[COMPANY NAME]

[NAME] - Owner
 

[ADDRESS]
[CITY, STATE ZIP]
(XXX) XXX-XXXX T (XXX) XXX-XXXX C
[EMAIL]
[WEBSITE]

BUSINESS PLAN

Page 1
 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.

Page 2
 Table of Contents

1.0 Executive Summary.....................................................................................................................2

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

Page 1
 Table of Contents

Table: Profit and Loss..................................................................................................................2

Chart: Profit Yearly.......................................................................................................................2
Chart: Gross Margin Yearly.......................................................................................................2
7.5 Projected Cash Flow.................................................................................................................2
Table: Cash Flow...........................................................................................................................2
Chart: Cash.....................................................................................................................................2
7.6 Projected Balance Sheet........................................................................................................2
Table: Balance Sheet...................................................................................................................2
7.7 Business Ratios..........................................................................................................................2
Table: Ratios...................................................................................................................................2
Table: Sales Forecast..........................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................2
Table: Cash Flow...................................................................................................................................2
Table: Balance Sheet...........................................................................................................................2

Page 2
 [COMPANY NAME]

1.0 Executive Summary

[COMPANY NAME] - A Glass shop and artist consignment store is a new business in [CITY],
[STATE]. [COMPANY NAME] will be run by [NAME] a veteran of 20 years in the glass
shop industry. Additionally, has leveraged his regionally specific industry insights, into a niche
store that has little or no direct competition. The reason for this is that [NAME] has designed
unique glass products that use cutting edge technology to produce a product that has near 100%
purifying properties, compared to the typical ~80% of other glass producers. With a selection
of glass and goods not replicated in the city, superior customer service, and reasonable prices,
[COMPANY NAME] will capitalize on this incredible opportunity. The owner has secured a location
that offers very good foot traffic and easy accessibility. [NAME] will efficiently lay out the store to
increase sales and give the customers the utmost in attention. This attention to detail, combined
with his passion and knowledge of the industry, will help the store reach a profitable level quickly.
The projected growth rate for [COMPANY NAME] is quite steady, with profitability estimated by
year one and revenue of $240,000 by year three.

The company will accomplish its expansion and development of new blown glass technology by
utilizing a grant of $160,000. The following plan will delineate the aspects of [COMPANY NAME]
that will allow it to become the premier glass shop in the [CITY] area. It has already aligned its
self with the number one blown glass producer in the United States and will be the only shop in
[STATE] to carry this line of superior blown glass. [COMPANY NAME]’s will continue to set itself
apart by increasing the number of consigned artist to beyond thirty.

BUSINESS PLAN Page 1

 [COMPANY NAME]

Chart: Highlights

Highlights

$300,000

$270,000

$240,000

$210,000
Sales
$180,000
Gross Margin
$150,000
Net Profit
$120,000

$90,000

$60,000

$30,000

$0
2010 2011 2012

1.1 Objectives

The objectives for the first three years of operation include: 

To create a retail store whose primary goal is to exceed customer's expectations.

To increase the number of clients served by at least 20% per year through superior performance
and selection.

To obtain annual revenues exceeding $240,000.

1.2 Mission

[COMPANY NAME]'s mission is to provide the customer with the highest quality blown glass
and unique clothing and gear at reasonable prices. We exist to attract and maintain customers.
When we adhere to this maxim, everything else will fall into place. Our services will exceed the
expectations of our customers. 

The company also continues to serve its community through raffles, toys for tots drives and
similar discount fairs. Also, by allowing up and coming artist to expose their talents to the [CITY]
public on a consignment basis, [COMPANY NAME] can give back directly to the community on a
consistent basis.

BUSINESS PLAN Page 2

 [COMPANY NAME]

1.3 Keys to Success

To succeed [COMPANY NAME] must:

 Implement a successful advertisement and marketing campaign to inform the existing clientele
and the public of our new blown glass standards.
 Providing new glass equipment and accessories
 Retain the services of reputable glass manufacturers.
 Build brand image and brand equity through marketing.

BUSINESS PLAN Page 3

 [COMPANY NAME]

2.0 Company Summary

[COMPANY NAME]’s creates and sells a wide range high quality blown glass equipment and
accessories. It is located in [CITY], [STATE]. It will also serve as a consignment shop for
artistic clothing, wears, music and artwork. [COMPANY NAME]’s will offer through consignment
clothing etc., for reasonable prices, allowing a wider range of people to enjoy the shopping for
blown glass items. [COMPANY NAME] ’s will sell these items on consignment, meaning it will sell
artists' items and pay for them when sold. The business will make a profit in year one, and will
grow steadily each consecutive year. The owner also has introduced a new technology in blow
glass instruments. The purifying properties of these glass smokers will remove up to 97% of the
impurities in the smoke.

2.1 Company Ownership

[COMPANY NAME] is a sole proprietorship owned and operated by [NAME].

2.2 Start-up Summary

The following table and chart illustrates projected initial start-up costs for the firm.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $0
Stationery etc. $1,000
Insurance $600
Rent $18,000
Computer $5,500
Other $20,000
Total Start-up Expenses $45,100

Start-up Assets
Cash Required $6,000
Start-up Inventory $12,000
Other Current Assets $15,000
Long-term Assets $0
Total Assets $33,000

Total Requirements $78,100

BUSINESS PLAN Page 4

 [COMPANY NAME]

Chart: Start-up

Start-up

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Expenses Assets Investment Loans

BUSINESS PLAN Page 5

 [COMPANY NAME]

3.0 Products

[COMPANY NAME] designs and then has manufactured blown glass smoking instruments and
accessories. The accessories take the form of everything from glass jars, incense holders
to jewelry. All of the products are designed from or made to; compliment the blown glass
instrument industry. The revolutionary product, a design from the owner, refines the
original tobacco product into a purer form, by removing the carcinogens and pesticides found in it.
This will be the "cleanest pipe on the planet." Its percolator adds ambient air to the smoke similar
to a coffee maker. Once testing and final design are complete, the aim is to reach the 97% purity
mark.

BUSINESS PLAN Page 6

 [COMPANY NAME]

4.0 Market Analysis Summary

Our target market is a person who wants to have a very fine smoking experience with the latest in
technology, combined with a sense of smoke related art, clothing and fine glass working. This
person can be in the corporate towers, small or medium business, or in a home office. The
common bond is the appreciation of quality, and the lack of selection constraints.

4.1 Market Segmentation

Medicinal & Recreational smokers This is the major segment for [COMPANY NAME]. These are members of the community between the ages of 18 and 50 for the most part. 

Bargain hunters This group will buy things because it is a unique item at a reasonable price. While some of the
items will appeal to them, the unique nature and hand made quality will really bring this group to
the shop for the variety of consignment items. 

Table: Market Analysis

Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Recreational 5% 75,000 78,750 82,688 86,822 91,163 5.00%
Smokers
Medicinal Smokers 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Bargain Hunters 20% 100,000 120,000 144,000 172,800 207,360 20.00%
Total 14.06% 185,000 209,750 238,788 272,932 313,164 14.06%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Recreational Smokers

Medicinal Sm okers

Bargain Hunters

BUSINESS PLAN Page 7

 [COMPANY NAME]

4.2 Target Market Segment Strategy

[COMPANY NAME] intends to target people that have a need for "smoking" glass instruments,
accessories and clothing. The addition of the artist consignment items helps to bring people into
the shop with minimal cost to the owner. Tobacco connoisseurs have began to utilize the glass
industry to enhance their smoking experience. Hence, they resort to glass shops to purchase
instruments that are more sophisticated. Buy carrying all the different aspects/items that go along
with the lifestyle [COMPANY NAME] plans to use the nature of impulse buying to increase sales
from both the consignment shoppers and the die-hard smokers.

4.3 Industry Analysis

Glass smoking instruments sales have undergone tremendous growth and distribution throughout
the country. Presently we will concentrate on word of mouth and discount sales marketing. This
will maximize our profit. The Internet is probably the best communication medium for those in the
"smoke culture" all over the world, and we believe this is the best way to retail our products. The
[COMPANY NAME] group members we have gained on the World Wide Web are now nearly 600 in
just the first 6 months of being on Facebook, for example. In addition, having "the best pipe" on
the planet that, no other [STATE] retailer will be able to carry, will be a huge advantage
for drawing clients.

4.3.1 Competition and Buying Patterns

Currently there are few true direct competitors in [CITY]; due to the fact, [COMPANY NAME] has a
one of a kind product in the area. There are two [CITY] competitors that have very similar product
offerings although [COMPANY NAME] was rated the top glass shop in the region for the last 6
months, its entire business life.

BUSINESS PLAN Page 8

 [COMPANY NAME]

5.0 Strategy and Implementation Summary

[COMPANY NAME] will succeed by designing high quality, purifying smoking equipment with a
significant number of accessories with features and options related to the culture. It will focus on
the majority segment of the market and attempt to achieve the best reputation in that segment.

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

1. Knowledgeable and friendly staff We have gone to great lengths at [COMPANY NAME] to
find people with a passion for teaching and sharing their smoking experiences. Our staff is
both knowledgeable and eager to please.
2. State-of-the art equipment Part of the [COMPANY NAME] experience includes access to
state-of-the-art glass equipment. Our customers enjoy from the beautiful floor model versions,
to the small machines, and high-quality percolators.
3. Up-scale ambiance When you walk into [COMPANY NAME], you'll feel the culture and
quality. On top of the high tech finely crafted glass, there are a variety of artistic items from
original designers. 
4. Clear vision of the market need [COMPANY NAME] knows what it takes to build an
upscale Glass shop. We know the customers, we know the technology, and we know how to
build the service that will bring the two together.

5.1.2 Weaknesses

 Access to additional operating capital

 Cash flow continues to be at the introductory phase, the shop has been opened for 6 months

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
 Changes in design trends can initiate updating, and therefore, generate sales.
 Increasing sales opportunities beyond our "100-mile" target area including several smaller
communities that have produced a faithful following of customers
 Internet potential for selling products to other markets

5.1.4 Threats

 The downturn in the economy has affected store sales--stock market predictors correlate with
store sales. It has not been good since the recession began
 Competition from a national store or a store with greater financing or product resources could
enter the market.
 Continued price pressure due to competition or the weakening market reducing contribution
margins

BUSINESS PLAN Page 9

 [COMPANY NAME]

5.2 Competitive Edge

[COMPANY NAME]'s competitive edge is its level of quality, product features and options; it has a
product that is the purest on the market. In addition, it is the only [STATE] distributor of this kind
of glass product.

5.3 Marketing Strategy

[COMPANY NAME] marketing strategy will include the use of targeted print media and
internet advertising. It also plans to begin direct selling to shops around the United States who
provide specialty glass instruments via the internet. We will capitalize on existing relationships
with manufactures who have stated their willingness to remain onboard. We have positioned
ourselves as a differentiated provider of the highest quality glass percolators. The primary goal of
all marketing efforts will be to communicate this to existing and potential customers.

5.4 Sales Strategy

As the table shows, [COMPANY NAME] plans to deliver sales of approximately $100,000 in the

current year, $185,000 in the second year, and over $250 in the third year following this plan.

5.4.1 Sales Forecast

The following chart and table show our present sales forecast. We project sales to grow
approximately 96 percent (or double) in 2011, increase again by another ~40% percent in 2012.

Table: Sales Forecast

Sales Forecast
2010 2011 2012
Sales
Glass Wares $95,000 $185,250 $254,719
Non-Glass Wares $3,000 $6,750 $15,188
Consignment Items $2,000 $4,500 $10,125
Total Sales $100,000 $196,500 $280,031

Direct Cost of Sales 2010 2011 2012

Glass Wares $23,180 $40,565 $56,791
Non-Glass Wares $732 $1,464 $1,757
Consignment Items $0 $0 $0
Subtotal Direct Cost of Sales $23,912 $42,029 $58,548

BUSINESS PLAN Page 10

 [COMPANY NAME]

Chart: Sales by Year

Sales by Year

$300,000

$270,000

$240,000

$210,000 Glass Wares

$180,000 Non-Glass Wares
$150,000
Consignment Items
$120,000

$90,000

$60,000

$30,000

$0
2010 2011 2012

BUSINESS PLAN Page 11

 [COMPANY NAME]

5.5 Milestones

The accompanying table shows specific milestones, with dates, and budgets. The milestones
represented in this plan are those, which we have determined to be the most important.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Receive Grant Funding 11/1/2010 11/1/2010 $160,000

Renovate/Remodel 11/1/2010 12/31/2010 ($20,000)

Hire Employees 11/1/2010 11/8/2010 $0

Purchase Equipment 11/8/2010 12/6/2010 ($8,000)

Purchase Inventory 11/8/2010 11/22/2010 ($12,000)

Design New Technology 7/1/2010 10/1/2010 ($15,000)

Totals $105,000

Chart: Milestones

Milestones

Receive Grant Funding

Renovate/Remodel

Hire Employees

Purchase Equipment

Purchase Inventory

Design New Technology

Jul
Aug
Sep
Oct
Nov
Dec

BUSINESS PLAN Page 12

 [COMPANY NAME]

6.0 Management Summary

[COMPANY NAME] is still a small and growing operation therefore; [NAME], the owner, solely
manages it. 

6.1 Personnel Plan

As the personnel plan shows, [COMPANY NAME] expects to make significant investments in three
employees all of who have the potential to go full time when the internet operation is developed.

Table: Personnel

Personnel Plan
2010 2011 2012
F/T Clerks $5,760 $36,000 $37,080
P/T Clerks $1,440 $9,000 $9,270
Total People 3 3 3

Total Payroll $7,200 $45,000 $46,350

BUSINESS PLAN Page 13

 [COMPANY NAME]

7.0 Financial Plan

The following subtopics highlight the financial plan for [COMPANY NAME].

7.1 Start-up Funding

[COMPANY NAME] start-up costs are detailed below, in the Start-up Table.  The following table
shows how these start-up costs will be funded by a grant of $160,000.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $45,100
Start-up Assets to Fund $33,000
Total Funding Required $78,100

Assets
Non-cash Assets from Start-up $27,000
Cash Requirements from Start-up $6,000
Additional Cash Raised $81,900
Cash Balance on Starting Date $87,900
Total Assets $114,900

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
Owner $0
Investor $160,000
Additional Investment Requirement $0
Total Planned Investment $160,000

Loss at Start-up (Start-up Expenses) ($45,100)

Total Capital $114,900

Total Capital and Liabilities $114,900

BUSINESS PLAN Page 14

 [COMPANY NAME]

Total Funding $160,000

7.2 Important Assumptions

Important assumptions for this plan are found in the following table. These assumptions largely
determine the financial plan and require that we secure additional financing.

7.3 Break-even Analysis

The Break-even Analysis chart and table show that if the costs stay at the current, or relatively
stable, level [COMPANY NAME] will be able to make increased profits for all three-plan years. The
break-even point is $5,165 per month.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $5,165

Assumptions:
Average Percent Variable Cost 24%
Estimated Monthly Fixed Cost $3,930

Chart: Break-even Analysis

Break-even Analysis
$5,000

$4,000

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

$0 $2,000 $4,000 $6,000 $8,000 $10,000

$1,000 $3,000 $5,000 $7,000 $9,000 $11,000

BUSINESS PLAN Page 15

 [COMPANY NAME]

7.4 Projected Profit and Loss

As the profit and loss table shows, [COMPANY NAME] expects to continue its steady growth
in profitability over the next three years of operations.

Table: Profit and Loss

Pro Forma Profit and Loss

2010 2011 2012
Sales $100,000 $196,500 $280,031
Direct Cost of Sales $23,912 $42,029 $58,548
Other Costs of Sales $0 $0 $0
Total Cost of Sales $23,912 $42,029 $58,548

Gross Margin $76,088 $154,471 $221,483

Gross Margin % 76.09% 78.61% 79.09%

Expenses
Payroll $7,200 $45,000 $46,350
Marketing/Promotion $3,500 $3,500 $3,500
Depreciation $0 $0 $0
Rent $18,000 $18,000 $18,000
Utilities $6,000 $6,000 $6,000
Insurance $600 $600 $600
Payroll Taxes $1,080 $6,750 $6,953
Other $10,780 $10,780 $10,780

Total Operating Expenses $47,160 $90,630 $92,183

Profit Before Interest and Taxes $28,928 $63,841 $129,301

EBITDA $28,928 $63,841 $129,301
Interest Expense $0 $0 $0
Taxes Incurred $8,678 $19,152 $38,790

Net Profit $20,250 $44,689 $90,511

Net Profit/Sales 20.25% 22.74% 32.32%

BUSINESS PLAN Page 16

 [COMPANY NAME]

Chart: Profit Yearly

Profit Yearly

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
2010 2011 2012

Chart: Gross Margin Yearly

Gross Margin Yearly

$210,000

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0
2010 2011 2012

BUSINESS PLAN Page 17

 [COMPANY NAME]

7.5 Projected Cash Flow

The financial outlook is positive as the company rolls out and meets its milestones. [COMPANY
NAME] expects to be cash flow positive for all three years of the plan.

Table: Cash Flow

Pro Forma Cash Flow

2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $100,000 $196,500 $280,031
Subtotal Cash from Operations $100,000 $196,500 $280,031

Additional Cash Received

Sales Tax, VAT, HST/GST Received $6,000 $11,790 $16,802
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 $106,000 $208,290 $296,833

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $7,200 $45,000 $46,350
Bill Payments $57,798 $111,146 $142,011
Subtotal Spent on Operations $64,998 $156,146 $188,361

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $6,000 $11,790 $16,802
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 $70,998 $167,936 $205,163

Net Cash Flow $35,002 $40,354 $91,670

Cash Balance $122,902 $163,256 $254,926

BUSINESS PLAN Page 18

 Feb
[COMPANY NAME]

Jan
Chart: Cash

Cash

$120,000

$100,000

$80,000
Net Cash Flow

$60,000 Cash Balance

$40,000

$20,000

$0

BUSINESS PLAN Page 19

 [COMPANY NAME]

7.6 Projected Balance Sheet

[COMPANY NAME]'s projected company balance sheet follows.

Table: Balance Sheet

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $122,902 $163,256 $254,926
Inventory $1,804 $11,128 $12,286
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $139,706 $189,384 $282,212

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $139,706 $189,384 $282,212

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $4,556 $9,545 $11,863
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,556 $9,545 $11,863

Long-term Liabilities $0 $0 $0
Total Liabilities $4,556 $9,545 $11,863

Paid-in Capital $160,000 $160,000 $160,000

Retained Earnings ($45,100) ($24,850) $19,838
Earnings $20,250 $44,689 $90,511
Total Capital $135,150 $179,838 $270,349
Total Liabilities and Capital $139,706 $189,384 $282,212

Net Worth $135,150 $179,838 $270,349

BUSINESS PLAN Page 20

 [COMPANY NAME]

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification: Cigar Cigarette & Tobacco Dealers-Wholesale (SIC: 519402),
are shown for comparison.

Table: Ratios

Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth n/a. 96.50% 42.51% -2.33%

Percent of Total Assets

Inventory 1.29% 5.88% 4.35% 19.90%
Other Current Assets 10.74% 7.92% 5.32% 42.11%
Total Current Assets 100.00% 100.00% 100.00% 83.22%
Long-term Assets 0.00% 0.00% 0.00% 16.78%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 3.26% 5.04% 4.20% 42.57%

Long-term Liabilities 0.00% 0.00% 0.00% 47.50%
Total Liabilities 3.26% 5.04% 4.20% 90.06%
Net Worth 96.74% 94.96% 95.80% 9.94%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.09% 78.61% 79.09% 26.00%
Selling, General & Administrative 55.84% 55.87% 46.77% 9.57%
Expenses
Advertising Expenses 3.50% 1.78% 1.25% 0.47%
Profit Before Interest and Taxes 28.93% 32.49% 46.17% 2.88%

Main Ratios
Current 30.66 19.84 23.79 1.57
Quick 30.27 18.67 22.75 1.10
Total Debt to Total Assets 3.26% 5.04% 4.20% 90.06%
Pre-tax Return on Net Worth 21.40% 35.50% 47.83% 154.49%
Pre-tax Return on Assets 20.71% 33.71% 45.82% 15.35%

Additional Ratios 2010 2011 2012

Net Profit Margin 20.25% 22.74% 32.32% n/a
Return on Equity 14.98% 24.85% 33.48% n/a

Activity Ratios
Inventory Turnover 6.64 6.50 5.00 n/a
Accounts Payable Turnover 13.69 12.17 12.17 n/a
Payment Days 27 22 27 n/a
Total Asset Turnover 0.72 1.04 0.99 n/a

BUSINESS PLAN Page 21

 [COMPANY NAME]

Debt Ratios
Debt to Net Worth 0.03 0.05 0.04 n/a
Current Liabilities to Liabilities 1.00 1.00 1.00 n/a

Liquidity Ratios
Net Working Capital $135,150 $179,838 $270,349 n/a
Interest Coverage 0.00 0.00 0.00 n/a

Additional Ratios
Assets to Sales 1.40 0.96 1.01 n/a
Current Debt/Total Assets 3% 5% 4% n/a
Acid Test 30.27 18.67 22.75 n/a
Sales/Net Worth 0.74 1.09 1.04 n/a
Dividend Payout 0.00 0.00 0.00 n/a

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 Appendix

Table: Sales Forecast

Sales Forecast

2010 2011 2012

Sales

Glass Wares $95,000 $185,250 $254,719

Non-Glass Wares $3,000 $6,750 $15,188

Consignment Items $2,000 $4,500 $10,125

Total Sales $100,000 $196,500 $280,031

Direct Cost of Sales 2010 2011 2012

Glass Wares $23,180 $40,565 $56,791

Non-Glass Wares $732 $1,464 $1,757

Consignment Items $0 $0 $0

Subtotal Direct Cost of Sales $23,912 $42,029 $58,548

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 Appendix

Table: Personnel

Personnel Plan

2010 2011 2012

F/T Clerks $5,760 $36,000 $37,080

P/T Clerks $1,440 $9,000 $9,270

Total People 3 3 3

Total Payroll $7,200 $45,000 $46,350

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 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

2010 2011 2012
Sales $100,000 $196,500 $280,031
Direct Cost of Sales $23,912 $42,029 $58,548
Other Costs of Sales $0 $0 $0
Total Cost of Sales $23,912 $42,029 $58,548

Gross Margin $76,088 $154,471 $221,483

Gross Margin % 76.09% 78.61% 79.09%

Expenses
Payroll $7,200 $45,000 $46,350
Marketing/Promotion $3,500 $3,500 $3,500
Depreciation $0 $0 $0
Rent $18,000 $18,000 $18,000
Utilities $6,000 $6,000 $6,000
Insurance $600 $600 $600
Payroll Taxes $1,080 $6,750 $6,953
Other $10,780 $10,780 $10,780

Total Operating Expenses $47,160 $90,630 $92,183

Profit Before Interest and Taxes $28,928 $63,841 $129,301

EBITDA $28,928 $63,841 $129,301
Interest Expense $0 $0 $0
Taxes Incurred $8,678 $19,152 $38,790

Net Profit $20,250 $44,689 $90,511

Net Profit/Sales 20.25% 22.74% 32.32%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $100,000 $196,500 $280,031
Subtotal Cash from Operations $100,000 $196,500 $280,031

Additional Cash Received

Sales Tax, VAT, HST/GST Received $6,000 $11,790 $16,802
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 $106,000 $208,290 $296,833

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $7,200 $45,000 $46,350
Bill Payments $57,798 $111,146 $142,011
Subtotal Spent on Operations $64,998 $156,146 $188,361

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $6,000 $11,790 $16,802
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 $70,998 $167,936 $205,163

Net Cash Flow $35,002 $40,354 $91,670

Cash Balance $122,902 $163,256 $254,926

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 Appendix

BUSINESS PLAN Page 5

 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $122,902 $163,256 $254,926
Inventory $1,804 $11,128 $12,286
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $139,706 $189,384 $282,212

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $139,706 $189,384 $282,212

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $4,556 $9,545 $11,863
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,556 $9,545 $11,863

Long-term Liabilities $0 $0 $0
Total Liabilities $4,556 $9,545 $11,863

Paid-in Capital $160,000 $160,000 $160,000

Retained Earnings ($45,100) ($24,850) $19,838
Earnings $20,250 $44,689 $90,511
Total Capital $135,150 $179,838 $270,349
Total Liabilities and Capital $139,706 $189,384 $282,212

Net Worth $135,150 $179,838 $270,349

BUSINESS PLAN Page 6