Business Solutions Consulting

January 2001
This sample business plan has been made available to users of Business Plan Pro", business planning
software published by Palo Alto Software. Names, loc ations and numbers may have been c hanged,
and substantial portions of text may have been omitted from the original plan 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, ac ademic 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.
Copyright Palo Alto Software, Inc., 1995-2007
Confidentiality Agreement
The undersigned reader ac knowledges that the information provided by
_________________________ in this business plan is confidential; therefore, reader agrees not to
disc lose it without the express written permission of _________________________.
It is ac knowledged by reader that information to be furnished in this business plan is in all respec ts
confidential in nature, other than information which is in the public domain through other means and
that any disc losure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this document is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Mission........................................................................................................................................2
1.2 Keys to Success ........................................................................................................................3
2.0 Company Summary.............................................................................................................................3
2.1 Company Ownership .................................................................................................................3
3.0 Start-up Summary................................................................................................................................3
4.0 Service Description.............................................................................................................................5
5.0 Market Analysis Summary..................................................................................................................6
5.1 Market Segmentation ................................................................................................................7
5.2 Target Market Segment Strategy.............................................................................................7
5.3 Market Needs .............................................................................................................................7
5.4 Service Business Analysis........................................................................................................7
5.5 Competition and Buying Patterns ............................................................................................8
6.0 Strategy and Implementation Summary ............................................................................................8
6.1 Competitive Edge ......................................................................................................................8
6.2 Sales Strategy............................................................................................................................9
7.0 Management Team ...........................................................................................................................11
7.1 Personnel Plan.........................................................................................................................11
8.0 Financial Plan ....................................................................................................................................12
8.1 Break-even Analysis................................................................................................................12
8.2 Projected Profit and Loss .......................................................................................................13
8.3 Projected Cash Flow ...............................................................................................................16
8.4 Projected Balance Sheet ........................................................................................................18
8.5 Business Ratios .......................................................................................................................19
Page 1
Business Solutions Consulting

1.0 Executive Summary
Introduction
Business Solutions Consulting (BSC) is a start-up consulting firm foc used on serving the
comprehensive needs of businesses in the full range of the business cycle. With a core staff of
experienced professionals and a team approach to most consulting projec ts, BSC will be able to
offer a more balanced quality service than many of its competitors.
The Company
Business Solutions Consulting is a team of six business consultants. Each c onsultant specializes
in a particular disc ipline, including finance, sales and marketing, tec hnology, management,
operations, and human resources.
BSC offers a list of services for business owners to choose from, depending on their particular
business needs. This includes; business and marketing plan preparation, financial search and
proc urement, IT consulting services, management development, human resources advising, and
etc.
BSC will have a foc us on start-up businesses, preferably in the earlier stages of operation. Small
and mid-sized businesses make up a sizable majority of U.S. and international markets. BSC
prefers to establish a relationship with a younger operation and continue to nurture that
relationship over the long term.
BSC will be established as an Oregon based LLC with two principal partners, eac h of whom owns
a 50% share in the company. Mr. Andrew B. Christiansen has extensive experience in business
planning and finance, including CFO positions with ABC Conglomerate and DEF International. Mr.
David E. Fields brings in experience in the area of marketing, advertising, and communications.
The Market
The business consulting industry is very fragmented. Several large multinational companies
dominate the industry while many smaller (and often more specialized) firms oc cupy their market
niches. Major management consulting companies, such as McKinsey, Bain, and Boston Consulting
Group, have established their dominant position by providing services to the leading companies in
various industries. Consulting prac tices of the major ac counting firms (a.k.a. the Big Five) have
established worldwide presence and sell their pac kaged services to companies of different sizes
and industries. At the same time, numerous firms and individual business consultants prosper in
the market niches that bigger players consider unprofitable to enter.
Start-up companies are the target market of this firm. BSC intends to stay on the pulse of new
business ac tivity within the loc al area. Additionally, business contac ts, referrals from among the
group, and Internet marketing efforts will be made in pursuit of new clients. Start-up companies
are attrac tive bec ause owners often lac k the broad range of knowledge and expertise required
to launch a new business. There is a serious need in the marketplac e, and certainly a significant
demand for, these types of start-up consulting services.
Competitors in the forefront of the marketplac e typically offer many of the services that BSC
has. These services include information-based consulting, integration and management services.
Services are designed to increase clients' operations effectiveness through reduced cost,
improved customer service, enhanced quality of current product lines and services, and a more
rapid introduction of new products and services. Competitors also offer industry-specific
expertise to objec tively evaluate, selec t, develop, implement, and manage information systems,
networks, and applications.
Page 1

Consulting firms BSC is competing with include regional and specialty consulting firms, as well as
the consulting groups of international ac counting forms such as KPMG LLP, Ernst & Young LLP,
Deloitte & Touche LLP, PricewaterhouseCoopers LLP, and Andersen Consulting. In its
management and IT consulting services, BSC competes with information system vendors such as
HBO & Company, Inc., Integrated Systems Solution Corporation, Elec tronic Data Systems
Corporation, Perot Systems Corporation, SAIC, CAP Gemini America, Inc., and Computer Sc iences
Corporation. In e-commerce-related services, BSC competes with the traditional competitors, as
well as newer, Internet product and service companies such as Razorfish, Sc ient, TriZetto, and
Viant.
Financial
BSC's co-owners, Andrew B. Christiansen and David E. Fields, will eac h provide $50,000 that will
cover the bulk of the start-up expenses. The rest of the required financing will come from the
Small Business Administration (SBA) 10-year loan in the amount of $100,000. Combined, these
funds will be sufficient to cover the company's expenses throughout the first year of operations,
which is the most critical from the cash flow standpoint.
BSC's Break-even Analysis is based on the average of the first-year figures for total sales by
salaries, bonuses costs, and all other operating expenses. Such analysis shows that BSC will
break-even by the tenth month of operations.
1.1 Mission
Business Solutions Consulting aims to offer comprehensive consulting services. BSC will foc us on
providing personal and specialized services to meet each c lient's specific needs.
Page 2

1.2 Keys to Success
BSC's keys to success include:
1.
2.
3.
4.
A group of professionals with a broad range of specialty areas that complement each other.
A high level of experience in these specialty areas.
A team approach on most consulting projec ts.
Many business contac ts among the consultant group.
2.0 Company Summary

Business Solutions Consulting is a startup firm, which will foc us on providing a wide range of
business consulting services to other startups and companies in early stages of their operations.
Business Solutions Consulting is a team of six Business Consultants. Each c onsultant specializes
in a particular disc ipline, including finance, sales and marketing, tec hnology, management,
operations, and human resources.
2.1 Company Ownership

Business Solutions Consulting was registered in September, 2000 as an Oregon LLC, equally
owned by Andrew B. Christiansen and David E. Fields.
3.0 Start-up Summary

BSC's co-owners, Andrew B. Christiansen and David E. Fields, will eac h provide $49,750 in
investment that will cover the bulk of the start-up expenses. The rest of the required financing
will come from the Small Business Administration (SBA) 10-year loan in the amount of $100,000.
Combined, these funds will be sufficient to cover the company's expenses throughout the first
year of operations, which is the most critical from the cash flow standpoint.
The following chart and table contain projec ted initial start-up cost data.
Page 3
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Office Supplies
Other
Total Start-up Expenses
$2,500
$2,000
$1,000
$5,500
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$150,000
$20,000
$25,000
$195,000
Total Requirements
$200,500
Page 4

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$5,500
$195,000
$200,500
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$45,000
$150,000
$0
$150,000
$195,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$100,000
$1,000
$0
$101,000
Capital
Planned Investment
Investor 1
Investor 2
Additional Investment Requirement
Total Planned Investment
$49,750
$49,750
$0
$99,500
Loss at Start-up (Start-up Expenses)

Total Capital
($5,500)
$94,000
Total Capital and Liabilities
$195,000
Total Funding
$200,500
4.0 Service Description

BSC offers a list of services for business owners to choose from, depending on their particular
business needs.
Start-up services include business plan preparation, marketing plan preparation, and financing
search and proc urement. Ongoing services include business plan updates, marketing plan
updates, search and proc urement of additional rounds of financing, management development, IT
consulting services, e-commerce consulting services, operational advising, and human resources
advising.
BSC is flexible, working with its clients in the fashion preferred by the client, be it on-site,
remotely, or a combination of both. BSC typically works on a projec t in a team fashion to assist
the client in all areas of the business simultaneously. This allows for all parties involved to be in
sync in terms of understanding the interconnec tions of all functional areas of the business.
Page 5

5.0 Market Analysis Summary
BSC will have a foc us on start-up businesses, preferably in the earlier stages of operation. Small
and mid-sized businesses make up a sizable majority of U.S. and international markets. BSC
prefers to establish a relationship with a younger operation and continue to nurture that
relationship for the long term. The following chart and table show BSC's projec ted target markets
and their growth for the first three years of this plan.
Table: Market Analysis

Market Analysis
2001
Potential Customers
Start-Up Companies
1-3 Year Old Companies
3 + Year Old Companies
Other
Total
Growth
10%
8%
6%
0%
8.96%
1,900,000
900,000
400,000
0
3,200,000
2002
2,090,000
972,000
424,000
0
3,486,000
2003
2,299,000
1,049,760
449,440
0
3,798,200
2004
2,528,900
1,133,741
476,406
0
4,139,047
2005
2,781,790
1,224,440
504,990
0
4,511,220
CAGR
10.00%
8.00%
6.00%
0.00%
8.96%
Page 6

5.1 Market Segmentation
Start-Ups
Start-up companies often are in need of expert advice and planning in initiating a successful
start-up. It is believed that a majority of start-ups ac tually seek out consulting assistance.
Those that do typically are searching for a comprehensive area of services.
1-3 Year Old Companies
Young companies, between 1 and 3 years old are less likely to be searching for expert business
consulting services. Typically, they have already secured financing and have developed a
satisfac tory level of security. However, these businesses are still in the beginnings of their
overall cycle and in most cases need the broad expertise of a team of expert consultants.
3 + Year-Old Companies
Established companies make up the final segment, and is significantly smaller than the start-up
segment. The established company segment typically has a need for a less comprehensive range
of services. These entities are in need of specialized services in one or two disc iplines, e.g.,
operational planning or human resources.
5.2 Target Market Segment Strategy

Start-up companies are the target market of this firm. BSC intends to stay on the pulse of new
business ac tivity within the loc al area. Additionally, business contac ts, referrals from among the
group, and Internet marketing efforts will be made in pursuit of new clients.
5.3 Market Needs

Start-up company owners often lac k the broad range of knowledge and expertise required to
launch a new business. There is a serious need in the marketplac e, and certainly a significant
demand for, these types of start-up consulting services.
5.4 Service Business Analysis

The business consulting industry is very fragmented. Several large multi-national companies
dominate the industry while many smaller (and often more specialized) firms oc cupy their market
niches. Major management consulting companies, such as McKinsey, Bain, and Boston Consulting
Group, have established their dominant position by providing services to the leading companies in
various industries. Consulting prac tices of the major ac counting firms (a.k.a. the Big Five) have
established worldwide presence and sell their pac kaged services to companies of different sizes
and industries. At the same time, numerous firms and individual business consultants prosper in
the market niches that bigger players consider unprofitable to enter.
Page 7

5.5 Competition and Buying Patterns
Competitors in the forefront of the marketplac e typically offer information-based consulting,
integration and management services. Services are designed to increase clients' operations
effectiveness through reduced cost, improved customer service, enhanced quality of current
product lines and services, and a more rapid introduction of new products and services.
Competitors also offer industry-specific expertise to objec tively evaluate, selec t, develop,
implement, and manage information systems, networks, and applications.
Consulting services are bec oming more foc used on technology-based solutions to help clients
improve cost management, quality, service, and research and development to obtain
differentiation and competitive advantage. E-strategy services are being provided to business
and IT exec utives with education, insights, and strategies to utilize the power of the Internet to
improve their performance. E-strategy services include exec utive visioning, business strategy,
planning for e-business initiatives, user design, and intellec tual capital formation. IT strategy
consulting services are foc using on the use of IT to support business goals, and to leverage the
power of the Internet to transform the way products and services are distributed and retailed.
Strategic planning consulting services typically consist of strategic alignment (which includes IT
strategic planning and governance, alignment of IT and proc ess, and future foc us and regulatory
requirements), IT department operational excellence (which includes fisc al responsibility,
infrastructure, IT department proc esses, data center operations, and IT human resources
management), and IT value realization (which c onsists of performance measurement, business
integration (people, proc ess and technology), change management and application investment).
Performance improvement services consist of proc ess redesigning to reducing administrative
costs, improving financial performance, engaging and retaining customers, and improving
ac countability and reporting.
Other commonly found services among c ompetitors include long-term IT management expertise,
as well as a wide range of management services including assessment/due diligence, program
management, disc rete outsourcing, and full IT outsourcing services.
Consulting firms BSC is competing with include regional and specialty consulting firms, as well as
the consulting groups of international ac counting forms such as KPMG LLP, Ernst & Young LLP,
Deloitte & Touche LLP, PricewaterhouseCoopers LLP, and Andersen Consulting. In its
management and IT consulting services, BSC competes with information system vendors such as
HBO & Company, Inc., Integrated Systems Solution Corporation, Elec tronic Data Systems
Corporation, Perot Systems Corporation, SAIC, CAP Gemini America, Inc., and Computer Sc iences
Corporation. In e-commerce-related services, BSC competes with the traditional competitors, as
well as newer, Internet product and service companies such as Razorfish, Sc ient, TriZetto, and
Viant.
6.0 Strategy and Implementation Summary

BSC intends to succeed by offering companies a comprehensive range of multi-cycle business
planning solutions.
6.1 Competitive Edge

Our competitive edge is the team approach of consultants who are eac h foc used in one or two
business disc iplines.
Page 8

6.2 Sales Strategy
BSC intends to succeed by offering companies a comprehensive range of multi-cycle business
planning solutions. The company will strive to optimize its billing hours. The following table
outlines the sales forec ast for the next three years.
Table: Sales Forecast

Sales Forecast
2001
2002
2003
191
175
223
223
812
397
364
464
464
1,688
763
699
890
890
3,242
Unit Prices
Business Plans
Start-Up Consulting
Annual Reviews
2001
$1,500.00
$1,500.00
$1,000.00
2002
$1,500.00
$1,500.00
$1,000.00
2003
$1,500.00
$1,500.00
$1,000.00
Other Ongoing Business Consulting
$1,500.00
$1,500.00
$1,500.00
Sales
Business Plans
Start-Up Consulting
Annual Reviews
Total Sales
$286,508
$262,633
$222,840
$334,260
$1,106,240
$595,937
$546,276
$463,507
$695,260
$2,300,980
$1,144,199
$1,048,850
$889,933
$1,334,899
$4,417,881
Direct Unit Costs

Business Plans
Start-Up Consulting
Annual Reviews
2001
$0.00
$0.00
$0.00
$0.00
2002
$0.00
$0.00
$0.00
$0.00
2003
$0.00
$0.00
$0.00
$0.00
Direct Cost of Sales

Business Plans
Start-Up Consulting
Annual Reviews
Subtotal Direct Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Unit Sales
Business Plans
Start-Up Consulting
Annual Reviews
Total Unit Sales
Page 9
Page 10

7.0 Management Team
Andrew B. Christiansen has extensive experience in business planning and finance, including CFO
positions with ABC Conglomerate and DEF International. David E. Fields brings in experience in
the area of marketing, advertising, and communications.
7.1 Personnel Plan

The following table illustrates the personnel plan for the next three years. No major changes in
headc ount are planned.
Table: Personnel
Personnel Plan
Owner / Consultants
Other
Total People
2001
$600,000
$0
6
2002
$660,000
$0
7
2003
$726,000
$0
8
Total Payroll
$600,000
$660,000
$726,000
Page 11

8.0 Financial Plan
BSC expec ts to raise $100,000 as its own c apital, and to borrow $100,000 guaranteed by the
SBA as a 10-year loan. This provides the bulk of the current financing required.
8.1 Break-even Analysis

BSC's Break-even Analysis is based on the average of the first-year figures for total sales by
salaries, bonuses costs, and all other operating expenses. These are presented as per-unit
revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more
ac curate estimate of real risk. Such analysis shows that BSC will break-even by the tenth month
of operations.
Table: Break-even Analysis

Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
56
$76,150
$1,362.36
$0.00
$76,150
Page 12

8.2 Projected Profit and Loss
As the profit and loss table shows, BSC expec ts to continue its steady growth in profitability
over the next three years of operations.
Page 13
Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Other
Total Cost of Sales
2001
$1,106,240
$0
$0
$0
2002
$2,300,980
$0
$0
$0
2003
$4,417,881
$0
$0
$0
Gross Margin
Gross Margin %
$1,106,240
100.00%
$2,300,980
100.00%
$4,417,881
100.00%
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Utilities
Payroll Taxes
Other
$600,000
$216,600
$6,000
$1,200
$90,000
$0
$660,000
$227,430
$6,300
$1,266
$99,000
$0
$726,000
$238,802
$6,615
$1,336
$108,900
$0
Total Operating Expenses
$913,800
$993,996
$1,081,652
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
$192,440
$198,440
$8,050
$45,725
$1,306,984
$1,313,284
$6,065
$325,230
$3,336,229
$3,342,844
$5,356
$846,597
Net Profit
Net Profit/Sales
$138,666
12.53%
$975,689
42.40%
$2,484,276
56.23%
Page 14
Page 15

8.3 Projected Cash Flow
As the cash flow statement illustrates, BSC expec ts to maintain a steady rate of cash flow over
the next three years of operations.
Page 16

Table: Cash Flow
Pro Forma Cash Flow
2001
2002
2003
Cash from Operations

Cash Sales
Subtotal Cash from Operations
$1,106,240
$1,106,240
$2,300,980
$2,300,980
$4,417,881
$4,417,881
Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
$0
$0
$0
$0
$0
$0
$0
$1,106,240
$0
$0
$0
$0
$0
$0
$0
$2,300,980
$0
$0
$0
$0
$0
$0
$0
$4,417,881
2001
2002
2003
Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
$600,000
$327,069
$927,069
$660,000
$640,332
$1,300,332
$726,000
$1,156,442
$1,882,442
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$0
$0
$0
$36,000
$0
$0
$0
$963,069
$0
$0
$0
$6,700
$0
$45,000
$0
$1,352,032
$0
$0
$0
$7,486
$0
$55,000
$0
$1,944,928
Net Cash Flow

Cash Balance
$143,171
$293,171
$948,947
$1,242,118
$2,472,953
$3,715,072
Cash Received
Expenditures
Page 17

8.4 Projected Balance Sheet
Following is a copy of the company's projec ted balance sheet.
Table: Balance Sheet

Pro Forma Balance Sheet
2001
2002
2003
Current Assets
Cash
Total Current Assets
$293,171
$20,000
$313,171
$1,242,118
$20,000
$1,262,118
$3,715,072
$20,000
$3,735,072
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$25,000
$6,000
$19,000
$332,171
$70,000
$12,300
$57,700
$1,319,818
$125,000
$18,915
$106,085
$3,841,157
2001
2002
2003
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$35,505
$0
$0
$35,505
$54,164
$0
$0
$54,164
$98,711
$0
$0
$98,711
Total Liabilities
$64,000
$99,505
$57,300
$111,464
$49,814
$148,525
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$99,500
($5,500)
$138,666
$232,666
$332,171
$99,500
$133,166
$975,689
$1,208,355
$1,319,818
$99,500
$1,108,855
$2,484,276
$3,692,631
$3,841,157
Net Worth
$232,666
$1,208,355
$3,692,631
Assets
Page 18

8.5 Business Ratios
The following table outlines the important business ratios for Business Solutions Consulting, as
determined by the Standard Industry Classification (SIC) Index. Ratios for the Business
Consulting services industry (SIC 8748) are used as a benchmark in this table.
Page 19

Table: Ratios
Ratio Analysis
2001
0.00%
2002
108.00%
2003
92.00%
Industry Profile
12.40%
6.02%
94.28%
5.72%
100.00%
1.52%
95.63%
4.37%
100.00%
0.52%
97.24%
2.76%
100.00%
44.70%
74.50%
25.50%
100.00%
10.69%
19.27%
29.96%
70.04%
4.10%
4.34%
8.45%
91.55%
2.57%
1.30%
3.87%
96.13%
44.30%
16.00%
60.30%
39.70%
100.00%
100.00%
87.63%
10.85%
17.40%
100.00%
100.00%
57.71%
5.48%
56.80%
100.00%
100.00%
43.51%
2.99%
75.52%
100.00%
0.00%
80.80%
1.30%
2.20%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
8.82
8.82
29.96%
79.25%
55.51%
23.30
23.30
8.45%
107.66%
98.57%
37.84
37.84
3.87%
90.20%
86.72%
1.75
1.38
60.30%
3.80%
9.70%
Additional Ratios
Net Profit Margin
Return on Equity
2001
12.53%
59.60%
2002
42.40%
80.75%
2003
56.23%
67.28%
n.a
n.a
10.18
27
3.33
12.17
25
1.74
12.17
23
1.15
n.a
n.a
n.a
0.43
0.36
0.09
0.49
0.04
0.66
n.a
n.a
$277,666
23.91
$1,207,955
215.50
$3,636,360
622.93
n.a
n.a
0.30
11%
8.82
4.75
0.00
0.57
4%
23.30
1.90
0.00
0.87
3%
37.84
1.20
0.00
n.a
n.a
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Activity Ratios
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
Page 20
Appendix
Table: Sales Forecast
Sales Forecast
Unit Sales
Business Plans
Start-Up Consulting
Annual Reviews
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
0%
12
13
13
14
15
15
16
17
18
19
20
21
0%
0%
0%
11
14
14
12
15
15
12
15
15
13
16
16
13
17
17
14
18
18
15
19
19
15
20
20
16
21
21
17
22
22
18
23
23
19
24
24
51
54
56
59
62
65
68
72
75
79
83
87
Total Unit Sales

Unit Prices
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Business Plans
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
Start-Up Consulting
Annual Reviews
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,000.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
Business Plans
Start-Up Consulting
Annual Reviews
$18,000
$16,500
$14,000
$18,900
$17,325
$14,700
$19,845
$18,191
$15,435
$20,837
$19,101
$16,207
$21,879
$20,056
$17,017
$22,973
$21,059
$17,868
$24,122
$22,112
$18,761
$25,328
$23,217
$19,699
$26,594
$24,378
$20,684
$27,924
$25,597
$21,719
$29,320
$26,877
$22,805
$30,786
$28,221
$23,945

Total Sales
$21,000
$69,500
$22,050
$72,975
$23,153
$76,624
$24,310
$80,455
$25,526
$84,478
$26,802
$88,702
$28,142
$93,137
$29,549
$97,793
$31,027
$102,683
$32,578
$107,817
$34,207
$113,208
$35,917
$118,869
Sales
Direct Unit Costs
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Business Plans
Start-Up Consulting
0.00%
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Annual Reviews
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Business Plans
Start-Up Consulting
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Annual Reviews
Subtotal Direct Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Page 1
Appendix
Table: General Assumptions
General Assumptions
Jan
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Feb
2
Mar
3
Apr
4
May
5
Jun
6
Jul
7
Aug
8
Sep
9
Oct
10
Nov
11
Dec
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
30.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Jan
$69,500
$0
Feb
$72,975
$0
Mar
$76,624
$0
Apr
$80,455
$0
May
$84,478
$0
Jun
$88,702
$0
Jul
$93,137
$0
Aug
$97,793
$0
Sep
$102,683
$0
Oct
$107,817
$0
Nov
$113,208
$0
Dec
$118,869
$0
Other
Total Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Gross Margin
Gross Margin %
$69,500
100.00%
$72,975
100.00%
$76,624
100.00%
$80,455
100.00%
$84,478
100.00%
$88,702
100.00%
$93,137
100.00%
$97,793
100.00%
$102,683
100.00%
$107,817
100.00%
$113,208
100.00%
$118,869
100.00%
Expenses
Payroll
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$18,050
$500
Sales and Marketing and Other

Expenses
Depreciation
5%
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Utilities
6%
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
15%
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
$7,500
$0
Total Operating Expenses
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
$76,150
($6,650)
($3,175)
$474
$4,305
$8,328
$12,552
$16,987
$21,643
$26,533
$31,667
$37,058
$42,719
EBITDA
Interest Expense
Taxes Incurred
($6,150)
$808
($2,238)
($2,675)
$783
($990)
$974
$758
($71)
$4,805
$733
$893
$8,828
$708
$1,905
$13,052
$683
$2,967
$17,487
$658
$4,082
$22,143
$633
$5,253
$27,033
$608
$6,481
$32,167
$583
$7,771
$37,558
$558
$9,125
$43,219
$533
$10,546
Net Profit
Net Profit/Sales
($5,221)
-7.51%
($2,969)
-4.07%
($213)
-0.28%
$2,679
3.33%
$5,715
6.76%
$8,901
10.03%
$12,246
13.15%
$15,758
16.11%
$19,444
18.94%
$23,313
21.62%
$27,375
24.18%
$31,639
26.62%
Payroll Taxes
Other
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$69,500
$69,500
$72,975
$72,975
$76,624
$76,624
$80,455
$80,455
$84,478
$84,478
$88,702
$88,702
$93,137
$93,137
$97,793
$97,793
$102,683
$102,683
$107,817
$107,817
$113,208
$113,208
$118,869
$118,869
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$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)

New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets

Sales of Long-term Assets
New Investment Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$69,500
$72,975
$76,624
$80,455
$84,478
$88,702
$93,137
$97,793
$102,683
$107,817
$113,208
$118,869
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$1,807
$24,262
$25,474
$26,368
$27,309
$28,298
$29,337
$30,429
$31,576
$32,782
$34,049
$35,380
$51,807
$74,262
$75,474
$76,368
$77,309
$78,298
$79,337
$80,429
$81,576
$82,782
$84,049
$85,380
Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment
Purchase Other Current Assets
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$3,000
$0
$0
$0
$54,807
$0
$0
$77,262
$0
$0
$78,474
$0
$0
$79,368
$0
$0
$80,309
$0
$0
$81,298
$0
$0
$82,337
$0
$0
$83,429
$0
$0
$84,576
$0
$0
$85,782
$0
$0
$87,049
$0
$0
$88,380
$14,693
$164,693
($4,287)
$160,406
($1,850)
$158,556
$1,086
$159,643
$4,169
$163,811
$7,404
$171,215
$10,800
$182,015
$14,365
$196,380
$18,107
$214,487
$22,036
$236,523
$26,160
$262,682
$30,489
$293,171
Subtotal Cash Received

Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
0.00%
Additional Cash Spent
Purchase Long-term Assets

Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Page 4
Appendix
Table: Personnel
Personnel Plan
Jan
$50,000
$0
Feb
$50,000
$0
Mar
$50,000
$0
Apr
$50,000
$0
May
$50,000
$0
Jun
$50,000
$0
Jul
$50,000
$0
Aug
$50,000
$0
Sep
$50,000
$0
Oct
$50,000
$0
Nov
$50,000
$0
Dec
$50,000
$0
Total People
Total Payroll
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
Owner / Consultants
Other
0%
0%
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Starting Balances
Current Assets
Cash
$150,000
$20,000
$164,693
$20,000
$160,406
$20,000
$158,556
$20,000
$159,643
$20,000
$163,811
$20,000
$171,215
$20,000
$182,015
$20,000
$196,380
$20,000
$214,487
$20,000
$236,523
$20,000
$262,682
$20,000
$293,171
$20,000
$170,000
$184,693
$180,406
$178,556
$179,643
$183,811
$191,215
$202,015
$216,380
$234,487
$256,523
$282,682
$313,171
$25,000
$0
$25,000
$25,000
$500
$24,500
$25,000
$1,000
$24,000
$25,000
$1,500
$23,500
$25,000
$2,000
$23,000
$25,000
$2,500
$22,500
$25,000
$3,000
$22,000
$25,000
$3,500
$21,500
$25,000
$4,000
$21,000
$25,000
$4,500
$20,500
$25,000
$5,000
$20,000
$25,000
$5,500
$19,500
$25,000
$6,000
$19,000
$195,000
$209,193
$204,406
$202,056
$202,643
$206,311
$213,215
$223,515
$237,380
$254,987
$276,523
$302,182
$332,171
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
$1,000
$23,413
$24,596
$25,459
$26,367
$27,321
$28,324
$29,377
$30,485
$31,648
$32,871
$34,156
$35,505
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$1,000
$0
$0
$23,413
$0
$0
$24,596
$0
$0
$25,459
$0
$0
$26,367
$0
$0
$27,321
$0
$0
$28,324
$0
$0
$29,377
$0
$0
$30,485
$0
$0
$31,648
$0
$0
$32,871
$0
$0
$34,156
$0
$0
$35,505
$100,000
$101,000
$97,000
$120,413
$94,000
$118,596
$91,000
$116,459
$88,000
$114,367
$85,000
$112,321
$82,000
$110,324
$79,000
$108,377
$76,000
$106,485
$73,000
$104,648
$70,000
$102,871
$67,000
$101,156
$64,000
$99,505
Total Liabilities
Paid-in Capital
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
$99,500
Retained Earnings
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
($5,500)
Earnings
Total Capital
$0
$94,000
($5,221)
$88,779
($8,190)
$85,810
($8,403)
$85,597
($5,724)
$88,276
($10)
$93,990
$8,891
$102,891
$21,138
$115,138
$36,895
$130,895
$56,339
$150,339
$79,652
$173,652
$107,027
$201,027
$138,666
$232,666
$195,000
$209,193
$204,406
$202,056
$202,643
$206,311
$213,215
$223,515
$237,380
$254,987
$276,523
$302,182
$332,171
$94,000
$88,779
$85,810
$85,597
$88,276
$93,990
$102,891
$115,138
$130,895
$150,339
$173,652
$201,027
$232,666
Total Liabilities and Capital

Net Worth
Page 6

Business Solutions Consulting

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Solutions Consulting

Uploaded by

Copyright:

Available Formats

January 2001

Copyright Palo Alto Software, Inc., 1995-2007