Professional Documents
Culture Documents
Businessplan Sample
Businessplan Sample
Businessplan Sample
m
pl
e
Pr
o
This plan may be edited using Business Plan Pro and is one
of 400+ sample plans available from within the software.
Bu
sin
es
sP
la
n
This is a sample business plan and the 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 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
emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For
product information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Confidentiality Agreement
Sa
m
pl
e
___________________
Date
Pr
o
___________________
Name (typed or printed)
Bu
sin
es
sP
la
n
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
2
3
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3
Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
3
5
3.0
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1
Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2
Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4
Fulfillment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6
Future Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
5
6
6
7
7
7
4.0
7
8
9
9
9
9
10
10
Bu
sin
es
sP
la
n
Pr
o
Sa
m
pl
e
1.0
5.0
11
11
11
12
6.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
13
14
14
7.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2
Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.3
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.4
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.5
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.6
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.7
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
15
15
16
17
18
20
20
Sa
m
pl
e
Pr
o
Acme Consulting will be created as a California C corporation based in Santa Clara County,
owned by its principal investors and principal operators. The initial office will be established in
A-quality office space in the Santa Clara County "Silicon Valley" area of California, the heart
of the U.S. high tech industry.
Bu
sin
es
sP
la
n
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 1
Sa
m
pl
e
Highlights
$1,200,000
$1,000,000
$800,000
Sales
$600,000
Gross Margin
Net Profit
$400,000
$0
1996
Pr
o
$200,000
1997
1998
Bu
sin
es
sP
la
n
1.1 Objectives
1.
2.
3.
1.2 Mission
Acme Consulting offers high-tech manufacturers a reliable, high-quality alternative to inhouse resources for business development, market development, and channel development
on an international scale. A true alternative to in-house resources offers a very high level of
practical experience, know-how, contacts, and confidentiality. Clients must know that working
with Acme is a more professional, less risky way to develop new areas even than working
completely in-house with their own people. Acme must also be able to maintain financial
balance, charging a high value for its services, and delivering an even higher value to its
clients. Initial focus will be development in the European and Latin American markets, or for
European clients in the United States market.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 2
1.
2.
3.
Sa
m
pl
e
Pr
o
Providing United States clients with development for European and Latin American
markets.
Providing European clients with development for the United States and Latin American
markets.
Bu
sin
es
sP
la
n
As it grows it will take on people and consulting work in related markets, such as the rest of
Latin America, the Far East, and similar markets. It will also look for additional leverage by
taking brokerage positions and representation positions to create percentage holdings in
product results.
Acme Consulting will be created as a California C corporation based in Santa Clara County,
owned by its principal investors and principal operators. As of this writing, it has not been
chartered yet and is still considering alternatives of legal formation.
Total start-up expense (including legal costs, logo design, stationery and related expenses)
comes to $18,350. Start-up assets required include $32,000 in short-term assets (office
furniture, etc.) and $25,000 in initial cash to handle the first few months of consulting
operations as sales and accounts receivable play through the cash flow. The details are
included in Table 2-2.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 3
Start-up
Requirements
$1,000
$3,000
$5,000
$5,000
$350
$3,000
$1,000
$18,350
$25,000
$7,000
$32,000
Long-term Assets
Total Assets
Total Requirements
$0
$32,000
$50,350
Funding
$20,000
$20,000
$10,000
$50,000
Bu
sin
es
sP
la
n
Investment
Investor 1
Investor 2
Other
Total Investment
Pr
o
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Expensed equipment
Other
Total Start-up Expenses
Sa
m
pl
e
Table: Start-up
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities
$350
$0
$0
$350
Long-term Liabilities
Total Liabilities
$0
$350
Loss at Start-up
Total Capital
Total Capital and Liabilities
($18,350)
$31,650
$32,000
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 4
Start-up
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$0
Expenses
Assets
Investment
Loans
Bu
sin
es
sP
la
n
Pr
o
$5,000
Sa
m
pl
e
The initial office will be established in A-quality office space in the Santa Clara County "Silicon
Valley" area of California, the heart of the U.S. high tech industry.
3.0 Services
Acme offers the expertise a high-technology company needs to develop new product
distribution and new market segments in new markets. This can be taken as high-level
retainer consulting, market research reports, or project-based consulting.
2.
3.
Market research: Group studies available to selected clients at $5,000 per unit. A
group study is a packaged and published complete study of a specific market,
channel, or topic. Examples might be studies of developing consumer channels in
Japan or Mexico, or implications of changing margins in software.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 5
Sa
m
pl
e
3.
The third general kind of competitor is the international market research company:
International Data Corporation (IDC), Dataquest, Stanford Research Institute, etc.
These companies are formidable competitors for published market research and
market forums, but cannot provide the kind of high-level consulting that Acme will
provide.
Bu
sin
es
sP
la
n
Pr
o
2.
4.
The fourth kind of competition is the market-specific smaller house. For example:
Nomura Research in Japan, Select S.A. de C.V. in Mexico (now affiliated with IDC).
5.
Sales representation, brokering, and deal catalysts are an ad-hoc business form that
will be defined in detail by the specific nature of each individual case.
The business will begin with a general corporate brochure establishing the positioning. This
brochure will be developed as part of the start-up expenses.
Literature and mailings for the initial market forums will be very important.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 6
Sa
m
pl
e
3.4 Fulfillment
1.
The key fulfillment and delivery will be provided by the principals of the business. The
real core value is professional expertise, provided by a combination of experience,
hard work, and education (in that order).
2.
We will turn to qualified professionals for freelance back-up in market research and
presentation and report development, which are areas that we can afford to subcontract without risking the core values provided to the clients.
3.5 Technology
Acme Consulting will maintain the latest Windows and Macintosh capabilities including:
Complete e-mail facilities on the Internet, Compuserve, America-Online, and
Applelink, for working with clients directly through e-mail delivery of drafts and
information.
2.
3.
Complete desktop publishing facilities for delivery of regular retainer reports, project
output reports, marketing materials, and market research reports.
Bu
sin
es
sP
la
n
Pr
o
1.
In the future, Acme will broaden the coverage by expanding into coverage of additional
markets (e.g., all of Latin America, Far East, Western Europe) and additional product areas
(e.g., telecommunications and technology integration).
We are also studying the possibility of newsletter or electronic newsletter services, or perhaps
special on-topic reports.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 7
Sa
m
pl
e
Bu
sin
es
sP
la
n
Pr
o
Growth
10%
15%
35%
2%
6.27%
1996
5,000
1,000
250
10,000
16,250
1997
5,500
1,150
338
10,200
17,188
1998
6,050
1,323
456
10,404
18,233
1999
6,655
1,521
616
10,612
19,404
2000
7,321
1,749
832
10,824
20,726
CAGR
10.00%
15.00%
35.07%
2.00%
6.27%
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 8
Sa
m
pl
e
The consulting "industry" is pulverized and disorganized, with thousands of smaller consulting
organizations and individual consultants for every one of the few dozen well-known
companies.
Pr
o
Bu
sin
es
sP
la
n
At the highest level are the few well-established major names in management consulting.
Most of these are organized as partnerships established in major markets around the world,
linked together by interconnecting directors and sharing the name and corporate wisdom.
Some evolved from accounting companies (e.g. Arthur Andersen, Touche Ross) and some
from management consulting (McKinsey, Bain). These companies charge very high rates for
consulting, and maintain relatively high overhead structures and fulfillment structures based
on partners selling and junior associates fulfilling.
At the intermediate level are some function-specific or market-specific consultants, such as
the market research firms (IDC, Dataquest) or channel development firms (ChannelCorp,
Channel Strategies, ChannelMark).
Some kinds of consulting are little more than contract expertise provided by somebody who,
while temporarily out of work, offers consulting services.
Consulting is sold and purchased mainly on a word-of-mouth basis, with relationships and
previous experience being, by far, the most important factor.
The major name-brand houses have locations in major cities and major markets, and
executive-level managers or partners develop new business through industry associations,
business associations, chambers of commerce and industry, etc., and in some cases social
associations such as country clubs.
The medium-level houses are generally area specific or function specific, and are not easily
able to leverage their business through distribution.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 9
Sa
m
pl
e
Pr
o
Weaknesses: General business knowledge doesn't substitute for the specific market, channel,
and distribution expertise of Acme, focusing on high-technology markets and products only.
Also, fees are extremely expensive, and work is generally done by very junior-level
consultants, even though sold by high-level partners.
2. The international market research company:
Bu
sin
es
sP
la
n
Weaknesses: Market numbers are not marketing, not channel development nor market
development. Although these companies compete for some of the business Acme is after,
they cannot really offer the same level of business understanding at a high level.
3. Market specific or function specific experts:
Strengths: Expertise in market or functional areas. Acme should not try to compete with
Nomura or Select in their markets with market research, or with ChannelCorp in channel
management.
Weaknesses: The inability to spread beyond a specific focus, or to rise above a specific focus,
to provide actual management expertise, experience, and wisdom beyond the specifics.
4. Companies do in-house research and development:
Strengths: No incremental cost except travel; also, the general work is done by the people
who are entirely responsible, the planning is done by those who will implement it.
Weaknesses: Most managers are terribly overburdened already, unable to find incremental
resources in time and people to apply to incremental opportunities. Also, there is a lot of
additional risk in market and channel development done in-house from the ground up.
Finally, retainer-based antenna consultants can greatly enhance a company's reach and
extend its position into conversations that might otherwise never have taken place.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 10
Sa
m
pl
e
Acme Consulting will be priced at the upper edge of what the market will bear, competing
with the name-brand consultants. The pricing fits with the general positioning of Acme as
providing high-level expertise.
Pr
o
Consulting should be based on $5,000 per day for project consulting, $2,000 per day for
market research, and $10,000 per month and up for retainer consulting. Market research
reports should be priced at $5,000 per report, which will, of course, require that reports be
very well planned, focused on very important topics, and very well presented.
Bu
sin
es
sP
la
n
The sales forecast monthly summary is included in the appendix. The annual sales projections
are included here in Table 5.2.
Sales by Year
$1,200,000
$1,000,000
Retainer Consulting
$800,000
Project Consulting
$600,000
Market Research
Strategic Reports
$400,000
Other
$200,000
$0
1996
1997
1998
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 11
Sales Forecast
Sales
Retainer Consulting
Project Consulting
Market Research
Strategic Reports
Other
Total Sales
1996
$200,000
$270,000
$122,000
$0
$0
$592,000
1996
$30,000
$45,000
$84,000
$0
$0
$159,000
Sa
m
pl
e
1998
$425,000
$350,000
$200,000
$125,000
$0
$1,100,000
1997
$38,000
$56,000
$105,000
$20,000
$0
$219,000
1998
$48,000
$70,000
$131,000
$40,000
$0
$289,000
$90,000
$80,000
$70,000
$60,000
Pr
o
Sales Monthly
Retainer Consulting
Project Consulting
Bu
sin
es
sP
la
n
$50,000
$40,000
$30,000
Market Research
Strategic Reports
Other
$20,000
$10,000
$0
Jul
5.3 Milestones
Our detailed milestones are shown in the following table and chart. The related budgets are
included with the expenses shown in the projected Profit and Loss statement, which is in the
financial analysis that comes in Chapter 7 of this plan.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 12
Sa
m
pl
e
Milestones
Business plan
Logo design
Retainer contracts
Stationery
Brochures
Financial backing presentations
Initial mailing
Office location
Other
Pr
o
Office equipment
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Table: Milestones
Start Date
10/1/95
1/1/96
2/1/96
3/1/96
3/1/96
4/1/96
End Date
11/19/95
2/1/96
12/31/96
4/15/96
4/15/96
9/15/96
Budget
$5,000
$2,000
$10,000
$500
$2,500
$10,000
Manager
HM
TAJ
HM
JD
TAJ
HM
Department
Devpt
Marketing
Sales
G&A
Marketing
Devpt
6/1/96
1/15/96
1/15/96
1/1/96
7/1/96
2/9/96
2/19/96
12/31/96
$5,000
$5,000
$12,500
$10,000
$62,500
HM
JD
JD
ABC
Sales
G&A
G&A
Department
Bu
sin
es
sP
la
n
Milestones
Milestone
Business plan
Logo design
Retainer contracts
Stationery
Brochures
Financial backing
presentations
Initial mailing
Office location
Office equipment
Other
Totals
The initial management team depends on the founders themselves, with little back-up. As we
grow, we will take on additional consulting help, plus graphic/editorial, sales, and marketing.
Acme should be managed by working partners, in a structure taken mainly from Smith
Partners. In the beginning we assume 3-5 partners:
Ralph Sampson.
At least one, probably two, partners from Smith and Jones.
One strong European partner, based in Paris.
The organization has to be very flat in the beginning, with each of the founders
responsible for his or her own work and management.
One other strong partner.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 13
Sa
m
pl
e
Table: Personnel
Personnel Plan
Bu
sin
es
sP
la
n
Partners
Consultants
Editorial/graphic
VP Marketing
Sales people
Office Manager
Secretarial
Other
Other
Total People
Total Payroll
Pr
o
The detailed monthly personnel plan for the first year is included in the appendix. The annual
personnel estimates are included here.
1996
$144,000
$0
$18,000
$20,000
$0
$7,500
$5,250
$0
$0
7
$194,750
1997
$175,000
$50,000
$22,000
$50,000
$30,000
$30,000
$20,000
$0
$0
14
$377,000
1998
$200,000
$63,000
$26,000
$55,000
$33,000
$33,000
$22,000
$0
$0
20
$432,000
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 14
Sa
m
pl
e
Table 7.1 summarizes key financial assumptions, including 45-day average collection days,
sales entirely on invoice basis, expenses mainly on net 30 basis, 35 days on average for
payment of invoices, and present-day interest rates.
Table: General Assumptions
General Assumptions
1996
1
8.00%
10.00%
25.00%
100.00%
0.00%
1997
2
8.00%
10.00%
25.00%
100.00%
0.00%
1998
3
8.00%
10.00%
25.00%
100.00%
0.00%
$194,750
$592,000
$498,050
$377,000
$875,000
$731,734
$432,000
$1,100,000
$899,115
Pr
o
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other
Calculated Totals
Payroll Expense
Sales on Credit
New Accounts Payable
Bu
sin
es
sP
la
n
The following benchmark chart indicates our key financial indicators for the first three years.
We foresee major growth in sales and operating expenses, and a bump in our collection days
as we spread the business during expansion.
Benchmarks
2.0
1.5
1.0
0.5
0.0
1996
1997
1998
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 15
Sa
m
pl
e
Break-even Analysis
$10,000
$5,000
$0
($5,000)
$0
$4,000
Pr
o
($10,000)
$8,000
$12,000
$16,000
$20,000
Bu
sin
es
sP
la
n
Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even
12,500
$12,500
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$1.00
$0.20
$10,000
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 16
Sa
m
pl
e
Bu
sin
es
sP
la
n
1996
$592,000
$159,000
$0
$0
-----------$159,000
$433,000
73.14%
1997
$875,000
$219,000
$0
$0
-----------$219,000
$656,000
74.97%
1998
$1,100,000
$289,000
$0
$0
-----------$289,000
$811,000
73.73%
$194,750
$162,000
$0
$6,000
$12,000
$3,600
$18,000
$0
$27,265
$0
-----------$423,615
$9,385
$6,800
$646
$1,939
0.33%
$377,000
$137,000
$0
$7,000
$12,000
$2,000
$0
$0
$52,780
$0
-----------$587,780
$68,220
$11,400
$14,205
$42,615
4.87%
$432,000
$195,000
$0
$7,000
$12,000
$2,000
$0
$0
$60,480
$0
-----------$708,480
$102,520
$15,400
$21,780
$65,340
5.94%
Pr
o
Sales
Direct Cost of Sales
Production Payroll
Other
TRUE
TRUE
TRUE
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 17
Sa
m
pl
e
Cash
$60,000
$50,000
$40,000
$30,000
$20,000
$0
($10,000)
($20,000)
($30,000)
Pr
o
$10,000
Jul
Bu
sin
es
sP
la
n
Cash Balance
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 18
1996
1997
1998
$0
$495,000
$495,000
$0
$828,630
$828,630
$0
$1,063,133
$1,063,133
$0
$0
$30,000
$0
$50,000
$0
$0
$0
$575,000
$0
$0
$100,000
$0
$0
$0
$0
$0
$928,630
$0
$0
$0
$0
$0
$0
$0
$0
$1,063,133
1996
1997
1998
Pr
o
Sa
m
pl
e
$92,012
$468,773
$560,784
$100,651
$728,952
$829,603
$135,545
$887,880
$1,023,425
$0
$0
$0
$0
$0
$0
$0
$0
$560,784
$0
$0
$0
$0
$0
$0
$0
$0
$829,603
$0
$0
$0
$0
$0
$0
$0
$0
$1,023,425
$14,216
$39,216
$99,027
$138,243
$39,709
$177,951
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Bu
sin
es
sP
la
n
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 19
Sa
m
pl
e
1996
$39,216
$97,000
$7,000
$143,216
1997
$138,243
$143,370
$7,000
$288,612
1998
$177,951
$180,236
$7,000
$365,188
$0
$0
$0
$143,216
$0
$0
$0
$288,612
$0
$0
$0
$365,188
1996
$29,627
$30,000
$0
$59,627
1997
$32,409
$130,000
$0
$162,409
1998
$43,644
$130,000
$0
$173,644
Long-term Liabilities
Total Liabilities
$50,000
$109,627
$50,000
$212,409
$50,000
$223,644
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$50,000
($18,350)
$1,939
$33,589
$143,216
$33,589
$50,000
($16,411)
$42,615
$76,204
$288,612
$76,204
$50,000
$26,204
$65,340
$141,544
$365,188
$141,544
Bu
sin
es
sP
la
n
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Pr
o
The following table shows the projected business ratios. We expect to maintain healthy ratios
for profitability, risk, and return. The industry comparisons are for SIC 8742, management
consulting services.
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 20
Sa
m
pl
e
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Bu
sin
es
sP
la
n
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Business Vitality Profile
Sales per Employee
Survival Rate
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
1997
47.80%
1998
25.71%
Industry Profile
8.60%
67.73%
0.00%
4.89%
100.00%
0.00%
100.00%
49.68%
0.00%
2.43%
100.00%
0.00%
100.00%
49.35%
0.00%
1.92%
100.00%
0.00%
100.00%
24.40%
3.80%
46.70%
74.90%
25.10%
100.00%
0.00%
34.91%
34.91%
65.09%
0.00%
17.32%
17.32%
82.68%
0.00%
13.69%
13.69%
86.31%
42.80%
17.20%
60.00%
40.00%
100.00%
73.14%
72.81%
6.08%
1.59%
100.00%
74.97%
70.10%
4.57%
7.80%
100.00%
73.73%
67.79%
4.00%
9.32%
100.00%
0.00%
83.50%
1.20%
2.60%
2.40
2.40
76.55%
7.70%
1.80%
1.78
1.78
73.60%
74.56%
19.69%
2.10
2.10
61.24%
61.55%
23.86%
1.59
1.26
60.00%
4.40%
10.90%
1996
$84,571
1997
$62,500
1998
$55,000
Industry
$143,330
58.72%
1996
0.33%
5.77%
1997
4.87%
55.92%
1998
5.94%
46.16%
6.10
43
0.00
16.81
17
4.13
6.10
50
0.00
22.58
186
3.03
6.10
54
0.00
20.60
185
3.01
n.a
n.a
n.a
n.a
3.26
0.54
2.79
0.76
1.58
0.78
n.a
n.a
$83,589
1.38
$126,204
5.98
$191,544
6.66
n.a
n.a
0.24
42%
0.78
17.62
0.00
0.33
56%
0.89
11.48
0.00
0.33
48%
1.07
7.77
0.00
n.a
n.a
n.a
n.a
n.a
Pr
o
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
1996
0.00%
n.a
n.a
n.a
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 21
e
pl
Apr
$10,000
$20,000
$4,000
$0
$0
$34,000
May
$20,000
$30,000
$8,000
$0
$0
$58,000
Jan
$2,500
$0
$0
$0
$0
$2,500
Feb
$2,500
$0
$0
$0
$0
$2,500
Mar
$2,500
$1,500
$0
$0
$0
$4,000
Apr
$2,500
$3,500
$2,000
$0
$0
$8,000
May
$2,500
$5,000
$6,000
$0
$0
$13,500
Jun
$20,000
$40,000
$15,000
$0
$0
$75,000
Jul
$20,000
$20,000
$10,000
$0
$0
$50,000
Aug
$20,000
$10,000
$5,000
$0
$0
$35,000
Sep
$20,000
$30,000
$20,000
$0
$0
$70,000
Oct
$20,000
$45,000
$20,000
$0
$0
$85,000
Nov
$20,000
$50,000
$20,000
$0
$0
$90,000
Dec
$20,000
$15,000
$20,000
$0
$0
$55,000
Jul
$2,500
$3,500
$6,000
$0
$0
$12,000
Aug
$2,500
$1,500
$4,000
$0
$0
$8,000
Sep
$2,500
$5,000
$14,000
$0
$0
$21,500
Oct
$2,500
$7,500
$14,000
$0
$0
$24,000
Nov
$2,500
$8,500
$14,000
$0
$0
$25,000
Dec
$2,500
$2,500
$14,000
$0
$0
$19,000
Sa
Feb
$10,000
$0
$0
$0
$0
$10,000
Jun
$2,500
$6,500
$10,000
$0
$0
$19,000
us
in
es
sP
la
Pr
Jan
$10,000
$0
$0
$0
$0
$10,000
Sales Forecast
Sales
Retainer Consulting
Project Consulting
Market Research
Strategic Reports
Other
Total Sales
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 1
e
pl
Feb
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Mar
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Apr
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
May
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Jun
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Jul
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Sa
$1
$1
$1
$1
$1
$1
$1
$1
Aug
$12,000
$0
$0
$0
$0
$0
$0
$0
$0
3
$12,000
Sep
$12,000
$0
$0
$5,000
$0
$0
$0
$0
$0
5
$17,000
Oct
$12,000
$0
$6,000
$5,000
$0
$2,500
$1,750
$0
$0
7
$27,250
Nov
$12,000
$0
$6,000
$5,000
$0
$2,500
$1,750
$0
$0
7
$27,250
Dec
$12,000
$0
$6,000
$5,000
$0
$2,500
$1,750
$0
$0
7
$27,250
us
in
es
sP
la
Pr
Partners
Consultants
Editorial/graphic
VP Marketing
Sales people
Office Manager
Secretarial
Other
Other
Total People
Total Payroll
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 2
e
pl
Mar
3
8.00%
10.00%
25.00%
100.00%
0.00%
Apr
4
8.00%
10.00%
25.00%
100.00%
0.00%
May
5
8.00%
10.00%
25.00%
100.00%
0.00%
Jun
6
8.00%
10.00%
25.00%
100.00%
0.00%
Jul
7
8.00%
10.00%
25.00%
100.00%
0.00%
Aug
8
8.00%
10.00%
25.00%
100.00%
0.00%
Sep
9
8.00%
10.00%
25.00%
100.00%
0.00%
Oct
10
8.00%
10.00%
25.00%
100.00%
0.00%
Nov
11
8.00%
10.00%
25.00%
100.00%
0.00%
Dec
12
8.00%
10.00%
25.00%
100.00%
0.00%
$12,000
$10,000
$24,081
$12,000
$10,000
$24,081
$12,000
$20,000
$26,874
$12,000
$34,000
$31,749
$12,000
$58,000
$39,343
$12,000
$75,000
$45,662
$12,000
$50,000
$37,037
$12,000
$35,000
$31,974
$17,000
$70,000
$50,762
$27,250
$85,000
$64,475
$27,250
$90,000
$65,975
$27,250
$55,000
$56,037
Sa
Jan
1
8.00%
10.00%
25.00%
100.00%
0.00%
us
in
es
sP
la
Pr
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other
Calculated Totals
Payroll Expense
Sales on Credit
New Accounts Payable
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 3
e
pl
14%
Apr
$34,000
$8,000
$0
$0
-----------$8,000
$26,000
76.47%
May
$58,000
$13,500
$0
$0
-----------$13,500
$44,500
76.72%
Jun
$75,000
$19,000
$0
$0
-----------$19,000
$56,000
74.67%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
($22,980)
$417
($5,849)
($17,548)
-175.48%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
($22,980)
$417
($5,849)
($17,548)
-175.48%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
($14,480)
$550
($3,758)
($11,273)
-56.36%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
($4,480)
$550
($1,258)
($3,773)
-11.10%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
$14,020
$550
$3,368
$10,103
17.42%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
$25,520
$617
$6,226
$18,678
24.90%
Jul
$50,000
$12,000
$0
$0
-----------$12,000
$38,000
76.00%
Aug
$35,000
$8,000
$0
$0
-----------$8,000
$27,000
77.14%
Sep
$70,000
$21,500
$0
$0
-----------$21,500
$48,500
69.29%
Oct
$85,000
$24,000
$0
$0
-----------$24,000
$61,000
71.76%
Nov
$90,000
$25,000
$0
$0
-----------$25,000
$65,000
72.22%
Dec
$55,000
$19,000
$0
$0
-----------$19,000
$36,000
65.45%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
$7,520
$617
$1,726
$5,178
10.36%
$12,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$1,680
$0
-----------$30,480
($3,480)
$617
($1,024)
($3,073)
-8.78%
$17,000
$13,500
$0
$500
$1,000
$300
$1,500
$0
$2,380
$0
-----------$36,180
$12,320
$617
$2,926
$8,778
12.54%
$27,250
$13,500
$0
$500
$1,000
$300
$1,500
$0
$3,815
$0
-----------$47,865
$13,135
$617
$3,130
$9,389
11.05%
$27,250
$13,500
$0
$500
$1,000
$300
$1,500
$0
$3,815
$0
-----------$47,865
$17,135
$617
$4,130
$12,389
13.77%
$27,250
$13,500
$0
$500
$1,000
$300
$1,500
$0
$3,815
$0
-----------$47,865
($11,865)
$617
($3,120)
($9,361)
-17.02%
Sa
Mar
$20,000
$4,000
$0
$0
-----------$4,000
$16,000
80.00%
us
in
es
sP
la
Feb
$10,000
$2,500
$0
$0
-----------$2,500
$7,500
75.00%
Pr
Jan
$10,000
$2,500
$0
$0
-----------$2,500
$7,500
75.00%
Sales
Direct Cost of Sales
Production Payroll
Other
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 4
e
pl
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0
$0
$0
$0
$5,333
$5,333
$0
$10,000
$10,000
$0
$15,333
$15,333
$0
$27,467
$27,467
$0
$46,800
$46,800
$0
$67,067
$67,067
$0
$61,667
$61,667
$0
$42,000
$42,000
$0
$53,667
$53,667
$0
$78,000
$78,000
$0
$87,667
$87,667
$0
$0
$0
$0
$50,000
$0
$0
$0
$50,000
$0
$0
$0
$0
$0
$0
$0
$0
$5,333
$0
$0
$20,000
$0
$0
$0
$0
$0
$30,000
$0
$0
$0
$0
$0
$0
$0
$0
$15,333
$0
$0
$0
$0
$0
$0
$0
$0
$27,467
$0
$0
$10,000
$0
$0
$0
$0
$0
$56,800
$0
$0
$0
$0
$0
$0
$0
$0
$67,067
$0
$0
$0
$0
$0
$0
$0
$0
$61,667
$0
$0
$0
$0
$0
$0
$0
$0
$42,000
$0
$0
$0
$0
$0
$0
$0
$0
$53,667
$0
$0
$0
$0
$0
$0
$0
$0
$78,000
$0
$0
$0
$0
$0
$0
$0
$0
$87,667
0.00%
Jan
Feb
Mar
$3,467
$13,980
$17,447
$3,467
$22,737
$26,204
$4,398
$24,088
$28,486
$0
$0
$0
$0
$0
$0
$0
$0
$17,447
$0
$0
$0
$0
$0
$0
$0
$0
$26,204
$0
$0
$0
$0
$0
$0
$0
$0
$28,486
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$6,023
$26,502
$32,525
$8,554
$31,099
$39,654
$10,661
$38,331
$48,991
$7,786
$44,819
$52,605
$6,098
$38,187
$44,285
$10,461
$38,349
$48,810
$11,137
$60,702
$71,838
$11,637
$64,204
$75,841
$8,324
$65,775
$74,099
$0
$0
$0
$0
$0
$0
$0
$0
$32,525
$0
$0
$0
$0
$0
$0
$0
$0
$39,654
$0
$0
$0
$0
$0
$0
$0
$0
$48,991
$0
$0
$0
$0
$0
$0
$0
$0
$52,605
$0
$0
$0
$0
$0
$0
$0
$0
$44,285
$0
$0
$0
$0
$0
$0
$0
$0
$48,810
$0
$0
$0
$0
$0
$0
$0
$0
$71,838
$0
$0
$0
$0
$0
$0
$0
$0
$75,841
$0
$0
$0
$0
$0
$0
$0
$0
$74,099
($17,192)
$21,005
($12,187)
$8,818
$7,809
$16,627
$14,462
$31,089
$17,382
$48,470
($6,810)
$41,660
($18,172)
$23,489
$2,159
$25,648
$13,568
$39,216
la
sP
$32,553
$57,553
May
($20,870)
$36,683
$1,514
$38,197
us
in
es
Apr
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Sa
Jan
Pr
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 5
e
pl
Feb
$36,683
$14,667
$7,000
$58,350
Mar
$38,197
$24,667
$7,000
$69,864
Apr
$21,005
$43,333
$7,000
$71,339
May
$8,818
$73,867
$7,000
$89,685
$0
$0
$0
$32,000
$0
$0
$0
$74,553
$0
$0
$0
$58,350
$0
$0
$0
$69,864
$0
$0
$0
$71,339
$0
$0
$0
$89,685
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$350
$0
$0
$350
Jan
$10,451
$0
$0
$10,451
Feb
$11,795
$0
$0
$11,795
Mar
$14,581
$20,000
$0
$34,581
Apr
$19,829
$20,000
$0
$39,829
Long-term Liabilities
Total Liabilities
$0
$350
$50,000
$60,451
$50,000
$61,795
$50,000
$84,581
$50,000
($18,350)
$0
$31,650
$32,000
$31,650
$50,000
($18,350)
($17,548)
$14,103
$74,553
$14,103
$50,000
($18,350)
($35,095)
($3,445)
$58,350
($3,445)
$50,000
($18,350)
($46,368)
($14,718)
$69,864
($14,718)
Jul
$31,089
$85,000
$7,000
$123,089
Aug
$48,470
$58,333
$7,000
$113,804
Sep
$41,660
$86,333
$7,000
$134,994
Oct
$23,489
$117,667
$7,000
$148,155
Nov
$25,648
$129,667
$7,000
$162,314
Dec
$39,216
$97,000
$7,000
$143,216
$0
$0
$0
$125,694
$0
$0
$0
$123,089
$0
$0
$0
$113,804
$0
$0
$0
$134,994
$0
$0
$0
$148,155
$0
$0
$0
$162,314
$0
$0
$0
$143,216
Jun
$35,404
$30,000
$0
$65,404
Jul
$27,621
$30,000
$0
$57,621
Aug
$21,409
$30,000
$0
$51,409
Sep
$33,821
$30,000
$0
$63,821
Oct
$37,594
$30,000
$0
$67,594
Nov
$39,364
$30,000
$0
$69,364
Dec
$29,627
$30,000
$0
$59,627
$50,000
$89,829
$50,000
$98,072
$50,000
$115,404
$50,000
$107,621
$50,000
$101,409
$50,000
$113,821
$50,000
$117,594
$50,000
$119,364
$50,000
$109,627
$50,000
($18,350)
($50,140)
($18,490)
$71,339
($18,490)
$50,000
($18,350)
($40,038)
($8,388)
$89,685
($8,388)
$50,000
($18,350)
($21,360)
$10,290
$125,694
$10,290
$50,000
($18,350)
($16,183)
$15,468
$123,089
$15,468
$50,000
($18,350)
($19,255)
$12,395
$113,804
$12,395
$50,000
($18,350)
($10,478)
$21,173
$134,994
$21,173
$50,000
($18,350)
($1,089)
$30,561
$148,155
$30,561
$50,000
($18,350)
$11,300
$42,950
$162,314
$42,950
$50,000
($18,350)
$1,939
$33,589
$143,216
$33,589
Pr
May
$28,072
$20,000
$0
$48,072
us
in
es
sP
la
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Jun
$16,627
$102,067
$7,000
$125,694
Starting Balances
$25,000
$0
$7,000
$32,000
Sa
Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Copyright Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 6