C O N F I D E N T I A L

VML Properties LLCM A K I N G T H E D R E A M O F H O M E O W N E R S H I P A R E A L I T Y

Business PlanPrepared May 2015

Contact Information

Jerrad Green

jerrad@vmlproperties.com

843-424-9694

www.VMLproperties.com

405 Emerson Dr.

Myrtle Beach, SC 29579, USA

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Table of Contents

Executive Summary.................................................................................1Who We Are.............................................................................................................................................................1

What We Sell ...........................................................................................................................................................1

Who We Sell To ......................................................................................................................................................2

Financial Summary ..............................................................................................................................................2

Company ....................................................................................................3Company Overview..............................................................................................................................................3

Management Team...............................................................................................................................................3

Management Team Background......................................................................................................................4

Staffing.....................................................................................................................................................................5

Products and Services.............................................................................6Products and Services..........................................................................................................................................6

Investment Opportunities..................................................................................................................................7

Technology.............................................................................................................................................................7

Competitors............................................................................................................................................................8

Target Market ..........................................................................................10Market Overview .................................................................................................................................................10

Market Trends ......................................................................................................................................................12

Industry Analysis ................................................................................................................................................13

Key Customers.....................................................................................................................................................14

Strategy and Implementation.............................................................16SWOT Analysis.....................................................................................................................................................16

Competitive Edge................................................................................................................................................17

Marketing Activities ...........................................................................................................................................17

Financial Plan..........................................................................................18Revenue Forecast ................................................................................................................................................18

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Personnel Plan .....................................................................................................................................................19

Budget ....................................................................................................................................................................19

Cash Flow Assumptions....................................................................................................................................21

Loans and Investments .....................................................................................................................................21

Financial Statements ............................................................................23Profit and Loss Statement ................................................................................................................................23

Balance Sheet.......................................................................................................................................................25

Cash Flow Statement .........................................................................................................................................26

Appendix..................................................................................................28Revenue Forecast................................................................................................................................................28

Personnel Plan.....................................................................................................................................................29

Budget....................................................................................................................................................................30

Loans and Investments .....................................................................................................................................31

Profit and Loss Statement ................................................................................................................................33

Balance Sheet.......................................................................................................................................................36

Cash Flow Statement .........................................................................................................................................39

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Executive Summary

Who We Are

VML Properties LLC is a real estate investment start-up located in Myrtle Beach, SC. The

company is focused on providing lucrative investment opportunities for investors and feasible

housing options for potential homeowners. VML Properties will operate in Horry County (90%

of the business) and Northern Georgetown County.

The start-up is led by a team of serial entrepreneurs Jerrad and Machel Green who possess an

acute business sense and bring to the table a solid design, management, and marketing

expertise. Together they founded and continue to run Vintage Marquee Lights, an e-commerce

business that grossed $5M in sales since its inception and attracted customers the like of West

Elm and Anthropologie. Today Jerrad and Machel Green focus on VML Properties LLC and its

successful growth.

At the time of writing, the real estate market is undergoing a confident recovery. Low interest

rates, higher demand and lower prices (due to the housing crash in 2008) have resulted in

approximately 20% gains in the median price of new and existing homes in the past two years.

The return on investment (ROI) is higher than that of the stock market, which makes VML

Properties proposition to investors so much more attractive.

The real estate crisis led to more stringent policies for obtaining a credit to buy a home making

it challenging for average consumers to buy and own a house. VML Properties is driven to

change this situation by making purchasing real estate more affordable and simple, thus

contributing to the improvement of life in the local community.

What We Sell

VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real

estate investment start-up that provides the following services:

• wholesale of real estate

• redesign and reconstruction

• rentals, lease-to-own options

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• property financing

• investment opportunities

Who We Sell To

VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real

estate investment start-up that focuses on serving Horry (90% of the business) and Northern

Georgetown Counties in the state of South Carolina. Given the range of the services the

company provides, its target market is represented by potential home owners and real estate

investors.

According to the reports released by the city of Myrtle Beach and the county (Horry County),

the real estate market in the area is undergoing a rapid revival - the demand has increased and

so is the construction. VML Properties is determined to seize this market opportunity and assist

many potential home owners with realizing their dreams while providing sizable ROI for its

investors.

Financial Summary

Financial Highlights

Financial Highlights by Year

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CompanyCompany Overview

VML Properties is a real estate investment start-up located in Myrtle Beach, SC. The company is

focused on providing lucrative investment opportunities for investors and feasible housing

options for potential homeowners. VML Properties will operate in Horry County and Northern

Georgetown County.

At the time of writing, the real estate market is undergoing a confident recovery. Low interest

rates, higher demand and lower prices (due to the housing crash in 2008) have resulted in

approximately 20% gains in the median price of new and existing homes in the past two years.

The return on investment (ROI) is higher than that of the stock market, which makes VML

Properties proposition to investors so much more attractive.

The real estate crisis led to more stringent policies for obtaining a credit to buy a home making

it challenging for average consumers to buy and own a house. VML Properties is driven to

change this situation by making purchasing real estate more affordable and simple, thus

contributing to the improvement of life in the local community.

The start-up plans to leverage online marketing to drive awareness of its offerings and

streamline its operations by utilizing technology to post listings, conduct communication with

potential buyers, and manage its contractors.

The company was registered as a limited liability corporation in the state of South Carolina in

2015 and is currently located at 405 Emerson Dr, Myrtle Beach, SC 29579. Jerrad Green owns

50% of the start-up and Machel Green the remaining half. The capital requirement of the start-

up is $100,000 in the form of a first lien loan.

Management Team

The management team of VML Properties LLC is comprised of Jerrad Green, CEO and Machel

Green, Head Designer.

Jerrad Green, Chief Executive Officer

Responsibilities of Mr. Green include but are not limited to:

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• Developing and maintaining the vision of the company

• Overseeing marketing, service development, property acquisitions, finance, customer

service, etc.

• Approving all financial obligations

• Seeking business opportunities and strategic alliances with other companies and

organizations

• Planning, developing, and establishing policies and objectives of business organization

in accordance with board directives and company charter

• Directing and coordinating financial programs to provide funding for new or

continuing operations in order to maximize return on investments, and increase

productivity

Machel Green, Head Designer

Responsibilities of Mrs. Green include but are not limited to:

• Managing redesign of properties

• Coordinating business operations

• Assisting CEO with processing of financial transactions and fulfilling obligations

Management Team Background

Jerrad and Machel Green are serial entrepreneurs with an acute business sense and a strong

work ethic. As a husband and wife team, they have founded and continue to operate Vintage

Marquee Lights, an eCommerce business delivering custom-made lighting and signage

products. The company grossed $5 million in sales since 2011 and has a client list that includes

established brand names such as Pottery Barn, West Elm and Anthropologie, along with

hundreds of local names nationwide.

Jerrad and Machel Green are focused on making VML Properties a success. Their professional

track records demonstrate their commitment to achieving goals and delivering on promises.

Mr. Green is an accomplished country singer who had performed on a Grammy award-

winning album before graduating high school. Mrs. Green is a world class dancer with a career

spanning more than two decades and recognition including the title of Miss Dance of South

Carolina. Evidently, they are a team of top performers who define goals and execute to the best

of their abilities.

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Staffing

The management team recognizes the existing personnel gaps in the business. VML Properties

utilizes contractors to research and post vacant real estate on its website for purchase. Internet

and SEO as well as other projects are and will be outsourced to maximize profits and ensure

growth.

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Products and ServicesProducts and Services

VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real

estate investment start-up that provides the following services:

• wholesale of real estate

• redesign and reconstruction

• rentals, lease-to-own options

• property financing

• investment opportunities

All of the above services are delivered exclusively in Horry and Northern Georgetown Counties

and performed through:

• www.vmlproperties.com - a website featuring housing listings available for sale

immediately and directly from an owner

• www.HorryCountyHouseHunters.com - a site containing housing posts generated

through direct contact with an owner willing to sell and through research and due

diligence of independent contractors

• www.VMLsellsHouses.com - an online destination targeted at buyers who wish to

purchase housing for cash. These are the clients that VML Properties "wholesales"

houses to while collecting a fee averaging $5,000.

• www.GrandStrandHomeFinancing.com - a website that collects leads who are

interested in buying from VML Properties LLC on terms/payments because they cannot

qualify for a traditional mortgage for various reasons. The start-up requires a small

down payment (around 5% of the total price of the home) and finances properties to

clients at a high interest rate. This allows potential customers to own a home and

rebuild their credits. In this situation, VML Properties can either sell the mortgage to a

“note buyer” for a discount and cash-out, or the homeowner can refinance in the future

with a traditional mortgage when they have a better credit.

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Investment Opportunities

South Carolina is one of the top states for growth in self-employment, growth in exports, job

placement efficiency, and business-friendly state-and-local tax climate. South Carolina is

consistently ranked as one of the nation's most pro-business states by Forbes. The state’s tax

climate rewards investment and new employment by offering the lowest corporate income tax

in the Southeast and no inventory tax. The tax incentive list also includes tax exemptions,

abatements, moratoriums, credits and reductions for new and expanding companies.

According to the U.S. Census Bureau, South Carolina has one of the lowest per capita tax rates

in the country, and lawmakers, state political leaders and local officials are committed to

ensuring that the tax structure remains competitive and attractive to individuals,

manufacturers and small business owners who may be considering South Carolina as the

location of their future investment.

VML Properties offers its investors peace of mind by requesting $100,000 as a first lien loan. In

the event a loan is in default, and the collateral securing the loan is liquidated, the lender of

record in the first lien position receives repayment of the lien amount, provided that the

collateral secured the outstanding loan balance. If, after liquidation, funds remain, the

subordinate lien holders (secondary, tertiary, etc.) will be repaid until such time as all of the

funds are liquidated, or no additional liens remain unpaid.

The management team at VML Properties LLC is confident in feasibility of the investment

opportunity it offers to potential lenders. Growing demand for housing coupled with business-

friendly conditions in the state of South Carolina further reinforce the solid foundation of the

investment.

Technology

VML Properties LLC will conduct business online through the sites it owns and manages.

Utilization of online technologies by VML goes in line with consumer trends developed in the

past years.

In 2014, online advertising spending in the real estate industry reached nearly $16 billion

(which makes up 56% of the overall ad spending), a 210% increase since 2009. Consumers use

of online search reached an all-time high of 92% for home-related search, and crested to

almost 60% mobile and tablet usage on weekends. This change is undergoing rapidly. Given

that there were over 5 million residential sales in 2013, the value of the online experience takes

on a whole new meaning. This trend is not going away anytime soon. While people still need a

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human touch to solidify their buying decisions, their information gathering process is now

dominated by the digital tools we have all come to rely on.

Competitors

VML Properties LLC faces direct competition from nationwide online services and local real

estate businesses.

Real estate listing websites include:

• HomeFinder.com

• MLS.com

• Zillow.com

• Trulia.com

• realtor.com

• RedFin.com

• Homes.com

• ZipRealty.com

Local real estate businesses include:

• Myrtle Beach Resort Vacations

• North Beach Realty

• RE/MAX Southern Shores

• Rose Real Estate

• Beachcomber Locations

• Berkshire Hathaway HomeServices Myrtle Beach Real Estate

• Century 21 Boling & Associates, Inc.

• Century 21 Broadhurst & Associates, Inc.

• Century 21 Thomas

• CondoLux Realty

• Dockside Realty

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• Dunes Realty

• McMillan Real Estate, Inc.

• Bluewater Properties

• Oceanfront Guru

• Watermark Real Estate Group

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Target MarketMarket Overview

Horry County population statistics:

• Population: 298,832 (US Census)

• Schools: 62

• Household Median Income: 43,142

• Median age: 42.6

• Number of households: 114,103

• Persons per household: 2.5

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Real estate statistics in Horry County:

• Number of housing units: 189,521

• Types of structure: 50% single units

• Median value of owner-occupied housing units: $151,500

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Market Trends

The real estate market in Horry County is taking off, according to numbers released by the

county and the city of Myrtle Beach (November, 2014). Building permits for residential homes

have increased over the last six months in the county.

Ernie Derrick, president of Coastal Carolina Association of Realtors, says for buyers, the market

is in their favor because as the market increases and pricing comes back it gets them into a

better financial position and more equity in their pocket.

For sellers, the situation is favorable due to the growing housing market - the new

construction will add value to their homes. "The maximum price increase they can see over a

five year period is 15%. So it's not going to affect their taxes but they will reap the benefits of

having appreciation in their property at such time they do want to sell it," says Mr. Derrick.

Between July and September of 2014, Horry County saw a 41% increase of residential permits

compared to 2013 at the same time. The city of Myrtle Beach is receiving about two, single

family home, building permits per day. In January of 2014, they had only 36, compared to 73 in

July.

"The Market Common is a hot destination these days. And there are still lots of room for new

home construction there. Plus we are seeing a good bit up in the Grand Dunes area," said Mark

Kruea, the spokesperson for the city of Myrtle Beach.

Derrick says there is rhyme and reason for the boom in the real estate business at this time. He

says more people are employed in the market place today, people have savings, and they're

able to get money out of their savings in today's market. Houses that are selling fast are priced

at $150,000 or less. "They're developing and putting sticks in the ground and housing's coming

up," said Derrick.

Kruea says the demand for so many building permits, both residential and commercial has

forced the city to hire two additional building inspectors within the past year. "Single family

home building has been building, over the last couple of years," said Kruea. "It's growing at a

very rapid rate."

In addition, the current Horry County real estate market is clamoring for upscale properties

and properties of this type are selling steadily. There is a growing demand for oceanfront and

boulevard (just across the street from the beach) properties. New resorts are being developed

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and sold out within short time periods. Condominiums and large, private homes are being

built along the once remote Intracoastal Waterway.

With the recent additions of Veterans Highway (Hwy. 22) and the Carolina Bays Parkway (Hwy.

31), the inland countryside and coastal areas are suddenly joined as never before. Traveling to

and from the beach areas has never been easier. As a result of the expanded road system, the

availability of properties close to the beach at reasonable prices is presenting new

opportunities.

Based on the strong demand, the Horry County real estate presents a lucrative investment

opportunity and presents a potential for a relatively high return on investment (ROI).

Industry Analysis

Real estate industry's NAICS code is 531000. It is a mature industry with several key players

serving a vast market.

Real estate market statistics:

• There are roughly 133,026,000 housing units in the United States. The combined value

of these homes is around $25.7 trillion

• Housing units in the USA are worth more than the combined GDP of the entire

European Union ($18.1 trillion)

• Mortgage rates remain low: mortgage payments currently consume 15.6% of monthly

family income on average, down from 23.5% in 2006

• The national median existing-home price was $208,500, the highest since 2007

($219,000) and a 5.8 percent increase from 2013 ($197,100)

• In 2014, there were 4.93 million home sales

Real estate industry statistics:

• The real estate industry employs over 2 million people, including more than 430,000

agents and brokers. That’s about 1.4% of the working civilian population of the U.S

• 84% of real estate firms are independent, non-franchised companies, 13% are

independent franchises and 3% are corporate subsidiaries

• 4 out of 5 residential real estate brokerage firms have a single office

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Real estate housing demand:

• Total employment in the U.S. is projected to increase between 2012 and 2022, by 15.6

million, or about 10.8%

• According to the National Association of Home Builders (NAHB), single-family starts

could be closing in on 1 million units by the end of 2015 and multifamily production

could go as high as 500,000 units

• Foreign investors continue to see US real estate as a safe investment. In 2014,

transactions with foreign buyers accounted for $92.2 billion in sales

Real estate is an online business:

• 92% of people now use the Internet in their home search

• Between 2009 and 2013, real estate-related Google searches increased by 253%

• On weekends, 59% of page views on real estate websites come from smartphones and

tablets

Key Customers

VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real

estate investment start-up that focuses on serving Horry (90% of the business) and Northern

Georgetown Counties in the state of South Carolina. Given the range of the services the

company provides, its target market is represented by potential home owners and real estate

investors.

According to the reports released by the city of Myrtle Beach and the county (Horry County),

the real estate market in the area is undergoing a rapid revival - the demand has increased and

so is the construction. VML Properties is determined to seize this market opportunity and assist

many potential home owners with realizing their dreams while providing sizable ROI for its

investors.

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Strategy and ImplementationSWOT Analysis

Strengths

The strengths of VML Properties LLC include:

• an experienced management team with a proven track record of setting and achieving

business goals

• an aggressive and focused marketing campaign with defined objectives and strategies

• lean operations based on increased technology deployment

Weaknesses

The weaknesses of VML Properties consist of:

• a specific market niche (Horry County) and area of service that limit the number of

possible deals

• limitations of a small business entering the market that is populated by larger real estate

players

• a lack of resources and investment

Opportunities

The opportunities for VML Properties LLC comprise of:

• a strong and growing demand for housing in the Horry County area (please see the

Target Market section for reference)

• a limited access to financing their home purchases for individuals

• an improving economy and job market - factors that make many potential home buyers

consider purchasing their real estate

• high rents force millennials to opt for buying vs renting. Millennials made up 32% of the

U.S. housing market in 2014, up from 28% two years earlier, and have pulled ahead of

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the older Generation X as the largest segment of buyers, according to the National

Association of Realtors.

Threats

The threats for VML Properties LLC include:

• a saturated and mature real estate market

• an easy-to-replicate business model

• reliance on online search and technology vs face-to-face communication

Competitive Edge

VML Properties LLC stands for transparency and reliability. Over the years, the management

team has demonstrated an unprecedented commitment to quality service and timeliness that

resulted in acquiring clients the like of West Elm and Antropologie. These values lay the

foundation of VML Properties, a real estate investment start-up that is dedicated to ensuring

high ROI for its investors and providing affordable and simple housing options for future

home owners in Horry County.

Marketing Activities

The marketing strategy of VML Properties LLC includes:

• Outdoor and print advertising. Bandit signs will be placed in the Little River, North

Myrtle Beach, and Conway areas. Also, newspaper ads and business cards will be

located around the town.

• Direct mail campaigns

• Online marketing. A lot of SEO and Google analytics work is and will be put into making

the company's sites to make VML Properties the most visible in the area. VML Properties

plans to place advertisements online on free-of-charge websites such as Craigslist,

Backpage, etc. In addition, email campaigns will be used to target potential home sellers

and buyers.

• Event marketing and networking. Local Real Estate Investment Association meetings is

also where the management team will conduct promotional activities and networking

to generate leads and raise awareness about the company's services.

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Financial PlanRevenue Forecast

Revenue Forecast

FY2016 FY2017 FY2018

Total Revenue $3,150,000 $4,650,000 $5,250,000

Total Direct Cost $2,835,000 $4,185,000 $4,725,000

Gross Margin $315,000 $465,000 $525,000

Gross Margin % 10% 10% 10%

Revenue by Month

About the Revenue Forecast

The revenue projections assume a 10% profit margin for the real-estate activities. The first-year

growth is robust and supported by an aggressive and defined marketing strategy. The yearly

sales increase as the business spreads awareness about its offerings in the target area and the

state of economy improves.

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Personnel Plan

Personnel Table

FY2016 FY2017 FY2018

New Employee $0 $0 $0

Total $0 $0 $0

About the Personnel Plan

Budget

Budget Table

FY2016 FY2017 FY2018

Operating Expenses

Salary $0 $0 $0

Employee Related Expenses $0 $0 $0

Marketing & Promotions $12,000 $12,000 $12,000

Office Supplies and Expenses $6,000 $6,000 $6,000

Website Hosting $600 $600 $600

Contractors $7,200 $7,200 $7,200

Total Operating Expenses $25,800 $25,800 $25,800

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Expenses by Month

About the Budget

The budget for VML Properties LLC takes into account that the management team doesn't get

paid salaries for the work performed and instead receives a percentage of the profits. The

company utilizes the services of contractors to find, evaluate, and submit real estate postings

to the company's database, thus eliminating the employee-related expenses and taxes. The

main operating expense of VML Properties is marketing and advertising as the company relies

heavily on the online tools to generate leads and close sales. Professional services (legal,

accounting, etc.) will be used on an "as needed" basis.

Startup Costs

Total start-up costs included incorporation fees, websites, and industry training for the

management/founders' team. These costs have been financed by the founders and have been

paid off.

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Cash Flow Assumptions

Cash Flow Assumptions

Cash Inflow

% of Sales on Credit 100%

Avg Collection Period (Days) 30

Cash Outflow

% of Purchases on Credit 100%

Avg Payment Delay (Days) 30

About the Cash Flow Assumptions

VML Properties LLC sets the payment schedule for the company's expenses at 30 days. On the

client side, some of the start-up's transactions will be processed with an average delay of 30

days (individual's financing, etc.).

Loans and Investments

Loans and Investments Table

FY2016 FY2017 FY2018

First Lien LoanLoan at 5% interest for 36 mos. $100,000 $0 $0

Total Amount Received $100,000 $0 $0

Sources of Funds

VML Properties LLC is looking to raise $100,000 from an outside investor in the form of a first

lien loan, a secured form of debt that has first priority in payment in the event of a company's

liquification. This setup allows to guarantee a safe and secure investment for a potential lender.

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Use of Funds

The planned financing is expected to provide a working capital for the company in order to

secure real estate purchases. The loan will be paid off based on the terms negotiated with each

lender individually.

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Financial StatementsProfit and Loss Statement

Profit and Loss Statement

FY2016 FY2017 FY2018

Revenue $3,150,000 $4,650,000 $5,250,000

Direct Cost $2,835,000 $4,185,000 $4,725,000

Gross Margin $315,000 $465,000 $525,000

Gross Margin % 10% 10% 10%

Operating Expenses

Salary $0 $0 $0

Employee Related Expenses $0 $0 $0

Marketing & Promotions $12,000 $12,000 $12,000

Office Supplies and Expenses $6,000 $6,000 $6,000

Website Hosting $600 $600 $600

Contractors $7,200 $7,200 $7,200

Total Operating Expenses $25,800 $25,800 $25,800

Operating Income $289,200 $439,200 $499,200

Interest Incurred $3,675 $2,936 $1,245

Depreciation and Amortization $0 $0 $0

Income Taxes $57,105 $87,253 $99,591

Total Expenses $2,921,580 $4,300,989 $4,851,636

Net Profit $228,420 $349,011 $398,364

Net Profit / Sales 7% 8% 8%

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Gross Margin by Year

Net Profit (or Loss) by Year

About the Profit and Loss Statement

Gross margins are in line with the industry's standards. Profits rise from year to year due to

increased awareness of the company's services and positive feedback. Operating expenses

remain the same or increase slightly.

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Balance Sheet

Balance Sheet

As of Period's End FY2016 FY2017 FY2018

Cash $259,275 $581,508 $940,153

Accounts Receivable $450,000 $387,500 $437,500

Inventory $0 $0 $0

Total Current Assets $709,275 $969,008 $1,377,653

Long-Term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

Total Long-Term Assets $0 $0 $0

Total Assets $709,275 $969,008 $1,377,653

Accounts Payable $407,150 $350,900 $395,900

Sales Taxes Payable $0 $0 $0

Short-Term Debt $0 $0 $0

Total Current Liabilities $407,150 $350,900 $395,900

Long-Term Debt $73,705 $40,677 $5,958

Total Liabilities $480,855 $391,577 $401,858

Paid-In Capital $0 $0 $0

Retained Earnings $0 $228,420 $577,431

Earnings $228,420 $349,011 $398,364

Total Owner's Equity $228,420 $577,431 $975,795

Total Liabilities & Equity $709,275 $969,008 $1,377,653

About the Balance Sheet

As the balance sheer showcases, the company does not expect any interruptions associated

with meeting loan obligations. Additional financing may be considered to increase the volume

of sales and broaden the area of operations.

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Cash Flow Statement

Cash Flow Statement

FY2016 FY2017 FY2018

Operations

Net Profit $228,420 $349,011 $398,364

Depreciation and Amortization $0 $0 $0

Change in Accounts Receivable ($450,000) $62,500 ($50,000)

Change in Inventory $0 $0 $0

Change in Accounts Payable $407,150 ($56,250) $45,000

Change in Sales Taxes Payable $0 $0 $0

Net Cash Flow from Operations $185,570 $355,261 $393,364

Investing & Financing

Assets Purchased or Sold $0 $0 $0

Investments Received $0 $0 $0

Change in Short-Term Debt $0 $0 $0

Change in Long-Term Debt $73,705 ($33,028) ($34,719)

Net Cash Flow from Investing & Financing $73,705 ($33,028) ($34,719)

Cash at Beginning of Period $0 $259,275 $581,508

Net Change in Cash $259,275 $322,233 $358,645

Cash at End of Period $259,275 $581,508 $940,153

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Cash Flow by Month

Cash Flow by Year

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AppendixRevenue Forecast

Revenue Forecast Table (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

Total Revenue $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000

Total Direct Cost $0 $135,000 $135,000 $135,000 $135,000 $270,000 $270,000 $270,000 $270,000 $405,000 $405,000 $405,000

Gross Margin $0 $15,000 $15,000 $15,000 $15,000 $30,000 $30,000 $30,000 $30,000 $45,000 $45,000 $45,000

Gross Margin % 0% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

FY2016 FY2017 FY2018

Total Revenue $3,150,000 $4,650,000 $5,250,000

Total Direct Cost $2,835,000 $4,185,000 $4,725,000

Gross Margin $315,000 $465,000 $525,000

Gross Margin % 10% 10% 10%

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Personnel Plan

Personnel Table (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

New Employee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

FY2016 FY2017 FY2018

New Employee $0 $0 $0

Total $0 $0 $0

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Budget

Budget Table (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

Operating Expenses

Salary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Employee Related Expenses

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing & Promotions $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Office Supplies and Expenses

$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Website Hosting $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

Contractors $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Total Operating Expenses

$2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150

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FY2016 FY2017 FY2018

Operating Expenses

Salary $0 $0 $0

Employee Related Expenses $0 $0 $0

Marketing & Promotions $12,000 $12,000 $12,000

Office Supplies and Expenses $6,000 $6,000 $6,000

Website Hosting $600 $600 $600

Contractors $7,200 $7,200 $7,200

Total Operating Expenses $25,800 $25,800 $25,800

Loans and Investments

Loans and Investments Table (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

First Lien LoanLoan at 5% interest for 36 mos.

$0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Amount Received

$0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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FY2016 FY2017 FY2018

First Lien LoanLoan at 5% interest for 36 mos. $100,000 $0 $0

Total Amount Received $100,000 $0 $0

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Profit and Loss Statement

Profit and Loss Statement (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

Revenue $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000

Direct Cost $0 $135,000 $135,000 $135,000 $135,000 $270,000 $270,000 $270,000 $270,000 $405,000 $405,000 $405,000

Gross Margin $0 $15,000 $15,000 $15,000 $15,000 $30,000 $30,000 $30,000 $30,000 $45,000 $45,000 $45,000

Gross Margin % 0% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

Operating Expenses

Salary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Employee Related Expenses

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing & Promotions $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Office Supplies and Expenses

$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Website Hosting $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

Contractors $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Total Operating Expenses

$2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150

Operating Income ($2,150) $12,850 $12,850 $12,850 $12,850 $27,850 $27,850 $27,850 $27,850 $42,850 $42,850 $42,850

Interest Incurred $0 $0 $417 $406 $395 $384 $373 $362 $351 $340 $329 $318

Depreciation and Amortization

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Income Taxes $0 $2,140 $2,487 $2,488 $2,491 $5,494 $5,495 $5,498 $5,499 $8,502 $8,505 $8,506

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Total Expenses $2,150 $139,290 $140,054 $140,044 $140,036 $278,028 $278,018 $278,010 $278,000 $415,992 $415,984 $415,974

Net Profit ($2,150) $10,710 $9,946 $9,956 $9,964 $21,972 $21,982 $21,990 $22,000 $34,008 $34,016 $34,026

Net Profit / Sales 0% 7% 7% 7% 7% 7% 7% 7% 7% 8% 8% 8%

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FY2016 FY2017 FY2018

Revenue $3,150,000 $4,650,000 $5,250,000

Direct Cost $2,835,000 $4,185,000 $4,725,000

Gross Margin $315,000 $465,000 $525,000

Gross Margin % 10% 10% 10%

Operating Expenses

Salary $0 $0 $0

Employee Related Expenses $0 $0 $0

Marketing & Promotions $12,000 $12,000 $12,000

Office Supplies and Expenses $6,000 $6,000 $6,000

Website Hosting $600 $600 $600

Contractors $7,200 $7,200 $7,200

Total Operating Expenses $25,800 $25,800 $25,800

Operating Income $289,200 $439,200 $499,200

Interest Incurred $3,675 $2,936 $1,245

Depreciation and Amortization $0 $0 $0

Income Taxes $57,105 $87,253 $99,591

Total Expenses $2,921,580 $4,300,989 $4,851,636

Net Profit $228,420 $349,011 $398,364

Net Profit / Sales 7% 8% 8%

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Balance Sheet

Balance Sheet (With Monthly Detail)

As of Period's End Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

Cash $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928 $259,275

Accounts Receivable $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000

Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets

$0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275

Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Assets $0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275

Accounts Payable $2,150 $137,150 $137,150 $137,150 $137,150 $272,150 $272,150 $272,150 $272,150 $407,150 $407,150 $407,150

Sales Taxes Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Liabilities

$2,150 $137,150 $137,150 $137,150 $137,150 $272,150 $272,150 $272,150 $272,150 $407,150 $407,150 $407,150

Long-Term Debt $0 $100,000 $97,420 $94,829 $92,227 $89,614 $86,990 $84,355 $81,709 $79,052 $76,384 $73,705

Total Liabilities $2,150 $237,150 $234,570 $231,979 $229,377 $361,764 $359,140 $356,505 $353,859 $486,202 $483,534 $480,855

Paid-In Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings ($2,150) $8,560 $18,506 $28,462 $38,426 $60,398 $82,380 $104,370 $126,370 $160,378 $194,394 $228,420

Total Owner's Equity

($2,150) $8,560 $18,506 $28,462 $38,426 $60,398 $82,380 $104,370 $126,370 $160,378 $194,394 $228,420

Total Liabilities & Equity

$0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275

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As of Period's End FY2016 FY2017 FY2018

Cash $259,275 $581,508 $940,153

Accounts Receivable $450,000 $387,500 $437,500

Inventory $0 $0 $0

Total Current Assets $709,275 $969,008 $1,377,653

Long-Term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

Total Long-Term Assets $0 $0 $0

Total Assets $709,275 $969,008 $1,377,653

Accounts Payable $407,150 $350,900 $395,900

Sales Taxes Payable $0 $0 $0

Short-Term Debt $0 $0 $0

Total Current Liabilities $407,150 $350,900 $395,900

Long-Term Debt $73,705 $40,677 $5,958

Total Liabilities $480,855 $391,577 $401,858

Paid-In Capital $0 $0 $0

Retained Earnings $0 $228,420 $577,431

Earnings $228,420 $349,011 $398,364

Total Owner's Equity $228,420 $577,431 $975,795

Total Liabilities & Equity $709,275 $969,008 $1,377,653

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Cash Flow Statement

Cash Flow Statement (With Monthly Detail)

FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16

Operations

Net Profit ($2,150) $10,710 $9,946 $9,956 $9,964 $21,972 $21,982 $21,990 $22,000 $34,008 $34,016 $34,026

Depreciation and Amortization

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Accounts Receivable

$0 ($150,000) $0 $0 $0 ($150,000) $0 $0 $0 ($150,000) $0 $0

Change in Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Accounts Payable

$2,150 $135,000 $0 $0 $0 $135,000 $0 $0 $0 $135,000 $0 $0

Change in Sales Taxes Payable

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Cash Flow from Operations

$0 ($4,290) $9,946 $9,956 $9,964 $6,972 $21,982 $21,990 $22,000 $19,008 $34,016 $34,026

Investing & Financing

Assets Purchased or Sold

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Investments Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Short-Term Debt

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Long-Term Debt

$0 $100,000 ($2,580) ($2,591) ($2,602) ($2,613) ($2,624) ($2,635) ($2,646) ($2,657) ($2,668) ($2,679)

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Net Cash Flow from Investing & Financing

$0 $100,000 ($2,580) ($2,591) ($2,602) ($2,613) ($2,624) ($2,635) ($2,646) ($2,657) ($2,668) ($2,679)

Cash at Beginning of Period

$0 $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928

Net Change in Cash $0 $95,710 $7,366 $7,365 $7,362 $4,359 $19,358 $19,355 $19,354 $16,351 $31,348 $31,347

Cash at End of Period $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928 $259,275

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FY2016 FY2017 FY2018

Operations

Net Profit $228,420 $349,011 $398,364

Depreciation and Amortization $0 $0 $0

Change in Accounts Receivable ($450,000) $62,500 ($50,000)

Change in Inventory $0 $0 $0

Change in Accounts Payable $407,150 ($56,250) $45,000

Change in Sales Taxes Payable $0 $0 $0

Net Cash Flow from Operations $185,570 $355,261 $393,364

Investing & Financing

Assets Purchased or Sold $0 $0 $0

Investments Received $0 $0 $0

Change in Short-Term Debt $0 $0 $0

Change in Long-Term Debt $73,705 ($33,028) ($34,719)

Net Cash Flow from Investing & Financing $73,705 ($33,028) ($34,719)

Cash at Beginning of Period $0 $259,275 $581,508

Net Change in Cash $259,275 $322,233 $358,645

Cash at End of Period $259,275 $581,508 $940,153