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Table of Contents

1.0 Executive Summary....................................................................................................................................1

Chart: Highlights.......................................................................................................................................1
1.1 Mission....................................................................................................................................................1
1.2 Objectives................................................................................................................................................2
2.0 Company Summary.....................................................................................................................................2
2.1 Company Ownership..............................................................................................................................2
2.2 Start-up Summary...................................................................................................................................2
Table: Start-up Funding............................................................................................................................3
Chart: Start-up...........................................................................................................................................4
Table: Start-up...........................................................................................................................................4
...........................................................................................................................................................................4
3.0 Services.......................................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................................5
4.1 Market Segmentation..............................................................................................................................5
Chart: Market Analysis (Pie)....................................................................................................................6
Table: Market Analysis.............................................................................................................................6
4.2 Service Business Analysis......................................................................................................................6
4.2.1 Competition and Buying Patterns....................................................................................................7
4.3 Target Market Segment Strategy............................................................................................................7
5.0 Strategy and Implementation Summary.....................................................................................................7
5.1 Competitive Edge....................................................................................................................................8
5.2 Sales Strategy..........................................................................................................................................8
5.2.1 Sales Forecast...................................................................................................................................9
Chart: Sales Monthly............................................................................................................................9
Table: Sales Forecast............................................................................................................................9
5.3 Milestones.............................................................................................................................................10
Table: Milestones....................................................................................................................................10
6.0 Management Summary.............................................................................................................................10
6.1 Personnel Plan.......................................................................................................................................11
Table: Personnel......................................................................................................................................11
7.0 Financial Plan............................................................................................................................................11
7.1 Important Assumptions.........................................................................................................................11
Table: General Assumptions...................................................................................................................11
.....................................................................................................................................................................11
7.2 Break-even Analysis.............................................................................................................................12
Chart: Break-even Analysis....................................................................................................................12
Table: Break-even Analysis....................................................................................................................12
.....................................................................................................................................................................12
7.3 Projected Profit and Loss......................................................................................................................13
Table: Profit and Loss.............................................................................................................................13
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Table of Contents

.....................................................................................................................................................................13
7.4 Projected Cash Flow.............................................................................................................................14
Chart: Cash..............................................................................................................................................14
Table: Cash Flow....................................................................................................................................15
.....................................................................................................................................................................15
7.5 Projected Balance Sheet........................................................................................................................16
Table: Balance Sheet...............................................................................................................................16
Table: Sales Forecast.........................................................................................................................................1
...........................................................................................................................................................................1
Table: Personnel................................................................................................................................................2
...........................................................................................................................................................................2
Table: General Assumptions.............................................................................................................................3
...........................................................................................................................................................................3
Table: Profit and Loss.......................................................................................................................................4
...........................................................................................................................................................................4
Table: Cash Flow..............................................................................................................................................5
Table: Balance Sheet.........................................................................................................................................6

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The Corporate Retreat Professionals

1.0 Executive Summary

The Corporate Retreat Professionals (CRP) is an event planning company specializing in
corporate customers. CRP will offer two types of services, retreat training services as well as
product launch event planning. The retreat training services will be either leadership
development training or teaming skills training. For both types of retreats, CRP can take care
of the planning of the event, as well as actually hosting the training through the use of one of
CRP's strategic business partners.
The corporate market for event planning is steady and profitable. For some large companies,
economic downturns mean cuts in training. This is, however, only the case for shortsighted
companies. The benchmark companies may trim down the workforce during a downturn, but
they do not cut funds for training. They recognize that investing in human resources is always
a good investment. CRP intends to profit nicely from this. Additionally, even in economic
downturns, companies still have product launches and will still need someone to organize these
events. In short, the need for corporate event planning/hosting services rarely diminishes, it is
a steadily increasing demand that CRP will capitalize on.
Corporate Retreat Professionals' projected growth rate is over 100% through year three and
will have profits as a function of sales over 11% by year three. By the beginning of year two
CRP will have three employees.

Chart: Highlights

Highlights
$210,000
$180,000
$150,000

Sales

$120,000

Gross Margin
$90,000

Net Profit

$60,000
$30,000
$0
Year 1

Year 2

Year 3

1.1 Mission
The mission of the Corporate Retreat Professionals is to provide companies with the highest
level of event planning. We exist to attract and maintain customers. When we adhere to this

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The Corporate Retreat Professionals

maxim, everything else will fall into place. Our services will exceed the expectations of our
customers.
1.2 Objectives
CRP's objectives for the first three years of operation include:
1. To create a service-based company whose #1 value is exceeding customer's expectations.
2. The utilization of CRP's services in 10 of the 100 top performing companies as listed by the
Seattle Business Journal.
3. To increase our number of served clients by 20% per year through superior service.
4. To develop a sustainable, profitable start-up business.
2.0 Company Summary
CRP, soon to be located in Seattle, will offer event planning for corporations. CRP will be
specializing in training/leadership retreats, team building skill retreats and product launch
events. CRP will be located in office space in downtown Seattle.
CRP will begin making a profit after month 10, and will grow steadily each consecutive month.
2.1 Company Ownership
CRP will be a Washington corporation. The sole stock holder will be Jeff Organizer.
2.2 Start-up Summary
CRP start-up costs will include all the necessary equipment needed for an office, legal fees,
accounting fees, advertising fees, and website development fees.
The home office equipment will be the largest chunk of the start-up expenses. This equipment
includes a 3 computer system, fax machine, office supplies, cellular phone, and pager. The
computers should have at least a 500 megahertz Celeron/Pentium processor, 64 megabytes of
RAM (preferably 128) and 6 gigabyte hard drive. One computer will become a server with a
printer and a writable CD-RW for backing up the system. Microsoft Office will be installed on all
the workstations and one computer will need QuickBooks(r) Pro. The office will require some
desks, bookshelves and couches. Two phone lines will be needed in addition to a cellular phone
and pager for Jeff.
The accounting fees will be used to set up the accounting suite so CRP can do the accounting
in-house.
The legal fees are used for the formation of the corporation as well as for
reviewing/generating standard client contracts. The advertising costs are based on the need to
communicate our service to perspective customers.
The Web creation fees at start-up costs are for design and creation of the website.

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The Corporate Retreat Professionals

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$3,400
$46,600
$50,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$5,000
$41,600
$0
$41,600
$46,600

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
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment

$50,000
$0
$0
$0
$50,000

Loss at Start-up (Start-up Expenses)

Total Capital

($3,400)
$46,600

Total Capital and Liabilities

$46,600

Total Funding

$50,000

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The Corporate Retreat Professionals

Chart: Start-up

Start-up
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Expenses

Assets

Investment

Loans

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Rent
Office equipment
Expensed equipment
Other
Total Start-up Expenses

$1,000
$300
$300
$300
$200
$1,000
$300
$0
$0
$3,400

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$41,600
$0
$0
$5,000
$46,600

Total Requirements

$50,000

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The Corporate Retreat Professionals

3.0 Services
CRP will offer event planning for the corporate market. CRP will concentrate on two types of
event planning:

1. Corporate retreats- These events are typically used for two different reasons. They are

2.

either a leadership training or teaming skills training where employees of the corporations
are sent away to develop these skills. In addition to the planning of the events, CRP will be
able to host the event as well. While CRP's core competencies are not in hosting, CRP will
align itself with a well respected host of leadership development/teaming skills programs
and have them assist CRP in the hosting aspect. Using a strategic partner in this case
allows CRP to stick with a narrow focus but still offer the service to our customers.
Product launches- These are events where the corporation is releasing a product and they
have an event that is open to people outside of the corporation. The purpose of the product
launch event is to create visibility for the new release.

4.0 Market Analysis Summary

CRP will serve the corporate customer in the event planning market. CRP will be specializing in
two important niches. The first is leadership development and teaming skills development.
With the recent trend in corporate downsizing, corporations are ditching their in-house solutions
in favor of outsourcing. Even though we are in the midst of an economic downturn,
investments in human capital are generally not reduced. Corporations still have the need for
leadership development and teaming skills development. These are investments that cost a bit
up front but pay nice returns in the long run. These are the services that CRP will specialize in.
Additionally, CRP will offer event planning for product launches. Product launches are an
integral stage in the release of a new product, communicating to the public about the new
"thing" the company has just released. Our customers will be companies seeking to raise
awareness about their new product release. CRP will provide a complete service of planning
and hosting these product release events.
4.1 Market Segmentation
CRP is providing services to corporate customers only. We will not be going after the "social
market" which is an alternative market within the event planning niche.
The corporate customer is a company that contracts with CRP to plan and typically host an
event for the company. Corporations will be turning to CRP to plan the events because:
1. It is cost efficient for a third party to plan the event. This is the case because the third
party only does event planning so they can plan and host the event more efficiently.
2. The company does not have additional people that can be taken away from their daily job
and invest time in this infrequent event.
Our event planning services for corporate retreats will typically be utilized by larger
corporations. A larger company can be generally defined as one with more than 40
employees. Smaller companies sometimes will utilize this service of ours, however, it is the
larger corporations that typically have the budget for this activity.

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The Corporate Retreat Professionals

For our product launch event planning, we will be servicing companies of all different sizes.
Typically the companies that use this service will be product based companies, but we will also
offer this service to service-based companies who desire to announce a new service that they
are offering.

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Large companies
Small companies
Other

Table: Market Analysis

Market Analysis
Potential Customers

Growth

Large companies
Small companies
Other
Total

9%
8%
0%
8.38%

Year 1

Year 2

Year 3

Year 4

Year 5

1,158
1,878
0
3,036

1,262
2,028
0
3,290

1,376
2,190
0
3,566

1,500
2,365
0
3,865

1,635
2,554
0
4,189

CAGR
9.01%
7.99%
0.00%
8.38%

4.2 Service Business Analysis

Competition in event planning is fierce. Look in the Yellow Pages and you will see rows and
rows of listings. Lucky for CRP, the majority of the event planning is for social events. There are
very few companies that specialize in corporate event planning. There are no companies that
specialize in specific types of corporate events. Additionally, with the recent trend of corporate
downsizing, the companies that had an in-house solution are abandoning these positions in
favor of outsourcing to reduce costs.

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The Corporate Retreat Professionals

4.2.1 Competition and Buying Patterns

Currently there are three other companies that offer event planning specifically to corporations.
They however, tend to do events that are more general in scope such as parties to reward
customers or employees, or events to change the company image. There is no company that
specializes in event planning of corporate training and product release events. There are
companies that offer corporate training, but these companies provide the actual training and do
not do any of the actual event planning/ logistics of the entire event.
There are companies that provide product-release services, but they do not specialize in it.
Because event planning is a tight market, CRP will benefit from their specialization in this area.
In the past, the buying patterns for the larger corporations was in the past to have an in-house
solution. This pattern is is disappearing in favor of outsourcing as there is the constant drive for
gains in efficiency, something outsourcing can offer.
4.3 Target Market Segment Strategy
CRP is targeting large companies for our corporate retreat event planning. The large
corporations typically have the budget and the foresight to recognize the value in corporate
retreats. In addition, it is the larger corporations that typically use the corporate retreat as a
training session for their employees. The training is typically in leadership development or
teaming skills. While they do have these retreats at different intervals through the year, it is
more cost effective for them to hire a service such as CRP to plan the events when needed
instead of paying the carrying costs of having a full-time, trained employee ready to do the
planning when it is needed.
CRP's product release planning services will be targeted at all different size companies.
Companies of all sizes have product release and it is unusual for them to have product release
many times a year requiring someone to be a a full-time planner on staff. Therefore, it makes
sense for them to hire an outside service to plan the event using their expertise in event
planning to drive down the costs of production and hosting.
5.0 Strategy and Implementation Summary
CRP will be aggressively courting companies to win over future contracts. CRP will offer a
superior service at a lower cost due to specialization. By concentrating on a few specific
services, CRP will become proficient at these services.
CRP will increase company visibility through a website, local Chamber of Commerce networking,
and participation in trade shows. Our website will be quite detailed and provide a visitor indepth information about the services CRP offers, the corresponding high level of quality, and
the cost savings that can be achieved by using CRP.
CRP will also be quite active in the local Chambers of Commence in the Seattle metropolitan
area. Over the years, Jeff has come to realize that a lot of business transacts through the
Chamber of Commerce or relationships that were started through that organization.
Lastly, CRP will be active in the many trade shows that come through Seattle. The use of trade
shows allows members of CRP to be introduced to a wide range of businesses that otherwise
would be difficult to establish an initial relationship with.

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The Corporate Retreat Professionals

5.1 Competitive Edge

CRP's competitive edge will be based on two factors, specialization and strategic relationships.
CRP will be specializing in two distinct areas of corporate planning. While specializing essentially
precludes CRP out of a lot of different markets, it allows CRP to excel in the markets that it has
chosen to participate in. Specialization allows CRP to be an expert in the two areas that it is in.
Additionally, the expert knowledge allows CRP to provide the service as a cost saving to the
company because the fewer services CRP offers, the more they can concentrate on improving
the current offerings. Improvements that CRP strive for is a reduction in cost charged to the
client and an improvement to the level of services offered.
CRP's second competitive edge is based on the use of strategic relationships. CRP clearly
realizes that they cannot be good at everything. CRP believes it is better to concentrate on a
few things, excel in those areas, and form strategic partnerships with companies that excel in
the service areas that CRP doesn't. Applying this philosophy, CRP has decided in addition to
planning corporate retreat training sessions, they want to offer the service of hosting/leading
these events as well. The service of hosting/leading however, is quite different than planning
and CRP believes that it would be more cost effective to form a strategic relationship with an
expert in this field instead of trying to become proficient themselves. CRP then is able to offer a
top-notch service offering of hosting/leading the training seminars but does not have to invest
heavily in developing the program.
The use of strategic relationships is unusual in the event planning space. Most event planners
are generalists and try to do a little of everything. CRP is following the model of benchmark
companies in other industries that have recognized the value of specialization and the use of
strategic relationships.
5.2 Sales Strategy
CRP will for the most part be using the sale strategy of personal selling. With his five years of
consulting for larger corporations, Jeff has formed relationships throughout the business
community. Jeff will initially leverage these relationships to form some initial clients. Once
things get rolling and CRP has developed some satisfied clients, Jeff will be developing
relationships with his network of friends developed through the Chambers of Commerce and
trade shows.
Jeff's spiel to prospective customers will be based on the high level of service offered and cost
advantages by going with CRP. The cost savings can be quantitied and shown to the customer
while the higher level of service can be guarantee as well as communicated through
testimonials from satisfied clients.
Additionally, the website will be used not only to communicate information to prospective
customers, but also a method of communication where CRP can provide more specialized
information such as cost estimates as well as answering questions through the site.

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The Corporate Retreat Professionals

5.2.1 Sales Forecast

The first month will be spent setting up the office. It is unlikely that there will be any sales
activity within the first two months. During the first and second month, Jeff will be developing
systems to provide a template for future event planning. Once this is set up, CRP should be
able to process the service request rather easily.
The third month should see the start of sales activity. It will not be until the fifth month that
things will really kick in. From month six through 12 sales will steadily increase and the
increase should continue well into year two.

Chart: Sales Monthly

Sales Monthly
$16,000
$14,000
$12,000
$10,000

Large companies

$8,000

Small companies

$6,000
$4,000
$2,000

Month 12

Month 11

Month 10

Month 9

Month 8

Month 7

Month 6

Month 5

Month 4

Month 3

Month 2

Month 1

$0

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

Large companies
Small companies
Total Sales

$58,764
$35,602
$94,366

$122,547
$65,458
$188,005

$135,855
$78,958
$214,813

Direct Cost of Sales

Large companies
Small companies
Subtotal Direct Cost of Sales

Year 1
$15,880
$7,434
$23,314

Year 2
$21,478
$10,587
$32,065

Year 3
$24,585
$13,545
$38,130

Sales

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The Corporate Retreat Professionals

5.3 Milestones
CRP will have several milestones early on:
1. Business plan completion. This will be done as a roadmap for the organization as well as an
indispensable tool for the ongoing performance and improvement of the company.
2. Set up office. This will done within the first month.
3. Adoption of CRP's services by 20 companies.
4. Revenue over $100,000.
Table: Milestones

Milestones
Milestone
Business plan completion
Set up office
Adoption of CRP's services by 20
companies
Revenue of $100,000
Totals

Start Date
3/1/1999
3/1/1999
3/1/2001

End Date
4/1/1999
4/1/1999
6/1/2001

Budget
$0
$0
$0

Manager
Jeff
Jeff
CRP

Department
Marketing
Department
Department

1/1/2002

1/1/2002

$0
$0

CRP

Department

6.0 Management Summary

CRP is a Washington corporation whose sole stock holder is Jeff Organizer. Jeff will be
incorporating to protect himself from personal liability.
Jeff Organizer, Founder and President, has a degree in Business from the University of
Washington. After college, Jeff spent five years working for Andersen Consulting. During these
years, Jeff became familiar with a large number of companies and the important players in the
Seattle business community. While working for Andersen, Jeff attended an MBA night program
and received his MBA in 1996.
After completing his degree, Jeff decided to join Boeing in their PR department. It was at
Boeing where Jeff learned the bulk of his organizing and event planning skills. These skills, in
conjunction with his MBA education, gave Jeff the confidence to handle a wide range of
business propositions. After three years at Boeing, Jeff decided to start his own business.
Corporate Retreat Professionals was finally born.

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The Corporate Retreat Professionals

6.1 Personnel Plan

The staff will initially consist of Jeff working full time. By month two, Jeff will have brought on
board a secretary/receptionist in a full-time hourly position. Month four will mark when Jeff will
bring on board an account executive to maintain the accounts of their clients. Jeff will be
responsible for the set up of the office, forming of strategic relationships with third party
vendors, and turning sales leads into customers.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Jeff
secretary/ receptionist
account manager
Other
Total People

$24,000
$18,700
$18,000
$0
3

$30,000
$19,200
$24,000
$0
3

$32,000
$20,000
$28,000
$0
3

Total Payroll

$60,700

$73,200

$80,000

7.0 Financial Plan

The following subtopics will provide financial information.
7.1 Important Assumptions
See the following table for the company's general assumptions.
Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

1
10.00%
10.00%
25.42%
0

2
10.00%
10.00%
25.00%
0

3
10.00%
10.00%
25.42%
0

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The Corporate Retreat Professionals

7.2 Break-even Analysis

This Break-even Analysis projects the figure of approximately $10,000 as the monthly sales
Break-even point.

Chart: Break-even Analysis

Break-even Analysis
$10,000
$8,000
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
$0

$4,000
$2,000

$8,000
$6,000

$12,000
$16,000
$20,000
$10,000
$14,000
$18,000
$22,000

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$10,174

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

25%
$7,660

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The Corporate Retreat Professionals

7.3 Projected Profit and Loss

The following table indicates the projected profit and loss.
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other
Total Cost of Sales

$94,366
$23,314
$0
$23,314

$188,005
$32,065
$0
$32,065

$214,813
$38,130
$0
$38,130

Gross Margin
Gross Margin %

$71,052
75.29%

$155,940
82.94%

$176,683
82.25%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$60,700
$1,100
$1,668
$0
$1,200
$2,400
$14,400
$10,455
$0

$73,200
$1,200
$1,668
$0
$1,200
$2,400
$14,400
$15,030
$0

$80,000
$1,200
$1,664
$0
$1,200
$2,400
$14,400
$16,050
$0

Total Operating Expenses

$91,923

$109,098

$116,914

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($20,871)
($19,203)
$0
$0

$46,842
$48,510
$0
$11,711

$59,769
$61,433
$0
$15,191

Net Profit
Net Profit/Sales

($20,871)
-22.12%

$35,132
18.69%

$44,578
20.75%

Expenses

Page 13

The Corporate Retreat Professionals

7.4 Projected Cash Flow

The following table indicates projected cash flow.

Chart: Cash

Cash
$40,000
$35,000
$30,000
$25,000
$20,000

Net Cash Flow

$15,000

Cash Balance

$10,000
$5,000
$0
($5,000)
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12

Page 14

The Corporate Retreat Professionals

Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$23,592
$49,432
$73,023

$47,001
$119,826
$166,827

$53,703
$155,047
$208,750

$0
$0
$0
$0
$0
$0
$12,000
$85,023

$0
$0
$0
$0
$0
$0
$0
$166,827

$0
$0
$0
$0
$0
$0
$0
$208,750

Year 1

Year 2

Year 3

$60,700
$50,527
$111,227

$73,200
$78,050
$151,250

$80,000
$87,797
$167,797

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$0
$0
$0
$111,227

$0
$0
$0
$0
$0
$0
$0
$151,250

$0
$0
$0
$0
$0
$0
$0
$167,797

Net Cash Flow

Cash Balance

($26,203)
$15,397

$15,577
$30,973

$40,953
$71,927

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Page 15

The Corporate Retreat Professionals

7.5 Projected Balance Sheet

The following table indicates the projected balance sheet.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$15,397
$21,343
$4,250
$0
$40,990

$30,973
$42,521
$4,102
$0
$77,596

$71,927
$48,584
$4,217
$0
$124,728

$5,000
$1,668
$3,332
$44,322

$5,000
$3,336
$1,664
$79,260

$5,000
$5,000
$0
$124,728

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$6,593
$0
$0
$6,593

$6,399
$0
$0
$6,399

$7,289
$0
$0
$7,289

Long-term Liabilities
Total Liabilities

$0
$6,593

$0
$6,399

$0
$7,289

$62,000
($3,400)
($20,871)
$37,729
$44,322

$62,000
($24,271)
$35,132
$72,861
$79,260

$62,000
$10,861
$44,578
$117,438
$124,728

$37,729

$72,861

$117,438

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 16

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

$1,874
$1,255
$3,129

$1,997
$1,458
$3,455

$4,587
$2,547
$7,134

$4,998
$2,754
$7,752

$5,354
$2,914
$8,268

Month 3

Month 4

Month 8

Month 9

Month 10

Month 11

Month 12

$7,963
$4,998
$12,961

$8,547
$5,347
$13,894

$9,125
$5,901
$15,026

Sales
Large companies
Small companies
Total Sales
Direct Cost of Sales

0%
0%

$0
$0
$0
Month 1

$0
$0
$0
Month 2

$6,874
$3,874
$10,748

$7,445
$4,554
$11,999

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Large companies

$0

$0

$321

$384

$1,125

$1,321

$1,478

$1,848

$2,114

$2,325

$2,400

$2,564

Small companies

$0

$0

$121

$214

$457

$554

$658

$854

$1,010

$1,121

$1,145

$1,300

Subtotal Direct Cost of Sales

$0

$0

$442

$598

$1,582

$1,875

$2,136

$2,702

$3,124

$3,446

$3,545

$3,864

Page 1

Appendix
Table: Personnel

Personnel Plan
Jeff
secretary/ receptionist
account manager
Other
Total People
Total Payroll

0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,000
$0
$0
$0
1

$2,000
$1,700
$0
$0
2

$2,000
$1,700
$0
$0
2

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000
$1,700
$2,000
$0
3

$2,000

$3,700

$3,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

Page 2

Appendix
Table: General Assumptions

General Assumptions
Plan Month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

Month 12
12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest
Rate
Tax Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

30.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

Other

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Month 3

Month 4

Month 5

Month 6

Month 7

Month 10

Month 11

Month 12

Sales

Month 1
$0

$0

$3,129

$3,455

$7,134

$7,752

$8,268

$10,748

$11,999

$12,961

$13,894

$15,026

Direct Cost of Sales

$0

$0

$442

$598

$1,582

$1,875

$2,136

$2,702

$3,124

$3,446

$3,545

$3,864

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$442

$598

$1,582

$1,875

$2,136

$2,702

$3,124

$3,446

$3,545

$3,864

Gross Margin
Gross Margin %

Month 2

Month 8

Month 9

$0

$0

$2,687

$2,857

$5,552

$5,877

$6,132

$8,046

$8,875

$9,515

$10,349

$11,162

0.00%

0.00%

85.87%

82.69%

77.82%

75.81%

74.17%

74.86%

73.96%

73.41%

74.49%

74.28%

$2,000

$3,700

$3,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$0

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$139

$139

$139

$139

$139

$139

$139

$139

$139

$139

$139

$139

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

Expenses
Payroll
Sales and Marketing and
Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$300
$0

$555
$0

$555
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

$1,005
$0

Total Operating Expenses

$3,939

$5,994

$5,994

$8,444

$8,444

$8,444

$8,444

$8,444

$8,444

$8,444

$8,444

$8,444

Profit Before Interest and

Taxes
EBITDA

($3,939)

($5,994)

($3,307)

($5,587)

($2,892)

($2,567)

($2,312)

($398)

$431

$1,071

$1,905

$2,718

($3,168)

Rent
Payroll Taxes
Other

15%

($3,800)

($5,855)

($5,448)

($2,753)

($2,428)

($2,173)

($259)

$570

$1,210

$2,044

$2,857

Interest Expense

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Taxes Incurred

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($3,939)

($5,994)

0.00%

0.00%

Net Profit
Net Profit/Sales

($3,307)
-105.69%

($5,587)
-161.71%

($2,892)

($2,567)

($2,312)

($398)

$431

$1,071

$1,905

$2,718

-40.54%

-33.11%

-27.96%

-3.70%

3.59%

8.26%

13.71%

18.09%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,757

Cash Received
Cash from Operations
Cash Sales

$0

$0

$782

$864

$1,784

$1,938

$2,067

$2,687

$3,000

$3,240

$3,474

Cash from Receivables

$0

$0

$0

$78

$2,355

$2,683

$5,366

$5,827

$6,263

$8,092

$9,023

$9,744

Subtotal Cash from Operations

$0

$0

$782

$942

$4,138

$4,621

$7,433

$8,514

$9,263

$11,333

$12,497

$13,501

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$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

$0

$0

$0

$0

$0

$0

$0

$4,000

$0

$8,000

$0

$0

Subtotal Cash Received

$0

$0

$782

$942

$4,138

$4,621

$7,433

$12,514

$9,263

$19,333

$12,497

$13,501

Additional Cash Received

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

Expenditures

0.00%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,000

$3,700

$3,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$5,700

$60

$1,812

$2,188

$3,170

$3,650

$4,962

$4,810

$5,058

$5,938

$6,200

$6,400

$6,278

$2,060

$5,512

$5,888

$8,870

$9,350

$10,662

$10,510

$10,758

$11,638

$11,900

$12,100

$11,978

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
Long-term Liabilities Principal
Repayment
Purchase 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

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,060

$5,512

$5,888

$8,870

$9,350

$10,662

$10,510

$10,758

$11,638

$11,900

$12,100

$11,978

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Page 5

Appendix
Net Cash Flow

($2,060)

($5,512)

($5,106)

($7,928)

($5,212)

($6,040)

($3,077)

$1,756

($2,376)

$7,432

$396

$1,523

Cash Balance

$39,540

$34,028

$28,922

$20,994

$15,782

$9,742

$6,665

$8,420

$6,045

$13,477

$13,874

$15,397

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Table: Balance Sheet

Pro Forma Balance Sheet

Month 1
Assets

Month 2

Month 3

Month 4

Month 5

Starting
Balances

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

$41,600
$0
$0
$0
$41,600

$39,540
$0
$0
$0
$39,540

$34,028
$0
$0
$0
$34,028

$28,922
$2,347
$558
$0
$31,827

$20,994
$4,860
$960
$0
$26,814

$15,782
$7,855
$1,740
$0
$25,378

$9,742
$10,986
$2,063
$0
$22,790

$6,665
$11,821
$2,350
$0
$20,835

$8,420
$14,055
$2,972
$0
$25,448

$6,045
$16,792
$3,436
$0
$26,273

$13,477
$18,420
$3,791
$0
$35,688

$13,874
$19,817
$3,900
$0
$37,590

$15,397
$21,343
$4,250
$0
$40,990

$5,000
$0
$5,000
$46,600

$5,000
$139
$4,861
$44,401

$5,000
$278
$4,722
$38,750

$5,000
$417
$4,583
$36,410

$5,000
$556
$4,444
$31,258

$5,000
$695
$4,305
$29,683

$5,000
$834
$4,166
$26,956

$5,000
$973
$4,027
$24,862

$5,000
$1,112
$3,888
$29,336

$5,000
$1,251
$3,749
$30,022

$5,000
$1,390
$3,610
$39,298

$5,000
$1,529
$3,471
$41,061

$5,000
$1,668
$3,332
$44,322

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$1,740
$0
$0
$1,740

$2,083
$0
$0
$2,083

$3,050
$0
$0
$3,050

$3,485
$0
$0
$3,485

$4,802
$0
$0
$4,802

$4,642
$0
$0
$4,642

$4,860
$0
$0
$4,860

$5,732
$0
$0
$5,732

$5,987
$0
$0
$5,987

$6,192
$0
$0
$6,192

$6,050
$0
$0
$6,050

$6,593
$0
$0
$6,593

Long-term Liabilities
Total Liabilities

$0
$0

$0
$1,740

$0
$2,083

$0
$3,050

$0
$3,485

$0
$4,802

$0
$4,642

$0
$4,860

$0
$5,732

$0
$5,987

$0
$6,192

$0
$6,050

$0
$6,593

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$50,000
($3,400)
$0
$46,600
$46,600

$50,000
($3,400)
($3,939)
$42,661
$44,401

$50,000
($3,400)
($9,933)
$36,667
$38,750

$50,000
($3,400)
($13,240)
$33,360
$36,410

$50,000
($3,400)
($18,827)
$27,773
$31,258

$50,000
($3,400)
($21,719)
$24,881
$29,683

$50,000
($3,400)
($24,286)
$22,314
$26,956

$50,000
($3,400)
($26,598)
$20,002
$24,862

$54,000
($3,400)
($26,996)
$23,604
$29,336

$54,000
($3,400)
($26,565)
$24,035
$30,022

$62,000
($3,400)
($25,494)
$33,106
$39,298

$62,000
($3,400)
($23,589)
$35,011
$41,061

$62,000
($3,400)
($20,871)
$37,729
$44,322

Net Worth

$46,600

$42,661

$36,667

$33,360

$27,773

$24,881

$22,314

$20,002

$23,604

$24,035

$33,106

$35,011

$37,729

Page 6