Professional Documents
Culture Documents
Farm Business Plan1
Farm Business Plan1
Business Plan
INSERT IMAGE/LOGO
[YOUR NAME]
[YOUR ADDRESS]
[YOUR CITY], [YOUR STATE/PROVINCE]
[YOUR ZIP/POSTAL CODE]
[YOUR PHONE NUMBER]
[YOUR EMAIL@YOURCOMPANY.COM]
Table of Contents
Table of Contents
Chart: Milestones................................................................................................................12
7.0 Management Summary........................................................................................................12
7.1 Personnel Plan..................................................................................................................12
Table: Personnel..................................................................................................................13
8.0 Financial Plan.......................................................................................................................13
8.1 Start-up Funding...............................................................................................................13
Table: Start-up Funding.......................................................................................................13
8.2 Important Assumptions.....................................................................................................14
8.3 Break-even Analysis.........................................................................................................14
Table: Break-even Analysis.................................................................................................14
Chart: Break-even Analysis.................................................................................................15
8.4 Projected Profit and Loss..................................................................................................15
Table: Profit and Loss..........................................................................................................16
Chart: Profit Monthly............................................................................................................17
Chart: Profit Yearly..............................................................................................................17
Chart: Gross Margin Monthly..............................................................................................18
Chart: Gross Margin Yearly.................................................................................................18
8.5 Projected Cash Flow.........................................................................................................19
Table: Cash Flow.................................................................................................................19
Chart: Cash.........................................................................................................................20
8.6 Projected Balance Sheet..................................................................................................20
Table: Balance Sheet..........................................................................................................21
8.7 Business Ratios................................................................................................................21
Table: Ratios........................................................................................................................21
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Profit and Loss...................................................................................................................3
Table: Cash Flow..........................................................................................................................4
Table: Balance Sheet....................................................................................................................5
Chart: Highlights
INCLUDEPICTURE "ooxWord://word/media/image2.emf" \* MERGEFORMATINET
1.1 Objectives
The objectives of [YOUR COMPANY NAME] are:
1.2 Mission
[YOUR COMPANY NAME] will develop into the most valuable provider of commercial colony bees for the
pollination of agricultural crops and protection of the natural ecosystem in [YOUR COUNTRY] and globally by
providing a robust bee population that provides optimal pollination services to a diverse range of horticultural
crops.
1.3 Keys to Success
The key to the success of [YOUR COMPANY NAME] as the premier provider of quality bee pollination
services are:
The current demand for the biggest insect migration in the country in order to pollinate the billionpound California almond crop, which is among the State's most valuable agricultural product, which is
only one of a vast number of crops in need of pollination.
The unfortunate global edge of extinction of the most important pollinator, the bee population, essential to
the fertilization of agricultural crops.
Decades of beekeeping experience training and education.
A commitment to the service of pollinating the nation's crops and reestablishing the Country's bee
population.
Start-up
Requirements
Start-up Expenses
Bee Boxes
Bee supplies
Honey supplies
Rent
Bee suits
Utilities
Total Start-up Expenses
$35,000
$1,302
$1,582
$1,764
$340
$588
$40,576
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$59,424
$0
$580,000
$639,424
Total Requirements
$680,000
Chart: Start-up
INCLUDEPICTURE "ooxWord://word/media/image3.emf" \* MERGEFORMATINET
Corporate farms account for only 3% of U.S. farms and 90% of those are family owned. Many of the
countrys largest agricultural enterprises are family owned. Likewise, many farm families have formed modestsized corporations to take advantage of legal and accounting benefits of that type of business enterprise.
Native bees provide free pollination services and are often specialized for foraging on particular flowers, such
as squash, berries or orchard crops. This specialization results in more efficient pollination and the production
of larger and more abundant fruit from certain crops (Tepedino, 1981; Bosch and Kemp, 2001; Javorek et. al.,
2002). The pollination done by native bees contributes an estimated $3 billion worth of crop production
annually to the U.S. economy.
[YOUR COMPANY NAME] will target the 960,000 people in [YOUR COUNTRY] claiming farming as their
principal occupation.
4.1 Market Segmentation
Farmers of specialty crops such as almonds, apples, blackberries, blueberries, cherries, cranberries, pears,
plums, squash, tomatoes and watermelons require bee pollination for the production of their crops. Oil and
biofuel crops requiring bee pollination include canola and sunflower. Even meat and dairy industries are
dependent on bee pollination for the production of forage seed such as alfalfa and clover.
Ironically, the farms that need bees the most are a big part of problem. Giant weed-free farms that destroy
habitat and use a lot of pesticides are the worst offenders, Thorp says, and have helped drive some bees to
edge of extinction.
Commercial beekeeping can be very lucrative," says Johnson, who is also vice president of the California
State Beekeepers Association. Farmers in the United States pay about $150 million a year to rent hives, and
demand is growing.
More than a million hives will pour in to the California almond orchards. The almond industry is booming, and
growers expect they'll need closer to 2 million hives to pollinate all the new trees that will start bearing nuts by
2010. That means 80 percent of the approximately 2.3 million commercial bee colonies that exist now in the
United States will have to travel to the California orchards just to meet demand.
Table: Market Analysis
Market Analysis
Potential Customers
U.S. Farmers
Other
Total
Growth
1%
0%
1.00%
Year 1
Year 2
Year 3
Year 4
Year 5
960,000
0
960,000
969,600
0
969,600
979,296
0
979,296
989,089
0
989,089
998,980
0
998,980
CAGR
1.00%
0.00%
1.00%
customer satisfaction survey results and candid testimonials. The company goal is to rank high for preferred
keywords on the main search engines in "organic" or "natural" searches and increase search engine
optimization by writing a keyword rich title. The company will submit the website to key directories. The
company will also dramatically increase visibility by writing bee keeping and pollination related articles and
distribute them to editors as free content for e-mail newsletters or websites requesting that a link to the
company website and a one-line description of company offerings be included with the article.
It is projected that the company website will become fully operational within three months and some or all of
the site construction will be implemented by management when feasible unless management determines the
cost of a professional is justified.
5.2 Development Requirements
[YOUR COMPANY NAME] will utilize an online website builder for the establishment of the Company's
website and user interface which the Company expects to establish within thirty days of receipt of funding.
The website will be an ongoing company project and will be updated as service offerings are extended
and modified and as customer testimonials and survey results are received.
6.0 Strategy and Implementation Summary
The primary sales and marketing strategy for [YOUR COMPANY NAME] consists of the following:
1. To provide an unparalleled pollination service to farmers for the production of fruits and vegetables in
[YOUR COUNTRY].
2. To establish a loyal following of farmers based on a high level of customer satisfaction.
3. To provide the highest quality pollination at the most competitive price.
4. To establish and maintain an extensive database of farmers for marketing purposes.
[YOUR COMPANY NAME] has clearly defined the target market and has differentiated itself by offering
a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established with an
implementation plan designed to ensure the goals set forth are achieved.
6.1 SWOT Analysis
The SWOT analysis aids in displaying the internal strengths and weaknesses that [YOUR COMPANY NAME]
must address. It allows us to examine the opportunities presented as well as its potential threats. The
Company's strength will help it to succeed and strengths are valuable, but it is also important to realize the
weaknesses the Company must address which include the lack of funding to expand and grow the
business. The Company's strengths will help it capitalize on emerging opportunities which include, but are not
limited to the fact that [YOUR COMPANY NAME] has established a name for itself within the community by
providing excellence in the production and sustenance of the bee population as well as the production of
organic honey and has established itself as a quality provider of service to those in need. The Company's
focus is to expand upon this base by increasing customer awareness through the use of social
network advertising, cultivated agricultural relationships and the creation of a website featuring the
company's pollination services to familiarize the general public and increase visibility. The combination of
these efforts along with an increased visibility will ensure a greater market share going forward. Threats
that the company should be aware of include, the existing economically challenged financial environment we
all presently face.
6.1.1 Strengths
[YOUR COMPANY NAME] intends to distinguish itself as a leader in the agricultural pollination industry by not
only providing service to farmers in need of crop pollination but by providing an essential global environmental
service in order to reestablish the bee population in this country . Company production of [YOUR COUNTRY]
bee population will account for a large part of its growth as the nation continues its recognition for the need
of support efforts to produce and sustain crops to feed the population of our nation, reducing our dependency
on imported fruits and vegetables and increasing the ability of our country to feed itself.
6.1.2 Weaknesses
The weakness facing [YOUR COMPANY NAME] is the lack of funding to develop and sustain itself to
profitability.
6.1.3 Opportunities
The opportunities presented to [YOUR COMPANY NAME] are the immediate demand for bees. According to
answers.com over seventy five percent of all plants need birds, bees, and bats, as well as other creatures, for
pollination. Unfortunately there has been an alarming worldwide reduction in the number of honeybees over
the past few years. The reasons are familiar: loss of habitat, lack of nectar, and the use of pesticides are all
thought to be factors. There are some 25,000 known species of bees around the world, but some of them are
nearing extinction.
Millions of the insects have disappeared and their whereabouts are unknown. Scientists have coined a phrase
for the problem: Colony Collapse Disorder or CCD. There are signs that one of the problems the bees face is
a disease that resembles HIV/AIDS in humans. With weakened immune systems, the bees are incapable of
warding off disease. Some have even suggested that the disappearances may be caused by the increased
use of cell phones and cell phone towers with something about the frequencies disorientating the bee's
navigation system.*
Like wild bees, commercially raised bees are in danger. Farmed honeybee stocks in [YOUR COUNTRY] have
declined by 39 percent since the arrival of exotic mites in the 1980s, according to the new report from the
National Academies. Johnson says most keepers are losing 30 to 40 percent of their hives each year to mites
and starvation, which supports the need for an increase in the production and maintenance of the bee
population by [YOUR COMPANY NAME].
6.1.4 Threats
The threat faced by [YOUR COMPANY NAME] is the lack of funding to finance the necessities required to
expand and sustain the development of a substantial bee population.
6.2 Competitive Edge
[YOUR COMPANY NAME] maintains the competitive edge of no bee pollination service competition in the
area and the current demand for an increase in the bee population for fertilization purposes ensures the
Company's position.
6.3 Marketing Strategy
Escalating public interest in the newest communication devices is well documented and has become an
important part of everyday life for virtually every age group and ethnic background. Modern communication
methods such as texting, emailing, and the use of social websites, blogs, and sophisticated company
websites must be an integral part of a company's marketing strategy for it to become and remain successful.
Every effort should be exhausted to develop printed and present public marketing materials in an identical
and consistent manner. Company "branding" defines companies with the use of advertisements, flyers,
business cards, letterhead, forms, marketing materials, and the company website all having identical design,
color, logo, and appearances. With the use of company branding in early stages, the public immediately
identifies and recognizes a marketing piece as belonging to a company once sufficiently exposed.
Not more than 10% of annual gross sales will be allocated to the marketing budget and regardless of
what type of marketing campaign is developed; management will make a conscious effort to research and
gather data supporting and testing the campaign, and analyze directly related expenses with potential profit to
determine cost justification.
Marketing research and the compilation of data will include the development and maintenance of a
customer information database that will be used for email, text, telephone or direct mail advertising
campaigns.
Future consideration will be given to any economical marketing strategies that assist in obtaining referral
business through verbal advertising, and converting new customers into loyal repetitive ones.
6.4 Sales Strategy
[YOUR COMPANY NAME] will lend its population to farmers requiring pollination services throughout the
country optimizing visibility and order processing using advanced forms of internet advertising, agricultural
and horticultural media, and environmental agencies, increasing service visibility to farmers nationwide.
6.4.1 Sales Forecast
It is anticipated that by the end of year one [YOUR COMPANY NAME] will have developed and maintained 48
hives used for servicing the pollination of crops at $200/hive in year two with a 30% increase in revenue in
year three. The cost of sales for organic honey and beeswax estimated at 30% of sales.
Table: Sales Forecast
Sales Forecast
Sales
Pollination Services
Organic Honey Sales
Beeswax Sales
Total Sales
Direct Cost of Sales
Organic Honey Costs
Beeswax Costs
Subtotal Direct Cost of Sales
Year 1
Year 2
Year 3
$73,440
$1,875
$3,500
$78,815
$115,200
$2,344
$4,375
$121,919
$149,760
$3,047
$5,687
$158,494
Year 1
$563
$1,050
$1,613
Year 2
$703
$1,312
$2,016
Year 3
$914
$1,706
$2,620
6.5 Milestones
[YOUR COMPANY NAME] will utilize grant funding expected to be received by August of 2011 by:
10
Table: Milestones
Milestones
Milestone
Purchase Land
Construct Facility
Construct & Equip Kitchen
Purchase Truck
Purchase Hives
Implement Advertising
Fund Working Capital
Totals
Start
Date
8/1/2011
9/1/2011
9/1/2011
8/1/2011
9/1/2011
9/1/2011
9/1/2011
End Date
Budget
10/1/2011
12/31/2011
12/31/2011
10/1/2011
12/31/2011
12/31/2011
12/31/2011
$290,000
$60,000
$50,000
$60,000
$120,000
$10,000
$90,000
$680,000
Manager
Department
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Chart: Milestones
INCLUDEPICTURE "ooxWord://word/media/image7.emf" \* MERGEFORMATINET
11
COMPANY NAME] will convey its commitment to quality service and professionalism by investing the time
required to extensively train all company personnel to uphold and adhere to the Company's standards of
excellence in service and business decorum.
YOUR NAME(S), Owners and Operations Managers, will oversee all elements of the Company and its
operations, profitability and commitment to service and exceeding customer expectations. The Company
projects the inclusion of additional employees by the end of year one.
7.1 Personnel Plan
[YOUR COMPANY NAME] projects the extension of additional employees by the end of year 1 with salaries
including a 3% annual cost of living increase in year two. It is the Company's goal to provide stable
employment with proportionate salaries to its bee keepers in order to compensate appropriately for the
working environment and extended travel once pollination services commence.
Table: Personnel
Personnel Plan
YOUR NAME
YOUR NAME
Laborers
Total People
Year 1
$30,000
$15,000
$30,000
0
Year 2
$30,900
$15,450
$30,900
0
Year 3
$31,827
$15,914
$31,827
0
Total Payroll
$75,000
$77,250
$79,568
General Assumptions
Break-even Analysis
Profit and Loss
Cash Flow
Balance Sheet
Ratios
12
$40,576
$639,424
$680,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$580,000
$59,424
$0
$59,424
$639,424
$0
$0
$0
$0
$0
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment
$0
$680,000
$0
$680,000
($40,576)
$639,424
$639,424
$680,000
13
Break-even Analysis
Monthly Revenue Break-even
$14,977
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
2%
$14,671
14
Year 1
$78,815
$1,613
$0
$1,613
Year 2
$121,919
$2,016
$0
$2,016
Year 3
$158,494
$2,620
$0
$2,620
Gross Margin
Gross Margin %
$77,203
97.95%
$119,903
98.35%
$155,874
98.35%
Expenses
Payroll
Marketing/Promotion
Depreciation
Supplies
Utilities
Insurance
Payroll Taxes
Travel
$75,000
$10,000
$57,896
$2,700
$4,800
$2,400
$11,250
$12,000
$77,250
$10,300
$57,896
$2,781
$4,944
$2,472
$11,588
$12,360
$79,568
$10,609
$57,896
$2,864
$5,092
$2,546
$11,935
$12,731
$176,046
$179,591
$183,241
($98,844)
($40,948)
$0
$0
($59,687)
($1,791)
$0
$0
($27,367)
$30,529
$0
$0
Net Profit
Net Profit/Sales
($98,844)
-125.41%
($59,687)
-48.96%
($27,367)
-17.27%
15
16
17
Year 2
Year 3
$78,815
$78,815
$121,919
$121,919
$158,494
$158,494
$0
$0
$0
$0
$0
$0
$0
$78,815
$0
$0
$0
$0
$0
$0
$0
$121,919
$0
$0
$0
$0
$0
$0
$0
$158,494
Year 1
Year 2
Year 3
$75,000
$41,202
$116,202
$77,250
$19,174
$96,424
$79,568
$71,267
$150,834
$0
$0
$0
$0
$0
$0
$0
$116,202
$0
$0
$0
$0
$0
$0
$0
$96,424
$0
$0
$0
$0
$0
$0
$0
$150,834
($37,387)
$22,037
$25,495
$47,532
$7,660
$55,192
Cash Received
Expenditures
18
Chart: Cash
INCLUDEPICTURE "ooxWord://word/media/image13.emf" \* MERGEFORMATINET
19
Year 1
Year 2
Year 3
$22,037
$0
$22,037
$47,532
$0
$47,532
$55,192
$0
$55,192
$580,000
$57,896
$522,104
$544,141
$580,000
$115,792
$464,208
$511,740
$580,000
$173,688
$406,312
$461,503
Year 1
Year 2
Year 3
$3,561
$0
$0
$3,561
$0
$3,561
$680,000
($40,576)
($98,844)
$540,580
$544,141
$540,580
$30,847
$0
$0
$30,847
$0
$30,847
$680,000
($139,420)
($59,687)
$480,893
$511,740
$480,893
$7,978
$0
$0
$7,978
$0
$7,978
$680,000
($199,107)
($27,367)
$453,526
$461,503
$453,526
20
Year 1
n.a.
Year 2
54.69%
Year 3
30.00%
Industry Profile
5.29%
0.00%
4.05%
95.95%
100.00%
0.00%
9.29%
90.71%
100.00%
0.00%
11.96%
88.04%
100.00%
38.63%
47.47%
52.53%
100.00%
0.65%
0.00%
0.65%
99.35%
6.03%
0.00%
6.03%
93.97%
1.73%
0.00%
1.73%
98.27%
19.01%
79.98%
98.99%
1.01%
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
Net Profit Margin
Return on Equity
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
21
100.00%
97.95%
223.37%
12.69%
-125.41%
100.00%
98.35%
147.30%
8.45%
-48.96%
100.00%
98.35%
115.61%
6.69%
-17.27%
100.00%
71.78%
12.73%
0.36%
5.06%
6.19
6.19
0.65%
-18.28%
-18.17%
1.54
1.54
6.03%
-12.41%
-11.66%
6.92
6.92
1.73%
-6.03%
-5.93%
1.46
1.17
98.99%
936.59%
9.43%
Year 1
-125.41%
-18.28%
Year 2
-48.96%
-12.41%
Year 3
-17.27%
-6.03%
n.a
n.a
12.57
27
0.14
1.51
135
0.24
6.07
146
0.34
n.a
n.a
n.a
0.01
1.00
0.06
1.00
0.02
1.00
n.a
n.a
$18,477
0.00
$16,685
0.00
$47,214
0.00
n.a
n.a
6.90
1%
6.19
0.15
0.00
4.20
6%
1.54
0.25
0.00
2.91
2%
6.92
0.35
0.00
n.a
n.a
n.a
n.a
n.a
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
Sales
Pollination Services
Organic Honey Sales
Beeswax Sales
Total Sales
$1,680
$375
$292
$2,347
$1,680
$375
$292
$2,347
$1,680
$375
$292
$2,347
$3,600
$375
$292
$4,267
$3,600
$375
$292
$4,267
$3,600
$0
$292
$3,892
$9,600
$0
$292
$9,892
$9,600
$0
$292
$9,892
$9,600
$0
$292
$9,892
$9,600
$0
$292
$9,892
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$113
$88
$200
$113
$88
$200
$113
$88
$200
$113
$88
$200
$113
$88
$200
$0
$88
$88
$0
$88
$88
$0
$88
$88
$0
$88
$88
Month
10
$0
$88
$88
Month
11
$9,600
$0
$292
$9,892
Month
11
$0
$88
$88
Month
12
$9,600
$0
$292
$9,892
Month
12
$0
$88
$88
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$2,500
$1,250
$2,500
0
Month
10
$2,500
$1,250
$2,500
0
Month
11
$2,500
$1,250
$2,500
0
Month
12
$2,500
$1,250
$2,500
0
YOUR NAME
YOUR NAME
Laborers
Total People
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
$2,500
$1,250
$2,500
0
Total Payroll
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
$6,250
Page 2
Appendix
Table: Profit and Loss
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$2,347
$200
$0
$200
$2,347
$200
$0
$200
$2,347
$200
$0
$200
$4,267
$200
$0
$200
$4,267
$200
$0
$200
$3,892
$88
$0
$88
$9,892
$88
$0
$88
$9,892
$88
$0
$88
$9,892
$88
$0
$88
Month
10
$9,892
$88
$0
$88
$2,147
91.48%
$2,147
91.48%
$2,147
91.48%
$4,067
95.31%
$4,067
95.31%
$3,804
97.75%
$9,804
99.12%
$9,804
99.12%
$9,804
99.12%
$9,804
99.12%
$9,804
99.12%
$9,804
99.12%
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$6,250
$833
$4,825
$225
$400
$200
$938
$1,000
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
$14,671
($12,524)
($12,524)
($12,524)
($10,604)
($10,604)
($10,866)
($4,866)
($4,866)
($4,866)
($4,866)
($4,866)
($4,866)
($7,699)
$0
$0
($7,699)
$0
$0
($7,699)
$0
$0
($5,779)
$0
$0
($5,779)
$0
$0
($6,042)
$0
$0
($42)
$0
$0
($42)
$0
$0
($42)
$0
$0
($42)
$0
$0
($42)
$0
$0
($42)
$0
$0
Net Profit
Net Profit/Sales
($12,524)
-533.69%
($12,524)
-533.69%
($12,524)
-533.69%
($10,604)
-248.53%
($10,604)
-248.53%
($10,866)
-279.22%
($4,866)
-49.20%
($4,866)
-49.20%
($4,866)
-49.20%
($4,866)
-49.20%
($4,866)
-49.20%
($4,866)
-49.20%
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Supplies
Utilities
Insurance
Payroll Taxes
Travel
Total Operating
Expenses
15%
Month
11
$9,892
$88
$0
$88
Month
12
$9,892
$88
$0
$88
Page 3
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
$2,347
$2,347
$2,347
$2,347
$2,347
$2,347
$4,267
$4,267
$4,267
$4,267
$3,892
$3,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$9,892
$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
$2,347
$0
$0
$0
$0
$2,347
$0
$0
$0
$0
$2,347
$0
$0
$0
$0
$4,267
$0
$0
$0
$0
$4,267
$0
$0
$0
$0
$3,892
$0
$0
$0
$0
$9,892
$0
$0
$0
$0
$9,892
$0
$0
$0
$0
$9,892
$0
$0
$0
$0
$9,892
$0
$0
$0
$0
$9,892
$0
$0
$0
$0
$9,892
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
10
$6,250
$127
$6,377
$6,250
$3,796
$10,046
$6,250
$3,796
$10,046
$6,250
$3,796
$10,046
$6,250
$3,796
$10,046
$6,250
$3,792
$10,042
$6,250
$3,683
$9,933
$6,250
$3,683
$9,933
$6,250
$3,683
$9,933
$6,250
$3,683
$9,933
$6,250
$3,683
$9,933
$6,250
$3,683
$9,933
$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
$6,377
$0
$0
$10,046
$0
$0
$10,046
$0
$0
$10,046
$0
$0
$10,046
$0
$0
$10,042
$0
$0
$9,933
$0
$0
$9,933
$0
$0
$9,933
$0
$0
$9,933
$0
$0
$9,933
$0
$0
$9,933
($4,030)
$55,394
($7,699)
$47,695
($7,699)
$39,996
($5,779)
$34,217
($5,779)
$28,437
($6,150)
$22,287
($42)
$22,245
($42)
$22,204
($42)
$22,162
($42)
$22,120
($42)
$22,079
($42)
$22,037
Cash Received
Cash from Operations
Cash Sales
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
0.00%
Month 11
Month
12
Page 4
Appendix
Table: Balance Sheet
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total 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
$59,424
$0
$59,424
$55,394
$0
$55,394
$47,695
$0
$47,695
$39,996
$0
$39,996
$34,217
$0
$34,217
$28,437
$0
$28,437
$22,287
$0
$22,287
$22,245
$0
$22,245
$22,204
$0
$22,204
$22,162
$0
$22,162
$22,120
$0
$22,120
$22,079
$0
$22,079
$22,037
$0
$22,037
$580,000
$0
$580,000
$639,424
$580,000
$4,825
$575,175
$630,569
$580,000
$9,649
$570,351
$618,046
$580,000
$14,474
$565,526
$605,522
$580,000
$19,299
$560,701
$594,918
$580,000
$24,123
$555,877
$584,314
$580,000
$28,948
$551,052
$573,339
$580,000
$33,773
$546,227
$568,473
$580,000
$38,597
$541,403
$563,606
$580,000
$43,422
$536,578
$558,740
$580,000
$48,247
$531,753
$553,874
$580,000
$53,071
$526,929
$549,007
$580,000
$57,896
$522,104
$544,141
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
$0
$0
$0
$0
$3,669
$0
$0
$3,669
$3,669
$0
$0
$3,669
$3,669
$0
$0
$3,669
$3,669
$0
$0
$3,669
$3,669
$0
$0
$3,669
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
$3,561
$0
$0
$3,561
Long-term Liabilities
Total Liabilities
$0
$0
$0
$3,669
$0
$3,669
$0
$3,669
$0
$3,669
$0
$3,669
$0
$3,561
$0
$3,561
$0
$3,561
$0
$3,561
$0
$3,561
$0
$3,561
$0
$3,561
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$680,000
($40,576)
$0
$639,424
$639,424
$680,000
($40,576)
($12,524)
$626,900
$630,569
$680,000
($40,576)
($25,048)
$614,376
$618,046
$680,000
($40,576)
($37,572)
$601,852
$605,522
$680,000
($40,576)
($48,175)
$591,249
$594,918
$680,000
($40,576)
($58,779)
$580,645
$584,314
$680,000
($40,576)
($69,646)
$569,778
$573,339
$680,000
($40,576)
($74,512)
$564,912
$568,473
$680,000
($40,576)
($79,378)
$560,046
$563,606
$680,000
($40,576)
($84,245)
$555,179
$558,740
$680,000
($40,576)
($89,111)
$550,313
$553,874
$680,000
($40,576)
($93,977)
$545,447
$549,007
$680,000
($40,576)
($98,844)
$540,580
$544,141
Net Worth
$639,424
$626,900
$614,376
$601,852
$591,249
$580,645
$569,778
$564,912
$560,046
$555,179
$550,313
$545,447
$540,580
Page 5