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Table of Contents
Table of Contents
Page 2
Sun Heat
1
PROJECT PROFILE ON ELECTRIC / SOLAR COOLER
1. PRODUCT : ELECTRIC/ SOLAR COOLER
2. PRODUCT CODE : ----------3. QUALITY STANDARD : ----------4. PRODUCTION CAPACITY : QUANTITY : 3600 Nos. (Per
Annum)
VALUE : Rs. 2,80,80,000
5. YEAR OF PREPARATION : 2010-11
6. PREPARED BY : ELECTRIC DIVISION
Micro, Small & Medium
Enterprises-Development
Institute Okhla,
New Delhi-20
PHONE NO.: 26838118, 26847223
FAX : 268380162
1. INTRODUCTION
Electric Solar Cooler as the names suggest is essentially and New concept of a
domestic appliance intended for Cooling in the Summer season It is operated
electrically as well as Sun light also. Electric Solar Cooler is an essential
appliances to save the electric energy, it is basic need where the electric energy is
not available, as in Small Towns and Rural Areas it bi-purpose device, it may run
by Solar as well as Electric Energy .
Electric Solar Cooler is operated at 220 volts A. C., single phase and By DC at 24
V which may charge by 25W Solar Panel it will be available in three different
rated speeds such.
2. MARKET POTENTIAL
As it is a new concept in India and it save the electric energy it will basic need of
this country because there is a major shortage of electric energy. The Models may
be possible in the Portable sizes also, So that it may easy to carry at office ,shops,
as well as in to another . This by itself is bound to increase demand for electrical
saving appliance, in future.
3. BASIS AND PRESUMPTIONS
i) The basis for calculation of production capacity has been taken on single
shift basis on 75% efficiency.
ii) The maximum capacity utilization on single shift basis for 300 days a
year. During first year and second year of operations the capacity
utilization is 60% and 80% respectively. The unit is expected to achieve
full capacity utilization from the third year onwards.
iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are
based on the prevailing rates in and around Imphal. These cost factors are
likely to vary with time and location.
iv) Interest on term loan and working capital loan has been taken at the rate
of 13% on an average. This rate may vary depending upon the policy of
the financial the policy of the financial institutions/agencies from time to
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Sun Heat
time.
v) The cost of machinery and equipments refer to a particular make/model
and prices are approximate.
vi) The break-even point percentage indicated is of full capacity utilization.3
vii) The project preparation cost etc. whenever required could be considered
under pre-operative expenses.
viii) The essential production machinery and test production machinery and
tes equipment required for the project have been indicted. The unit may
also utilize common test facilities available at Electronics Test and
Development Centres (ETDCs) and Electronic Regional Test
Laboratories (ERTLs) and MSME Testing Centers (MSME-TCs).
4. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project has been listed and the
average time for implementation of the project is estimated at 12 months:
S.
No.
Activity Period (In Months)
1. Preparation of project report 1
2. Registration and other formalities 1
3. Sanction of loan by financial Institutions 3
4. Plant and Machinery:
a)Placements of orders
b)Procurement
c)Power connection/Electrification
d)Installation/Erection of machinery/Test
Equipment
1
2
2
2
5. Procurement of raw materials 2
6. Recruitment of Technical personnel etc. 2
7. Trial production 11
8. Commercial production 12
Notes
1. Many of the above activities shall be initiated concurrently.
2. Procurement of raw materials commences from the 8
th month onwards.
3. When imported plant and machinery are required, the implementation period
of project may vary from 12 months to 15 months.4
5. TECHNICAL ASPECTS
I. Process of Manufacture
As per the required specification and design, the plastic graduals in different
varieties has to arrange and different sizes dies and moulds for bodies, as portable
stable, and there finishing of all the parts. Checking of all the parts and fitting as
Page 2
Sun Heat
electrical switches, sides of Cooler body, Solar Panel, battery Leads connection
wiring done fitted at proper places and necessary etc. After complete
manufacturing of various parts and components the Electric Solar Cooler is
assembled, tested and packed...
II. Quality Control and Standards
As per IS
III. Production Capacity (Per Annum)
Quantity : 3600 Nos. (Per Annum) --ELECTRIC SOLAR COOLER
Value : Rs. 2,80,80,000 @Rs.7800/
IV. Motive Power : 10 K.W.
V. POLLUTION CONTROL
The Government accords utmost importance to control environmental pollution.
The small-scale entrepreneurs should have and environmental friendly attitude and
adopt pollution control measures by process modification and technology
substitution.
India having acceded to the montreal Protocol in September, 1992, the production
and use of Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFCs),
Carbon Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out
immediately with altenative chemicals/solvents. A notification fro detailed rules to
regulage ODS phase out under the Environment Protection Act,1986 have been put
in place with effect from 19
th July 2000.
i) In Electronic industry fumes and gases are released during hand
soldering/wave soldering/Dip soldering, which are harmful to people as
well as environment and the end products. Alternate technologies may be5
used to phase out the existing pollution technologies. Numerous new
fluxes have been developed containing 2-10% solids as opposed to the
traditional 15-35% solids.
ii) Electronic industry uses CFCs, carbon Tetrachloride and Methyl
Chloroform for cleaning of printed cicuit boards after assembly to
remove flux residues left after soldering, and various kinds of foams for
packaging.
Many alternative solvents could replace CFC-113 and Methyl Chloroform in
electronics cleaning. Other Chlorinated solvents such as trichloroethylene, per
chloroethylene and methylene chloride have been used an effective cleaners in
electronics industry for many years. Other organic solvents such as ketones and
Alcohols are effective in removing both solder fluxes and many polar
contaminants.
VI. ENERGY CONSERVATION
With the growing energy needs and shortage coupled with rising energy cost, a
greater thrust in energy efficiency in industrial sector has been given by the Govt.
of India since 1980s. the energy Conservation Act 2001 has been enacted on 18
th
August2001 which provides for ifficient us of energy, its conservation & Capacity
building of Bureau of Energy Efficiency created under the Act.
Page 3
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Page 4
Sun Heat
Total fixed
Capital
3,79,700
Say 3,80,0007
B. WORKING CAPITAL (PER MONTHS)
(i) Staff & Labour
S. No. Designation Nos. Rate
(Rs.)
Amounts (Rs.)
1. Factory Manager cum
engineer
1 no. 15,000 15,000
2. Skilled Worker 2 nos. 10,000 10,000
3. Semi- Skilled Worker 4 nos. 3,500 14,000
4. Clerk cum-typist 1 no. 7,000
7,000
5. Accountant 1 no. 8,000
8,000
6. Peon cum Watchman 1 no. 4,000
4,000
Total 58,000
Prerquisites @ 15 %
Total 8,700
Say 9,000
(ii) Raw Materials requirement per month
S. No. Particulars Qty. Rate
(Rs.)
Amounts
(Rs.)
1. Plastic graduals 1800 Kg 100 1,80,000
2. Packing Tape 100 Nos 12 12,00
3. Speed Switches, Pump Switches
etc
300 Nos 60 18,000
4. Fan Motor 300 Nos 300 90,000
5. Pump Motor 300 Nos 800 2,40,000
6. Screw nuts, washers steel spring
rod etc.
250 kg 40 10,000
7. Wiring sets 300 Sets 20 6,000
8. Cable 3-Core complete with 3 mtrs 300 Sets 30 9,000
9. Packages 300 Box 80 24,000
10. Solar Panels 25 Watts 300 Nos. 3000 9,00,000
11. Battery 36 AH( as Use in Car) 300 Nos 1500 4,50,000
12. Misc. 15,0008
Page 5
Sun Heat
TOTAL
19,43,200
Say
19,43,000
(iii) Utilities (Per Month)
Power 6,000
Water 1,000
Total 7,000
Say 7,000
(iv)Other Contingent expenses per month
S. No. Description Amounts (Rs.)
1. Rent 12,000
2. Postage, stationery and 3,000
3. Telephone/Telex/Fax Charges 3,000
4. Repairs and Maintenance 2,000
5. Transport and conveyance charges 3,500
6. Advt. and publicity 10,000
7. Insurance and taxes 800
8. Miscellaneous expenditure 5,000
Total 39,300/
Say 39,000/
Total recurring expenditure per month
(i+ii+iii+iv) =Rs.20,56,500/
Say Rs.20,57,000/
C. TOTAL CAPITAL INVESTMENT
Fixed Capital Rs.3,80,000
Working Capital on 3 months basis Rs.61,71,000
Total Rs.65,51,0009
D. FINANCIAL ANALYSIS
(I) Cost of production per annum
Total recurring expenditure Rs.2,46,84,000
Depreciation on machinery and equipment @
10 %
Rs. 5,700
Depreciation on tools, jigs and fixtures @
25%
Rs. 95,000
Depreciation on office equipment, furniture
@ 20%
Rs. 20,000
Interest on total capital investment @ 14% Rs. 9,17,100
Insurance Rs. 10,000
Total Rs. 2.57,22,000
or say Rs. 2.57,32,000
(II) Turn over per annum
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Sun Heat
technologies in order to keep them in pace with the developments for global
competition.
c. Quality today is no only confined to the product or service alone. It also
extends to the process and environment in which they are generated. The
ISO 9000 defines standards for Quality Management Systems and ISO11
14001 defines standards for Environmental Management System for
acceptability at international level. The unit therefore adopt these standards
for global competition.
d. The margin money recommended is 25% of the working capital requirement
at an average. However, the percentage of margin money may vary as per
banks discretion
Page 8
Sun Heat
Chart: Highlights
1.1 Objectives
1.2 Mission
Sun Heat's mission is to become the premier solar water heater company offering the highest
quality products and customer service while saving customers money and making positive
contributions to our environment.
1.3 Keys to Success
Sun Heat has identified three keys to success that help the company grow into a mature market
leader:
Providing cutting edge, reliable, and simple-to-install and maintain solar water heating
systems.
Broadening the market of solar heating into a mainstream energy source.
Designing and implementing strict financial controls.
Page 9
Sun Heat
Computer system- the required components of this system include seven terminals, four
laster printers, one central server, broadband Internet connections, and Microsoft Office for
all computers, two ACT! licenses, and two QuickBooks Pro licenses.
Laptop computer and LCD projector.
Website development.
Office furniture including desks, cabinets and chairs for seven stations.
Waiting room furniture.
Eight extension telephone system including a hardware-based voice mail system.
Three large white boards.
Sales room promotional displays.
Fax machine and copier.
Racks and shelving for the warehouse.
Forklift.
$9,000
$156,000
$165,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$62,000
$94,000
$0
$94,000
$156,000
$0
$0
$0
$0
$0
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
$60,000
$55,000
$50,000
$0
$165,000
($9,000)
Page 10
Sun Heat
Total Capital
$156,000
$156,000
Total Funding
$165,000
Chart: Start-up
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Total Start-up Expenses
$4,000
$1,000
$1,000
$2,000
$1,000
$9,000
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$94,000
$0
$62,000
$156,000
Total Requirements
$165,000
Page 11
Sun Heat
3.0 Products
Sun Heat will sell two versions of a solar home water heating system. One will be a unit sold as
a do-it-yourself model. The second model is sold as a unit to be installed by a licensed installer.
By providing two models, Sun Heat will appeal to two different customer segments, one that
likes the challenge of projects and has the skills to execute the plans, and people who desire a
solar heating system but have no desire or skills to install it themselves.
The sun is the planet's most powerful source of energy and also the most unused source of
energy by humans. Solar power is a clean, environmentally friendly source of energy. It is
renewable meaning it is impossible to consume the energy at a faster rate than it takes to
replenish it for future users. There are no toxic by products or emissions. Sun Heat is an
effective system that harnesses the sun's energy for family water heating needs.
Solar water heating systems are in high demand. Typically 30%-40% of a family's electricity bill
is devoted to devoted water. Sun Heat's system can save the individual family from 70%-90%
of the total amount spent on the electricity used for heating water. The system generally meets
all of the summer time heating needs. During times of decreased sunlight, the system will
preheat the water then bring it up to temperature by the conventional water heating system all
ready in place.
The Sun Heat system is designed for single family dwellings. The Sun Heat system consists of a
solar collector, a large storage container, a pump, and different valves throughout the system.
This system is an open loop set up. The plumbing from the storage tank to the collectors is
affected by city water pressure, it is "on the grid." A closed system would not be connected to
city water and heat exchangers would be needed, increasing complexity and cost while
decreasing efficiency.
Usually solar collectors or solar panels are located on the roof of the house. To get the full
benefit of a solar heater there must be an area available that has sufficient exposure to the
sun. The facing angle may be in any direction within 30 degrees of due south. The panels have
insulated tubes within the collectors that heat the water. A pump moves hot water from the
collectors to the storage tank and moves cold water into the collectors for heating. Several
valves are used as safeguards within the system. A pressure and temperature relief valve is
located near the steam vent. If a system or power failure occurs this valve protects
against overheating inside the solar panels which could cause damage. Safety relief valves are
located throughout the system to protect it should other components fail.
Sun Heat's products are manufactured by a large industry supplier and shipped to the Sun Heat
factory for partial assembly. With this procurement/manufacturing method, Sun Heat is able to
minimize large capital expenditures for manufacturing while being able to offer high quality
products.
Sun Heat provides a five year warranty on their products against manufacturer's defects. Five
years is the industry standard. Additionally, Sun Heat will require all of their licensed installers
to offer a 18 month warranty on the installation labor. This requirement ensures that Sun Heat
products are installed properly and minimizes the risk of decreasing brand equity due to faulty
installation.
Page 12
Sun Heat
Page 13
Sun Heat
Age 29-56.
Primarily male.
Married with at least one child at home.
Household income ranges from $50,000-$80,000.
73% have an undergraduate degree.
Undertake at least one project every three months.
Spend $250-$3000 per year on assorted projects at home stores such as Lowes or Home
Depot.
Convenience
This segment is looking for the advantages of a solar based water heating system without the
challenge of installation. They appreciate the value of the solar heating system. This group
recognizes the environmental and/or economic benefits of solar water heating and will choose a
professional installer. Demographic information is as follows:
Ages 35-65.
Married with at least one child at home.
Household incomes of $62,000-$110,000.
79% have an undergraduate degree.
27% have a graduate degree or post undergraduate coursework.
Have paid a contractor to carry out at least one home improvement project within the last
12 months.
Market Channels
Sun Heat will be be sold through several channels:
DIY Retailers: This channel purchases Sun Heat products in quantity and then resells them
to individuals to install.
Growth
DIY
Convenience
Total
9%
8%
8.59%
Year 1
Year 2
Year 3
Year 4
Year 5
3,968,987
2,789,254
6,758,241
4,326,196
3,012,394
7,338,590
4,715,554
3,253,386
7,968,940
5,139,954
3,513,657
8,653,611
5,602,550
3,794,750
9,397,300
CAGR
9.00%
8.00%
8.59%
Page 14
Sun Heat
Page 15
Sun Heat
Mega Sun: This is a Helioakami company. Their products are good but because they are
made in the EU (Greece) shipping and manufacturing costs make their prices less
competitive.
Solar Energy Systems: This company, based in CA manufactures very basic, do-it-yourself
systems. Their products are noticeably cheaper but are of poor quality with few features.
Shell Solar: This is a high end manufacturer pioneering the use of copper to increase
efficiency. While their product is more efficient, the cost of copper makes their products too
expensive for much of Sun Heat's target market.
Go Solar Company: This company currently manufactures solar electric systems but will
be releasing a solar water heating system within the next 11 months.
DIY: These customers will typically go into a Lowes or Home Depot and solicit the advice of
the floor sales agents.
Professional Installs: These customers typically rely on word of mouth or advice from
their contractors.
Page 16
Sun Heat
Page 17
Sun Heat
Page 18
Sun Heat
Year 2
Year 3
Professional install
DIY
Total Sales
$131,573
$108,736
$240,309
$216,025
$187,942
$403,967
$279,887
$243,502
$523,389
Year 1
$59,208
$48,931
$108,139
Year 2
$97,211
$84,574
$181,785
Year 3
$125,949
$109,576
$235,525
Sales
5.4 Milestones
Sun Heat has several milestones to use as goals for the organization. The following table details
the pertinent information.
Table: Milestones
Milestones
Milestone
Completion of business plan
First large DIY contract
Revenue exceeding $200K
Profitability
Totals
Start Date
1/1/2003
1/1/2003
1/1/2003
1/1/2003
End Date
1/15/2003
4/30/2003
11/1/2003
3/1/2004
Budget
$0
$0
$0
$0
$0
Manager
Sara
Sales
Sales
Sara
Department
Marketing
Department
Department
Department
Chart: Milestones
Page 19
Sun Heat
Table: Personnel
Personnel Plan
Sara
Sales
Sales
Warehouse
Warehouse
Customer service
Bookkeeper/ HR
Total People
Total Payroll
Year 1
Year 2
Year 3
$24,000
$22,000
$18,000
$14,300
$11,700
$13,000
$15,400
7
$30,000
$24,000
$24,000
$15,600
$15,600
$15,600
$16,800
7
$36,000
$26,000
$26,000
$15,600
$15,600
$15,600
$16,800
7
$118,400
$141,600
$151,600
Page 20
Sun Heat
Year 1
Year 2
Year 3
1
10.00%
10.00%
30.00%
0
2
10.00%
10.00%
30.00%
0
3
10.00%
10.00%
30.00%
0
Page 21
Sun Heat
$29,872
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
45%
$16,430
Page 22
Sun Heat
Page 23
Sun Heat
Page 24
Sun Heat
Year 2
Year 3
Sales
Direct Cost of Sales
Other Costs of Goods
Total Cost of Sales
$240,309
$108,139
$0
$108,139
$403,967
$181,785
$0
$181,785
$523,389
$235,525
$0
$235,525
Gross Margin
Gross Margin %
$132,170
55.00%
$222,182
55.00%
$287,864
55.00%
Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
$118,400
$5,400
$12,396
$24,000
$9,000
$7,800
$17,760
$2,400
$141,600
$5,400
$1,033
$25,000
$750
$7,800
$21,240
$2,400
$151,600
$5,400
$1,033
$26,000
$750
$7,800
$22,740
$2,400
$197,156
$205,223
$217,723
($64,986)
($52,590)
$0
$0
$16,959
$17,992
$0
$5,088
$70,141
$71,174
$0
$21,042
Net Profit
Net Profit/Sales
($64,986)
-27.04%
$11,871
2.94%
$49,099
9.38%
Expenses
Page 25
Sun Heat
Year 2
Year 3
$60,077
$136,262
$196,340
$100,992
$273,031
$374,022
$130,847
$370,691
$501,538
$0
$0
$0
$0
$0
$0
$0
$196,340
$0
$0
$0
$0
$0
$0
$0
$374,022
$0
$0
$0
$0
$0
$0
$0
$501,538
Year 1
Year 2
Year 3
$118,400
$155,929
$274,329
$141,600
$247,529
$389,129
$151,600
$315,723
$467,323
$0
$0
$0
$0
$0
$0
$0
$274,329
$0
$0
$0
$0
$0
$0
$0
$389,129
$0
$0
$0
$0
$0
$0
$0
$467,323
($77,989)
$16,011
($15,107)
$904
$34,215
$35,119
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
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
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Page 26
Sun Heat
Chart: Cash
Page 27
Sun Heat
Year 2
Year 3
$16,011
$43,969
$0
$59,980
$904
$73,914
$0
$74,818
$35,119
$95,765
$0
$130,883
$62,000
$12,396
$49,604
$109,584
$62,000
$13,429
$48,571
$123,389
$62,000
$14,462
$47,538
$178,421
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$18,570
$0
$0
$18,570
$20,504
$0
$0
$20,504
$26,438
$0
$0
$26,438
Long-term Liabilities
Total Liabilities
$0
$18,570
$0
$20,504
$0
$26,438
$165,000
($9,000)
($64,986)
$91,014
$109,584
$165,000
($73,986)
$11,871
$102,885
$123,389
$165,000
($62,115)
$49,099
$151,984
$178,421
$91,014
$102,885
$151,984
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
Liabilities and Capital
Current Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Page 28
Sun Heat
Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
68.10%
29.56%
10.72%
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
40.12%
0.00%
54.73%
45.27%
100.00%
59.90%
0.00%
60.64%
39.36%
100.00%
53.67%
0.00%
73.36%
26.64%
100.00%
10.41%
40.72%
51.79%
48.21%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
16.95%
0.00%
16.95%
83.05%
16.62%
0.00%
16.62%
83.38%
14.82%
0.00%
14.82%
85.18%
12.65%
40.12%
52.77%
47.23%
100.00%
55.00%
82.04%
0.00%
-27.04%
100.00%
55.00%
52.06%
0.00%
4.20%
100.00%
55.00%
45.62%
0.00%
13.40%
100.00%
47.48%
13.69%
0.03%
9.26%
3.23
3.23
16.95%
-71.40%
-59.30%
3.65
3.65
16.62%
16.48%
13.74%
4.95
4.95
14.82%
46.15%
39.31%
2.10
1.69
60.03%
7.72%
19.31%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Year 1
Year 2
Year 3
-27.04%
-71.40%
2.94%
11.54%
9.38%
32.31%
n.a
n.a
4.10
56
9.40
27
2.19
4.10
71
12.17
29
3.27
4.10
79
12.17
27
2.93
n.a
n.a
n.a
n.a
n.a
0.20
1.00
0.20
1.00
0.17
1.00
n.a
n.a
$41,410
0.00
$54,314
0.00
$104,446
0.00
n.a
n.a
0.46
17%
0.86
2.64
0.00
0.31
17%
0.04
3.93
0.00
0.34
15%
1.33
3.44
0.00
n.a
n.a
n.a
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
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 29
Appendix
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
$0
$0
$0
$0
$0
$0
$6,589
$0
$6,589
$9,854
$8,573
$18,427
$11,454
$9,965
$21,419
$13,545
$11,784
$25,329
$13,989
$12,170
$26,159
$14,022
$12,199
$26,221
$14,585
$12,689
$27,274
$15,655
$13,620
$29,275
$15,878
$13,814
$29,692
$16,002
$13,922
$29,924
Sales
Professional install
DIY
Total Sales
Direct Cost of Sales
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Professional install
$0
$0
$2,965
$4,434
$5,154
$6,095
$6,295
$6,310
$6,563
$7,045
$7,145
$7,201
DIY
$0
$0
$0
$3,858
$4,484
$5,303
$5,477
$5,490
$5,710
$6,129
$6,216
$6,265
$0
$0
$2,965
$8,292
$9,639
$11,398
$11,772
$11,800
$12,273
$13,174
$13,361
$13,466
Page 1
Appendix
Table: Personnel
Personnel Plan
Sara
Sales
Sales
Warehouse
Warehouse
Customer service
Bookkeeper/ HR
Total People
Total Payroll
0%
0%
0%
0%
0%
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$2,000
$0
$0
$0
$0
$0
$0
1
$2,000
$2,000
$0
$1,300
$0
$0
$1,400
4
$2,000
$2,000
$0
$1,300
$0
$1,300
$1,400
5
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$2,000
$2,000
$1,300
$1,300
$1,300
$1,400
7
$2,000
$6,700
$8,000
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
Page 2
Appendix
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
10
11
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%
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%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Plan Month
Other
Month 12
Page 3
Appendix
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
$0
$0
$6,589
$18,427
$21,419
$25,329
$26,159
$26,221
$27,274
$29,275
$29,692
$29,924
$0
$0
$2,965
$8,292
$9,639
$11,398
$11,772
$11,800
$12,273
$13,174
$13,361
$13,466
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,965
$8,292
$9,639
$11,398
$11,772
$11,800
$12,273
$13,174
$13,361
$13,466
Gross Margin
Gross Margin %
$0
$0
$3,624
$10,135
$11,780
$13,931
$14,388
$14,422
$15,001
$16,101
$16,331
$16,458
0.00%
0.00%
55.00%
55.00%
55.00%
55.00%
55.00%
55.00%
55.00%
55.00%
55.00%
55.00%
$2,000
Expenses
Payroll
$6,700
$8,000
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
$1,033
Rent
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Utilities
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
Insurance
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
$650
$300
$200
$1,005
$200
$1,200
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$1,695
$200
$7,383
$12,788
$14,283
$18,078
$18,078
$18,078
$18,078
$18,078
$18,078
$18,078
$18,078
$18,078
($7,383)
($12,788)
($10,659)
($7,943)
($6,298)
($4,147)
($3,690)
($3,656)
($3,077)
($1,977)
($1,747)
($1,620)
EBITDA
($6,350)
($11,755)
($9,626)
($6,910)
($5,265)
($3,114)
($2,657)
($2,623)
($2,044)
($944)
($714)
($587)
Interest Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Taxes Incurred
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($7,383)
($12,788)
($10,659)
($7,943)
($6,298)
($4,147)
($3,690)
($3,656)
($3,077)
($1,977)
($1,747)
($1,620)
0.00%
0.00%
-161.77%
-43.11%
-29.40%
-16.37%
-14.11%
-13.94%
-11.28%
-6.75%
-5.89%
-5.41%
Payroll Taxes
Other
Total Operating Expenses
Net Profit
Net Profit/Sales
15%
Page 4
Appendix
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 Sales
$0
$0
$1,647
$4,607
$5,355
$6,332
$6,540
$6,555
$6,818
$7,319
$7,423
$7,481
$0
$0
$0
$165
$5,238
$13,895
$16,162
$19,018
$19,621
$19,692
$20,505
$21,967
$0
$0
$1,647
$4,771
$10,592
$20,227
$22,702
$25,573
$26,440
$27,011
$27,928
$29,447
$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
$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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,647
$4,771
$10,592
$20,227
$22,702
$25,573
$26,440
$27,011
$27,928
$29,447
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$2,000
$6,700
$8,000
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$11,300
$145
$4,374
$5,160
$8,409
$14,082
$15,442
$17,156
$17,518
$17,560
$18,048
$18,925
$19,110
$2,145
$11,074
$13,160
$19,709
$25,382
$26,742
$28,456
$28,818
$28,860
$29,348
$30,225
$30,410
$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
$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
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,145
$11,074
$13,160
$19,709
$25,382
$26,742
$28,456
$28,818
$28,860
$29,348
$30,225
$30,410
($2,145)
($11,074)
($11,513)
($14,938)
($14,790)
($6,515)
($5,754)
($3,245)
($2,421)
($2,337)
($2,296)
($962)
Cash Balance
$91,855
$80,782
$69,268
$54,331
$39,541
$33,026
$27,273
$24,028
$21,607
$19,270
$16,973
$16,011
Cash Received
Cash from Operations
Expenditures
0.00%
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$94,000
$0
$0
$94,000
$91,855
$0
$0
$91,855
$80,782
$0
$0
$80,782
$69,268
$4,942
$0
$74,210
$54,331
$18,597
$0
$72,928
$39,541
$29,424
$0
$68,965
$33,026
$34,526
$0
$67,552
$27,273
$37,983
$0
$65,256
$24,028
$38,631
$0
$62,659
$21,607
$39,466
$0
$61,073
$19,270
$41,730
$0
$60,999
$16,973
$43,493
$0
$60,466
$16,011
$43,969
$0
$59,980
$62,000
$0
$62,000
$156,000
$62,000
$1,033
$60,967
$152,822
$62,000
$2,066
$59,934
$140,716
$62,000
$3,099
$58,901
$133,111
$62,000
$4,132
$57,868
$130,796
$62,000
$5,165
$56,835
$125,800
$62,000
$6,198
$55,802
$123,354
$62,000
$7,231
$54,769
$120,025
$62,000
$8,264
$53,736
$116,395
$62,000
$9,297
$52,703
$113,776
$62,000
$10,330
$51,670
$112,669
$62,000
$11,363
$50,637
$111,103
$62,000
$12,396
$49,604
$109,584
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
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
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$0
$0
$4,205
$0
$0
$4,205
$4,887
$0
$0
$4,887
$7,941
$0
$0
$7,941
$13,569
$0
$0
$13,569
$14,871
$0
$0
$14,871
$16,572
$0
$0
$16,572
$16,933
$0
$0
$16,933
$16,960
$0
$0
$16,960
$17,418
$0
$0
$17,418
$18,288
$0
$0
$18,288
$18,469
$0
$0
$18,469
$18,570
$0
$0
$18,570
Long-term Liabilities
Total Liabilities
$0
$0
$0
$4,205
$0
$4,887
$0
$7,941
$0
$13,569
$0
$14,871
$0
$16,572
$0
$16,933
$0
$16,960
$0
$17,418
$0
$18,288
$0
$18,469
$0
$18,570
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$165,000
($9,000)
$0
$156,000
$156,000
$165,000
($9,000)
($7,383)
$148,617
$152,822
$165,000
($9,000)
($20,171)
$135,829
$140,716
$165,000
($9,000)
($30,830)
$125,170
$133,111
$165,000
($9,000)
($38,773)
$117,227
$130,796
$165,000
($9,000)
($45,071)
$110,929
$125,800
$165,000
($9,000)
($49,218)
$106,782
$123,354
$165,000
($9,000)
($52,908)
$103,092
$120,025
$165,000
($9,000)
($56,564)
$99,436
$116,395
$165,000
($9,000)
($59,642)
$96,358
$113,776
$165,000
($9,000)
($61,619)
$94,381
$112,669
$165,000
($9,000)
($63,366)
$92,634
$111,103
$165,000
($9,000)
($64,986)
$91,014
$109,584
Net Worth
$156,000
$148,617
$135,829
$125,170
$117,227
$110,929
$106,782
$103,092
$99,436
$96,358
$94,381
$92,634
$91,014
Page 6