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STAFFING & TEMPORARY JOB AGENCY

BUSINESS PLAN

Business Plan
Revision 4.2
Serial: AAA983/01
Phone / Email /USA
1. Executive Summary

1.1 Objectives:

<YOUR.COMPANY.NAME> striving to be a leader in the provision of staffing


services and qualified talent across an array of industries. We specialize in
temporary, temp-to-hire and direct placement staffing services and our staffing and
talent resources extend throughout the United States.

Through our comprehensive network of talented job applicants, we select only the
most qualified individuals within every industry to service our clients.

We have developed our broad-based staffing and recruiting services to serve the
needs of those seeking qualified temporary, temp-to-hire and permanent placement
employees.

Because of our extensive reach within the staffing industry,


<YOUR.COMPANY.NAME> offers its clients the opportunity to determine the exact
qualifications of potential candidates. We work closely with our clients to determine
their specific needs and to ensure that their requests are matched with the
appropriate job applicants within our network.

Unlike the majority of staffing firms, <YOUR.COMPANY.NAME> maintains a vast and


proprietary database of highly qualified job applicants and employees. We are
therefore able to effectively service clients in virtually every industry in any part of
the United States

Some of the industries in which we work are:

 Finance
 Administrative

 Education

 Engineering

 Information Technology

 Entertainment

 Healthcare

 Human Resources

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 Legal

 Marketing

 Sales

 Hospitality

Because we provide highly-qualified personnel through our own proprietary network,


there is never a shortage of available talent.

Our success is primarily due to our dedicated staff's commitment, ability and
enthusiasm in providing a consistently efficient and responsive service to our
growing list of clients.

This business plan leads the way. It renews our vision and strategic focus: adding
value to our target market segments in our local market. It also provides the step-
by-step plan for improving our sales, gross margin, and profitability.

1.2 Mission Statement


To subscribe to the highest ethical and professional standards in operating a
diversified and profitable human resource firm engaged in providing excellence and
quality service to candidates and employers relative to temporary help, permanent
placement and contract staffing.

1.3 Objectives

<YOUR.COMPANY.NAME> keys to success will include:

 Excellent customer service.


 Grow and maintain a referral network of customers.

 Rapid response to customer problems with product or plan.

 Become established as the leading temporary staffing agency.

Financial Objectives

 Increase revenue

Marketing Objectives

 Increase marketing efforts.


 Expand market area.

 Expand marketing reach.

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 Brand recognition.

 Increase telemarketing efforts.

1.4 Keys to Success

Timing is critical in business. <YOUR.COMPANY.NAME>is taking advantage of an


opportunity to become a highly distinguished and recognized temporary staffing
agency leader because of certain key advantages:

 The management team has a unique combination of business


knowledge and experience in this market.
 <YOUR.COMPANY.NAME>has combined its expertise to offer services
for every type of customer in this sensitive industry.

 <YOUR.COMPANY.NAME>has established partnering relationships with


leading banks & financial companies.

<YOUR.COMPANY.NAME> critical success factors include funding, marketing, quality


sales professionals, good management, aggressive branding, increasing reach,
affiliating with the right partners, being specific to the needs of businesses and the
public, competitive intelligence and appropriate use of technology.

2. Company Overview

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<YOUR.COMPANY.NAME>striving to be one of the state's leaders in the field of
temporary staffing services.

The company's management philosophy is based on responsibility and mutual


respect.

<YOUR.COMPANY.NAME>maintains an environment and structure that encourages


productivity and respect for customers and fellow employees.

Additionally, the environment encourages employees to have fun by allowing


creative independence and providing challenges that are realistic and rewarding.

2.1 Company Ownership

YOUR_COMPANY> will be a sole proprietorship owned by <OWNER>.

<YOUR_COMPANY> will be based in <YOUR_CITY> <YOUR_STATE> It will offer


<YOUR_CITY> an alternative to the traditional large temporary staffing agency
franchises.

<YOUR_COMPANY> will offer a wide range of business hours and exceptional


customer service.

The business will be located in a high traffic area in <YOUR_CITY> and will have a
total of five employees by the end of year one. <YOUR_COMPANY> is forecasted to
reach profitability by month nine and will have <$?> in profit by year three.

2.2 Start-up Summary

<YOUR_COMPANY> will have the following start-up costs, of which everything that is
a long-term asset (any asset that will be used for more than one year) will be
depreciated using the straight-line method

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 OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS
 MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS
 EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK
 ARCHITECTURE/DECORATION/REMODELING
 OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS)

START-UP EXPENSES (REQUIREMENTS)


BUSINESS START YEAR 2004
OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS $473
MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS $1,305
EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK $3,580
ARCHITECTURE/DECORATION/REMODELING $2,143
OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS) $870
RENT+SECURITY DEPOSIT $1,500
INSURANCE $300
OTHER A $4,100
OTHER B $700
OTHER C $2,500
OTHER D $1,000
FRANCHISE FEE $0
BUSINESS FEE TRANSFER $0
TOTAL START-UP EXPENSES ($18,471)
Start-up Assets Needed
Cash Balance on Starting Date $8,700

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Start-up Inventory $0
Other Current Assets $1,000
TOTAL CURRENT ASSETS $9,700

Long-term Assets $10,000


TOTAL ASSETS $19,700
Total Requirements $1,229

Funding & Investor


INVESTOR 1 $30,000
INVESTOR 2 $0
OWNER 1 $0
OWNER 2 $0
BANK 1 $0
BANK 1 $0
TOTAL INVESTMENT $30,000

Current Liabilities
Accounts Payable $1,000
Current Borrowing $0
Other Current Liabilities $0
CURRENT LIABILITIES $1,000

Long-term Liabilities $3,444


TOTAL LIABILITIES $3,444

LOSS AT START-UP $18,471


TOTAL CAPITAL $11,529
TOTAL CAPITAL & LIABILITIES $14,973

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2.3 Company Locations and Facilities

<YOUR.COMPANY.NAME> head office is located at <address>.


<YOUR.COMPANY.NAME> leases its 1,100 square feet head office which has
adequate office space to conduct its operations.

At some point in the future, management expects to outgrow this office space.
Additional office space will be sought at the appropriate time.

3. Product & Services


<YOUR.COMPANY.NAME> provides temporary staffing outsourcing services to
<YOUR.CITY>-based medium-sized and large businesses. We represents the full
spectrum of staffing services for qualified personnel to meet the needs of companies
- from small, emerging growth companies to Fortune 500 clients.

Established in XXX <YOUR.COMPANY.NAME> has gained an enviable reputation for


providing quality services.

<YOUR.COMPANY.NAME> Staffing Services is organized into several divisions:


 Direct Hire
 Temporary Staffing
 Executive Staffing
 Contract Staffing
 National Staffing Services
 Business Services

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<YOUR.COMPANY.NAME> utilizes the latest computer technology to provide on line
services to both our clients and our applicants. We currently use an internet
based search system known as <XXX>. This program allows candidates and
clients to provide information about themselves or their organization via the
internet.

By accessing this area candidates may search for jobs that match their
employment experience. They may also register on line, notify our staff of their
interest in any of the open jobs posted or update their personnel file when
changes occur. In the near future, contract employees will be able to print time
sheets off of our site and submit their time worked through this interface.

Our clients have similar access with this system. Clients may enter job orders
on line and track candidates that we have contacted about their open position.
They can, with permission, search for candidates available in our database that
match other positions they are seeking to fill.

3.2 Fulfillment

<YOUR.COMPANY.NAME>is required to comply with various rules and regulations


among a number of local, state, and federal agencies.

Locally, the company is required to maintain its business license and comply with
local regulations and city codes. From a State level, the company is required to
comply with all State laws concerning employment law, corporate law, and consumer
products regulations.

From a Federal level, the company is required to comply with additional consumer
product laws, taxation, etc.

<YOUR.COMPANY.NAME> accounting policy follows generally accepted accounting


principals. <YOUR.COMPANY.NAME> financials are turned over to the CPA on a
quarterly basis.

<YOUR.COMPANY.NAME>uses Quick Books for its accounting software; Accounting is


system based on the accrual method. The fiscal year is based on year-end. Financial
reporting methods include monthly, quarterly, and annual statements. An annual
audit is to be performed by the firm's CPA firm in January.

<YOUR.COMPANY.NAME>carries insurance for business liability, automobile, and


medical coverage. Additional insurance programs such as worker's compensation and
key-man coverage will most likely be consummated by the close of the second
quarter of 2004.

Management has no knowledge of pending lawsuits or threat of legal action directed


at either the company or its officers.

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3.3 Technology

<YOUR.COMPANY.NAME> business tools may be considered to be those assets that


keep the business running smoothly.

These tools include computers, software, business forms, standard agreements,


various internal process standards, and other company-specific documentation.

As <YOUR.COMPANY.NAME> management identifies changing technology, these


changes will be studied, analyzed, and evaluated.

Of those technological changes that show significant impact on


<YOUR.COMPANY.NAME> future, funds and resources will likely be committed to
making adjustments to <YOUR.COMPANY.NAME> business operations.

Actions include expanding sales, customer service, and training in order to meet the
demand of the business community.

4. Market Analysis

<YOUR.COMPANY.NAME>continues to conduct industry analysis to stay current on


the nature and dynamics of the industry. This process helps management develop
insight and devise sustainable business and marketing strategies to assure future
success and avoid making decisions based on blind assumptions.

<YOUR.COMPANY.NAME> business model was developed under two areas of


knowledge: understanding the temporary staffing industry, and by having worked for
and observed successful companies (and their business models) in the financial
services industry.

According to reports published by CNN Financial News from the Commerce


Department, the U.S. economy capped off 2004 at a furious pace, posting its fastest
quarter of growth in more than three years, as demand at home and abroad for
U.S.-made goods remained robust and companies spent more stocking their shelves.

Gross domestic product grew at a 6.9 percent annual rate in the fourth quarter, the
Commerce Department said, above the revised 6.5 percent increase expected by
economists and well ahead of the 5.8 percent pace originally reported a month ago.
It was the biggest gain since the second quarter of 2003, and dwarfed the third-
quarter expansion of 5.7 percent.

The GDP price deflator, a key inflation gauge, rose at a 2 percent annual rate, the
same rate initially recorded a month ago and in-line with economists' forecasts of a 2
percent gain. The price deflator rang in at 1.1 percent in the third quarter. For the
entire year, the U.S. economy grew at a 4.1 percent pace, while the GDP price

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deflator advanced 1.6 percent. Higher productivity has allowed businesses to
produce more without increasing expenses, keeping the cost of the final product low.

The U.S. economy's rate of expansion during the past three years has been faster
than what Fed officials have said can be sustained without a renewed inflation threat.
Fed officials have stated at different intervals that a "comfortable" rate of growth is
typically around 3 percent. Small businesses are taking advantage of the
opportunities the Internet affords.

4.1 Target Market Analysis

<YOUR.COMPANY.NAME> operates in the <YOUR.CITY> area, targeting the


following geographic cities:

• <CITY_1>
• <CITY_2>
• <CITY_3/>

and the suburban communities (with business centers) Of:


• <OUT_SIDE_CITY>

4.2 Main Competitors

Competitors to the <YOUR.COMPANY.NAME>fall into four categories:

Segment Rivals: Segment Rivals offer the exact same services as


<YOUR.COMPANY.NAME>. While the market is certainly large enough to sustain

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multiple segment rivals, <YOUR.COMPANY.NAME>will attempt to ensure that its
name is well known in all its target markets.

Market Rivals: There are a number of available Market Rivals who compete with the
<YOUR.COMPANY.NAME>while having slightly different business focuses. The
<YOUR.COMPANY.NAME>will attempt to compete with these companies by
demonstrating its focus on "personal services.”

Generic Rivals: Generic Rivals represent alternative temporary staffing agency


solutions.

Structural Rivals: Structural Rivals are the forces inherent in the market through
which the company must operate.

5. Marketing & Sales


<YOUR.COMPANY.NAME>developed its sales and marketing strategy by analyzing its
own internal strengths and then analyzing current market conditions.

This process helped <YOUR.COMPANY.NAME>create its marketing and sales strategy


to leverage its competitive advantages with a unique marketing strategy, thus
establishing it as the region leading staffing services company for businesses.

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The company will create momentum through critical mass and brand recognition.
<YOUR.COMPANY.NAME>will monitor the effectiveness of its marketing efforts in
order to determine the advertising return on investment and the commerce
generated from the various channels.

<YOUR.COMPANY.NAME> ongoing marketing strategy involves the company


maintaining and expanding a broad base of clients in target territories, establishing
alliances with banks and financials companies so that it can deliver high-quality
products, and invoking its own organization to bring these together and implement
total solutions for customers. The company will move from the traditional product-
focused strategy to a total-focus on customer ownership.

The overall marketing plan for <YOUR.COMPANY.NAME> service is based on the


following fundamentals:

 The segment of the market(s) planned to reach.


 Distribution channels planned to be used to reach market segments.

 Share of the market expected to capture over a fixed period of time.

Our year 2004 marketing goals include the following:

 Capture 6% market share of businesses in the <YOUR.CITY> market areas.


 Educate small businesses about temporary staffing benefits.

 Substantially increase sales over 2003 levels.

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 Position the company as the number one provider of solutions for temporary
staffing management.

 Make a major branding effort emphasizing <YOUR.COMPANY.NAME> name


and array of services.

 Initiate new marketing program with a budget of $40,000?.

 Create new collateral marketing materials (brochures, radio ads, video).

 Media placements including magazine, TV, radio, Internet, print, and banner
advertising.

 Expand product and service offerings.

5.3 Competitive Edge

Our competitive edge is our positioning as strategic ally with our clients, who are
clients more than customers.

By building a business based on long-standing relationships with satisfied clients, we


simultaneously build defenses against competition. The longer the relationship
stands, the more we help our clients understand what we offer them and why they
need it.

5.4 Pricing Strategy

<YOUR.COMPANY.NAME> prices are competitive and affordable for businesses. The


company has also established a pricing and commissions structure for sales
representatives and distributors.

5.5 Promotion Strategy

<YOUR.COMPANY.NAME> overall goal is to increase the business base, and


create more awareness to the need for this type of service in the
marketplace.

Currently, marketing efforts have revolved around sales representatives and


telemarketing.

During 2004, <YOUR.COMPANY.NAME> marketing goals also include


positioning the company for co-branding alliances with several small business
associations.

It is <YOUR.COMPANY.NAME> belief that the best way to introduce its


services to businesses is through aggressive telemarketing.

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In addition to standard advertisement practices, <YOUR.COMPANY.NAME>
will gain considerable recognition through these additional promotional
mediums:

Sales Brochure
Direct Mail
Local Media

Our important milestones are shown on the following table. Row by row, they
track the need to follow up on strategy with specific activities. Most of the
activities on the list can be easily tied to our strategic goals of selling more
and enhancing the relationship with the customer.

5.6 Marketing Programs

Advertising programs include direct response advertising, public relations program,


co-marketing promotion, relationship building, direct sales efforts, telemarketing,
trade shows, ads in print media and radio and television.

<YOUR.COMPANY.NAME> marketing propositions are designed to appeal to various


target audiences, regardless of their level of sophistication.

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<YOUR.COMPANY.NAME>will continually inform businesses and consumers through
press releases and media placements about the temporary staffing service benefits
as well as endorsements from other customers.

These two factors naturally create a curiosity from those not previously exposed to
<YOUR.COMPANY.NAME>services, as well as the public sector seeking improved
methods in temporary staffing management.

It is believed that this strategy will draw an abundance of curiosity from which a
substantial market can be developed.

As an extra incentive for customers and potential customers to remember


<YOUR.COMPANY.NAME> name, the company plans to distribute advertising
specialties with the company logo. This will be an ongoing program for the
company, when appropriate and where it is identified as beneficial.

5.6.1 Strategic Alliances

<YOUR.COMPANY.NAME>has strategic partnerships with the leading financial


companies.

Management feels that these partnerships will enhance profits and help build
critical mass and business momentum.

The partnering companies are given below.

 Bank America United


 Erms+Erms Financial Services

 Bank United

5.6.2 Competitive Edge

Activities contributing to company success include identifying emerging trends


and integrate them into <YOUR.COMPANY.NAME> operations, respond quickly to
technology changes/be there early, provide high-quality services, continue to
invest time and money in marketing and advertising, continue to expand into
specialty markets, and stay ahead of the “staffing trends.”

Our future is highly dependent upon measuring resources we need in order


to execute our plans and be competitive. Our method includes qualitative and/or
quantitative measurements of competition and by estimating our own company
growth, sales, and cash flows.

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<YOUR.COMPANY.NAME>prides itself on its high-quality customer service.
Although excellent customer service is expected, not all provide this.
<YOUR.COMPANY.NAME>is available at all times for customer inquiries.

5.7 Web Plan Summary

In year 2, The <YOUR_COMPANY>plans to develop a Web presence and in year


3, add e-commerce to its business model. <YOUR_COMPANY> website,
WWW.<YOUR_COMPANY>.COM, will be a secondary channel of business serving
as virtual business card and business portfolio, as well as its online “home.”

The website will showcase the temporary staffing services offer available, and
provide design and trend information appropriate to the temporary staffing
management services.

To further show off its expertise, The <YOUR_COMPANY>website will provide a


resources area, offering articles, research, product information and website links
of interest to its customers.

The <YOUR_COMPANY>website will mirror the image and branding elements


showcased in the company and at the same time, keep up with the latest trends
in user interface design.

The key to the website strategy will be combining a well designed front-end, with
a back-end capable of capturing “hits” and customer data for use in future
marketing endeavors.

5.7.1 Website Marketing Strategy

Market strategy in an Internet service business depends on recognition of


expertise by the consumer. For <YOUR_COMPANY>, it will start with our existing
brick-and-mortar customer base, informing them of our Internet presence and
encouraging their word-of-mouth recommendations to others.

Further awareness will be heightened by utilizing search engine marketing,


banner advertising, and affiliates.

5.7.2 Development Requirements

Costs that The <YOUR_COMPANY>will expect to incur with development of


its website include:

Development Costs

 Site Design - $1,000.

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 Site Implementation - Free. The <YOUR_COMPANY>will utilize the
programming services of <PROFESIONAL_NAME>, husband and
friend. <PROFESIONAL_NAME>, has 20 years of experience in
software development including custom programming, data
management, and Web development. His skills and services are
profiled at his own website: WWW.XXX.COM.

 The <YOUR_COMPANY>is grateful for the significant cost savings and


advice that this connection will provide.

Ongoing Costs

 Website name registration for .COM - $35 per year.


 Site Hosting - $30 or less per month.

 Search Engine Registration - $100 per year.

 Site Design Changes - Changes in the site, such as photography


costs (estimated at $150-$200 per shot), are considered to be part of
Marketing and Advertising.

5.8 Sales Forecast

The following table and chart illustrates the projected sales forecast of
<YOUR.COMPANY.NAME>
SALES FORECAST
SALES 2004 2005 2006
RATIO % 0.0% 23.0% 50.0%
DIRECT HIRE $8,400 $10,332 $15,498
TEMPORARY STAFFING $21,600 $26,568 $39,852
EXECUTIVE STAFFING $40,800 $50,184 $75,276
CONTRACT STAFFING $52,800 $64,944 $97,416
NATIONAL STAFFING SERVICES $52,080 $64,058 $96,088
BUSINESS SERVICES $64,800 $79,704 $119,556
TOTAL SALES $240,480 $295,790 $443,686

DIRECT COST OF SALES 2004 2005 2006


RATIO % 0.0% 10.0% 40.0%
DIRECT HIRE $2,400 $2,640 $3,696
TEMPORARY STAFFING $5,400 $5,940 $8,316
EXECUTIVE STAFFING $9,600 $10,560 $14,784
CONTRACT STAFFING $13,200 $14,520 $20,328
NATIONAL STAFFING SERVICES $13,440 $14,784 $20,698

<company name> <Phone-Email> <City-State> P:17


BUSINESS SERVICES $17,280 $19,008 $26,611
SUB/DIRECT COST OF SALES $61,320 $67,452 $94,433

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6 Management Team
<YOUR_COMPANY>is owned and operated by <OWNER>. It will be formed as a sole
proprietorship as there is no compelling reason to incorporate. <OWNER> will have
ample insurance to help ward against personal liability issues.

<OWNER> has a degree in business from University of Miami. While at Miami her
worked at a local Manpower branch office. Though her worked out of a need for
money, he choose a Manpower out of her love for the staffing business.

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Upon graduation, <OWNER> worked for Manpower corporate headquarters in
<YOUR_CITY>, <YOUR_STATE> her found this to be a very valuable experience.
Not only did it help strengthen her marketing skills by learning from a industry
leading company, but it also gave her tremendous insight into the staffing industry.

After four years at Manpower corporate, <OWNER> finally got the gumption to
leave Manpower corporate, move to <YOUR_CITY> and open her own staffing
services firm.

<OWNER> believed that in order for her to be truly happy that her needed to be
running her own company and that her wanted to concentrate on quality services.

Her thought he would be able to apply her in depth industry knowledge and create a
company that addresses an unmet demand. Having done a lot of research, her
concluded <YOUR_CITY> was a very good place for a temporary staffing services
company.

6.1 Personnel Plan

The staff will consist of <OWNER> working full time. By month three there will be
three Outside Sales Rep employees.

This will suffice until month five when a full-time employee will be brought on board.
The employees will be chosen based on their people skills and on their love and
knowledge of the services that <YOUR_COMPANY> sells.

PERSONNEL PLAN
YEARS 2004 2005 2006
RATIO% 0% 20% 22%
OWNER $20,800 $24,960 $29,952
MANAGER $31,200 $37,440 $44,928
ASISTANT $20,800 $24,960 $29,952
SALES_REP $15,600 $18,720 $22,464
SALES_REP $8,700 $10,440 $12,528
TOTAL PERSONNEL 5 5 6
TOTAL TEMPORARY STAFFING $97,100 $116,520 $139,824

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7 Financial Plan
The following sections outline the financial plan for <YOUR.COMPANY.NAME>.

7.1 Important Assumptions

<YOUR.COMPANY.NAME>is currently seeking funding in the amount of $80,000? for


the purpose of increasing market share, hiring additional staff, and effectively
advertising and promoting its services.

7.2 Use and distribution of proceeds:

Integrate new services, develop website, and expand into other markets.

Produce media relations package(s); further build the brand name through
marketing, advertising, and promotion; and acquire additional office products.

Funding proceeds will also be used to increase <YOUR.COMPANY.NAME> capabilities,


enhance brand name, and extend <YOUR.COMPANY.NAME> market area.

Funds will also be directed into business relations, television advertising, press
releases, print advertising, Internet advertising, and website development and
maintenance. The initial investment will be used as a "kick off" marketing budget. It

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is expected that from this point on the company will self finance its expansion and
marketing programs.

7.3 Projected Profit and Loss :

The financial projections present the company's expected financial position, results of
operations and cash flow for the three years ending December 31, 2005.

Accordingly, the forecast reflects its judgment as of April 4, 2004, the date of this
forecast, of the expected conditions and its expected course of action.

There will usually be differences between forecasted and actual results, because
events and circumstances frequently do not occur as expected, and those differences
may be material.

Financial projections are based on sales volume at the levels described in the
revenue section and presents, to the best of management's knowledge and belief,
the company's expected assets, liabilities, capital, revenues, and expenses.

Further, the projections reflect management's judgment of the expected conditions


and its expected course of action given the hypothetical assumptions.

Revenues are derived from sales of temporary staffing services to businesses.

Annual Growth: We expect growth to increase by 120% per year on the basis that
the company will be stepping up marketing and sales efforts, as well as initiating
new partnerships and alliances that will foster growth and extensions of our existing
markets. These strategies are aimed to build momentum and critical mass within the
company and its overall sales results.

Sales and Marketing Expenses: We group advertising and promotions.

Advertising and Promotions: We are allocating 10% of sales for marketing


expenses in our projections.

Other: We estimate that we may need additional funds for other promotions and this
is set aside in a special fund.

Rent: It is assumed that rent will be an average $1,500 per month.

Repairs and Maintenance: This is an estimated figure which is expected to grow


with the setup of the firm.

Salary: Figures are estimated based on the national average for similar positions.

Legal and Professional Expense: Figures are estimated.

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Utilities: Figures are estimated. Management estimates that utilities will be at $800
per month.

Bank Charges: Figures are estimated.

Telephone Expense: Figures are estimated. Management estimates that this


expense will run at less than 1% of sales (0.50%).

Miscellaneous/other Expenses: Figures are estimated. Management foresees that


these expenses outside of the common budgeted items will run at a flat rate per
year.

Corporate Tax: Figure is estimated at 6.5% of sales.

Interest: Figure is estimated at 10% annually on the initial requirement of <$X??


>.

PRO FORMA PROFIT AND LOSS (P&L)


2004 2005 2006
SALES $240,480 $295,790 $443,686
Direct Cost of Sales $61,320 $67,452 $94,433
Other $0 $0 $0
TOTAL COST OF SALES $61,320 $67,452 $94,433
Gross Margin $179,160 $228,338 $349,253
Gross Margin % 292.17% 338.52% 369.84%
EXPENSES:

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TEMPORARY STAFFING $97,100 $116,520 $139,824
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $0 $0 $0
Rent $0 $0 $0
Temporary staffing Taxes $11,652 $13,982 $16,779
Other $0 $0 $0
other $0 $0 $0
TOTAL OPERATING EXPENSES $108,752 $130,502 $156,603
Profit Before Interest and Taxes $70,408 $97,836 $192,650
Interest Expense 344 344 344
Taxes Incurred $17,553 $24,115 $48,627
NET PROFIT $52,510 $73,377 $143,678
NET PROFIT/SALES 21.84% 24.81% 32.38%

7.4 Projected Cash Flow

The following table and chart shows the projected cash flow of
<YOUR.COMPANY.NAME>.

PRO FORMA CASH FLOW


CASH FROM OPERATIONS 2004 2005 2006
Cash Sales $120,240 $251,422 $377,133
Cash from Receivables $120,240 $44,369 $66,553
SUBTOTAL CASH FROM OPERATIONS $240,480 $295,790 $443,686
Additional Cash Received
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 $30,000 $20,000 $22,222
Subtotal Cash Received $270,480 $315,790 $465,908
EXPENDITURES FROM OPERATIONS 2004 2005 2006

<company name> <Phone-Email> <City-State> P:24


Cash Spending (+Temporary staffing ) $97,100 $116,520 $139,824
Payment of Accounts Payable $30,000 $30,000 $30,000
SUBTOTAL SPENT ON OPERATIONS $127,100 $146,520 $169,824
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $127,100 $146,520 $169,824
NET CASH FLOW $143,380 $312,650 $608,734
CASH BALANCE $286,760 $625,301 $1,360,848

<company name> <Phone-Email> <City-State> P:25


7.5 Break-even Analysis

The break-even analysis shows that monthly sales revenues will need to be
$XX,XXX to break even.

BREAK-EVEN ANALYSIS:
Monthly Units Break-even 555
Monthly Revenue Break-even $12,207

ASSUMPTIONS:
Average Per-Unit Revenue $22.00
Average Per-Unit Variable Cost $5.67
Estimated Monthly Fixed Cost $9,063

<company name> <Phone-Email> <City-State> P:26


7.6 Projected Balance Sheet

The following table is the projected balance sheet.

PRO FORMA BALANCE SHEET


ASSETS 2004 2005 2006
Cash $143,380 $456,030 $1,064,764
Accounts Receivable $10,000 $10,000 $10,000
Inventory $0 $0 $0
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $154,380 $467,030 ########
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $10,000 $10,000 $10,000
TOTAL ASSETS $164,380 $477,030 ########
Liabilities and Capital
CURRENT LIABILITIES 2004 2005 2006
Accounts Payable $1,000 $0 $0
Current Borrowing $0 $0 $0

<company name> <Phone-Email> <City-State> P:27


Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $1,000 $0 $0
Long-term Liabilities $3,444 $3,444 $3,444
TOTAL LIABILITIES $4,444 $3,444 $3,444
Paid-in Capital $30,000 $20,000 $22,222
Retained Earnings $77,426 $380,209 $916,420
Earnings $52,510 $73,377 $143,678
Total Capital $159,936 $473,586 ########
Total Liabilities and Capital $164,380 $477,030 $1,085,764
NET WORTH $159,936 $473,586 ########

7.7 Business Ratios

<YOUR.COMPANY.NAME>is a company that is seeking to grow rapidly in


order to seize market share in a dynamic staffing industry.

RATIO ANALYSIS
2004 2005 2006 Industry Profile:SIC?
SALES GROWTH 0.00% 23.00% 50.00%

<company name> <Phone-Email> <City-State> P:28


PERCENT OF TOTAL ASSETS 2004 2005 2006
Accounts Receivable 6.08% 2.10% 0.92%
Inventory 0.00% 0.00% 0.00%
Other Current Assets 0.61% 0.21% 0.09%
Total Current Assets 93.92% 97.90% 99.08%
Long-term Assets 6.08% 2.10% 0.92%
Total Assets 100.00% 100.00% 100.00%

Current Liabilities 22.50% 100.00% 100.00%


Long-term Liabilities 77.50% 100.00% 100.00%
Total Liabilities 2.78% 0.73% 0.32%
Net Worth $159,936 $473,586 ######

PERCENT OF SALES 2004 2005 2006


Sales 100.00% 100.00% 100.00%
Gross Margin 292.17% 338.52% 369.84%
Selling, General & Administrative Expenses 0.00% 0.00% 0.00%
Total Operating Expenses 45.22% 36.77% 24.51%
Profit Before Interest and Taxes 29.28% 33.08% 43.42%

MAIN RATIOS 2004 2005 2006


Current 2.70% 2.10% 2.10%
Quick 0.65% 0.00% 0.00%
Total Debt to Total Assets 0.00% 0.00% 0.00%
Pre-tax Return on Net Worth 304.58% 645.42% 753.29%
Pre-tax Return on Assets 313.04% 224.02% 114.41%

ADDITIONAL RATIOS 2004 2005 2006


Net Profit Margin 21.84% 24.81% 32.38%
Return on Equity 32.83% 15.49% 13.28%

ACTIVITY RATIOS 2004 2005 2006


Accounts Receivable Turnover 8.32% 3.98% 2.65%
Collection Days 29.94 81.14 54.09
Inventory Turnover 0.00% 0.00% 0.00%
Accounts Payable Turnover 50% 50% 50%
Payment Days 587.08% 0.00% 0.00%
Total Asset Turnover 68.35% 55.57% 37.05%

DEBT RATIOS 2004 2005 2006


Debt to Net Worth 2.78% 0.73% 0.32%

<company name> <Phone-Email> <City-State> P:29


Current Liab. to Liab. 22.50% 0.00% 0.00%

LIQUIDITY RATIOS 2004 2005 2006


Net Working Capital $153,380 $467,030 ######
Interest Coverage 0.49% 0.35% 0.18%

ADDITIONAL RATIOS 2004 2005 2006


Assets to Sales 68.35% 55.57% 37.05%
Current Debt/Total Assets 0.61% 0.00% 0.00%
Acid Test 2.88% 0.74% 0.32%
Sales/Net Worth 66.51% 160.11% 243.94%
Dividend Payout 100.00% 100.00% 100.00%

<company name> <Phone-Email> <City-State> P:30


<company name> <Phone-Email> <City-State> P:31

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