)
($80,000)
Year 1 Year 2 Year 3
1.1 Objectives
1.2 Mission
Green Investments' mission is to become the premier financial service organization that makes
investment in companies with outstanding environmental records and practices. Green
Investments, through comprehensive research and well thought out and verifiable marker
criteria will be able to identify sound environmental investments. By offering the highest level of
services, Green Investments will succeed as a company as well as have a positive impact on
our environment.
Page 2
Green Investments
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $5,000
Stationery etc. $500
Brochures $500
Licenses $2,000
Insurance $500
Research and Development $9,000
Other $2,500
Total Start-up Expenses $20,000
Start-up Assets
Cash Required $79,000
Other Current Assets $7,000
Long-term Assets $19,000
Total Assets $105,000
Page 3
Green Investments
Assets
Non-cash Assets from Start-up $26,000
Cash Requirements from Start-up $79,000
Additional Cash Raised $0
Cash Balance on Starting Date $79,000
Total Assets $105,000
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
Investor 1 $75,000
Investor 2 $50,000
Additional Investment Requirement $0
Total Planned Investment $125,000
Steve Burke and Sarah Lewis equally own Green Investments. While they initially were going to
create a S Corporation as the business formation, they decided to form as a L.L.C. as a means
to avoid double taxation found with a corporation yet realizing the benefits of personal liability
avoidance.
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Green Investments
3.0 Services
Green Investments is a financial service company that offers investment advice specifically for
stocks. GI purchases fiscal performance research from Bear Stearns, one of the highest
respected firms in the market. In addition to solid financial performance criteria, GI has
developed a set of environmental markers by which it can analyze and grade the attractiveness
of the environmental impact that a company has.
As mentioned earlier, the economic performance of a company is rated by the financial firm
Bear Stearns. Green Investments purchases Bear Stearns research based on recognition that
there is no value added to do this research. The confidence of the research is quite high
because of the firm performing it. If Bear Stearns' research or another firm of comparable
quality was not available Green Investments would have to rethink the decision to farm out this
research.
Green Investments has developed a comprehensive set of environmental markers for which a
company and their environmental impact can be evaluated. The following areas are evaluated:
Energy usage
Water usage
Recycling program
Paper consumption and procurement
Chemical cleaning usage
Ground maintenance impact
Formal environmental policy
Recycling rate
All of the markers include current, next stage, and long run benchmarks.
Green Investments takes the list of recommended investments from Bear Stearns and then
applies environmental marker criteria to narrow the list down. The result is a list of possible
investments (stocks) that are recommended because of their fiscal and environmental
performance. Green Investments attempts to make evaluations of companies in a wide range of
sectors allowing the customer to make the choice as to what type of company/industry that
they would like to invest in.
Green Investments' service charge is similar to a typical brokerage fee system based on a
percentage. While Green Investments is a bit more expensive than other standard financial
services companies because of the additional research required, the variance is not that
material, particularly to customers that want good performing stocks but only want to invest
with environmentally sound companies.
Several recent well respected studies indicate that "green" stocks are not inherently under
performing. Actually it is just the reverse, companies that make decisions with environmental
considerations in mind generally perform better.
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Green Investments
Green Investments has identified two distinct groups of target customers. These two groups of
customers are distinguished by their household wealth. They have been grouped as customers
with <$1 million and >$1 million in household wealth. The main characteristic that makes both
of these groups so attractive is their desire to make a difference in the world by making
investment decisions that take into account environmental factors.
The financial services industry has many different niches. Some advisors provide general
investment services. Others will only offer one type of investments, maybe just mutual funds or
might concentrate on bonds. Other service providers will concentrate on a specific niche like
technology or socially responsible companies.
Green Investments has segmented the target market into two distinct groups. The groups can
be differentiated by their difference in household wealth, households of <$1 million and >$1
million.
<$1 million (household worth): These customers are middle class people who have a
concern for the environment and are taking personal action through their choosing of stock
investments based on companies with both strong economic and environmental
performance records. Because these people do not have an over abundance of money they
choose stocks that are of moderate risk. Generally, this group has 35%-45% of their
portfolio in stocks, the remaining percentages in other types of investments.
>$1 million (household worth): These customers are upper middle class to upper class.
They have amassed over $1 million in savings and are fairly savvy investors (themselves or
the people they hire). These people are generally concerned about the rate of return of their
investments but also have environmental concerns.
Vehicles are chosen with environmental concerns in mind. This means they are unlikely to
own a SUV, they may in fact be one of the first adopters of the new hybrids (gas/electric
vehicles).
Many of the people commute by bike, car pool or use public transportation when possible.
Active recyclers, both at work as well as at home.
Retail purchases are made with environmental concerns in mind.
A higher percentage of these people relative to the general population are vegetarians.
For recreational sports, particularly outdoor sports, the people are more likely to enjoy
hiking, XC skiing, and other human powered activities instead of golf, downhill skiing,
snowmobiling, and jet skiing, all sports that are destructive to the environment.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
<$1 million worth 8% 1,232,000 1,330,560 1,437,005 1,551,965 1,676,122 8.00%
Page 6
Green Investments
customers
>$1 million worth 7% 223,090 238,706 255,415 273,294 292,425 7.00%
customers
Total 7.85% 1,455,090 1,569,266 1,692,420 1,825,259 1,968,547 7.85%
Green Investments has chosen the previously mentioned target market segments because of
the ideological beliefs and the fact that these beliefs translate into the customer groups needing
services that Green Investments can provide. While the people can always purchase shares of
an environmentally responsible mutual fund, a way that they can exercise their beliefs, mutual
funds are just one type of investments. The downside of investments are their relatively low
rate of return (relative to good stocks) and the inability to receive personalized service and the
ability to make custom choices beyond the type of mutual fund.
Therefore, Green Investments has chosen these specific customer segments because it is a
market group that has unmet needs. These groups have the money and willingness for an
environmental investment, yet their only current choice is a mutual fund. Green Investments
has chosen to distinguish the two market segments by household worth since this characteristic
provides useful behavioral information regarding the different people.
Page 7
Green Investments
Green Investments participates within the financial service industry. This multi-billion dollar
($14.8) industry services a wide range of people and companies with financial services such as
investments. There are many different types of investments offered including but not limited to:
Bonds
Treasury bills
Stocks, mutual funds
Insurance policies
Annuities
IRAs
Within the industry, customers are served by a wide range of service providers including:
Buying decisions are often based on who you know or familiarity that the person may have with
a specific company. Most of the service providers can provide a similar menu of investment
options.
Fee structures vary from firm to firm. Many are percentage based on the amount of money the
client investments. Some firms charge hourly rates while other firms charge a quarterly
management fee. The fee structures are set in stone for some service providers while others
take a more flexible approach and are willing to work with the customer to set up special
arrangements.
Green Investments has no direct competitors that offer environmentally sound stock
investment services. All of the current environmental investment options are mutual fund
based. Examples of this type of mutual funds include Janus, Citizen Funds, Sierra Club
Environmental Fund, and Portfolio 21.
Other competitors that Green Investments faces are the typical range of financial advisors.
These indirect competitors provide customers with a wide range of different investment options.
They could always place an investment order for a specific company, but these specific
competitors do not do any independent research on the environmentalism of different
companies.
Green Investments will leverage its sustainable competitive edge of independent environmental
research based on a custom set of criteria based markers for an objective measure of
a company's dedication to environmentalism. The competitive edge will be marketed by using
the mantra of "think globally, act locally." This marketing slogan will encourage people to do
their part in regards to helping the environment through responsible investing. The sales
Page 8
Green Investments
campaign will rely on metrics that indicate environmental investments can and do outperform
the S&P 500 Index.
Green Investments' competitive edge is the environmental marker criteria that when applied
indicates which economic performing companies with solid environmental commitments. The
markers are effective for extremely valuable for several reasons:
The key here is the fact that an objective, easy to apply, and accurate measurement system
has been developed to provide environmental analysis for any company that has the markers
applied to them. No one else offers this type of service as an information source for the decision
making process of stock investments.
"Think globally, act locally." This well known and concise mantra simply suggests everyone
should do their part. Green Investments services allows people to make investments based on
their conscience. So many people want to do good but are unsure how to. Green Investments'
services allows people to do the right thing, with no real cost relative to the other options.
Green Investments' returns are better than the S&P 500 Index.
The marketing effort will concentrate on Green Investments' ability to empower people to make
a substantial difference in this world while getting a great return on their money. Green
Investments will use magazine advertisements and community based marketing (networking,
sponsorship and participation in seminars) to increase visibility for Green Investments and the
services offered. The advertisements will be a steady way that people will become aware of the
investment options as well as some visibility for the company itself. The community
involvement implicitly accepts the premise that good business relies on networking (inter
relationships, both business and personal) to be a significant source of business and good will.
Green Investments will participate in numerous on-topic events and seminars that will display
them as experts as well as give them a podium to describe the different services.
The sales strategy will rely on using quantitative evidence the recommended companies
outperform the S&P 500 Index. In 1999-2001, Green Investments' chosen companies
outperformed the index by 2.4%. This is a significant amount. The sales strategy will
concentrate on that by making smart green investments, you can achieve better then average
returns on your money. A sales packet will be assembled and distributed to prospective
customers that shows the better than average historic returns that Green Investments
recommended companies enjoy.
Page 9
Green Investments
The sales forecast is being done in a conservative fashion to avoid any inflated expectations
that might not be able to be obtained. The first several months will be slow. Green Investments
has projected steady, incremental growth in sales. This can be explained as a function of the
increased proficiency in terms of sales for Green Investments as well as an increased
awareness of Green Investments by the target customers. Please review the following table and
11 12
chart for numerical and graphical representations of the future year's sales forecasts.
10 Month
9 Month
Table: Sales Forecast
8 Month
7 Month
Sales Forecast
6 Month
Year 1 Year 2 Year 3
Sales
5 Month
<$1 million worth customers $54,746 $156,665 $178,225
>$1 million worth customers 4 Month $22,889 $73,633 $83,766
Total Sales $77,635 $230,298 $261,991
3 Month
Sales Monthly
$12,000
$10,000
$8,000
<$1 million worth customers
$4,000
$2,000
$0
Page 10
Green Investments
5.4 Milestones
Green Investments has identified several milestones which will act as ambitious yet achievable
goals for the organization. By establishing the goals, the need to reach them will develop an
implicit incentive for all organizational members to work hard to achieve the milestones.
Business plan completion: The business plan is the roadmap for the organization. There
is value in the process of the writing of the business plan, forcing the writers to analyze a
multitude of issues.
First account of over $1 million invested: This would be a significant amount of money
for an individual account and the organization will strive to achieve many of these
customers.
Revenue of $250,000: With the achievement of this milestone and the previous one,
there will be a clear reaffirmation that the business model is successful.
Table: Milestones
Milestones
Page 11
Green Investments
Chart: Milestones
Milestones
Profitability
Revenue of $250K
The website will be used as a marketing tool to provide interested people with information
regarding Green Investments and the services they provide. The site will be fairly basic, an
introduction to Green Investments.
The website will be marketed via spoken word of Green Investments personnel, on printed
literature, as well as submission to popular Internet search engines such as Google!.
The development requirements for the website will not be significant due to the simple nature
of the site acting as an informational site as opposed to more complex websites that include
ecommerce activities or more interactive features. A computer science student will be used for
the design and construction of the site.
Green Investments will be lead by the founding team of Sarah Lewis and Steve Burke. Sarah
has an undergraduate and Masters in environmental studies from the University of Burlington.
After Sarah obtained the degrees she moved to Washington DC where she worked for the
Environmental Protection Agency (EPA) for four years, performing environmental impact
statements for a variety of industries, companies, and projects. Sarah was also a project
manager for Janus in their evaluation department where they performed company wide
environmental assessments of companies that were perspective investments for the fund.
Page 12
Green Investments
The other member of Green Investments management team is Steve Burke. Steve hails from a
financial background. Steve has an undergraduate degree in Finance from Seattle University
and a MBA from the University of Washington. After school Steve went to work for Salomon
Smith Barney in their investment department for eight years.
Page 13
Green Investments
The positions will be phased in on an as needed basis. Please review the following chart for
personnel forecasts.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Sarah $30,000 $40,000 $40,000
Steve $30,000 $40,000 $40,000
Account Manager $27,000 $36,000 $36,000
Administrative Assistant $15,000 $15,000 $15,000
Bookkeeper $10,000 $12,000 $12,000
Research Assistant $8,250 $9,000 $9,000
Total People 6 6 6
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 30.00% 30.00% 30.00%
Other 0 0 0
Page 14
Green Investments
Break-even Analysis
$15,000
$12,000
$9,000
$6,000
$3,000
$0
($3,000)
($6,000)
($9,000)
($12,000)
$0 $6,000 $12,000 $18,000 $24,000 $30,000
$3,000 $9,000 $15,000 $21,000 $27,000 $33,000
Break-even Analysis
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $12,941
Page 15
Green Investments
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
Page 16
Green Investments
Profit Monthly
$0
($2,000)
($4,000)
($6,000)
($8,000)
($10,000)
($12,000)
Profit Yearly
$20,000
$0
($20,000)
($40,000)
($60,000)
($80,000)
Page 17
Green Investments
Expenses
Payroll $120,250 $152,000 $152,000
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $3,804 $317 $317
Rent $7,800 $7,800 $7,800
Utilities $1,800 $1,800 $1,800
Insurance $1,800 $1,800 $1,800
Payroll Taxes $18,038 $22,800 $22,800
Other $1,800 $1,800 $1,800
The following table and chart will indicate Projected Cash Flow.
Page 18
8 Mon
Month 9
Green Investments
Month
6 Month
7
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Month
Principal Repayment of Current Borrowing $300 $1,000 $1,000
Other Liabilities Principal Repayment $0 $0 $0
Month 5
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
4
Purchase Long-term Assets $0 $0 $0
Month
Dividends $0 $0 $0
Subtotal Cash Spent $158,944 $224,497 $237,646
Month 3
Net Cash Flow ($78,308) $5,801 $24,345
MonthMonth 2
Cash Balance $692 $6,492 $30,837
1
Chart: Cash
Cash
$80,000
$70,000
$60,000
$50,000
$10,000
$0
($10,000)
Page 19
Green Investments
Current Assets
Cash $692 $6,492 $30,837
Other Current Assets $7,000 $7,000 $7,000
Total Current Assets $7,692 $13,492 $37,837
Long-term Assets
Long-term Assets $19,000 $19,000 $19,000
Accumulated Depreciation $3,804 $4,121 $4,438
Total Long-term Assets $15,196 $14,879 $14,562
Total Assets $22,888 $28,371 $52,399
Current Liabilities
Accounts Payable $4,561 $5,994 $7,043
Current Borrowing $2,700 $1,700 $700
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,261 $7,694 $7,743
Long-term Liabilities $0 $0 $0
Total Liabilities $7,261 $7,694 $7,743
Page 20
Green Investments
The following table indicates Business Ratios found within the industry of financial services as
well as ratios specific to Green Investments. Please note that while there are some similarities
between the general financial service industry and Green Investments, GI is more unusual in
that they do their own assessment of companies, beyond typical research.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 196.64% 13.76% 8.79%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.00% 85.00% 85.00% 100.00%
Selling, General & Administrative Expenses 200.12% 82.81% 75.85% 82.68%
Advertising Expenses 0.00% 0.00% 0.00% 1.66%
Profit Before Interest and Taxes -115.03% 3.23% 13.12% 1.37%
Main Ratios
Current 1.06 1.75 4.89 1.59
Quick 1.06 1.75 4.89 1.22
Total Debt to Total Assets 31.73% 27.12% 14.78% 3.09%
Pre-tax Return on Net Worth -571.95% 34.90% 76.71% 60.22%
Pre-tax Return on Assets -390.49% 25.43% 65.37% 7.76%
Activity Ratios
Accounts Payable Turnover 9.42 12.17 12.17 n.a
Payment Days 27 26 28 n.a
Total Asset Turnover 3.39 8.12 5.00 n.a
Debt Ratios
Debt to Net Worth 0.46 0.37 0.17 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $430 $5,798 $30,094 n.a
Interest Coverage -1,231.74 33.80 286.46 n.a
Additional Ratios
Assets to Sales 0.29 0.12 0.20 n.a
Current Debt/Total Assets 32% 27% 15% n.a
Acid Test 1.06 1.75 4.89 n.a
Page 21
Green Investments
Page 22
Appendix
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
<$1 million worth customers 0% $0 $0 $0 $2,500 $3,545 $4,545 $5,878 $6,335 $7,474 $7,558 $8,255 $8,656
>$1 million worth customers 0% $0 $0 $0 $0 $0 $2,136 $2,763 $2,977 $3,513 $3,552 $3,880 $4,068
Total Sales $0 $0 $0 $2,500 $3,545 $6,681 $8,641 $9,312 $10,987 $11,110 $12,135 $12,724
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
<$1 million worth customers $0 $0 $0 $375 $532 $682 $882 $950 $1,121 $1,134 $1,238 $1,298
>$1 million worth customers $0 $0 $0 $0 $0 $320 $414 $447 $527 $533 $582 $610
Subtotal Direct Cost of Sales $0 $0 $0 $375 $532 $1,002 $1,296 $1,397 $1,648 $1,667 $1,820 $1,909
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
Sarah 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Steve 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Account Manager 0% $0 $0 $1,500 $2,000 $2,500 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Administrative Assistant 0% $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Bookkeeper 0% $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Research Assistant 0% $0 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Total People 2 3 6 6 6 6 6 6 6 6 6 6
Total Payroll $5,000 $5,750 $9,750 $10,250 $10,750 $11,250 $11,250 $11,250 $11,250 $11,250 $11,250 $11,250
Page 2
Appendix
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% 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
Gross Margin $0 $0 $0 $2,125 $3,013 $5,679 $7,345 $7,916 $9,339 $9,444 $10,315 $10,816
Gross Margin % 0.00% 0.00% 0.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00% 85.00%
Expenses
Payroll $5,000 $5,750 $9,750 $10,250 $10,750 $11,250 $11,250 $11,250 $11,250 $11,250 $11,250 $11,250
Sales and Marketing and Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Depreciation $317 $317 $317 $317 $317 $317 $317 $317 $317 $317 $317 $317
Rent $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650
Utilities $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Payroll Taxes 15% $750 $863 $1,463 $1,538 $1,613 $1,688 $1,688 $1,688 $1,688 $1,688 $1,688 $1,688
Other $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Total Operating Expenses $7,167 $8,030 $12,630 $13,205 $13,780 $14,355 $14,355 $14,355 $14,355 $14,355 $14,355 $14,355
Profit Before Interest and Taxes ($7,167) ($8,030) ($12,630) ($11,080) ($10,766) ($8,676) ($7,010) ($6,439) ($5,016) ($4,911) ($4,040) ($3,539)
EBITDA ($6,850) ($7,713) ($12,313) ($10,763) ($10,449) ($8,359) ($6,693) ($6,122) ($4,699) ($4,594) ($3,723) ($3,222)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $25 $25 $23
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($7,167) ($8,030) ($12,630) ($11,080) ($10,766) ($8,676) ($7,010) ($6,439) ($5,016) ($4,936) ($4,065) ($3,561)
Net Profit/Sales 0.00% 0.00% 0.00% -443.18% -303.70% -129.85% -81.13% -69.14% -45.65% -44.43% -33.50% -27.99%
Page 4
Appendix
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 ($5,062) ($7,604) ($11,733) ($10,328) ($10,225) ($7,831) ($6,409) ($6,025) ($4,456) ($1,577) ($3,599) ($3,461)
Page 5
Appendix
Cash Balance $73,938 $66,335 $54,602 $44,275 $34,049 $26,218 $19,809 $13,785 $9,329 $7,752 $4,153 $692
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Appendix
Current Assets
Cash $79,000 $73,938 $66,335 $54,602 $44,275 $34,049 $26,218 $19,809 $13,785 $9,329 $7,752 $4,153 $692
Other Current Assets $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Total Current Assets $86,000 $80,938 $73,335 $61,602 $51,275 $41,049 $33,218 $26,809 $20,785 $16,329 $14,752 $11,153 $7,692
Long-term Assets
Long-term Assets $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000
Accumulated Depreciation $0 $317 $634 $951 $1,268 $1,585 $1,902 $2,219 $2,536 $2,853 $3,170 $3,487 $3,804
Total Long-term Assets $19,000 $18,683 $18,366 $18,049 $17,732 $17,415 $17,098 $16,781 $16,464 $16,147 $15,830 $15,513 $15,196
Total Assets $105,000 $99,621 $91,701 $79,651 $69,007 $58,464 $50,316 $43,590 $37,249 $32,476 $30,582 $26,666 $22,888
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 $1,788 $1,897 $2,477 $2,912 $3,136 $3,663 $3,947 $4,045 $4,288 $4,330 $4,478 $4,561
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $3,000 $2,700
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $1,788 $1,897 $2,477 $2,912 $3,136 $3,663 $3,947 $4,045 $4,288 $7,330 $7,478 $7,261
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $1,788 $1,897 $2,477 $2,912 $3,136 $3,663 $3,947 $4,045 $4,288 $7,330 $7,478 $7,261
Paid-in Capital $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
Retained Earnings ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Earnings $0 ($7,167) ($15,197) ($27,826) ($38,906) ($49,672) ($58,347) ($65,357) ($71,796) ($76,812) ($81,748) ($85,813) ($89,374)
Total Capital $105,000 $97,833 $89,804 $77,174 $66,095 $55,328 $46,653 $39,643 $33,204 $28,188 $23,252 $19,187 $15,626
Total Liabilities and Capital $105,000 $99,621 $91,701 $79,651 $69,007 $58,464 $50,316 $43,590 $37,249 $32,476 $30,582 $26,666 $22,888
Net Worth $105,000 $97,833 $89,804 $77,174 $66,095 $55,328 $46,653 $39,643 $33,204 $28,188 $23,252 $19,187 $15,626
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