COMPANY NAME

Business Plan

INSERT IMAGE/LOGO

ADDRESS/CONTACT INFO
 Confidentiality Agreement

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

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 COMPANY NAME.

Upon request this document is to be immediately returned to COMPANY NAME.

___________________
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

Chart: Highlights...................................................................................2
1.1 Objectives..........................................................................................2
1.2 Mission..............................................................................................2
1.3 Keys to Success..................................................................................3
2.0 Company Summary................................................................................3
2.1 Company Ownership............................................................................3
2.2 Start-up Summary..............................................................................3
Table: Start-up......................................................................................4
Chart: Start-up......................................................................................4
3.0 Services...............................................................................................5
4.0 Market Analysis Summary.......................................................................5
4.1 Market Segmentation...........................................................................5
Table: Market Analysis............................................................................5
Chart: Market Analysis (Pie)....................................................................6
4.2 Target Market Segment Strategy...........................................................6
4.3 Service Business Analysis.....................................................................6
4.3.1 Competition and Buying Patterns.....................................................7
5.0 Strategy and Implementation Summary....................................................7
5.1 SWOT Analysis....................................................................................7
5.1.1 Strengths.....................................................................................7
5.1.2 Weaknesses..................................................................................8
5.1.3 Opportunities................................................................................8
5.1.4 Threats........................................................................................8
5.2 Competitive Edge................................................................................8
5.3 Marketing Strategy..............................................................................8
5.4 Sales Strategy....................................................................................9
5.4.1 Sales Forecast...............................................................................9
Table: Sales Forecast...........................................................................9
Chart: Sales Monthly.........................................................................10
Chart: Sales by Year..........................................................................10
5.5 Milestones........................................................................................10
Table: Milestones.................................................................................11
Chart: Milestones.................................................................................11
6.0 Management Summary.........................................................................12
6.1 Personnel Plan..................................................................................12
Table: Personnel..................................................................................12
7.0 Financial Plan......................................................................................13
7.1 Start-up Funding...............................................................................13
Table: Start-up Funding........................................................................13
7.2 Important Assumptions......................................................................14
7.3 Break-even Analysis..........................................................................14
Table: Break-even Analysis....................................................................14
Chart: Break-even Analysis...................................................................15
7.4 Projected Profit and Loss....................................................................15
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 Table of Contents

Table: Profit and Loss...........................................................................16

Chart: Profit Monthly............................................................................17
Chart: Profit Yearly...............................................................................17
Chart: Gross Margin Monthly..................................................................18
Chart: Gross Margin Yearly....................................................................18
7.5 Projected Cash Flow...........................................................................19
Table: Cash Flow..................................................................................19
Chart: Cash.........................................................................................20
7.6 Projected Balance Sheet.....................................................................20
Table: Balance Sheet............................................................................20
7.7 Business Ratios.................................................................................21
Table: Ratios.......................................................................................21
Table: Sales Forecast...................................................................................1
Table: Personnel.........................................................................................2
Table: Personnel.........................................................................................2
Table: Profit and Loss..................................................................................3
Table: Profit and Loss..................................................................................3
Table: Cash Flow.........................................................................................4
Table: Cash Flow.........................................................................................4
Table: Balance Sheet...................................................................................6
Table: Balance Sheet...................................................................................6

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1.0 Executive Summary

COMPANY NAME
ADDRESS/CONTACT INFO

Introduction: COMPANY NAME is a start-up managed by OWNER’S NAME. She has several years
in extensive experience in the child care industry, and has maintained excellent reputations in this
same industry. In addition, OWNER’S NAME is capable of handling the sales/management and
finance/administration areas, respectively.

Company/Service: COMPANY NAME, a start-up company, is a mid-size child care facility serving
children from 6 weeks to ten years of age. Services includes teaching tools to prepare the children
for the public school systems, provide a safe and secure environment, and providing the parents with
an excellent place where their children can be taken care of. COMPANY NAME will succeed by offering
its clients' children a safe and secure care environment, and close personal attention.  The goals of
the center are dual-sided:  to help parents feel good about the care of their children, and to make it
a safe, educational, and fun experience for the child. COMPANY NAME’s competitive edge is the
facility's effort in obtaining all appropriate licensing and certifications.  Additionally, thorough pre-hire
background screenings are performed on all individuals before hired for employment. 

The Market: There are an increasing amount of families who have become dependent on two
incomes, which has created the necessity of the child care industry. There are over 200 facilities in
the area that provide similar services; each of these has a large client base, and a lucrative business.
There is no doubt that there is room in the market for a high quality child care facility. COMPANY
NAME will provide day care services to a new and growing west end of [CITY], [STATE].  The
population growth rate in the West [CITY] area of [COUNTY] County has double in the past 10 years
and currently continues to grow along with commercial businesses.  With this business growth it will
lead to an anticipated population growth. There are many centers that provide quality care for
children in the same area as COMPANY NAME. The company is confident that this will be a successful
venture because of the quality of its managers and the capability of its Care Staff. Day care centers
within a 5 mile radius of the COMPANY NAME location do not provide meals (breakfast & lunch) they
only serve snacks.  Parents are required to bring sack lunch for their child. With COMPANY NAME's
below average childcare fees and providing hot meals this will differentiate them from surrounding
child care centers

Financial Considerations: The current financial plan for COMPANY NAME is to obtain grant funding
in the amount of $300,000. The grant will be used to purchase and build-out a child day care facility.

The major focus for grant funding is as follows:

 100% Women owned

 Build-out facility with new green child safe equipment
 Help the underprivileged local community with daycare
 Child development programs

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Chart: Highlights

Highlights

$280,000

$240,000

$200,000
Sales
$160,000
Gross Margin
$120,000
Net Profit
$80,000

$40,000

$0

($40,000)
Year 1 Year 2 Year 3

1.1 Objectives

 The objectives for the first three years of operation include:

 To create a service based operation whose primary goal is to exceed customer's expectations.

 To increase the number of client each year

 To develop a sustainable, profitable, start-up business

1.2 Mission

COMPANY NAME is a start-up managed by OWNER’S NAME. She has several years in extensive
experience in the child care industry, and has maintained excellent reputations in this same
industry. In addition, OWNER’S NAME is capable of handling the sales/management and
finance/administration areas, respectively.

1.3 Keys to Success

Keys to success for the company will include:

1. Maintaining a reputable and untarnished reputation in the community.

2. Quality care.

3. Competitive pricing.

4. Flexible hours.

5. Provide nutritionally balanced hot meals (breakfast & lunch & snacks)

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2.0 Company Summary

COMPANY NAME, a start-up company, is a mid-size child care facility serves children from 6
weeks to ten years of age. Services includes teaching tools to prepare the children for the public
school systems, provide a safe and secure environment, and providing the parents with an
excellent place where their children can be taken care of. 

2.1 Company Ownership

OWNER’S NAME is 100% sole owner of COMPANY NAME

2.2 Start-up Summary

Start-up Expenses:
Legal    $ 1,000
Stationery    $ 250
Brochures   $ 500
Insurance         $ 1,500
Food preparation $ 2,000
equipment           
Rent                  $ 4,500
Consultants                 $ 1,000
Playground Equipment        $ 3,500
Playground prep           $ 700
Playground fence        $ 4,000
Furnishings        $ 7,500
Toys                    $ 3,000
Build out         $ 12,000
Building Signs        $ 4,000
Office equipment    $ 2,000
Vehicles (2)      $ 70,000
Total Start-up Expenses     $117,450

The funds will be used to purchase vehicles (2) for center to pick up after school care children. 
Additional funds will be use as working capital until center starts making a profit.   

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Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $1,000
Stationery/Brochures $750
Insurance $1,500
Rent $4,500
Play ground prep $700
Consultants $1,000
Built out $12,000
Total Start-up Expenses $21,450

Start-up Assets
Cash Required $182,550
Other Current Assets $0
Long-term Assets $96,000
Total Assets $278,550

Total Requirements $300,000

Chart: Start-up

Start-up

$300,000

$270,000

$240,000

$210,000

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0
Expenses Assets Investment Loans

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3.0 Services

•         Full-time Child Day Care

•         Part-time/After School Care (including drop-off and pick-ups)

•         After School Tutoring

•         Drop-In Care

4.0 Market Analysis Summary

There are an increasing amount of families who have become dependent on two incomes, which
has created the necessity of the child care industry. There are over 200 facilities in the area that
provide similar services; each of these has a large client base, and a lucrative business. There is
no doubt that there is room in the market for a high quality child care facility. COMPANY NAME
will provide day care services to a new and growing west end of [CITY], [STATE].  The population
growth rate in the West [CITY] area of [COUNTY] County has double in the past 10 years and
currently continues to grow along with commercial businesses.  With this business growth lead
me to anticipate more population growth.

4.1 Market Segmentation

COMPANY NAME will be concentrating on two different target customer segments.  The first is
full-time working couples.  This group is forecasted to account for 90% of COMPANY NAME's
business.  The second group of customers are drop-in/after school care (pick-up) is forecasted to
account for 10% of business.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
full-time working 12% 125,645 140,722 157,609 176,522 197,705 12.00%
couples
drop-in/after 16% 112,141 130,084 150,897 175,041 203,048 16.00%
school care
(pick-up)
Total 13.94% 237,786 270,806 308,506 351,563 400,753 13.94%

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Chart: Market Analysis (Pie)

Market Analysis (Pie)

full-time working couples

drop-in/after school care (pick-up)

4.2 Target Market Segment Strategy

With inflation continuing to rise each year, the typical American family now requires dual or
supplement incomes.  This trend has created a need for quality child care services.  The
population growth rate in the West [CITY] area of [COUNTY] County has double in the past 10
years and currently continues to grow with commercial businesses. With this business growth
lead me to anticipate more population growth.  Price, reputation, service and certification are
critical success factors in the child care industry.  COMPANY NAME will complete well in this
market by offering competitive prices, high-quality child care services, nutrition and food
services, promote child growth and development, and education programs with certified
personnel.  

Referral marketing is the key type of marketing strategy utilized. Maintaining and further
enhancing its reputation in the community is crucial to gaining additional market share of this
target market.

4.3 Service Business Analysis

The child care business is lucrative, as mentioned before. As a result, there are many centers
that provide quality care for children in the same area as COMPANY NAME. The child care
industry is split between large, commercially-run centers and smaller, locally-owned centers.
COMPANY NAME will compete with the small care centers; this is where the main competition lies.
The company is confident that this will be a successful venture because of the quality of its
managers and the capability of its Care Staff. Day care centers within a 5 mile radius of  the
COMPANY NAME location do not provide meals (breakfast & lunch) they only serve snacks. 
Parents are required to bring sack lunch for their child. With COMPANY NAME's below average
child care fees and providing hot meals this will differentiate them from surrounding child care
centers.

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4.3.1 Competition and Buying Patterns

There are over 200 child care providers in the local area.  The large commercial chain child care
centers, such as COMPETITION NAME, have a majority of the market share.  This large chain
competes well because of a good reputation among the consumer market.  COMPANY NAME will
offer a lower staff to child ratio, which is appealing to most parents.  Additionally, COMPANY
NAME maintains child care fee levels that are 5 - 10% below the average of that of the large
commercial chain and local church child care fees. 

COMPANY NAME will succeed by offering its clients' children a safe and secure care environment,
and close personal attention.  The goals of the center are dual-sided:  to help parents feel good
about the care of their children, and to make it a safe, educational, and fun experience for the
child. Child care competitive edge is the facility's effort in obtaining all appropriate licensing and
certifications.  Additionally, thorough pre-hire background screenings are performed on all
individuals before hired for employment. 

Additionally COMPANY NAME will have two programs to serve as a significant competitive edge:

Specialized training- The facility can only be as good as the teachers and assistants. With this
in mind, The COMPANY NAME has a specialized training program that all teachers and assistants
are put through so they are proficient at teaching the specific programs that The COMPANY NAME
has developed.

Innovative learning programs- Typical learning programs for toddlers this age focus on
specific traits and only work on one trait/ skill at once. While this is successful in reinforcing the
skill, it is often very difficult for the child to appreciate the interrelationships of the different skills.
Consequently, the child can learn the skill, but has difficulty applying the skill when faced with
multiple stimuli. When the child is unsure of what to do because of the multiple stimuli and these
several skills that they have learned independently, the child tends to shut down out of
confusion.

5.0 Strategy and Implementation Summary

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 below are achieved. 

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing COMPANY NAME.

5.1.1 Strengths

 Strong relationships with the local community

 Excellent and stable staff, offering personalized care.
 Great space that offers a positive and attractive, inviting atmosphere. 
 Good referral relationships
 High loyalty among the local community
 employee benefits
 pre-hire background screenings are performed on all individuals before hired for employment
 provide nutritionally balanced hot meals (breakfast & lunch & snacks)

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2011
5.1.2 Weaknesses

 Access to additional operating capital

5.1.3 Opportunities

 Growing market with a significant percentage of our target market still not knowing we exist.
 Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach
 Increasing sales opportunities beyond our "5-mile" target area
 Internet potential for marketing and advertising

5.1.4 Threats

 Additional downturn in the economy

 Expansion of national day care centers into the local market
 Continued price pressure due to competition or the weakening market reducing contribution
margins
 Employee turnover

5.2 Competitive Edge

Maintaining a reputable and untarnished reputation in the community, quality care, competitive
pricing, flexible hours, provide nutritionally balanced hot meals (breakfast & lunch & snacks), and
profitability. Day care centers within a 5 mile radius of my location does not provide meals
(breakfast & lunch) they only serve snacks.  Parents are required to bring sack lunch for their
child.  With COMPANY NAME's below average child care fees and providing hot meals this will
differentiate them from surrounding child care centers.

5.3 Marketing Strategy

 1) Radio advertising - radio spots will be used to get COMPANY NAME's name out to the
community. Since our target market is the working parents we will run radio spots during their
morning and afternoon drive time Monday thru Friday.  Spots will also drive the parent to our
website.

 2) Direct Mail - Quarterly direct mail campaigns will be send to the housing developments in a
10 mile radius of COMPANY NAME's location.  We will also offer monthly calendars for parents
noting special activities and events for children at center.

 3) Website - the website strategy will be presenting a very well designed and informative Web
presence that will market COMPANY NAME image, service offerings and community commitment. 
It will showcase the center, curriculum and activity calendar for the school.  It will give the
visitors a good idea of the level of quality and service they can come to expect from the child
care center.

 4) Visible Signs - We will place large visible sign by busy street in front of COMPANY NAME’s
building plus a large sign will be placed on child care building.  Company logo will be incorporated
on signs.  The design will very eye catching.

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2011
5.4 Sales Strategy

The sales strategy will be targeting double income working professional families. The sales
strategy will be based on a communication effort to explain the virtues of the program and how
time at COMPANY NAME's can speed up the children's development considerably. In addition to
one on one explanation of the program and its merits, the prospective parents will be given tours
of the facilities.

COMPANY NAME's payment policy is that services will be paid in advance.  Services can be paid
weekly, bi-weekly, semi-monthly, or monthly.  This payment arrangement will be agreed upon at
time of enrollment in writing.  If payment is not received by second day of pay week, the child
will lose its space in the center. COMPANY NAME will accept cash, checks and government
vouchers.  Government vouchers will consist only 20% of monthly revenue

5.4.1 Sales Forecast

For the first year of operation, COMPANY NAME has assumed a conservative enrollment due to
the fact that school, aftercare and child care placement has already taken place for the school
year and most parents will be comfortable with their current arrangements. Consequently, they
expect initial enrollment to be far less than anticipated future year levels. Sales are expected to
be $123,181, $233,000, and $303,000 in years 1, 2, and 3, respectfully.

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Full-Time Child $57,020 $103,000 $136,000
Part-time Children $41,126 $85,000 $110,000
Drop-in $25,035 $45,000 $57,000
Total Sales $123,181 $233,000 $303,000

Direct Cost of Sales Year 1 Year 2 Year 3

Row 1 $0 $0 $0
Row 2 $0 $0 $0
Row 3 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

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 2 Month
1 Month 3
COMPANY NAME
2011

MonthMonth
Chart: Sales Monthly

Sales Monthly

$16,000

$14,000

$12,000
Full-Time Child
$10,000
Part-time Children
$8,000
Drop-in
$6,000

$4,000

$2,000

$0

Chart: Sales by Year

Sales by Year

$280,000

$240,000
Full-Time Child
$200,000
Part-time Children
$160,000
Drop-in
$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

5.5 Milestones

In order to achieve the growth and marketing goals that have been outlined in this business
plan, the Company has deadlines to meet and ideas to implement. Some of these are outlined below:

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2011
 Hiring new employees
 Build-out of the new building
 Aggressive marketing in year 1
 Completing all details of the care facility
 Securing grant funds
 Opening date

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Secure grant funds 3/1/2011 3/1/2011 Mary C. Culpepper Owner
Hire employees 4/1/2011 5/1/2012 $65,100 Mary C. Culpepper Owner
Marketing/Advertising 4/1/2011 3/31/2012 $30,000 Mary C. Culpepper Owner
Build out 3/1/2011 4/9/2011 $12,000 Mary C. Culpepper Owner
Open Care Center 12/17/2010 12/17/2010 $0 Mary C. Culpepper Owner
Complete Care Center 3/1/2011 4/29/2011 $35,450 Mary C. Culpepper Owner
Totals $142,550

Chart: Milestones

Milestones

Secure grant funds

Hire employees

Marketing/Advertising

Build out

Open Care Center

Complete Care Center

Q1 `11 Q2 Q3 Q4 Q1 `12 Q2

6.0 Management Summary

OWNER’S NAME, owner will be responsible for all operational aspects of the business.  She will
serve as Business Manager and will hire a Director, INSERT NAME, a veteran in the education and
child care industry.  After obtaining her BA degree in education and law OWNER’S NAME worked
in the teaching field for over 3 years and then entered the child care industry and spent four (4)
years at the Child Care Development Center.  She helped grow the business from a $60,000 in

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yearly revenue to over $400,000 yearly.  INSERT NAME has contacts that will assist in marketing
Alphabet Academy to increase enrollment.  With HR management and accounting experience
combined with INSERT NAME extensive experience in the child care industry, together they will
handle day-to-day operations of the business and will collaboratively to ensure that this business
venture is a success.  As owner OWNER’S NAME will have final decisions of the employee
management.  She will interview, hire/fire employees, purchase equipment & supplies, practice
sales, bill clients, observe daily financial information, assist in maintaining a website, and assist in
the day care center as needed.  As stated, she has 20 years Human Resources experience, 15
years of working experience in the accounting field, and have served as Business Manager in a
various business environments.

6.1 Personnel Plan

Personnel Salaries: 2011 2012 2013

Director – FT $24,960 25,960 27.000
Instructor – FT $14,400 15,400 17,400
Staff/caregiver – PT $8.00 x 30hrs wk $12,480 (2) 24,960 24,960
Staff/caregiver – PT $8.50 x 30 wk $13,260 (2) 26,520 26,520
Staff/caregiver – PT $9.x 30hrs wk 14,040 14,040
Staff/caregiver – PT $9.50 x 30 hrs wk 14,820
Staff/caregiver – PT $8 x 20 hrs wk $ 8,320 8,320 (3) 24,960

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Director $24,960 $25,960 $27,000
Instructor $14,400 $15,400 $17,400
Staff/caregiver $34,060 $73,840 $105,300
Total People 4 8 11

Total Payroll $73,420 $115,200 $149,700

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2011

7.0 Financial Plan

The current financial plan for COMPANY NAME is to obtain grant funding in the amount of
$300,000. The grant will be used to purchase and build-out a child day care facility.

The following sections of this plan will serve to describe the Company's financial plan in more
detail:

 General Assumptions
 Break-even Analysis
 Profit and Loss
 Cash Flow
 Balance Sheet
 Ratios

7.1 Start-up Funding

The grant funds will be used to startup of a new business. See start up expenses listed in the
start-up summary. Remaining funds will be used as working capital. Much of the start-up
expense is the build-out of the new facility as well as outfitting that facility with all the amenities
need to be a viable competitor in this market.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $21,450
Start-up Assets to Fund $278,550
Total Funding Required $300,000

Assets
Non-cash Assets from Start-up $96,000
Cash Requirements from Start-up $182,550
Additional Cash Raised $0
Cash Balance on Starting Date $182,550
Total Assets $278,550

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

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 COMPANY NAME
2011

Capital

Planned Investment
Owner $0
Investor $300,000
Additional Investment Requirement $0
Total Planned Investment $300,000

Loss at Start-up (Start-up Expenses) ($21,450)

Total Capital $278,550

Total Capital and Liabilities $278,550

Total Funding $300,000

7.2 Important Assumptions

COMPANY NAME is owned by INSERT NAME and will be taxed accordingly, estimated at a 10%

tax rate. Depreciation expense is calculated using straight-line depreciation and is based on the
scheduled additions in the Milestones Table. Insurance, utilities and all other expenses assume a
3% increase due to inflation & other cost variables

7.3 Break-even Analysis

For the Company's break-even analysis for the first year of operations, the monthly revenue
break-even is projected to be $13,881. Sales are projected to increase 89.15% for year 2 and
30.04% in year 3 due to the internal expansion of the Company.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $13,881

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $13,881

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2011
Chart: Break-even Analysis

Break-even Analysis

$9,000

$6,000

$3,000

$0

($3,000)

($6,000)

($9,000)

($12,000)

$0 $4,000 $8,000 $12,000 $16,000 $20,000

$2,000 $6,000 $10,000 $14,000 $18,000 $22,000

7.4 Projected Profit and Loss

The sales for year 1, 2, 3 are $123,181, $233,000 and $303,000, respectively. The Company will
show a Net loss for year 1 in the amount of ($43,390) and a Net Profit for year 2 of $34,897 and
year 3 net profit of $51,735 due to the internal expansion of the Company upon receipt of grant
funds. The Company will show EBITDA of ($40,786) in year 1, $40,128 in year 2 and $58,233 in
year 3. Net Profit to Sales for the 2011 and 2012 period are affected by the internal expansion of
the Company. Net Profit and Net Profit to Sales Percentage will continue to rise in future years as
the internal expansion and investments upgrades to existing properties bear fruit.

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2011
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $123,181 $233,000 $303,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $123,181 $233,000 $303,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $73,416 $115,200 $149,700
Marketing/Promotion $30,000 $15,000 $15,000
Depreciation $2,604 $2,604 $2,604
Rent $27,000 $27,000 $27,000
Utilities $2,796 $2,800 $3,000
Insurance $6,000 $7,000 $8,000
Payroll Taxes $8,076 $12,672 $16,467
Auto $3,996 $4,000 $4,000
Tax/License $1,800 $1,800 $1,800
Repair & Maintenance $1,200 $1,400 $1,800
Other $9,684 $6,000 $18,000

Total Operating Expenses $166,572 $195,476 $247,371

Profit Before Interest and Taxes ($43,390) $37,524 $55,629

EBITDA ($40,786) $40,128 $58,233
Interest Expense $0 $0 $0
Taxes Incurred $0 $2,627 $3,894

Net Profit ($43,390) $34,897 $51,735

Net Profit/Sales -35.22% 14.98% 17.07%

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 COMPANY NAME
2011
Chart: Profit Monthly

Profit Monthly

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

($4,000)

($5,000)

($6,000)

($7,000)

($8,000)
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Profit Yearly

Profit Yearly

$60,000

$40,000

$20,000

$0

($20,000)

($40,000)
Year 1 Year 2 Year 3

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2011
Chart: Gross Margin Monthly

Gross Margin Monthly

$16,000

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Gross Margin Yearly

Gross Margin Yearly

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

Page 18
 COMPANY NAME
2011

7.5 Projected Cash Flow

COMPANY NAME has applied for a grant of $300,000. In 2011, the Company forecast that it
will receive $300,000 in the month of March. After receipt of the Grant Funding, it will use the
grant to rent and build-out a day care facility, as well as, all the amenities and working capital
needed to become a profitable day care facility.

The following table displays the Company's cash flow and the chart illustrates monthly cash flow
in the first year. Monthly cash flow projections are also included in the appendix.

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $123,181 $233,000 $303,000
Subtotal Cash from Operations $123,181 $233,000 $303,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
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 $123,181 $233,000 $303,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $163,968 $195,499 $248,661
Subtotal Spent on Operations $163,968 $195,499 $248,661

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
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 $163,968 $195,499 $248,661

Net Cash Flow ($40,786) $37,501 $54,339

Cash Balance $141,764 $179,265 $233,604

Page 19
 Month
2 Mont
3
COMPANY NAME

MonthMonth
2011

1
Chart: Cash

Cash
$180,000

$160,000

$140,000

$120,000

$100,000 Net Cash Flow

$80,000 Cash Balance

$60,000

$40,000

$20,000

$0

7.6 Projected Balance Sheet

The net worth and total Assets for COMPANY NAME are $235,160, $270,057 and $321,792 for
years 1, 2, 3, respectively.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $141,764 $179,265 $233,604
Other Current Assets $0 $0 $0
Total Current Assets $141,764 $179,265 $233,604

Long-term Assets
Long-term Assets $96,000 $96,000 $96,000
Accumulated Depreciation $2,604 $5,208 $7,812
Total Long-term Assets $93,396 $90,792 $88,188
Total Assets $235,160 $270,057 $321,792

Page 20
 COMPANY NAME
2011

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $300,000 $300,000 $300,000

Retained Earnings ($21,450) ($64,840) ($29,943)
Earnings ($43,390) $34,897 $51,735
Total Capital $235,160 $270,057 $321,792
Total Liabilities and Capital $235,160 $270,057 $321,792

Net Worth $235,160 $270,057 $321,792

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 89.15% 30.04% 13.07%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 53.58%
Total Current Assets 60.28% 66.38% 72.59% 70.11%
Long-term Assets 39.72% 33.62% 27.41% 29.89%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 37.94%

Long-term Liabilities 0.00% 0.00% 0.00% 54.53%
Total Liabilities 0.00% 0.00% 0.00% 92.47%
Net Worth 100.00% 100.00% 100.00% 7.53%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 59.56%
Selling, General & Administrative Expenses 135.22% 85.02% 82.93% 28.35%
Advertising Expenses 24.35% 6.44% 4.95% 1.21%
Profit Before Interest and Taxes -35.22% 16.10% 18.36% 8.19%

Main Ratios
Current 0.00 0.00 0.00 1.24
Quick 0.00 0.00 0.00 1.18
Total Debt to Total Assets 0.00% 0.00% 0.00% 92.47%
Pre-tax Return on Net Worth -18.45% 13.89% 17.29% 696.33%
Pre-tax Return on Assets -18.45% 13.89% 17.29% 52.41%

Page 21
 COMPANY NAME
2011

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -35.22% 14.98% 17.07% n.a
Return on Equity -18.45% 12.92% 16.08% n.a

Activity Ratios
Accounts Payable Turnover 12.41 12.17 12.17 n.a
Total Asset Turnover 0.52 0.86 0.94 n.a

Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a

Liquidity Ratios
Net Working Capital $141,764 $179,265 $233,604 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 1.91 1.16 1.06 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 0.52 0.86 0.94 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 22
 Appendix

Table: Sales Forecast

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Full-Time Child $2,689 $2,958 $3,254 $3,579 $5,069 $4,994 $5,310 $4,733 $5,429 $5,932 $6,088 $6,985
Part-time Children $1,812 $1,993 $2,192 $2,411 $3,706 $3,824 $3,638 $3,530 $3,883 $4,271 $4,698 $5,168
Drop-in $1,025 $1,128 $1,241 $1,365 $2,361 $2,940 $2,771 $1,999 $2,199 $2,419 $2,661 $2,927
Total Sales $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080

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

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 Month Month Month 12
10 11
Director $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080 $2,080
Instructor $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Staff/caregiver $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838 $2,838
Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080
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 $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080
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 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118 $6,118
Marketing/Promotion $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Depreciation $217 $217 $217 $217 $217 $217 $217 $217 $217 $217 $217 $217
Rent $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250
Utilities $233 $233 $233 $233 $233 $233 $233 $233 $233 $233 $233 $233
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Payroll Taxes 11% $673 $673 $673 $673 $673 $673 $673 $673 $673 $673 $673 $673
Auto $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333
Tax/License $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Repair & Maintenance 15% $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Other $807 $807 $807 $807 $807 $807 $807 $807 $807 $807 $807 $807

Total Operating $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881 $13,881
Expenses

Profit Before Interest ($8,355) ($7,802) ($7,194) ($6,526) ($2,746) ($2,123) ($2,161) ($3,619) ($2,370) ($1,259) ($434) $1,199
and Taxes
EBITDA ($8,138) ($7,585) ($6,977) ($6,309) ($2,529) ($1,906) ($1,944) ($3,402) ($2,153) ($1,042) ($217) $1,416
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($8,355) ($7,802) ($7,194) ($6,526) ($2,746) ($2,123) ($2,161) ($3,619) ($2,370) ($1,259) ($434) $1,199
Net Profit/Sales -151.19% -128.34% -107.58% -88.73% -24.66% -18.05% -18.44% -35.27% -20.59% -9.97% -3.23% 7.95%

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
Cash Received

Cash from Operations

Cash Sales $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080
Subtotal Cash from $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080
Operations

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $5,526 $6,079 $6,687 $7,355 $11,135 $11,758 $11,720 $10,262 $11,511 $12,622 $13,447 $15,080

Page 4
 Appendix

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

Expenditures from
Operations
Cash Spending $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664
Subtotal Spent on $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664
Operations

Additional Cash Spent

Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664 $13,664

Net Cash Flow ($8,138) ($7,585) ($6,977) ($6,309) ($2,529) ($1,906) ($1,944) ($3,402) ($2,153) ($1,042) ($217) $1,416
Cash Balance $174,412 $166,827 $159,850 $153,541 $151,012 $149,106 $147,162 $143,760 $141,607 $140,565 $140,348 $141,764

Page 5
 Appendix

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 Starting
Balances

Current Assets
Cash $182,550 $174,412 $166,827 $159,850 $153,541 $151,012 $149,106 $147,162 $143,760 $141,607 $140,565 $140,348 $141,764
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $182,550 $174,412 $166,827 $159,850 $153,541 $151,012 $149,106 $147,162 $143,760 $141,607 $140,565 $140,348 $141,764

Long-term Assets
Long-term Assets $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000 $96,000
Accumulated $0 $217 $434 $651 $868 $1,085 $1,302 $1,519 $1,736 $1,953 $2,170 $2,387 $2,604
Depreciation
Total Long-term Assets $96,000 $95,783 $95,566 $95,349 $95,132 $94,915 $94,698 $94,481 $94,264 $94,047 $93,830 $93,613 $93,396
Total Assets $278,550 $270,195 $262,393 $255,199 $248,673 $245,927 $243,804 $241,643 $238,024 $235,654 $234,395 $233,961 $235,160

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

Current Liabilities
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Paid-in Capital $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000
Retained Earnings ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450) ($21,450)
Earnings $0 ($8,355) ($16,157) ($23,351) ($29,877) ($32,623) ($34,746) ($36,907) ($40,526) ($42,896) ($44,155) ($44,589) ($43,390)
Total Capital $278,550 $270,195 $262,393 $255,199 $248,673 $245,927 $243,804 $241,643 $238,024 $235,654 $234,395 $233,961 $235,160
Total Liabilities and $278,550 $270,195 $262,393 $255,199 $248,673 $245,927 $243,804 $241,643 $238,024 $235,654 $234,395 $233,961 $235,160
Capital

Net Worth $278,550 $270,195 $262,393 $255,199 $248,673 $245,927 $243,804 $241,643 $238,024 $235,654 $234,395 $233,961 $235,160

Page 6