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()or *+ dollars ended up getting a -uarter of a million dollars of funding. fundi ng. hat’s worth it%/ 0 odd 1. ablegate
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his sample business plan has been made available to users of Business Plan Pro4, business planning software published by alo Alto #oftware, nc. 5ames, locations and numbers may have been changed, and substantial portions of the original plan te6t may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to c reate your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it e6ists here. 7e-uests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of alo Alto #oftware at marketing8paloalto.com. )or product information visit our website! www.paloalto.com or call! 9:;++:**<:=2*>. Copyright © Palo Alto Alto Software, Inc., 1!"#$$ All rights reser%ed.
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his sample business plan has been made available to users of Business Plan Pro4, business planning software published by alo Alto #oftware, nc. 5ames, locations and numbers may have been changed, and substantial portions of the original plan te6t may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to c reate your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it e6ists here. 7e-uests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of alo Alto #oftware at marketing8paloalto.com. )or product information visit our website! www.paloalto.com or call! 9:;++:**<:=2*>. Copyright © Palo Alto Alto Software, Inc., 1!"#$$ All rights reser%ed.
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This is a business plan. It does not imply an offering of securities.
Table of Contents
9.+ C6ecutive #ummary.....................................................................................................................1 1hart! Dighlights...........................................................................................................................1 9.9 Ebjectives....................................................................................................................................1 9.* Fission...........................................................................................................................................2 9.G Heys to #uccess.........................................................................................................................2 *.+ 1ompany #ummary......................................................................................................................2 *.9 #tart:up #ummary....................................................................................................................2 able! #tart:up...............................................................................................................................2 1hart! #tart:up..............................................................................................................................3 able! #tart:up )unding..............................................................................................................4 *.* 1ompany Ewnership................................................................................................................4 G.+ roducts............................................................................................................................................4 I.+ Farket Analysis #ummary .........................................................................................................5 I.9 Farket #egmentation..............................................................................................................5 able! Farket Analysis................................................................................................................ 1hart! Farket Analysis $ie&..................................................................................................... I.* ndustry Analysis.......................................................................................................................! I.*.9 1ompetition and 'uying atterns...............................................................................! 2.+ #trategy and mplementation #ummary............................................................................." 2.9 1ompetitive Cdge......................................................................................................................" 2.* Farketing #trategy..................................................................................................................." 2.G #ales #trategy............................................................................................................................# 2.G.9 #ales )orecast....................................................................................................................# able! #ales )orecast...............................................................................................................# 1hart! #ales Fonthly...............................................................................................................# 2.I Filestones..................................................................................................................................1$
Table of Contents
;.I rojected 1ash )low...............................................................................................................1 able! 1ash )low.........................................................................................................................1 1hart! 1ash...................................................................................................................................1! ;.2 rojected 'alance #heet......................................................................................................1" able! 'alance #heet.................................................................................................................1" ;.> 'usiness 7atios........................................................................................................................1# able! 7atios.................................................................................................................................1# able! #ales )orecast...........................................................................................................................1 able! ersonnel....................................................................................................................................2 able! ersonnel....................................................................................................................................2 able! Jeneral Assumptions.............................................................................................................3 able! Jeneral Assumptions.............................................................................................................3 able! rofit and Loss..........................................................................................................................4 able! rofit and Loss..........................................................................................................................4 able! 1ash )low...................................................................................................................................5 able! 1ash )low...................................................................................................................................5 able! 'alance #heet........................................................................................................................... able! 'alance #heet...........................................................................................................................
%ature&s Candy
9.+ C6ecutive #ummary 5atureKs 1andy is an e:commerce company designed to become the market leader in Web based sales of naturopathic and homeopathic nutritional supplements. he company is located in ortland, E7. Although many nternet companies have recently failed, the nternet is still poised to support e:commerce retailers. Fost of the dot:coms failed because of too easy access to capital and unproven business models with no true revenue streams. 5atureKs 1andy will overcome these problems with an easy:to:use website and an efficient distribution system. n the ne6t three years 5atureKs 1andy intends to create an icon e:commerce brand through laser:focused marketing and will grow to G9<,+++ in revenue.
1hart! Dighlights
%ature&s Candy
9.* Fission 5atureKs 1andyKs mission is to provide the finest in natural supplements using the nternet to lower the consumerKs cost. We e6ist to attract and maintain customers. When we adhere to this ma6im, everything else will fall into place. Eur services will e6ceed the e6pectations of our customers.
9.G Heys to #uccess 5atureKs 1andyKs keys to success are! • • • •
Farketing. Web design. roduct -uality. #ervice.
*.+ 1ompany #ummary 5atureKs 1andyKs goal is to become the e:commerce market leader in sales and marketing of naturopathic and homeopathic dietary supplements. *.9 #tart:up #ummary 5atureKs 1andy will incur the following start:up costs! • •
Legal fees for the business formation. Effice supplies. Web development.
%ature&s Candy
Total Requirements
1hart! #tart:up
$+0,000
%ature&s Candy
able! #tart:up )unding
Start-up Funding
Start-up Expenses to un& Start-up #ssets to un& "otal un&ing Require&
$11,200 $'+,+00 $+0,000
#ssets on-cas% #ssets rom Start-up as% Requirements rom Start-up #&&itional as% Raise& as% /alance on Starting ate "otal #ssets
$*,200 $'(,'00 $0 $'(,'00 $'+,+00
Liabilities an& apital Liabilities urrent /orroing Long-term Liabilities #ccounts ayable )utstan&ing /ills3 )t%er urrent Liabilities interest-ree3 "otal Liabilities
$0 $0 $0 $0 $0
apital lanne& 4n!estment 5uac6 Steart )t%er #&&itional 4n!estment Requirement "otal lanne& 4n!estment
$7(,000 $*(,000 $0 $0 $+0,000
Loss at Start-up Start-up Expenses3 " t l it l
$11,2003 $'+ +00
%ature&s Candy
I.+ Farket Analysis #ummary he market for vitamins and nutritional supplements has gr own to over >.2 billion annually. Derbal sales alone are growing by *+3 per year. his market is lead by the aging 'aby 'oomer who is concerned with hisOher mortality. Also, there has been a paradigm shift of perception of nutritional supplements. Domeopathic and naturopathic products are seen as normal. n addition, positive medical results from major studies have further legitimiPed these products. I.9 Farket #egmentation A significant trend in America, and abroad, is that people are taking a more proactive interest in their health. his is e6emplified by the increase of health clubs and health club memberships. eople are looking to avoid invasive surgery and powerful pharmaceuticals. eople are taking an active role in the maintenance of their health and practicing preventive medicine. 5aturopathic medicine promotes the diagnosis, treatment, and prevention of human disorders through the use of non:invasive, non:pharmaceutical products and practices. n 9<
%ature&s Candy
able! Farket Analysis
Market Analysis
otential ustomers
9rot%
/aby /oomers )t%er
:; +; +.'2;
Total
1hart! Farket Analysis $ie&
8ear 1
8ear 2
'7,<+( 70,000 107,<+(
<0,'1' 7*,200 11*,+1'
8ear *
8ear 7
8ear ( #9R
<',:<1 7','(' 12*,'2<
+*,+:+ (0,*++ 1*7,2+'
:1,77: (7,71: 17(,+'+
:.00; +.00; +.'2;
%ature&s Candy
I.* ndustry Analysis he nutritional supplement market is a semi:mature market characteriPed by high:growth rates, medium barriers to entry, and a few large competitors. Bespite the competition in the market, many companies have reported annual growth levels of G+3. he market leaders are as follows! •
•
•
•
J51 $Jeneral 5utritional 1ompanies, nc.&! his c ompany is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements. With over G,+++ stores, J51 generated 9.9< billion in *+++. 5atureKs #unshine roducts, nc.! 5atureKs manufactures and markets a variety of health supplements. his multi:level marketing company had *+++ revenues of appro6imately G=+ million. 7e6all #undown, nc.! 7e6all develops, manufactures, markets and sells vitamins, nutritional supplements, and consumer health products through retailers, independent distributors, and mail order. 7e6all had *+++ revenues of appro6imately G=+ million. nternational Nitamin 1ompany, nc.! N1 manufactures, packages, s ells, and distributes private label vitamins and nutritional supplements to drug stores, supermarkets and health food stores. N1 had revenues of 9+= million in *+++.
he primary channels of distribution in this market are! • • • •
Fass market retailers $)red Feyer, 7ite Aide&. Birect #ales organiPations. Dealth )ood #tores $J51&. Fail order catalogs and the nternet.
%ature&s Candy
Pri%ate 'a(el Prod)cts C6amples! 5atureFed. nder retailerKs name. #maller line of products than broad:line brands. Fanufactured by a third party. Fore conservative potencies than broad line. end to be the cheapest.
2.+ #trategy and mplementation #ummary 5atureKs 1andyKs strategy is based on c apturing a small percentage of the growing homeopathic and naturopathic supplement market share through Web sales. Also, 5atureKs 1andy intends to create a premier brand, so that they can eventually capture market share across broad geographic lines. 2.9 1ompetitive Cdge 5atureKs 1andyKs competitive edge will be their easy:to:use website and superior customer service. he website design will be a competitive advantage because research indicates that an easy:to:use website significantly increases sales. he design of 5atureKs site will encourage purchases because it is so easy and -uick to make the purchase. oo often sales are lost because of comple6 websites that are far from intuitive. 5atureKs 1andyKs other competitive edge is superior customer service. he mantra of the customer service department is to serve the customer in any way re-uired. 1ustomers that call in with problemOissues will be amaPed at the amount of personal attention they receive and how -uickly issues are not only resolved, but significantly improved. his will be a powerful asset.
%ature&s Candy
2.G #ales #trategy 5atureKs 1andy will process <+3 of itKs sales online through a secure socket layer $##L&, an secure nternet connection. All orders will be charged to Nisa, Fastercard, or American C6press. 'y ensuring that the website is easy to navigate as well as simple to order from, 5atureKs 1andy will be ensuring that people who make it to the website will end up purchasing something. his last point is key. 7esearch indicates that too many sites that are not easy or intuitive lose customers who migrate through the site, often putting products in their basket, yet leave without purchasing anything. 2.G.9 #ales )orecast he first month and a half will be used to develop and ready the site. here will be no sales. )rom month two on, 5atureKs 1andy e6pects a gradual rise in sales. able! #ales )orecast Sales Forecast
8ear 1
8ear 2
8ear *
Sales /aby /oomers )t%er "otal Sales irect ost o Sales /aby /oomers )t%er Subtotal Direct Cost of Sales
$1':,7'' $1:,:*1 $1+:,*:< 8ear 1 $(0,+70 $(,:<: $(',+1:
$*<1,7(7 $70,+'0 $712,*17
$711,017 $7(,212 $7(',22'
8ear 2 $111,7*' $12,2(+ $12*,':7
8ear * $12*,*07 $1*,('* $1*',+'+
%ature&s Candy
2.I Filestones 5atureKs 1andy will have several milestones early on! •
• • •
'usiness plan completion. his will be done as a roadmap for the organiPation. his will be an indispensable tool for the ongoing performance and improvement of the company. Effice set up. Website completed. 1omplete hiring of the initial company personnel.
able! Filestones
Milestones
=ilestone /usiness plan completion )ice set up Web site complete& omplete %iring o t%e intial company personnel Totals
Start ate 1>1>2001 1>1>2001 1>1>2001 1>1>2001
En& ate 2>1>2001 2>1>2001 2>1>2001 2>1>2001
/u&get $0 $0 $0 $0
=anager #/ #/ #/ #/
epartment =ar6eting epartment epartment epartment
$0
>.+ Web lan #ummary 5atureKs 1andy will use their website as their catalog and ordering device. he website will be a complete product offering as well as to provide company information. he website will be designed with simplicity in mind. t is imperative that customers are able to navigate throughout the site intuitively with no problems. 5atureKs 1andy will be benchmarking
%ature&s Candy
=.+ Fanagement #ummary Muack Nendor, president and founder. Muack worked for Arthur Andersen until -ualifying for his 1A credential. De left Arthur Andersen to become operations manager at 5autilus )ootwear, a niche footwear start:up. Dis duties included general office management, finance manager, and jack:of:all:trades. Muack has gained useful insight into the supplemental industry through in: depth conversations with his father, a naturopathic physician. De received his '# from the niversity of Eregon. #tewart Wachit, technology officer. #tew worked at magina for two years where he specialiPed in 1SS and DFLOTFL programming. #tewart left magina to become a Web database developer at #ystems Fanagement ncorporated, specialiPing in 1old)usion and R#. De received his '# from the niversity of ittsburgh. here are important gaps as follows! • • •
1ustomer service representativeOmanager. BistributionOwarehouse manager. Advisory board.
=.9 ersonnel lan Muack and #tewart will be on the payroll starting month one and a customer service agent and distribution agent will be hired for month two. Ene programmer in addition to #tew will be hired in month one. able! ersonnel
%ature&s Candy
".$ 'inancial Plan he following sections will outline important financial information.
;.9 mportant Assumptions he following table details important financial assumptions.
able! Jeneral Assumptions
General Assumptions
lan =ont% urrent 4nterest Rate Long-term 4nterest Rate "ax Rate Other
8ear 1
8ear 2
8ear *
1 10.00; 10.00; *0.00; 0
2 10.00; 10.00; *0.00; 0
* 10.00; 10.00; *0.00; 0
%ature&s Candy
;.* 'reak:even Analysis he 'reak:even Analysis indicates that *I,*I; will be needed in monthly revenue to reach the break:even point.
1hart! 'reak:even Analysis
%ature&s Candy
;.G rojected rofit and Loss he following table will indicate projected profit and loss.
able! rofit and Loss
Pro Forma Profit and Loss
8ear 1
8ear 2
8ear *
Sales irect ost o Sales )t%er ro&uction Expenses "otal ost o Sales
$1+:,*:< $(',+1: $0 $(',+1:
$712,*17 $12*,':7 $0 $12*,':7
$7(',22' $1*',+'+ $0 $1*',+'+
9ross =argin 9ross =argin ;
$1*2,(<+ <0.00;
$2++,'20 <0.00;
$*1:,*(+ <0.00;
ayroll Sales an& =ar6eting an& )t%er Expenses epreciation Lease& Equipment Atilities 4nsurance Rent ayroll "axes )t%er
$1(<,000 $10,+00 $'*' $0 $1,+00 $1,(00 $+,700 $2*,((0 $0
$1<7,000 $:,200 $'*' $0 $1,+00 $1,(00 $+,700 $2',100 $0
$1:0,000 $<,200 $'*' $0 $1,+00 $1,(00 $+,700 $2+,(00 $0
"otal )perating Expenses
$20*,'+'
$221,'*'
$2*+,0*'
roit /eore 4nterest an& "axes E/4"# 4nterest Expense
$<1,10+3 $<0,7<23 $0
$'',:+7 $'<,'20 $0
$+1,*22 $+1,:(+ $0
Expenses
%ature&s Candy
1hart! rofit Fonthly
%ature&s Candy
;.I rojected 1ash )low he following chart and table will indicate projected cash flow.
able! 1ash )low
Pro Forma Cash Flo
8ear 1
8ear 2
8ear *
as% Recei!e& as% rom )perations as% Sales Subtotal as% rom )perations
$1+:,*:< $1+:,*:<
$712,*17 $712,*17
$7(',22' $7(',22'
$0 $0 $0 $0 $0 $0 $0 $1+:,*:<
$0 $0 $0 $0 $0 $0 $0 $712,*17
$0 $0 $0 $0 $0 $0 $0 $7(',22'
8ear 1
8ear 2
8ear *
#&&itional as% Recei!e& Sales "ax, @#", BS">9S" Recei!e& e urrent /orroing e )t%er Liabilities interest-ree3 e Long-term Liabilities Sales o )t%er urrent #ssets Sales o Long-term #ssets e 4n!estment Recei!e& Subtotal as% Recei!e& Expen&itures Expen&itures rom )perations as% Spen&ing /ill ayments Subtotal Spent on )perations #&&itional as% Spent
$1(<,000 $:0,:0( $27<,:0(
$1<7,000 $1+<,0<2 $*'1,0<2
$1:0,000 $20<,1:( $*:<,1:(
%ature&s Candy
1hart! 1ash
%ature&s Candy
;.2 rojected 'alance #heet he following table will indicate the projected balance sheet.
able! 'alance #heet
Pro Forma Balance Sheet
8ear 1
8ear 2
8ear *
$<,0:2 $0 $<,0:2
$(+,**7 $0 $(+,**7
$11<,*'7 $0 $11<,*'7
$*,200 $'*' $2,('7 $:,'('
$*,200 $1,2<2 $1,:2+ $'0,2'2
$*,200 $1,:0+ $1,2:2 $11+,'('
#ssets urrent #ssets as% )t%er urrent #ssets "otal urrent #ssets Long-term #ssets Long-term #ssets #ccumulate& epreciation "otal Long-term #ssets "otal #ssets Liabilities an& apital
8ear 1
8ear 2
8ear *
#ccounts ayable urrent /orroing )t%er urrent Liabilities Subtotal urrent Liabilities
$11,:'7 $0 $0 $11,:'7
$1(,'+1 $0 $0 $1(,'+1
$1<,1(0 $0 $0 $1<,1(0
Long-term Liabilities "otal Liabilities
$0 $11,:'7
$0 $1(,'+1
$0 $1<,1(0
urrent Liabilities
%ature&s Candy
;.> 'usiness 7atios he following table compares key ratios for our industry category, SIC !*1, +lectronic Shopping. able! 7atios
!atio Analysis
8ear 1 Sales 9rot%
8ear 2
8ear *
4n&ustry roile
n.a.
11<.<0;
10.'(;
<.(';
)t%er urrent #ssets "otal urrent #ssets Long-term #ssets "otal #ssets
0.00; <*.7(; 2'.((; 100.00;
0.00; :'.+0; *.20; 100.00;
0.00; :+.:1; 1.0:; 100.00;
2<.::; <<.*1; 22.':; 100.00;
urrent Liabilities Long-term Liabilities "otal Liabilities et Wort%
12*.:0; 0.00; 12*.:0; -2*.:0;
2'.02; 0.00; 2'.02; <*.:+;
17.7(; 0.00; 17.7(; +(.((;
*+.+(; 1+.2:; (<.17; 72.+';
100.00; <0.00; 10<.(7; (.0<; -*<.(7;
100.00; <0.00; (+.'*; 1.:7; 1'.2(;
100.00; <0.00; (<.(2; 1.*2; 1<.+2;
100.00; 2'.72; 12.12; 2.2:; 0.<+;
0.(: 0.(: 12*.:0; *0+0.:7; -<*'.71;
*.<2 *.<2 2'.02; 1(0.2(; 111.1(;
'.+7 '.+7 17.7(; +0.12; '+.(7;
1.<+ 0.'* '2.(2; 2.0<; (.(*;
ercent o "otal #ssets
ercent o Sales Sales 9ross =argin Selling, 9eneral C #&ministrati!e Expenses #&!ertising Expenses roit /eore 4nterest an& "axes =ain Ratios urrent 5uic6 "otal ebt to "otal #ssets re-tax Return on et Wort% re-tax Return on #ssets
(ppendi)
able! #ales )orecast
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
$0 $0 $0
$3,254 $1,024 $4,278
$5,647 $1,245 $6,892
$7,845 $863 $8,708
$10,254 $1,128 $11,382
$14,545 $1,600 $16,145
$16,455 $1,810 $18,265
$18,455 $2,030 $20,485
$20,454 $2,250 $22,704
$22,547 $2,480 $25,027
$24,555 $2,701 $27,256
$25,455 $2,800 $28,255
Sales Baby Boomers Other Total Sales
!re"t #ost o Sales
0% 0%
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Baby Boomers
Month 1 $0
$976
$1,694
$2,354
$3,076
$4,364
$4,937
$5,537
$6,136
$6,764
$7,367
$7,637
Other
$0
$307
$374
$259
$338
$480
$543
$609
$675
$744
$810
$840
Subtotal Direct Cost of Sales
$0
$1,283
$2,068
$2,612
$3,415
$4,843
$5,480
$6,146
$6,811
$7,508
$8,177
$8,477
Page 1
(ppendi)
able! ersonnel
Personnel Plan
&a"' Ste(art )ro*rammer #&stomer ser+!"e !str!b&t!on Total )eole
Total Payroll
0% 0% 0% 0% 0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$3,000 $3,000 $2,500 $0 $0 3
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$3,000 $3,000 $2,500 $ 2,500 $2,500 5
$8,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
Page 2
(ppendi)
able! Jeneral Assumptions
General Assumptions
)lan Month #& rren t -n teres t .at e
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
1
2
3
4
5
6
7
8
Month 9 9
Month 10 10
Month 11 11
Month 12 12
10 /00%
10/00%
10/00%
1 0/00%
1 0/00%
10 /00%
10/ 00%
10/0 0%
10/00 %
10/00 %
10/00%
1 0/00%
on *term -nte rest .ate
10 /00%
10/00%
10/00%
1 0/00%
1 0/00%
10 /00%
10/ 00%
10/0 0%
10/00 %
10/00 %
10/00%
1 0/00%
Ta .ate
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
30/00%
0
0
0
0
0
Other
0
0
0
0
0
0
0
Page 3
(ppendi)
able! rofit 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
$0
$4,278
$6,892
$8,708
$11,382
$16,145
$18,265
$20,485
$22,704
$25,027
$27,256
$28,255
!re"t #ost o Sales
$0
$1,283
$2,068
$2,612
$3,415
$4,843
$5,480
$6,146
$6,811
$7,508
$8,177
$8,477
Other )ro&"t!on enses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total #ost o Sales
$0
$1,283
$2,068
$2,612
$3,415
$4,843
$5,480
$6,146
$6,811
$7,508
$8,177
$8,477
ross Mar*!n ross Mar*!n %
$0
$2,995
$4,824
$6,096
$7,967
$11,301
$12,786
$14,340
$15,893
$17,519
$19,079
$19,779
0/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
70/00%
$8,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$900
$900
$900
$900
$900
$900
$900
$900
$900
$900
$900
$900
$53
$53
$53
$53
$53
$53
$53
$53
$53
$53
$53
$53
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
enses )ayroll Sales an Mar'et!n* an Other enses ere"!at!on ease &!ment t!l!t!es -ns&ran"e
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
.ent
$700
$700
$700
$700
$700
$700
$700
$700
$700
$700
$700
$700
$1,275 $0
$2, 025 $0
$2,025 $0
$2 ,025 $0
$2,025 $0
$2 ,025 $0
$2,025 $0
$2 ,025 $0
$2,025 $0
$2,025 $0
$2,025 $0
$2 ,025 $0
$ 11 ,7 03
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
$ 17 ,4 53
)ayrol l Taes Other
To ta l O e ra t! n* e ns es
15%
)ro!t Beore -nterest an Taes
$11,703
$14,458
$12,629
$11,357
$9,486
$6,152
$4,667
$3,113
$1,560
$66
$1,626
$2,326
B-T:
$11,650
$14,405
$12,576
$11,304
$9,433
$6,099
$4,614
$3,060
$1,507
$119
$1,679
$2,379
-nterest ense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Taes -n"&rre
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
;et )ro!t Net Profit/Sales
$11,703
$14,458
$12,629
$11,357
$9,486
$6,152
$4,667
$3,113
$1,560
$66
$1,626
$2,326
0/00%
337/97%
183/24%
130/43%
83/34%
38/10%
25/55%
15/20%
6/87%
0/26%
5/97%
8/23%
Page 4
(ppendi)
able! 1ash )low
Pro Forma Cash Flow Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
#ash Sales
$0
$4,278
$6,892
$8,708
$11,382
$16,145
S&btotal #ash rom Oerat!ons
$0
$4,278
$6,892
$8,708
$11,382
$16,145
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Month 11
Month 12
$18,265
$20,485
$22,704
$18,265
$20,485
$22,704
$25,027
$27,256
$28,255
$25,027
$27,256
$28,255
$0 $0
$0 $0
$0 $0
$0 $0
#ash .e"e!+e
#ash rom Oerat!ons
:!t!onal #ash .e"e!+e Sales Ta , <:T, =ST>ST .e" e!+e ;e( #&rrent Borro(!n*
0/00%
$0 $0
;e( Other !ab!l!t!es !nterestree
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
;e( on*term !ab!l!t!es
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales o Other #&rrent :ssets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales o on*term :ssets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
;e( -n+estment .e"e!+e
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
S&btotal #ash .e"e!+e
$0
$4,278
$6,892
$8,708
$11,382
$16,145
$18,265
$20,485
$22,704
$25,027
$27,256
$28,255
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$8,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$13,500
$105
$3,218
$5,210
$5,986
$6,539
$7,362
$8,765
$9,402
$10,068
$10,734
$11,430
$12,087
$8, 605
$16,718
$1 8,710
$19,4 86
$20,0 39
$20,86 2
$22,26 5
$22,90 2
$23, 568
$ 24,234
$24,9 30
$25 ,587
Sales Ta, <:T, =ST>ST )a! O&t
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
)r!n"!al .eayment o #&rrent Borro(!n*
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other !ab!l!t!es )r!n"!al .eayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
on*term !ab!l!t!es )r!n"!al .eayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
)&r"hase Other #&rrent :ssets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
en!t&res
en!t&res rom Oerat!ons #ash Sen!n* B!ll )ayments S&btota l Sent o n Oerat! ons
:!t!onal #ash Sent
)&r"hase on*term :ssets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
!+!ens
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$8,605
$16,718
$18,710
$19,486
$20,039
$20,862
$22,265
$22,902
$23,568
$24,234
$24,930
$25,587
;et #ash ?lo(
$8,605
$12,440
$11,818
$10,778
$8,657
$4,717
$4,000
$2,417
$864
$793
$2,326
$2,668
Cash Balance
$56,995
$44,555
$32,738
$21,960
$13,303
$8,585
$4,586
$2,169
$1,305
$2,098
$4,424
$7,092
S&btotal #ash Sent
Page 5
