2010 BUSINESS PLAN

INSERT IMAGE/LOGO

COMPANY NAME
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:
 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

1.1..........................................................................................Objectives2
1.2..............................................................................................Mission2
1.3.................................................................................Keys to Success2
2.0 Company Summary.........................................................................3
2.1 Company Ownership.......................................................................3
2.2 Company History............................................................................3
3.0 Services..........................................................................................5
4.0 Market Analysis Summary..............................................................5
4.1 Market Segmentation.....................................................................7
4.2 Target Market Segment Strategy....................................................8
4.3 Service Business Analysis...............................................................8
4.3.1 Competition and Buying Patterns................................................8
5.0 Web Plan Summary........................................................................8
5.1 Website Marketing Strategy...........................................................9
5.2 Development Requirements............................................................9
6.0 Strategy and Implementation Summary.......................................10
6.1 SWOT Analysis..............................................................................10
6.1.1 Strengths...................................................................................10
6.1.2 Weaknesses...............................................................................10
6.1.3 Opportunities.............................................................................10
6.1.4 Threats......................................................................................11
6.2 Competitive Edge..........................................................................11
6.3 Marketing Strategy.......................................................................11
6.4 Sales Strategy..............................................................................11
6.4.1 Sales Forecast...........................................................................11
6.5 Milestones....................................................................................14
7.0 Management Summary.................................................................14
7.1 Personnel Plan..............................................................................15
8.0 Financial Plan...............................................................................16
8.1 Important Assumptions................................................................16
8.2 Break-even Analysis.....................................................................16
8.3 Projected Profit and Loss..............................................................17
8.4 Projected Cash Flow.....................................................................21
8.5 Projected Balance Sheet...............................................................22
8.6 Business Ratios............................................................................23

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 Table of Contents

APPENDIX

Sales Forecast Table.............................................................................1

Personnel Table....................................................................................2
Profit and Loss Table............................................................................3
Cash Flow Table....................................................................................4
Balance Sheet Table.............................................................................5

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1.0 Executive Summary

COMPANY NAME
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:  

COMPANY NAME is a fully licensed and insured sole-proprietorship founded in 2004 as a full-
service, custom sundeck installation company, servicing the [CITY], [STATE], area, including, but
not limited to the counties of [COUNTIES]
 
Although the company is small in operations it is not without a solid foundation.   The owner,
INSERT NAME , exercises over thirty years of experience in the carpentry field and was afforded
higher education in the field of theatrical arts with primary emphasis in stage design and
construction, a field in which the words 'precision' and 'quality' go hand-in-hand.
 
It is with this same precision and quality along with his desire to provide consumers with the
highest quality custom sundecks for a minimal investment that INSERT NAME employs only the
best craftsmen to assist him in the installation of his custom decks.  COMPANY NAME installation
crews rank among the highest of quality craftsmen money can buy and perform sundeck
installations in a timely manner thus saving labor costs for the consumer.
 
The company will seek to provide its services in the timeliest manner and with an ongoing
comprehensive quality-control program to provide 100% customer satisfaction. The company's
owner sees each contract as an agreement not between a business and its customers, but
between partners that wish to create a close and mutually-beneficial long-term relationship. This
will help to provide greater long-term profits through referrals and repeat business.
 
Company sales are forecast to be $134,800 in 2010, $250,000 in 2011, and $425,000 in 2012.  
The company plans to hire an additional installation crews in 2011, 2012, and 2013. Once
the needed installation crews are in effect it is anticipated that the sales will continue to increase
at a minimum of 20-25% in 2013 and level off in coming years.  
 
The company has applied for grant funding in the amount of $400,000, COMPANY NAME plans to
use the funds as follows:
 
 Purchase current or new location
 Purchase Equipment
 Advertising
 Hire additional employees
 
 

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Highlights

$400,000

$350,000

$300,000

$250,000 Sales

$200,000 Gross Margin

$150,000 Net Profit
$100,000

$50,000

$0

($50,000)

2010 2011 2012

1.1 Objectives

The objectives of COMPANY NAME are to:

 Expand service area of the company.

 Create a service-based company whose primary goal is to exceed customers' expectations.
 Increase its number of customers served by 3% per year.
 Operate a sustainable business, being maintained by its own cash flow.

1.2 Mission

The mission of COMPANY NAME is to construct top-quality decks to the specifications of each
customer’s unique request.  The company will strive to attract and maintain customers by
providing services in the timeliest manner to provide 100% customer satisfaction. COMPANY
NAME's services will exceed the expectations of its customers.

1.3 Keys to Success

 Experienced employees with excellent customer-service skills.

 Commitment to high quality and professionalism in every task and encounter.
 Small size, allowing direct management oversight of every project and employee.

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2.0 Company Summary

COMPANY NAME is a sole proprietorship owned by INSERT NAME and the business operations
currently are located at the home of INSERT NAME.
 
INSERT ADDRESS
Phone:
Email: 

COMPANY NAME, a fully licensed and insured sole-proprietorship, was founded in 2004 as a full-
service, custom sundeck installation company.  Although a small business, the company is not
without a solid foundation. The owner, INSERT NAME, has over thirty years of experience in the
carpentry field and was afforded higher education in the field of theatrical arts with primary
emphasis in stage design and construction, a field in which the words 'precision' and 'quality' go
hand-in-hand.
 
 
2.1 Company Ownership

COMPANY NAME is a sole proprietorship owned by INSERT NAME.

2.2 Company History

The past performance table below shows the developments of sales, assets, liabilities, and
operating expenses for the last 3 years of business. The Company's sales for 2007, 2008 and
2009 were $151,162, $155,613, and $79,795, respectively. The gross margin for this period was
$27,479, $30,038, and $14,402, respectively. Earnings for this period were ($1,625), ($4,156),
and $3,772.
 
As reflected in the Past Performance Table the Company realized a profit in 2009 despite a
significant decrease in sales by reducing their operating costs.  This success is attributed to the
excellent management of the principal, INSERT NAME.

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Past Performance Table

2007 2008 2009
Sales $151,162 $155,613 $79,795
Gross Margin $27,479 $30,038 $14,402
Gross Margin % 18.18% 19.30% 18.05%
Operating Expenses $29,104 $34,194 $10,630

Balance Sheet
2007 2008 2009

Current Assets
Cash $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $0 $0 $0

Long-term Assets
Long-term Assets $31,555 $24,714 $15,975
Accumulated Depreciation $4,508 $3,530 $2,282
Total Long-term Assets $27,047 $21,184 $13,693

Total Assets $27,047 $21,184 $13,693

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0

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

Paid-in Capital $20,000 $20,000 $20,000

Retained Earnings $8,672 $5,340 ($10,079)
Earnings ($1,625) ($4,156) $3,772
Total Capital $27,047 $21,184 $13,693

Total Capital and Liabilities $27,047 $21,184 $13,693

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Past Performance

$160,000

$140,000

$120,000

$100,000
Sales

Gross
$80,000
Net
$60,000

$40,000

$20,000

$0
2007 2008 2009

3.0 Services

COMPANY NAME provides high quality deck installations for exterior home additions.  It is the
goal of COMPANY NAME to ensure the complete satisfaction of every customer, while offering
knowledgeable and friendly service at competitive rates.
 
List of services 

 Decks: Design, Demolition(as needed), Installation

o Clean, Treat, Seal
o Repair
 Gazebos: Design, Installation
 Screened Enclosures: Design, Installation
 Arbors: Design, Installation
 Pergolas: Design, Installation
 Trellises: Design, Installation
 Wood Fence: Install, Repair
 Power-washing
 Algae, Mold and Mildew treatment
 Sealing

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4.0 Market Analysis Summary

COMPANY NAME will target rural middle-class homeowners in the [CITY], [STATE] and
surrounding areas.
 
As of the census of 2000, there were 197,790 people, 84,549 households, and 43,627 families
residing in the city. The estimated population for 2006 is 192,913. The population density was
3,292.6 people per square mile (1,271.3/km²). There were 92,282 housing units at an average
density of 1,536.2/sq mi (593.1/km²). The racial makeup of the city was:
 
•         38.30% White
•         57.2% Black or African American
•         0.24% Native American
•         1.25% Asian
•         0.08% Pacific Islander
•         2.57% Hispanic
•         1.46% from two or more races
 
There were 84,549 households out of which 23.1% had children under the age of 18 living with
them, 27.1% were married couples living together, 20.4% had a female householder with no
husband present, and 48.4% were non-families. 37.6% of all households were made up of
individuals and 10.9% had someone living alone who was 65 years of age or older. The average
household size was 2.21 and the average family size was 2.95.
 
In the city the population was spread out with 21.8% under the age of 18, 13.1% from 18 to 24,
31.7% from 25 to 44, 20.1% from 45 to 64, and 13.2% who were 65 years of age or older. The
median age was 34 years. For every 100 females there were 87.1 males. For every 100 females
age 18 and over, there were 83.5 males.
 
The median income for a household in the city was $31,121, and the median income for a family
was $38,348. Males had a median income of $30,874 versus $25,880 for females. The per capita
income for the city was $20,337. About 17.1% of families and 21.4% of the population were
below the poverty line, including 32.9% of those under age 18 and 15.8% of those ages 65 or
over.
 

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4.1 Market Segmentation

The potential market segments for COMPANY NAME are homeowners living in the city and
neighboring counties.
 

Market Analysis Table

2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Neighborhood #1 3% 13,730 14,142 14,566 15,003 15,453 3.00%
Neighborhood #2 3% 7,716 7,947 8,185 8,431 8,684 3.00%
ABC County 3% 100,721 103,743 106,855 110,061 113,363 3.00%
DEF County 3% 306,000 315,180 324,635 334,374 344,405 3.00%
GHI County 3% 262,300 270,169 278,274 286,622 295,221 3.00%
JKL County 3% 16,863 17,369 17,890 18,427 18,980 3.00%
MNO County 3% 4,815 4,959 5,108 5,261 5,419 3.00%
PQU County 3% 22,377 23,048 23,739 24,451 25,185 3.00%
Total 3.00% 734,522 756,557 779,252 802,630 826,710 3.00%

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4.2 Target Market Segment Strategy

Long term strategy is to always uphold high standards of quality, listening to customer's needs,
consideration of economic times and leading with modern innovations.

COMPANY NAME offers a unique solution that will be introduced to the market through targeted
advertising, website optimization and direct sales.

Sales and service will be targeted to [CITY] and neighboring county residents at this time. As the
company grows, expanding to larger cities in the state is part of the company plan.
 
Each of the market segments has differing needs and trends. The following sections go into detail
about how the company will fact them.

4.3 Service Business Analysis

Most of the industry analysis is contained in the Competitive Comparison section to give the
reader the idea of the competitive nature of the industry, its opportunities and threats, and the
company's flexibility in pricing. COMPANY NAME exists in a purely competitive market that faces
virtually unlimited competition and high demand. The ability of the company to differentiate its
services or enter into a niche market is limited. The company will engage in a low-cost leadership
strategy while maintaining a suitable yet professional level of quality.
 

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at the COMPANY NAME customer level is trust in the
professional reputation and reliability of the company.

5.0 Web Plan Summary

INSERT NAME for Hire currently has a website www.COMPANYNAME.com 

to provide an Internet presence that will better represent it through digital images and text and
serve to more effectively market the Company and expand its market. 
 
The enhanced website will include:
 Pictures and video Statements/testimonials of satisfied clients
 Links to businesses who have given positive statements and referrals
 Banner ads
 Link for visitors to opt in to the Company's email list.
 Showcasing products and services.
 

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 COMPANY NAME

5.1 Website Marketing Strategy

COMPANY NAME plans to use email marketing campaigns for their outreach to current and
prospective clients.  Technology is available that incorporates video with email and offers very
powerful, robust and dynamic features.  Another benefit is in communicating through the use of
streaming video embedded within the email.  Management believes that the use of this
technology will give the Business a strong competitive edge and outreach to the community. 
 
COMPANY NAME is planning to incorporate an email drip campaign with video into its marketing
efforts.  This technology will more effectively market to its customer and potential customer
base.  It is cost effective (averaging about $99 per month), especially when compared to the
$1,000's spent on print advertising, mailing and postage.  The built-in analytics provide
immediate feedback as to the campaigns effectiveness and who actually viewed the message. 
Auto responders with a specific message can be utilized as an immediate follow-up tool.   
 
This new email marketing campaign technology will serve to position COMPANY NAME to achieve
and sustain name recognition in front of their current market within the local community.  This
type of marketing is cost effective and efficient.  The first thing most of us do every day is check
our email in-box. 
 
Currently, management is unaware of any of its competitors incorporating the use of this
technology within their operation. 

5.2 Development Requirements

The development requirement for COMPANY NAME enhanced Internet presence and email
campaign marketing system is easy and not complicated. 
 
The Business will be able to create web pages that COMPANY NAME hosted web site simply points
to.  The created web pages are easily constructed with easy to use templates.  Once an email
address is entered into the system, they will receive COMPANY NAME standard welcome email
and automatically receive periodic emails that can be constructed for specific marketing email
drip campaigns.

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6.0 Strategy and Implementation Summary

COMPANY NAME has clearly defined the target markets and has differentiated itself by offering a
unique product for its customer's needs. Its sales and marketing strategy will be a combination of
targeted mass marketing techniques as well as a focused direct sales team approach. Reasonable
sales targets have been established with an implementation plan designed to ensure the goals,
set forth below, are achieved:

6.1 SWOT Analysis

STRENGTHS – 30 YEARS OF EXPERTISE IN THE INDUSTRY

WEAKNESSES – ACCESS TO ADDITIONAL OPERATING CAPITAL

OPPORTUNITIES – GROWING MARKET NOT YET AWARE OF THE

COMPANY’S EXISTENCE

THREATS – THE DOWNTURN IN THE ECONOMY

6.1.1 Strengths

 The vision, passion, and dedication of INSERT NAME to the success of COMPANY NAME.
 COMPANY NAME is the Navy Seals of the Industry: Quality people building quality products.
 Word of mouth advertising from satisfied customers.
 Over 30 years of expertise in the industry of the owner, INSERT NAME.

6.1.2 Weaknesses

 Access to additional operating capital.

 Challenges of the seasonality of the business.

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6.1.3 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.
 Promising activity from high levels of new home additions.

6.1.4 Threats

 The downturn in the economy has impacted deck sales.

 Continued price pressure due to competition or the weakening market reducing contribution
margins.

6.2 Competitive Edge

The competitive edge of COMPANY NAME is its positioning as a strategic ally with its customers,
who are more than just customers. By building a business based on quality workmanship and a
reputation of customer satisfaction, COMPANY NAME simultaneously builds defenses against
competition.  Reputation is extremely important to the owner of COMPANY NAME and catering to
the specific needs of its customers is its number one priority.

6.3 Marketing Strategy

COMPANY NAME has a modest program of marketing its services that include the following:
 
 
 Referrals through other local businesses
 Website and on-line marketing
 Radio
 

6.4 Sales Strategy

 
The marketing strategy discussed previously in this business plan will generate the desired sales.
These sales will begin with an email or phone call to COMPANY NAME.  It is an objective of the
company to allow the owner to focus on aggressive sales meeting with potential customers to
close the sale.
 
INSERT NAME is, and will continue to be, the voice and face of COMPANY NAME, giving the
personalized attention to each customer to ensure that quality customer service is achieved.
 
With respect to prospective customer leads, it is essential that a "salesman's" approach be
adopted to insure an organized, orderly approach to each prospect. Notes need to be kept on
each client. Follow-up and persistence will pay off.

6.4.1 Sales Forecast

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Based on the economic trends of the past few years, the sales forecast numbers will be attainable
even with the economy the way it is today: reaching these sales will increase cash flow and allow
the Company to reach its goals over the coming years. 
 
The table and charts below outline the sales forecast.  Three years of annual sales and costs of
sales are shown.  Totals for twelve months are included in the appendices.
 
The management of the company is confident that sales will double each year due the sales leads
that will be generated and the hiring of the additional crews to create the added revenue.  Once
the needed installation crews are in effect it is anticipated that the sales will continue to increase
at a minimum of 20-25% in 2013 and 2014. 
 
As the following table shows, the company plans to deliver sales of approximately $134,800 in
2010, $250,000 in 2011, and $425,000 in 2012.

Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec
Sales Forecast Table
2010 2011 2012
Sales
Deck Sales / Additional Services $134,800 $250,000 $425,000
Total Sales $134,800 $250,000 $425,000

Direct Cost of Sales 2010 2011 2012

Materials $30,482 $80,000 $105,000
Subtotal Direct Cost of Sales $30,482 $80,000 $105,000

Sales Monthly
$16,000

$14,000

$12,000

$10,000

Deck Sales / Additional Services

$8,000
$0
$6,000

$4,000

$2,000

$0

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Sales by Year

$400,000

$360,000

$320,000

$280,000 Deck Sales / Additional Services

$240,000
$0
$200,000

$160,000
$120,000

$80,000

$40,000

$0
2010 2011 2012

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6.5 Milestones

The following table lists important program milestones, with dates and budgets for each.
 
The milestone schedule indicates COMPANY NAME’s emphasis on planning for implementation.

Milestones Table

Milestones Start Date End Date Budget

Obtain Grant Funding 11/1/2010 11/30/2010
Purchase New Office and Warehouse 12/1/2010 12/31/2010 $100,000
Space
Purchase Inventory Material 1/1/2011 1/31/2010 $40,000
Hire (3) New Employees = 1 Crew 1/1/2011 1/31/2011 $71,000
1 Utility Truck 1/1/2011 1/31/2010 $30,000
New Tools for Truck 1/1/2011 1/31/2010 $3,000
Additional Operating Capital 11/1/2010 $156,000

Hire (3) New Employees = 1 Crew 1/1/2012 1/31/2012 $71,000

1 Utility Truck 1/1/2012 1/31/2012 $30,000
New Tools for Truck 1/1/2012 1/31/2012 $3,000

Hire (3) New Employees = 1 Crew 1/1/2013 1/31/2013 $71,000

1 Utility Truck 1/1/2013 1/31/2013 $30,000
New Tools for Truck 1/1/2013 1/31/2013 $3,000

7.0 Management Summary

COMPANY NAME is owned and operated by INSERT NAME. The company, being small in nature,
requires a simple organizational structure. Implementation of this organizational form calls for
the owner, INSERT NAME, to make all of the major management decisions in addition to
monitoring all other business activities.
 
COMPANY NAME is presently made up of 3 employees and the principal. 

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7.1 Personnel Plan

COMPANY NAME currently employs one crew which includes each of the following: Lead, Installer,
and Helper.  INSERT NAME plans to hire (3) additional crews at (1) per year in 2011, 2012, and
2013.  INSERT NAME does not currently receive a salary from the company.

The current pay scale for the personnel table reflects:

 $18 p/h for the Lead

 $15 p/h for the Installer
 $12 p/h for the Helper

In 2011, 2012 and 2013 the pay scale for the additional crews reflects the following:
 
 $15 p/h for the Lead
 $12 p/h for the Installer
 $10 p/h for the Helper

Employee pay raises are commensurate with proven abilities. There is no specific time frame
binding said raises. However, the above pay scale reflects the pay range within each position.
INSERT NAME is confident that once the first new crew is in place he will be able to focus
on building the business in sales. 
 
Once the needed installation crews are in effect it is anticipated that the sales will continue to
increase by approximately 20-25% in 2013 and 2014. 

Personnel Table
2010 2011 2012
Owner $0 $0 $0
Lead $34,560 $63,360 $97,920
Installer $28,800 $51,840 $80,640
Helper $23,040 $42,240 $65,280
Total People 4 7 10

Total Payroll $86,400 $157,440 $243,840

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8.0 Financial Plan

Once grant funding is awarded in the amount of $400,000, COMPANY NAME plans to use the
funds as follows: 

 Purchase current or new location

 Purchase Vehicles, Equipment and Tools
 Advertising
 Hire additional employees
 
The gross margin and net profit margin are expected to greatly improve in next two years.  The
net profit for 2010, 2011 and 2012 is forecast to be ($21,642), ($87,723), and ($38,483),
respectively.
 
The following chart (Highlights Planned) sets forth the company's anticipated profitability
analysis.   COMPANY NAME Net Worth is expected to be $215,845 in 2010; $304,328 in 2011;
and $392,051 in 2012, respectively.  

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following
table. The key underlying assumptions are:

 Continued, steady growth from good management, barring any unforeseen catastrophes, is
assumed.
 The full grant funding is assumed to be received.

It is also assumed the average percent variable cost will be 23%. The estimated monthly fixed
cost is $10,405.

8.2 Break-even Analysis

The Break-even Analysis chart and table show that if the costs stay at the current, or relatively
stable, COMPANY NAME will be able to make an increased profit.  The figures are also based on
the average of the first-year figures for total sales, and operating expenses. These conservative
assumptions make for a more accurate estimate of real risk.
 
The following Break-even Analysis shows that $13,445 is needed in monthly revenue to break
even.

Break-even Analysis

Monthly Revenue Break-even $13,445

Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost $10,405

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Break-even Analysis

$6,000

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)

($8,000)

($10,000)
$0 $4,000 $8,000 $12,000 $16,000 $20,000
$2,000 $6,000 $10,000 $14,000 $18,000 $22,000

8.3 Projected Profit and Loss

The Company has applied for $400,000 in grant funding. The funds are projected to be received
during the 4th quarter of 2010.
 
Outlined below, and in the following table and chart, are some of the intrinsic facets of the
projected profit and loss for COMPANY NAME:

 Cost of sales reflects direct materials needed to carry out the deck installations, such as nails,
wood supplies, etc.
 All sales and marketing is performed by the principal. Salary is not paid to him, as this is a
sole proprietorship.
 Advertising and promotion is substantial in 2010, 2011, and 2012 to increase the sales leads. 
This will be reduced in later years.

The various General and Administrative expenses are projected based on present actual
expenses.

The sales for 2010, 2011, and 2012 are forecast to be $134,800, $325,000, and $425,000.
 
The net profit for 2010, 2011 and 2012 is forecast to be ($21,642), ($87,723), and ($38,483),
respectively.  The net profit/sales for 2010, 2011 and 2012 are forecast to be -16.05%, -
5.09%, -9.05%, respectively.
 

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With the anticipation of sales revenue doubling in 2011 and 2012 and hiring of the additional
crew each year, and another crew in 2013 it is anticipated that 2013 and 2014 will be profitable
years and the sales will continue to increase at a minimum 20-25%. 
 
As reflected in the Past Performance Table the Company realized a profit in 2009 despite a
significant decrease in sales by reducing their operating costs.  The excellent management of the
principal, INSERT NAME has allowed the company to operate more efficiently during this slow
economic time.
 
Management expects to maintain the same cost efficient operations in the coming years.

Pro Forma Profit and Loss

2010 2011 2012
Sales $134,800 $250,000 $425,000
Direct Cost of Sales $30,482 $80,000 $105,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $30,482 $80,000 $105,000

Gross Margin $104,318 $170,000 $320,000

Gross Margin % 77.39% 68.00% 75.29%

Expenses
Payroll $86,400 $157,440 $243,840
Marketing/Promotion $14,400 $15,000 $16,000
Depreciation $0 $18,387 $18,387
Fuel $4,800 $28,000 $28,000
Utilities $2,400 $9,600 $9,600
Insurance $2,280 $2,500 $2,600
Payroll Taxes $12,960 $23,616 $36,576
Repair / Maintenance $1,200 $1,500 $1,800
Toll $420 $1,680 $1,680

Total Operating Expenses $124,860 $257,723 $358,483

Profit Before Interest and Taxes ($20,542) ($87,723) ($38,483)

EBITDA ($20,542) ($69,336) ($20,096)
Interest Expense $1,100 $0 $0
Taxes Incurred $0 $0 $0

Net Profit ($21,642) ($87,723) ($38,483)

Net Profit/Sales -16.05% -35.09% -9.05%

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 COMPANY NAME

Profit Monthly

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

($4,000)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Profit Yearly

$0

($10,000)

($20,000)

($30,000)

($40,000)

($50,000)

($60,000)

($70,000)

($80,000)

2010 2011 2012

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 COMPANY NAME

Gross Margin Monthly

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Gross Margin Yearly

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
2010 2011 2012

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 COMPANY NAME

8.4 Projected Cash Flow

The company's estimated cash flow analysis is outlined in the following table, including the cost
and increase in sales and profits in 2011 and 2012.  The Company has applied for $400,000 in
grant funding and the funds are projected to be received during the 4th quarter of 2010
 
The grant funding would be used for the following:
 
 Obtain Grant Funding
 1 Utility Truck
 New Tools for Truck
 Hire (3) New Employees = 1 Crew
 Purchase New Office and Warehouse Space
 Purchase Inventory Material
 Additional Operating Capital

Pro Forma Cash Flow Table

2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $134,800 $250,000 $425,000
Subtotal Cash from Operations $134,800 $250,000 $425,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $20,000 $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 $400,000 $0 $0
Subtotal Cash Received $554,800 $250,000 $425,000

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $156,442 $319,336 $445,096
Subtotal Spent on Operations $156,442 $319,336 $445,096

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $20,000 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $3,000 $3,000
Purchase Long-term Assets $0 $130,000 $30,000
Dividends $0 $0 $0
Subtotal Cash Spent $176,442 $452,336 $478,096

Net Cash Flow $378,358 ($202,336) ($53,096)

Cash Balance $378,358 $176,022 $122,926

Page 21
 A
May Jun Jul
COMPANY NAME

Feb Mar Apr

Cash flow projections are critical to our success. The monthly cash flow is shown in the
illustration, with one bar representing the cash flow per month and the other representing the
monthly balance. The annual cash flow figures are included here as Table 8.4. Detailed monthly

Jan
numbers are included in the appendix.

Cash

$400,000

$360,000

$320,000

$280,000

$240,000
Net Cash Flow
$200,000
Cash Balance
$160,000

$120,000

$80,000

$40,000

$0

8.5 Projected Balance Sheet

As shown on the balance sheet in the following table, we expect a growth in the net worth due to
$400,000 in grant funding.
 
The Net Worth for 2010, 2011, and 2012 is forecast to be $392,051, $304,328, and $265,845.
 

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 COMPANY NAME

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $378,358 $176,022 $122,926
Other Current Assets $0 $3,000 $6,000
Total Current Assets $378,358 $179,022 $128,926

Long-term Assets
Long-term Assets $15,975 $145,975 $175,975
Accumulated Depreciation $2,282 $20,669 $39,056
Total Long-term Assets $13,693 $125,306 $136,919
Total Assets $392,051 $304,328 $265,845

Liabilities and Capital 2010 2011 2012

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 $420,000 $420,000 $420,000

Retained Earnings ($6,307) ($27,949) ($115,672)
Earnings ($21,642) ($87,723) ($38,483)
Total Capital $392,051 $304,328 $265,845
Total Liabilities and Capital $392,051 $304,328 $265,845

Net Worth $392,051 $304,328 $265,845

8.6 Business Ratios

The company's projected business ratios are provided in the table below. The final column,
Industry Profile, shows significant ratios for the Structural Wood Members industry, as
determined by the Standard Industry Classification (SIC) Index code 2439.

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 COMPANY NAME

Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 68.93% 85.46% 70.00% -3.05%

Percent of Total Assets

Other Current Assets 0.00% 0.99% 2.26% 40.82%
Total Current Assets 96.51% 58.83% 48.50% 65.97%
Long-term Assets 3.49% 41.17% 51.50% 34.03%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 34.49%

Long-term Liabilities 0.00% 0.00% 0.00% 47.63%
Total Liabilities 0.00% 0.00% 0.00% 82.11%
Net Worth 100.00% 100.00% 100.00% 17.89%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 77.39% 68.00% 75.29% 46.49%
Selling, General & Administrative 93.44% 103.09% 84.35% 18.39%
Expenses
Advertising Expenses 10.68% 6.00% 3.76% 0.66%
Profit Before Interest and Taxes -15.24% -35.09% -9.05% 6.62%

Main Ratios
Current 0.00 0.00 0.00 1.56
Quick 0.00 0.00 0.00 1.37
Total Debt to Total Assets 0.00% 0.00% 0.00% 82.11%
Pre-tax Return on Net Worth -5.52% -28.83% -14.48% 233.82%
Pre-tax Return on Assets -5.52% -28.83% -14.48% 41.82%

Additional Ratios 2010 2011 2012

Net Profit Margin -16.05% -35.09% -9.05%
Return on Equity -5.52% -28.83% -14.48%

Activity Ratios
Accounts Payable Turnover 11.87 12.17 12.17
Total Asset Turnover 0.34 0.82 1.60

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

Liquidity Ratios
Net Working Capital $378,358 $179,022 $128,926
Interest Coverage -18.67 0.00 0.00

Additional Ratios
Assets to Sales 2.91 1.22 0.63
Current Debt/Total Assets 0% 0% 0%
Acid Test 0.00 0.00 0.00
Sales/Net Worth 0.34 0.82 1.60
Dividend Payout 0.00 0.00 0.00

Page 24
 Appendix

Sales Forecast Table

Sales
Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Deck Sales $8,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $10,500 $11,000
/ Add’l
Services

Total $8,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $10,500 $11,000
Sales

Direct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cost of
Sales
Materials $2,000 $2,100 $2,200 $2,325 $2,502 $2,690 $2,775 $2,950 $2,500 $2,740 $2,800 $2,900

Subtotal $2,000 $2,100 $2,200 $2,325 $2,502 $2,690 $2,775 $2,950 $2,500 $2,740 $2,800 $2,900
Direct
Cost of
Sales

Page 1
 Appendix

Personnel Table

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Owner $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Lead $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880
Installer $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Helper $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920

Total People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200

Page 2
 Appendix

Profit and Loss Table

Pro Forma Profit and Loss

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $8,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $10,500 $11,000
Direct Cost of Sales $2,000 $2,100 $2,200 $2,325 $2,502 $2,690 $2,775 $2,950 $2,500 $2,740 $2,800 $2,900
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $2,000 $2,100 $2,200 $2,325 $2,502 $2,690 $2,775 $2,950 $2,500 $2,740 $2,800 $2,900

Gross Margin $6,000 $6,400 $7,800 $9,175 $10,248 $10,810 $11,975 $12,850 $6,500 $6,760 $7,700 $8,100
Gross Margin % 75.00% 75.29% 78.00% 79.78% 80.38% 80.07% 81.19% 81.33% 72.22% 71.16% 73.33% 73.64%

Expenses
Payroll $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200
Marketing/Promotio $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
n
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Fuel $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $190 $190 $190 $190 $190 $190 $190 $190 $190 $190 $190 $190
Payroll Taxes 15% $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080 $1,080
Repair / $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Maintenance
Toll $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35

Total Operating $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405 $10,405
Expenses

Profit Before Interest ($4,405) ($4,005) ($2,605) ($1,230) ($157) $405 $1,570 $2,445 ($3,905) ($3,645) ($2,705) ($2,305)
and Taxes
EBITDA ($4,405) ($4,005) ($2,605) ($1,230) ($157) $405 $1,570 $2,445 ($3,905) ($3,645) ($2,705) ($2,305)
Interest Expense $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($4,505) ($4,105) ($2,705) ($1,330) ($257) $305 $1,470 $2,345 ($4,005) ($3,745) ($2,805) ($2,305)
Net Profit/Sales -56.31% -48.29% -27.05% -11.57% -2.02% 2.26% 9.97% 14.84% -44.50% -39.42% -26.71% -20.95%

Page 3
 Appendix

Cash Flow Table

Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received

Cash from Operations

Cash Sales $8,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $10,500 $11,000
Subtotal Cash from $8,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $10,500 $11,000
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 $20,000 $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 $400,000 $0
Subtotal Cash Received $28,000 $8,500 $10,000 $11,500 $12,750 $13,500 $14,750 $15,800 $9,000 $9,500 $410,500 $11,000

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from
Operations
Cash Spending $12,505 $12,605 $12,705 $12,830 $13,007 $13,195 $13,280 $13,455 $13,005 $13,245 $13,305 $13,305
Subtotal Spent on $12,505 $12,605 $12,705 $12,830 $13,007 $13,195 $13,280 $13,455 $13,005 $13,245 $13,305 $13,305
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 $20,000
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 $12,505 $12,605 $12,705 $12,830 $13,007 $13,195 $13,280 $13,455 $13,005 $13,245 $13,305 $33,305

Net Cash Flow $15,495 ($4,105) ($2,705) ($1,330) ($257) $305 $1,470 $2,345 ($4,005) ($3,745) $397,195 ($22,305)

Page 4
 Appendix

Cash Balance $15,495 $11,390 $8,685 $7,355 $7,098 $7,403 $8,873 $11,218 $7,213 $3,468 $400,663 $378,358

Page 5
 Appendix

Balance Sheet Table

Pro Forma
Balance
Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances

Current
Assets
Cash $0 $15,495 $11,390 $8,685 $7,355 $7,098 $7,403 $8,873 $11,218 $7,213 $3,468 $400,663 $378,358
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current $0 $15,495 $11,390 $8,685 $7,355 $7,098 $7,403 $8,873 $11,218 $7,213 $3,468 $400,663 $378,358
Assets

Long-term
Assets
Long-term $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975 $15,975
Assets
Accumulated $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282 $2,282
Depreciation
Total Long- $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693 $13,693
term Assets
Total Assets $13,693 $29,188 $25,083 $22,378 $21,048 $20,791 $21,096 $22,566 $24,911 $20,906 $17,161 $414,356 $392,051

Liabilities and Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Capital

Current
Liabilities
Current $0 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $0
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal $0 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $0
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $0 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $0
Liabilities

Paid-in $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $420,000 $420,000
Capital
Retained ($10,079) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307) ($6,307)
Earnings

Page 6
 Appendix

Earnings $3,772 ($4,505) ($8,610) ($11,315) ($12,645) ($12,902) ($12,597) ($11,127) ($8,782) ($12,787) ($16,532) ($19,337) ($21,642)
Total Capital $13,693 $9,188 $5,083 $2,378 $1,048 $791 $1,096 $2,566 $4,911 $906 ($2,839) $394,356 $392,051
Total $13,693 $29,188 $25,083 $22,378 $21,048 $20,791 $21,096 $22,566 $24,911 $20,906 $17,161 $414,356 $392,051
Liabilities and
Capital

Net Worth $13,693 $9,188 $5,083 $2,378 $1,048 $791 $1,096 $2,566 $4,911 $906 ($2,839) $394,356 $392,051

Page 7