VASERCO FLIGHT

TRAINING CENTER

INSERT ADDRESS
Phone:
Email:
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by VASERCO FTC in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of VASERCO FTC.

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 VASERCO
FTC.

Upon request, this document is to be immediately returned to VASERCO FTC.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

 Table of Contents

1.0 Executive Summary 1

1.1 Objectives 2
1.2 Mission 3
1.3 Keys to Success 3
2.0 Company Summary/Company Ownership 3
2.1 Start-Up Summary 3
3.0 Services Description 3
4.0 Market Analysis Summary 4
4.1 Competition and Buying Patterns 5
5.0 Web Plan Summary 5
6.0 SWOT Analysis 5
6.1 Competitive Edge 6
6.2 Marketing Strategy 6
6.3 Sales Strategy 6
6.4 Sales Forecast 6
6.5 Milestones 8
7.0 Management Strategy 8
7.1 Personnel Plan 9
8.0 Financial Plan 9
8.1 Start-up Funding 9
8.2 Break-Even Analysis 10
8.3 Projected Profit and Loss 11
8.4 Projected Operating Cash Flow 14
8.5 Projected Balance Sheet 15
8.6 Business Ratios 16

Appendix: Sales Forecast

Appendix: Personnel
Appendix: Profit and Loss
Appendix: Cash Flow

Appendix: Balance Sheet

PremAir, Inc 2010

1.0 Executive Summary

VASERCO FTC
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:

Introduction
VASERCO FTC is seeking funding in order to set up a new flight training center. The firm trains
pilots in Airbus 320. The firm has very strong relationships with both the airlines that hire these
pilots as well as the CAAV that oversees the airline industry in Vietnam. VASERCO FTC will be a
CAAV-approved training company.

Location
VASERCO FTC is located in Hochiminh City, Vietnam

Services
The firm is a Part 142 Training Center that is certified by the CAAV and EASA to offer training for
pilots who are seeking certifications for:

Airbus A320 CEO

Airbus A320 NEO

The Market
The school markets to students interested in becoming pilots and as well as to airlines that are
looking to hire pilots. The firm offers training for the Boeing 737 and Boeing 757/767
aircrafts. The firm plans to expand its training by adding certification training in the new Boeing
777/787. VASERCO FTC is located in [CITY], [STATE] and was established in 1994. The firm
plans to expand by opening small, 200 offices as well as increasing its market share from China,
India, Central America, and South America.

Financial Considerations
VASERCO FTC is projecting $549,729 in sales during year 1 and a net profit after taxes of
$16,470. VASERCO FTC is requesting $280,000 in grant funding in order to hire the personnel
and purchase assets needed to expand the firm’s training offerings as well as expand the firm’s
market presence in the U.S., China, India, Central America, and South America.

Start-up

Hire Professional Sales Executive $75,000

Hire Operations Specialist $65,000
Purchase Office Equipment (6 PC, 2 Servers, etc.) $10,000
Marketing & Advertising $60,000
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PremAir, Inc 2010
Create FAA-Required Training Offices in [CITY] $18,000
and LV
Expand Training Programs to Boeing 777 Aircraft $52,000
Total Start-up Expenses $280,000

Total Requirements $280,000

The major focus for grant funding is as follows:

1. The firm is minority-owned.

2. Hire employees; the property manager will look to hire veterans, minorities, and the
unemployed.

Chart: Highlights

1.1 Objectives

Main objectives of the company are as follows;

 To operate different aviation training such as VAR 147, EASA Part 66 Licensing, Pilot
Training, Aeronautical Engineering, Cabin Crew, airport ground operations, Flight Dispatcher,
Aviation Management degree programs etc.
 To study and research regarding the aviation issues and provide advice for the stakeholders.

 To provide educational services in collaboration of international aviation training institutes and

airlines.

 To operate different technical education in collaboration of international colleges, universities

and institutes having the same objectives.
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PremAir, Inc 2010
 Expand our training offerings by adding certifications in the new Airbus A320 family.

 Hire the qualified personnel to accomplish the above goals

1.2 Mission

The mission of the company is to provide excellent training to all pilots who enter the firm's
school while creating a reasonable profit for the owners.

1.3 Keys to Success

1. The firm offers a customized program to each of the students, addressing their specific training
needs
2. The firm has strong relationships with the airlines' POI (FAA governing person) that has been
cultivated through multiple years of experience in the field
3. The firm has equally strong relationships with the airlines who are seeking qualified pilots

2.0 Company Summary/Company Ownership

VASERCO FTC is a Part 142 Training Center certified by the FAA (Federal Aviation Administration)
to certify and license pilots, both for the Initial Type Ratings and Recurrent Certifications. The
firm offers training for Boeing 737 and Boeing 757/767 passenger aircrafts. The firm plans to
expand its training by adding certification training in the new Boeing 777/787. VASERCO FTC is
located in [CITY], [STATE] and was established in 1994.

VASERCO FTC is a CCORP and is owned 51/49 by VASERCO FTC(S) (a married couple who reside
in [CITY]).

2.1 Start-up Summary

VASERCO FTC is requesting $280,000 in grant funding in order to hire the personnel
and purchase assets needed to expand the firm’s training offerings as well as expand the firm’s
market presence in the U.S., China, India, Central America, and South America. The FAA
requires that the firm maintain a 200 SF training office in [CITY] and [CITY], which the firm
accounts for below. A part-time office staff member will work at each office and instructors will
be paid by the course load. In addition, a sales executive will be hired to aggressively market
the firm’s training to airlines around the world. Additional advertising will include expanding the
website to a world-wide viewership base and expand printed literature through professional ads
in magazines and for use in direct mailings.

Table: Start-up

Start-up

Hire Professional Sales Executive $75,000

Hire Operations Specialist $65,000
Purchase Office Equipment (6 PC, 2 Servers, etc.) $10,000
Marketing & Advertising $60,000
Create FAA-Required Training Offices in [CITY] $18,000
and LV
Expand Training Programs to Boeing 777 Aircraft $52,000
Total Start-up Expenses $280,000

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PremAir, Inc 2010
Total Requirements $280,000

3.0 Services

The firm is a Part 142 Training Center that is certified by the FAA to offer training for pilots who
are seeking certifications for:
Boeing 737
Boeing 757/767
Boeing 777/787 (proposed offering)

4.0 Market Analysis Summary

The school markets to students interested in becoming pilots and as well as to airlines that are
looking to hire pilots. The firm offers training for Boeing 737 and Boeing 757/767 passenger
aircrafts. The firm plans to expand its training by adding certification training in the new Boeing
777/787. In addition, the firm markets its training to established airlines who choose to
outsource their training as a economical alternative. VASERCO FTC is located in [CITY], [STATE]
and was established in 1994. The firm plans to expand by opening small, 200 SF offices in [CITY]
and [CITY] as well as increasing its market share from China, India, Central America, and South
America.

Industry Notes
1) Cathay Pacific Airways Ltd., Qantas Airways Ltd. and Emirates Airline are awaiting deliveries
of about 400 planes to capitalize on Asia’s rising prosperity.
2) Asia-Pacific airlines will buy about 8,000 planes worth $1.2 trillion over the next 20 years,
Airbus SAS said.
3) Airlines worldwide need an average of 49,900 pilots a year from 2010 to 2030 as fleets
expand, yet current training capacity is only 47,025, according to the International Civil
Aviation Organization in Montreal. That is sparking bidding wars as Emirates offers tax-free
salaries and four-bedroom villas for captains, and AirAsia Bhd., the region’s biggest budget
airline, gives tuition-free training.
4) China, the world’s fastest-growing major aviation market, likely will account for one-half of
the region’s orders, Boeing, the world’s biggest aircraft maker, said in February. Its economy
will grow 10.5 percent this year, compared with world growth of 4.6 percent, according to
International Monetary Fund estimates.
5) India, with estimated growth of 9.4 percent this year, may overtake China as the world’s
fastest-growing major economy as early as 2013, according to Morgan Stanley.
This year, the region’s carriers ordered 133 commercial jets with more than 100 seats, or 23
percent of the global total, according to Ascend Worldwide Ltd., a London-based aviation
forecaster and data provider.
6) “There will be a shortage of pilots, and this is going to last for a while because it takes time to
produce a good pilot,” said Elmer Pena, president of the Airline Pilots Association of the
Philippines. Philippine Airlines Inc. canceled flights in July and August and rebooked
passengers after losing 27 pilots to higher paying jobs abroad.
7) The demand in Asia contrasts with the 4,500 U.S. airline pilots on furlough, according to
figures compiled by Kit Darby, a retired United Airlines pilot now running an Atlanta-based
consulting firm. That situation shouldn’t last long. The global fleet of cargo and large
passenger planes will double to nearly 32,000 by 2028 from 15,750 last year, according to
Airbus.
8) The major U.S. airlines are expected to hire more than 40,000 pilots in the next 12 years,
said Louis Smith, president of FltOps.com, which provides career counseling services and
sponsors job fairs.
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PremAir, Inc 2010
9) World passenger traffic is expected to increase an average of 4.7 percent a year between
2009 and 2028, according to Airbus.

4.1 Competition and Buying Patterns

VASERCO FTC has direct competition from INSERT NAME(S). VASERCO FTC offers a far more
personalized service at about 1/3 less the cost. The firm also has an excellent relationship with
the FAA, while some of the lesser known and less experienced competition does not. VASERCO
FTC has the ability to be an outsourced training center for any airline, while providing customers
with a tremendous savings in expense. Airlines appreciate the training the firm’s graduates
receive because the training includes experience instructors with customized training for the
specific airplane model.

5.0 Web Plan Summary

VASERCO FTC already has a fully operational website, located at VASERCO FTC.com. The
website describes the training offerings, crew leasing opportunities, provides an online student
application, provides background information for TSA and Visa-related situations, provides a
login section for students and instructors, offers updates on current job offerings, and provides
complete company contact information. The firm does plan to expand and improve the website
to allow for better positioning in the web search engines (i.e. Google, Yahoo, etc.). In addition,
the firm plans to add blogs that offer a better explanation of training offered and job
opportunities.

6.0 SWOT Analysis

Strengths

 The business has been fully operational for 12 years

 The manager has over 40 years of experience in the aviation industry and has built up
excellent relationships with various airlines, corporate business jet owners, and the FAA
 Customized service and relationship-based focus that will help build strong customer loyalty

Weaknesses

 Limited capital, seeking $280,000 in funding

Opportunities

 Strengthen relations with existing referral sources of previous and current students.
 Take advantage of any opportunities to train pilots from the global aviation needs in more
growth-oriented counties such as Brazil, India, China, and Vietnam.

Threats

 Larger competitors could start a price war, which could cause downward pressure on training
price ranges and reduce the business’ ability to generate a profit.
 The recession and uncertainty over unemployment, housing prices, federal income tax rates,
and the changes in health care insurance coverage might cause some employers to reduce
the travel costs associated with their business need, reducing the need for more pilots.
 The threat of a terrorist attack still threatens the U.S. and could potentially derail air travel or
cause changes in airport security that would anger the travelling public.
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PremAir, Inc 2010

6.1 Competitive Edge

The company competes primarily on its ability to offer a reasonably priced pilot training course
that is convenient, comfortable, customized, and is affordable for its students.

6.2 Marketing Strategy

The property will advertise using the following methods:

 Sales calls to build referrals from existing students and alumni

 Signage at the location
 Attractive website that generates contact information of potential students
 Low-cost online advertisement at sites frequently visited by the student profile
 Word of mouth referrals from airline carriers
 Web based email marketing letters

 Advertising on various aviation web sites

 Advertising in aviation based magazines

6.3 Sales Strategy

The CEO and proposed sales executive will be responsible for all activities related to sales efforts.
The team will highlight the school’s time in business, the attractive pricing of the training, the
comfort level and customization of the training, and the satisfaction of previous students.

6.4 Sales Forecast

Table: Sales Forecast

The firm expects to generate $550,000 in revenue in year 1 (beginning January 1, 2011), with an
increase in sales to $1,100,000 in year 2. In ’09, the firm generated $401,000 in sales.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Sales $549,729 $1,100,000 $1,500,000
Total Sales $549,729 $1,100,000 $1,500,000

Direct Cost of Sales Year 1 Year 2 Year 3

COGS $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

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PremAir, Inc 2010

Chart: Sales by Month

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PremAir, Inc 2010

Chart: Sales by Year

6.5 Milestones

Table: Milestones

Milestones
Start Date End Date
Receive Grant 1/1/11 6/15/11
Funding
Hire Employees 6/15/11 7/1/11
Equip Offices 7/1/11 7/15/11
Begin Marketing 7/15/11 8/15/11
Plan

7.0 Management Summary

INSERT NAME serves as the President and CEO, managing all daily business operations. INSERT
NAME serves as Vice President. INSERT NAME is the other key employee of the company.

INSERT DNAME has over 40 years of experience in the field of aviation. He began his career as a
military pilot and went on to serve as a pilot for a major FAR Part 121 air carrier. He later went
on to serve as a Contract Administrator, Check Airman, and Instructor Pilot for several overseas
carriers. In 1987, he served as an Instructor Pilot for the Boeing Company.

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PremAir, Inc 2010
He went on to establish his own training company, International Aviation Consultants, a company
specializing in helping air carriers in foreign countries with few resources to build safe and
efficient operations. He served as Pres. CEO, instructor, and IOE pilot while running this business
for several years. He also wrote training programs to help IAC become one of the first Part 61
Training Centers training in high technology ‘glass cockpit’ aircraft.

Since 1994, he has founded, owned, and operated VASERCO FTC, an FAA 142 Training Center.
INSERT NAME is a retired Airline Transport Pilot, rated on the B707, B727, B737, B757, B767,
B747, and DC 10. He currently has more than 25,000 hours in these planes. He has a BA in
Psychology from [STATE] University.

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PremAir, Inc 2010

7.1 Personnel Plan

Table: Personnel

Most personnel will be employees, with the exception of the classroom instructors, who will be
independent contractors.

Personnel Plan
Year 1 Year 2 Year 3
President, $78,000 YR 1 $78,000 $80,340 $82,750
Key Employee, $38,400 YR 1 $38,400 $39,552 $40,739
New Sales Executive, $75,000 YR 1 $75,000 $77,250 $79,568
New Operations Specialist, $45,000 YR 1 $65,004 $66,950 $68,959
New P/T Employee for [CITY] Office, $36,000 $36,000 $37,080 $38,192
YR 1
New P/T Employee for LV Office, $36,000 YR $36,000 $37,080 $38,192
1
Total People 6 6 6

Total Payroll $328,404 $338,252 $348,400

8.0 Financial Plan

VASERCO FTC is requesting $280,000 in grant funding in order to hire the personnel and purchase
assets needed to expand the firm’s training offerings as well as expand the firm’s market
presence in the U.S., China, India, Central America, and South America.

The borrower provided the basic assumptions for the projections.

8.1 Start-up Funding

The majority of the project cost involves purchasing the property and providing 3 years of salaries
for the proposed property manager and assistant property manager.

Table: Start-up Funding

Start-up

Hire Professional Sales Executive $75,000

Hire Operations Specialist $65,000
Purchase Office Equipment (6 PC, 2 Servers, etc.) $10,000
Marketing & Advertising $60,000
Create FAA-Required Training Offices in [CITY] $18,000
and LV
Expand Training Programs to Boeing 777 Aircraft $52,000
Total Start-up Expenses $280,000

Total Requirements $280,000

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PremAir, Inc 2010
8.2 Break-even Analysis

The business needs to produce $43,850 in monthly rental income in order to break-even.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $43,850

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $43,850

Chart: Break-Even Analysis

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PremAir, Inc 2010

8.3 Projected Profit and Loss

The Company’s sales for Year 1, Year 2, and Year3 are $549,729, $1,100,000 and $1,500,000,
respectively. The net profit for this period is $16,470, $390,613, and $659,231, respectively;
while the net profit/sales is and 3.00%, 35.51%, and 43.95%, respectively.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $549,729 $1,100,000 $1,500,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $549,729 $1,100,000 $1,500,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $328,404 $338,252 $348,400
Marketing/Promotion $2,400 $2,472 $2,546
Depreciation $0 $0 $0
Phone/Fax $3,600 $3,708 $3,819
Insurance $12,000 $12,360 $12,731
Legal $12,000 $12,360 $12,731
Rent & Utilities $37,200 $38,316 $39,465
Office Expense $1,200 $1,236 $1,273
Office Supplies $600 $618 $637
Repair & Maintenance $600 $618 $637
Web Design $1,200 $1,236 $1,273
Travel $18,000 $18,540 $19,096
Auto Expense $9,000 $9,270 $9,548
Accounting $12,000 $12,360 $12,731
Administrative Expenses $36,000 $37,080 $38,192
Instructor and Class Room Costs $51,996 $53,556 $55,163

Total Operating Expenses $526,200 $541,982 $558,242

Profit Before Interest and Taxes $23,529 $558,018 $941,758

EBITDA $23,529 $558,018 $941,758
Interest Expense $0 $0 $0
Taxes Incurred $7,059 $167,405 $282,527

Net Profit $16,470 $390,613 $659,231

Net Profit/Sales 3.00% 35.51% 43.95%

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PremAir, Inc 2010

Chart: Profit Monthly

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Chart: Profit Yearly

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PremAir, Inc 2010
Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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8.4 Projected Cash Flow

The table below shows the firm’s operating cash flow, which is expected to produce $34,308 in net
operating cash flow in year 1. Additionally, the Company has applied for a grant of $280,000.
It expects to get the grant funding during the second quarter of 2011.

Table: Operating Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $549,729 $1,100,000 $1,500,000
Subtotal Cash from Operations $549,729 $1,100,000 $1,500,000

Additional Cash Received

Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $549,729 $1,100,000 $1,500,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $328,404 $338,252 $348,400
Bill Payments $187,017 $358,469 $482,405
Subtotal Spent on Operations $515,421 $696,721 $830,805

Additional Cash Spent

Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $515,421 $696,721 $830,805

Net Cash Flow $34,308 $403,279 $669,195

Cash Balance $34,308 $437,587 $1,106,782

Chart: Cash Flow

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PremAir, Inc 2010
8.5 Projected Balance Sheet

The property’s balance sheet is expected to accumulate $34,308 in the cash balance by the end of
the 1st year.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $34,308 $437,587 $1,106,782
Other Current Assets $0 $0 $0
Total Current Assets $34,308 $437,587 $1,106,782

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $34,308 $437,587 $1,106,782

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $17,838 $30,504 $40,469
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $17,838 $30,504 $40,469

Long-term Liabilities $0 $0 $0
Total Liabilities $17,838 $30,504 $40,469

Paid-in Capital $280,000 $280,000 $280,000

Retained Earnings ($280,000) ($263,530) $127,083
Earnings $16,470 $390,613 $659,231
Total Capital $16,470 $407,083 $1,066,314
Total Liabilities and Capital $34,308 $437,587 $1,106,782

Net Worth $16,470 $407,083 $1,066,314

8.6 Business Ratios

Table: Ratios

The property is expected to produce a net profit margin of 3% during the first year.

Ratio Analysis
Year 1 Year 2 Year 3
Sales Growth n.a. 100.10% 36.36%

Percent of Total Assets

Total Current Assets 100.00% 100.00% 100.00%
Long-term Assets 0.00% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00%

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PremAir, Inc 2010
Current Liabilities 51.99% 6.97% 3.66%
Total Liabilities 51.99% 6.97% 3.66%
Net Worth 48.01% 93.03% 96.34%

Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00%
Selling, General & Administrative 97.00% 64.49% 56.05%
Expenses
Advertising Expenses 0.44% 0.22% 0.17%
Profit Before Interest and Taxes 4.28% 50.73% 62.78%

Main Ratios
Current 1.92 14.35 27.35
Quick 1.92 14.35 27.35
Total Debt to Total Assets 51.99% 6.97% 3.66%
Pre-tax Return on Net Worth 142.86% 137.08% 88.32%
Pre-tax Return on Assets 68.58% 127.52% 85.09%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 3.00% 35.51% 43.95%
Return on Equity 100.00% 95.95% 61.82%

Activity Ratios
Accounts Payable Turnover 11.48 12.17 12.17
Payment Days 27 24 26
Total Asset Turnover 16.02 2.51 1.36

Debt Ratios
Debt to Net Worth 1.08 0.07 0.04
Current Liab. to Liab. 1.00 1.00 1.00

Liquidity Ratios
Net Working Capital $16,470 $407,083 $1,066,314
Interest Coverage 0.00 0.00 0.00

Additional Ratios
Assets to Sales 0.06 0.40 0.74
Current Debt/Total Assets 52% 7% 4%
Acid Test 1.92 14.35 27.35
Sales/Net Worth 33.38 2.70 1.41
Dividend Payout 0.00 0.00 0.00

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 Appendix

Table: Sales Forecast

Sales
Forecast
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales
Sales $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Income
Total Sales $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417

Direct Cost Month Month Month Month Month Month Month Month Month Month Month Month
of Sales 1 2 3 4 5 6 7 8 9 10 11 12
COGS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other COGS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Direct Cost
of Sales

Page 1
 Appendix

Table: Personnel
Personnel
Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
President, $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
$78,000 YR 1
Key $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200
Employee,
$38,400 YR 1
New Sales $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250
Executive,
$75,000 YR 1
New $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Operations
Specialist,
$45,000 YR 1
New P/T $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Employee for
Satellite
Offices,
$36,000 YR 1
New P/T $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Employee for
Satellite
Offices,
$36,000 YR 1
Total People 6 6 6 6 6 6 6 6 6 6 6 6

Total Payroll $27,36 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367
7

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 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367
Marketing/Promotion $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Phone/Fax $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Legal $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent & Utilities $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100
Office Expense $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Office Supplies $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Repair & $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Maintenance
Web Design $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Travel $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Auto Expense $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Accounting $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Administrative $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Expenses
Instructor and Class $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333
Room Costs

Total Operating $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850 $43,850
Expenses

Profit Before Interest ($2,600) ($2,600) ($2,600) $1,983 $1,983 $1,983 $1,983 $1,983 $1,983 $6,297 $6,567 $6,567
and Taxes
EBITDA ($2,600) ($2,600) ($2,600) $1,983 $1,983 $1,983 $1,983 $1,983 $1,983 $6,297 $6,567 $6,567
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($780) ($780) ($780) $595 $595 $595 $595 $595 $595 $1,889 $1,970 $1,970

Net Profit ($1,820) ($1,820) ($1,820) $1,388 $1,388 $1,388 $1,388 $1,388 $1,388 $4,408 $4,597 $4,597

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Net Profit/Sales -4.41% -4.41% -4.41% 3.03% 3.03% 3.03% 3.03% 3.03% 3.03% 8.79% 9.12% 9.12%

Table: Cash Flow

Pro Forma
Cash Flow
Month Month 2 Month 3 Month Month Month Month Month Month Month Month Month
1 4 5 6 7 8 9 10 11 12
Cash Received

Cash from
Operations
Cash Sales $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
Subtotal Cash $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
from
Operations

Additional
Cash Received
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received
Subtotal Cash $41,250 $41,250 $41,250 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $50,147 $50,417 $50,417
Received

Expenditures Month Month 2 Month 3 Month Month Month Month Month Month Month Month Month
1 4 5 6 7 8 9 10 11 12

Expenditures
from
Operations
Cash Spending $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367 $27,367
Bill Payments $523 $15,703 $15,703 $15,749 $17,078 $17,078 $17,078 $17,078 $17,078 $17,121 $18,375 $18,453
Subtotal Spent $27,890 $43,070 $43,070 $43,116 $44,445 $44,445 $44,445 $44,445 $44,445 $44,488 $45,742 $45,820
on Operations
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 Appendix

Additional
Cash Spent
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current
Assets
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $27,890 $43,070 $43,070 $43,116 $44,445 $44,445 $44,445 $44,445 $44,445 $44,488 $45,742 $45,820
Spent

Net Cash Flow $13,360 ($1,820) ($1,820) $2,717 $1,388 $1,388 $1,388 $1,388 $1,388 $5,659 $4,675 $4,597
Cash Balance $13,360 $11,540 $9,720 $12,437 $13,825 $15,213 $16,601 $17,989 $19,377 $25,036 $29,711 $34,308

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Table: Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets

Current
Assets
Cash $13,360 $11,540 $9,720 $12,437 $13,825 $15,213 $16,601 $17,989 $19,377 $25,036 $29,711 $34,308
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Total $13,360 $11,540 $9,720 $12,437 $13,825 $15,213 $16,601 $17,989 $19,377 $25,036 $29,711 $34,308
Current
Assets

Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Total Assets $13,360 $11,540 $9,720 $12,437 $13,825 $15,213 $16,601 $17,989 $19,377 $25,036 $29,711 $34,308

Liabilities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
and Capital

Current
Liabilities
Accounts $15,180 $15,180 $15,180 $16,509 $16,509 $16,509 $16,509 $16,509 $16,509 $17,760 $17,838 $17,838
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $15,180 $15,180 $15,180 $16,509 $16,509 $16,509 $16,509 $16,509 $16,509 $17,760 $17,838 $17,838
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $15,180 $15,180 $15,180 $16,509 $16,509 $16,509 $16,509 $16,509 $16,509 $17,760 $17,838 $17,838
Liabilities

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 Appendix

Paid-in $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000
Capital
Retained ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000 ($280,000
Earnings ) ) ) ) ) ) ) ) ) ) ) )
Earnings ($1,820) ($3,640) ($5,460) ($4,072) ($2,684) ($1,296) $92 $1,480 $2,869 $7,276 $11,873 $16,470
Total Capital ($1,820) ($3,640) ($5,460) ($4,072) ($2,684) ($1,296) $92 $1,480 $2,869 $7,276 $11,873 $16,470
Total $13,360 $11,540 $9,720 $12,437 $13,825 $15,213 $16,601 $17,989 $19,377 $25,036 $29,711 $34,308
Liabilities
and Capital

Net Worth ($1,820) ($3,640) ($5,460) ($4,072) ($2,684) ($1,296) $92 $1,480 $2,869 $7,277 $11,873 $16,470

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