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Table of Contents
1.0 Executive Summary.............................................................................................................................1
Chart: Highlights ......................................................................................................................1
1.1 Mission........................................................................................................................................1
1.2 Objectives ...................................................................................................................................1
1.3 Keys to Success ........................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................2
2.2 Start-up Summary ......................................................................................................................2
Table: Start-up Funding ..........................................................................................................3
Table: Start-up .........................................................................................................................4
Chart: Start-up .........................................................................................................................4
3.0 Services................................................................................................................................................4
4.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation ................................................................................................................5
Chart: Market Analysis (Pie) ..................................................................................................5
Table: Market Analysis ...........................................................................................................6
4.2 Market Needs .............................................................................................................................6
4.3 Target Market Segment Strategy.............................................................................................6
4.4 Service Business Analysis........................................................................................................6
4.5 Competition and Buying Patterns ............................................................................................6
5.0 Strategy and Implementation Summary ............................................................................................7
5.1 Competitive Edge ......................................................................................................................7
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast ..............................................................................................................8
Chart: Sales Monthly......................................................................................................8
Table: Sales Forecast ...................................................................................................8
6.0 Management Summary.......................................................................................................................9
Table: Personnel .....................................................................................................................9
7.0 Financial Plan ......................................................................................................................................9
7.1 Important Assumptions............................................................................................................10
Table: General Assumptions ...............................................................................................10
7.2 Break-even Analysis................................................................................................................11
Chart: Break-even Analysis .................................................................................................11
Table: Break-even Analysis .................................................................................................11
7.3 Projected Profit and Loss .......................................................................................................12
Table: Profit and Loss ..........................................................................................................12
7.4 Projected Cash Flow...............................................................................................................13
Chart: Cash ...........................................................................................................................13
Table: Cash Flow..................................................................................................................14
7.5 Projected Balance Sheet ........................................................................................................15
Table: Balance Sheet ...........................................................................................................15
7.6 Business Ratios .......................................................................................................................16
Table: Ratios .........................................................................................................................17
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Page 1
Table of Contents
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Page 2
1.1 Mission
The mission of Buy the Time is to offer custom goods for all oc casions with minimal interruptions
into our clients' daily ac tivities. We want our customers to be able to give special gifts to their
loved ones without it being a stressful event. We will strive to provide expert consultants in
order to guide the client from start to finish with low-cost, reliable information in a timely
fashion.
1.2 Objectives
The objectives for the company are outlined below:
Obtain and service clients with a knowledgeable sales team offering purchases of goods
based on desires and needs.
For a low charge, allow people to obtain c ustom items with minimal interruption into
their day and life.
Page 1
Grow into a large franchise with a reputation for getting the desired item at a
reasonable cost.
Page 2
$1,250
$3,650
$4,900
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$2,400
$1,250
$0
$1,250
$3,650
$0
$0
$0
$0
$0
Capital
Planned Investment
Owner
Private Investor
Other
Additional Investment Requirement
Total Planned Investment
$3,250
$1,650
$0
$0
$4,900
($1,250)
$3,650
$3,650
Total Funding
$4,900
Page 3
$300
$150
$200
$0
$0
$0
$100
$500
$0
$1,250
Start-up Assets
Cash Required
Other Current Assets
$1,250
$400
Long-term Assets
Total Assets
$2,000
$3,650
Total Requirements
$4,900
3.0 Services
Buy the Time will offer an expert consultant for all oc casions. This consultant will spec ialize in
personal gifts and ideas for people who desire the latest fashions and/or gift solutions
for individuals who are hard to shop for. This service will provide insight, research, purchases,
Page 4
Busy executives desiring to keep pac e with the trends, yet not having the time to
fac ilitate their needs.
Younger business persons who choose to have the luxury and convenience of a
personalized shopping service.
Those needing consultation in gifts and/or not wanting the pressures that are
assoc iated with finding custom gifts for special oc casions.
Page 5
Year 2
Year 3
Year 4
Year 5
Potential Customers
Executives
Growth
52%
500
900
1,300
4,000
6,400
CAGR
89.15%
Business Persons
Other
Total
32%
15%
96.16%
260
60
820
500
240
1,640
800
400
2,500
2,010
1,000
7,010
3,900
1,840
12,140
96.80%
135.32%
96.16%
They often find that their image is very important, both professionally and personally.
They need advice or information on what the latest trends and fashions are.
They keep busy schedules that often involve a lot of travel. This leaves little time for
shopping that is time consuming, such as gift buying.
They have a desire to be pampered and willingly spend money as a symbol of status.
Page 7
Year 2
Year 3
Sales
Jade Kousky - Owner
$32,365
$41,000
$50,000
Retail Consultant 1
Total Sales
$0
$32,365
$25,000
$66,000
$33,000
$83,000
Year 1
$11,250
$0
$11,250
Year 2
$18,750
$9,000
$27,750
Year 3
$22,500
$15,000
$37,500
Page 8
Table: Personnel
Personnel Plan
Owner
Other
Total People
Year 1
$15,000
$0
0
Year 2
$30,000
$0
0
Year 3
$37,000
$0
0
Total Payroll
$15,000
$30,000
$37,000
Page 9
The table below outlines some business assumptions that are the basis for Buy The Time's
growth, including tax rate and payment days.
Year 1
1
10.00%
Year 2
2
10.00%
Year 3
3
10.00%
10.00%
25.42%
0
10.00%
25.00%
0
10.00%
25.42%
0
Page 10
$1,916
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
35%
$1,250
Page 11
Year 1
$32,365
$11,250
$0
$11,250
Year 2
$66,000
$27,750
$0
$27,750
Year 3
$83,000
$37,500
$0
$37,500
Gross Margin
Gross Margin %
$21,115
65.24%
$38,250
57.95%
$45,500
54.82%
Expenses
Payroll
$15,000
$30,000
$37,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Utilities
Insurance
Rent
Payroll Taxes
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$15,000
$30,000
$37,000
$6,115
$8,250
$8,500
EBITDA
Interest Expense
Taxes Incurred
$6,115
$0
$1,528
$8,250
$0
$2,063
$8,500
$0
$2,160
Net Profit
Net Profit/Sales
$4,587
14.17%
$6,188
9.38%
$6,340
7.64%
Page 12
Page 13
Year 2
Year 3
$17,801
$11,759
$29,560
$36,300
$26,785
$63,085
$45,650
$35,877
$81,527
$0
$0
$0
$0
$0
$0
$0
$29,560
$0
$0
$0
$0
$0
$0
$0
$63,085
$0
$0
$0
$0
$0
$0
$0
$81,527
Year 1
Year 2
Year 3
$15,000
$11,630
$26,630
$30,000
$28,509
$58,509
$37,000
$38,851
$75,851
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$26,630
$58,509
$75,851
$2,929
$4,179
$4,575
$8,755
$5,676
$14,430
Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Page 14
Year 2
Year 3
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
$4,179
$2,805
$400
$7,385
$8,755
$5,721
$400
$14,875
$14,430
$7,194
$400
$22,024
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$2,000
$0
$2,000
$9,385
$2,000
$0
$2,000
$16,875
$2,000
$0
$2,000
$24,024
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
$1,147
$0
$0
$2,450
$0
$0
$3,260
$0
$0
$1,147
$2,450
$3,260
Long-term Liabilities
Total Liabilities
$0
$1,147
$0
$2,450
$0
$3,260
Assets
Paid-in Capital
$4,900
$4,900
$4,900
($1,250)
$4,587
$8,237
$3,337
$6,188
$14,425
$9,525
$6,340
$20,764
$9,385
$16,875
$24,024
Net Worth
$8,237
$14,425
$20,764
Retained Earnings
Earnings
Total Capital
Page 15
Page 16
Year 2
103.92%
Year 3
25.76%
Industry Profile
-8.50%
29.89%
4.26%
78.69%
21.31%
100.00%
33.90%
2.37%
88.15%
11.85%
100.00%
29.95%
1.66%
91.68%
8.32%
100.00%
6.70%
26.40%
43.50%
56.50%
100.00%
12.23%
0.00%
12.23%
87.77%
14.52%
0.00%
14.52%
85.48%
13.57%
0.00%
13.57%
86.43%
19.50%
21.40%
40.90%
59.10%
100.00%
65.24%
51.07%
0.00%
18.89%
100.00%
57.95%
54.26%
0.00%
12.50%
100.00%
54.82%
47.14%
0.00%
10.24%
100.00%
50.80%
34.40%
0.20%
1.50%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
6.44
6.44
12.23%
74.24%
6.07
6.07
14.52%
57.19%
6.76
6.76
13.57%
40.94%
2.09
1.03
40.90%
1.10%
65.16%
48.89%
35.38%
1.90%
Additional Ratios
Year 1
Year 2
Year 3
14.17%
55.69%
9.38%
42.90%
7.64%
30.53%
n.a
n.a
5.19
57
5.19
52
5.19
63
n.a
n.a
11.14
27
3.45
12.17
22
3.91
12.17
26
3.45
n.a
n.a
n.a
Debt Ratios
Debt to Net Worth
0.14
0.17
0.16
n.a
1.00
1.00
1.00
n.a
$6,237
0.00
$12,425
0.00
$18,764
0.00
n.a
n.a
Additional Ratios
Assets to Sales
Current Debt/Total Assets
0.29
12%
0.26
15%
0.29
14%
n.a
n.a
Acid Test
Sales/Net Worth
Dividend Payout
3.99
3.93
0.00
3.74
4.58
0.00
4.55
4.00
0.00
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Liquidity Ratios
Net Working Capital
Interest Coverage
Page 17
Appendix
Table: Sales Forecast
Sales Forecast
Sales
Jade Kousky - Owner
Retail Consultant 1
Total Sales
Direct Cost of Sales
Jade Kousky - Owner
Retail Consultant 1
Subtotal 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
0%
$2,168
$2,181
$2,290
$2,404
$2,524
$2,650
$2,703
$2,891
$3,092
$3,123
$3,154
$3,185
0%
$0
$2,168
$0
$2,181
$0
$2,290
$0
$2,404
$0
$2,524
$0
$2,650
$0
$2,703
$0
$2,891
$0
$3,092
$0
$3,123
$0
$3,154
$0
$3,185
Month 1
$938
$0
$938
Month 2
$938
$0
$938
Month 3
$938
$0
$938
Month 4
$938
$0
$938
Month 5
$938
$0
$938
Month 6
$938
$0
$938
Month 7
$938
$0
$938
Month 8
$938
$0
$938
Month 9
$938
$0
$938
Month 10
$938
$0
$938
Month 11
$938
$0
$938
Month 12
$938
$0
$938
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
$1,250
$0
Month 2
$1,250
$0
Month 3
$1,250
$0
Month 4
$1,250
$0
Month 5
$1,250
$0
Month 6
$1,250
$0
Month 7
$1,250
$0
Month 8
$1,250
$0
Month 9
$1,250
$0
Month 10
$1,250
$0
Month 11
$1,250
$0
Month 12
$1,250
$0
Total People
Total Payroll
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
Owner
Other
0%
0%
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Month 1
1
10.00%
Month 2
2
10.00%
Month 3
3
10.00%
Month 4
4
10.00%
Month 5
5
10.00%
Month 6
6
10.00%
Month 7
7
10.00%
Month 8
8
10.00%
Month 9
9
10.00%
Month 10
10
10.00%
Month 11
11
10.00%
Month 12
12
10.00%
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
Other
30.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1
$2,168
$938
Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Month 2
$2,181
$938
Month 3
$2,290
$938
Month 4
$2,404
$938
Month 5
$2,524
$938
Month 6
$2,650
$938
Month 7
$2,703
$938
Month 8
$2,891
$938
Month 9
$3,092
$938
Month 10
$3,123
$938
Month 11
$3,154
$938
Month 12
$3,185
$938
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$938
$938
$938
$938
$938
$938
$938
$938
$938
$938
$938
$938
$1,231
56.76%
$1,244
57.02%
$1,353
59.06%
$1,467
61.00%
$1,587
62.86%
$1,713
64.62%
$1,766
65.32%
$1,954
67.57%
$2,155
69.68%
$2,186
69.98%
$2,217
70.28%
$2,248
70.57%
Expenses
Payroll
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$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
Utilities
Insurance
Rent
$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
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
($20)
($7)
$103
$217
$337
$463
$516
$704
$905
$936
$967
$998
EBITDA
Interest Expense
($20)
$0
($7)
$0
$103
$0
$217
$0
$337
$0
$463
$0
$516
$0
$704
$0
$905
$0
$936
$0
$967
$0
$998
$0
Taxes Incurred
($6)
($2)
$26
$54
$84
$116
$129
$176
$226
$234
$242
$249
($14)
-0.63%
($5)
-0.22%
$77
3.36%
$162
6.75%
$252
10.00%
$347
13.09%
$387
14.30%
$528
18.25%
$678
21.94%
$702
22.47%
$725
22.98%
$748
23.49%
Payroll Taxes
Other
Total Operating Expenses
Net Profit
Net Profit/Sales
10%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$1,192
$0
$1,200
$33
$1,260
$976
$1,322
$983
$1,388
$1,032
$1,458
$1,084
$1,487
$1,138
$1,590
$1,193
$1,701
$1,219
$1,718
$1,304
$1,735
$1,392
$1,752
$1,406
$1,192
$1,232
$2,235
$2,305
$2,420
$2,541
$2,624
$2,783
$2,920
$3,022
$3,127
$3,158
Cash Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0.00%
$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
$1,192
$0
$1,232
$0
$2,235
$0
$2,305
$0
$2,420
$0
$2,541
$0
$2,624
$0
$2,783
$0
$2,920
$0
$3,022
$0
$3,127
$0
$3,158
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
Cash Spending
Bill Payments
$1,250
$31
$1,250
$932
$1,250
$937
$1,250
$964
$1,250
$993
$1,250
$1,023
$1,250
$1,054
$1,250
$1,068
$1,250
$1,115
$1,250
$1,164
$1,250
$1,172
$1,250
$1,179
$1,281
$2,182
$2,187
$2,214
$2,243
$2,273
$2,304
$2,318
$2,365
$2,414
$2,422
$2,429
$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
$1,281
$2,182
$2,187
$2,214
$2,243
$2,273
$2,304
$2,318
$2,365
$2,414
$2,422
$2,429
($89)
($950)
$49
$91
$178
$268
$321
$465
$555
$608
$705
$728
Cash Balance
$1,161
$212
$260
$351
$529
$798
$1,118
$1,584
$2,138
$2,746
$3,451
$4,179
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
Current Assets
Cash
Accounts Receivable
$1,250
$0
$1,161
$976
$212
$1,925
$260
$1,979
$351
$2,078
$529
$2,182
$798
$2,290
$1,118
$2,369
$1,584
$2,477
$2,138
$2,649
$2,746
$2,750
$3,451
$2,778
$4,179
$2,805
$400
$1,650
$400
$2,537
$400
$2,536
$400
$2,639
$400
$2,829
$400
$3,111
$400
$3,488
$400
$3,887
$400
$4,460
$400
$5,187
$400
$5,897
$400
$6,629
$400
$7,385
Long-term Assets
Long-term Assets
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$3,650
$2,000
$4,537
$2,000
$4,536
$2,000
$4,639
$2,000
$4,829
$2,000
$5,111
$2,000
$5,488
$2,000
$5,887
$2,000
$6,460
$2,000
$7,187
$2,000
$7,897
$2,000
$8,629
$2,000
$9,385
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
$0
$901
$905
$931
$959
$988
$1,018
$1,031
$1,076
$1,125
$1,132
$1,140
$1,147
Current Borrowing
Other Current Liabilities
$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
$901
$905
$931
$959
$988
$1,018
$1,031
$1,076
$1,125
$1,132
$1,140
$1,147
Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Liabilities
$0
$901
$905
$931
$959
$988
$1,018
$1,031
$1,076
$1,125
$1,132
$1,140
$1,147
Paid-in Capital
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
($1,250)
Earnings
Total Capital
$0
$3,650
($14)
$3,636
($19)
$3,631
$58
$3,708
$221
$3,871
$473
$4,123
$820
$4,470
$1,207
$4,857
$1,734
$5,384
$2,413
$6,063
$3,114
$6,764
$3,839
$7,489
$4,587
$8,237
$3,650
$4,537
$4,536
$4,639
$4,829
$5,111
$5,488
$5,887
$6,460
$7,187
$7,897
$8,629
$9,385
Net Worth
$3,650
$3,636
$3,631
$3,708
$3,871
$4,123
$4,470
$4,857
$5,384
$6,063
$6,764
$7,489
$8,237
Retained Earnings
Page 6