Business Plan Tire Shop

TOMOVILS MECHANICS- BUSINESS PLAN 2021
TOMOVILS
MECHANICS
FERNANDO
Business Address: 2910 St, Johns St, Port Moody B.C.V3H 2C3
Phone: (604)375-6159
Email: tomovilsmechanics@gmail.com
WWW.tomovils.com
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Tomovils Mechanics in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of Tomovils Mechanics.
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 Tomovils Mechanics.
Upon request, this document is to be immediately returned to Tomovils Mechanics.
___________________
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 ............................................................................................................................ 1
1.2 Mission ................................................................................................................................ 1
1.3 Keys to Success .................................................................................................................... 2
2.0 Company Summary ............................................................................................................. 2
2.1 Company Ownership .............................................................................................................. 2
2.2 Company History ................................................................................................................... 3
Table: Past Performance ........................................................................................................... 3
Chart: Past Performance .......................................................................................................... 4
3.0 Products and Services .......................................................................................................... 4
4.0 Strategy and Implementation Summary ................................................................................. 4
4.1 SWOT Analysis ...................................................................................................................... 4
4.1.1 Strengths ....................................................................................................................... 4
4.1.2 Weaknesses ................................................................................................................... 5
4.1.3 Opportunities .................................................................................................................. 5
4.1.4 Threats .......................................................................................................................... 5
4.2 Competitive Edge .................................................................................................................. 5
4.3 Sales Strategy ...................................................................................................................... 5
4.3.1 Sales Forecast ................................................................................................................ 5
Table: Sales Forecast ............................................................................................................... 5
Chart: Sales Monthly................................................................................................................ 6
Chart: Sales by Year ................................................................................................................ 6
4.4 Milestones ............................................................................................................................ 7
Table: Milestones .................................................................................................................... 7
5.0 Management Summary ........................................................................................................ 7
5.1 Personnel Plan ...................................................................................................................... 7
Table: Personnel...................................................................................................................... 7
6.0 Financial Plan ...................................................................................................................... 9
6.1Break-even Analysis ............................................................................................................... 9
Table: Break-even Analysis ....................................................................................................... 9
Chart: Break-even Analysis ....................................................................................................... 9
6.2 Projected Profit and Loss ...................................................................................................... 10
Table: Profit and Loss ............................................................................................................ 10
Chart: Profit Monthly.............................................................................................................. 11
Chart: Profit Yearly ................................................................................................................ 11
Chart: Gross Margin Monthly................................................................................................... 12
Chart: Gross Margin Yearly ..................................................................................................... 12
6.3 Projected Cash Flow ............................................................................................................ 13
Page 1
Table of Contents
Table: Cash Flow ................................................................................................................... 13

Chart: Cash .......................................................................................................................... 14
6.4 Projected Balance Sheet ....................................................................................................... 15
Table: Balance Sheet ............................................................................................................. 15
6.5 Business Ratios ................................................................................................................. 16
Table: Ratios ........................................................................................................................ 16
Table: Sales Forecast................................................................................................................. 1
Table: Profit and Loss ................................................................................................................ 2
Table: Cash Flow ....................................................................................................................... 4
Table: Balance Sheet ................................................................................................................. 7
Page 2
1.0 Executive Summary

Tomovils Mechanics is a tire retailer and repair shop located in Port Moody, British Columbia. This
business plan projects sales, profits, personnel changes, balances, and the nature of our
expansion over the course of the next three years of business. This projection includes the
$250,000 in funding sought, which will be instrumental in helping us to achieve our objectives. As
a well-established business (since 2000), our expansion will benefit us as much as it does the local
community, with whom we have created a loyal clientele.
Chart: Highlights
1.1 Objectives
Tomovils Mechanics currently sell, install and repair automobile tires. While these services are
very necessary, it would be very much to the benefit of our company to being selling and repairing
winter car tires for specialty vehicles. This includes mobilizing some components of Tomovils
Mechanics meaning that our representatives will need to be able to travel to nearby locations for
on-site tire changes and repairs. In some instances, moving vehicle is difficult, and the
transportation of the vehicles is even more expensive, mobility has the potential to be a crucial
asset that existing and high end customers will notice and appreciate.
1.2 Mission
Tomovils Mechanics is a retailer that combines the utility of specialized knowledge with the
personalized service for its valued customers. Our mission is to represent both our store and
ourselves. In doing so, we hope that every customer remembers us as fair, diligent, and reliable.
Page 1
1.3 Keys to Success
The Keys to success for Tomovils Mechanics are:
Good service - The fair and conscientious treatment of the customer is a fundamental component
to the success of any retailer.
Longevity - Tomovils Mechanics has been in business since 2000, which means that we have a
substantial presence in Port Moody and throughout neighboring Coquitlam and Burnaby
Municipalities.
Expansion - By increasing the size of our inventory and the span of that inventory (including the
addition of winter car tires), Tomovils Mechanics hopes to perpetuate its business for many years
to come.
2.0 Company Summary

COMPANY NAME has been in business since 2000 and is owned and managed by Fernando Perez,
the company founder. Having been in business for 35 years, Fernando has been able to establish
a very loyal clientele of consumers, local electric companies, water districts, and farmers.
2.1 Company Ownership

Fernando is the company's sole proprietor of Tomovils Mechanics.
Page 2
2.2 Company History

The past performance table shows sales, assets, liabilities, capital, and operating expenses for
Tomovils Mechanics for the most recent two years in business, having started in 2000. Because
the company is currently in the middle of the year 2021, financials cannot be accurately accounted
for.
Table: Past Performance

Past Performance
2019 2020
Sales $139,029 $136,773
Gross Margin $42,891 $39,841
Gross Margin % 30.85% 29.13%
Operating Expenses $43,970 $53,823
Inventory Turnover 1.37 1.34
Balance Sheet
2019 2020
Current Assets
Cash $3,242 $2,375
Inventory $70,000 $75,000
Other Current Assets $150,000 $150,000
Total Current Assets $223,242 $227,375
Long-term Assets
Long-term Assets $0 $0
Accumulated Depreciation $0 $0
Total Long-term Assets $0 $0
Total Assets $223,242 $227,375
Current Liabilities
Accounts Payable $0 $0
Current Borrowing $0 $0
Other Current Liabilities (interest free) $0 $0
Total Current Liabilities $0 $0
Long-term Liabilities $80,000

Total Liabilities $0 $80,000
Paid-in Capital $10,000 $7,000

Retained Earnings $214,321 $154,357
Earnings ($1,079) ($13,982)
Total Capital $223,242 $147,375
Total Capital and Liabilities $223,242 $227,375
Other Inputs
Page 3
Payment Days 30 30
Chart: Past Performance
140000
120000
100000
80000
60000
40000
20000
0
2018 2019 2020
3.0 Products and Services

Tomovils Mechanics sells, installs and repairs tires for consumer automobiles vehicles. Sales and
repairs currently take place within the store, but we hope to provide added services like mobilize
to vehicle point, which will especially benefit the owners with convenience.
4.0 Strategy and Implementation Summary

Tomovils Mechanics plans to implement its plan for expansion by using the funding we seek to
purchase tires at wholesale price, increasing available range, a vehicle that will allow for mobile
service and by purchasing winter tires that we do not currently have the funds to purchase. These
winter tires have been asked of us by loyal clients, and so we know that past customers, other
mechanic workshops, will greatly benefit from this expansion.
4.1 SWOT Analysis

A SWOT Analysis is a breakdown of the strengths, weakness, opportunities, and threats that
Tomovils Mechanics has had and will have in the future.
4.1.1 Strengths
Our strengths are longevity and the fairness of our pricing.
Page 4
4.1.2 Weaknesses
Economic factors are a pivotal weakness. As retailers, we depend upon the income of consumers.
4.1.3 Opportunities
With the $250,000 in funding sought, Tomovils Mechanics will have the opportunity to increase its
inventory (in both size and range), procure a service truck for mobile service, and hire more
employees.
4.1.4 Threats
The major threat to Tomovils Mechanics is an exaggerated form of our weakness, which is
economic downtown. If a dip in the economy is our weakness, then a depression is a threat, as it
would be to any other retailer.
4.2 Competitive Edge

Our competitive edge is in our locally established name. A future competitive edge will be in the
available size, range, and mobility of our service.
4.3 Sales Strategy

Our fair pricing and small-business demeanor appeal to customers. Because tires are purchased
out of necessity and not recreation, it is not difficult to close a deal with a customer, which makes
our job more about finding the right product for the right consumer.
4.3.1 Sales Forecast

The sales forecast shows the projected sales for both tires and tire services (i.e. repairs) over the
course of the next three years. Growth is gradual, which will allow for Tomovils Mechanics to
maintain a solid infrastructure while still expanding. The cost of those sales is also incorporated in
the sales forecast table.
Table: Sales Forecast
Sales Forecast
2022 2023 2024
Sales
Tires $143,246 $179,057 $193,997
Tire Services $55,720 $62,065 $70,000
Total Sales $198,966 $241,122 $263,997
Direct Cost of Sales 2022 2023 2024

Cost of Goods Sold $70,955 $85,947 $93,118
$0 $0 $0
Subtotal Direct Cost of Sales $70,955 $85,947 $93,118
Page 5
Chart: Sales Monthly
Chart: Sales by Year
Page 6
4.4 Milestones
The milestones for the next 3 years of Tomovils Mechanics will be promoting its part-time
employees to full-time status, purchasing a truck to mobilize our service, and acquiring large
quantity of winter tires.
Table: Milestones
Milestones
Milestone Start End Date Budget Manager Department

Date
Promote 8/2/2021 4/2/2022 undefined Zayra Personnel
PT
workers
to FT
Buy 8/2/2021 12/1/2022 $70,000 Zayra Operations
Service
Truck
Purchase 8/2/2021 2/1/2022 $130,000 Zayra Inventory
Specialty
Tires
Totals $200,000
5.0 Management Summary

Zayra owns and manages the company. She is not paid a specific salary but rather takes draws as
needed. The Company currently has one assistant manager, Zayra. There are currently 3 part-
time employees who work between 10 and 20 hours each week. We would like to hire two
additional employees to our team and promote part-time employees to full-time.
5.1 Personnel Plan

The Personnel table shows the projected payroll expenses and shifts in team size and
categorization over the next three years of business.
Table: Personnel
Personnel Plan
2022 2023 2024
Assistant Manager $23,040 $23,731 $24,917
Full-Time Employees $0 $67,584 $69,611
Part-Time Employees $22,272 $0 $0
Total People 4 6 6
Total Payroll $45,312 $91,315 $94,528
Page 7
Page 8
6.0 Financial Plan

This financial plan projects financials for Tomovils Mechanics over the course of the next three
years, incorporating $250,000 sought in investments. The plan shows how those investments will
positively affect cash flow and balances and will allow Tomovils Mechanics to expand our services,
both in the way of our inventory and in mobilizing our service. The plan shows that $11,088 is
required in monthly revenue in order to break even. The Profit and Loss table shows a steady
gross margin, significant spending on personnel and inventory in the second year, and a
substantial increase in net profit in the third year.
6.1Break-even Analysis
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $11,088
Assumptions:
Average Percent Variable 36%
Cost
Estimated Monthly Fixed Cost $7,134
Chart: Break-even Analysis

Break-even Analysis
$8,000
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
$0 $4,000 $8,000 $12,000 $16,000 $20,000

$2,000 $6,000 $10,000 $14,000 $18,000 $22,000
Page 9
6.2 Projected Profit and Loss

The profit and loss table shows the projected sales, expenses, and net profit for the following
three years. Gross margins are steady as sales increase. Net profit in the plans third year will
exceed both the first and second years. The expense of payroll is expected to increase significantly
between 2022 and 2023 due to new jobs being created.
Table: Profit and Loss
Pro Forma Profit and Loss

2022 2023 2024
Sales $198,966 $241,122 $263,997
Direct Cost of Sales $70,955 $85,947 $93,118
Other Costs of Sales $0 $0 $0
Total Cost of Sales $70,955 $85,947 $93,118
Gross Margin $128,011 $155,175 $170,879

Gross Margin % 64.34% 64.36% 64.73%
Expenses
Payroll $45,312 $91,315 $94,528
Marketing/Promotion $1,593 $1,750 $2,000
Depreciation $1,200 $2,000 $2,500
Car and Truck Expenses $1,200 $1,500 $2,000
Insurance (other than $3,000 $5,000 $5,000
health)
Interest - mortgage (paid to $4,800 $4,800 $4,800
banks, etc.)
Legal and Professional $3,000 $3,500 $3,500
Services
Office Expenses $360 $400 $450
Supplies $180 $250 $300
Utilities $21,000 $2,400 $2,700
Misc. $3,960 $4,100 $4,100
Total Operating Expenses $85,605 $117,015 $121,878
Profit Before Interest and $42,406 $38,160 $49,001

Taxes
EBITDA $43,606 $40,160 $51,501
Interest Expense $8,000 $8,000 $8,000
Taxes Incurred $10,322 $9,048 $12,300
Net Profit $24,084 $21,112 $28,701

Net Profit/Sales 12.10% 8.76% 10.87%
Page 10
Chart: Profit Monthly
Chart: Profit Yearly
Page 11
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Page 12
6.3 Projected Cash Flow

As is shown in the Cash Flow table, the second year of business will contains significant spending
on personnel and inventory, which will result in negative cash flow but NOT a negative cash
balance. The following year will show a positive cash balance, as the business will have acclimated
to its paradigm shift. At no point will there be a negative cash balance. Sales revenue will increase
substantially between the first and second years. $200,000 will be spent on the purchase of new
assets, primarily a service truck and winter tires for vehicles. The remaining $50,000 in funding
sought will be managed as a reserve fund for unforeseen expenses and possibly for personnel.
Table: Cash Flow

Pro Forma Cash Flow
2022 2023 2024
Cash Received
Cash from Operations

Cash Sales $198,966 $241,122 $263,997
Subtotal Cash from Operations $198,966 $241,122 $263,997
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 $448,966 $241,122 $263,997
Expenditures 2010 2011 2012
Expenditures from Operations

Cash Spending $45,312 $91,315 $94,528
Bill Payments $51,831 $171,164 $139,658
Subtotal Spent on Operations $97,143 $262,479 $234,186
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $0 $0 $0
Borrowing
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $200,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $297,143 $262,479 $234,186
Net Cash Flow $151,823 ($21,357) $29,811
Page 13
Cash Balance $154,823 $133,466 $163,277
Chart: Cash
Cash
$160,000
$140,000
$120,000
$100,000
Net Cash Flow
$80,000
Cash Balance
$60,000
$40,000
$20,000
$0
Feb
Jun
Sep
Jan
Aug
Dec
May
Nov
Mar
Apr
Oct
Jul
Page 14
6.4 Projected Balance Sheet

The Balance Sheet table shows a steady, sustainable increase in earnings and net worth over the
next three years. The $250,000 investment sought will contribute very significantly to rise in net
worth for Tomovils Mechanics.
Table: Balance Sheet
Pro Forma Balance Sheet

2022 2023 2024
Assets
Current Assets
Cash $155,065 $133,708 $163,519
Inventory $9,045 $57,311 $55,539
Other Current Assets $150,000 $150,000 $150,000
Total Current Assets $314,110 $341,019 $369,058
Long-term Assets
Long-term Assets $200,000 $200,000 $200,000
Accumulated Depreciation $1,200 $3,200 $5,700
Total Long-term Assets $198,800 $196,800 $194,300
Total Assets $512,910 $537,819 $563,358
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $10,584 $14,380 $11,219
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $10,584 $14,380 $11,219
Long-term Liabilities $80,000 $80,000 $80,000

Total Liabilities $90,584 $94,380 $91,219
Paid-in Capital $257,000 $257,000 $257,000

Retained Earnings $141,242 $165,326 $186,438
Earnings $24,084 $21,112 $28,701
Total Capital $422,326 $443,438 $472,139
Total Liabilities and Capital $512,910 $537,819 $563,358
Net Worth $422,326 $443,438 $472,139
Page 15
6.5 Business Ratios

The ratios table shows standard business ratios are they apply to the years 2022-2024. These
ratios are measured against an industry profile (far right of the table).
Table: Ratios
Ratio Analysis
2022 2023 2024 Industry
Profile
Sales Growth n.a. 21.19% 9.49% 0.37%
Percent of Total Assets

Inventory 1.76% 10.66% 9.86% 42.93%
Other Current Assets 29.26% 27.90% 26.64% 29.10%
Total Current Assets 61.22% 63.39% 65.50% 91.91%
Long-term Assets 38.78% 36.61% 34.50% 8.09%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 2.06% 2.68% 1.99% 41.37%

Long-term Liabilities 15.60% 14.88% 14.21% 38.05%
Total Liabilities 17.67% 17.56% 16.20% 79.43%
Net Worth 82.33% 82.44% 83.80% 20.57%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 64.34% 64.36% 64.73% 17.89%
Selling, General & 52.23% 55.60% 53.86% 6.65%
Administrative Expenses
Advertising Expenses 0.80% 0.73% 0.76% 0.40%
Profit Before Interest and 21.31% 15.83% 18.56% 2.30%
Taxes
Main Ratios
Current 29.66 23.70 32.87 2.07
Quick 28.80 19.71 27.92 1.04
Total Debt to Total Assets 17.67% 17.56% 16.20% 79.43%
Pre-tax Return on Net Worth 8.15% 6.81% 8.69% 70.37%
Pre-tax Return on Assets 6.71% 5.61% 7.28% 14.48%
Page 16
Additional Ratios 2022 2023 2024

Net Profit Margin 12.10% 8.76% 10.87% n.a
Return on Equity 5.71% 4.76% 6.08% n.a
Activity Ratios
Inventory Turnover 1.82 2.59 1.65 n.a
Accounts Payable Turnover 5.90 12.17 12.17 n.a
Payment Days 27 26 34 n.a
Total Asset Turnover 0.39 0.45 0.47 n.a
Debt Ratios
Debt to Net Worth 0.21 0.21 0.19 n.a
Current Liab. to Liab. 0.12 0.15 0.12 n.a
Liquidity Ratios
Net Working Capital $303,284 $326,396 $357,597 n.a
Interest Coverage 5.30 4.77 6.13 n.a
Additional Ratios
Assets to Sales 2.58 2.23 2.13 n.a
Current Debt/Total Assets 2% 3% 2% n.a
Acid Test 28.80 19.71 27.92 n.a
Sales/Net Worth 0.47 0.54 0.56 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 17
Appendix
Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Tires $9,000 $9,450 $9,922 $10,418 $10,939 $11,486 $12,060 $12,663 $13,296 $13,961 $14,659 $15,392
Tire $3,500 $3,675 $3,859 $4,052 $4,255 $4,468 $4,691 $4,926 $5,172 $5,431 $5,703 $5,988
Services
Total $12,500 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Sales
Direct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cost of
Sales
Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,921
Goods
Sold
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtota $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,921
l Direct
Cost of
Sales
Table: Personnel
Personnel
Plan
Assistant $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920
Manager
Full-Time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Employees
Part-Time $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856
Employees
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776
Page 1
Appendix
Table: Profit and Loss
Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oc Nov Dec
t
Sales $12,500 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,39 $20,362 $21,3
2 80
Direct Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 $6,333 $6,523 $6,719 $6,92
Sales 1
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Total Cost of $5,000 $5,150 $5,304 $5,463 $5,627 $5,796 $5,970 $6,149 \$6,333 $6,523 $6,719 $6,92
Sales 1
Gross Margin $7,500 $7,975 $8,477 $9,007 $9,567 $10,158 $10,781 $11,440 $12,135 $12,86 $13,643 $14,4
9 59
Gross Margin % 60.00% 60.76% 61.51% 62.25% 62.97% 63.67% 64.36% 65.04% 65.71% 66.36 67.00% 67.63
% %
Expenses
Payroll $3,776 $3,7 $3,776 $3,7 $3,776 $3,7 $3,776 $3,7 $3,776 $3,776 $3,776 $3,77
76 76 76 76 6
Marketing/Pro $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171
motion
Depreciation $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Car and Truck $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Expenses
Insurance 15% $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
(other than
health)
Interest - 15% $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
mortgage (paid
to banks, etc.)
Legal and 15% $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Professional
Services
Office Expenses 15% $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Supplies 15% $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Utilities 15% $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,7 $1,750 $1,750 $1,75
50 50 50 50 50 50 50 50 50 0
Misc. 15% $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330
Page 2
Appendix
Total Operating $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,1 $7,156 $7,164 $7,17
Expenses 01 06 11 17 23 29 35 42 49 2
Profit Before $399 $869 $1,366 $1,890 $2,444 $3,029 $3,646 $4,298 $4,986 $5,713 $6,47 $7,28
Interest and Taxes 9 7
EBITDA $499 $969 $1,466 $1,990 $2,544 $3,129 $3,746 $4,398 $5,086 $5,813 $6,57 $7,38
9 7
Interest Expense $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667
Taxes Incurred ($80) $61 $210 $367 $533 $709 $894 $1,089 $1,296 $1,514 $1,74 $1,98
4 6
Net Profit ($187) $142 $490 $856 $1,244 $1,654 $2,086 $2,542 $3,024 $3,532 $4,06 $4,63
9 4
Net Profit/Sales -1.50% 1.08% 3.55% 5.92% 8.19% 10.37% 12.45% 14.45% 16.37% 18.22% 19.98 21.68
% %
Page 3
Appendix
Table: Cash Flow

Pro Forma Cash
Flow
Cash
Received
Cash
from
Operatio
ns
Cash $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Sales 0
Subtotal $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $17,589 $18,468 $19,392 $20,362 $21,380
Cash 0
from
Operatio
ns
Additiona
l Cash
Received
Sales 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax, VAT,
HST/GST
Received
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Borrowin
g
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Liabilitie
s
(interest
-free)
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Liabilitie
s
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Page 4
Appendix
Assets
New $0 $0 $0 $0 $0 $0 $0 $250,000 $0 $0 $0 $0
Investme
nt
Received
Subtotal $12,50 $13,125 $13,781 $14,470 $15,194 $15,954 $16,751 $267,589 $18,468 $19,392 $20,362 $21,380
Cash 0
Received
Page 5
Appendix
Cash Flow Continued…
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures
from
Operations
Cash $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776 $3,776
Spending
Bill $127 $3,816 $3,963 $4,117 $4,280 $4,453 $4,635 $4,826 $5,029 $5,243 $5,468 $5,873
Payments
Subtotal $3,903 $7,592 $7,739 $7,893 $8,056 $8,229 $8,411 $8,602 $8,805 $9,019 $9,244 $9,649
Spent on
Operations
Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $0 $0 $0 $0 $0 $0 $0 $200,000 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $3,903 $7,592 $7,739 $7,893 $8,056 $8,229 $8,411 $208,602 $8,805 $9,019 $9,244 $9,649
Cash Spent
Page 6
Appendix
Net Cash $8,597 $5,533 $6,042 $6,577 $7,138 $7,725 $8,340 $58,987 $9,663 $10,373 $11,118 $11,731
Flow
Cash Balance $11,839 $17,372 $23,414 $29,991 $37,129 $44,854 $53,194 $112,181 $121,844 $132,217 $143,334 $155,065
Table: Balance Sheet

Pro Forma Balance
Sheet
Assets Starting Balances
Current
Assets
Cash $3,242 $11,839 $17,372 $23,414 $29,991 $37,129 $44,854 $53,194 $112,181 $121,844 $132,217 $143,334 $155,065
Inventory $75,000 $70,000 $64,850 $59,546 $54,083 $48,456 $42,660 $36,690 $30,541 $24,208 $17,685 $10,966 $9,045
Other $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Current
Assets
Total $228,242 $231,839 $232,222 $232,960 $234,074 $235,585 $237,514 $239,884 $292,722 $296,052 $299,902 $304,300 $314,110
Current
Assets
Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $200,000 $200,000 $200,000 $200,000 $200,000
Assets
Accumulated $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200
Depreciation
Total Long- $0 ($100) ($200) ($300) ($400) ($500) ($600) ($700) $199,200 $199,100 $199,000 $198,900 $198,800
term Assets
Total Assets $228,242 $231,739 $232,022 $232,660 $233,674 $235,085 $236,914 $239,184 $491,922 $495,152 $498,902 $503,200 $512,910
Page 7
Appendix
Balance Sheet Continued…
Liabilities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
and
Capital
Current
Liabilities
Accounts $0 $3,684 $3,825 $3,974 $4,132 $4,299 $4,474 $4,659 $4,855 $5,061 $5,279 $5,508 $10,584
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $0 $3,684 $3,825 $3,974 $4,132 $4,299 $4,474 $4,659 $4,855 $5,061 $5,279 $5,508 $10,584
Current
Liabilities
Long- $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
term
Liabilities
Total $80,000 $83,684 $83,825 $83,974 $84,132 $84,299 $84,474 $84,659 $84,855 $85,061 $85,279 $85,508 $90,584
Liabilities
Paid-in $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $257,000 $257,000 $257,000 $257,000 $257,000
Capital
Retained $155,224 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242 $141,242
Earnings
Earnings ($13,982) ($187) ($46) $444 $1,300 $2,544 $4,198 $6,283 $8,825 $11,849 $15,381 $19,450 $24,084
Total $148,242 $148,055 $148,196 $148,686 $149,542 $150,786 $152,440 $154,525 $407,067 $410,091 $413,623 $417,692 $422,326
Capital
Total $228,242 $231,739 $232,022 $232,660 $233,674 $235,085 $236,914 $239,184 $491,922 $495,152 $498,902 $503,200 $512,910
Liabilities
and
Capital
Net Worth $148,242 $148,055 $148,196 $148,686 $149,542 $150,786 $152,440 $154,525 $407,067 $410,091 $413,623 $417,692 $422,326
Page 8

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TOMOVILS MECHANICS- BUSINESS PLAN 2021

Upon request, this document is to be immediately returned to Tomovils Mechanics.

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

1.0 Executive Summary ............................................................................................................. 1

Table: Cash Flow ................................................................................................................... 13

1.0 Executive Summary

1.3 Keys to Success

The Keys to success for Tomovils Mechanics are:

2.0 Company Summary

2.1 Company Ownership

2.2 Company History

Table: Past Performance

Total Assets $223,242 $227,375

Long-term Liabilities $80,000

Paid-in Capital $10,000 $7,000

Total Capital and Liabilities $223,242 $227,375

Chart: Past Performance

3.0 Products and Services

4.0 Strategy and Implementation Summary

4.1 SWOT Analysis

4.2 Competitive Edge

4.3 Sales Strategy

4.3.1 Sales Forecast

Table: Sales Forecast

Direct Cost of Sales 2022 2023 2024

Chart: Sales by Year

Milestone Start End Date Budget Manager Department

5.0 Management Summary

5.1 Personnel Plan

Total Payroll $45,312 $91,315 $94,528

6.0 Financial Plan

Monthly Revenue Break-even $11,088

Chart: Break-even Analysis

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

6.2 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

Gross Margin $128,011 $155,175 $170,879

Total Operating Expenses $85,605 $117,015 $121,878

Profit Before Interest and $42,406 $38,160 $49,001

Net Profit $24,084 $21,112 $28,701

Chart: Profit Monthly

Chart: Profit Yearly

Chart: Gross Margin Yearly

6.3 Projected Cash Flow

Table: Cash Flow

Cash from Operations

Additional Cash Received

Expenditures 2010 2011 2012

Expenditures from Operations

Additional Cash Spent

Net Cash Flow $151,823 ($21,357) $29,811

6.4 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance Sheet

Liabilities and Capital 2010 2011 2012

Long-term Liabilities $80,000 $80,000 $80,000

Paid-in Capital $257,000 $257,000 $257,000

Net Worth $422,326 $443,438 $472,139

6.5 Business Ratios

Percent of Total Assets

Current Liabilities 2.06% 2.68% 1.99% 41.37%

Additional Ratios 2022 2023 2024