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Confidentiality Agreement
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business plan is confidential; therefore, reader agrees not to disclose it without the express written
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confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
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Upon request, this document is to be immediately returned to _______________.
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___________________
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___________________
Date
Table of Contents
Table of Contents
Page 2
To get Gollic University Advanced Computer Repair started the university is providing cash and
assets. Our conservative sales forecasts, based on industry research within the local area,
project hefty sales in year one, steadily increasing through year three. To reach these goals, we
will use an aggressive advertising campaign to exploit our competitors' weaknesses. With good
cost control, we will see a modest, yet comfortable, net profit the first year.
1.1 Objectives
1. To provide the best service available to the community at an affordable price.
2. To generate substantial market share so that Gollic University Advanced Computer Repair is
a common name.
3. Constant growth in sales from start up through year three.
4. To generate customer satisfaction so that at least 40% of our customer base is repeat
business.
Page 1
Chart: Highlights
1.2 Mission
Our goal is to set the standard for on-site computer solutions through fast, on-site service and
response. Our customers will always receive one-on-one personal attention at a very affordable
price. Our customers will receive the highest quality of customer service available. Our
employees will receive extensive training, a great place to work, fair pay and benefits, and
incentives to use their own good judgment to solve customers' problems.
1.3 Keys to Success
Page 2
Start-up
Requirements
Start-up Expenses
Business Cards
Uniforms
CPA
Advertisement
Total Start-up Expenses
$100
$300
$275
$1,200
$3,025
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$28,000
$1,200
$10,000
$0
$39,200
Total Requirements
$42,225
3.0 Services
Gollic University Advanced Computer Repair will offer computer repairs, training, networking
and upgrade service to clients in two major categories: home PC users and small business
users. As Gollic University Advanced Computer Repair and the client demands grow, we will
offer software development to our business clients.
Page 3
From the very first day, we will offer on-site repair and consulting services, so that our clients
don't need to take time out of their busy days to haul a computer in to our workshop. This is
the single biggest frustration anwar kade has seen among small business owners needing
computer help. Much of our diagnostic equipment is portable, and we will bring a PC to our
workshop only when the problem requires more detailed diagnosis or repair. We will also offer
free pick-up and delivery of PCs needing repair. To meet the growing demand for this service,
we will purchase a company vehicle in the fifth month.
We will also offer extended maintenance contracts, so that business clients can deal with
technical support and repair needs as a single line-item expense, rather than having to plan for
unexpected crashes and problems with a rainy-day fund they may never use. Maintenance
contracts yield a high gross margin for us, and provide peace of mind for the customer.
We will offer limited software support (installation and compatibility issues), and focus on
hardware and networking support - this is a vital distinction, since software is evolving much
more rapidly than hardware, and our clients will have such diverse software needs that we
couldn't possibly keep up with all of them. We will encourage clients to register their software
and use the software's own support options to their full potential. We will, however, keep up to
date with multiple operating systems and networking developments, working with clients to
make sure they have the most appropriate combinations of hardware, OS, networking, backup
systems, and software. Backup and security are becoming higher priorities for all our potential
customers, as internet usage (and its pitfalls) becomes more common, and as more and more
daily records are stored electronically.
4.0 Market Analysis Summary
Gollic University Advanced Computer Repair will provide computer support in both a consulting
and technical capacity to small business owners as well as home PC users. Since Gollic
University Advanced Computer Repair is currently a one man operation, its growth in the first
three months will be limited by the owner's capacity to complete work. However, these first
three months are critical for establishing our credibility and a reputation for getting the job
done quickly and well. We will focus on delivering excellent service, and using the good word of
mouth from this initial period to network with other potential clients.
Personal market research by the owner indicates an attractive market niche for our services, of
which Gollic University Advanced Computer Repair will take full advantage. The very nature of
the computing industry, with its extraordinary rate of technological development, creates a
constant need for businesses skilled in updating and advising customers on computer-related
issues.
National chains, such as "Geeks on Call," have seen rapid growth in demand for these services
in the last few years. Customers are seeking skilled help with everything from installation of
software and hardware components, to networking, to transferring files from an old computer
to a new one. Those who can often enlist their tech-savvy children's help, but others are not so
fortunate, and small-business owners need reliable and quick help with all their computer
needs, since every hour down may mean an hour or more of lost revenue, especially for any
business with a website or those doing e-commerce.
Page 4
Market Analysis
Potential Customers
Growth
Home PC Users
Small Business Users
Other
Total
7%
2%
0%
5.39%
Year 1
Year 2
Year 3
Year 4
Year 5
25,000
10,000
0
35,000
26,750
10,100
0
36,850
28,623
10,201
0
38,824
30,626
10,303
0
40,929
32,770
10,406
0
43,176
CAGR
7.00%
1.00%
0.00%
5.39%
Page 5
Page 6
Page 7
Both of these companies charge rates in excess of Gollic University Advanced Computer Repair;
we will be able to attract the price-sensitive market without much work.
5.0 Strategy and Implementation Summary
Our Strategy and Implementation turn on three points:
1. A value proposition of timely and practical solutions, at a reasonable rate, coupled with a
100% guarantee.
2. Exploiting our competitors weaknesses: a competitive edge based on quick, effective, and
sympathetic customer service, which meets the customer where his needs are, rather than
trying to fit him into an existing box.
3. Quickly establishing a brand identity and developing a great reputation among local
customers to generate word of mouth advertising.
5.1 Competitive Edge
Quick response: Gollic University Advanced Computer Repair will provide same day and
after hours service.
A flat rate policy: This undermines the competition, who charge by the hour. The pricing
has been set to reflect the average amount of time it takes to perform the task. With this
strategy we can undercut most competitors and gain local market power.
On-site and pick-up/drop-off services: This will minimize the time and effort a customer
needs to put into dealing with his computer problem.
Suprisingly, our small size is an advantage: customers will recognize me (and future
employees), and will know they will get the same great service every time they call.
Page 8
We will offer a promotion during the first 90 days of business to generate business traffic and
word of mouth. Our promo is Spyware removal on any desktop PC for $70 including tax and
software. Spyware is a huge problem for a lot of residential and small business customers, and
the offer should draw a lot of interest.
5.3 Sales Strategy
Our marketing strategy will generate customer inquiries. We will close the deals by offering an
outstanding service and a very reasonable price. Happy customers generate repeat business
and word of mouth. Our toll free number is operational 24 hours a day, seven days a week, and
from 8am to 9pm, I will be available to answer calls. At other times, or when I am on the
phone, an answering service we have hired will catch callers and give them an estimated wait
time for a call-back; this is another step towards delivering a complete solution to our
5.3.1 Sales Forecast
The sales strategy is a prediction of controllable growth for the first year. Gollic University
Advanced Computer Repair will focus on quality and attention to detail to avoid some potential
pitfalls encountered by many new businesses. The predicted growth is moderate in the home PC
market and in the small business arena. However, with aggressive advertising and word of
mouth, this will increase. Our agressive TV advertising will increase our residential and small
business customer base as well as word of mouth within the first year. Within a few months we
will have the need for additional employees to handle the work load. At that time, we will move
into a leased space with additional square footage, and buy a company vehicle to help with the
on-site calls.
Our competitors average 75+ calls a month. Given that our advertising will be aggressive, we
expect the same results. The sales forecast is conservative, which gives us a chance to gauge
our experience and adjust the plan accordingly.
We will service all of Ramsford-on-Bitstream, and the surrounding area. We expect that the
majority of our jobs will be performed in the immediate town area. A service technician can
perform an average of 3 jobs per day. Our sales forecast predictions are less than that. With
our agressive advertising campaign we expect nominal growth. We predict it will take a few
weeks for the marketing to settle in with customers. However, we are going to offer a promo for
our services which should generate some substantial results.
The one element of sales not represented in the table below is direct costs for our maintenance
contracts. We estimate these costs at 12% of sales revenue, but expect a delayed occurrence that is, we will sell maintenance contracts starting in February, but do not expect to actually
perform maintenance on computers guaranteed under them for the first few months. We will
incur more and more costs from these as time goes on, and the computers age - most of the
service in a maintenance contract is performed within the last quarter of the specified period.
Projections for the direct costs for these contracts can be found in the Profit and Loss Table, as
other costs of sales.
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Unit Sales
Page 9
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
Total Unit Sales
166
264
235
32
697
200
300
0
60
560
225
350
0
85
660
Unit Prices
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
Year 1
$280.00
$500.00
$50.00
$400.00
Year 2
$300.00
$600.00
$0.00
$600.00
Year 3
$300.00
$600.00
$0.00
$600.00
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
Total Sales
$46,480
$132,000
$11,750
$12,800
$203,030
$60,000
$180,000
$0
$36,000
$276,000
$67,500
$210,000
$0
$51,000
$328,500
Year 1
$84.00
$105.00
$4.00
$0.00
Year 2
$90.00
$126.00
$0.00
$0.00
Year 3
$90.00
$126.00
$0.00
$0.00
$13,944
$27,720
$940
$0
$42,604
$18,000
$37,800
$0
$0
$55,800
$20,250
$44,100
$0
$0
$64,350
Sales
Page 10
Page 11
5.4 Milestones
Our milestones, listed in the table below, outline the major events that will promote, as well as
insure the success of Gollic University Advanced Computer Repair and keep it a going concern
well into the future. We will measure our success in meeting these milestones every month, and
adjust the plan to keep up with our objectives. Name recognition, in particular, is very
important to breaking into this market - we will conduct a survey by calling 200 randomly
selected small businesses from the Chamber of Commerce listings on the specified dates and
asking them whether they have heard of Gollic University Advanced Computer Repair, and if so,
what their impression is of our service. If any of the respondents have actually used our
services, we will elicit feedback on their experience with us, and suggestions for improvement.
We will also ask if they would recommend us to a colleague.
Table: Milestones
Milestones
Milestone
Procurement of materials for
opening
Start-up Ad Campaign
Get Loan Approved
Open Business
Name Recognition by 5% of
potential market
Meet with Leasing Agent
Interview potential Techs
Move into Leased Space
Sign on Leased Vehicle
Targeted Ads Begin
1st Tech Starts
2nd Round Tech Interviews
Direct marketing to Small
Businesses
Increase Name Recognition to
20%
2nd Tech Starts
Totals
Start Date
12/1/2004
End Date
2/1/2005
Budget
$1,200
Manager
JMH
Department
Department
12/15/2004
1/1/2005
2/7/2005
2/28/2005
2/6/2005
1/17/2005
2/8/2005
2/28/2005
$1,200
$0
$0
$0
JMH
JMH
JMH
JMH
Department
Department
Department
Department
3/1/2005
3/1/2005
4/1/2005
4/15/2005
4/15/2005
5/1/2005
7/1/2005
7/1/2005
3/10/2005
4/25/2005
4/10/2005
4/20/2005
5/15/2005
5/1/2005
7/31/2005
9/30/2005
$0
$0
$2,000
$6,000
$4,000
$0
$0
$8,000
JMH
JMH
JMH
JMH
JMH
JMH
JMH
JMH
Department
Department
Department
Department
Department
Department
Department
Department
8/1/2005
8/2/2005
$0
JMH
Department
8/1/2005
8/7/2005
$0
$22,400
JMH
Department
Page 12
Chart: Milestones
Page 13
Within this framework, the techs can solve the customer's problem the best way they see fit Jack is not a micro manager.
6.1 Personnel Plan
Jack Hacker will be the only employee for the first few months; his salary is directly related to
the success of the business, and will never exceed 18% of sales revenue. In the third month,
we will move to a leased office space and hire a second employee, with a third hire planned for
August, if projections are on target. We plan to hire additional part-time employees in the
second year, to better handle the increasing sales.
Our employees will be skilled professionals, with equally strong technical and people skills. It is
very important to Jack that they be paid salaries commensurate with their abilities and
dedication- happy tech support people make for happy customers. To that end, our full-time
employees will receive health benefits (premiums split between the employee and Gollic
University Advanced Computer Repair), paid holidays, and sick time. Those benefits are
included in the payroll totals listed below.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Owner
Tech1
Tech2
Part Time
Total People
$33,000
$21,600
$14,400
$0
3
$38,000
$30,000
$30,000
$12,000
5
$40,000
$30,000
$30,000
$15,000
5
Total Payroll
$69,000
$110,000
$115,000
General Assumptions
Page 14
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
7.00%
10.00%
30.00%
0
2
70.00%
10.00%
30.00%
0
3
70.00%
10.00%
30.00%
0
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
52
$15,110
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$291.29
$70.00
$11,479
Page 15
Page 16
Year 2
Year 3
Sales
Direct Cost of Sales
Costs of Fulfilling Maintenance Contracts
Total Cost of Sales
$203,030
$42,604
$1,488
$44,092
$276,000
$55,800
$4,320
$60,120
$328,500
$64,350
$6,120
$70,470
Gross Margin
Gross Margin %
$158,938
78.28%
$215,880
78.22%
$258,030
78.55%
$69,000
$28,000
$0
$10,000
$0
$3,150
$2,080
$200
$2,660
$13,200
$1,260
$5,000
$1,200
$2,000
$110,000
$6,000
$0
$12,000
$10,000
$1,200
$480
$2,400
$5,400
$15,000
$1,260
$6,000
$1,200
$0
$115,000
$12,000
$0
$12,000
$12,000
$1,200
$480
$2,400
$5,400
$17,000
$1,260
$7,000
$1,200
$0
$137,750
$170,940
$186,940
$21,188
$21,188
$1,097
$6,027
$44,940
$44,940
$6,570
$11,511
$71,090
$71,090
$2,139
$20,685
Net Profit
Net Profit/Sales
$14,064
6.93%
$26,859
9.73%
$48,266
14.69%
Expenses
Payroll
Marketing/Promotion
Depreciation
Lease
Expensed Equipment
Insurance
Website
Answering Service
Mileage
Vehicles
Cell Phones
Utilities
Internet
Moving Expenses
Total Operating Expenses
Page 17
Page 18
Chart: Cash
Page 19
Year 2
Year 3
$203,030
$203,030
$276,000
$276,000
$328,500
$328,500
$0
$0
$0
$0
$0
$0
$0
$203,030
$0
$0
$0
$0
$0
$0
$0
$276,000
$0
$0
$0
$0
$0
$0
$0
$328,500
Year 1
Year 2
Year 3
$69,000
$110,873
$179,873
$110,000
$142,543
$252,543
$115,000
$163,375
$278,375
$0
$6,564
$0
$0
$0
$0
$0
$186,437
$0
$6,550
$0
$0
$0
$0
$0
$259,093
$0
$6,111
$0
$0
$0
$0
$0
$284,486
$16,593
$44,593
$16,907
$61,500
$44,014
$105,514
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Page 20
Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
35.94%
19.02%
5.23%
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
8.22%
16.81%
100.00%
0.00%
100.00%
9.07%
12.72%
100.00%
0.00%
100.00%
5.90%
8.15%
100.00%
0.00%
100.00%
2.79%
51.19%
75.09%
24.91%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
42.77%
0.00%
42.77%
57.23%
22.55%
0.00%
22.55%
77.45%
11.07%
0.00%
11.07%
88.93%
31.75%
18.48%
50.23%
49.77%
100.00%
78.28%
38.70%
0.00%
10.44%
100.00%
78.22%
65.72%
0.00%
16.28%
100.00%
78.55%
64.96%
0.00%
21.64%
100.00%
100.00%
80.06%
1.23%
1.95%
2.34
2.15
42.77%
59.02%
33.78%
4.43
4.03
22.55%
63.01%
48.80%
9.03
8.50
11.07%
63.16%
56.17%
1.53
1.24
57.27%
2.73%
6.39%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Year 1
Year 2
Year 3
6.93%
41.32%
9.73%
44.10%
14.69%
44.21%
n.a
n.a
10.25
9.67
27
3.41
9.29
12.17
32
3.51
8.96
12.17
28
2.68
n.a
n.a
n.a
n.a
0.75
1.00
0.29
1.00
0.12
1.00
n.a
n.a
$34,039
19.32
$60,898
6.84
$109,163
33.24
n.a
n.a
0.29
43%
2.15
5.96
0.00
0.28
23%
4.03
4.53
0.00
0.37
11%
8.50
3.01
0.00
n.a
n.a
n.a
n.a
n.a
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 21
Year 2
Year 3
$44,593
$4,890
$10,000
$59,482
$61,500
$7,129
$10,000
$78,629
$105,514
$7,239
$10,000
$122,753
$0
$0
$0
$59,482
$0
$0
$0
$78,629
$0
$0
$0
$122,753
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$12,783
$12,661
$0
$25,444
$11,620
$6,111
$0
$17,731
$13,590
$0
$0
$13,590
Long-term Liabilities
Total Liabilities
$0
$25,444
$0
$17,731
$0
$13,590
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$23,000
($3,025)
$14,064
$34,039
$59,482
$23,000
$11,039
$26,859
$60,898
$78,629
$23,000
$37,898
$48,266
$109,163
$122,753
Net Worth
$34,039
$60,898
$109,163
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Page 22
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
Home PC Unit
15
18
20
20
20
17
15
10
20
10
25
35
40
45
50
15
10
25
Promo
10
30
40
40
40
40
35
Maintenance Contracts
17
57
86
58
103
109
111
33
24
84
Unit Sales
Unit Prices
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Home PC Unit
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$280.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$400.00
$840
$1,400
$840
$4,200
$5,040
$5,600
$5,600
$5,600
$4,760
$4,200
$2,800
$5,600
$1,500
$1,500
$1,500
$5,000
$12,500
$17,500
$20,000
$22,500
$25,000
$7,500
$5,000
$12,500
$1,750
Promo
Maintenance Contracts
Sales
Home PC Unit
Small Business Unit
Promo
$0
$0
$500
$1,500
$2,000
$0
$2,000
$2,000
$2,000
$0
$0
Maintenance Contracts
$0
$400
$400
$800
$1,200
$1,200
$1,200
$1,600
$1,600
$1,200
$1,600
$1,600
$2,340
$3,300
$3,240
$11,500
$20,740
$24,300
$28,800
$31,700
$33,360
$12,900
$9,400
$21,450
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
$84.00
$105.00
$4.00
$0.00
Home PC Unit
$252
$420
$252
$1,260
$1,512
$1,680
$1,680
$1,680
$1,428
$1,260
$840
$1,680
$315
$315
$315
$1,050
$2,625
$3,675
$4,200
$4,725
$5,250
$1,575
$1,050
$2,625
Promo
$0
$0
$40
$120
$160
$0
$160
$160
$160
$0
$0
$140
Maintenance Contracts
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$567
$735
$607
$2,430
$4,297
$5,355
$6,040
$6,565
$6,838
$2,835
$1,890
$4,445
Total Sales
Direct Unit Costs
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
30.00%
21.00%
8.00%
12.00%
Page 1
Appendix
Table: Personnel
Personnel Plan
Owner
Tech1
Tech2
Part Time
Total People
Total Payroll
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
$2,000
$0
$0
$0
1
$2,000
$0
$0
$0
1
$2,500
$0
$0
$0
1
$2,500
$2,400
$0
$0
2
$3,000
$2,400
$0
$0
2
$3,000
$2,400
$0
$0
2
$3,000
$2,400
$2,400
$0
3
$3,000
$2,400
$2,400
$0
3
$3,000
$2,400
$2,400
$0
3
$3,000
$2,400
$2,400
$0
3
$3,000
$2,400
$2,400
$0
3
$3,000
$2,400
$2,400
$0
3
$2,000
$2,000
$2,500
$4,900
$5,400
$5,400
$7,800
$7,800
$7,800
$7,800
$7,800
$7,800
Page 2
Appendix
Table: General Assumptions
General Assumptions
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
12
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
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%
Plan Month
Current Interest Rate
Other
Month 12
Page 3
Appendix
Table: 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
$2,340
$3,300
$3,240
$11,500
$20,740
$24,300
$28,800
$31,700
$33,360
$12,900
$9,400
$21,450
$567
$735
$607
$2,430
$4,297
$5,355
$6,040
$6,565
$6,838
$2,835
$1,890
$4,445
$0
$0
$48
$96
$144
$144
$144
$192
$192
$144
$192
$192
$567
$735
$655
$2,526
$4,441
$5,499
$6,184
$6,757
$7,030
$2,979
$2,082
$4,637
Gross Margin
$1,773
$2,565
$2,585
$8,974
$16,299
$18,801
$22,616
$24,943
$26,330
$9,921
$7,318
$16,813
Gross Margin %
75.77%
77.73%
79.78%
78.03%
78.59%
77.37%
78.53%
78.68%
78.93%
76.91%
77.85%
78.38%
Payroll
$2,000
$2,000
$2,500
$4,900
$5,400
$5,400
$7,800
$7,800
$7,800
$7,800
$7,800
$7,800
Marketing/Promotion
$4,000
$1,000
$3,000
$2,000
$2,000
$3,000
$3,000
$2,000
$2,000
$2,000
$2,000
$2,000
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Lease
$0
$0
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Expenses
Expensed Equipment
Insurance
Website
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150
$0
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$200
$40
$40
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Mileage
$80
$85
$95
$100
$200
$300
$300
$300
$300
$300
$300
$300
Vehicles
$0
$0
$6,000
$800
$800
$800
$800
$800
$800
$800
$800
$800
Cell Phones
$0
$60
$120
$120
$120
$120
$120
$120
$120
$120
$120
$120
Utilities
$0
$0
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$0
$0
$0
$0
$120
$2,000
$120
$0
$120
$0
$120
$0
$120
$0
$120
$0
$120
$0
$120
$0
$120
$0
$120
$0
$6,470
$3,185
$15,835
$10,040
$10,640
$11,740
$14,140
$13,140
$13,140
$13,140
$13,140
$13,140
($4,697)
($620)
($13,250)
($1,066)
$5,659
$7,061
$8,476
$11,803
$13,190
($3,219)
($5,822)
$3,673
EBITDA
($4,697)
($620)
($13,250)
($1,066)
$5,659
$7,061
$8,476
$11,803
$13,190
($3,219)
($5,822)
$3,673
$109
$106
$103
$99
$96
$93
$90
$87
$83
$80
$77
$74
($1,442)
($218)
($4,006)
($350)
$1,669
$2,090
$2,516
$3,515
$3,932
($990)
($1,770)
$1,080
($3,364)
($508)
($9,347)
($816)
$3,894
$4,878
$5,870
$8,201
$9,175
($2,309)
($4,129)
$2,519
-143.77%
-15.39%
-288.48%
-7.09%
18.78%
20.07%
20.38%
25.87%
27.50%
-17.90%
-43.93%
11.75%
Answering Service
Internet
Moving Expenses
Total Operating Expenses
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Page 4
Appendix
Table: Cash Flow
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Sales
$2,340
$3,300
$3,240
$11,500
$20,740
$24,300
$28,800
$31,700
$33,360
$12,900
$9,400
$21,450
$2,340
$3,300
$3,240
$11,500
$20,740
$24,300
$28,800
$31,700
$33,360
$12,900
$9,400
$21,450
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,340
$3,300
$3,240
$11,500
$20,740
$24,300
$28,800
$31,700
$33,360
$12,900
$9,400
$21,450
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
$2,000
$2,000
$2,500
$4,900
$5,400
$5,400
$7,800
$7,800
$7,800
$7,800
$7,800
$7,800
$105
$3,102
$2,353
$10,424
$8,954
$13,556
$15,209
$15,896
$16,290
$16,282
$4,550
$4,152
$2,105
$5,102
$4,853
$15,324
$14,354
$18,956
$23,009
$23,696
$24,090
$24,082
$12,350
$11,952
Cash Received
Cash from Operations
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$547
$547
$547
$547
$547
$547
$547
$547
$547
$547
$547
$547
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$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
$2,652
$5,649
$5,400
$15,871
$14,901
$19,503
$23,556
$24,243
$24,637
$24,629
$12,897
$12,499
($312)
($2,349)
($2,160)
($4,371)
$5,839
$4,797
$5,244
$7,457
$8,723
($11,729)
($3,497)
$8,951
Cash Balance
$27,688
$25,340
$23,179
$18,809
$24,647
$29,444
$34,688
$42,145
$50,868
$39,139
$35,642
$44,593
Page 5
Appendix
Table: Balance Sheet
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$28,000
$1,200
$10,000
$39,200
$27,688
$633
$10,000
$38,321
$25,340
$898
$10,000
$36,238
$23,179
$1,291
$10,000
$34,470
$18,809
$2,673
$10,000
$31,482
$24,647
$4,727
$10,000
$39,374
$29,444
$5,891
$10,000
$45,335
$34,688
$6,644
$10,000
$51,332
$42,145
$7,222
$10,000
$59,366
$50,868
$7,522
$10,000
$68,390
$39,139
$4,687
$10,000
$53,826
$35,642
$2,797
$10,000
$48,439
$44,593
$4,890
$10,000
$59,482
$0
$0
$0
$39,200
$0
$0
$0
$38,321
$0
$0
$0
$36,238
$0
$0
$0
$34,470
$0
$0
$0
$31,482
$0
$0
$0
$39,374
$0
$0
$0
$45,335
$0
$0
$0
$51,332
$0
$0
$0
$59,366
$0
$0
$0
$68,390
$0
$0
$0
$53,826
$0
$0
$0
$48,439
$0
$0
$0
$59,482
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$3,033
$2,004
$10,130
$8,505
$13,050
$14,680
$15,354
Starting Balances
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
$0
$16,130
$4,422
$3,711
$12,783
$14,302
$0
$30,432
$13,755
$0
$18,177
$13,208
$0
$16,919
$12,661
$0
$25,444
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$19,225
$0
$19,225
$18,678
$0
$21,711
$18,131
$0
$20,135
$17,584
$0
$27,714
$17,037
$0
$25,542
$16,490
$0
$29,540
$15,943
$0
$30,623
$15,396
$0
$30,750
$15,733
$14,849
$0
$30,582
Long-term Liabilities
Total Liabilities
$0
$19,225
$0
$21,711
$0
$20,135
$0
$27,714
$0
$25,542
$0
$29,540
$0
$30,623
$0
$30,750
$0
$30,582
$0
$30,432
$0
$18,177
$0
$16,919
$0
$25,444
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$23,000
($3,025)
$0
$19,975
$39,200
$23,000
($3,025)
($3,364)
$16,611
$38,321
$23,000
($3,025)
($3,872)
$16,103
$36,238
$23,000
($3,025)
($13,219)
$6,756
$34,470
$23,000
($3,025)
($14,035)
$5,940
$31,482
$23,000
($3,025)
($10,141)
$9,834
$39,374
$23,000
($3,025)
($5,263)
$14,712
$45,335
$23,000
($3,025)
$607
$20,582
$51,332
$23,000
($3,025)
$8,809
$28,784
$59,366
$23,000
($3,025)
$17,983
$37,958
$68,390
$23,000
($3,025)
$15,674
$35,649
$53,826
$23,000
($3,025)
$11,544
$31,519
$48,439
$23,000
($3,025)
$14,064
$34,039
$59,482
Net Worth
$19,975
$16,611
$16,103
$6,756
$5,940
$9,834
$14,712
$20,582
$28,784
$37,958
$35,649
$31,519
$34,039
Page 6