Else Wares Products

This sample business plan has been made available to users of Business Plan Pro, business planning
software published by Palo Alto Software, Inc. Names, loc ations and numbers may have been
changed, and substantial portions of the original plan text may have been omitted to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even c opy this plan as it exists here.
Requests for reprints, ac ademic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For product
information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1995-2009 All rights reserved.
Confidentiality Agreement
The undersigned reader ac knowledges that the information provided by

_________________________ in this business plan is confidential; therefore, reader agrees not to
disc lose it without the express written permission of _________________________.
It is ac knowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disc losure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this doc ument is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary.............................................................................................................................1
Chart: Highlights ......................................................................................................................2
1.1 Objectives ...................................................................................................................................2
1.2 Mission........................................................................................................................................2
1.3 Keys to Success ........................................................................................................................3
2.0 Company Summary.............................................................................................................................3
2.1 Start-up Summary ......................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
Chart: Start-up .........................................................................................................................5
Table: Start-up .........................................................................................................................5
2.2 Company Locations and Facilities ..........................................................................................5
2.3 Company Ownership .................................................................................................................6
3.0 Products ...............................................................................................................................................6
3.1 Product Description...................................................................................................................6
3.2 Competitive Comparison..........................................................................................................6
3.3 Sourcing ......................................................................................................................................6
3.4 Technology..................................................................................................................................6
3.5 Future Products ..........................................................................................................................6
3.6 Sales Literature ..........................................................................................................................7
4.0 Market Analysis Summary..................................................................................................................7
4.1 Market Segmentation ................................................................................................................7
Table: Market Analysis ...........................................................................................................8
Chart: Market Analysis (Pie) ..................................................................................................8
4.2 Industry Analysis .........................................................................................................................9
5.0 Strategy and Implementation Summary ............................................................................................9
5.1 Marketing Strategy.....................................................................................................................9
5.1.1 Promotion Strategy .......................................................................................................9
5.1.2 Distribution Strategy .....................................................................................................9
5.1.3 Service and Support...................................................................................................10
5.1.4 Marketing Programs ...................................................................................................10
5.1.5 Pricing Strategy...........................................................................................................10
5.2 Sales Strategy..........................................................................................................................11
Table: Sales Forecast ..........................................................................................................12
Chart: Sales Monthly.............................................................................................................13
Chart: Sales by Year.............................................................................................................13
5.3 Strategic Alliances...................................................................................................................14
5.4 Milestones ................................................................................................................................14
Table: Milestones..................................................................................................................14
Chart: Milestones ..................................................................................................................15
6.0 Management Summary ....................................................................................................................15
6.1 Personnel Plan.........................................................................................................................15
Table: Personnel ...................................................................................................................17
7.0 Financial Plan ....................................................................................................................................17
7.1 Important Assumptions............................................................................................................17
Table: General Assumptions ...............................................................................................18
7.2 Key Financial Indicators ..........................................................................................................18
Chart: Benchmarks ...............................................................................................................18
Page 1
Table of Contents
7.3 Break-even Analysis................................................................................................................18
Table: Break-even Analysis .................................................................................................19
Chart: Break-even Analysis .................................................................................................19
7.4 Projected Profit and Loss .......................................................................................................19
Table: Profit and Loss ..........................................................................................................20
Chart: Profit Monthly .............................................................................................................21
Chart: Profit Yearly................................................................................................................21
Chart: Gross Margin Monthly ...............................................................................................22
Chart: Gross Margin Yearly..................................................................................................22
7.5 Projected Cash Flow...............................................................................................................22
Table: Cash Flow..................................................................................................................23
Chart: Cash ...........................................................................................................................24
7.6 Projected Balance Sheet ........................................................................................................25
Table: Balance Sheet ...........................................................................................................25
7.7 Business Ratios .......................................................................................................................26
Table: Ratios .........................................................................................................................27
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................6
Table: Balance Sheet ................................................................................................................................7
Page 2
Elsewares Promotional Products

1.0 Executive Summary
Introduction
A market exists within the advertising specialty industry for velour and leatherette drawstring
bags, eyeglass bags, jewelry bags & pen bags to hold various promotional products to increase
their perceived value. Elsewares Promotional Products & Packaging (EPPP) has been established
to supply these logo imprinted products to advertising specialty distributors who, in turn,
market these products to the end user.
The Products
Elsewares intends to develop an inventory of unique products and drawstring pac kaging products
that can add perceived value to those products. These products, which will be sourced from
Mexico and the Far East, will be imprinted in-house with various company logos before they are
shipped to the distributors.
By joining the Advertising Specialties Institute trade association, Elsewares will have print and
electronic ac cess to a network of 13,000 to 14,000 ASI-listed advertising specialty
distributors, part of a $7 billion a year industry. This ranks only behind television and newsprint in
terms of advertising dollars spent. Elsewares will market their products exclusively through
these distributors and will not sell directly to end users. Elsewares intends to reac h those
distributors through advertisements in trade publications, through an in-house sales force, and
a network of salaried and commission-based sales reps.
Concurrent with our campaign to market these pac kaging products, we will showcase our line
of unique promotional products to the same distributors, thus giving ourselves three sales
opportunities: the sale of the promotional product by itself; the sale of some pac kaging products
that the distributor can use with promotional items that are purchased from other suppliers;
and the sale of our promotional product coupled with our pac kaging.
The Market
Sales in the advertising specialties industry have been growing at a rate of almost 7% per
year for the past dec ade and reac hed over $7 billion in sales last year. This is a very mature
industry that is crowded with suppliers and distributors. Within that industry, the three
suppliers that offer only velour and leatherette drawstring bags did a combined $2,500,000 in
sales. Those three suppliers are loc ated on the East Coast while some of largest advertising
specialty distributors in the industry are Midwest and West Coast firms. We feel that by
concentrating our efforts on marketing to the West Coast distributors, many of which already
have had positive business relationships with our personnel, we will ac quire a significant market
share of the pac kaging niche over the next three years.
Financial Considerations
A portion of our initial startup costs will be used to purchase inventory, office equipment, and
imprinting mac hinery. The balance will be used for catalog costs and initial advertising
expenses. Additionally, we project the need for additional financial commitment to finance
receivables and payroll expenses for the first 12 months of operation.
Elsewares intends to concentrate its sales force in the western United States and to reac h a
respec table sales level by the end of Year 2. With our per month fixed cost estimate and
Page 1

anticipated monthly unit sales we should hit running monthly break-even after the fourth month.
Elsewares is seeking a financial pac kage based on a note due in five years, but amortized over
15 years. The note will be personally guaranteed by the founder's assets. By amortizing the note
over 15 years, the company will be afforded the opportunity to establish a healthy trac k
record which will enable the company to seek alternate financing for the balance. It should be
noted that the owners of Elsewares do not intend to take any profits out of the business until
the long-term debt has been satisfied. Whatever profits remain after the above debt
payments will be used to finance growth, mainly through the ac quisition of additional inventory.
1.1 Objectives
Presently, the three leading suppliers of imprinted pouches to advertising spec ialty distributors
are loc ated on the East Coast and are doing a combined $2,500,000 solely in the sales of
pouches. Elsewares intends to concentrate its sales force in the western United States and to
reac h a respectable sales level by the end of Year 2. Elsewares intends to fac tor our growth
by diversifying into unique promotional product offerings which will be attrac tive as advertising
specialties in their own right, or pac kaged in a drawstring pouch which we can also provide.
1.2 Mission
Elsewares intends to develop an inventory of unique products and drawstring pac kaging products
that can add perceived value to those products. These products, which will be sourced from
Mexico and the Far East, will be imprinted in-house with various company logos before they are
shipped to the distributors.
By joining the Advertising Specialties Institute trade association, Elsewares will have print and
Page 2

electronic ac cess to a network of 13,000 to 14,000 ASI-listed advertising specialty
distributors, part of a $7 billion a year industry. This ranks only behind television and newsprint in
terms of advertising dollars spent. Elsewares will market their products exclusively through
these distributors and will not sell directly to end users. Elsewares intends to reac h those
distributors through advertisements in trade publications, through an in-house sales force, and
a network of salaried and commission-based sales reps.
1.3 Keys to Success

Elsewares management believes that it has the right products and the right people to attrac t a
loyal customer base. But most importantly, it is our business philosophy that will ensure success.
The advertising spec ialty industry demands that products be delivered on time and with high
quality imprinting. Pursuant to these demands:
Elsewares will satisfy this demand by maintaining ac ceptable inventory levels that will be
delivered on time ac cording to pre-arranged shipping schedules.
Elsewares will institute a quality control proc edure for overseeing the on-site imprinting fac ility to
ensure an ac ceptable imprint quality.
In addition to offering a complete line of velour pac kaging products, Elsewares will offer a
unique line of promotional products that will encourage advertising specialty distributors to
think of our company first when looking for original products.
2.0 Company Summary

Elsewares is a new company to be established based on this plan.
2.1 Start-up Summary

Our initial startup costs will include the purchase of inventory, office equipment, and imprinting
mac hinery, as well as catalog costs and initial advertising expenses. Additionally, we project
the need for a further financial commitment to finance receivables and payroll expenses for the
first 12 months of operation.
Page 3

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$17,600
$182,400
$200,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
$65,000
$117,400
$0
$117,400
Total Assets
$182,400
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$0
$0
$0
$0
Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
$0
$200,000
$0
Total Planned Investment
$200,000
Loss at Start-up (Start-up Expenses)
($17,600)
Total Capital
$182,400
Total Capital and Liabilities
$182,400
Total Funding
$200,000
Page 4
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
$1,500
$700
$4,000
$1,200
$600
Rent
Accounting
Other
$9,000
$600
$0
Total Start-up Expenses
$17,600
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
$117,400
$40,000
$20,000
Long-term Assets
Total Assets
$5,000
$182,400
Total Requirements
$200,000
2.2 Company Locations and Facilities

This is proprietary information, omitted on this sample plan, not relevant for purpose of examples.
Page 5

2.3 Company Ownership
This is proprietary information, omitted on this sample plan.
3.0 Products
The product and service description in this sample plan has been omitted bec ause it contains
proprietary and strategic information. In the original plan, products and services were described
in detail.
3.1 Product Description

in detail.
3.2 Competitive Comparison

in detail.
3.3 Sourcing
in detail.
3.4 Technology
in detail.
3.5 Future Products

Page 6

in detail.
3.6 Sales Literature

in detail.
4.0 Market Analysis Summary

By definition, the advertising specialties industry deals with the sale of promotional products.
These products can be prac tical, informative, entertaining and/or dec orative products most
often imprinted with the sponsoring advertiser's name, logo, slogan, or message, and almost
always retained and appreciated by the end recipients who received them free of charge.
Sales in the advertising specialties industry have been growing at a rate of almost 7% per year
since 1988 and reac hed over $7 billion in sales last year. Within that industry, the three suppliers
that offer only velour and leatherette drawstring bags did a combined $2,500,000 in sales. Those
three suppliers are loc ated on the East Coast while some of largest advertising spec ialty
distributors in the industry are Midwest and West Coast firms. We feel that by concentrating our
efforts on marketing to the West Coast distributors, many of which already have had positive
business relationships with our personnel, we will ac quire a significant market share of the
pac kaging niche over the next three years.
Concurrent with our campaign to market these pac kaging products, we will showcase our line
of unique promotional products to the same distributors, thus giving ourselves three sales
opportunities: the sale of the promotional product by itself; the sale of some pac kaging products
that the distributor can use with promotional items that are purchased from other suppliers;
and the sale of our promotional product coupled with our pac kaging.
4.1 Market Segmentation

Below are the major product segments of the advertising specialties market and their
corresponding percentage of the total market as measured by large distributor dollar sales:
Wearables [i.e. T-shirts, jac kets, & caps]: 22.2%

Writing Instruments [i.e. pens & pencils]: 13.1%
Glassware & Ceramics [i.e. mugs]: 9.9%
Recognition Awards [i.e. trophies, plaques, emblematic jewelry]: 9.8%
Desk & Office Ac cessories: 9.2%
Calendars: 7.8%
Sporting Goods and Leisure Products: 6.9%
Buttons, Badges, & Ribbons: 6.8%
Auto Ac cessories [i.e. key fobs, sun screens]: 4.2%
There are presently some 2,800 suppliers listed by ASI that are selling over 390,000 different
promotional products to over 13,000 advertising specialty distributors. This ASI listed
distributor network serves as a large sales force for the suppliers by ac tively selling
Page 7

promotional products to the public and then directing that business to ASI listed suppliers with
whom they are familiar. The ASI listed distributors offer the suppliers' products to a multisegmented end-user market. Below are the major segments of this market listed in order of
size as measured by dollars spent:
Clubs, Associations, & Civic Groups

Financial [i.e. banks, investor groups, financial professionals]
Sc hools and Colleges
Service Businesses
Insurance Agencies
Retail Stores
Industrial Products Companies
Table: Market Analysis

Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers
Wearables
Writing Instruments
Recognition Awards
Desk/Office Accessories
Calendars
Sporting Goods
Button, Badge, Ribbon
Growth
12%
22%
10%
9%
8%
7%
7%
12,000
21,000
10,000
34,000
18,000
45,000
20,000
13,440
25,620
11,000
37,060
19,440
48,150
21,400
15,053
31,256
12,100
40,395
20,995
51,521
22,898
16,859
38,132
13,310
44,031
22,675
55,127
24,501
18,882
46,521
14,641
47,994
24,489
58,986
26,216
CAGR
12.00%
22.00%
10.00%
9.00%
8.00%
7.00%
7.00%
Auto Accessories
Glassware & Ceramics
Other
Total
4%
10%
0%
9.43%
34,000
23,000
0
217,000
35,360
25,300
0
236,770
36,774
27,830
0
258,822
38,245
30,613
0
283,493
39,775
33,674
0
311,178
4.00%
10.00%
0.00%
9.43%
Page 8

4.2 Industry Analysis
As you may expec t, we will be entering a very mature industry that is crowded with suppliers
and distributors. As with any product-oriented business, it is important to maintain a
competitively priced product line. The safest way to increase overall margins will be to
continuously introduce new products which will remain exclusive offerings for a period of time.
When the competition has found a way to source similar products, the margins will adjust
downward, driven by competitive market forces. It will be critical for Elsewares to keep one
step ahead of the competition by having a new product ready for introduction when the
margins slip. Thus, a new cycle of disc overy will begin. We intend to be the originators and not
the imitators.
Service and support may ac tually be more important to a majority of distributors than price
points. After all, they are putting their reputations on the line when they afford our company the
opportunity to fulfill their clients needs. On-time delivery of quality imprinted product will be
crucial to our success.
5.0 Strategy and Implementation Summary

Our marketing strategy is to get our foot in the distributor's door by offering them drawstring
pouches as pac kaging products to add to the perceived value and profit on the promotional
products they have already sold. Once we have established a business relationship and they
have had a positive customer service experience with our company, we intend to offer them
products in addition to the pac kaging items.
5.1 Marketing Strategy

We intend to foc us on Midwest and West Coast distributors who have had to look to the East
Coast as the only source of supply for their bag needs. Along with our on-time shipping
commitment, we will foc us on the quality and durability of our imprinting proc ess, guaranteeing
their quality so that distributors can ensure their clients that their message will be around for
a while.
5.1.1 Promotion Strategy

All advertising will be disseminated through ASI publications. This will pinpoint the only market
that we are attempting to reac h, ASI listed distributors. We must market the product
successfully to the distributor so that it is appealing enough for him to turn around and market it
to the end user.
5.1.2 Distribution Strategy

Elsewares will sell its products exclusively through ASI listed distributors. Because many specialty
advertising distributors are wary of doing business with suppliers whom they believe to be
Page 9

"dealing direct", all direct inquiries will be directed to a distributor with whom we already have
a business relationship. Distributors invest a significant portion of their selling time to finding,
sc reening and qualifying spec ialty advertising buyers and convincing them that the suppliers
products have a plac e and purpose in their ac tivities, and are consequently predisposed to avoid
doing business with suppliers who compete with them.
5.1.3 Service and Support

Offering the highest level of customer service to our distributor network will be crucial to
Elsewares' long-term success. Logo imprints will have to be of the highest quality and product
shipping deadlines must be met. Because products will always be bought for a spec ific event or
promotion, it will be important to support the distributors in resolving any legitimate conflicts
between them and the end user.
5.1.4 Marketing Programs

Our main marketing program will revolve around the plac ement of our full line, full color catalog
and price list in The Counselor which is the industry's leading trade magazine of news, new
products and market trends. This magazine is mailed to the over 13,0000 advertising specialty
distributors listed with ASI. Reprints, with additional information about our company, will be
mailed out approximately two weeks later to these same distributors as well as our own sales
reps, offering samples of both our products and imprinting capabilities.
Secondly, the same catalog will be plac ed in the next annual edition of Media File which is a
compilation of full page ads of participating suppliers. This catalog is sent to the ASI
distributors who in turn give it to their sales people to use when offering various products to
the end user. In some cases, distributors also give these catalogs to buyers who do a large
volume of business with them.
Thirdly, as Elsewares brings new products into their line before the next annual catalog is printed
and distributed, we will introduce these products to the advertising spec ialty industry through
postcards featuring the product on one side and our mailing address on the other. These cards
are bundled with other supplier cards for mailing and then bound into The Counselor magazine
about six weeks later.
Elsewares will also only hire industry experienced sales reps of the highest caliber. In many
cases, they will be the only representatives to call on distributors in person and will subsequently
leave a lasting impression of our company. They will not be expec ted to close sales, but will be
expec ted to represent our products in a competitive atmosphere. Their loyalty will be courted
and rewarded through a compensation pac kage combining both a salary and commission.
5.1.5 Pricing Strategy

In the fifty years of business experience that we have ac cumulated, one message rings true:
someone can always beat you on price. Therefore, our pricing strategy is to be competitive
within the various product categories, but not to rely on the selling price to overshadow the
other advantages of doing business with our company. We will sell ourselves on the basis of a
quality-made, unique product line which is reasonably priced and bac ked by an extraordinary
Page 10

customer service department. The products will be chec ked prior to shipment and all promised
shipping deadlines will be met.
5.2 Sales Strategy

Because Elsewares is a new entity, we understand that we will have to prove our company's
worth to distributors in order to earn their respec t and business. Elsewares will promptly honor all
dealer requests for product and imprinting samples. We will offer a toll-free 800 number phone
line and have a full-time, dedicated customer service person to meet distributors' needs.
While the network of sales reps is bringing our product line to the attention of the ASI listed
distributors, our in-house sales department will be calling on some of the larger West Coast
distributors. We have hired a consultant who has had ongoing business relationships with many
of these distributors over the last 24 years and we are counting on him to help us meet our sales
objectives right from the start.
Page 11

Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Unit Sales
Velour Drawstring Pouch
Leather Drawstring Pouch
Round Bottom Pouch
Pen/Mug & Eyeglass Bag
Metal Lip Eyeglass Bag
Assorted Jewelry Rolls
Satin Bags
Message Imprinting
Die Charges
Other
Total Unit Sales
479,000
216,000
75,000
60,000
25,000
22,500
24,250
900,750
495
0
1,802,995
574,800
259,200
90,000
72,000
30,000
27,000
29,100
1,080,900
618
0
2,163,618
689,760
311,040
108,000
86,400
36,000
32,400
34,920
1,297,080
742
0
2,596,342
Unit Prices
Round Bottom Pouch
Year 1
$0.22
$0.36
$0.80
Year 2
$0.24
$0.40
$0.84
Year 3
$0.27
$0.44
$0.88

Satin Bags
Message Imprinting
Die Charges
$0.54
$0.60
$5.00
$0.44
$0.10
$37.50
$0.59
$0.66
$5.50
$0.48
$0.11
$41.25
$0.65
$0.73
$6.05
$0.53
$0.12
$45.38
$0.00
$0.00
$0.24
Sales
Round Bottom Pouch
$105,380
$77,760
$60,000
$137,952
$103,680
$75,600
$186,235
$136,858
$95,040

$32,400
$15,000
$112,500
$42,480
$19,800
$148,500
$56,160
$26,280
$196,020
Satin Bags
Message Imprinting
Die Charges
Other
Total Sales
$10,670
$90,075
$18,563
$0
$522,348
$13,968
$118,899
$25,493
$0
$686,372
$18,508
$155,650
$33,672
$0
$904,422
Direct Unit Costs

Year 1
$0.11
$0.18
Year 2
$0.12
$0.19
Year 3
$0.12
$0.20
Round Bottom Pouch

Satin Bags
Message Imprinting
$0.40
$0.27
$0.30
$2.50
$0.22
$0.07
$0.42
$0.28
$0.32
$2.63
$0.23
$0.07
$0.44
$0.30
$0.33
$2.76
$0.24
$0.08
$25.00
$0.00
$26.25
$0.00
$27.56
$0.00
$52,690
$38,880
$30,000
$68,976
$49,248
$37,800
$82,771
$62,208
$47,520
Other
Die Charges
Other
Direct Cost of Sales
Round Bottom Pouch
Page 12

Satin Bags
Message Imprinting
Die Charges
Other
Subtotal Direct Cost of Sales
$16,200
$20,160
$25,920
$7,500
$56,250
$5,335
$63,053
$12,375
$0
$282,283
$9,600
$71,010
$6,693
$75,663
$16,223
$0
$355,373
$11,880
$89,424
$8,381
$103,766
$20,450
$0
$452,320
Page 13

5.3 Strategic Alliances
The performance of Elsewares will be indelibly linked to the performance of the distributors that
purchase our product. It is therefore paramount to the fulfillment of our business objectives that
we cultivate customer loyalty with a network of distributors that are both c redit worthy and
ac tive in selling the types of products we offer. The Advertising Specialty Institute offers
suppliers a subsc ription to a market and credit service that will help us to pinpoint our
marketing effort along those lines.
5.4 Milestones
Sample Milestones topic text.
The milestones table and chart show the spec ific detail about ac tual program ac tivities that
should be taking plac e during the year. Each one has its manager, starting date, ending date,
and budget. During the year we will be keeping trac k of implementation against plan, with reports
on the timely completion of these ac tivities as planned.
Table: Milestones
Milestones
Milestone
Sample Milestones
Start Date
1/4/2008
End Date
1/4/2008
Budget
$0
Manager
ABC
Department
Department
Finish Business Plan

Acquire Financing
Ah HA! Event
6/4/2009
6/14/2009
6/24/2009
7/4/2009
8/3/2009
6/29/2009
$100
$200
$60
Dude
Dudette
Marianne
Boss
Legumers
Bosses
7/24/2009
8/3/2009
7/4/2009
11/29/2009
4/2/2010
3/1/2010
5/20/2010
7/29/2009
8/8/2009
7/29/2009
12/6/2009
5/2/2010
3/31/2010
5/22/2010
$250
$500
$1,000
$0
$0
$150
$100
$2,360
Marionette
Gloworm
Glower
Galore
Bouys
Gulls
Brass
Bouc missaire
Nobs
Marketeers
Alles
Salers
HRM
Bossies
Ah Merde Alors! Event

Grande Opening
Marketing Program Starts
Plan vs. Actual Review
First Break-even Month
Hire Employees
Upgrade Business Plan Pro
Totals
Page 14
6.0 Management Summary

Elsewares is organized into three main functional areas: product sourcing, sales, and
marketing; production and shipping; and finance and administration.
Edie Greenbaum: President and founder. Mrs. Greenbaum ran the financial department for a
start-up retail operation whose sales rose to just under one million dollars in seven years. She
has also spent the last year and a half heading up the sales department of an ASI listed
advertising specialties supplier. Mrs. Greenbaum holds a B.A. from U.C.L.A., is married, and is
the mother of one child.
Gary Greenbaum: Co-founder. Mr. Greenbaum ran the day-to-day operations of the previously
mentioned retail operation as a partner with Mrs. Greenbaum. Mr. Greenbaum holds a B.A. from
Franklin & Marshal College, is married, and is the father of one child.
Marvin Rosenbaum: Consultant. Mr. Rosenbaum has been associated with the Advertising
Specialties industry for just under 25 years and holds the credentials of a C.A.S. or Certified
Advertising Specialist. Over the years, Mr. Rosenbaum has been hired by both suppliers and
distributors that are either starting a new company, as we are, or that are attempting to
penetrate the advertising specialties market with products they are already distributing to
other markets. Mr. Rosenbaum has been responsible for the successful entry of many
companies into this industry and has maintained extensive business contac ts with many of the
industry leaders. Mr. Rosenbaum is married and is the father of two children.
6.1 Personnel Plan

The cornerstone of the personnel plan is to maximize production and minimize the labor burden
Page 15

on the company's operating expenses. Pursuant to that goal, the initial payroll will consist of
the following disbursements:
Until increases in sales can support additional salaries, Edie Greenbaum will oversee the
operations of Elsewares in an unsalaried position. Mrs. Greenbaum will be responsible for the
day-to-day operations including personnel company policies, as well as overseeing the sales
and marketing departments.
The sales and marketing department will be headed by Marvin Rosenbaum who has been hired
as an independent consultant. Mr. Rosenbaum will be responsible for initiating new leads with the
ASI distributor network and for re-establishing existing contac ts with distributors with whom he
has had a previous business relationship. Mr. Rosenbaum will also oversee the network of
commissions based sales reps who will call on distributors in their pre-assigned territories. The
sales department will be supplemented by Edie Greenbaum, who will also be responsible for calling
on distributors as directed by Mr. Rosenbaum.
Mr. Greenbaum will be responsible for running the customer service department, which will
include handling phone orders and catalog requests. Additionally, Mr. Greenbaum will be
responsible for running the company's computer operations and is expec ted to play an
important role in sourcing new products.
Until increases in sales justify the additional staffing of this department, Mr. Greenbaum will be
responsible for assorted secretarial duties in addition to the previously mentioned duties. We
are projecting the division of this department into two positions at approximately the
fourteenth month of business. Mr. Greenbaum will then shift his duties to marketing and sourcing,
and a new employee will take over the customer service department and its related duties.
Elsewares will rely on part-time help for its imprinting, warehousing, and shipping labor
requirements. Naturally, as the need arises, this all-encompassing area will be split into two
departments. A full-time production person will run the imprinting department, while a second
person will be hired to handle both shipping and receiving. We are projecting the need for this
additional labor burden at approximately the eleventh month of business.
Page 16

Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Production Personnel
Imprint
Shipping
Name or Title or Group
Subtotal
$14,000
$14,000
$0
$28,000
$15,000
$15,000
$0
$30,000
$16,000
$16,000
$0
$32,000
Sales and Marketing Personnel

Marvin
Sales Reps
Subtotal
$30,000
$24,000
$0
$54,000
$33,000
$26,000
$0
$59,000
$36,000
$28,000
$0
$64,000
General and Administrative Personnel

Customer Service
Subtotal
$36,000
$0
$0
$36,000
$40,000
$0
$0
$40,000
$45,000
$0
$0
$45,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
Total Payroll
$118,000
$129,000
$141,000
Other Personnel
Subtotal
7.0 Financial Plan

Elsewares is seeking a financial pac kage based on a note due in five years, but amortized over
15 years. The note will be personally guaranteed by the Greenbaums' assets. By amortizing the
note over 15 years, the company will be afforded the opportunity to establish a healthy trac k
record which will enable the company to seek alternate financing for the balance. In light of that
strategy, Elsewares proposes the following paybac k sc hedule:
Months
Months
Months
Months
1-12: No paybac k of principal or interest

13-24: 15% interest plus 10% net profit
It should be noted that the owners of Elsewares do not intend to take any profits out of the
business until the long-term debt has been satisfied. Whatever profits remain after the above
debt payments will be used to finance growth, mainly through the ac quisition of additional
inventory.
7.1 Important Assumptions
Page 17

General assumptions for this plan are on the following table.
Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Year 1
1
10.00%
Year 2
2
10.00%
Year 3
3
10.00%
Long-term Interest Rate

Tax Rate
Other
10.00%
0.00%
0
10.00%
0.00%
0
10.00%
0.00%
0
7.2 Key Financial Indicators

The most important indicator in our case is inventory turnover. We have to make sure that our
inventory of drawstring bags and any other pac kaging products turns over a minimum of five
times to avoid a negative impac t on our cost of goods sold and on our cash flow.
Collection Days: These are very important. It may be nec essary to implement a
variety of payment terms with different distributors, depending on their payment
history. In extreme cases, prepayment of orders may be the only extendible terms. We
will rely heavily on our subsc ription to the ASI Credit Service for this valuable pre-sale
information.
Gross Margins: We must maintain gross margins of 90% at the least, and hold marketing
costs to no more than 20% of sales.
7.3 Break-even Analysis

Page 18

The following table and chart illustrate our break-even analysis with our per month fixed cost
estimate, and what we need to sell to break-even in a month. Given the estimates, we hit
running monthly break-even after the fourth month.
Table: Break-even Analysis

Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
150,522
$43,608
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$0.29
$0.16
$20,042
7.4 Projected Profit and Loss

The following table shows the projected profits. Monthly projections are included in the
appendix.
Page 19

Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Production Payroll
Other Costs of Sales
Total Cost of Sales
Year 1
$522,348
$282,283
$28,000
$0
$310,283
Year 2
$686,372
$355,373
$30,000
$0
$385,373
Year 3
$904,422
$452,320
$32,000
$0
$484,320
Gross Margin
Gross Margin %
$212,065
40.60%
$300,999
43.85%
$420,102
46.45%
Sales and Marketing Expenses

Sales and Marketing Payroll
Advertising/Promotion
Travel
Miscellaneous
Other Sales and Marketing Expenses
$54,000
$44,000
$18,900
$6,000
$0
$59,000
$48,400
$20,790
$6,600
$0
$64,000
$53,240
$22,869
$7,260
$0
Total Sales and Marketing Expenses

Sales and Marketing %
$122,900
23.53%
$134,790
19.64%
$147,369
16.29%
General and Administrative Expenses

General and Administrative Payroll
Marketing/Promotion
$36,000
$0
$40,000
$0
$45,000
$0
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other General and Administrative
Expenses
$0
$36,000
$42,000
$3,600
$0
$0
$0
$39,600
$46,200
$3,960
$0
$0
$0
$43,560
$50,820
$4,356
$0
$0
Total General and Administrative

Expenses
General and Administrative %
$117,600
$129,760
$143,736
22.51%
18.91%
15.89%
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
0.00%
Total Operating Expenses
$240,500
$264,550
$291,105
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
($28,435)
($28,435)
$1,042
$0
$36,449
$36,449
$13,750
$0
$128,997
$128,997
$25,000
$0
Net Profit
Net Profit/Sales
($29,477)
-5.64%
$22,699
3.31%
$103,997
11.50%
Operating Expenses
Other Expenses:
Other Payroll
Consultants
Other Expenses
Total Other Expenses
Other %
Page 20
Page 21
7.5 Projected Cash Flow

The following table shows cash flow for the three years, and the chart illustrates monthly cash
flow in the first year. Monthly cash flow projections are included in the appendix.
Page 22

Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash from Operations

Cash Sales
Cash from Receivables
Subtotal Cash from Operations
$0
$329,034
$329,034
$0
$625,669
$625,669
$0
$823,725
$823,725
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
$0
$75,000
$0
$0
$0
$0
$100,000
$504,034
$0
$125,000
$0
$0
$0
$0
$0
$750,669
$0
$100,000
$0
$0
$0
$0
$0
$923,725
Year 1
Year 2
Year 3
$118,000
$388,415
$506,415
$129,000
$545,517
$674,517
$141,000
$661,145
$802,145
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Other Current Assets

Purchase Long-term Assets
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Spent
$506,415
$674,517
$802,145
Net Cash Flow

Cash Balance
($2,381)
$115,019
$76,152
$191,171
$121,579
$312,750
Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Page 23
Page 24

7.6 Projected Balance Sheet
The projected balance sheet is shown in the following table, with monthly projections in the
appendix.
Table: Balance Sheet

Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
$115,019
$193,314
$58,451
$20,000
$386,784
$191,171
$254,016
$48,568
$20,000
$513,756
$312,750
$334,714
$62,500
$20,000
$729,964
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$5,000
$0
$5,000
$391,784
$5,000
$0
$5,000
$518,756
$5,000
$0
$5,000
$734,964
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$63,860
$75,000
$0
$138,860
$43,133
$200,000
$0
$243,133
$55,344
$300,000
$0
$355,344
Total Liabilities
$0
$138,860
$0
$243,133
$0
$355,344
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$300,000
($17,600)
($29,477)
$252,923
$391,784
$300,000
($47,077)
$22,699
$275,622
$518,756
$300,000
($24,378)
$103,997
$379,619
$734,964
Net Worth
$252,923
$275,622
$379,619
Assets
Page 25

7.7 Business Ratios
The table shows projected business ratios. The Industry Profile columns show statistics for
Standard Industry Code (SIC) #5199, Nondurable Goods.
Page 26

Table: Ratios
Ratio Analysis
Year 1
n.a.
Year 2
31.40%
Year 3
31.77%
Industry Profile
6.22%
49.34%
14.92%
5.10%
98.72%
1.28%
100.00%
48.97%
9.36%
3.86%
99.04%
0.96%
100.00%
45.54%
8.50%
2.72%
99.32%
0.68%
100.00%
25.36%
29.49%
32.72%
87.57%
12.43%
100.00%
35.44%
0.00%
35.44%
64.56%
46.87%
0.00%
46.87%
53.13%
48.35%
0.00%
48.35%
51.65%
40.17%
13.54%
53.71%
46.29%
100.00%
100.00%
100.00%
100.00%
40.60%
50.66%
8.41%
-5.44%
43.85%
46.18%
7.40%
5.31%
46.45%
40.34%
6.17%
14.26%
20.49%
7.02%
0.70%
1.79%
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
2.79
2.36
35.44%
-11.65%
-7.52%
2.11
1.91
46.87%
8.24%
4.38%
2.05
1.88
48.35%
27.40%
14.15%
1.87
1.00
57.19%
4.61%
10.77%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
-5.64%
-11.65%
Year 2
3.31%
8.24%
Year 3
11.50%
27.40%
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
2.70
54
9.21
7.08
2.70
119
6.64
12.17
2.70
119
8.14
12.17
n.a
n.a
n.a
n.a
Payment Days
Total Asset Turnover
27
1.33
37
1.32
27
1.23
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
0.55
1.00
0.88
1.00
0.94
1.00
n.a
n.a
$247,923
$270,622
$374,619
n.a
-27.30
2.65
5.16
n.a
0.75
35%
0.97
2.07
0.76
47%
0.87
2.49
0.81
48%
0.94
2.38
n.a
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Main Ratios
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Page 27

Dividend Payout
0.00
0.00
0.00
n.a
Page 28
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
0%
7,000
7,000
15,000
25,000
25,000
50,000
50,000
50,000
50,000
50,000
75,000
75,000
0%
1,500
1,500
3,000
5,000
5,000
10,000
10,000
10,000
10,000
10,000
75,000
75,000
Round Bottom Pouch

0%
0%
2,250
1,800
2,250
1,800
3,000
2,400
3,750
3,000
3,750
3,000
7,500
6,000
7,500
6,000
7,500
6,000
7,500
6,000
7,500
6,000
11,250
9,000
11,250
9,000

Satin Bags
0%
0%
0%
750
675
750
750
675
750
1,000
900
1,000
1,250
1,125
1,250
1,250
1,125
1,250
2,500
2,250
2,500
2,500
2,250
2,500
2,500
2,250
2,500
2,500
2,250
2,500
2,500
2,250
2,500
3,750
3,375
3,375
3,750
3,375
3,375
Message Imprinting
Die Charges
0%
0%
14,725
20
14,725
20
25,300
25
40,375
30
40,375
30
80,750
50
80,750
50
80,750
50
80,750
50
80,750
50
180,750
60
180,750
60
Other
0%
Unit Sales
Total Unit Sales
29,470
29,470
51,625
80,780
80,780
161,550
161,550
161,550
161,550
161,550
361,560
361,560
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

Round Bottom Pouch
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.22
$0.36
$0.80
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54
$0.54

$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.60
$5.00
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.44
$0.10
$37.50
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,540
$1,540
$3,300
$5,500
$5,500
$11,000
$11,000
$11,000
$11,000
$11,000
$16,500
$16,500

Round Bottom Pouch
$540
$1,800
$540
$1,800
$1,080
$2,400
$1,800
$3,000
$1,800
$3,000
$3,600
$6,000
$3,600
$6,000
$3,600
$6,000
$3,600
$6,000
$3,600
$6,000
$27,000
$9,000
$27,000
$9,000
$972
$972
$1,296
$1,620
$1,620
$3,240
$3,240
$3,240
$3,240
$3,240
$4,860
$4,860
$450
$450
$600
$750
$750
$1,500
$1,500
$1,500
$1,500
$1,500
$2,250
$2,250
$3,375
$3,375
$4,500
$5,625
$5,625
$11,250
$11,250
$11,250
$11,250
$11,250
$16,875
$16,875
Satin Bags
Message Imprinting
$330
$1,473
$330
$1,473
$440
$2,530
$550
$4,038
$550
$4,038
$1,100
$8,075
$1,100
$8,075
$1,100
$8,075
$1,100
$8,075
$1,100
$8,075
$1,485
$18,075
$1,485
$18,075
$750
$750
$938
$1,125
$1,125
$1,875
$1,875
$1,875
$1,875
$1,875
$2,250
$2,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$11,230
$11,230
$17,084
$24,008
$24,008
$47,640
$47,640
$47,640
$47,640
$47,640
$98,295
$98,295
Satin Bags
Message Imprinting
Die Charges
Other
Sales
Die Charges
Other
Total Sales
Page 1
Appendix
Direct Unit Costs
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

Round Bottom Pouch
0.00%
0.00%
0.00%
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40
$0.11
$0.18
$0.40

0.00%
0.00%
0.00%
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
$0.27
$0.30
$2.50
Satin Bags
0.00%
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
$0.22
Message Imprinting
Die Charges
0.00%
0.00%
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
$0.07
$25.00
Other
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$770
$270
$770
$270
$1,650
$540
$2,750
$900
$2,750
$900
$5,500
$1,800
$5,500
$1,800
$5,500
$1,800
$5,500
$1,800
$5,500
$1,800
$8,250
$13,500
$8,250
$13,500
Round Bottom Pouch
$900
$900
$1,200
$1,500
$1,500
$3,000
$3,000
$3,000
$3,000
$3,000
$4,500
$4,500

$486
$225
$1,688
$486
$225
$1,688
$648
$300
$2,250
$810
$375
$2,813
$810
$375
$2,813
$1,620
$750
$5,625
$1,620
$750
$5,625
$1,620
$750
$5,625
$1,620
$750
$5,625
$1,620
$750
$5,625
$2,430
$1,125
$8,438
$2,430
$1,125
$8,438
Satin Bags
Message Imprinting
Die Charges
Other
Subtotal Direct Cost of Sales
$165
$1,031
$500
$0
$6,034
$165
$1,031
$500
$0
$6,034
$220
$1,771
$625
$0
$9,204
$275
$2,826
$750
$0
$12,999
$275
$2,826
$750
$0
$12,999
$550
$5,653
$1,250
$0
$25,748
$550
$5,653
$1,250
$0
$25,748
$550
$5,653
$1,250
$0
$25,748
$550
$5,653
$1,250
$0
$25,748
$550
$5,653
$1,250
$0
$25,748
$743
$12,653
$1,500
$0
$53,138
$743
$12,653
$1,500
$0
$53,138
Page 2
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Production Personnel
Imprint
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$2,000
$2,000
Shipping
Subtotal
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$1,000
$0
$2,000
$2,000
$0
$4,000
$2,000
$0
$4,000
Sales and Marketing Personnel

Marvin
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
Sales Reps
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000

Subtotal
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
$0
$4,500
Customer Service
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000

Subtotal
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
Other Personnel
$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
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
Total Payroll
$9,500
$9,500
$9,500
$9,500
$9,500
$9,500
$9,500
$9,500
$9,500
$9,500
$11,500
$11,500
General and Administrative Personnel
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Month 1
$11,230
$6,034
Month 2
$11,230
$6,034
Month 3
$17,084
$9,204
Month 4
$24,008
$12,999
Month 5
$24,008
$12,999
Month 6
$47,640
$25,748
Month 7
$47,640
$25,748
Month 8
$47,640
$25,748
Month 9
$47,640
$25,748
Month 10
$47,640
$25,748
Month 11
$98,295
$53,138
Month 12
$98,295
$53,138
Production Payroll
Other Costs of Sales
Total Cost of Sales
$2,000
$0
$8,034
$2,000
$0
$8,034
$2,000
$0
$11,204
$2,000
$0
$14,999
$2,000
$0
$14,999
$2,000
$0
$27,748
$2,000
$0
$27,748
$2,000
$0
$27,748
$2,000
$0
$27,748
$2,000
$0
$27,748
$4,000
$0
$57,138
$4,000
$0
$57,138
$3,195
28.45%
$3,195
28.45%
$5,880
34.42%
$9,009
37.52%
$9,009
37.52%
$19,893
41.76%
$19,893
41.76%
$19,893
41.76%
$19,893
41.76%
$19,893
41.76%
$41,158
41.87%
$41,158
41.87%
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$0
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$4,000
Travel
Miscellaneous
Other Sales and Marketing
Expenses
$300
$500
$0
$300
$500
$0
$2,000
$500
$0
$500
$500
$0
$4,000
$500
$0
$5,000
$500
$0
$500
$500
$0
$300
$500
$0
$500
$500
$0
$4,000
$500
$0
$500
$500
$0
$1,000
$500
$0
Total Sales and Marketing

Expenses
Sales and Marketing %
$5,300
$9,300
$11,000
$9,500
$13,000
$14,000
$9,500
$9,300
$9,500
$13,000
$9,500
$10,000
47.20%
82.82%
64.39%
39.57%
54.15%
29.39%
19.94%
19.52%
19.94%
27.29%
9.66%
10.17%
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
$3,000
$0
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
General and Administrative Expenses

General and Administrative Payroll
Marketing/Promotion
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$3,000
$3,500
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
$300
$0
Other General and Administrative

Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total General and Administrative

Expenses
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
$9,800
87.27%
87.27%
57.37%
40.82%
40.82%
20.57%
20.57%
20.57%
20.57%
20.57%
9.97%
9.97%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Rent
Utilities
Insurance
Payroll Taxes
General and Administrative %

Other Expenses:
Other Payroll
20%
Page 4
Appendix
Consultants
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$15,100
$19,100
$20,800
$19,300
$22,800
$23,800
$19,300
$19,100
$19,300
$22,800
$19,300
$19,800
($11,905)
($15,905)
($14,921)
($10,291)
($13,791)
($3,908)
$593
$793
$593
($2,908)
$21,858
$21,358
EBITDA
Interest Expense
($11,905)
$0
($15,905)
$0
($14,921)
$0
($10,291)
$0
($13,791)
$0
($3,908)
$0
$593
$0
$793
$0
$593
$0
($2,908)
$0
$21,858
$417
$21,358
$625
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($11,905)
-106.01%
($15,905)
-141.63%
($14,921)
-87.34%
($10,291)
-42.87%
($13,791)
-57.45%
($3,908)
-8.20%
$593
1.24%
$793
1.66%
$593
1.24%
($2,908)
-6.10%
$21,441
21.81%
$20,733
21.09%
Other Expenses
Total Other Expenses
Other %
Total Operating Expenses
Taxes Incurred
Net Profit
Net Profit/Sales
Page 5
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
Cash from Operations

Cash Sales
Cash from Receivables
$0
$0
$0
$374
$0
$11,230
$0
$11,425
$0
$17,314
$0
$24,008
$0
$24,795
$0
$47,640
$0
$47,640
$0
$47,640
$0
$47,640
$0
$49,329
Subtotal Cash from Operations
$0
$374
$11,230
$11,425
$17,314
$24,008
$24,795
$47,640
$47,640
$47,640
$47,640
$49,329
Cash Received
Additional Cash Received

Sales Tax, VAT, HST/GST Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing

New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,000
$0
$25,000
$0
New Long-term Liabilities

Sales of Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Investment Received

Subtotal Cash Received
$0
$0
$0
$374
$0
$11,230
$50,000
$61,425
$0
$17,314
$50,000
$74,008
$0
$24,795
$0
$47,640
$0
$47,640
$0
$47,640
$0
$97,640
$0
$74,329
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
$9,500
$253
$9,500
$7,733
$9,500
$11,657
$9,500
$13,536
$9,500
$20,634
$9,500
$29,224
$9,500
$55,454
$9,500
$37,541
$9,500
$37,354
$9,500
$37,664
$11,500
$42,862
$11,500
$94,502
Subtotal Spent on Operations
$9,753
$17,233
$21,157
$23,036
$30,134
$38,724
$64,954
$47,041
$46,854
$47,164
$54,362
$106,002
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Long-term Assets

Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$9,753
$17,233
$21,157
$23,036
$30,134
$38,724
$64,954
$47,041
$46,854
$47,164
$54,362
$106,002
Net Cash Flow
($9,753)
($16,859)
($9,927)
$38,389
($12,820)
$35,283
($40,158)
$599
$786
$476
$43,278
($31,674)
Cash Balance
$107,647
$90,788
$80,860
$119,249
$106,430
$141,713
$101,554
$102,153
$102,939
$103,415
$146,693
$115,019
Expenditures
0.00%
Expenditures from Operations
Subtotal Cash Spent
Page 6
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
$117,400
$0
$107,647
$11,230
$90,788
$22,085
$80,860
$27,939
$119,249
$40,522
$106,430
$47,215
$141,713
$70,847
$101,554
$93,692
$102,153
$93,692
$102,939
$93,692
$103,415
$93,692
$146,693
$144,347
$115,019
$193,314
Inventory
$40,000
$20,000
$177,400
$33,966
$20,000
$172,842
$27,932
$20,000
$160,804
$18,728
$20,000
$147,527
$14,299
$20,000
$194,070
$14,299
$20,000
$187,943
$28,322
$20,000
$260,882
$28,322
$20,000
$243,568
$28,322
$20,000
$244,168
$28,322
$20,000
$244,953
$28,322
$20,000
$245,429
$58,451
$20,000
$369,491
$58,451
$20,000
$386,784
Long-term Assets
Long-term Assets
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Accumulated Depreciation
Total Long-term Assets
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$0
$5,000
$182,400
$177,842
$165,804
$152,527
$199,070
$192,943
$265,882
$248,568
$249,168
$249,953
$250,429
$374,491
$391,784
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total Assets
Current Liabilities
Accounts Payable
Current Borrowing
$0
$0
$7,347
$0
$11,213
$0
$12,857
$0
$19,691
$0
$27,355
$0
$54,202
$0
$36,296
$0
$36,103
$0
$36,296
$0
$39,679
$0
$92,300
$50,000
$63,860
$75,000
Other Current Liabilities

Subtotal Current Liabilities
$0
$0
$0
$7,347
$0
$11,213
$0
$12,857
$0
$19,691
$0
$27,355
$0
$54,202
$0
$36,296
$0
$36,103
$0
$36,296
$0
$39,679
$0
$142,300
$0
$138,860
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Liabilities
$0
$7,347
$11,213
$12,857
$19,691
$27,355
$54,202
$36,296
$36,103
$36,296
$39,679
$142,300
$138,860
$200,000
($17,600)
$200,000
($17,600)
$200,000
($17,600)
$200,000
($17,600)
$250,000
($17,600)
$250,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
$300,000
($17,600)
Paid-in Capital
Retained Earnings
Earnings
$0
($11,905)
($27,810)
($42,730)
($53,021)
($66,813)
($70,720)
($70,128)
($69,335)
($68,743)
($71,650)
($50,209)
($29,477)
Total Capital
$182,400
$170,495
$154,591
$139,670
$179,379
$165,588
$211,680
$212,273
$213,065
$213,658
$210,750
$232,191
$252,923
Total Liabilities and Capital
$182,400
$177,842
$165,804
$152,527
$199,070
$192,943
$265,882
$248,568
$249,168
$249,953
$250,429
$374,491
$391,784
Net Worth
$182,400
$170,495
$154,590
$139,670
$179,379
$165,587
$211,680
$212,272
$213,065
$213,657
$210,750
$232,191
$252,923
Page 7

Else Wares Products

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Else Wares Products

Uploaded by

Copyright:

Available Formats

This sample business plan has been made available to users of Business Plan Pro, business planning

The undersigned reader ac knowledges that the information provided by

Elsewares Promotional Products

Elsewares Promotional Products

Elsewares Promotional Products

1.3 Keys to Success

2.0 Company Summary

2.1 Start-up Summary

Elsewares Promotional Products

Liabilities and Capital

Total Planned Investment

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

Elsewares Promotional Products

Total Start-up Expenses

2.2 Company Locations and Facilities

Elsewares Promotional Products

3.1 Product Description

3.2 Competitive Comparison

3.5 Future Products

Elsewares Promotional Products

3.6 Sales Literature

4.0 Market Analysis Summary

4.1 Market Segmentation

Wearables [i.e. T-shirts, jac kets, & caps]: 22.2%

Elsewares Promotional Products

Clubs, Associations, & Civic Groups

Table: Market Analysis

Elsewares Promotional Products

5.0 Strategy and Implementation Summary

5.1 Marketing Strategy

5.1.1 Promotion Strategy

5.1.2 Distribution Strategy

Elsewares Promotional Products

5.1.3 Service and Support

5.1.4 Marketing Programs

5.1.5 Pricing Strategy

Elsewares Promotional Products

5.2 Sales Strategy

Elsewares Promotional Products

Pen/Mug & Eyeglass Bag

Pen/Mug & Eyeglass Bag

Direct Unit Costs

Round Bottom Pouch

Elsewares Promotional Products

Elsewares Promotional Products

Finish Business Plan

Ah Merde Alors! Event

Elsewares Promotional Products

6.0 Management Summary

6.1 Personnel Plan

Elsewares Promotional Products

Elsewares Promotional Products

Sales and Marketing Personnel

General and Administrative Personnel

7.0 Financial Plan

1-12: No paybac k of principal or interest

7.1 Important Assumptions

Elsewares Promotional Products

Table: General Assumptions

Long-term Interest Rate

7.2 Key Financial Indicators

7.3 Break-even Analysis