123 Dixie Highway

Louisville, KY 40272

p. [Telephone]
f. [Fax]

Valley Fun Park

[Email]
[Web address]

Table of Contents
I.

Executive Summary..............................................................2
Highlights
Objectives
Mission Statement
Keys to Success

II.

Description of Business.......................................................3
Company Ownership/Legal Entity
Location
Interior
Hours of Operation
Products and Services
Suppliers
Service
Manufacturing
Management
Financial Management
Start-Up/Acquisition Summary

III.

Marketing............................................................................3
Market Analysis
Market Segmentation
Competition
Pricing

IV.

Appendix..............................................................................3
Start-Up Expenses
Determining Start-Up Capital
Cash Flow
Income Projection Statement
Profit and Loss Statement
Balance Sheet
Sales Forecast
Milestones
Break-Even Analysis
Miscellaneous Documents

Executive Summary

Valley Fun Park is a new limited liability company formed under the laws of
the state of Kentucky.

This document has been prepared to provide the reader with information
about our company, including business structure, company goals, projected
growth, venture capital requirements, start-up costs, an investment analysis
and the industry trends.

Valley Fun Park has identified the family entertainment industry as its
primary interest and to that end the company has focused its efforts on the
development of one or more family entertainment centers (FEC) to provide
quality family entertainment activities to the communities in the Valley
Station, PRP area of Louisville, KY.

Focused on family entertainment in a family-oriented community, Valley Fun

Park is a company primed to take advantage of an expanding and profitable
industry.

Entertainment has become a buzzword of the new millennium. David L.

Malmuth, senior vice president of the TrizenHahn Development Corp. has
observed, "People are not just interested in buying things. They want an
experience, adding that the keys to providing successful experiences are
authenticity, fun and participation. Americans have money to spend and will
spend it on entertaining themselves. In fact, statistics show that people in
the United States spend more on entertainment than on health care or
clothing."

Quality family entertainment is the focus of Valley Fun Park. The construction
and commercialization of one initial FEC is factored into the initial
development phase detailed within. The company's proposed FECs will be
designed to provide the type of family entertainment and adventure the
current market demands.

The first proposed site is a ten-acre parcel in Valley Station, with a second
site to follow within five years.
VALLEY FUN PARK - ]

In addition to other funding and capitalization efforts detailed herein, the

Company anticipates that it will seek funds from the Government
Redevelopment Agency which may assist in the purchasing of land for
development of the proposed sites.

A recent survey by the IAAPA shows nearly 30,000 attractions (theme and
amusement parks, attractions, water parks, family entertainment centers,
zoos, aquariums, science centers, museums, and resorts) produced a total
nationwide economic impact of $219 billion in 2011. Also In 2011, theme
parks, amusement parks, and water parks generated a total direct economic
impact of approximately $55.4 billion
Based on the current entertainment prices and cost of revenue structure in
the local amusement and recreation industries, we believe that our
anticipated FEC's will have the potential of several million dollars in gross
sales in the first year of operations.

With our strong management team and our aggressive marketing plan, we
project a consistent and minimum annual growth of five percent .

Financial Overview
$120,000
$100,000
$80,000
$60,000
$40,000

35000

45000

50000

2018

2019

60000

$20,000
$0

2017
Sales

Net Profit

2020

Expenses

Objectives
The company's objective is to build quality, full-service FECs that will
command the approval of the predominantly LDS community which it
serves.
VALLEY FUN PARK - ]

Our goals include:

1.A 10% market share in our first year.

2.An modest increase in our gross margins within the second year of
operation
3.An increase in our market share by a minimum of 10% for each of
our first five years.

Currently, there ARE no quality FECs in Valley Station (for a radius of 30-50
miles). The company believes that by entering the marketplace first and by
establishing quality facilities, it will become, and remain, a leader in the
FEC industry in the South End of Dixie.

Our fundamental objective is to realize how we impact the community that

we do business in, knowing that we will stand the test of time if the local
residents approve and support our center.

Mission Statement
Valley Fun Parks sole purpose is to establish a profitable and well managed
company while at the same time creating an atmosphere of fun and
excitement for the entire family, with activities designed to please the local
residents, as well as the substantial tourist base of the Southern End of
Louisville.

Keys to Success
Based on our research, our primary targeted market is parents and their
children (ages 5-15 to 54). With that in mind, we intend to design our
facilities to address this primary market, while keeping in mind the
secondary markets such a teens and young adults.

We believe that our main keys to success include:

Providing popular and wide-ranging entertainment activities

Ample and secure parking
Indoor activities for year round entertainment
The use of state-of-the-art technology

VALLEY FUN PARK - ]

Easy access
Target high traffic areas for maximum public exposure
Design facilities to curb overcrowding
Seasoned management team

We believe that we can minimize certain risk factors by:

Initial capitalization of the company to sustain operations through

year one
Low overhead through the use of multi-skilled employees and

continual training
Strong customer base through aggressive marketing
Strong community ties and involvement
Eliminate collection costs by establishing cash/credit/debit card only
facilities

Description of Business
The company anticipates that its first FEC will be located in Valley Station,
KY. The company's FEC will be the most modern in the Southern Louisville
Area.

The company anticipates that its facility will have a positive impact on the
local environment and economy.

Mr. Bill Rameson, CEO of Palace Entertainment, the largest FEC chain in
the world, has observed, "With most family entertainment centers having a
15 to 20 mile reach and in today's climate, you've got to understand what
you're trying to accomplish. You've got to understand your market. You've
got to understand construction. The attractions have to be both interactive
and competitive."

Valley Station Fun Parks proposes to choose its locations after thoughtful
and detailed research and demographic profiling.

VALLEY FUN PARK - ]

Company Ownership/Legal Entity

Managing Partner - Mark D. Bergman

Limited Partners:
Acting C.F.O.- Val R. Iverson
Operations Manager & Public Relations - Senator Joseph L. Hull
Retail Space Leasing Agent Gift Shop Manager.- Laura Strebel
Director of Sales and Marketing - Roger Smout
Manager of Treasury and General Accounting - Rod Schaffer
Manager of Promotions & Customer Service - Darren Strebel

Consultants / Non-Partners (retained):

General Entertainment Manager / Consultant - Harold Skripsky
Redevelopment (RDA) Specialist - Randy Sant

Location
The first proposed site / property has two different aspects to it:
1.We purchase a 10 acre parcel on the site and construct our center.
2.We incorporate a Government Redevelopment Agency (RDA). Which can
provide our company with a government grant (funds) that can help us
purchase the entire 44.6 acres. This involves more risk but offers higher
profits because we will need to resell 20 acres +/- once they are developed.

Therefore, within this business plan we will present a primary look at both
possibilities, including the basic business structure, the start-up cost, the
company's projected growth, the market, the local demographics, the
VALLEY FUN PARK - ]

economic impact, the industry trends, the construction costs, the

development of the land, the oversight of operations during the
development of the infrastructure and the companies future management
and marketing team.

Our proposed site is the 44.6 +/- acres running along the west side of the
Interstate, with three planned future (roads) accesses/easements.

The entire property is zoned commercial and the owner has stated that he
supports our project and will carry a contract. Phase 1 would place our FEC
just north of the other existing commercial establishments.

The latest traffic figures report an average daily traffic count of 30,685 cars
exiting and entering the interstate at this junction and the interstate (north
and south bound) carries an average daily traffic count of 56,490 cars.

Interior
For some businesses, the interior of the business site is as important as the location. If that is the
case for your business, describe what makes yours work well.
How have you calculated the square footage you need? Have you done advance planning to
ensure that you will get the most of your space, such as what will go where?
Are there any special requirements/modifications to the space that you will have to construct or
install? Do you need landlord or other permission to do so?
If applicable, how will you display products? Does the layout have flow/features that contribute to
the ambience and/or potentially help to increase sales?
Describe any special features of your business interior that you feel give you a competitive edge
over similar businesses.

Hours of Operation
Self-explanatory, but important for such businesses as retail stores or seasonal ventures.

Products and Services

Our FEC's will provide customers with a wholesome environment that
provides amusement, entertainment, excitement, competition, year round
activities, souvenirs and great food all while forming lasting memories at
affordable prices.
VALLEY FUN PARK - ]

Although there is currently no competition in the immediate area in which

we plan to establish our FECs, we believe that because the FEC industry is
expanding exponentially, sooner or later competition will encroach.

To that end, the company plans to become profitable and retain a solid
leadership position in the marketplace by providing:
Indoor facilities - Cold weather will close the outdoor competition.

Year round play with a wide variety of activities - Our season never stops.
Seasoned, successful management team.
Contracting top FEC consultants - To counsel on key attraction layout and
design.
Working with USU Extension Program - Determining tourism impact.
Working with Utah Department of Tourism - National and international
exposure.
Family-oriented - Partnership-operated center gives the company local
insight.
Aggressive marketing.
Customer Incentive Program - Reward frequent visitors/customers.
Easy access and exposure.

Suppliers
If information about your suppliersincluding your financial arrangements with themplays an
important part of your business, include the relevant information in this section.

Service
"In 1982, Dave Corriveau and Buster Corley brought an idea to life. Create
a place where adults can enjoy great food, terrific drinks and the latest
interactive games - all in one place. They discovered a winning formula.
VALLEY FUN PARK - ]

Over the past 18 years, Dave & Buster's has grown from one location in
Dallas, Texas, to a nationwide organization. And with the help of our
creative and dedicated employees, we're able to keep growing and
providing our guests with a unique experience." Source: Dave & Busters.

Valley Fun Park intends on building an FEC with a 15,000 to 20,000 squarefoot main building located in the Southern Dixie Highway area of Jefferson
County, KY and provide such activities and services as: go-carts, miniature
golf, climbing walls, batting cages, air hockey, foosball, paint ball, laser tag,
skateboard arena, outdoor bumper boats, gaming & redemption center,
chess/backgammon playing areas, souvenir/gift shop, ice cream, pizza,
pretzels, drinks, private party rooms (birthday & corporate)

Valley Fun Park anticipates entering into an agreement with Harris

Miniature Golf Company (HMGC) to construct the course at its facility. The
mini-golf course landscaping will depict the Wasatch Mountains area. The
environment is casual and the design will capture the romantic era of a visit
to the Olde West. The casual ambiance will be enhanced with mellow beat
music and the sound of rushing water created by the falls and streams on
the golf course. The quality of play and excellent service will ensure a large
loyal following of customers.

"It's an icon of the American landscape. It gives people a sense of other

worldliness. And it's non-gender and non-age biased," says Steven W. Rix,
executive director of San Antonio, Texas-based Miniature Golf Association of
the United States.

"Miniature golf's relatively low start-up cost - compared with theme parks,
for example - have made it one of the most lucrative entertainment
businesses around. Our latest figures show courses can return as much as
38 percent on an investment each year," states Dave & Paul of the
Professional Miniature Golf Association of Salt Lake City, Utah.

Management
Our company philosophy is based on mutual respect for all contributions
made by our participating or limited partners, investors, consultants, and
employees without regard to the position held in the company. Those who
work with Valley Fun Park will learn to enjoy and trust our partnership
VALLEY FUN PARK - ]

10

environment, because we all strive to create an environment that enables us

to work smarter-not harder and suggestions are valued, appreciated and
rewarded.

Valley Fun Park will also work toward establishing community involvement
programs that will demonstrate how our business can contribute to a better
quality of community life. Projects such as using the FEC facilities to help
civic groups obtain their financial goals (by offering fundraising events);
working with schools, churches, and other groups on programs for mutual
benefit.

Financial Management
As you write this section, consider that the way company finances are managed can be the
difference between success and failure.
Based on the particular products or services you intend to offer, explain how you expect to make
your business profitable and within what period of time. Will your business provide you with a
good cash flow or will you have to be concerned with sizeable Accounts Receivable and possible
bad debts or collections?
The full details of your start-up and operating costs should be included in the Appendix. However,
you can reference appropriate tables, charts, or page numbers as you give a brief, summary
accounting of your start-up needs and operating budget.

Start-up needs should include any one-time only purchases, such as major equipment or supplies,
down-payments, or deposits, as well as legal and professional fees, licenses/permits, insurance,
renovation/design/decoration of your location, personnel costs prior to opening; advertising or
promotion

Once you are ready to open your business, you will need an operating budget to help prioritize
expenses. It should include the money you need to survive the first three to six months of operation
and indicate how you intend to control the finances of your company. Include the following
expenses: rent, utilities, insurance, payroll (including taxes), loan payments, office supplies, travel
and entertainment, legal and accounting, advertising and promotion, repairs and maintenance,
depreciation, and any other categories specific to your business.

You can also include information (or cross-reference other sections of this business plan if covered
elsewhere) about the type of accounting and inventory control system you are using, intend to
use, or, where applicable, what the franchiser expects you to use.

Start-Up/Acquisition Summary
For Phase 1 the Start-up table reflects the cost of the center, activities and
8.5 +/- acres.

All Construction cost are included in the gross loan, but not detailed in the
"Start-up Cost table" because these costs happen before the projected pro
forma begins.

VALLEY FUN PARK - ]

11

In the Start-Up Funding table there are two forms/types of investors listed:

The Seed Investors/Partners that come under #1-11, are considered the
seed funding group and company management team. Their investment is
not secure and carries a greater risk of loss. Therefore, the percentage of
the company that this group receives for their investment equals a much
greater company ownership than the secure partners do for their
investment (these partners are also earning sweat equity shares for their
involvement/efforts rather than wages during development).

The Start-up Investors/Secure Partners that come under #1 -4, are

considered the start-up funding partners. They may or may not be part of
the company's management team but are the voting and percentage
controlling partners. Their investment will be escrowed and secure until
the company has secured funding for the entire project. There is no risk of
loss that is associated with these investors.

The Use of Funds table details many of the Start-up Expenses.

Need actual charts? We recommend using LivePlan as the easiest way to

create graphs for your own business plan.
Create your own business plan

VALLEY FUN PARK - ]

12

Start-up Funding
Start-up Expenses to Fund $229,575
Start-up Assets to Fund $5,277,925
Total Funding Required $5,507,500
Assets
Non-cash Assets from Start-up $5,077,925
Cash Requirements from Start-up $200,000
Additional Cash Raised $0
Cash Balance on Starting Date $200,000
Total Assets $5,277,925
Liabilities and Capital
Liabilities
Current Borrowing $890,000
Long-term Liabilities $3,652,500
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $4,542,500
Capital
Planned Investment
Seed Investor/Partner #1 $5,000
Seed Investor/Partner #2 $5,000
Seed Investor/Partner #3 $2,500
Seed Investor/Partner #4 $2,500
VALLEY FUN PARK - ]

13

Seed Investor/Partner #5 $2,500

Seed Investor/Partner #6 $2,500
Seed Investor/Partner #7 $5,000
Seed Investor/Partner #8 $12,500
Seed Investor/Partner #9 $12,500
Seed Investor/Partner #10 $12,500
Seed Investor/Partner #11 $12,500
Start-up Investor/Secure Partner #1 $222,500
Start-up Investor/Secure Partner #2 $222,500
Start-up Investor/Secure Partner #3 $222,500
Start-up Investor/Secure Partner #4 $222,500
Additional Investment Requirement $0
Total Planned Investment $965,000
Loss at Start-up (Start-up Expenses) ($229,575)
Total Capital $735,425
Total Capital and Liabilities $5,277,925
Total Funding $5,507,500

Need real financials? We recommend using LivePlan as the easiest way to

create automatic financials for your own business plan.
Create your own business plan

VALLEY FUN PARK - ]

14

Start-up
Requirements
Start-up Expenses
Seed/Development Stage Cost $35,000
Professional Fees $60,000
Commercial Loan/Mortgage Points Cost $109,575
Sweat Equity Cost $25,000
Total Start-up Expenses $229,575
Start-up Assets
Cash Required $200,000
Other Current Assets $0
Long-term Assets $5,077,925
Total Assets $5,277,925
Total Requirements $5,507,500

VALLEY FUN PARK - ]

15

Use of Funds
Use Amount
Phase 1 Construction Cost Breakdown $0
Total Sq.Ft. Building () $15,000
Direct Construction Cost $150,000
Table Top Games/FoosBall $50,000
Redemption Games/Inventory $50,000
Bumper Boats $175,000
Batting Cage and Pitching Device $140,000
Miniature Golf Course $225,000
Street Construction $800,000
Storm Water and Infiltration Program $217,000
Building Permit/Subdivide/Connection $35,000
Parking Lot $167,000
Construction Insurance Cost $4,000
Property Cost 8.6 Acres $688,000
Drafting/Renderings $90,000
Site and Building Engineering $45,000
Computers/Desks Office Supplies $14,000
Signs $20,000
Go-carts and Tracks $500,000
First Year Operations Captial $200,000
Gross Cost of Equipment & Improvements $3,570,000
VALLEY FUN PARK - ]

16

Construction Cost of Building $1,000,000

Construction Loan Cost $300,000
Cost + Building $4,870,000
25% Loan (LT) Buy Down Cost $1,217,500
RDA Write Down $0
Retail Pads Sales $0
Net (LT) Loan $3,652,500
Loan Points Cost $109,575
Gross Cost $1,327,075
Loan + Points Cost/Gross Investment $4,979,575
Total $24,611,225

Marketing
Research has indicated that the prime market for a FEC is in urban areas
close to neighborhoods with large concentrations of upper- to middleincome bracket population. Ease of access is important, but street frontage
is not a crucial requirement.

Mr. Randy White, president of White Hutchinson Leisure & Learning Group,
one of the leading FEC project developers in the United States has
observed, "Just as entertainment is becoming an essential component of
shopping centers, entertainment is the backbone of today's urban
redevelopment. Often referred to as urban or location-based entertainment
centers, these projects integrate entertainment with retail, dining and
cultural facilities to create a resident and tourist destination."

A seven to ten mile radius is considered the radial market area of a FEC.
However, depending on competition (or lack thereof) a market area can
grow to a fifteen mile radius and with easy highway access to a radius of
twenty miles from the FEC.
VALLEY FUN PARK - ]

17

Market Analysis
Valley Fun Parks primary targeted market consists of three main groups.
These categories are: 15 to 24 year old, 25 to 34 and 35 to 54 years old. In
the Valley Station area there are 37,394 total people. Out of that 37,177 are
in a relationship. Out of that, 7,801 have a child has a child under the age of
18 living with them and another 1,193 have another relative under 18 living
with them also.

Age

35-54; 0%
15-24

25-34; 50%

15-24; 50%

25-34
35-54

Competition
The Amusement Industry is unique in that it has little inventory. Yet, should
the need arise there exists a large network of suppliers for everything in the
facility. All of these sources ship overnight which reduces the requirement
for a large on-hand inventory.

VALLEY FUN PARK - ]

18

"Being locally owned, you can design and operate your facility to be
connected with the community and fine-tune to meet their needs. You have
to be part of the community to be successful." - Economy Affects FEC Biz October 01, 2001 Amusement Business.com.

Valley Fun Park is a business focusing on family entertainment where there

will be sports and activities that all ages can participate in and enjoy as
individuals or as a group. It is where grandparents can take grandchildren
of all ages (it makes a great date night or family outing).

The simplicity of the activities enables anyone to experience excitement

without having to know how to play like a pro. Miniature golf and other
related activities (that require minimum strength and athletic ability) are
some of the highest-rated family participation sports in the United States.

By far, the most significant factor to affect the FEC business in the
forthcoming decade is the dramatic growth of the 25 to 44 year old segment
of the population. This age group represents the prime segment of the
population that enjoys playing in tournaments. Our FEC will be high-tech,
totally computerized centers. Pro play will be offered in the facility year
round, increasing the profits for the center.

Competition in the amusement industry in Louisville is considered mild at

best and most venues are remotely located. Our first choice of locations is
superior and offers us an edge against future FECs or similar services. We
will create our niche in the market place by being the first FEC in the
surrounding area, but to keep our competitive edge we know we have to
choose the right location.

Experts say, "If you require a big grand opening or spend a ton on
advertising your center, then you are not in the right location. The public
just needs to be able to see your location, make it look fun and they will
know where you are and when to come."
There are three local Mini Golf in the Louisville area. We do not feel that
they will be any competition at all since they are on the other end of the
county or in another county.
VALLEY FUN PARK - ]

19

Pricing
Valley Fun Park wants everyone to have fun at an affordable price. You will
see that our prices are reasonable if not cheaper then most places around.
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Advertising and Promotion

We will advertise on social media, send out mailers monthly letting people
know about any new attractions and of specials for that month

VALLEY FUN PARK - ]

20

Strategy and Implementation

Now that you have described the important elements of your business, you may want to
summarize your strategy for their implementation. If your business is new, prioritize the steps you
must take to open your doors for business. Describe your objectives and how you intend to reach
them and in what time parameters.
Planning is one of the most overlooked but most vital parts of your business plan to ensure that
you are in control (as much as possible) of events and the direction in which your business
moves. What planning methods will you utilize?

VALLEY FUN PARK - ]

21

Appendix
Start-Up Expenses
Business Licenses
Incorporation Expenses
Deposits
Bank Account
Rent
Interior Modifications
Equipment/Machinery Required:
Item 1
Item 2
Item 3
Total Equipment/Machinery
Insurance
Stationery/Business Cards
Brochures
Pre-Opening Advertising
Opening Inventory
Other (list):
Item 1
Item 2

VALLEY FUN PARK - ]

22

Determining Start-Up Capital

1.

Begin by filling in the figures for the various types of expenses in the cash flow table on the following page.

2.

Start your first month in the table that follows with starting cash of $0, and consolidate your cash out expenses from your cash flow table under the
three main headings of rent, payroll and other (including the amount of unpaid start-up costs in other in month 1).

3.

Continue the monthly projections in the table that follows until the ending balances are consistently positive.

4.

Find the largest negative balancethis is the amount needed for start-up capital in order for the business to survive until the break-even point when
all expenses will be covered by income.

5.

Continue by inserting the amount of needed start-up capital into the cash flow table as the starting cash for Month 1.

Month 1
Starting cash

$0.00

Cash In:
Cash Sales Paid
Receivables
Total Cash In
Cash Out:
Rent
Payroll
Other
Total Cash Out
Ending Balance
Change (cash flow)

VALLEY FUN PARK - ]

23

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Cash Flow
Month 1
Starting cash
Cash In:
Cash Sales
Receivables
Total Cash Intake
Cash Out
(expenses):
Rent
Utilities
Payroll (incl.
taxes)
Benefits
Loan Payments
Travel
Insurance
Advertising
Professional fees
Office supplies
Postage
Telephone
Internet
Bank fees
Total Cash Outgo
EndiNG Balance

VALLEY FUN PARK - ]

24

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Income Projection Statement

The Income Projection Statement is another management tool to preview the amount of income generated each month based on reasonable
predictions of the monthly level of sales and costs/expenses. As the monthly projections are developed and entered, these figures serve as goals to
control operating expenses. As actual results occur, a comparison with the predicted amounts should produce warning bells if costs are getting out
of line so that steps can be taken to correct problems.
The Industrial Percentage (Ind. %) is calculated by multiplying costs/expenses by 100% and dividing the result by total net sales. It indicates the
total sales that are standard for a particular industry. You may be able to get this information from trade associations, accountants, banks, or
reference libraries. Industry figures are a useful benchmark against which to compare the costs/expenses of your own business. Compare your
annual percentage with the figure indicated in the industry percentage column.
The following is an explanation for some of the terms used in the table that follows:
Total Net Sales (Revenue): This figure is your total estimated sales per month. Be as realistic as possible, taking into consideration seasonal
trends, returns, allowances, and markdowns.
Cost of Sales: To be realistic, this figure must include all the costs involved in making a sale. For example, where inventory is concerned, include
the cost of transportation and shipping. Any direct labor cost should also be included.
Gross Profit: Subtract the cost of sales from the total net sales.
Gross Profit Margin: This is calculated by dividing gross profits by total net sales.
Controllable Expenses: Salaries (base plus overtime), payroll expenses (including paid vacations, sick leave, health insurance, unemployment
insurance and social security taxes), cost of outside services (including subcontracts, overflow work and special or one-time services), supplies
(including all items and services purchased for use in the business), utilities (water, heat, light, trash collection, etc.), repair and maintenance
(including both regular and periodic expenses, such as painting), advertising, travel and auto (including business use of personal car, parking, and
business trips), accounting and legal (the cost of outside professional services).
Fixed Expenses: Rent (only for real estate used in business), depreciation (the amortization of capital assets), insurance (fire, liability on property
or products, workers compensation, theft, etc.), loan repayments (include the interest and principal payments on outstanding loans to the
business), miscellaneous (unspecified, small expenditures not included under other accounts or headings).
Net Profit/Loss (Before Taxes): Subtract total expenses from gross profit.
Taxes: Inventory, sales, excise, real estate, federal, state, etc.
Net Profit/Loss (After Taxes): Subtract taxes from net profit before taxes.
Annual Total: Add all monthly figures across the table for each sales and expense item.
Annual Percentage: Multiply the annual total by 100% and divide the result by the total net sales figure. Compare to industry percentage in first
column.

VALLEY FUN PARK - ]

25

Ind. %
Est. Net Sales
Cost Of Sales
Gross Profit
Controllable Expenses:
Salaries/Wages
Payroll Expenses
Legal/Accounting
Advertising
Travel/Auto
Dues/Subs.
Utilities
Misc.
Total Controllable Exp.
Fixed Expenses:
Rent
Depreciation
Insurance
Permits/Licenses
Loan Payments
Misc.
Total Fixed Expenses
Total Expenses
Net Profit/Loss Before
Taxes
Taxes
Net Profit/Loss
After Taxes

VALLEY FUN PARK - ]

26

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Annual
Total

Annual
%

Profit and Loss Statement

This table essentially contains the same basic information as the income projection statement.
Established businesses use this form of statement to give comparisons from one period to
another. Many lenders may require profit and loss statements for the past three years of
operations.
Instead of comparing actual income and expenses to an industrial average, this form of the profit
and loss statement compares each income and expense item to the amount that was budgeted
for it. Most computerized bookkeeping systems can generate a profit and loss statement for the
period(s) required, with or without budget comparison.

Profit and Loss, Budget vs. Actual: ([Starting Month, Year][Ending

Month, Year])
[Starting Month, Year]
[Ending Month, Year]
Income:
Sales
Other
Total Income
Expenses:
Salaries/Wages
Payroll Expenses
Legal/Accounting
Advertising
Travel/Auto
Dues/Subs.
Utilities
Rent
Depreciation
Permits/Licenses
Loan Repayments
Misc.
Total Expenses
Net Profit/Loss

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Budget

Amount over Budget

Balance Sheet
Following are guidelines for what to include in the balance sheet: (For use in established
businesses)
Assets: Anything of value that is owned or is legally due to a business. Total assets include all
net values; the amounts that result from subtracting depreciation and amortization from the
original cost when the asset was first acquired.
Current Assets:
CashMoney in the bank or resources that can be converted into cash within 12 months of the
date of the balance sheet.
Petty CashA fund of cash for small, miscellaneous expenditures.
Accounts ReceivableAmounts due from clients for merchandise or services.
InventoryRaw materials on hand, work-in-progress, and all finished goods (either
manufactured or purchased for resale).
Short-term InvestmentsInterest or dividend-yielding holdings expected to be converted to
cash within a year; stocks, bonds, certificates of deposit and time-deposit savings accounts.
These should be shown at either their cost or current market value, whichever is less. Short-term
investments may also be called temporary investments or marketable securities.
Prepaid ExpenseGoods, benefits or services that a business pays or rents in advance, such as
office supplies, insurance or workspace.
Long-term InvestmentsHoldings that a business intends to retain for at least a year. Also
known as long-term assets, these are usually interest or dividend paying stocks, bonds or savings
accounts.
Fixed AssetsThis term includes all resources that a business owns or acquires for use in its
operations that are not intended for resale. They may be leased rather than owned and,
depending upon the leasing arrangements, may have to be included both as an asset for the
value and as a liability. Fixed assets include land (the original purchase price should be listed,
without allowance for market value), buildings, improvements, equipment, furniture, vehicles.
Liabilities:
Current Liabilities: Include all debts, monetary obligations, and claims payable within 12
months.
Accounts PayableAmounts due to suppliers for goods and services purchased for the
business.
Notes PayableThe balance of the principal due on short-term debt, funds borrowed for the
business. Also includes the current amount due on notes whose terms exceed 12 months.
Interest PayableAccrued amounts due on both short and long-term borrowed capital and
credit extended to the business.
Taxes PayableAmounts incurred during the accounting period covered by the balance sheet.
Payroll AccrualSalaries and wages owed during the period covered by the balance sheet.
Long-term LiabilitiesNotes, contract payments, or mortgage payments due over a period
exceeding 12 months. These should be listed by outstanding balance less the current position
due.
Net WorthAlso called owners equity. This is the amount of the claim of the owner(s) on the
assets of the business. In a proprietorship or partnership, this equity is each owners original
investment plus any earnings after withdrawals.
Most computerized bookkeeping systems can generate a balance sheet for the period(s) required.
Note: Total assets will always equal total liabilities plus total net worth. That is, the bottom-line
figures for total assets and total liabilities will always be the same.
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Assets

Liabilities

Current Assets:

Current Liabilities:

Cash:

Accounts Payable

Petty Cash

Notes Payable

Accounts Receivable

Interest Payable

Inventory

Taxes Payable:

Short-Term
Investment

Federal Income Tax

State Income Tax

Prepaid Expense

Self-Employment Tax

Long-Term Investment

Sales Tax (SBE)

Fixed Assets:

Property Tax

Land

Payroll Accrual

Buildings

Long-Term Liabilities

Improvements

Notes Payable

Equipment

Net Worth/Owners
Equity/Retained
Earnings

Furniture
Automobiles/Vehicles
Other Assets:
Item 1
Item 2
Item 3
Total Assets:

Total Liabilities:

Sales Forecast
This information can be shown in chart or table form, either by months, quarters or years, to
illustrate the anticipated growth of sales and the accompanying cost of sales.

Milestones
This is a list of objectives that your business may be striving to reach, by start and completion
dates, and by budget. It can also be presented in a table or chart.

Break-Even Analysis
Use this section to evaluate your business profitability. You can measure how close you are to
achieving that break-even point when your expenses are covered by the amount of your sales
and are on the brink of profitability.
A break-even analysis can tell you what sales volume you are going to need in order to generate
a profit. It can also be used as a guide in setting prices.

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There are three basic ways to increase the profits of your business: generate more sales, raise
prices, and/or lower costs. All can impact your business: if you raise prices, you may no longer be
competitive; if you generate more sales, you may need added personnel to service those sales
which would increase your costs. Lowering the fixed costs your business must pay each month
will have a greater impact on the profit margin than changing variable costs.
Fixed costs: Rent, insurance, salaries, etc.
Variable costs: The cost at which you buy products, supplies, etc.
Contribution Margin: This is the selling price minus the variable costs. It measures the dollars
available to pay the fixed costs and make a profit.
Contribution Margin Ratio: This is the amount of total sales minus the variable costs, divided
by the total sales. It measures the percentage of each sales dollar to pay fixed costs and make a
profit.
Break-even Point: This is the amount when the total sales equals the total expenses. It
represents the minimum sales dollar you need to reach before you make a profit.
Break-even Point in Units: For applicable businesses, this is the total of fixes costs divided by
the unit selling price minus the variable costs per unit. It tells you how many units you need to
sell before you make a profit.
Break-even Point in Dollars: This is the total amount of fixed costs divided by the contribution
margin ratio. It is a method of calculating the minimum sales dollar to reach before you make a
profit.
Note: If the sales dollars are below the break-even point, your business is losing money.

Miscellaneous Documents
In order to back up the statements you may have made in your business plan, you may need to
include any or all of the following documents in your appendix:

Personal resumes

Personal financial statements

Credit reports, business and personal

Copies of leases

Letter of reference

Contracts

Legal documents

Personal and business tax returns

Miscellaneous relevant documents.

Photographs

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