SAMPLE PLAN 1

BUS I N E SS PLA N

Mr. John Jones

Phone: 1-800-555-1212
www.sampleplans1.com

Table of Contents
Executive Summary ........................................................................................ 4
Loan Analysis .................................................................................................... 5
Financial Highlights ......................................................................................... 5
Startup Summary ............................................................................................. 6
Industry at a Glance ......................................................................................... 8
Projected Industry Growth ............................................................................. 9
Key External Drivers .......................................................................................10
Objectives .........................................................................................................10
SWOT Analysis ..................................................................................................11
Marketing...........................................................................................................11
Management Summary .................................................................................12
FInancial Indicators .........................................................................................13
Revenue Forecast ............................................................................................14
Break-Even Analysis .......................................................................................15
Prot and Loss Statement .............................................................................16
Projected Cash Flow .......................................................................................17
Projected Balance Sheet ................................................................................18
Year 1 Personnel Forecast ..............................................................................19
Year 1 Revenue Forecast.................................................................................19
Year 1 Prot & Loss .........................................................................................20
Year 1 Balance Sheet .......................................................................................21

Executive Summary
Sample Plan 1 will be an innovative online e-commerce portal offering a variety of products to consumers throughout the globe.
Founded by Mr. John Jones, a seasoned business visionary with an eye towards prot and achievement, the organization is set to
enter the market during 2012. The timing of market entry is nothing less than exceptional as consumers throughout the globe have
begun releasing pent-up spending that was held as a result of the global recession. Online shopping is at an all-time high with new
consumer mindsets calling for them to shop for the types of deals and bargains that will be so much a part of the Sample Plan 1
business model. While the market has a great deal of potential and is lled with incredible opportunities, in order to capitalize on
them, a strong infusion of working capital must be acquired. Working capital will be used in a variety of areas including marketing,
logistics, insurance, management as well as the nancing of the day to day operations of a business of this type. The founder projects
needing a working capital sum of 100K for his venture with repayment of this sum coming from prots made through the website.
Marketing for Sample Plan 1 will be done primarily through the Internet. The founder will develop a strong online presence that is
user-friendly, easy to navigate and encourages consumers to engage in longer stays that increase the probability of a purchase. In
addition to the home website, plans also call for the organization to develop a strong social media presence using Facebook.com and
Twitter.com; the worlds premier social networks with over 1 billion persons in their combined communities. The social media pages
will be updated on a daily basis with information that will drive the marketing message and allow it to resonate with the members of
the core audience. Long-term plans call for the founder to possibly explore mass media marketing including print, radio and television
but at this time, those mediums simply will not yield an optimal return on investment. For this reason, the founder has decided to
forego them but does reserve the right to revisit them as the needs and resources of the business allow.
Financials for Sample Plan 1 are strong and show patterns of consistent growth over the course of the next ve years. Overhead costs
are extremely low and do not in any way threaten the projected prot position of the organization in any of the ve years that are
outlined in the nancials. There are no large salaries involved in the nancial mix as the founder does not project to immediately need
to hire a staff of any type as the majority of the functions can be handled alone. All of these factors bode extremely well for Sample
Plan 1 as the organization looks to become one of the online commerces signature brands and a true market leader.

Loan Analysis
Loan Analysis
Interest Rate:
Years of Loan:
Loan Amount:

8.50%
15
$100,000.00

Monthly Payment:
Total Payment:
Total Interest:

$984.74
$177,253.12
$77,253.12

The projected loan analysis for Sample Plan 1 is shown in the

table above. The organization projects to have a monthly loan
payment of $984.74 with a total loan payment of $177,253.12
over the 15 year life of the loan.

Financial Highlights
$2,500,000.00
$2,000,000.00
$1,500,000.00
$1,000,000.00
$500,000.00
$0.00
Year 1

Year 2
Revenue

Direct Costs

Year 3

Year 4

Operating Expenses

Year 5
Net Prot

The nancial highlights for Sample Plan 1 are shown in the chart above. The organization projects to have strong growth trends over the
course of the next ve years.

Startup Summary
Start-up Expenses
Payroll
Rent Deposits
Permits

$10,000
$5,000
$6,500

License
Web Development

$3,500
$25,000

Total Start-up Expenses

$50,000

Start-up Assets

$50,000

Working Capital
Inventory

$10,000
$12,500

Materials
Miscellaneous

$1,000
$1,500

Total Start-up Assets

$27,100

Total Requirements

$50,000

$25,000

$0

Total Requirements
Total Start-up Expenses
Total Start-up Assets

Startup Figures

Expenses

Assets

Investment

Current Loans

$50,000
$50,000
$100,000

Start-up Investments

IInvestment
Owner

$25,000

Investor
Total Planned Investment

$0
$25,000

Mission Statement
The mission of Sample Plan 1 is to provide a reliable online marketplace for consumers that offer quality products at a reasonable price
that drives prots for the parent company while adding value to our brand constituents.

Company Ownership
John Jones is the sole owner of Sample Plan 1. There are no other parties with the ability to claim an ownership stake in this venture.
It should however be noted that Mr. Jones is currently soliciting offers from investors or investment groups that share in his long-term
vision for prot and success.

Business Location
Sample Plan 1 will be located in San Diego, California with the ability to serve clients throughout the globe. Long-term plans are for
this to remain the base of operations due to the familiarity of the founder with the area and the reach that the Internet provides.

Products and Services

Sample Plan 1 will offer a security online marketplace for consumers looking to transact purchases for reduced cost items. The
organization will have a drop shipping approach which will greatly enhance the appeal and lower the overall overhead costs that are
incurred.

About the Founder

Mr. John Jones is the founder of Sample Plan 1. Mr. Jones is a seasoned business professional with the ability to develop strategies that
yield optimal nancial results. His background in architecture will be invaluable as he looks to meticulously create a business model
and approach that allow Sample Plan 1 to become recognized as a true market leader.

Industry at a Glance
Key Statistics
Snapshot

Revenue

Annual Growth 06-11

Annual Growth 11-16

$186.4bn

8.4%

9.4%

Prot

Wages

Business

$12.7bn

$7.8bn

50,973

Products and services

segmentation (2011)

5.5%
Office equipment
and supplies

4.5%
Food, beverages
and pet food

6.5%
Medication and
cosmetics

24.3%
Computers and TVs

7.2%
Furniture and
home appliances

13.8%
Sporting goods, toys,
hobby items and games

23.2%
Other merchandise

15%
Clothing, footware,
accessories and jewelry
SOURCE: WWW.IBISWORLD.COM

Every year, more than 100 million Americans purchase goods from
the online retail marketplace, one of the fastest-growing industries
in the United States. Since the start of the decade, revenue for
the E-Commerce and Online Auctions industry has grown at an
exceptional rate, outperforming most retail industries in the
country.

CDs, DVDs, books, clothing, footwear and groceries. Hard-to-nd

niche products or products that are no longer being produced
have also found homes online. As product ranges have grown, so
has the number of industry operators. The number of enterprises
has grown at an average annual rate of 2.4% in the ve years to
2011 to 50,973.

Despite the brief recession-induced slump in 2008 and 2009,

industry revenue is expected to increase at an average annual rate
of 8.4% in the ve years to 2011, including a 10.0% jump in 2011 to
bring revenue to $186.4 billion. Because of steady growth, industry
margins have also improved, increasing from about 5.0% in 2006
to an estimated 6.8% in 2011.

In the coming years, continued economic recovery will contribute

to the industrys strong growth. Increases in per capita income
and employment will improve consumer sentiment, increasing
consumers likelihood to buy. Also, broadband internet adoption
will grow in the next ve years, boosting online retailers
accessibility. IBISWorld forecasts that these factors will cause
industry revenue to grow at an average annual rate of 9.4% over
the ve years to 2016 to total $291.9 billion.

As online shopping becomes more popular, retailers are expanding

the products they carry to include common household goods like

Projected Industry Growth

In the 10 years to 2016, industry value added, which measures the

E-Commerce and Online Auctions industrys contribution to the
US economy, is expected to increase by an average annual rate of
11.0%, while US GDP is forecast to rise by an average annual rate
of 2.0% over this same period. This indicates that the industry is
in growth phase of its life cycle, as its growth rate outpaces GDP
over a 10-year period. Rising industry participation and new forms
of businesses also indicate a growing industry.
Over the ve years to 2011, the number of online retailers and
auction sites has increased at an average annual rate of 2.4% to
50,973 businesses. This growth in industry participation can be
attributed to an increase in e-commerce demand, mainly driven
by the rising prevalence of broadband connections and other
high-speed internet services. Such services have allowed more
consumers to surf the net and buy products without experiencing
any lag time; consequently, more consumers have been able to
make purchases online with added convenience. Furthermore, the
industrys low barriers to entry and skill requirements has allowed

for companies to enter the industry without much difficulties,

leading to higher participation. In the ve years to 2016, the
number of operators is expected to further rise with higher
demand for e-commerce websites. Total number of players is
forecast to increase by 2.4% annually to total 57,428 businesses.
In recent years, a relatively new form of e-commerce known
as social commerce has emerged within the industry. Unlike
traditional e-tailers, social commerce involves using social
media, online media that encourages online interaction and user
contribution, to assist in the online buying and selling of goods.
This subset of e-commerce retailers has gained wide acceptance
to consumers in the ve years to 2011, by providing engaging
content and discounted (or wholesale) prices through user
interaction (i.e. sharing information and purchasing as groups).
IBISWorld expects more form of social media or new e-commerce
businesses to arise in the next ve years to 2016, further
contributing to the growth stage designation of the industry.

Key External Drivers

Per capita disposable income
Disposable income is a deciding factor in determining the quantity
and quality of online purchases. Changes in income can occur because
of movements in wages, government benets, unemployment and
tax rates and returns on assets. This driver is expected to increase
over 2011, making it a potential opportunity for industry growth.
The E-Commerce and Online Auctions industry is sensitive to the
penetration rate of PCs. If the rate of computer ownership increases,
then a larger proportion of the population has access to e-tailers.
Additionally, increased computer and internet use will likely raise
condence, leading to greater computer activity and sales. This
driver is expected to increase over 2011.

% Change

3
2
1
0
-1
Year

05

07

09

11

13

15

17

During periods of low economic growth, consumer sentiment

declines; as a result, consumers limit their expenditure. This factor
subsequently affects demand for products online. This driver is
expected to rise over 2011, but because of high unemployment, it
remains a threat to industry growth. When more households have
access to broadband internet as opposed to dial-up, they are more
likely to make online purchases because of the speed gains derived
from a broadband connection. This driver is expected to increase
over 2011.

Percentage of households with at

least one computer
85
80
75
%
70
65
60
Year 03

05

07

09

11

13

15

17

Objectives
What follows is a listing of the core objectives for Sample Plan 1.

1. Develop a strong customer base. Developing a strong customer base will be the rst priority. To achieve this end the founder will
create an effective customer service model that adequately addresses all of the unique needs of the online consumer.

2. Create a broad marketplace. Having a broad marketplace with a variety of goods will be another of the core objectives. From
furniture to electronics to kitchen and fashion, the founder is intent on creating a marketplace that is as broad as the consumers taste.

3. Online security. As the online shopping industry has continued to grow, so too has the need for online security. With that being said
the founder will look to develop a secure environment that protects the consumer on all levels.

4. Drive prots. Driving prots will be the nal objective for Sample Plan 1 as the founder will look to grow the revenue and prot
streams exponentially over the course of the coming years.

10

SWOT Analysis
What follows is an analysis of the core strengths and weaknesses of the Sample Plan 1 business model as well as the opportunities and
threats that currently exist within the marketplace.

Strengths

Opportunities

1. Knowledge of the founder. Sample Plan 1 founder Mr. John

2. Low overhead costs. Sample Plan 1 will have extremely low

1. Increase in online activity among minorities. Minorities

are beginning to turn to the Internet for their shopping needs in
large quantities. Research conducted via IBISworld.com shows
that appealing to this segment of the market will be one of the
keys to success for companies like Sample Plan 1 that are looking
for long-term sustainability.

overhead costs due to the fact that the business will not carry
inventory or need office space to operate effectively.

Threats

3. Growth of the industry. The growth of the industry is

1. Larger competitors. Larger competitors such as Ebay.

another of the core strengths of the Sample Plan 1 business

model. With more and more shopping traffic going online, the
long-term prospects for Sample Plan 1 are nothing less than
promising.

com and Amazon.com pose a threat as they are already rmly

entrenched in the marketplace and have acquired a large share of
the online shopping market.

Jones is a seasoned business professional who is well attuned to

the e-commerce and Internet driven marketplace. His broad skill
set will be invaluable during all phases of business growth and
evolution.

Weaknesses
1. Lack of funding. Lack of funding is the primary weakness
for Sample Plan 1 as all of the other components of the business
model and approach are extremely sound.

Marketing
Sample Plan 1 will rely primarily on the Internet to drive the marketing efforts. Planned marketing efforts include the creation of a user
friendly website developed using all of the latest in design and online technologies. The website will also feature SEO (Search Engine
Optimization) which will allow it to rank higher with popular search engines including Yahoo.com and Google.com among others. Social
networking using Facebook.com and Twitter.com will round out the Sample Plan 1 marketing model and approach with each being used
extensively throughout the course of each calendar year.

119

Management Summary
Personnel Forecast
Year 1

Year 2

Year 3

Year 4

Year 5

Personnel Count
Founder
Operations
Total Personnel

1
2
3

1
2
3

1
2
3

1
2
3

1
2
3

Personnel Wage
Founder
Operations

$60,000
$78,000

$63,000
$81,900

$66,150
$85,995

$69,458
$90,295

$72,930
$94,809

Personnel Costs
Founder
Operations
Total Payroll

$60,000
$156,000
$216,000

$63,000
$163,800
$226,800

$66,150
$171,990
$238,140

$69,458
$180,590
$250,047

$72,930
$189,619
$262,549

The projected management and personnel summary for Sample Plan 1 is shown in the table above.

12

11

Financial Indicators
PersonnelIndicators
Financial
Forecast
ProtabilityCount
Personnel
%s:
Joseph
GrossSerrone
Margin
Brandon
Net Pro
Bueno
t Margin
Vickie
EBITDA
Bueno-Serrone
to Revenue
Total Personnel
Leverage Ratios:
Personnel
Debt to Wage
Equity
Joseph
Debt to
Serrone
Assets Ratio
Brandon
InterestBueno
Coverage Ratio
Vickie Bueno-Serrone
Liquidity Ratios:
Personnel
Current Costs
Ratio
Joseph
Current
Serrone
Debt to Total Assets Ratio
Brandon Bueno
Vickie Bueno-Serrone
Additional
Indicators:
Total
Revenue
Payrollto Equity Ratio

Year 1

Year 2

Year 3

Year 4

Year 5

192.50%
13.55%
1
26.91%
1
3

192.50%
116.63%
132.78%
3

192.50%
120.39%
138.13%
3

192.50%
123.82%
142.99%
3

92.50%
1
126.95%
147.41%
3

0.24
$11,196
17.88%
$11,196
3.59
$11,196

0.29
$11,756
21.63%
$11,756
4.65
$11,756

0.30
$12,344
22.37%
$12,344
5.75
$12,344

0.29
$12,961
21.82%
$12,961
6.90
$12,961

0.27
$13,609
20.71%
$13,609
8.09
$13,609

20.91
$11,196
4.58%
$11,196
$11,196
$33,588
2.41

31.74
$11,756
3.07%
$11,756
$11,756
$35,267
1.89

45.94
$12,344
2.14%
$12,344
$12,344
$37,031
1.51

64.12
$12,961
1.54%
$12,961
$12,961
$38,882
1.23

86.93
$13,609
1.14%
$13,609
$13,609
$40,826
1.02

Financial Indicators
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1

2
Gross Margin

3
Net Prot Margin

EBITDA to Revenue

The nancial indicators for Sample Plan 1 are shown in the table above and graph. The organization projects to have a favorable growth
in prot margin in each of the rst ve years of operations.

13

Revenue Forecast
PersonnelForecast
Revenue
Forecast
Units
Personnel
Count
Products
Joseph Serrone
Brandon
Total
Units
Bueno
Vickie Bueno-Serrone
TotalPrice
Unit
Personnel
Products
Personnel Wage
Revenue
Joseph Serrone
Brandon Bueno
Products
VickieRevenue
Total
Bueno-Serrone
Direct UnitCosts
Personnel
Cost
Products
Joseph Serrone
Brandon Bueno
Vickie Cost
Direct
Bueno-Serrone
of Revenue
Total Payroll
Products
Subtotal Cost of Revenue

Year 1

Year 2

Year 3

Year 4

Year 5

16,876
6,876
1
1
3
$175.00

17,908
1
7,908
1
3
$175.00

19,094
9,094
1
1
3
$175.00

110,458
10,458
1
1
3
$175.00

112,027
12,027
1
1
3
$175.00

$11,196
$1,203,335
$11,196
$1,203,335
$11,196

$11,756
$11,756
$1,383,835
$11,756
$1,383,835

$12,344
$12,344
$1,591,410
$12,344
$1,591,410

$12,961
$12,961
$1,830,122
$12,961
$1,830,122

$13,609
$13,609
$2,104,640
$13,609
$2,104,640

$11,196
$85.00
$11,196
$11,196
$33,588
$584,477
$584,477

$11,756
$85.00
$11,756
$11,756
$35,267
$672,148
$672,148

$12,344
$85.00
$12,344
$12,344
$37,031
$772,971
$772,971

$12,961
$85.00
$12,961
$12,961
$38,882
$888,916
$888,916

$13,609
$85.00
$13,609
$13,609
$40,826
$1,022,254
$1,022,254

Total Revenue
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0

Year 1

Year 2

Year 3

Year 4

Year 5

Total Revenue

The projected revenue forecast for Sample Plan 1 is shown in the chart and graph above. The organization projects to have strong revenue growth that is commensurate with research conducted via IBISworld.com.

14

Break-Even Analysis
Income Chart
$1,400,000
$1,200,000

Sales Revenue 100.0%

$1,000,000

Cost of Sales 48.6%

$800,000

Gross Prot 51.4%

$600,000

Fixed Expenses 2.4%

$400,000

Income Before Tax 35.0%

$200,000
$0

Break-even
Revenue

$1,400,000
$1,200,000

REVENUE

$1,000,000

FIXED COSTS
$800,000
$600,000
$400,000
$200,000
$0

10 11

12

Months
The projected break-even analysis for Sample Plan 1 is shown in the table above. The organization projects to have rst year average
monthly revenues of $100,278 with costs of $77,373.

15

Prot and Loss Statement

Personnel
Pro
FormaForecast
Prot and Loss
Revenue Count
Personnel
Total
Joseph
Cost
Serrone
of Revenue
Brandon Bueno
Vickie Margin
Gross
Bueno-Serrone
Total Personnel
Gross
Margin/Revenue

Year 1
$1,203,335
1$584,477
1
1$618,858
51.43%
3

Year 2
$1,383,835
1$672,148
1
1$711,687
51.43%
3

Year 3
$1,591,410
1$772,971
1
1$818,440
51.43%
3

Year 4
$1,830,122
$888,916
1
1
1$941,205
51.43%
3

Year 5
$2,104,640
$1,022,254
1
1
1$1,082,386
51.43%
3

Expenses Wage
Personnel
Supplies
Joseph Serrone
Brandon Bueno
Rent
Vickie Bueno-Serrone
Marketing
Insurance
Personnel Costs
Miscellaneous
Payroll
JosephTaxes
Serrone
Brandon
Total
Personnel
Bueno
VickieOp.
Total
Bueno-Serrone
Expenses
Total Payroll
Prot Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred

$18,000
$11,196
$11,196
$36,000
$26,400
$11,196
$2,400
$4,800
$32,400
$11,196
$11,196
$216,000
$336,000
$11,196
$33,588
$282,858
$282,858
$8,000
$83,401

$11,756
$18,900
$11,756
$37,800
$11,756
$27,720
$2,520
$5,040
$11,756
$34,020
$11,756
$226,800
$352,800
$11,756
$35,267
$358,887
$358,887
$8,000
$122,810

$12,344
$19,845
$12,344
$39,690
$12,344
$29,106
$2,646
$5,292
$12,344
$35,721
$12,344
$238,140
$12,344
$370,440
$37,031
$448,000
$448,000
$8,000
$154,000

$12,961
$20,837
$12,961
$41,675
$12,961
$30,561
$2,778
$5,557
$12,961
$37,507
$12,961
$250,047
$12,961
$388,962
$38,882
$552,243
$552,243
$8,000
$190,485

$13,609
$21,879
$13,609
$43,758
$13,609
$32,089
$2,917
$5,834
$13,609
$39,382
$13,609
$262,549
$13,609
$408,410
$40,826
$673,976
$673,976
$8,000
$233,092

Net Prot
Net Prot/Revenue

$191,457
15.91%

$228,076
16.48%

$286,000
17.97%

$353,758
19.33%

$432,885
20.57%

Year 1
17%
30%

Year 2
Total Cost of Revenue

53%

18%

Total Op. Expenses

28%

Year 3

54%

Net Prot

Total Op. Expenses

26%

22%

Total Cost of Revenue

54%

54%

23%
22%

Total Op. Expenses

Net Prot

Year 5

Total Op. Expenses

Net Prot

16

Total Cost of Revenue

Net Prot

Year 4

24%

20%

Total Cost of Revenue

Total Cost of Revenue

55%

Total Op. Expenses

Net Prot

Projected Cash Flow

Personnel
Pro
FormaForecast
Cash Flow
Year 1

Year 2

Year 3

Year 4

Year 5

Cash Received
Personnel
Count
Revenue
Joseph Serrone
Brandon
New
Current
Bueno
Borrowing
VickieLong-term
New
Bueno-Serrone
Liabilities
TotalofPersonnel
Sale
Other Current Assets
Sale of Long-term Assets
Personnel
New
Investment
Wage Received
Total
Joseph
Cash
Serrone
Received
Brandon Bueno
Vickie Bueno-Serrone
Expenditures
Operating Expenses & Direct Costs
Personnel
Current
Borrowing
Costs Repay.
L-T
Joseph
Liabilities
Serrone
Principal Repay.
Brandon Bueno
Purchase
Other Current Assets
Vickie Bueno-Serrone
Purchase
Long-term Assets
Total Payroll
Dividends
Total Expenditures

$1,203,335
1
1$0
1$0
3$0
$0
$0
$1,203,335
$11,196
$11,196
$11,196
$1,011,878
$0
$11,196
$11,817
$11,196
$11,196
$33,588
$1,023,695

1$1,383,835
1$0
1$0
3$0
$0
$0
$11,756
$1,383,835
$11,756
$11,756
$1,155,759
$0
$11,756
$11,817
$11,756
$0
$11,756
$0
$35,267
$0
$1,167,576

1$1,591,410
1$0
1$0
3$0
$0
$0
$12,344
$1,591,410
$12,344
$12,344
$1,305,411
$0
$12,344
$11,817
$12,344
$0
$12,344
$0
$37,031
$0
$1,317,228

1$1,830,122
1$0
1$0
3$0
$0
$0
$12,961
$1,830,122
$12,961
$12,961
$1,476,364
$0
$12,961
$11,817
$12,961
$0
$12,961
$0
$38,882
$0
$1,488,181

1$2,104,640
1$0
1$0
3$0
$0
$0
$13,609
$2,104,640
$13,609
$13,609
$1,671,755
$0
$13,609
$11,817
$13,609
$0
$13,609
$0
$40,826
$0
$1,683,572

Net Cash Flow

Cash Balance

$179,640
$204,640

$216,259
$420,899

$274,183
$695,082

$341,941
$1,037,023

$421,068
$1,458,091

Pro Forma Cash Flow

$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0

Year 1

Year 2
Total Cash Received

Year 3
Total Expenditures

Year 4

Year 5

Cash Balance

17

Projected Balance Sheet

Personnel
Pro
FormaForecast
Balance Sheet
Assets Count
Personnel
Current
Joseph Assets
Serrone
Brandon Bueno
Cash
Vickie Current
Other
Bueno-Serrone
Assets
Total Current
Personnel
Assets

Year 1

Year 2

Year 3

Year 4

Year 5

1
$204,640
1
1$0
$204,640
3

1
1$420,899
1$0
3$420,899

1
1$695,082
1$0
3$695,082

1
1$1,037,023
1$0
3$1,037,023

1
1$1,458,091
1$0
3$1,458,091

Long-termWage
Personnel
Assets
Long-term
Joseph Serrone
Assets
Brandon Bueno
Accumulated
Depreciation
VickieLong-term
Total
Bueno-Serrone
Assets
Total Assets
Personnel Costs
Liabilities
Joseph Serrone
and Capital
BrandonLiabilities
Current
Bueno
Vickie Bueno-Serrone
Current
Borrowing
Total Payroll
Other
Current Liabilities
Subtotal Current Liabilities

$11,196
$0
$11,196
$0
$11,196
$0
$204,640

$11,756
$0
$11,756
$0
$11,756
$0
$420,899

$12,344
$0
$12,344
$0
$12,344
$0
$695,082

$12,961
$0
$12,961
$0
$12,961
$0
$1,037,023

$13,609
$0
$13,609
$0
$13,609
$0
$1,458,091

$11,196
$11,196
$11,196
$100,000
$33,588
$0
$100,000

$11,756
$11,756
$11,756
$100,000
$35,267
$0
$100,000

$12,344
$12,344
$12,344
$100,000
$37,031
$0
$100,000

$12,961
$12,961
$12,961
$100,000
$38,882
$0
$100,000

$13,609
$13,609
$13,609
$100,000
$40,826
$0
$100,000

Long-term Liabilities
Total Liabilities

($11,817)
$88,183

($23,634)
$76,366

($35,451)
$64,549

($47,268)
$52,732

($59,085)
$40,915

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$25,000
($50,000)
$191,457
$166,457
$254,640

$25,000
$141,457
$228,076
$394,533
$470,899

$25,000
$369,533
$286,000
$680,533
$745,082

$25,000
$655,533
$353,758
$1,034,291
$1,087,023

$25,000
$1,009,291
$432,885
$1,467,176
$1,508,091

Net Worth

$116,457

$344,533

$630,533

$984,291

$1,417,176

Pro Forma Balance Sheet

$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0

Year 1

Year 2
Total Assets

18

Year 3
Total Liabilities

Year 4
Net Worth

Year 5

$5,000
$13,000
$18,000

Personnel Costs
Founder
Operations
Total Payroll

432
432

$175.00

$75,600
$75,600

$85.00

$36,720
$36,720

Units
Products
Total Units

Unit Price
Products

Revenue
Products
Total Revenue

Direct Unit Cost

Products

Direct Cost of Revenue

Products

Subtotal Cost of Revenue

Month 1

$5,000
$6,500

Personnel Wage
Founder
Operations

Year 1 Revenue Forecast

1
2
3

Personnel Count
Founder
Operations
Total Personnel

Month 1

Year 1 Personnel Forecast

19

$38,556

$38,556

$85.00

$79,380
$79,380

$175.00

454
454

Month 2

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 2

$40,484

$40,484

$85.00

$83,349
$83,349

$175.00

476
476

Month 3

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 3

$42,508

$42,508

$85.00

$87,516
$87,516

$175.00

500
500

Month 4

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 4

$44,633

$44,633

$85.00

$91,892
$91,892

$175.00

525
525

Month 5

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 5

$46,865

$46,865

$85.00

$96,487
$96,487

$175.00

551
551

Month 6

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 6

$49,208

$49,208

$85.00

$101,311
$101,311

$175.00

579
579

Month 7

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 7

$51,669

$51,669

$85.00

$106,377
$106,377

$175.00

608
608

Month 8

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 8

$54,252

$54,252

$85.00

$111,696
$111,696

$175.00

638
638

Month 9

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 9

$56,965

$56,965

$85.00

$117,280
$117,280

$175.00

670
670

Month 10

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 10

$59,813

$59,813

$85.00

$123,144
$123,144

$175.00

704
704

Month 11

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 11

$62,804

$62,804

$85.00

$129,302
$129,302

$175.00

739
739

Month 12

$5,000
$13,000
$18,000

$5,000
$6,500

1
2
3

Month 12

Month 1
$75,600
$36,720
$38,880
51.43%

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000
$10,880
$10,880
$667
$0
$10,213
13.51%

Revenue
Total Cost of Revenue

Gross Margin
Gross Margin/Revenue

Expenses
Supplies
Rent
Marketing
Insurance
Miscellaneous
Payroll Taxes
Total Personnel
Total Op. Expenses

Prot Before Int. and Tax

EBITDA
Interest Expense
Taxes Incurred

Net Prot
Net Prot/Revenue

Year 1 Prot & Loss

20
$12,157
15.32%

$12,824
$12,824
$667
$0

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$40,824
51.43%

Month 2
$79,380
$38,556

$14,199
17.04%

$14,865
$14,865
$667
$0

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$42,865
51.43%

Month 3
$83,349
$40,484

$10,622
12.14%

$17,008
$17,008
$667
$5,720

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$45,008
51.43%

Month 4
$87,516
$42,508

$12,085
13.15%

$19,259
$19,259
$667
$6,507

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$47,259
51.43%

Month 5
$91,892
$44,633

$13,621
14.12%

$21,622
$21,622
$667
$7,334

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$49,622
51.43%

Month 6
$96,487
$46,865

$15,234
15.04%

$24,103
$24,103
$667
$8,203

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$52,103
51.43%

Month 7
$101,311
$49,208

$16,927
15.91%

$26,708
$26,708
$667
$9,114

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$54,708
51.43%

Month 8
$106,377
$51,669

$18,705
16.75%

$29,443
$29,443
$667
$10,072

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$57,443
51.43%

Month 9
$111,696
$54,252

$20,572
17.54%

$32,316
$32,316
$667
$11,077

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$60,316
51.43%

Month 10
$117,280
$56,965

$22,532
18.30%

$35,331
$35,331
$667
$12,133

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$63,331
51.43%

Month 11
$123,144
$59,813

$24,590
19.02%

$38,498
$38,498
$667
$13,241

$1,500
$3,000
$2,200
$200
$400
$2,700
$18,000
$28,000

$66,498
51.43%

Month 12
$129,302
$62,804

$0
$0
$0
$34,229

Long-term Assets
Accum. Depreciation
Total Long-term Assets
Total Assets

$100,000
$0
$100,000
($985)
$99,015
$25,000
($50,000)
$10,213
($14,787)
$84,229
($64,787)

Current Borrowing
Other Current Liabilities

Subtotal Current Liabilities

Long-term Liabilities
Total Liabilities

Paid-in Capital

Retained Earnings
Current Retained Earnings

Total Capital
Total Liabilities and Capital

Net Worth

Current Liabilities

$34,229
$0
$34,229

Month 1

Current Assets
Cash
Other Current Assets
Total Current Assets

Year 1 Balance Sheet

21

($52,629)

($2,629)
$95,401

($50,000)
$22,371

$25,000

($1,969)
$98,031

$100,000

$100,000
$0

$0
$0
$0
$45,401

$45,401
$0
$45,401

Month 2

($38,431)

$11,569
$108,615

($50,000)
$36,569

$25,000

($2,954)
$97,046

$100,000

$100,000
$0

$0
$0
$0
$58,615

$58,615
$0
$58,615

Month 3

($27,809)

$22,191
$118,252

($50,000)
$47,191

$25,000

($3,939)
$96,061

$100,000

$100,000
$0

$0
$0
$0
$68,252

$68,252
$0
$68,252

Month 4

($15,724)

$34,276
$129,353

($50,000)
$59,276

$25,000

($4,924)
$95,076

$100,000

$100,000
$0

$0
$0
$0
$79,353

$79,353
$0
$79,353

Month 5

($2,103)

$47,897
$141,989

($50,000)
$72,897

$25,000

($5,908)
$94,092

$100,000

$100,000
$0

$0
$0
$0
$91,989

$91,989
$0
$91,989

Month 6

$13,131

$63,131
$156,238

($50,000)
$88,131

$25,000

($6,893)
$93,107

$100,000

$100,000
$0

$0
$0
$0
$106,238

$106,238
$0
$106,238

Month 7

$30,058

$80,058
$172,180

($50,000)
$105,058

$25,000

($7,878)
$92,122

$100,000

$100,000
$0

$0
$0
$0
$122,180

$122,180
$0
$122,180

Month 8

$48,763

$98,763
$189,900

($50,000)
$123,763

$25,000

($8,863)
$91,137

$100,000

$100,000
$0

$0
$0
$0
$139,900

$139,900
$0
$139,900

Month 9

$69,334

$119,334
$209,487

($50,000)
$144,334

$25,000

($9,847)
$90,153

$100,000

$100,000
$0

$0
$0
$0
$159,487

$159,487
$0
$159,487

Month 10

$91,866

$141,866
$231,034

($50,000)
$166,866

$25,000

($10,832)
$89,168

$100,000

$100,000
$0

$0
$0
$0
$181,034

$181,034
$0
$181,034

Month 11

$116,457

$166,457
$254,640

($50,000)
$191,457

$25,000

($11,817)
$88,183

$100,000

$100,000
$0

$0
$0
$0
$204,640

$204,640
$0
$204,640

Month 12