EAST BAY VENTURES

TINY HOUSE MANUFACTURING BUSINESS PLAN

$4800 Rent

$35,000 Cash Deposits on Kits

$3896 Wayfair

$27,500 Tiny House Kit

Executive Summary
Manufacturing and selling Tiny House DIY Kits is a $64billion industry. The focus of the industry is on the
affluent customer who can spend upwards to $15,000 on Tiny House DIY Kits purchases. In Richmond, there
are fifteen Tiny House DIY Kits stores that are competing for these customers with deep pockets. Those
customers who can't afford these high prices are left with a poor selection of inferior products.

In the USA area, there are approximately 50,000 residents with modest incomes that do not have a Tiny
House DIY Kits store to caters to their needs for affordable quality Tiny House DIY Kits. This income
demographic has grown tremendously over the past five years but has not been responded to by the area Tiny
House DIY Kits stores. Targeting customers with modest incomes is good business. They are expected to make
up half of metro population by 2020--making them the fastest-growing segment of the city's housing market.

There are three modest-income housing renovation projects underway in Richmond with a combined total of
1,500 units that will be sold as affordable housing.

As the USA section revives, The Tiny House Leader will offer customized, ready-to-finish pine Tiny House DIY
Kits that's hand made and surprisingly affordable. We offer:

 Truly Custom Tiny House DIY Kits: An unfinished Tiny House DIY Kits piece that is crafted for the
customer. We'll customize any piece or create a whole new piece from a customer's rough sketch.
 Heirloom Quality Tiny House DIY Kits: The Tiny House DIY Kits is made to last for generations. It's hand
crafted, so each piece is unique.
 Handmade from Quality Pine: Every piece is made by a professional craftsman from the finest pine
available. Every piece of pine is checked for grain and texture before it's used.

1
1.1 Mission
The Tiny House Leader's Mission is simple. The customer gets what he/she wants; Tiny House DIY Kits (one
piece or a whole house full) that fits the customer's space, taste, budget and style preference, from top to
bottom!

1.2 Keys to Success

The Keys to Success for The Tiny House Leader are as follows:

 Offer our customers affordable quality Tiny House DIY Kits that will last.
 Customize any piece as requested by a customer.
 And if customizing a piece won't quite work, create a whole new piece from scratch, exactly to the
customer's specifications.

 Company Summary
 The Tiny House Leader will offer customized, ready-to-finish pine Tiny House DIY Kits that's hand
made and surprisingly affordable. Our target customers are young families and young adults with
modest incomes who are looking for the same selection and quality that the high-end customer
receives. Each piece is handcrafted from the finest pine and built to last for generations.

 2.1 Company Ownership

 The Tiny House Leader is owned by Richard Putnam. Richard has over 10 years of experience in Tiny
House DIY Kits manufacturing.

2
  2.2 Company Locations and Facilities
 The Tiny House Leader will be centrally located in Central California in the City Of Lodi area.

 2.3 Start-up Summary

 The Tiny House Leader's start-up costs consists mostly of Tiny House DIY Kits manufacturing
equipment and transport containers. Richard Putnam will invest $50,000. In addition, he will secure a
$130,000 loan.

START-UP REQUIREMENTS

Start-up Expenses

Legal $1,000

Stationery etc. $200

Insurance $1,000

3
Rent $2,000

Expensed Equipment $60,000

TOTAL START-UP EXPENSES $64,200

Start-up Assets

Cash Required $5,800

Start-up Inventory $50,000

Other Current Assets $0

Long-term Assets $60,000

TOTAL ASSETS $115,800

Total Requirements $180,000

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4
START-UP FUNDING

Start-up Expenses to Fund $64,200

Start-up Assets to Fund $115,800

TOTAL FUNDING REQUIRED $180,000

Assets

Non-cash Assets from Start-up $110,000

Cash Requirements from Start-up $5,800

Additional Cash Raised $0

Cash Balance on Starting Date $5,800

TOTAL ASSETS $115,800

Liabilities and Capital

Liabilities

Current Borrowing $0

5
Long-term Liabilities $130,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $130,000

Capital

Planned Investment

Richard Putnam $50,000

Other $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $50,000

Loss at Start-up (Start-up Expenses) ($64,200)

TOTAL CAPITAL ($14,200)

TOTAL CAPITAL AND LIABILITIES $115,800

6
 Total Funding $180,000

The Tiny House Leader will offer wood products for the bedroom, living and dining room, and the storage
room:

 Beds;
 Dressers;
 Chest;
 Armoires;
 Entertainment centers;
 Bookcases;
 Tables;
 Chairs;
 Benches.

Market Analysis Summary

In the USA, there are approximately 50,000 residents with modest incomes. They are expected to make up half
of the metro population by 2020--making them the fastest-growing segment of the city's housing market.

It is estimated that the USA will need 235,000 units of Tiny House Kits in the next seven years. Currently, there
are three renovation projects that represent 1,500 new housing units. Q2 2018, (April June) will be our first
quarter of launching our business. Next year, two new construction projects will be completed offering another
1,000 units of affordable housing. Another 1,000 unit project, to be located in the Garden Meadows section
downtown, is currently in the planning stages.

There are changes occuring around the State University, located downtown, that will also impact the revival of
the USA area. Two off-campus housing projects will be completed mid-year that will add an additional 2,000
family housing units to the university area.

4.1 Market Segmentation

The growth of affordable housing in the USA area is critical to the success of The Tiny House Leader.

We will aggressively market our target customers who live in the Metro area:

 Young working families;

 Students;
 Young adults.

7
 MARKET ANALYSIS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Customers Growth CAGR

Young Working
12% 3,000 3,360 3,763 4,215 4,721 12.00%
Families

Students 10% 5,000 5,500 6,050 6,655 7,321 10.00%

Young Adults 10% 10,000 11,000 12,100 13,310 14,641 10.00%

Total 10.34% 18,000 19,860 21,913 24,180 26,683 10.34%

Strategy and Implementation Summary

8
The Tiny House Leader will focus on the modest income Tiny House DIY Kits customer who live in the USA
area.

5.1 Competitive Edge

Most of AMERICA’S 35 Tnny House Companies (THIA members – See Appendix A) are dispersed throughout
the city adjacent to affluent or suburban communities. The stores downtown are high end and offer no
affordable products to the Metro residents.

INSERT THIA MEMBER MAP

The primary reason for the price of the Tiny House DIY Kits is the type of wood that is used. A bedroom set
made of pine can cost a customer $400. The same set made in oak or maple will cost $800. The profits are
higher by focusing on the more expensive wood. When using pine, many manufacturers improve their profits
by using cheaper construction techniques. The resulting poor quality of these products have added to a
popular misconception that pine is an inferior wood.

The Richmond Tiny House DIY Kits stores offer a very limited selection of styles in pine. Most products are
selected to maximize the store's profit, not the customer's satisfaction, since it is believed the customer has few
options.

The Tiny House Leader will build its Tiny House DIY Kits to last generations and will offer the customer all the
popular styles.

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5.2 Sales Strategy

We will advertise in the university daily student newspaper as well as the Metro area advertising flyer. In the
advertisements for the store opening, we will have a 20% off coupon. We will conTinye this discount for the
first month of operation.

The metro area also has six community organizations that send out weekly flyers to all community residents.
We will advertise in the these flyers.

5.2.1 Sales Forecast

The following is the sales forecast for the three years.

9
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SALES FORECAST

10
 YEAR 1 YEAR 2 YEAR 3

Sales

Tiny House DIY Kits $964,000 $1,000,000 $1,050,000

Other $0 $0 $0

TOTAL SALES $964,000 $1,000,000 $1,050,000

Direct Cost of Sales Year 1 Year 2 Year 3

Tiny House DIY Kits $432,000 $430,000 $450,000

Other $0 $0 $0

Subtotal Direct Cost of Sales $432,000 $430,000 $450,000

Management Summary
The store's owner, Richard Putnam, has worked in the Tiny House DIY Kits manufacturing industry for over ten
years. This experience began at Ingram's Fine Tiny House DIY Kits, where he worked for five years. Within three
years, he reached the position of shift manager. Most recently, Richard was the operations manager at
Wasserman Tiny House DIY Kits Manufacturing.

Richard is an excellent staff supervisor and will do very well in managing the staff of The Tiny House Leader.

6.1 Personnel Plan

The Tiny House Leader will have the following staff members:

 Manager;
11
  Assistant manager;
 Office manager/accountant;
 Checkers (1.5);
 Production staff (5);
 Stockers (1.5);

PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Manager $36,000 $40,000 $45,000

Assistant Manager $36,000 $39,000 $43,000

Office Manager/Bookkeeper $36,000 $39,000 $42,000

Checkers $32,400 $35,500 $40,000

Production Staff $120,000 $130,000 $140,000

Stockers $39,600 $43,000 $46,000

TOTAL PEOPLE 9 9 9

Total Payroll $300,000 $326,500 $356,000

Financial Plan

The following is the Financial plan for The Tiny House Leader.

7.1 Break-even Analysis

The following table and chart show our monthly sales break-even point.
12
 Break-even Analysis

Monthly Revenue Break-even $69,767

Assumptions:

Average Percent Variable Cost 45%

Estimated Monthly Fixed Cost $38,502

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

13
14
Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $964,000 $1,000,000 $1,050,000

Direct Cost of Sales $432,000 $430,000 $450,000

Other Production Expenses $0 $0 $0

Total Cost of Sales $432,000 $430,000 $450,000

Gross Margin $532,000 $570,000 $600,000

Gross Margin % 55.19% 57.00% 57.14%

Expenses

Payroll $300,000 $326,500 $356,000

15
 Sales and Marketing and Other Expenses $60,000 $60,000 $60,000

Depreciation $11,424 $11,424 $11,424

Leased Equipment $0 $0 $0

Utilities $9,600 $9,600 $9,600

Insurance $12,000 $12,000 $12,000

Rent $24,000 $24,000 $24,000

Payroll Taxes $45,000 $48,975 $53,400

Other $0 $0 $0

Total Operating Expenses $462,024 $492,499 $526,424

Profit Before Interest and Taxes $69,976 $77,501 $73,576

EBITDA $81,400 $88,925 $85,000

Interest Expense $11,917 $10,001 $8,002

Taxes Incurred $17,418 $20,250 $19,672

Net Profit $40,641 $47,250 $45,902

Net Profit/Sales 4.22% 4.72% 4.37%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

16
Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Infused

(See Bank Statements) and Sources and Usesof Funds

Cash from Operations

Cash Sales $723,000 $750,000 $787,500

Cash from Receivables $198,158 $248,400 $260,278

Subtotal Cash from Operations $921,158 $998,400 $1,047,778

Additional Cash Received

17
Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $921,158 $998,400 $1,047,778

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $300,000 $326,500 $356,000

Bill Payments $539,935 $637,773 $637,056

Subtotal Spent on Operations $839,935 $964,273 $993,056

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

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 Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $19,992 $19,992 $19,992

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $859,927 $984,265 $1,013,048

Net Cash Flow $61,231 $14,136 $34,730

Cash Balance $67,031 $81,167 $115,897

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $67,031 $81,167 $115,897

Accounts Receivable $42,842 $44,442 $46,664

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Inventory $51,700 $51,461 $53,854

Other Current Assets $0 $0 $0

Total Current Assets $161,573 $177,069 $216,415

Long-term Assets

Long-term Assets $60,000 $60,000 $60,000

Accumulated Depreciation $11,424 $22,848 $34,272

Total Long-term Assets $48,576 $37,152 $25,728

Total Assets $210,149 $214,221 $242,143

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $73,700 $50,514 $52,526

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $73,700 $50,514 $52,526

Long-term Liabilities $110,008 $90,016 $70,024

Total Liabilities $183,708 $140,530 $122,550

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 Paid-in Capital $50,000 $50,000 $50,000

Retained Earnings ($64,200) ($23,559) $23,691

Earnings $40,641 $47,250 $45,902

Total Capital $26,441 $73,691 $119,593

Total Liabilities and Capital $210,149 $214,221 $242,143

Net Worth $26,441 $73,691 $119,593

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC)
code 5712, Tiny House DIY Kits Stores, are shown for comparison.

The following is an explanation of the plans divergence with industry ratio profile.

Sales Growth - will start below the industry average but will be closer to the average after the third year of operation.

Accounts Receivable - is slightly below average due to the low use of credit for purchases (25%).

Inventory - is below the industry average because 20% of the Tiny House DIY Kits will be built to order.

Long Term Assets, Long Term Liabilities, and Expense of Sales - are higher because The Tiny House Leader builds Tiny House DIY Kits
on site.

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 3.73% 5.00% 6.20%

Percent of Total Assets

Accounts Receivable 20.39% 20.75% 19.27% 21.00%

Inventory 24.60% 24.02% 22.24% 38.80%

21
Other Current Assets 0.00% 0.00% 0.00% 21.70%

Total Current Assets 76.88% 82.66% 89.37% 81.50%

Long-term Assets 23.12% 17.34% 10.63% 18.50%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 35.07% 23.58% 21.69% 44.90%

Long-term Liabilities 52.35% 42.02% 28.92% 13.70%

Total Liabilities 87.42% 65.60% 50.61% 58.60%

Net Worth 12.58% 34.40% 49.39% 41.40%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 55.19% 57.00% 57.14% 37.60%

Selling, General & Administrative Expenses 50.97% 52.28% 52.77% 20.80%

Advertising Expenses 6.22% 6.00% 5.71% 4.40%

Profit Before Interest and Taxes 7.26% 7.75% 7.01% 1.60%

Main Ratios

Current 2.19 3.51 4.12 1.82

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Quick 1.49 2.49 3.09 0.76

Total Debt to Total Assets 87.42% 65.60% 50.61% 58.60%

Pre-tax Return on Net Worth 219.58% 91.60% 54.83% 3.80%

Pre-tax Return on Assets 27.63% 31.51% 27.08% 9.20%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 4.22% 4.72% 4.37% n.a

Return on Equity 153.70% 64.12% 38.38% n.a

Activity Ratios

Accounts Receivable Turnover 5.63 5.63 5.63 n.a

Collection Days 57 64 63 n.a

Inventory Turnover 10.73 8.34 8.55 n.a

Accounts Payable Turnover 8.33 12.17 12.17 n.a

Payment Days 27 37 29 n.a

Total Asset Turnover 4.59 4.67 4.34 n.a

Debt Ratios

Debt to Net Worth 6.95 1.91 1.02 n.a

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 Current Liab. to Liab. 0.40 0.36 0.43 n.a

Liquidity Ratios

Net Working Capital $87,873 $126,555 $163,889 n.a

Interest Coverage 5.87 7.75 9.19 n.a

Additional Ratios

Assets to Sales 0.22 0.21 0.23 n.a

Current Debt/Total Assets 35% 24% 22% n.a

Acid Test 0.91 1.61 2.21 n.a

Sales/Net Worth 36.46 13.57 8.78 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Month Month Month Month Month Month Month Month Month Month Month
Month 7
1 2 3 4 5 6 8 9 10 11 12

Sales

Tiny
House 0 $50,00 $60,00 $70,00 $75,00 $85,00 $90,00 $100,00 $85,00 $90,00 $85,00 $79,00 $95,00
DIY % 0 0 0 0 0 0 0 0 0 0 0 0
Kits

0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
%

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 Total
$50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Sales

Direct
Month Month Month Month Month Month Month Month Month Month Month
Cost of Month 7
1 2 3 4 5 6 8 9 10 11 12
Sales

Tiny
House $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
DIY Kits

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtota
l Direct
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Cost of
Sales

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Personnel Plan

Month Month Month Month Month Month Month Month Month Month Month
Month 12
1 2 3 4 5 6 7 8 9 10 11

0
Manager $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
%

0
Assistant Manager $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
%

Office 0
$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Manager/Bookkeeper %

0
Checkers $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
%

0
Production Staff $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
%

0
Stockers $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
%

Total People 9 9 9 9 9 9 9 9 9 9 9 9

Total Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

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General Assumptions

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate

Long-term
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000

Direct Cost
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
of Sales

Other
Production $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses

Total Cost of
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Sales

Gross
$30,000 $38,000 $39,000 $41,000 $45,000 $48,000 $55,000 $47,000 $49,000 $48,000 $44,000 $48,000
Margin

Gross
60.00% 63.33% 55.71% 54.67% 52.94% 53.33% 55.00% 55.29% 54.44% 56.47% 55.70% 50.53%
Margin %

Expenses

Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

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Sales and
Marketing
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
and Other
Expenses

Depreciation $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952

Leased
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment

Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Payroll Taxes 15% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total
Operating $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502
Expenses

Profit Before
Interest and ($8,502) ($502) $498 $2,498 $6,498 $9,498 $16,498 $8,498 $10,498 $9,498 $5,498 $9,498
Taxes

EBITDA ($7,550) $450 $1,450 $3,450 $7,450 $10,450 $17,450 $9,450 $11,450 $10,450 $6,450 $10,450

Interest
$1,069 $1,056 $1,042 $1,028 $1,014 $1,000 $986 $972 $958 $945 $931 $917
Expense

Taxes
($2,871) ($467) ($163) $441 $1,645 $2,549 $4,654 $2,258 $2,862 $2,566 $1,370 $2,574
Incurred

Net Profit ($6,700) ($1,090) ($381) $1,029 $3,839 $5,949 $10,858 $5,268 $6,678 $5,987 $3,197 $6,007

Net
-13.40% -1.82% -0.54% 1.37% 4.52% 6.61% 10.86% 6.20% 7.42% 7.04% 4.05% 6.32%
Profit/Sales

Pro Forma Cash Flow

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

27
Cash
Received

Cash from
Operations

Cash Sales $37,500 $45,000 $52,500 $56,250 $63,750 $67,500 $75,000 $63,750 $67,500 $63,750 $59,250 $71,250

Cash from
$0 $417 $12,583 $15,083 $17,542 $18,833 $21,292 $22,583 $24,875 $21,292 $22,458 $21,200
Receivables

Subtotal
Cash from $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Operations

Additional
Cash
Received

Sales Tax,
VAT,
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Received

New
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)

New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets

Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

New
Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received

28
Subtotal Cash
$37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Received

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

Expenditures
from
Operations

Cash
$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Spending

Bill Payments $358 $11,368 $30,171 $54,228 $51,669 $61,759 $60,506 $65,809 $46,566 $60,270 $48,627 $48,604

Subtotal
Spent on $25,358 $36,368 $55,171 $79,228 $76,669 $86,759 $85,506 $90,809 $71,566 $85,270 $73,627 $73,604
Operations

Additional
Cash Spent

Sales Tax,
VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out

Principal
Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Borrowing

Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment

Long-term
Liabilities
$1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
Principal
Repayment

Purchase
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash
$27,024 $38,034 $56,837 $80,894 $78,335 $88,425 $87,172 $92,475 $73,232 $86,936 $75,293 $75,270
Spent

29
Net Cash
$10,476 $7,383 $8,246 ($9,561) $2,957 ($2,091) $9,120 ($6,142) $19,143 ($1,894) $6,415 $17,180
Flow

Cash Balance $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031

Pro Forma Balance Sheet

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Starting
Assets
Balances

Current
Assets

$16,27 $23,65 $31,90 $22,34 $25,30 $23,20 $32,32 $26,18 $45,33 $43,43 $49,85 $67,03
Cash $5,800
6 9 5 4 1 9 9 7 0 6 1 1

Accounts $12,50 $27,08 $32,00 $35,66 $39,37 $43,04 $46,75 $45,41 $43,04 $43,00 $40,29 $42,84
$0
Receivable 0 3 0 7 5 2 0 7 2 0 2 2

$50,00 $30,00 $24,20 $34,10 $37,40 $44,00 $46,20 $49,50 $41,80 $45,10 $40,70 $38,50 $51,70
Inventory
0 0 0 0 0 0 0 0 0 0 0 0 0

Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Total
Current $55,800 $58,776 $74,942 $98,005 $95,410 $108,676 $112,451 $128,579 $113,404 $133,472 $127,136 $128,643 $161,573
Assets

Long-term
Assets

Long-term $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00
Assets 0 0 0 0 0 0 0 0 0 0 0 0 0

Accumulate
$10,47 $11,42
d $0 $952 $1,904 $2,856 $3,808 $4,760 $5,712 $6,664 $7,616 $8,568 $9,520
2 4
Depreciation

Total Long- $60,00 $59,04 $58,09 $57,14 $56,19 $55,24 $54,28 $53,33 $52,38 $51,43 $50,48 $49,52 $48,57
term Assets 0 8 6 4 2 0 8 6 4 2 0 8 6

Total Assets $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149

Liabilities Month Month Month Month Month Month Month Month Month Month Month Month
and Capital 1 2 3 4 5 6 7 8 9 10 11 12

30
Current
Liabilities

Accounts $10,39 $28,36 $52,51 $49,60 $59,74 $58,28 $64,27 $44,54 $58,64 $47,03 $46,06 $73,70
$0
Payable 0 0 8 8 9 9 3 4 8 9 2 0

Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Subtotal
$10,39 $28,36 $52,51 $49,60 $59,74 $58,28 $64,27 $44,54 $58,64 $47,03 $46,06 $73,70
Current $0
0 0 8 8 9 9 3 4 8 9 2 0
Liabilities

Long-term
$130,000 $128,334 $126,668 $125,002 $123,336 $121,670 $120,004 $118,338 $116,672 $115,006 $113,340 $111,674 $110,008
Liabilities

Total
$130,000 $138,724 $155,028 $177,520 $172,944 $181,419 $178,293 $182,611 $161,216 $173,654 $160,379 $157,736 $183,708
Liabilities

Paid-in
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Capital

Retained
($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200)
Earnings

Earnings $0 ($6,700) ($7,790) ($8,171) ($7,142) ($3,303) $2,646 $13,504 $18,772 $25,450 $31,437 $34,634 $40,641

Total Capital ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441

Total
Liabilities $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149

and Capital

Net Worth ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441

31