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This sample business plan has been made available to users of Business Plan Pro, business planning
software published by Palo Alto Software. Names, locations 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 copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailedto the marketing department of Palo Alto Software at [email protected]. For product
information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 2001-2009 All rights reserved.
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by ________________ in this
business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of ________________.
It is acknowledged 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 meansand that any disclosure or use of same by reader, may cause serious harm or damage to
________________.
Upon request, this document is to be immediately returned to ________________.
_____________________
Signature
_____________________
Name (typed or printed)
_______________Date
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Table of Contents
1.0 Executive Summary.............................................................................................................................1Chart: Highlights......................................................................................................................1
1.1 Mission........................................................................................................................................11.2 Objectives...................................................................................................................................11.3 Keys to Success........................................................................................................................2
2.0 Company Summary.............................................................................................................................22.1 Company Ownership.................................................................................................................22.2 Start-up Summary......................................................................................................................2
Table: Start-upFunding..........................................................................................................3Table: Start-up.........................................................................................................................4Chart: Start-up.........................................................................................................................4
3.0 Services................................................................................................................................................44.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation................................................................................................................5Chart: Market Analysis (Pie)..................................................................................................5Table: Market Analysis...........................................................................................................6
4.2 Market Needs.............................................................................................................................64.3 Target Market Segment Strategy.............................................................................................64.4 Service Business Analysis........................................................................................................64.5 Competition and Buying Patterns............................................................................................6
5.0 Strategy and Implementation Summary............................................................................................75.1 Competitive Edge......................................................................................................................75.2 Sales Strategy............................................................................................................................7
5.2.1 SalesForecast..............................................................................................................8
Chart: Sales Monthly......................................................................................................8Table: Sales Forecast...................................................................................................8
6.0 Management Summary.......................................................................................................................9Table: Personnel 9
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Table of ContentsTable: Cash Flow.......................................................................................................................................5
Table: Balance Sheet................................................................................................................................6
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Buy the Time
1.0 Executive Summary
Buy the Time will be a shopping service that allows customers to purchase gifts and
necessities of life at little inconvenience to their schedule and workday. We will do this with
the aid of a shopping consultant to provide each customer with quality solutions to their
shopping concerns at reasonable prices. The owner has had years of experience in the retail
market and is aware of trends and the shopping environment. In time, this service will evolve to
incorporate a larger market instead of a luxury for the more wealthy customers.
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Buy the Time Grow into a large franchise with a reputation for getting the desired item at a
reasonable cost.
1.3 Keys to Success
In order to ensure a healthy profit and low customer turnover, Buy the Time will have to:
Provide a significantly easier, more convenient, and customized shopping experience
than can be found in high-end stores. Ensure 100% customer satisfaction.
Establish close ties with the clients to ensure repeat business, encourage customer
feedback to enhance further customized service, and promote word-of-mouth marketing.
2.0 Company Summary
Buy the Time is a shopping service which allows the client to purchase custom items withoutstress. With our expert staff, we intend to grow into a larger market where we can still be
personable, yet offer greater choices.
Our ideal larger market will expand from the Seattle area to include New York, San Francisco, Los
Angeles, Chicago, and Miami.
2.1 Company Ownership
Buy the Time will be a Seattle, WA-based company. It will be formed as a simple sole
proprietorship. The company will operate as a home business until such time as expansion is
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Buy the Time
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $1,250
Start-up Assets to Fund $3,650
Total Funding Required $4,900
Assets
Non-cash Assets from Start-up $2,400
Cash Requirements from Start-up $1,250
Addit ional Cash Raised $0
Cash Balance on Starting Date $1,250
Total Assets $3,650
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabili ties $0
Accounts Payab le (Outstanding Bi ll s) $0
Other Current Liabili ties (interest-free) $0
Total Liabili ties $0
Capital
Planned Investment
Owner $3,250
Private Investor $1,650
Other $0
Addit ional Investment Requi rement $0
Total Planned Investment $4,900
Loss at Start-up (Start-up Expenses) ($1,250)
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Buy the Time
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $300
Stationery etc. $150
Brochures $200
Consultants $0
Insurance $0
Rent $0
Research and development $100
Expensed equipment $500
Other $0
Total Start-up Expenses $1,250
Start-up Assets
Cash Required $1,250
Other Current Assets $400
Long-term Assets $2,000
Total Assets $3,650
Total Requirements $4,900
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Buy the Timeand delivery in custom packaging. The focus of the company is the needs of the client. It is
the job of the consultant to translate those needs into low-cost solutions.
4.0 Market Analysis Summary
Buy the Time will target the middle-aged, busy executive. These individuals often have extremely
busy schedules, including a great deal of travel time. In addition, they possess a large proportion
of disposable income that allows them to afford custom services. This service will allow them
more concentration on work, while allowing them to obtain great products for personal andbusiness life.
4.1 Market Segmentation
The target market for Buy the Time is broken into three segments:
1. Busy executives desiring to keep pace with the trends, yet not having the time tofacilitate their needs.
2. Younger business persons who choose to have the luxury and convenience of a
personalized shopping service.
3. Those needing consultation in gifts and/or not wanting the pressures that are
associated with finding custom gifts for special occasions.
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Buy the Time
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Executives 52% 500 900 1,300 4,000 6,400 89.15%
Business Persons 32% 260 500 800 2,010 3,900 96.80%
Other 15% 60 240 400 1,000 1,840 135.32%
Total 96.16% 820 1,640 2,500 7,010 12,140 96.16%
4.2 Market Needs
Buy the Time's primary market, the executive or high-end professional individual, has certain
needs that are outlined below.
They often find that their image is very important, both professionally and personally.
They need advice or information on what the latest trends and fashions are.
They keep busy schedules that often involve a lot of travel. This leaves little time for
shopping that is time consuming, such as gift buying. They have a desire to be pampered and willingly spend money as a symbol of status.
4.3 Target Market Segment Strategy
The best way to develop the company is to make our service necessary and accessible to the
public. By facilitating their needs easily, we offer a great service at little inconvenience to them
in a time where convenience matters the most.
In its broadest definition, the American shopping market consists of every American who needs
to buy goods and services for themselves and their families. Although it is the aim of Buy the
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Buy the Timeneeds constant. This requires being aware of economic changes, as well as alterations in trends.
At the moment, there are few services like this in the Seattle area. Therefore, there is a
tremendous opportunity to build and retain significant market share. Customers choose and
retain services like this often through word-of-mouth, when the company is able to achieve a
high level of customer satisfaction. Although it is the aim of Buy the Time to significantly lower
costs of this luxury service, at this time, cost does not play a significant factor in how
customers choose a shopping service. The bottom line is establishing a strong intimate
relationship with customers to capture the long-term profits through repeat business and
create the enthusiasm among customers that will spur on word-of-mouth marketing.
5.0 Strategy and Implementation Summary
Buy the Time will concentrate on expanding in metropolitan areas that have significant growth of
young business persons and executives. Starting in Seattle, it will grow down the west coast
to San Francisco and Los Angeles. From there we will target the east coast with locations in
New York City, Miami, and Chicago.
The target customer is a busy business person unable to find time for purchasing custom
goods. We will provide this tailored service to work around their schedules, while maintaining a
low cost.
5.1 Competitive Edge
Our competitive edge lies in our expert service at a reasonable price. We will transform thisservice from a luxury into a demand service. We will provide a database for remembering
occasions and dates, this will allow the client to remain stress-free. Buy the Time was created
by an expert shopper who knows trends, prices, and details, such as fabrics and colors.
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Buy the Time
5.2.1 Sales Forecast
The following chart and table document forecasted sales.
In both April and May we expect a two percent growth each month. From June to September,
each month should reflect a growth of five percent, since many activities occ ur during the
summer months. October will show approximately four percent, since this is usually a time of
transitions. November and December will show an increase to seven percent, with many people
buying for the holidays. January through April will be an increase of one percent each month,since this is a slow retail period.
This will result in a growth of 68% after the first year. From that, sales in 2002 will see a
growth of 57% as we develop our team of consultants. By 2003, sales will show a 78% growth.
By the end of the third year, we will be able to move into markets outside the Seattle area.
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Buy the Time
6.0 Management Summary
As Buy the Time grows, we will add consultants so that we may continue to offer personalized
service in a timely fashion. Originally, it will start with the owner as the sole employee. By the
end of the first year, another consultant will be added. From that point we will add a
consultant when we choose to grow into different markets. We will shape our team depending on
sales and growth.
Marketing and public relations will be handled mainly by the owner. If there is a greater need,a marketing consultant will be used.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Owner $15,000 $30,000 $37,000
Other $0 $0 $0Total People 0 0 0
Total Payroll $15,000 $30,000 $37,000
7.0 Financial Plan
Growth will occur according to the number of clients and cash flow.
With approximately half of our services provided on credit, collection will be essential. With this
still being a service that is not essential to everyday living, we will show that payments are
necessary immediately. With a concrete system for cash flow, we will be able to keep debt to
a minimum while still providing a high level of sales
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Buy the Time
7.1 Important Assumptions
The following assumptions are made responding to growth, and are based on economic trends
from the preceding two years.
A strong economy is expected to continue in the future.
Many people have annual dates on which purchases are made.
It is assumed that people are willing to pay for a service if it is an agreeable and
convenient experience.
The table below outlines some business assumptions that are the basis for Buy The Time's
growth, including tax rate and payment days.
Table: General Assumptions
General Assumptions
Year 1 Year 2 Year 3Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
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Buy the Time
7.2 Break-even Analysis
Our break-even analysis is shown in further detail in the following chart and table.
This is a conservative figure since contacts have been made, and have already generated
many orders for our services. Buy the Time's goal is to generate twice as much as the break-
even point for a monthly standard.
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Buy the Time
7.3 Projected Profit and Loss
Buy the Time's projected profit and loss is indicated in the following table. Gross margin should
remain between 50-70% the first year, with highest profits due near the end of the year. This
should prove to be accurate, since that is a time when many clients increase their spending.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $32,365 $66,000 $83,000
Direct Cost of Sales $11,250 $27,750 $37,500
Other $0 $0 $0
Total Cost of Sales $11,250 $27,750 $37,500
Gross Margin $21,115 $38,250 $45,500
Gross Margin % 65.24% 57.95% 54.82%
Expenses
Payroll $15,000 $30,000 $37,000
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Util ities $0 $0 $0
Insurance $0 $0 $0
Rent $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $15,000 $30,000 $37,000
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Buy the Time
7.4 Projected Cash Flow
The following chart and table outline the cash flow for fiscal years 2002, 2003, and 2004. For
a monthly analysis, please see the attached appendix.
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Buy the Time
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $17,801 $36,300 $45,650
Cash from Receivables $11,759 $26,785 $35,877
Subtotal Cash from Operations $29,560 $63,085 $81,527
Addit ional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabil ities (interest-free) $0 $0 $0
New Long-term Liabil ities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $29,560 $63,085 $81,527
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $15,000 $30,000 $37,000
Bill Payments $11,630 $28,509 $38,851
Subtotal Spent on Operations $26,630 $58,509 $75,851
Addit ional Cash Spen t
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabil ities Principal Repayment $0 $0 $0
Long-term Liabili ties Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
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Buy the Time
7.5 Projected Balance Sheet
The Balance Sheet table for fiscal years 2002, 2003, and 2004 follows. For a monthly analysis,
please see the at tached appendix.
Table: Balance Sheet
Pro Forma Bal ance SheetYear 1 Year 2 Year 3
Assets
Current Assets
Cash $4,179 $8,755 $14,430
Accounts Receivabl e $2,805 $5,721 $7,194
Other Current Assets $400 $400 $400
Total Current Assets $7,385 $14,875 $22,024
Long-term AssetsLong-term Assets $2,000 $2,000 $2,000
Accumulated Deprecia tion $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000
Total Assets $9,385 $16,875 $24,024
Liabil ities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payab le $1,147 $2,450 $3,260
Current Borrowing $0 $0 $0Other Current Liabili ties $0 $0 $0
Subtotal Current Liabil ities $1,147 $2,450 $3,260
L t Li bi li ti $0 $0 $0
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Buy the Time
7.6 Business Ratios
The following table provides significant ratios for the personal services industry. The final
column, Industry Profile, shows ratios for this industry as it is determined by the Standard
Industrial Classification (SIC) Index 7299, "miscellaneous personal services."
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Buy the Time
Table: Ratios
Ratio Anal ysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 103.92% 25.76% -8.50%
Percent of Total Assets
Accounts Receivabl e 29.89% 33.90% 29.9 5% 6.70%
Other Current Assets 4.26% 2.37% 1.66% 26.40%
Total Current Assets 78.69% 88.15% 91.68% 43.50%
Long-term Assets 21.31% 11.85% 8.32% 56.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabil i ties 12.23% 14.52% 13.57% 19.50%
Long-term Liabili ties 0.00% 0.00% 0.00% 21.40%
Total Liabili ties 12.23% 14.52% 13.57% 40.90%
Net Worth 87.77% 85.48% 86.43% 59.10%
Percent of Sal es
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 65.24% 57.95% 54.82% 50.80%
Selling, General & Administrative Expenses 51.07% 54.26% 47.14% 34.40%
Advertising Expenses 0.00% 0.00% 0.00% 0.20%
Profit Before Interest and Taxes 18.89% 12.50% 10.24% 1.50%
Main Ratios
Current 6.44 6.07 6.76 2.09
Quick 6.44 6.07 6.76 1.03
Total Debt to Total Assets 12.23% 14.52% 13.57% 40.90%
Pre-tax Return on Net Worth 74.24% 57.19% 40.94% 1.10%
Pre-tax Return on Assets 65.16% 48.89% 35.38% 1.90%
Addit ional Ratios Year 1 Year 2 Year 3
Net Profit Margin 14.17% 9.38% 7.64% n.a
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Appendix
Page 1
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
Sales
Jade Kousky - Owner 0% $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185Retail Consultant 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Jade Kousky - Owner $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Retail Consultant 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
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Appendix
Page 2
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
Owner 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
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Appendix
Page 3
Table: General Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 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 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 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 0 0 0 0 0 0 0 0 0 0 0 0
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Appendix
Page 4
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $2,168 $2,181 $2,290 $2,404 $2,524 $2,650 $2,703 $2,891 $3,092 $3,123 $3,154 $3,185
Direct Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938
Gross Margin $1,231 $1,244 $1,353 $1,467 $1,587 $1,713 $1,766 $1,954 $2,155 $2,186 $2,217 $2,248
Gross Margin % 56.76% 57.02% 59.06% 61.00% 62.86% 64.62% 65.32% 67.57% 69.68% 69.98% 70.28% 70.57%
Expenses
Payroll $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Sales and Marketing and Other
Expenses
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Profit Before Interest and Taxes ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
EBITDA ($20) ($7) $103 $217 $337 $463 $516 $704 $905 $936 $967 $998
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
T axes Incurred ($6) ($2) $26 $54 $84 $116 $129 $176 $226 $234 $242 $249
Net Profit ($14) ($5) $77 $162 $252 $347 $387 $528 $678 $702 $725 $748
Net Profit/Sales -0.63% -0.22% 3.36% 6.75% 10.00% 13.09% 14.30% 18.25% 21.94% 22.47% 22.98% 23.49%
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Appendix
Page 5
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 Received
Cash from Operations
Cash Sales $1,192 $1,200 $1,260 $1,322 $1,388 $1,458 $1,487 $1,590 $1,701 $1,718 $1,735 $1,752
Cash from Receivables $0 $33 $976 $983 $1,032 $1,084 $1,138 $1,193 $1,219 $1,304 $1,392 $1,406
Subtotal Cash from Operations $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158
Additional Cash Received
Sales Tax , VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $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 $0 $0 $0 $0 $0
Subtotal Cash Received $1,192 $1,232 $2,235 $2,305 $2,420 $2,541 $2,624 $2,783 $2,920 $3,022 $3,127 $3,158
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Bill Payments $31 $932 $937 $964 $993 $1,023 $1,054 $1,068 $1,115 $1,164 $1,172 $1,179
Subtotal Spent on Operations $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $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 $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
Subtotal Cash Spent $1,281 $2,182 $2,187 $2,214 $2,243 $2,273 $2,304 $2,318 $2,365 $2,414 $2,422 $2,429
Net Cash Flow ($89) ($950) $49 $91 $178 $268 $321 $465 $555 $608 $705 $728
Cash Balance $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179
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Appendix
Page 6
Table: Balance Sheet
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Curren t Assets
Cash $1,250 $1,161 $212 $260 $351 $529 $798 $1,118 $1,584 $2,138 $2,746 $3,451 $4,179
Accounts Receivable $0 $976 $1,925 $1,979 $2,078 $2,182 $2,290 $2,369 $2,477 $2,649 $2,750 $2,778 $2,805
Other Current Assets $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Total Current Assets $1,650 $2,537 $2,536 $2,639 $2,829 $3,111 $3,488 $3,887 $4,460 $5,187 $5,897 $6,629 $7,385
Long -term Assets
Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Accumulated Depr eciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total Assets $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385
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 $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $901 $905 $931 $959 $988 $1,018 $1,031 $1,076 $1,125 $1,132 $1,140 $1,147
Paid-in Capital $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900
Retained Earnings ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250) ($1,250)
Earnings $0 ($14) ($19) $58 $221 $473 $820 $1,207 $1,734 $2,413 $3,114 $3,839 $4,587
Total Capital $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237
Total Liabilities and Capital $3,650 $4,537 $4,536 $4,639 $4,829 $5,111 $5,488 $5,887 $6,460 $7,187 $7,897 $8,629 $9,385
Net Worth $3,650 $3,636 $3,631 $3,708 $3,871 $4,123 $4,470 $4,857 $5,384 $6,063 $6,764 $7,489 $8,237