[Company Name] 2010

[Company Name]
[Name]
[Address]
Email:  [Email Address]
Phone: XXX-XXX-XXXX
Fax:   XXX-XXX-XXXX
 [Company Name] 2010

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...........................................................................................................................1
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 Company History.......................................................................................................................2
Table: Past Performance............................................................................................................3
Chart: Past Performance............................................................................................................4
3.0 Products and Services.................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................5
Table: Market Analysis................................................................................................................5
4.2 Target Market Segment Strategy.......................................................................................6
4.3 Service Business Analysis......................................................................................................6
4.3.1 Competition and Buying Patterns...............................................................................6
5.0 Web Plan Summary......................................................................................................................7
5.1 Website Marketing Strategy.................................................................................................7
5.2 Development Requirements..................................................................................................7
6.0 Strategy and Implementation Summary.............................................................................7
6.1 SWOT Analysis...........................................................................................................................7
6.1.1 Strengths..............................................................................................................................7
6.1.2 Weaknesses.........................................................................................................................7
6.1.3 Opportunities......................................................................................................................8
6.1.4 Threats..................................................................................................................................8
6.2 Competitive Edge......................................................................................................................8
6.3 Marketing Strategy...................................................................................................................8
6.4 Sales Strategy............................................................................................................................8
6.4.1 Sales Forecast....................................................................................................................9
Table: Sales Forecast..............................................................................................................9
Chart: Sales Monthly.............................................................................................................10
Chart: Sales by Year..............................................................................................................10
6.5 Milestones..................................................................................................................................11
Table: Milestones........................................................................................................................11
7.0 Management Summary.............................................................................................................11
7.1 Personnel Plan..........................................................................................................................12
Table: Personnel..........................................................................................................................12
8.0 Financial Plan................................................................................................................................12
8.1 Important Assumptions........................................................................................................12
8.2 Break-even Analysis...............................................................................................................13
Table: Break-even Analysis....................................................................................................13
Chart: Break-even Analysis....................................................................................................13
8.3 Projected Profit and Loss.....................................................................................................14

Page 1
 Table of Contents

Table: Profit and Loss................................................................................................................14

Chart: Profit Monthly.................................................................................................................15
Chart: Profit Yearly.....................................................................................................................15
Chart: Gross Margin Monthly.................................................................................................16
Chart: Gross Margin Yearly.....................................................................................................16
8.4 Projected Cash Flow...............................................................................................................17
Table: Cash Flow.........................................................................................................................17
Chart: Cash...................................................................................................................................18
8.5 Projected Balance Sheet......................................................................................................18
Table: Balance Sheet.................................................................................................................19
Table: Ratios.................................................................................................................................20
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................1
Table: Profit and Loss..........................................................................................................................2
Table: Cash Flow...................................................................................................................................3
Table: Balance Sheet...........................................................................................................................5

Page 2
 [Company Name] 2010

1.0 Executive Summary

[Company Name] is headquartered in [CITY], [STATE].

 
[Name]
[Address]
Email: [Email Address]
Phone: XXX-XXX-XXXX
Fax: XXX-XXX-XXXX

[Company Name] is led by a respected businessman, [Name], who has considerable experience
in running an effective business. [Company Name] is a Sole Proprietorship established in 1999.
The Company is headquartered in [CITY], [STATE], where it provides the service of selling and
installing heavy & light capacity scales. [Name] offers more than 30 years of hands-on industry
experience. 

The focus of this business plan is to put forth objectives to expand our territory, obtain
government contracts and to increase sales. [Company Name] is ready to elevate to the next
step. The Company is seeking grant funding in the amount of $250,000. The funding will be used
to purchase a new shop, purchase a new test truck, hire a full-time employee, pay off
debt, obtain a government contract and build a new website.

Based on the detailed financial projections, [Company Name] future sales for 2010, 2011
and 2012 are expected to be $196,233, $202,120 and $208,184, respectively.

Chart: Highlights

Highlights

$200,000

$180,000

$160,000

$140,000 Sales
$120,000
Gross Margin
$100,000
Net Profit
$80,000

$60,000

$40,000

$20,000

$0
2010 2011 2012

21

[Name] XXX-XXX-XXXX | 1.0 Executive Summary

 [Company Name] 2010

1.1 Objectives

[Company Name] has three main objectives:

1. To expand our territory

2. To obtain government contracts
3. To increase sales

1.2 Mission

[Company Name]' mission is to provide a professional scale service focused on fairness between

the producers and the consumers.

1.3 Keys to Success

1. Superior customer service

2. Outstanding reputation and appearance
3. Personal integrity
4. Long-lasting relationships with clients

2.0 Company Summary

[Company Name] is headquartered in [CITY], [STATE]

 
Name: [Name]
Address: [Address]
Email: [Email Address]
Phone: XXX-XXX-XXXX
Fax: XXX-XXX-XXXX
 
[Company Name] is a Sole Proprietorship established in 1999. The owner [Name] brings over 30
years of experience to the scale and measurement instruments industry. [Company Name]
provides the service of selling and installing heavy & light capacity scales. Currently, the
Company has a small shop to work on bench scales; however, 99% of the services provided are
at the customer's site. 

2.1 Company Ownership

[Company Name] is a sole proprietorship. The sole owner is [Name].

2.2 Company History

Sales for 2007, 2008, and 2009 were $234,809, $359,942 and $186,861, respectively. Earnings

for this period were $86,101, $140,961 and $98,605, respectively. The earnings were affected by
the bad economy.
 
The Past Financial Performance shows that we have had a decline in our sales. 21
 

[Name] XXX-XXX-XXXX | 2.0 Company Summary

 [Company Name] 2010

Table: Past Performance

Past Performance
2007 2008 2009
Sales $234,809 $359,942 $186,861
Gross Margin $234,810 $359,942 $186,861
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $148,708 $218,994 $88,266
Collection Period (days) 365 251 613

Balance Sheet
2007 2008 2009

Current Assets
Cash $1,381 $3,936 $562
Accounts Receivable $19,763 $52,964 $22,443
Other Current Assets $662 $662 ($2,838)
Total Current Assets $21,806 $57,562 $20,167

Long-term Assets
Long-term Assets $5,775 $5,729 $5,729
Accumulated Depreciation ($115,842) ($115,888) ($115,888)
Total Long-term Assets $121,617 $121,617 $121,617

Total Assets $143,423 $179,179 $141,784

Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $6,129 $6,129 $6,129
Other Current Liabilities (interest free) $7,657 $9,423 $14,315
Total Current Liabilities $13,786 $15,552 $20,444

Long-term Liabilities ($12,982) ($12,982) ($14,636)

Total Liabilities $804 $2,570 $5,808

Paid-in Capital ($502,464) ($635,282) ($743,310)

Retained Earnings $558,982 $670,930 $780,681
Earnings $86,101 $140,961 $98,605
Total Capital $142,619 $176,609 $135,976

Total Capital and Liabilities $143,423 $179,179 $141,784

Other Inputs
Payment Days 30 30 30
Sales on Credit $19,764 $52,964 $22,443
Receivables Turnover 1.00 1.00 1.00

21

[Name] XXX-XXX-XXXX | 2.0 Company Summary

 [Company Name] 2010

Chart: Past Performance

Past Performance

$360,000

$320,000

$280,000

$240,000 Sales

$200,000 Gross

$160,000 Net

$120,000

$80,000

$40,000

$0
2007 2008 2009

3.0 Products and Services

[Company Name] provides customers with a year round, top-notch service. Our Company repairs
and sells truck scales, floor scales, livestock scales, bench scales and gram scales. We connect to
computers, extra displays, remote keypads, badge readers, etc.  We also provide software and
technical support. The Company uses several suppliers. Our biggest suppliers are Cardinal scales,
Rice Lake Weighing, Toledo, Matko, Tare and Dell.

4.0 Market Analysis Summary

The overall market for scales and measurement instruments is immense. Scales are widely used
in industries that include: agriculture, commerce, scientific research, and medical and health
departments. This industry also includes companies that design, manufacture, market, and
support process and flow control devices, precise measurement and signal processing tools, and
other electronic test and measurement instruments. These instruments are used to strengthen
enterprise management, strict production, trade settlement, transportation, port measurement
and scientific research.  

There are three main types of scales that are valuable to our modern society.  These scale types
includes: mechanical scales, electronic scales and mechanical and electrical integration. Because
of its wide range, scales also contribute to retail, laboratories, medical offices, commercial
transactions, etc. In reality, all businesses are in need of a product that will enable them to
maintain positive customer relations and the scale industry aids in allowing business to provide
elite service to customers.

[Company Name] caters to customers in the wholesale, retail or private segment. Our customers 21
are mainly in the agricultural, industrial and medical field. [Company Name] has the products and
services necessary to flourish within these markets. By supplying quality products and delivering
superior customer service, [Company Name]' potential is excellent.

[Name] XXX-XXX-XXXX | 4.0 Market Analysis Summary

 [Company Name] 2010

4.1 Market Segmentation

Our market segmentation scheme is fairly straightforward, and focuses on our target market,
customers within the scale industry. These customers prefer certain quality of work and it’s our
duty to deliver on their expectations.

The information contained in our market analysis table, displays [Company Name] main markets,
which are agricultural businesses, industrial businesses and medical businesses. Our agriculture
business market is our biggest and most popular market. This market is huge due to growers
building plants to process their own crops. Our market for industrial and medical
businesses exists due to our professional reputation, the Company's strong work ethics, as well
as through the long-standing relationship we've developed.

Our customers appreciate our work ethics and exceptional service. They utilize us to maximize
their productivity. These customers have the option to do business with other scale repair and
installation companies, but they understand that working with [Company Name] is beneficial to
them because we deliver the dedication and skilled labor that they desire.

Table: Market Analysis

Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Agriculture Businesses 2% 14,000 14,280 14,566 14,857 15,154 2.00%
Industrial Businesses 2% 7,000 7,140 7,283 7,429 7,578 2.00%
Medical Businesses 2% 7,000 7,140 7,283 7,429 7,578 2.00%
Total 2.00% 28,000 28,560 29,132 29,715 30,310 2.00%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Agriculture Businesses

Industrial Businesses

Medical Businesses

21

[Name] XXX-XXX-XXXX | 4.0 Market Analysis Summary

 [Company Name] 2010

4.2 Target Market Segment Strategy

Currently, [Company Name] serves the scales market segment. Our choice of target markets is
based on comprehensive experience within the scale industry coupled with an in-depth
understanding of the customer's needs. Our skills and capabilities have allowed us to effectively
compete and establish a reputation within our area. However strengthening our marketing
strategy will improve our profitability levels and build on to our customer base.

Because we mainly focus on agriculture, industrial and medical businesses, we know how to meet
the specific needs of our clients. Therefore, we will utilize the following sales literature to reach
our target market: 

 Business cards
 Website
 Online ads

4.3 Service Business Analysis

[Company Name] offers scale installation and repair services to agricultural, industrial and
medical businesses throughout the [CITY], [STATE] area. Additionally, we are dealers for several
scale suppliers. We buy the equipment then sell the goods and services to the public. It's our
duty to offer our customers the best service and products at reasonable prices. We have an
advantage because there are only a few scale service businesses in the [CITY] area.

[Company Name] offers distinct services within this market. We provide our clients with services
such as:   

 scale installation
 scale repairs/calibrations

As simple as it may be, our method of executing exceptional customer service has an important
effect on the bottom line: People want to give their business to those who appreciate it. Skillful
use of advertising and strong communication will bring the business we desire.

4.3.1 Competition and Buying Patterns

[Company Name] seek to establish strong relationships with clients to ensure that they are
satisfied. Our goal is to fulfill our client’s strict demands because it aids us in generating future
business. If our client is happy, they will recommend us to others who need our service. 

Oftentimes word of mouth marketing provides more business than advertising; thus we
heavily rely on word of mouth to generate business. Additionally, our reasonable prices, quality
service and strong work ethics also contribute in gaining or maintaining customers.

21

[Name] XXX-XXX-XXXX | 4.0 Market Analysis Summary

 [Company Name] 2010

5.0 Web Plan Summary

Our website is an opportunity to offer current information on service offerings,

company background, announcements and special discounts. The website is another method to
generate steady business in our area.

5.1 Website Marketing Strategy

Our website will be promoted on all of our marketing materials. We will advertise our site on our
business cards as well as on other industry related publications and online ads. [Company Name]
also has an alliance with many local businesses; thus we will capitalize on using their marketing
channels to promote our website.

5.2 Development Requirements

[Company Name] will have an attractive, simple and informative internet focused website. The
owner, [Name] will maintain the website; thus we will need a user friendly site from
a dependable hosting company.

6.0 Strategy and Implementation Summary

We have clearly defined the target market and have differentiated ourselves by offering a solid
solution to fulfilling our customers' needs. Reasonable sales targets have been established with
an implementation plan designed to ensure the goals set forth below are achieved.

6.1 SWOT Analysis

The SWOT analysis aids in displaying the internal strengths and weaknesses that [Company
Name] must address. It allows us to examine the opportunities presented to [Company Name] as
well as potential threats. The Company's strength will help it to succeed. These strengths are:
having an outstanding reputation, 32 years of industry knowledge, access to many manufactures
for equipments and parts, excellent and stable staff and good referral relationships. Strengths are
valuable, but it is also important to realize the weaknesses [Company Name] must address.
These weaknesses include: test trucks that need to be upgraded and lack of man power to
respond quickly to breakdowns.

6.1.1 Strengths

[Company Name] has much notable strength. These strengths include the Companies:

 Outstanding reputation.
 32 years of industry knowledge.
 Access to many manufactures for equipments and parts.
 Excellent and stable staff, offering personalized customer service.
 High customer loyalty and good referral relationships.

6.1.2 Weaknesses 21

[Company Name] has a few weaknesses. These are the following weaknesses:

 Our test truck needs upgrading. 

[Name] XXX-XXX-XXXX | 6.0 Strategy and Implementation Summary
 [Company Name] 2010

 Lack of man power to respond quickly to breakdowns. 

6.1.3 Opportunities

Implementing our marketing plan will provide new opportunities for [Company Name]. Our
Company hopes to extend our reach through strategic alliances that offer sources for referrals
and joint marketing activities.

6.1.4 Threats

[Company Name] knows that a downturn in the economy can impact sales and service.
Additionally, customer bankruptcy is a threat that can affect our Company. If the customers
within our main markets went bankrupt, our Company would suffer financially because we rely
heavily on their business.

6.2 Competitive Edge

[Company Name]' competitive edge relies in our ability to position ourselves as strategic ally with
our customers. [Company Name]' reputation of providing personal service and flexible hours as
well as being trustworthy and reliable is important. By building a business based on long-standing
relationships with satisfied clients, we simultaneously build defenses against competition. The
longer the relationship stands, the more we help our clients understand what we offer them and
why they need it. 

6.3 Marketing Strategy

Our marketing strategy involves advertising and reaching all the potential clients that we can.
Our goal is to provide exceptional service to our customers. We know what each customer needs
and aim to satisfy them.

Currently, [Company Name] has an advantage because the owner, [Name] is a superior business
man that has excellent work ethics, products and communication skills. [Name] also offers 32
years of experience to the scales and measurement instruments industry. [Company Name]'
quality of work and level of integrity has helped the Company build a strong reputation with their
customer base.

6.4 Sales Strategy

The owner of [Company Name] has excellent customer relations and work ethics; these are the
skills which have been useful in making customers comfortable in trusting our Company to sell
and install heavy and light capacity scales for them. Keeping customers happy, we feel, is an
implicit part of building a relationship that will encourage repeat business.

21

[Name] XXX-XXX-XXXX | 6.0 Strategy and Implementation Summary

 [Company Name] 2010

6.4.1 Sales Forecast

[Company Name] averages about 9 scale installations a month. Each installation cost $95/hr and
is calculated on a 5 hour rate; thus, the average monthly income for scale installations is $4,275.

The Company averages about 15 repairs a month. Each repair cost $95/hr and is calculated on a
5 hour rate; thus, the average monthly income for repairs is $7,125.

The income for sales merchandise totaled $59,624; thus, the average monthly income for sales
merchandise is $4,967.

Our 2010 forecast for [Company Name] total sales are $196,233. During the years 2011 and
2012 we will see a 3% annual increase.

Table: Sales Forecast

Sales Forecast
2010 2011 2012
Sales
Installations $51,309 $52,848 $54,434
Repairs $85,300 $87,859 $90,495
Merchandise $59,624 $61,413 $63,255
Total Sales $196,233 $202,120 $208,184

Direct Cost of Sales 2010 2011 2012

Labor $9,812 $10,106 $10,409
Fuel $9,810 $10,105 $10,408
Subtotal Direct Cost of Sales $19,622 $20,211 $20,817

21

[Name] XXX-XXX-XXXX | 6.0 Strategy and Implementation Summary

 [Company Name] 2010

Chart: Sales Monthly

Sales Monthly

$24,000

$21,000

$18,000

Installations
$15,000
Repairs
$12,000
Merchandise
$9,000

$6,000

$3,000

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

Chart: Sales by Year

Sales by Year

$210,000

$180,000

$150,000 Installations

$120,000 Repairs

Merchandise
$90,000

$60,000

$30,000

$0
2010 2011 2012

21

[Name] XXX-XXX-XXXX | 6.0 Strategy and Implementation Summary

 [Company Name] 2010

6.5 Milestones

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

1. Obtain grant funding to improve business

2. Purchase a new shop to have more room and more up to date technology.
3. Purchase a new test truck to increase our sales.
4. Hire a full-time employee to assist with the heavy work load.
5. Pay off the debt we've accumulated.
6. Obtain a government contract to improve our business.
7. Build a new website to increase sales and market our services.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

New Shop 5/1/2010 6/1/2010 $80,000 [Name] Administrative/Sales
New Test Truck 5/1/2010 6/1/2010 $75,000 [Name] Services
Full-time Employee 5/1/2010 6/1/2010 $50,000 [Name] Human Resources
Pay Off Debt 5/1/2010 6/1/2010 $30,000 [Name] Finance
Government Contract 5/1/2010 6/1/2010 $10,000 [Name] Services
Website 5/1/2010 6/1/2010 $5,000 [Name] Administrative/Advertising
Totals $250,000

7.0 Management Summary

[Name] is the owner of [Company Name]. [Name] has 11 years of managerial experience in

the scales and measurement instruments industry and has extensive knowledge of this market. 

[Name] manages all aspects of the business with the assistance of his wife, who receives a salary
of $26,000 a year. A future goal of [Company Name] is to hire personnel to assist with the
growing business. The Company would benefit tremendously with an additional staff member,
who can aid in the installations and repairs of heavy and light capacity scales.

21

[Name] XXX-XXX-XXXX | 7.0 Management Summary

 [Company Name] 2010

7.1 Personnel Plan

Currently, all of [Company Name]' services are handled by the owner, [Name]. [Company

Name]' future goal is to hire more personnel in 2011 to assist with the installation and repairs.

Table: Personnel

Personnel Plan
2010 2011 2012
Administrative Assistant $26,004 $26,784 $27,588
Install/Repairs $0 $50,000 $51,500
Total People 0 2 2
Total Payroll $26,004 $76,784 $79,088

8.0 Financial Plan

The current financial plan for [Company Name] is to obtain grant funding in the amount of
$250,000. The grant will be used to purchase a new shop, purchase a new test truck to increase
our sales, build a website to increase sales and market our services, hire a full-time employee
assist with the heavy work load, pay off the debt we've accumulated and obtain a government
contract improve our business.

[Company Name] future sales for 2010, 2011 and 2012 are expected to be

$196,233, $202,120 and $208,184, respectively. The earnings for this period are $108,028,
$125,042 and $147,224, respectively.

The following sections of this plan will serve to describe [Company Name] financial plan in more
detail:

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

8.1 Important Assumptions

The table below presents the assumptions used in the financial calculations of this business plan. 

The average percent variable cost is estimated to be 10%. The estimated monthly fixed cost
is $6,944.

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

8.2 Break-even Analysis

For our break-even analysis, the monthly sale needed to break-even is $7,716. The break-even
analysis has been calculated on the "burn rate" of The Company. The Company feels that this
gives the investor a more accurate picture of the actual risk of the venture.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $7,716

Assumptions:
Average Percent Variable Cost 10%
Estimated Monthly Fixed Cost $6,944

Chart: Break-even Analysis

Break-even Analysis
$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

($4,000)

($5,000)

($6,000)

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

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

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

8.3 Projected Profit and Loss

Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view, and
is based in large part on past performance.

The sales for 2010, 2011 and 2012 are $196,233, $202,120 and $208,184, respectively. The net
profit for the same period is $64,384, $31,302 and $32,228, respectively. The percentages of the
net profit sales for this period were 32.81%, 15.49% and 15.48%, respectively.

The depreciation is the cost of the test truck and the cost of the new shop, which totals
$155,000. $155,000 over a 5 year period is $31,000 a year. $31,000 divided into 12 months
equals $2,583.

The aggregated amount of miscellaneous expenses is 5% of the total sales.

Table: Profit and Loss

Pro Forma Profit and Loss

2010 2011 2012
Sales $196,233 $202,120 $208,184
Direct Cost of Sales $19,622 $20,211 $20,817
Other Costs of Sales $1,962 $2,021 $2,082
Total Cost of Sales $21,584 $22,232 $22,899

Gross Margin $174,649 $179,888 $185,285

Gross Margin % 89.00% 89.00% 89.00%

Expenses
Payroll $26,004 $76,784 $79,088
Marketing/Promotion $264 $272 $280
Depreciation $31,008 $31,938 $32,896
Utilities $7,788 $8,022 $8,262
Insurance $7,740 $7,972 $8,211
Payroll Taxes $708 $729 $751
Other $9,816 $10,110 $10,413

Total Operating Expenses $83,328 $135,827 $139,902

Profit Before Interest and Taxes $91,321 $44,061 $45,383

EBITDA $122,329 $75,999 $78,279
Interest Expense ($657) ($657) ($657)
Taxes Incurred $27,593 $13,415 $13,812

Net Profit $64,384 $31,302 $32,228

Net Profit/Sales 32.81% 15.49% 15.48%

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

Chart: Profit Monthly

Profit Monthly

$10,000

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

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

Chart: Profit Yearly

Profit Yearly

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
2010 2011 2012

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

Chart: Gross Margin Monthly

Gross Margin Monthly

$20,000

$18,000

$16,000

$14,000

$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

Chart: Gross Margin Yearly

Gross Margin Yearly

$200,000

$180,000

$160,000
$140,000

$120,000

$100,000

$80,000

$60,000
$40,000

$20,000

$0
2010 2011 2012

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

8.4 Projected Cash Flow

[Company Name] has applied for a grant of $250,000. In 2010, we forecast that we'll receive
$250,000 in the month of May. During this period, we'll use $80,000 to purchase a new shop and
$75,000 to purchase a new test truck. These purchases are reflected in the purchase of other
current assets. The remainder of the funds will be used to hire a full-time employee, pay off debt,
obtain government contract and build a new website.
 
The following table displays [Company Name] 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

2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $147,175 $151,590 $156,138
Cash from Receivables $60,513 $50,200 $51,706
Subtotal Cash from Operations $207,688 $201,790 $207,844

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 $250,000 $0 $0
Subtotal Cash Received $457,688 $201,790 $207,844

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $26,004 $76,784 $79,088
Bill Payments $66,353 $65,476 $63,817
Subtotal Spent on Operations $92,357 $142,260 $142,905

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 $155,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $247,357 $142,260 $142,905
21
Net Cash Flow $210,332 $59,531 $64,939
Cash Balance $210,894 $270,424 $335,363

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 Jan Feb Mar
[Company Name] 2010

Chart: Cash

Cash
$300,000

$250,000

$200,000

$150,000
Net Cash Flow
$100,000
Cash Balance
$50,000

$0

($50,000)

($100,000)

8.5 Projected Balance Sheet

The Company's net worth is $450,360, $481,663 and $513,890 for 2010, 2011, and 2012,
respectively.

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

Table: Balance Sheet

Pro Forma Balance Sheet

2010 2011 2012
Assets

Current Assets
Cash $210,894 $270,424 $335,363
Accounts Receivable $10,988 $11,318 $11,657
Other Current Assets ($2,838) ($2,838) ($2,838)
Total Current Assets $219,043 $278,904 $344,182

Long-term Assets
Long-term Assets $160,729 $160,729 $160,729
Accumulated Depreciation ($84,880) ($52,942) ($20,045)
Total Long-term Assets $245,609 $213,671 $180,774
Total Assets $464,652 $492,574 $524,956

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $8,484 $5,104 $5,258
Current Borrowing $6,129 $6,129 $6,129
Other Current Liabilities $14,315 $14,315 $14,315
Subtotal Current Liabilities $28,928 $25,548 $25,702

Long-term Liabilities ($14,636) ($14,636) ($14,636)

Total Liabilities $14,292 $10,912 $11,066

Paid-in Capital ($493,310) ($493,310) ($493,310)

Retained Earnings $879,286 $943,670 $974,973
Earnings $64,384 $31,302 $32,228
Total Capital $450,360 $481,663 $513,890
Total Liabilities and Capital $464,652 $492,574 $524,956

Net Worth $450,360 $481,663 $513,890

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

8.6 Business Ratios

The table below presents ratios from the appliance repair and maintenance markets as a
reference.

Table: Ratios

Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 5.02% 3.00% 3.00% -3.26%

Percent of Total Assets

Accounts Receivable 2.14% 1.79% 1.50% 12.28%
Other Current Assets -0.55% -0.45% -0.37% 36.14%
Total Current Assets 23.47% 18.84% 18.27% 61.83%
Long-term Assets 76.53% 81.16% 81.73% 38.17%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 7.32% 4.80% 3.74% 30.66%

Long-term Liabilities -2.85% -2.32% -1.88% 58.05%
Total Liabilities 4.46% 2.48% 1.86% 88.70%
Net Worth 95.54% 97.52% 98.14% 11.30%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 45.02% 45.02% 45.02% 53.42%
Selling, General & Administrative -7.99% -16.84% -25.69% 22.29%
Expenses
Advertising Expenses 0.13% 0.13% 0.13% 1.36%
Profit Before Interest and Taxes 75.40% 88.05% 100.71% 6.01%

Main Ratios
Current 3.21 3.92 4.88 1.53
Quick 3.21 3.92 4.88 1.09
Total Debt to Total Assets 4.46% 2.48% 1.86% 88.70%
Pre-tax Return on Net Worth 30.33% 29.04% 27.59% 245.85%
Pre-tax Return on Assets 28.98% 28.32% 27.08% 27.77%

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 [Company Name] 2010

Additional Ratios 2010 2011 2012

Net Profit Margin 53.01% 61.87% 70.72% n.a
Return on Equity 21.23% 20.33% 19.31% n.a

Activity Ratios
Accounts Receivable Turnover 4.46 4.46 4.46 n.a
Collection Days 63 81 81 n.a
Accounts Payable Turnover 10.66 12.17 12.17 n.a
Payment Days 27 41 32 n.a
Total Asset Turnover 0.38 0.32 0.27 n.a

Debt Ratios
Debt to Net Worth 0.05 0.03 0.02 n.a
Current Liab. to Liab. 1.64 1.94 2.01 n.a

Liquidity Ratios
Net Working Capital $82,867 $88,549 $112,832 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 2.61 3.12 3.73 n.a
Current Debt/Total Assets 7% 5% 4% n.a
Acid Test 2.92 3.55 4.48 n.a
Sales/Net Worth 0.40 0.33 0.27 n.a
Dividend Payout 0.00 0.00 0.00 n.a

21

[Name] XXX-XXX-XXXX | 8.0 Financial Plan

 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Installations $2,868 $3,069 $3,284 $3,514 $3,760 $4,023 $4,305 $4,606 $4,928 $5,273 $5,642 $6,037
Repairs $4,768 $5,102 $5,459 $5,841 $6,250 $6,688 $7,156 $7,657 $8,193 $8,767 $9,381 $10,038
Merchandise $3,333 $3,566 $3,816 $4,083 $4,369 $4,675 $5,002 $5,352 $5,727 $6,128 $6,557 $7,016
Total Sales $10,969 $11,737 $12,559 $13,438 $14,379 $15,386 $16,463 $17,615 $18,848 $20,168 $21,580 $23,091

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Labor 5% $548 $587 $628 $672 $719 $769 $823 $881 $942 $1,008 $1,079 $1,155
Fuel 5% $548 $587 $628 $672 $719 $769 $823 $881 $942 $1,008 $1,079 $1,155
Subtotal Direct Cost of Sales $1,096 $1,174 $1,256 $1,344 $1,438 $1,538 $1,646 $1,762 $1,885 $2,016 $2,158 $2,309

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Administrative Assistant $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167
Install/Repairs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167

Page 1
 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $10,969 $11,737 $12,559 $13,438 $14,379 $15,386 $16,463 $17,615 $18,848 $20,168 $21,580 $23,091
Direct Cost of Sales $1,096 $1,174 $1,256 $1,344 $1,438 $1,538 $1,646 $1,762 $1,885 $2,016 $2,158 $2,309
Other Costs of Sales 10% $110 $117 $126 $134 $144 $154 $165 $176 $188 $202 $216 $231
Total Cost of Sales $1,206 $1,291 $1,381 $1,478 $1,582 $1,692 $1,811 $1,938 $2,073 $2,218 $2,374 $2,540

Gross Margin $9,763 $10,446 $11,178 $11,960 $12,797 $13,694 $14,652 $15,677 $16,775 $17,950 $19,206 $20,551
Gross Margin % 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00% 89.00%

Expenses
Payroll $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167
Marketing/Promotion $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22
Depreciation $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584 $2,584
Utilities $649 $649 $649 $649 $649 $649 $649 $649 $649 $649 $649 $649
Insurance $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645 $645
Payroll Taxes 15% $59 $59 $59 $59 $59 $59 $59 $59 $59 $59 $59 $59
Other 5% $818 $818 $818 $818 $818 $818 $818 $818 $818 $818 $818 $818

Total Operating $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944 $6,944
Expenses

Profit Before Interest and $2,819 $3,502 $4,234 $5,016 $5,853 $6,750 $7,708 $8,733 $9,831 $11,006 $12,262 $13,607
Taxes
EBITDA $5,403 $6,086 $6,818 $7,600 $8,437 $9,334 $10,292 $11,317 $12,415 $13,590 $14,846 $16,191
Interest Expense ($55) ($55) ($55) ($55) ($55) ($55) ($55) ($55) ($55) ($55) ($55) ($55)
Taxes Incurred $862 $1,067 $1,286 $1,521 $1,772 $2,041 $2,329 $2,636 $2,966 $3,318 $3,695 $4,099

Net Profit $2,012 $2,490 $3,002 $3,549 $4,136 $4,763 $5,434 $6,152 $6,920 $7,742 $8,622 $9,563
Net Profit/Sales 18.34% 21.21% 23.90% 26.41% 28.76% 30.96% 33.01% 34.92% 36.71% 38.39% 39.95% 41.42%

Page 2
 Appendix

Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations

Cash Sales $8,227 $8,803 $9,419 $10,079 $10,784 $11,540 $12,347 $13,211 $14,136 $15,126 $16,185 $17,318
Cash from Receivables $11,222 $11,313 $2,749 $2,941 $3,147 $3,367 $3,603 $3,855 $4,125 $4,414 $4,723 $5,054
Subtotal Cash from Operations $19,448 $20,116 $12,168 $13,020 $13,931 $14,907 $15,950 $17,067 $18,261 $19,540 $20,908 $22,372

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 (interest- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $250,000 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $19,448 $20,116 $12,168 $13,020 $263,931 $14,907 $15,950 $17,067 $18,261 $19,540 $20,908 $22,372

Page 3
 Appendix

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

Expenditures from Operations

Cash Spending $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167
Bill Payments $140 $4,216 $4,507 $4,817 $5,149 $5,505 $5,885 $6,293 $6,728 $7,194 $7,692 $8,226
Subtotal Spent on Operations $2,307 $6,383 $6,674 $6,984 $7,316 $7,672 $8,052 $8,460 $8,895 $9,361 $9,859 $10,393

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 Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $155,000 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $2,307 $6,383 $6,674 $6,984 $7,316 $162,672 $8,052 $8,460 $8,895 $9,361 $9,859 $10,393

Net Cash Flow $17,141 $13,733 $5,494 $6,035 $256,615 ($147,765) $7,898 $8,607 $9,367 $10,179 $11,049 $11,979
Cash Balance $17,703 $31,436 $36,930 $42,965 $299,580 $151,815 $159,713 $168,320 $177,687 $187,866 $198,915 $210,894

Page 4
 Appendix

Table: Balance Sheet

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

Current Assets
Cash $562 $17,703 $31,436 $36,930 $42,965 $299,580 $151,815 $159,713 $168,320 $177,687 $187,866 $198,915 $210,894
Accounts $22,443 $13,964 $5,585 $5,976 $6,395 $6,842 $7,321 $7,834 $8,382 $8,969 $9,597 $10,269 $10,988
Receivable
Other Current ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838) ($2,838)
Assets
Total Current $20,167 $28,829 $34,183 $40,068 $46,522 $303,584 $156,298 $164,709 $173,864 $183,818 $194,625 $206,346 $219,043
Assets

Long-term
Assets
Long-term $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $160,729 $160,729 $160,729 $160,729 $160,729 $160,729 $160,729
Assets
Accumulated ($115,888) ($113,304) ($110,720) ($108,136) ($105,552) ($102,968) ($100,384) ($97,800) ($95,216) ($92,632) ($90,048) ($87,464) ($84,880)
Depreciation
Total Long-term $121,617 $119,033 $116,449 $113,865 $111,281 $108,697 $261,113 $258,529 $255,945 $253,361 $250,777 $248,193 $245,609
Assets
Total Assets $141,784 $147,862 $150,632 $153,933 $157,803 $412,281 $417,411 $423,238 $429,809 $437,179 $445,402 $454,539 $464,652

Page 5
 Appendix

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

Current
Liabilities
Accounts $0 $4,066 $4,346 $4,646 $4,966 $5,309 $5,676 $6,069 $6,489 $6,938 $7,419 $7,934 $8,484
Payable
Current $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129 $6,129
Borrowing
Other Current $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315 $14,315
Liabilities
Subtotal Current $20,444 $24,510 $24,790 $25,090 $25,410 $25,753 $26,120 $26,513 $26,933 $27,382 $27,863 $28,378 $28,928
Liabilities

Long-term ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636) ($14,636)
Liabilities
Total Liabilities $5,808 $9,874 $10,154 $10,454 $10,774 $11,117 $11,484 $11,877 $12,297 $12,746 $13,227 $13,742 $14,292

Paid-in Capital ($743,310) ($743,310) ($743,310) ($743,310) ($743,310) ($493,310) ($493,310) ($493,310) ($493,310) ($493,310) ($493,310) ($493,310) ($493,310)
Retained $780,681 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286 $879,286
Earnings
Earnings $98,605 $2,012 $4,501 $7,503 $11,052 $15,188 $19,951 $25,385 $31,537 $38,457 $46,199 $54,821 $64,384
Total Capital $135,976 $137,988 $140,477 $143,479 $147,028 $401,164 $405,927 $411,361 $417,513 $424,433 $432,175 $440,797 $450,360
Total Liabilities $141,784 $147,862 $150,632 $153,933 $157,803 $412,281 $417,411 $423,238 $429,809 $437,179 $445,402 $454,539 $464,652
and Capital

Net Worth $135,976 $137,988 $140,477 $143,479 $147,028 $401,164 $405,927 $411,361 $417,513 $424,433 $432,175 $440,797 $450,360

Page 6