_____________
ABC Company
Business Plan
Web Site: www.yourdomainhere.com
Email: name@yourdomainhere.com
Main Office:
123 North Somewhere Street
Anywhere, Michigan 12345 USA
Phone: 317-000-1111
Fax: 317-111-2222

_____________
53



Confidentiality Agreement
The undersigned reader acknowledges that the information provided
by Jane Doe in this business plan is confidential; therefore, reader
agrees not to disclose it without the express written permission of Jane
Doe.
It is acknowledged by reader that information to be furnished in this
business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and
that any disclosure or use of same by reader, may cause serious harm
or damage to Jane Doe.
Upon request, this document is to be immediately returned to Jane
Doe.
_______________________________
Signature
_______________________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.

54



Table of Contents
 ([HFXWLYH6XPPDU\
 2EMHFWLYHV
1.2. Mission ................................................................................................................. 4
 .H\VWR6XFFHVV
 &RPSDQ\6XPPDU\
 &RPSDQ\2ZQHUVKLS
 6WDUWXS6XPPDU\
 6HUYLFHV
 0DUNHW$QDO\VLV6XPPDU\
 0DUNHW6HJPHQWDWLRQ
 7DUJHW0DUNHW6HJPHQW6WUDWHJ\
 6HUYLFH%XVLQHVV$QDO\VLV
 6WUDWHJ\DQG,PSOHPHQWDWLRQ6XPPDU\
 0DUNHWLQJ6WUDWHJ\
 6DOHV6WUDWHJ\
 6DOHV)RUHFDVW
 :HE3ODQ6XPPDU\
 0DQDJHPHQW6XPPDU\
 3HUVRQQHO3ODQ
 )LQDQFLDO3ODQ4
 6WDUWXS)XQGLQJ
 %UHDNHYHQ$QDO\VLV
 3URMHFWHG3URILWDQG/RVV
 3URMHFWHG&DVK)ORZ
 3URMHFWHG%DODQFH6KHHW

55


4

1. Executive Summary

Highlights

1.1. Objectives
7KHREMHFWLYHVIRU$%&Company over the next three years are to:
x
x
x
x

$FKLHYHDQQXDOJURVVUHYHQXHVRIDSSUR[LPDWHO\E\\HDUWKUHH
2EWDLQWZRJOREDOFRPSDQLHVDVFOLHQWV
2EWDLQWZHQW\ILYHVPDOOWRPHGLXPVL]HFRPSDQLHVDVFOLHQWV
+LUHSHRSOHWRDOORZIXUWKHUJURZWK

1.2. Mission
$%&&RPSDQ\
VVROHSXUSRVHLVWRHVWDEOLVKDSURILWDEOHDQGZHOOPDQDJHGFRPSDQ\ZKLOH
EULQJLQJLQFUHDVHGUHYHQXHVDQGKLJKO\WHFKQLFDOMREVWRWKHORFDOFRPPXQLW\

56




1.3. Keys to Success

We believe that our main keys to success include:
x ([FHOOHQFHLQIXOILOOLQJWKHSURPLVHFRPSOHWHO\FRQILGHQWLDOUHOLDEOHWUXVWZRUWK\
expertise and services.
x 'HYHORSLQJQDWLRQZLGHYLVLELOLW\WRJHQHUDWHQHZEXVLQHVVOHDGV
x /HYHUDJLQJIURPDVLQJOHSRRORIH[SHrtise into multiple revenue generation
opportunities: fixed price and hourly intellectual property legal work, technical
authoring, and technical consulting.
x The use of state-of-the-art technology that hi-tech clients have come to expect but that
few law firms actually provide.
:HEHOLHYHWKDWZHFDQPLQLPL]HFHUWDLQULVNIDFWRUVE\
x ,QLWLDOFDSLWDOL]DWLRQRIWKHFRPSDQ\WRVXVWDLQRSHUDWLRQVWKURXJKWKHILUVWWZR\HDUV
x 6WURQJFXVWRPHUEDVHWKURXJKDJJUHVVLYHPDUNHWLQJDQGH[LVWLQJFOLHQWVRIRZQHU
x 6WURQJFRPPXQLW\WLHVDQGLQYROYHPHQW

2. Company Summary
$%&&RPSDQ\LVDQHZFRPSDQ\VROHO\RZQHGDQGRSHUDWHGLQLWLDOO\E\-DQH'RH$VDUHJLVWHUHG
8QLWHG6WDWHVSDWHQWDWWRUQH\-DQH'RHFDQSURYLGHLQWHOOHFWXDOSURSHUW\OHJDOVHUYLFHVDFURVVWKH
8QLWHG6WDWHV$VDUHVSHFWHGDXWKRULW\RQWHFKQRORJ\WRSLFV0V'RHFDQDOVRSURYLGHWHFKQLFDO
services to companies across the globe.
7KXV$%&&RPSDQ\ZLOOIRFXVLQLWLDOO\RQWKHIROORZLQJVHUYLFHV
3URYLGHFOLHQWVDFURVVWKH8QLWHG6WDWHVZLWKintellectual property legal services, including
patents, copyrights, trademarks, trade secrets, licensing, domain name disputes, and litigation.
3URYLGHtechnical services to clients across the globe, including authoring, expert witness services,
consulting, and guest speaking.
-DQH'RHKDVEHHQSURYLGLQJWKHVHVHUYLHVVHSDUDWHO\for the past several years, both as an attorney
employed with a law firm, and separately as an independent technology consulant. These services will
now be combined into a singlHFRPSDQ\$%&&RPSDQ\
$V$%&&RPSDQ\JURZVLWZLOOKLUHDGGLWLRQDOSHRSOe, including paralegals, as well as engineers
for technical writing and consulting positions (preferably from the pool of available engineers in the
local community).

2.1. Company Ownership

$%&&RPSDQ\ZLOOVWDUWRXWDVD6XE&KDSWHU6FRUporation, owned and operatHGE\-DQH'RH

57




2.2. Start-up Summary

2IILFHHTXLSPHQWDQGRIILFHORFDWLRns have already been established previously through the
SHUVRQDOIXQGVDQGFUHGLWRIWKHRZQHU6RWKHVWart-up costs are limited to minor costs plus cash
on hand for reserves.
,WLVHVWLPDWHGWKDWWKHVWDUWXSFRVWVZLOOEHLQFOXGLQJEXVLQHVVFDUGVOHWWHUKHDGOHJDO
PDOSUDFWLFHLQVXUDQFHHWF$QDGGLWLRQDODPRXQWRI0,000 in initial cash is needed to handle
the first few months of operations as sales and accounts receivable play through the cash flow.

Start-up
Requirements
Start-up Expenses
Business Cards, Letterhead, etc.
Malpractice Insurance
Other
Total Start-up Expenses

$500
$1,500
$500
$2,500

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$50,000
$0
$0
$50,000

Total Requirements

$52,500

58



Start-up

3. Services
$%&&RPSDQ\RIIHUVWKHOHJDODQGWHFKQLFDOH[SHUWLVe a company needs to fully exploit the value out
of its intellectual assets and operate successfully in WRGD\
VKLWHFKZRUOG6Hrvices can be performed
on an hourly basis or on a fixed-fee basis.
$VDUHJLVWHUHG8QLWHG6WDWHVSDWHQWDWWRUQH\-DQH'RHFDQSURYLGHLQWHOOHFWXDOSURSHUW\OHJDOVHUYLFHV
DFURVVWKH8QLWHG6WDWHV$VDUHVSHFWHGDXWKRULW\ZRUOGZLGHRQWHFKQRORJ\WRSLFV0V'RHFDQDOVR
provide technical services to companies across the globe.
7KXV$%&&RPSDQ\ZLOOIRFXVLQLWLDOO\RQWKHIROORZLQJVHUYLFHV
1. Provide clients across the United States with intellectual property
legal services:
x
x
x
x
x
x
x

PatentsREWDLQ8QLWHG6WDWHVDQGIRUHLJQSDWHQWVIRUFOLHQWVDQGDGYLVHFOLHQWVRQYDOLGLW\RI
patents of third parties.
Copyrights- obtain copyrights for clients and advise clients on coyprights of third parties.
TrademarksREWDLQ8QLWHG6WDWHVDQGIRUHLJQWUDGHParks for clients and advise clients on
validity of trademarks of third parties.
Trade Secrets - educate clients on how they can protect their trade secrets.
LicensingGUDIWDQGQHJRWLDWHOLFHQVLQJDJUHHPHQWVIRUFRPSXWHUWHFKQRORJ\DQGRU
intellectual property.
Domain Name Disputes - assist clients with domain name disputes to recover domains from
a third party
Litigation - litigate intellectual property related matters for clients.

59



2. Provide technical services to clients across the globe, including:
x
x
x

Expert Witness Services - provide expert witness consulting in intellectual property and
RWKHUOHJDOUHODWHGFDVHVWKDWUHTXLUHDQH[SHUWWRDQDO\]HFRPSXWHUWHFKQRORJ\DQGSURYLGHDQ
opinion on a certain situation.
Consulting - advise clients on how to use technoORJ\LQWKHLURUJDQL]DWLRQWRVROYHD
particular problem, review proposals of third parties and advise clients on validity of third
party proposals.
Guest Speaking / Teaching- speak at technical conferences on technology related topics

4. Market Analysis Summary

$%&&RPSDQ\ZLOOEHIRFXVLQJRQKLJKWHFKQRORJ\PDQXIDFWXUHUVRIFRPSXWHUVRIWZDUHDQG
hardware, services, and networking. These are mostly larger companies, and occasionally individuals
DQGVPDOODQGPHGLXPVL]HGFRPSDQLHV
For our legal services, our most important group of potential customers are in-house legal counsel in
ODUJHUFRUSRUDWLRQV,QKRXVHFRunsel typically are responsible for hiring and managing intellectual
SURSHUW\FRXQVHO)RUVPDOOHUWRPHGLXPVL]HGcompanies, the most important group of potential
customers are the company owners or business managers.
For our technical services, our most important group of potential customers depend on the service:
x
x
x

([SHUW:LWQHVV6HUYLFHV/LWLJDWLRQDWWRUQH\VZKRQHHGWRKLUHDWHFKQRORJ\H[SHUWDUHWKH
most important group of potential customers for this service.
7HFKQRORJ\&RQVXOWLQJ,QIRUPDWLRQ7HFKQRORJ\,70DQDJHUVZLWKLQFRPSDQLHVDUHWKH
most important group of potential customers for this service.
*XHVW6SHDNLQJ(YHQWFRRUGLQDWRUVDUHWKHPRVWLPSRUWDQWJURXSRISRWHQWLDOFXVWRPHUVIRU
this services.

4.1. Market Segmentation

Large software or hardware manufacturer corporations: Our most important market segment
is the large manufacturer of high-technology produFWVVXFKDV0LFURVRIW+HZOHWW3DFNDUGRU
6RQ\7KHVHFRPSDQLHVZLOOKDYHDODUJHYROXPHRILQWHOOHFWXDOSURSHUW\OHJDOSURMHFWVWKDWQHHG
handled by outside counsel.
Individuals and Small to Medium-sized growth companies: particularly in computer software,
KDUGZDUHDQGVRPHUHODWHGKLJKJURZWKILHOGV$%&&RPSDQ\ZLOORIIHUOHJDODQGWHFKQLFDO
services to allow these companies to gain the attention and momentum they need to attract market
share and investors.

60



Market Analysis
Potential Customers
Large Technology
Corporations
Individuals / Small to
Medium Businesses
Total

2005

2006

2007

2008

2009

Growth
5%

100

105

110

116

122

CAGR
5.10%

5%

500

525

551

579

608

5.01%

5.03%

600

630

661

695

730

5.03%

Market Analysis (Pie)

4.2. Target Market Segment Strategy

$VLQGLFDWHGE\WKHSUHYLRXVWDEOHDQG,OOXVWUDWLRQZHPXVWIRFXVRQDIHZKXQGUHGZHOOFKRVHQ
SRWHQWLDOFXVWRPHUVLQWKH8QLWHG6WDWHV7KHVHfew hundred technology companies are the key
FXVWRPHUVIRU$%&&RPSDQ\

4.3. Service Business Analysis

The intellectual property legal industry has hundreds of law firms providing outside counsel
services for large technology corporations. The prices charged by these law firms depend on
WKHLUORFDWLRQZLWKLQWKH8QLWHG6WDWHVDQGWKHVL]HRIWKHILUP)LUPVZLWKPRUHDWWRUQH\VKDYH
KLJKHURYHUKHDGDQGFKDUJHKLJKHUSULFHV/DZfirms located within the mid-west, such as in
Michigan, are able to provide the same patent and intellectual property services for much lower
SULFHVWKDQWKHHDVWDQGZHVWFRDVWILUPV$Vthe stock market has declined, corporatations are
being pressured to drastically reduce legal costs more than ever before. This has opened the

61


10
GRRUVIRUPDQ\VPDOOHUODZILUPVDQGRUODZILUPVORFDWHGLQWKHPLGZHVWWRSHUIRUPOHJDOZRUN
for the larger corporations located on the east and west coasts.
The technology industry has thousands of independent consultants and consulting companies
providing technical consulting services. The prices charged by these companies depend on their
ORFDWLRQZLWKLQWKH8QLWHG6WDWHVDQGWKHW\SHRIWHFKQLFDOZRUNEHLQJUHTXHVWHG

5. Strategy and Implementation Summary

$%&&RPSDQ\ZLOOIROORZDGLIIHUHQWLDWLRQVWUDWHJ\WRDFKLHYHDFRPSHWLWLYHDGYDQWDJHLQWKH
LQWHOOHFWXDOSURSHUW\OHJDOVHUYLFHVPDUNHW%\SURYLGLQJKLWHFKOHJDOVHUYLFHVIRUDORZHUSULFHWKDQ
ZKDWODUJHUFRUSRUDWLRQVW\SLFDOO\VSHQG$%&&RPSany will be able to compete with larger firms on
WKHFRDVWV7KHIDFWWKDW-DQH'RHLVDUHVSHFWHGWHFKQRORJ\H[SHUWJOREDOO\ZLOODOVRGLIIHUHQWLDWH$%&
Company from other law firms who really do not haveLQWHOOHFWXDOSURSHUW\DWWRUQH\VZLWKHTXLYDOHQW
technical expertise.

5.1. Marketing Strategy

$%&&RPSDQ\ZLOOSRVLWLRQLWVHOIDVDTXDOLW\SURYLder of high-tech legal and technical services
IRUH[WUHPHO\FRPSHWLWLYHPLGZHVWSULFHV$%&&RPSDQ\ZLOOXVHDGYHUWLVLQJDVLWVPDLQ
VRXUFHRISURPRWLRQ$Gs placed in the appropriate local and national publications, such as
WKH/RFDO%XVLQHVV-RXUQDO,Q+RXVH&RXQVHO0DJD]LQH(QWUHSUHQHXU0DJD]LQHHWFZLOOKHOS
EXLOGFXVWRPHUDZDUHQHVVRQDQDWLRQDOVFDOH$GVwill also be placed with search engines on the
,QWHUQHW$FFRPSDQ\LQJWKHSULQWDQGHOHFWURQLFDGVZLOOEHDQRIIHUIRUDIUHHZKLWHSDSHUDERXWD
topic of interest to that market segment and an offer for a free consultation.
,WLVLPSRUWDQWWRWKHPDUNHWLQJVWUDWHJ\RI$%&&RPSDQ\WRGHYHORSDQDWWUDFWLYHLPDJHWRWKH
trade. This can be done in a number of ways:
1. Print Advertising.3ULQWDGYHUWLVLQJLVYHU\H[SHQVLYHDQGPXVWEHGRQHFDUHIXOO\$%&
Company will establish an in-house advertising agenF\VRGLVFRXQWVZLOOEHDYDLODEOH7KLV
DJHQF\LVHDV\WRVHWXSDQGUHTXLUHQRWKLQJmore than letterhead and a checking account.
$SSURSULDWHORFDODQGQDWLRQDOSXEOLFDWLRQVZLOOEHFKRVHQIRUWKHWDUJHWPDUNHWEDVHGRQ
DYDLODELOLW\RIUHPQDQWVSDFH5HPQDQWVSDFHFDQEH purchased for a fraction of the cost - such as
$1,000 for an ad that would typically cost $10,000. Once some national exposure has been
DFKLHYHGLQDPDMRUPDJD]LQHVXFKDV(QWUHSUHQHXU0DJD]LQHRU,Q+RXVH&RXQVHO
0DJD]LQH$%&&RPSDQ\ZLOOEHDEOHWRDGYHUWLVH<RX3UREDEO\6DZ8V,Q(QWUHSUHQHXURU
similar slogans and include reprints of the ad as part of the marketing package to give to
prospective clients. Only a few appearances in such national publications will be necessary to
provide extensive leverage and credibility.
2. Online Advertising. Online advertising can be one of the most effective ways to get
SURVSHFWLYHFOLHQWVWRRXUZHEVLWH$%&&RPSDQy will pay to advertise on search engines such
DV*RRJOHDQG061VRWKDWSHRSOHVHDUFKLQJIRUWKHSDUWLFXODUVHUYLFHVRIIHUHGE\$%&
&RPSDQ\ZLOOVHHRXUZHEVLWHLQWKHWRSOLVWLQJV6XFKDGYHUWLVHPHQWVW\SLFDOO\FRVWIURP
several cents to a few dollars per visit. For example, it might cost $2 to show our web site
advertisement in one of the top few spots on google.com when someone searches for "software
SDWHQWDWWRUQH\%XGJHWVZLOOEHHVWDEOLVKHGZLWK the search engine so the price does not exceed
a certain amount that we are willing to spend.

62


11
3. Direct Marketing. ,WLVHVVHQWLDOWRPDUNHWGLUHFWO\WRWKHVHOHFWHGWDUJHWFOLHQWV0DUNHWLQJ
WRWKHVHSULPHSURVSHFWVPXVWEHFDUULHGRXWLQDWKRXJKWIXORUJDQL]HGZD\$SRUWIROLRZLOOEH
created to market directly to these prospects.
4. Participation/Attendance at Trade Shows.$QRWKHULPDJHEXLOGLQJPDUNHWLQJSOR\LV
participating in technology trade shows. These trade shows typically showcase the most
innovative technical products on thHPDUNHWE\YDULRXVFRPSDQLHV+RZHYHUWKHVHWHFKQRORJ\
trade shows could also benefit from a hi-tech legal exhibit with a catchy free gift to peak the
curiosity of those in attendance. Comdex is one example of such a technology trade show when
DQH[KLELWZRXOGEHYHU\YDOXDEOHWRJURZLQJQHZFOLHQWV(YHQLIKDYLQJDQH[KLELWDWVXFKWUDGH
shows would be too expensive, attendance at the trade show would be very valuable to meet new
potential clients.
5. Authoring.$XWKRULQJWHFKQLFDOPDJD]LQHDUWLFOHVDQGZKLWHSDSHUVZLOOSURYLGHDGGLWLRQDO
credibility to prospective clients and will help gain exposure to prospective clients.
6. Networking.,WLVLPSRUWDQWWRUHPDLQDFWLYHLQORFDODQGQDWLRQDOOHJDODQGWHFKQLFDOWUDGH
associations as well as community associations in order to meet new people who may need the
VHUYLFHVRI$%&&RPSDQ\([DPSOHVLQFOXGHWKH6WDWH%DU$VVRFLDWLRQ&RPSXWHU/DZ
$VVRFLDWLRQ1(7'HYHORSHU
V$VVRFLDWLRQDQGFRPPXQLW\FKDULWDEOHRUJDQL]DWLRQV
7. Guest Speaking.*XHVWVSHDNLQJDWOHJDODQGRUWHFKQLFDO conference for hire or for free are
JUHDWZD\VWRJDLQDGGLWLRQDOH[SRVXUHDQGFUHGLELOLW\([DPSOHVLQFOXGHVSHDNLQJDWXQLYHUVLWLHV
about legal topics, speaking at technology conferences about technical conferences.

5.2. Sales Strategy

7KHVDOHVIRUHFDVWLVEDVHGRQWKHH[LVWLQJFOLHQWEDVHRI-DQH'RHDQGKHUDELOLW\WRJHQHUDWHQHZ
VDOHVEDVHGRQKHUFRQWDFWV%\EULQJLQJWRJHWKHU0V'RH
VLQWHOOHFWXDOSURSHUW\OHJDOH[SHULHQFH
and her technology consulting experience, the company will be able to generate sales in both
DUHDV)XUWKHUPRUHWKHFRPSDQ\
VJURZLQJPDrketing program will generate the growth the
company needs to survive.

5.2.1.

Sales Forecast

The intellectual property legal services are the primary focus of$%&&RPSDQ\7KH
WHFKQRORJ\FRQVXOWLQJLVLQWHQGHGWRNHHS0V'RHVKDUSLQWHFKQRORJ\PDLQWDLQKHU
reputation as a technology expert, and to provide extensive credibility to legal clients.
These numbers are conservative estimates that are based on the historical performance of
-DQH'RHWKURXJKKHUHPSOR\PHQWZLWKWKHIRUPHUODZILUPDQGWKURXJKKHURZQ
independent consulting technology efforts. The historical data used in these sales
forecasts include:
x
x

$QDYHUDJHRISHU\HDULQJURVVDQQXDOOHJDOUHYHQXHJHQHUDWHGE\
-DQH'RHWKURXJKWKHIRUPHUODZILUPLQWKHSULRUWKUHH\HDUV
SHU\HDULQDQQXDOWHFKQRORJ\FRQVXOWLQJUHYHQXHJHQHUDWHGE\
-DQH'RHWKURXJKKHUWHFKQRORJ\FRQVXOWLQJLQWKHSULRUWKUHH\HDUV

63


12
7KHVHQXPEHUVDUHDOVREDVHGRQHVWLPDWHVRIWKHDPRXQWRIZRUNOLNHO\WREHUHTXHVWHG
E\H[LVWLQJFOLHQWVRI-DQH'RH
To account for the startup period, the estimatesXVHGIRUWKHILUVW\HDUDUHEDVHGRQMXVW
RIJURVVUHYHQXHVIURPSULRU\HDUV+RZHYHULIKLVWRU\UHSHDWVLWVHOI0V'RHZLOO
earn more in gross revenues than these conservative estimates show.

Sales Forecast
Sales
Intellectual Property Legal
Services
Technical
Consulting/Teaching/Speaking
Book Authoring/Technical
Reviewing
Total Sales
Direct Cost of Sales
Subtotal Direct Cost of Sales

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

$220,000

$275,000

$325,000

$375,000

$425,000

$3,000

$15,000

$15,000

$20,000

$20,000

$12,000

$15,000

$15,000

$15,000

$15,000

$235,000

$305,000

$355,000

$410,000

$460,000

FY 2006
$0
$0
$0

FY 2007
$0
$0
$0

FY 2008
$0
$0
$0

FY 2009
$0
$0
$0

FY 2010
$0
$0
$0

Sales Monthly

64



Sales by Year

6. Web Plan Summary

Our web site (www.yourdomainhere.com) is an opportunity to offer information on our services as
well as to provide free information that is useful to visitors whether or not they want to hire us.
$VDIHZH[DPSOHVWKH$%&&RPSDQ\ZHEVLWHZLOOSURYLGH
x
x
x
x
x

,QIRUPDWLRQDERXWWKHOHJDODQGWHFKQLFDOVHUYLFHVSURYLGHGE\$%&&RPSDQ\
5HFHQWQHZVDERXW-DQH'RHDQG$%&&RPSDQ\
Useful articles and other whitepapers that visitors can download about protecting their
LQWHOOHFWXDOSURSHUW\DVVHWVDQGXVLQJWHFKQRORJ\WRLWVIXOOHVWLQWKHLURUJDQL]DWLRQ
$IHDWXUHWRDOORZFOLHQWVWRORJLQWRDVHFXUH area of the site so they can access their files
electronically.
$IHDWXUHWRDOORZYLVLWRUVWRVLJQXSIRUHOHFWURQLFQHZVOHWWHUVDERXWOHJDODQGRUWHFKQLFDO
topics.

The web site will be promoted on all of marketing materials. We will also promote our web site in all
print and online advertisements, as well as on various search engines.
:HDOVRSODQWRSD\IRUDGYHUWLVLQJRQ*RRJOHDQGRWKHUSRSXODUVHDUFKHQJLQHVIRUFHUWDLQNH\ZRUGV
related to our services so readers looking for our services will find our site more easily.
6LQFH-DQH'RHLVDWHFKQRORJ\JXUXDOOZHEVLWHcreation and maintenance will be performed in-house
for no cost.

65


14
7. Management Summary
$%&&RPSDQ\ZLOOEHRZQHGDQGRSHUDWHGE\0V-DQH'RH,QLWLDOO\$%&&RPSDQ\ZLOOKDYHQR
employees.
([LVWLQJFOLHQWVRI-DQH'RHZLOOEHEURXJKWWRWKe company. The experience and reputation of Jane
'RHDVDQDWWRUQH\DQGWHFKQRORJ\H[SHUWZLOODOVREHXVHGWRDWWUDFWQHZFOLHQWV

7.1. Personnel Plan

-DQH'RHZLOOGUDZDVDODU\IURPWKHFRPSDQ\LQRUGHUWRDOORZKHUWRPHHWKHUFXUUHQWILQDQFLDO
REOLJDWLRQVDQGWRREWDLQWKHWD[EHQHILWV,QWKHIXWXUHDGGLWLRQDOHPSOR\HHVPD\EHKLUHGWR
VXSSRUWWKHFRPSDQ\
VJURZWKDVUHTXLUHG
The following table shows the minimum withdrawals thDW0V'RHSODQVWRWDNH6LQFHWKLVLVDQ
6&RUSRUDWLRQDGGLWLRQDOGLVWULEXWLRQVZLOODOso be taken as business performance allows.

Personnel Plan

Total People

FY 2006
$108,000
$0
0

FY 2007
$120,000
$0
1

FY 2008
$120,000
$0
1

FY 2009
$120,000
$0
1

FY 2010
$120,000
$0
1

Total Payroll

$108,000

$120,000

$120,000

$120,000

$120,000

Jane Doe, Owner

8. Financial Plan
$%&&RPSDQ\KDVDVROLGILQDQFLDOSODQWRFDUU\LWWKURXJKHYHQLIWLPHVDUHWRXJKHUWKDQH[SHFWHG

8.1. Start-up Funding

The start-up costs are to be financed by the owQHUV
SHUVRQDOFDVKRQKDQGDQGKRPHHTXLW\OLQH
RIFUHGLWDQGSRVVLEO\E\DEDQNOLQHRIFUHGLW%\having access to 
$%&&RPSDQ\ZLOOEHDEOHWRPDNHLWWKURXJKDQ\cash flow delays and start-up hurdles for a
couple of years.

66



Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$2,500
$50,000
$52,500
$0
$50,000
$97,500
$147,500
$147,500

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities
Total Liabilities

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

Capital
Planned Investment
Owner
Bank
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

$50,000
$0
$50,000
($2,500)
$47,500

Total Capital and Liabilities

$147,500

Total Funding

$150,000

8.2. Break-even Analysis

Important notice concerning Break-even Analysis
7KHIROORZLQJFKDUWVKRZVWKDWZHQHHGWRSURGXFHIURPVDOHVSHUPRQWKWREUHDNHYHQ
This amount includes paying the owner a salary that will allow her to meet all of her current
living expenses without tapping into any of the lines of credit or cash reserves available.
We believe that we will achieve a higher monthly JURVVVDOHVYROXPHWKDQUHTXLUHGE\WKLVEUHDN
even chart, given the present representations being made by existing clients of their expected
level of work in the upcoming two years, and given prior history.

67



Break-even Analysis
Monthly Revenue Break-even

$12,275

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$12,275

Break-even Analysis

8.3. Projected Profit and Loss

Outlined below, and in the table and chart, are some of the intrinsic facetVRIWKHSURMHFWHGSURILW
DQGORVVIRU$%&&RPSDQ\
x The amount for cost of sales is listeGDV]HUREHFDXVHWKHPLQLPXPVDODU\
GLVWULEXWLRQVDQGEXVLQHVVH[SHQVHVDUHVHSDUDWHO\LWHPL]HG
x 0LQLPXPZLWKGUDZDOVDUHVKRZQIRUWKHVDODU\RI-DQH'RHDWWKHPLQLPXPOHYHOWR
DOORZKHUWRPDLQWDLQKHUFXUUHQWVWDQGDUGRIOLYLQJ6LQFHWKLVLVD6&RUSRUDWLRQ
additional profits can be paid to her over and above this salary when cash flow warrants
it.
x 7KHYDULRXVH[SHQVHVIRURIILFHVSDFHDQGXWLOLWLHVDUHSURMHFWHGEDVHGRQSUHVHQWDFWXDO
expenses.
x The expenses for technology subscriptions are based on actual costs of the services that
will need to be obtained from third parties to operate the law practice. For example, the
WKLUGSDUW\V\VWHPIRUPDQDJLQJOHJDOFDVHVFRVWVSHUPRQWK/HJDOUHVHDUFK
subscriptions and virtual telephone services are also included in this cost.

68




Pro Forma Profit and Loss

FY 2006
$235,000
$0
$0
-----------$0

FY 2007
$305,000
$0
$0
-----------$0

FY 2008
$355,000
$0
$0
-----------$0

FY 2009
$410,000
$0
$0
-----------$0

FY 2010
$460,000
$0
$0
-----------$0

$235,000
100.00%

$305,000
100.00%

$355,000
100.00%

$410,000
100.00%

$460,000
100.00%

$108,000
$12,000
$0
$10,500
$6,000
$2,400
$6,000

$120,000
$24,000
$0
$10,800
$6,000
$2,400
$6,000

$120,000
$24,000
$0
$11,000
$6,000
$2,400
$6,000

$120,000
$24,000
$0
$11,300
$6,000
$2,400
$6,000

$120,000
$24,000
$0
$11,600
$6,000
$2,400
$6,000

$2,400
-----------$147,300

$2,400
-----------$171,600

$2,400
-----------$171,800

$2,400
-----------$172,100

$2,400
-----------$172,400

Profit Before Interest and Taxes

Interest Expense
Taxes Incurred

$87,700
$10,000
$23,310

$133,400
$10,000
$37,020

$183,200
$10,000
$51,960

$237,900
$10,000
$68,370

$287,600
$10,000
$83,280

Net Profit
Net Profit/Sales

$54,390
23.14%

$86,380
28.32%

$121,240
34.15%

$159,530
38.91%

$194,320
42.24%

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Office Mortgage
Utilities
Taxes and Insurance
Subscription Fees (Web-Based
Case Management, Legal
Research, Virtual Phone Number)
Other
Total Operating Expenses

69



Profit Monthly

Profit Yearly

70



Gross Margin Monthly

Gross Margin Yearly

71


20
8.4. Projected Cash Flow
$VFDQEHVHHQIURPWKH&DVK)ORZFKDUWDQGWDEOHEHORZ$%&&RPSDQ\ZLOOKDYHHQRXJKFDVK
and credit available to carry it through some URXJKSHULRGV$VDQ6&RUSRUDWLRQZLWKQR
HPSOR\HHVWKHFRPSDQ\KDVYHU\IHZPDQGDWRU\H[SHQVHVRWKHUWKDQWKHVDODU\UHTXLUHPHQWVRI
the owner and the office mortgage and utilities.

Cash

72


21
Pro Forma Cash Flow
FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

$117,500
$97,833
$215,333

$152,500
$146,642
$299,142

$177,500
$173,316
$350,816

$205,000
$200,397
$405,397

$230,000
$225,816
$455,816

$0

$0

$0

$0

$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0
$0
$0
$215,333

$0
$0
$0
$0
$299,142

$0
$0
$0
$0
$350,816

$0
$0
$0
$0
$405,397

$0
$0
$0
$0
$455,816

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

$108,000
$66,623
$174,623

$120,000
$96,475
$216,475

$120,000
$112,512
$232,512

$120,000
$129,092
$249,092

$120,000
$144,426
$264,426

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

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 (interestfree)
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
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

$0

$0

$0
$0
$0
$174,623

$0
$0
$0
$216,475

$0
$0
$0
$232,512

$0
$0
$0
$249,092

$0
$0
$0
$264,426

Net Cash Flow

Cash Balance

$40,710
$188,210

$82,666
$270,877

$118,304
$389,181

$156,305
$545,486

$191,390
$736,875

73


22

8.5. Projected Balance Sheet

7KHEDODQFHVKHHWLVTXLWHVROLG:HGRQRWSURMHFWDQ\UHDOWURXEOHPHHWLQJRXUGHEWREOLJDWLRQV
DVORQJDVZHFDQDFKLHYHRXUVSHFLILFREMHFWLYHV

Pro Forma Balance Sheet

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets

$188,210
$19,667
$0
$207,877

$270,877
$25,525
$0
$296,401

$389,181
$29,709
$0
$418,890

$545,486
$34,312
$0
$579,798

$736,875
$38,496
$0
$775,372

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$0
$0
$0
$207,877

$0
$0
$0
$296,401

$0
$0
$0
$418,890

$0
$0
$0
$579,798

$0
$0
$0
$775,372

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$5,987
$100,000
$0
$105,987

$8,131
$100,000
$0
$108,131

$9,380
$100,000
$0
$109,380

$10,758
$100,000
$0
$110,758

$12,012
$100,000
$0
$112,012

Long-term Liabilities
Total Liabilities

$0
$105,987

$0
$108,131

$0
$109,380

$0
$110,758

$0
$112,012

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$50,000
($2,500)
$54,390
$101,890
$207,877

$50,000
$51,890
$86,380
$188,270
$296,401

$50,000
$138,270
$121,240
$309,510
$418,890

$50,000
$259,510
$159,530
$469,040
$579,798

$50,000
$419,040
$194,320
$663,360
$775,372

Net Worth

$101,890

$188,270

$309,510

$469,040

$663,360

Assets

Liabilities and Capital

74



Sales Forecast
Sales
Intellectual Property Legal
Services
Technical
Consulting/Teaching/Speaking
Book Authoring/Technical
Reviewing
Total Sales
Direct Cost of Sales
Subtotal Direct Cost of Sales

0%

0%

0%

Nov
$0
$0
$0

$21,000

$6,000

$0

$15,000

Nov

Dec
$0
$0
$0

$15,000

$0

$0

$15,000

Dec

Jan
$0
$0
$0

$15,000

$0

$0

$15,000

Jan

Feb
$0
$0
$0

$16,000

$0

$1,000

$15,000

Feb

Mar
$0
$0
$0

$26,000

$6,000

$0

$20,000

Mar

Apr
$0
$0
$0

$20,000

$0

$0

$20,000

Apr

May
$0
$0
$0

$21,000

$0

$1,000

$20,000

May

Jun
$0
$0
$0

$20,000

$0

$0

$20,000

Jun

Jul
$0
$0
$0

$20,000

$0

$0

$20,000

Jul

Aug
$0
$0
$0

$21,000

$0

$1,000

$20,000

Aug

Sep
$0
$0
$0

$20,000

$0

$0

$20,000

Sep

Oct
$0
$0
$0

$20,000

$0

$0

$20,000

Oct

75



24
Personnel Plan
Jane Doe, Owner
Total People
Total Payroll

0%
0%
$9,000

Nov
$9,000
$0
1
$9,000

Dec
$9,000
$0
0

$9,000

Jan
$9,000
$0
0

$9,000

Feb
$9,000
$0
0

$9,000

Mar
$9,000
$0
0

$9,000

Apr
$9,000
$0
0

$9,000

May
$9,000
$0
0

$9,000

Jun
$9,000
$0
0

$9,000

Jul
$9,000
$0
0

$9,000

Aug
$9,000
$0
0

$9,000

Sep
$9,000
$0
0

$9,000

Oct
$9,000
$0
0

76

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$21,000
100.00%

Nov
$21,000
$0
$0
-----------$0

$2,750

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$15,000
100.00%

Dec
$15,000
$0
$0
-----------$0

$833
$575

$2,750

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$15,000
100.00%

Jan
$15,000
$0
$0
-----------$0

$2,042
12.76%

$833
$875

$3,750

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$16,000
100.00%

Feb
$16,000
$0
$0
-----------$0

$9,042
34.78%

$833
$3,875

$13,750

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$26,000
100.00%

Mar
$26,000
$0
$0
-----------$0

$4,842
24.21%

$833
$2,075

$7,750

$200
-----------$12,250

$9,000
$1,000
$0
$850
$500
$200
$500

$20,000
100.00%

Apr
$20,000
$0
$0
-----------$0

$5,507
26.22%

$833
$2,360

$8,700

$200
-----------$12,300

$9,000
$1,000
$0
$900
$500
$200
$500

$21,000
100.00%

May
$21,000
$0
$0
-----------$0

$4,807
24.03%

$833
$2,060

$7,700

$200
-----------$12,300

$9,000
$1,000
$0
$900
$500
$200
$500

$20,000
100.00%

Jun
$20,000
$0
$0
-----------$0

$4,807
24.03%

$833
$2,060

$7,700

$200
-----------$12,300

$9,000
$1,000
$0
$900
$500
$200
$500

$20,000
100.00%

Jul
$20,000
$0
$0
-----------$0

$5,507
26.22%

$833
$2,360

$8,700

$200
-----------$12,300

$9,000
$1,000
$0
$900
$500
$200
$500

$21,000
100.00%

Aug
$21,000
$0
$0
-----------$0

$4,80
24.03%

$83
$2,06

$7,70

$20
----------$12,30

$9,00
$1,00
$
$90
$50
$20
$50

$20,00
100.00%

Se
$20,00
$
$
----------$

Sales
Direct Cost of Sales
Other Costs of Sales

$8,750

$833
$575

$1,342
8.94%

Total Operating
Expenses

Expenses
Payroll
Marketing/Promotion
Depreciation
Office Mortgage
Utilities
Taxes and Insurance
Subscription Fees
(Web-Based Case
Management, Legal
Research, Virtual
Phone Number)
Other

Gross Margin
Gross Margin %

Total Cost of Sales

$833
$2,375

$1,342
8.94%

15%

Profit Before Interest

and Taxes
Interest Expense
Taxes Incurred

$5,542
26.39%

77

Net Profit
Net Profit/Sales

Pro Forma Profit and Loss









0.00%

Pro Forma Cash Flow

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
(interestfree)
New Longterm
Liabilities
Sales of
Other
Current
Assets
Sales of
Long-term
Assets
New
Investment
Received
Subtotal
Cash
Received
Expenditures
Expenditures

Nov

$10,500

$0

$0

$0

$0

$0

$0

$0

$10,500

$10,500
$0

Nov

Dec

$7,850

$0

$0

$0

$0

$0

$0

$0

$7,850

$7,500
$350

Dec

Jan

$17,900

$0

$0

$0

$0

$0

$0

$0

$17,900

$7,500
$10,400

Jan

Feb

$15,500

$0

$0

$0

$0

$0

$0

$0

$15,500

$8,000
$7,500

Feb

Mar

$20,517

$0

$0

$0

$0

$0

$0

$0

$20,517

$13,000
$7,517

Mar

Apr

$18,167

$0

$0

$0

$0

$0

$0

$0

$18,167

$10,000
$8,167

Apr

May

$23,400

$0

$0

$0

$0

$0

$0

$0

$23,400

$10,500
$12,900

May

Jun

$20,017

$0

$0

$0

$0

$0

$0

$0

$20,017

$10,000
$10,017

Jun

Jul

$20,483

$0

$0

$0

$0

$0

$0

$0

$20,483

$10,000
$10,483

Jul

Aug

$20,500

$0

$0

$0

$0

$0

$0

$0

$20,500

$10,500
$10,000

Aug

Sep

$20,017

$0

$0

$0

$0

$0

$0

$0

$20,017

$10,000
$10,017

Sep

Oct

$20,483

$0

$0

$0

$0

$0

$0

$0

$20,483

$10,000
$10,483

Oct

78



from
Operations
Cash
spending
Bill
Payments
Subtotal
Spent on
Operations
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
Net Cash
Flow
Cash
Balance

$148,785

$1,285

$0
$9,215

$0

$0

$0

$0

$0

$0

$9,215

$215

$9,000

$141,236

($7,548)

$0
$15,398

$0

$0

$0

$0

$0

$0

$15,398

$6,398

$9,000

$145,478

$4,242

$0
$13,658

$0

$0

$0

$0

$0

$0

$13,658

$4,658

$9,000

$147,310

$1,832

$0
$13,668

$0

$0

$0

$0

$0

$0

$13,668

$4,668

$9,000

$153,768

$6,458

$0
$14,058

$0

$0

$0

$0

$0

$0

$14,058

$5,058

$9,000

$155,036

$1,268

$0
$16,898

$0

$0

$0

$0

$0

$0

$16,898

$7,898

$9,000

$163,267

$8,231

$0
$15,170

$0

$0

$0

$0

$0

$0

$15,170

$6,170

$9,000

$167,800

$4,533

$0
$15,483

$0

$0

$0

$0

$0

$0

$15,483

$6,483

$9,000

$173,090

$5,290

$0
$15,193

$0

$0

$0

$0

$0

$0

$15,193

$6,193

$9,000

$178,387

$5,297

$0
$15,203

$0

$0

$0

$0

$0

$0

$15,203

$6,203

$9,000

$182,920

$4,533

$0
$15,483

$0

$0

$0

$0

$0

$0

$15,483

$6,483

$9,000

$188,210

$5,290

$0
$15,193

$0

$0

$0

$0

$0

$0

$15,193

$6,193

$9,000

79





$0

$100,000

$0

$100,000

$0

$147,500

$0

$0

$0

$147,500

$0

$147,500
$0

$106,243

$0

$106,243

$0

$100,000

$6,243

Nov

$159,285

$0

$0

$0

$159,285

$0

$148,785
$10,500

Nov

$104,503

$0

$104,503

$0

$100,000

$4,503

Dec

$158,886

$0

$0

$0

$158,886

$0

$141,236
$17,650

Dec

$104,503

$0

$104,503

$0

$100,000

$4,503

Jan

$160,228

$0

$0

$0

$160,228

$0

$145,478
$14,750

Jan

$104,793

$0

$104,793

$0

$100,000

$4,793

Feb

$162,560

$0

$0

$0

$162,560

$0

$147,310
$15,250

Feb

$107,693

$0

$107,693

$0

$100,000

$7,693

Mar

$174,501

$0

$0

$0

$174,501

$0

$153,768
$20,733

Mar

$105,953

$0

$105,953

$0

$100,000

$5,953

Apr

$177,603

$0

$0

$0

$177,603

$0

$155,036
$22,567

Apr

$106,277

$0

$106,277

$0

$100,000

$6,277

May

$183,434

$0

$0

$0

$183,434

$0

$163,267
$20,167

May

$105,987

$0

$105,987

$0

$100,000

$5,987

Jun

$187,950

$0

$0

$0

$187,950

$0

$167,800
$20,150

Jun

$105,987

$0

$105,987

$0

$100,000

$5,987

Jul

$192,757

$0

$0

$0

$192,757

$0

$173,090
$19,667

Jul

$106,277

$0

$106,277

$0

$100,000

$6,277

Aug

$198,554

$0

$0

$0

$198,554

$0

$178,387
$20,167

Aug

$105,987

$0

$105,987

$0

$100,000

$5,987

Sep

$203,070

$0

$0

$0

$203,070

$0

$182,920
$20,150

Sep

$105,987

$0

$105,987

$0

$100,000

$5,987

Oct

$207,877

$0

$0

$0

$207,877

$0

$188,210
$19,667

Oct

Starting
Balances

$100,000

Pro Forma Balance Sheet

Assets
Current
Assets
Cash
Accounts
Receivable
Other
Current
Assets
Total
Current
Assets
Long-term
Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets
Liabilities
and Capital
Current
Liabilities
Accounts
Payable
Current
Borrowing
Other
Current
Liabilities
Subtotal
Current
Liabilities
Long-term
Liabilities
Total
Liabilities

80



Paid-in
Capital
Retained
Earnings
Earnings
Total Capital
Total
Liabilities
and Capital
Net Worth

$47,500

$0
$47,500
$147,500

($2,500)

$50,000

$53,042

$5,542
$53,042
$159,285

($2,500)

$50,000

$54,383

$6,883
$54,383
$158,886

($2,500)

$50,000

$55,725

$8,225
$55,725
$160,228

($2,500)

$50,000

$57,767

$10,267
$57,767
$162,560

($2,500)

$50,000

$66,808

$19,308
$66,808
$174,501

($2,500)

$50,000

$71,650

$24,150
$71,650
$177,603

($2,500)

$50,000

$77,157

$29,657
$77,157
$183,434

($2,500)

$50,000

$81,963

$34,463
$81,963
$187,950

($2,500)

$50,000

$86,770

$39,270
$86,770
$192,757

($2,500)

$50,000

$92,277

$44,777
$92,277
$198,554

($2,500)

$50,000

$97,083

$49,583
$97,083
$203,070

($2,500)

$50,000

$101,890

$54,390
$101,890
$207,877

($2,500)

$50,000

81