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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 text from the original plan may have been omitted to preserve confidentiality and proprietary information.

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This is a business plan. It does not imply an offering of securities.

 

1.0 Executive Summary.. 1

1.1 Mission.. 2

Chart: Highlights. 2

2.0 Company Summary.. 2

Table: Start-up.. 3

Chart: Start-up.. 3

Table: Start-up Funding.. 4

2.1 Safety.. 4

3.0 Services. 5

3.1 Applications. 5

4.0 Market Analysis Summary.. 6

4.1 Market Segmentation.. 6

Chart: Market Analysis (Pie). 7

Table: Market Analysis. 7

5.0 Strategy and Implementation Summary.. 7

5.1 Sales Forecast. 8

Table: Sales Forecast. 8

Chart: Sales Monthly.. 9

Chart: Sales by Year. 9

5.2 Marketing Strategy.. 10

6.0 Management Summary.. 11

6.1 Personnel Plan.. 11

Table: Personnel 11

7.0 Financial Plan.. 12

7.1 Projected Cash Flow.. 12

Chart: Cash.. 12

Table: Cash Flow.. 13

7.2 Break-even Analysis. 14

Chart: Break-even Analysis. 14

Table: Break-even Analysis. 14

7.3 Projected Profit and Loss. 15

Chart: Profit Yearly.. 15

Chart: Profit Monthly.. 15

Table: Profit and Loss. 16

Chart: Gross Margin Monthly.. 17

7.4 Projected Balance Sheet. 18

Table: Balance Sheet. 18

7.5 Business Ratios. 18

Table: Ratios. 19

Table: Sales Forecast. 1

Table: Personnel 2

Table: Personnel 2

Table: General Assumptions. 3

Table: General Assumptions. 3

Table: Profit and Loss. 4

Table: Profit and Loss. 4

Table: Cash Flow.. 5

Table: Balance Sheet. 6

 

1.0 Executive Summary

Introduction
Concrete Installation LLC plans to become the leading provider of concrete formwork services in the area. This means always having the best and most efficient facilities, processes, and people. To achieve this, Concrete Installation is investing in many ways that will pay off in competitive advantages for its customers.

The company’s overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress.

Concrete Installation is an Oklahoma Limited Liability company, with principal offices located in Sulphur, Oklahoma. Concrete Installation’s management is highly experienced and qualified. Mr. Barry Newman leads the management team with over ten years of experience in the construction industry.

Products/Services
Concrete Installation has developed sophisticated formwork solutions for some of the most complex construction projects being done today. The company’s standard form systems are versatile and completely adaptable to a variety of configurations such as Y-walls, shafts, and circular walls.

The Concrete Installation system can be adapted to almost any construction requirement that calls for forming. The company’s expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the formwork package.

Owners, developers, construction managers, general contractors, and concrete subcontractors have realized substantial savings in labor and material costs by using structural contours construction methods, systems and equipment. Applications include commercial and residential structures, bridges, educational projects, recreational projects, civil projects, tunnels, utility projects, environmental projects, and virtually every other type of concrete construction.

The Market
The housing industry has proceeded at a red-hot pace for several years running. An all-time record was set in 1998, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997, and an 8.1% rise from the prior record of 819,000 units in 1977. Single-family housing construction accounted for $48 million of the total $125 million generated in the industry. This makes for an excellent opportunity to expand Concrete Installation operations and gain significant market share in its primary target market segment. The company also plans to focus to a lesser extent on the residential and heavy construction industry, which is also very robust at the moment.

The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The market strategy is to capitalize on Concrete Installation’s alliances by securing city, county, and state and federal government contracts.

Concrete Installation plans to use a direct sales force, relationship selling, and subcontractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

Financial Considerations
We expect to be profitable during the first year of operations. Despite initial large outlays in cash to promote sales, the company’s cash account is expected to remain healthy. The company expects to earn approximately 1.5 million dollars in revenue by Year 3.

1.1 Mission

The mission of Concrete Installation is to provide quality service at competitive pricing.

 

Chart: Highlights

2.0 Company Summary

Concrete Installation is an Oklahoma Limited Liability company, with principal offices located in Sulphur, Oklahoma.

Table: Start-up

 

Start-up 
  
Requirements 
  
Start-up Expenses 
Legal$500
Stationery etc.$100
Brochures$500
Consultants$1,000
Insurance$15,000
Rent$500
Expensed equipment$14,000
Other$1,400
Total Start-up Expenses$33,000
  
Start-up Assets 
Cash Required$132,000
Start-up Inventory$0
Other Current Assets$30,000
Long-term Assets$20,000
Total Assets$182,000
  
Total Requirements$215,000

Chart: Start-up

Table: Start-up Funding

 

Start-up Funding 
Start-up Expenses to Fund$33,000
Start-up Assets to Fund$182,000
Total Funding Required$215,000
  
Assets 
Non-cash Assets from Start-up$50,000
Cash Requirements from Start-up$132,000
Additional Cash Raised$0
Cash Balance on Starting Date$132,000
Total Assets$182,000
  
  
Liabilities and Capital 
  
Liabilities 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Total Liabilities$0
  
Capital 
  
Planned Investment 
Barry Newman$15,000
Investor$200,000
Additional Investment Requirement$0
Total Planned Investment$215,000
  
Loss at Start-up (Start-up Expenses)($33,000)
Total Capital$182,000
  
  
Total Capital and Liabilities$182,000
  
Total Funding $215,000

 

2.1 Safety

Concrete Installation will be committed to conducting business in a manner that protects the health and safety of all employees, customers, and persons living in the community where it operates. To accomplish this, Concrete Installation will ensure that it complies with current Health Administration and Occupational Health and Safety laws and will maintain its operations, procedures, technologies, and policies accordingly. Each employee will have the responsibility to fully comply with established safety rules and to perform work in such a manner to prevent injuries to themselves and others. Concrete Installation is very concerned about job-site safety and plans to set up a comprehensive safety program.

3.0 Services

The Concrete Installation system can be adapted to almost any construction requirement that calls for forming. The company’s expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the formwork package.

Owners, developers, construction managers, general contractors, and concrete subcontractors have realized substantial savings in labor and material costs by using structural contours construction methods, systems and equipment. Applications include commercial and residential structures, bridges, educational projects, recreational projects, civil projects, tunnels, utility projects, environmental projects, and virtually every other type of concrete construction.

Concrete Installation’s formworks will offer major advances, complete adaptability, and high strength-to-weight ratio, and all at cost effective prices. Assembly will be quick and easy. During form use, maintenance will be minimal. Concrete Installation will recommend, as a safety precaution, occasional inspection for bolts and nuts that may have loosened from handling.

The required formwork drawings that Concrete Installation will furnish to the contractor eliminate all guesswork. The company will specify the order of assembly and erection including the location of the strongbacks and joists, the location and actual loading of the form ties, location of all accessories and advise clients of the maximum allowable rate of concrete placement.

Accident prevention is the cornerstone of Concrete Installation’s safety commitment. The company will strive to eliminate foreseeable hazards which could result in personal injury or illness; at Concrete Installation, health and safety will not be compromised. Concrete Installation will sell its services clients in the area of commercial construction.

3.1 Applications

The following applications are uses for Concrete Installation’s services.

  • Foundations
  • Parking Lots
  • Parking Garages
  • Low Rise/Tilt-Up
  • High Rise
  • Flowable Fill/Soil Displacement
  • Retaining Walls

4.0 Market Analysis Summary

Industry Statistics – Concrete Work

Special trade contractors primarily engaged in concrete work, including portland cement and asphalt.

Estimated number of U.S. establishments30,214
Number of people employed in this industry230,338
Total annual sales in this industry$21 million
Average employees per establishment8
Average sales per establishment$.7 million

 

Establishments primarily engaged in manufacturing portland cement concrete manufactured and delivered to a purchaser in a plastic and unhardened steel.

Estimated number of U.S. establishments5,798
Number of people employed in this industry89,662
Total annual sales in this industry$19 million
Average number of employees per establishment17
Average sales per establishment$6.5 million

4.1 Market Segmentation

The housing industry has proceeded at a red-hot pace for several years running. An all-time record was set in 1998, when 886,000 new-site single family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997, and an 8.1% rise from the prior record of 819,000 units in 1977. Single-family housing construction accounted for $48 million of the total $125 million generated in the industry.

Home sales strengthened even further during most of 1999’s first 10 months. In that period, new single-family home sales increased by 4.8% on a year-to-year basis, to 791,000 units, according to the U.S. Department of Commerce. Through October 1999, seasonally adjusted sales had exceeded 800,000 on an annualized basis in every month since the start of 1998.

The record setting string of home sales since the second half of 1997 has forced builders to pick up the pace of their construction activity. During 1998, total starts increased by 9.7% to 1.62 million units. Starts for single family units moved up 12 % for the year, and those of multifamily units were ahead by 1.5%. As an indication of building activity at year-end 1999, housing starts in November 1999 came in at a seasonally-adjusted annual rate of 1.6 million units.

The table below outlines the total market potential of the three targeted market segments in the served markets (in US$ thousands).

(Information provided by Standard & Poor’s)

 

Chart: Market Analysis (Pie)

Table: Market Analysis

 

Market Analysis       
   Year 1 Year 2 Year 3 Year 4 Year 5 
Potential CustomersGrowth     CAGR
Single-family housing construction8%125,000135,000145,800157,464170,0618.00%
Residential construction5%25,00026,25027,56328,94130,3885.00%
Heavy construction5%50,00052,50055,12557,88160,7755.00%
Total6.90%200,000213,750228,488244,286261,2246.90%

5.0 Strategy and Implementation Summary

The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The market strategy is to capitalize on Concrete Installation’s alliances by securing city, county, and state and federal government contracts.

Concrete Installation will be committed to ensuring that the products used on its’ customers job sites, everything from access scaffolding to concrete shoring frames and forming equipment, is safe and OSHA approved. Along with clients, the company believes in a health and safety initiative that is all pervasive, managing any potential loss in the work environment.

Concrete Installation will develop sophisticated formwork solutions for some of the most complex construction projects being done today. The company’s standard form systems will be versatile and completely adaptable to a variety of configurations such as Y-walls, shafts, and circular walls.

With that in mind, Concrete Installation will adopt a corporate strategy that is dedicated to improving the performance of activities on the critical path of its customers’ projects. The company will do this by building on its core strengths: innovative equipment, design engineering expertise, and project and site management, within an environment of safety excellence.

At Concrete Installation, customer service is a pro-active partnership, a relationship that ensures a professional, efficiently run, safe workplace. The company’s customer service philosophy starts at the top, is ingrained into the fabric of the company, and is closely aligned to Concrete Installation’s goal of contributing to its’ customers critical success factors.

Customer service can be divided into two interrelated areas: equipment and people. On the job site, with the help of a newly integrated technology system and a well-trained staff, Concrete Installation will be able to maintain excellent control over such key areas as inventory, shipments/deliveries, damage loss, and invoicing. Troubleshooting, which customer service representatives often do right on the job site, will be handled quickly and efficiently. On the people side, Concrete Installation will provide a highly qualified and well-prepared labor force, ensuring that schedules and deadlines are met and worker safety remains a top consideration.

5.1 Sales Forecast

The following table and charts show our projected Sales Forecast.

Table: Sales Forecast

 

Sales Forecast   
  Year 1 Year 2 Year 3
Sales   
All construction work$700,000$1,050,000$1,575,000
Other$0$0$0
Total Sales$700,000$1,050,000$1,575,000
    
Direct Cost of Sales Year 1 Year 2 Year 3
All construction work$448,000$558,750$698,437
Other$0$0$0
Subtotal Direct Cost of Sales$448,000$558,750$698,437

 

Chart: Sales Monthly

 

Chart: Sales by Year

5.2 Marketing Strategy

Concrete Installation plans to use a direct sales force, relationship selling, and subcontractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels. The overall marketing plan for Concrete Installation’s service is based on the following fundamentals:

  • The segment of the market(s) planned to reach.
  • Distribution channels planned to be used to reach market segments: television, radio, sales associates, and mail order.
  • Share of the market expected to capture over a fixed period of time.

In addition, Concrete Installation plans to advertise in magazines, newspapers, and radio.

The table and chart below outline the company’s sales forecast for FY2000-2002. In our sales forecasts, the cost of sales includes only direct labor costs (administrative labor costs are discussed below).

Promotional Campaign

Concrete Installation is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an effective promotional campaign to accomplish two primary objectives:

  1. Attract customers who will constantly look to Concrete Installation for their construction projects.
  2. Attract quality sales personnel who have a desire to be successful.

In addition to standard advertisement practices, Concrete Installation will gain considerable recognition through these additional promotional mediums:

  • Press releases sent to major radio stations, newspapers, and magazines.
  • Radio advertising on secondary stations.

Marketing Programs

For the first six months of operation, advertising and promotion is budgeted at approximately $11,000. A fixed amount of sales revenues will go toward the state Concrete Installation advertisement campaign. On an ongoing basis, Concrete Installation feels that it can budget advertising expenses at less than 10% of revenues.

Incentives. As an extra incentive for customers to remember Concrete Installation’s name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with its logo.

Brochures. The objective of brochures is to portray Concrete Installations’ goals and products as an attractive functionality. It is also to show customers how to use the latest in technology as it relates to construction and building services. Concrete Installation will develop three brochures: one to be used to promote sales, one to use to announce the product in a new market, and the other to recruit sales associates.

6.0 Management Summary

The company’s management philosophy will be based on responsibility and mutual respect. Concrete Installation will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees.

Concrete Installation will be responsible to its employees, the men and women who work with the company throughout the state. At Concrete Installation, everyone will be considered as an individual and the company will respect their dignity and recognize their merit. Employees will be encouraged to have a sense of security and pride in their jobs. Additionally, employees will be free to make suggestions and complaints. The company will afford equal opportunity for employment, development, and advancement for those qualified.

Concrete Installation employees will be committed to:

  • Providing a safe work environment to protect employees, the employees of customers and subcontractors, and the public.
  • Supplying safe products for customers.
  • Continuously improving the company’s safety program to reduce the risk of accidents and occupational illness in a changing work environment.
  • Encouraging employees to participate in accident prevention programs and take personal responsibility for their own and their co-workers’ health and safety.
  • Regulatory compliance and contribution to high safety standards for our industry.
  • Monitoring workplaces, enforcing safe work practices, and communicating the company’s safety performance to employees and other stakeholders.
  • Making safety a value-added service that the company provides to its customers.

6.1 Personnel Plan

Concrete Installation’s management is highly experienced and qualified. Mr. Barry Newman leads the management team. Besides the direct labor costs discusses in section 5.0, other labor costs include only Mr. Newman’s assistant and a part-time accountant. The table below outlines Concrete Installation’s personnel plan for FY2000-2002.

Table: Personnel

 

Personnel Plan   
  Year 1 Year 2 Year 3
Administration$43,478$43,478$52,174
Other$0$0$0
Total People333
    
Total Payroll$43,478$43,478$52,174

7.0 Financial Plan

The following sections describe the financials for Concrete Installation.

7.1 Projected Cash Flow

Projected cash flow statements for FY2000-2002 are provided below.

 

Chart: Cash

Table: Cash Flow

 

Pro Forma Cash Flow   
  Year 1 Year 2 Year 3
Cash Received   
    
Cash from Operations   
Cash Sales$175,000$262,500$393,750
Cash from Receivables$436,500$743,250$1,114,875
Subtotal Cash from Operations$611,500$1,005,750$1,508,625
    
Additional Cash Received   
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
Subtotal Cash Received$611,500$1,005,750$1,508,625
    
Expenditures Year 1 Year 2 Year 3
    
Expenditures from Operations   
Cash Spending$43,478$43,478$52,174
Bill Payments$575,604$793,306$1,050,234
Subtotal Spent on Operations$619,082$836,784$1,102,408
    
Additional Cash Spent   
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$105,000$100,000$100,000
Dividends$0$0$0
Subtotal Cash Spent$724,082$936,784$1,202,408
    
Net Cash Flow($112,582)$68,966$306,217
Cash Balance$19,418$88,384$394,601

7.2 Break-even Analysis

During the first year of operations, the break-even sales volume is estimated as shown below.

 

Chart: Break-even Analysis

Table: Break-even Analysis

 

Break-even Analysis 
  
Monthly Revenue Break-even$24,706
  
Assumptions: 
Average Percent Variable Cost64%
Estimated Monthly Fixed Cost$8,894

7.3 Projected Profit and Loss

Concrete Installation is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement.

 

Chart: Profit Yearly

Chart: Profit Monthly

Table: Profit and Loss

 

Pro Forma Profit and Loss   
  Year 1 Year 2 Year 3
Sales$700,000$1,050,000$1,575,000
Direct Cost of Sales$448,000$558,750$698,437
Other$50,000$50,000$50,000
Total Cost of Sales$498,000$608,750$748,437
    
Gross Margin$202,000$441,250$826,563
Gross Margin %28.86%42.02%52.48%
    
    
Expenses   
Payroll$43,478$43,478$52,174
Sales and Marketing and Other Expenses$28,600$77,000$112,000
Depreciation$3,600$5,000$6,000
Gasoline and oil$2,030$4,000$5,000
Telephone$1,500$2,400$2,400
Utilities$6,000$6,000$6,500
Insurance$9,000$9,000$9,000
Rent$6,000$6,500$7,000
Payroll Taxes$6,522$6,522$7,826
Other$0$0$0
    
Total Operating Expenses$106,730$159,900$207,900
    
Profit Before Interest and Taxes$95,270$281,350$618,663
EBITDA$98,870$286,350$624,663
  Interest Expense$0$0$0
  Taxes Incurred$23,621$70,338$157,243
    
Net Profit$71,650$211,013$461,419
Net Profit/Sales10.24%20.10%29.30%

 

Chart: Gross Margin Monthly

 

 

7.4 Projected Balance Sheet

The table below provides Concrete Installation’s projected balance sheets for 2000-2002.

Table: Balance Sheet

 

Pro Forma Balance Sheet   
  Year 1 Year 2 Year 3
Assets   
    
Current Assets   
Cash$19,418$88,384$394,601
Accounts Receivable$88,500$132,750$199,125
Inventory$42,240$63,881$80,029
Other Current Assets$30,000$30,000$30,000
Total Current Assets$180,158$315,015$703,755
    
Long-term Assets   
Long-term Assets$125,000$225,000$325,000
Accumulated Depreciation$3,600$8,600$14,600
Total Long-term Assets$121,400$216,400$310,400
Total Assets$301,558$531,415$1,014,155
    
Liabilities and Capital Year 1 Year 2 Year 3
    
Current Liabilities   
Accounts Payable$47,908$66,752$88,073
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Subtotal Current Liabilities$47,908$66,752$88,073
    
Long-term Liabilities$0$0$0
Total Liabilities$47,908$66,752$88,073
    
Paid-in Capital$215,000$215,000$215,000
Retained Earnings($33,000)$38,650$249,663
Earnings$71,650$211,013$461,419
Total Capital$253,650$464,663$926,082
Total Liabilities and Capital$301,558$531,415$1,014,155
    
Net Worth$253,650$464,663$926,082

7.5 Business Ratios

The following table presents important ratios from the concrete work industry, as determined by the Standard Industry Classification (SIC) Index code 1771.

Table: Ratios

Ratio Analysis    
  Year 1 Year 2 Year 3Industry Profile
Sales Growthn.a.50.00%50.00%7.50%
     
Percent of Total Assets    
Accounts Receivable29.35%24.98%19.63%30.90%
Inventory14.01%12.02%7.89%6.30%
Other Current Assets9.95%5.65%2.96%29.80%
Total Current Assets59.74%59.28%69.39%67.00%
Long-term Assets40.26%40.72%30.61%33.00%
Total Assets100.00%100.00%100.00%100.00%
     
Current Liabilities15.89%12.56%8.68%43.50%
Long-term Liabilities0.00%0.00%0.00%14.10%
Total Liabilities15.89%12.56%8.68%57.60%
Net Worth84.11%87.44%91.32%42.40%
     
Percent of Sales    
Sales100.00%100.00%100.00%100.00%
Gross Margin28.86%42.02%52.48%29.40%
Selling, General & Administrative Expenses18.65%21.93%23.02%15.50%
Advertising Expenses3.29%6.67%6.35%0.30%
Profit Before Interest and Taxes13.61%26.80%39.28%2.40%
     
Main Ratios    
Current3.764.727.991.55
Quick2.883.767.081.17
Total Debt to Total Assets15.89%12.56%8.68%57.60%
Pre-tax Return on Net Worth37.56%60.55%66.80%6.50%
Pre-tax Return on Assets31.59%52.94%61.00%15.40%
     
Additional Ratios Year 1 Year 2 Year 3 
Net Profit Margin10.24%20.10%29.30%n.a
Return on Equity28.25%45.41%49.82%n.a
     
Activity Ratios    
Accounts Receivable Turnover5.935.935.93n.a
Collection Days575151n.a
Inventory Turnover10.9110.539.71n.a
Accounts Payable Turnover13.0112.1712.17n.a
Payment Days272626n.a
Total Asset Turnover2.321.981.55n.a
     
Debt Ratios    
Debt to Net Worth0.190.140.10n.a
Current Liab. to Liab.1.001.001.00n.a
     
Liquidity Ratios    
Net Working Capital$132,250$248,263$615,682n.a
Interest Coverage0.000.000.00n.a
     
Additional Ratios    
Assets to Sales0.430.510.64n.a
Current Debt/Total Assets16%13%9%n.a
Acid Test1.031.774.82n.a
Sales/Net Worth2.762.261.70n.a
Dividend Payout 0.000.000.00n.a

 

 

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             
All construction work0%$30,000$30,000$50,000$70,000$70,000$70,000$70,000$70,000$60,000$60,000$60,000$60,000
Other0%$0$0$0$0$0$0$0$0$0$0$0$0
Total Sales $30,000$30,000$50,000$70,000$70,000$70,000$70,000$70,000$60,000$60,000$60,000$60,000
              
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
All construction work $19,200$19,200$32,000$44,800$44,800$44,800$44,800$44,800$38,400$38,400$38,400$38,400
Other $0$0$0$0$0$0$0$0$0$0$0$0
Subtotal Direct Cost of Sales $19,200$19,200$32,000$44,800$44,800$44,800$44,800$44,800$38,400$38,400$38,400$38,400

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
Administration0%$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,625
Other0%$0$0$0$0$0$0$0$0$0$0$0$0
Total People 333333333333
              
Total Payroll $3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,625

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 123456789101112
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 000000000000

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 $30,000$30,000$50,000$70,000$70,000$70,000$70,000$70,000$60,000$60,000$60,000$60,000
Direct Cost of Sales $19,200$19,200$32,000$44,800$44,800$44,800$44,800$44,800$38,400$38,400$38,400$38,400
Other $6,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000
Total Cost of Sales $25,200$23,200$36,000$48,800$48,800$48,800$48,800$48,800$42,400$42,400$42,400$42,400
              
Gross Margin $4,800$6,800$14,000$21,200$21,200$21,200$21,200$21,200$17,600$17,600$17,600$17,600
Gross Margin % 16.00%22.67%28.00%30.29%30.29%30.29%30.29%30.29%29.33%29.33%29.33%29.33%
              
              
Expenses             
Payroll $3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,625
Sales and Marketing and Other Expenses $2,300$2,300$2,400$2,400$2,400$2,400$2,400$2,400$2,400$2,400$2,400$2,400
Depreciation $300$300$300$300$300$300$300$300$300$300$300$300
Gasoline and oil $100$100$150$200$200$200$200$200$170$170$170$170
Telephone $125$125$125$125$125$125$125$125$125$125$125$125
Utilities $500$500$500$500$500$500$500$500$500$500$500$500
Insurance $750$750$750$750$750$750$750$750$750$750$750$750
Rent $500$500$500$500$500$500$500$500$500$500$500$500
Payroll Taxes15%$543$543$543$543$543$543$543$543$543$543$543$544
Other $0$0$0$0$0$0$0$0$0$0$0$0
              
Total Operating Expenses $8,741$8,741$8,891$8,941$8,941$8,941$8,941$8,941$8,911$8,911$8,911$8,914
              
Profit Before Interest and Taxes ($3,941)($1,941)$5,109$12,259$12,259$12,259$12,259$12,259$8,689$8,689$8,689$8,686
EBITDA ($3,641)($1,641)$5,409$12,559$12,559$12,559$12,559$12,559$8,989$8,989$8,989$8,986
  Interest Expense $0$0$0$0$0$0$0$0$0$0$0$0
  Taxes Incurred ($1,182)($485)$1,277$3,065$3,065$3,065$3,065$3,065$2,172$2,172$2,172$2,172
              
Net Profit ($2,759)($1,456)$3,831$9,194$9,194$9,194$9,194$9,194$6,516$6,516$6,516$6,515
Net Profit/Sales -9.20%-4.85%7.66%13.13%13.13%13.13%13.13%13.13%10.86%10.86%10.86%10.86%

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 $7,500$7,500$12,500$17,500$17,500$17,500$17,500$17,500$15,000$15,000$15,000$15,000
Cash from Receivables $0$750$22,500$23,000$38,000$52,500$52,500$52,500$52,500$52,250$45,000$45,000
Subtotal Cash from Operations $7,500$8,250$35,000$40,500$55,500$70,000$70,000$70,000$67,500$67,250$60,000$60,000
              
Additional Cash Received             
Sales Tax, VAT, HST/GST Received0.00%$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 $7,500$8,250$35,000$40,500$55,500$70,000$70,000$70,000$67,500$67,250$60,000$60,000
              
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 $3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,623$3,625
Bill Payments $1,665$49,209$28,493$56,814$70,494$56,883$56,883$56,883$56,404$42,755$49,561$49,561
Subtotal Spent on Operations $5,288$52,832$32,116$60,437$74,117$60,506$60,506$60,506$60,027$46,378$53,184$53,186
              
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 $5,000$5,000$5,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000
Dividends $0$0$0$0$0$0$0$0$0$0$0$0
Subtotal Cash Spent $10,288$57,832$37,116$70,437$84,117$70,506$70,506$70,506$70,027$56,378$63,184$63,186
              
Net Cash Flow ($2,788)($49,582)($2,116)($29,937)($28,617)($506)($506)($506)($2,527)$10,872($3,184)($3,186)
Cash Balance $129,212$79,630$77,514$47,578$18,961$18,455$17,949$17,443$14,916$25,787$22,604$19,418

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
AssetsStarting Balances            
              
Current Assets             
Cash$132,000$129,212$79,630$77,514$47,578$18,961$18,455$17,949$17,443$14,916$25,787$22,604$19,418
Accounts Receivable$0$22,500$44,250$59,250$88,750$103,250$103,250$103,250$103,250$95,750$88,500$88,500$88,500
Inventory$0$21,120$21,120$35,200$49,280$49,280$49,280$49,280$49,280$42,240$42,240$42,240$42,240
Other Current Assets$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000$30,000
Total Current Assets$162,000$202,832$175,000$201,964$215,608$201,491$200,985$200,479$199,973$182,906$186,527$183,344$180,158
              
Long-term Assets             
Long-term Assets$20,000$25,000$30,000$35,000$45,000$55,000$65,000$75,000$85,000$95,000$105,000$115,000$125,000
Accumulated Depreciation$0$300$600$900$1,200$1,500$1,800$2,100$2,400$2,700$3,000$3,300$3,600
Total Long-term Assets$20,000$24,700$29,400$34,100$43,800$53,500$63,200$72,900$82,600$92,300$102,000$111,700$121,400
Total Assets$182,000$227,532$204,400$236,064$259,408$254,991$264,185$273,379$282,573$275,206$288,527$295,044$301,558
              
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$48,291$26,615$54,448$68,598$54,987$54,987$54,987$54,987$41,103$47,909$47,909$47,908
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$48,291$26,615$54,448$68,598$54,987$54,987$54,987$54,987$41,103$47,909$47,909$47,908
              
Long-term Liabilities$0$0$0$0$0$0$0$0$0$0$0$0$0
Total Liabilities$0$48,291$26,615$54,448$68,598$54,987$54,987$54,987$54,987$41,103$47,909$47,909$47,908
              
Paid-in Capital$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000$215,000
Retained Earnings($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)($33,000)
Earnings$0($2,759)($4,215)($384)$8,810$18,004$27,198$36,392$45,586$52,102$58,619$65,135$71,650
Total Capital$182,000$179,241$177,785$181,616$190,810$200,004$209,198$218,392$227,586$234,102$240,619$247,135$253,650
Total Liabilities and Capital$182,000$227,532$204,400$236,064$259,408$254,991$264,185$273,379$282,573$275,206$288,527$295,044$301,558
              
Net Worth$182,000$179,241$177,785$181,616$190,810$200,004$209,198$218,392$227,586$234,102$240,619$247,135$253,650

 

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