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The College Cafe Business Plan.
The College Cafe Business Plan.
The College Cafe is a student-to-student Internet marketplace providing college students with
the opportunity to buy, sell and trade college textbooks, participate in auctions, post classified
ads, provide teacher evaluations, and buy products for college. The College Cafe’s target
market consists of over 15.8 million college students who spend $200 billion annually. The
College Cafe was founded in July and is presently in its start-up stage.
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1.1 Solution
The College Cafe will enable students to buy, sell, and trade used textbooks directly to other
students, by-passing the university bookstores. By selling textbooks to other students, the
seller can receive more money than the bookstore will pay and the buyer can pay less than the
bookstore charges. In addition to textbooks, students will be able to sell class notes, old tests,
computers, dorm accessories, used CDs, tutoring services or anything students wish to sell via
an online student-to-student marketplace. In addition, the College Cafe will offer other services
such as classifieds, teacher evaluations, weblogs (bloggers), specialized content and retail.
The College Cafe will establish itself as the leading online student-to-student marketplace
by combining extensive market-specific expertise with Internet technologies to generate
revenue while creating a win-win solution for students. The College Cafe will achieve market
dominance by utilizing extensive domain experience, a local grass roots marketing strategy, an
exceptional management team, superior software, and the formation of strategic alliances,
memberships and partnerships with companies within the college market.
1.2 Market
The U.S. college student market is a growing yet underserved niche market. The
U.S. Department of Education expects the U.S. college student market to grow from 15.8 million
students to 17.2 million in the next five years. According to Harris Interactive college students
are expected to spend over $200 billion this year.
1.3 Opportunity
College students are eager to find ways to get “quick cash” at the end of every semester. One
method college students use is to sell their old textbooks at the end of every semester,
however the re-sell market is controlled by the local university bookstore. Because university
bookstores monopolize the market, students receive only a fraction of the value paid for the
book, typically 75% or less of the purchase prices. The bookstores then re-sell the books back
to other students, receiving over 125% profit. The current situation creates a lose-lose situation
for students and a win-win situation for bookstores. Students are looking for convenient,
money saving ways to purchase textbooks and to receive more value when re-selling textbooks
at the end of each semester.
According to the opportunities and requirements for The College Cafe described in this
business plan, we have determined the following financial projections:
The College Cafe will require an initial seed investment as well as later rounds of investment.
The initial seed capital will be used for marketing and customer acquisition, software and
website development.
1.5 Objectives
Company Summary
The College Cafe was founded in July and is presently in its start-up stage. The College Cafe
website has been in operation with limited functionality since August of last year. The College
Cafe is currently being test marketed at Georgia State University.
www.thecollegeCafe .com
www.thecollegeCafe .net
The College Cafe’s data center is hosted and maintained by Atl-Connect Internet Services. Atl-
Connect is located in Atlanta, Georgia.
2.2 Mission
The College Cafe’s mission is to provide college students a valuable and unique source for
products, services and information. In order to achieve our mission, The College Cafe commits
to the following philosophies:
2.3 Ownership
The College Cafe is a Limited Liability Company and is solely owned by its founder, Gerald
Owens.
Our key to success will lie in our ability to execute our business model. In order to achieve
success, we need to focus on the following areas to establish The College Cafe as a successful
and profitable enterprise. They are:
Recruit an exceptional management and marketing team with extensive domain
experience in the college market.
Create and maintain a “Grass Roots” marketing campaign.
Offer innovative and unique products and services.
Form strategic alliances and partnerships with companies suppling products to the
college market.
The strength of The College Cafe’s management team stems from the combined expertise in
both management and technical areas. The College Cafe recognizes that additional staff is
required to properly support marketing, sales, research, and support functions. Currently, The
College Cafe is supported by three people with experience in e-commerce strategy, website
architecture and design and graphic design. Additional employees may be required in the
areas of senior level management, Web development, marketing, sales, human
resources/recruiting, administration, customer support and other critical operational positions.
The College Cafe will utilize current college students to fill positions in the areas of regional
campus marketing, local advertisement sales, administration, customer support other non-
critical operational positions. These positions will be full-time, part-time and intern positions
depending on the local market. Using current college students will enable The College Cafe to
receive inexpensive local employment and valuable market feedback from The College Cafe’s
target market while also providing real world work experience to college students.
The College Cafe will utilize consultants and contractors during website enhancements and
development efforts.
Board of Directors
At this time The College Cafe is seeking individuals for a Board of Directors. These individuals
will include highly qualified business and industry professionals/experts along with members of
the investment team. These individuals will assist our management team in making
appropriate decisions, forming strategic alliances and taking the most effective action to be the
industry leader.
Our management team consists of three dedicated employees and two technical advisors.
Their backgrounds consist of more than 30 years of experience in e-commerce, marketing and
the Internet technology. In addition to their professional experience, the management team
has over 30 years of college domain experience.
Our start-up costs assumptions are shown in the following table and chart, and include Web
hosting, software, development and marketing expenses. The start-up costs were financed by
direct owner investment.
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Start-up
Requirements
Start-up Expenses
Utilitizes $100
Start-up Assets
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Product Summary
The College Cafe will offer college students a unique blend of products, services, and content
that is not offered by any single company on the Internet. The College Cafe will aggregate
participants, products, services and content to create a student-to-student marketplace and
retail website targeting 15.8 million college students. The following describe The College Cafe’s
revenue models:
The College Cafe will offer functionality to allow students to buy, sell and trade their used
textbooks with other students. Specifically, the Textbook Exchange functionality allows
students to post their textbooks online for sale or trade, upload images, and indicate the
condition of the book. Students looking for used textbooks will be able to search for used
textbooks for sale or trade in their local area or nationwide. A fee will be charge for posting
textbooks. The fee may vary based on the asking price of the textbook. Sample textbook
categories include:
Accounting
Business
Computer Science
Engineering
Marketing
History
Law
Physics
Political Science
3.2 Auctions
The College Cafe will offer a powerful auction package. The Auction functionality will have
many features such as Standard, Reverse, Multi Item, Dutch and Blind auctions; Flash Buy and
Proxy Bidding. A fee will be charged for posting items to be auctioned. The posting fee
structure will be similar to eBay’s. Sample auctions categories include:
Textbooks
Class Notes
Old Tests
Used CDs & DVDs
Computer Equipment
Tickets
Electronics
Games
Dorm Furnishing
3.3 Classifieds
The College Cafe will offer fee based, student targeted, classifieds ads. Here many features
such as image upload, Web links and nested categories will be offered. A fee will be charged for
posting a classified. The amount charged will be based on the length of time the classified will
be posted. Sample classified categories include:
Textbooks
Class Notes
Tutors
Room Wanted
For Rent
For Sale
Tickets
Rides
Help Wanted
For Hire
3.4 Retail
The College Cafe will sell products targeted to college students. Margins will range from 10% to
50% depending on the product. Sample product categories include:
Textbooks
CDs & DVDs
Computer Equipment
Electronics
Games
Appliances
Dorm Furnishings
University Merchandise
Clothes
General Merchandise
The College Cafe will enable students to post and review teacher evaluations. The teacher
evaluation functionality will be a value added service encouraging students to visit the site each
semester. Revenue for teacher evaluations will be generated from the sale of banner ad
space located within the teacher evaluation pages. Banner ad sales will be targeted toward
local businesses on or around campus. The fee for banner ad space will be determined by the
length of posting, number of users for teacher evaluations and demand.
3.6 Bloggers
The College Cafe will offer Weblogs (Bloggers) services with topics tailored toward students.
Weblog functionality will be a value added service to encourage students to return to the site.
Revenue for the Weblog will be generated from the sale of banner ad space located within the
Weblog pages. Depending on the Weblog topic, banner ad sales will be targeted toward either
local businesses in or around campus or national companies. The fees for banner ad space will
be determined by the length of posting, number of users for the Weblog and demand. Weblog
topics will include:
College Sports
Politics
Entertainment
Technology
News
Overall, we conclude that our current products, services and banner ad strategy will ensure a
strong market presence and continued revenue growth. However as part of our growth model,
we will regularly examine new services, products, categories and content to support demand.
Brick & Mortar Locations – The College Cafe will evaluate opening retail outlets in proximity to
college campuses to support and complement the online presences. Franchise rights may also
be available.
Employment Opportunities – The College Cafe will offer a local and national job posting
service so that students may search for new opportunities within the local community and
nationwide. A fee will be charged for posting jobs.
Apartment Finder – The College Cafe will offer a local and national apartment finder service so
that students may search for apartments within the local community and nationwide. A fee will
be charged for postings.
Club & Organization Finder – The College Cafe will offer a local and national club and
organization finder service so that students may search for clubs and organization within the
local community and nationwide. A fee will be charged for posting.
Targeted Content – The College Cafe will offer content. Sample topics will include:
News
Wine & Dine
Weather
What’s Happening
Best Of
The U.S. college student market is a growing yet under-served niche market. The
U.S. Department of Education expects the U.S. college student market to grow from 15.8 million
students in 2003 to 17.2 million in 2008. According to a Harris Interactive study conducted in
the spring of 2002, college students spend an estimated $200 billion dollars per year. As of
2003, it is estimated that college students were spending $1.4 billion online.
John Geraci, Vice President of Youth Research at Harris Interactive concludes: “The college
consumer is easily overlooked since most information sources that marketers rely on for
tracking consumer behavior tend to under-represent college students. However, it is a
consumer group that marketers should recognize as offering substantial opportunity.
Connecting with consumers during the college years can pay great dividends, both now and
well into the future.”
According to the findings from the 360 Youth/Harris Interactive College Explorer Study
estimated the U.S. college market will spend nearly $200 billion dollars a year.
University Bookstores
The National Association of College Stores estimated U.S./Canadian university bookstore sales
to be $11.12 billion for the 2001-2002 academic year and online textbooks sales to be an
estimated $1.8 billion. University bookstores sell a variety of items, ranging from textbooks to
toothpaste. The following table display the estimate of average product sales in the entire
university bookstore market, from largest to smallest segments[1].
New texts
54.71% $6.1 billion
The follow statistics indicate that college students are receptive to the Internet channel for the
products, services and content offered by the College Cafe. The following U.S. college student
statistics were based on a report by the Student Monitor and the Harris Interactive Explorer
Study.
According to the Harris Interactive Study, college students spend an average of $287 per month
on discretionary items (which is defined as spending on anything other than tuition,
room/board, rent/mortgage, books/school fees).
The National Association of College Stores estimates U.S. college store sales to be $11.12 billion
for the 2001-2002 academic year. College stores sell a variety of items, ranging from textbooks
to toothpaste.
SOURCE: U.S. Department of Commerce, Bureau of the Census, Current Population Reports,
Series P-25, Nos. 1092, 1095, and “National Population Estimates,” December 2001, and “Annual
Projections of the Total Resident Population: 1999 to 2100,” January 2000
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Market Analysis
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business plan.
The potential market for The College Cafe consists of 15.8 million college students enrolled in
over 4,180 institutions. For the Phase 1 launch of The College Cafe, we plan to focus our
marketing effort on a subset market located in the Southeastern U.S. We plan to expand to
new markets with a phased approach focusing on a new region of the country each semester.
The Phase 1 target market segment will consist of the following universities:
University/College
Enrollment
Competitors of The College Cafe includes traditional university bookstores, online textbook
retailers, textbook exchange sites, textbook price comparison sites, online auction sites and
online content specific sites targeting the college student market.
The major objective and strategy of university bookstores is to maintain competitive pricing and
customer service. The strengths of the traditional university bookstores are current customer
relationships and location to the University. The major weaknesses of university bookstores
are the limited product selection and lack of value added services that can be offered online.
The National Association of College Stores estimates U.S./Canadian university bookstore sales
to be $11.12 billion for the 2001-2002 academic year.
There are approximately 4,840 college bookstores serving 4,182 institutions in the United States
and 170 college stores in Canada. Larger universities will often have several stores to serve
students, smaller schools in a local area may be served by a single store, and several schools in
an urban community may share multiple retail outlets. While many college stores share a
common mission, they vary widely in size, location, ownership, and customer base.
The majority of stores are owned or operated by the university they serve. On-campus stores
are mostly institutional, but they may also be contract managed, cooperatives, or student
associations. Off-campus stores are typically privately owned.
Sales volume in college stores is determined by many factors, but the major influence on sales
seems most closely tied to the size of the institution served. According to the NACS College
Store Industry Financial Report 2003, average sales per college store were $6,320,556 while the
median was $3,303,062. The majority of college stores have less than $1 million in sales each
year.
According to the NACS College Store Industry Financial Report 2003, college stores returned a
median net income of 7.3% of net sales to their institutions.
$1 to $3 million 27.5 %
$3 to $7 million 9.8%
The major objective and strategy of online competitors is to maintain brand awareness, offer
value added services, product selection/availability, order fulfillment and customer service. The
strengths of existing online bookstores and retail sites are current customer relationships and
brand awareness. The major weaknesses of online competitors is barriers to entry, concern
about security & fraud, shipping charges, on-time fulfillment and returns processing.
Based on the 2003 College Store Industry Financial Report, total online sales at university
bookstores for 2001-2002 are estimated to be $150 million or 1.41% of total college store sales.
With a “click and mortar” strategy, the university bookstore can offer the convenience of web
ordering, paired with:
Ease of returns
The ability to pick up items for immediate use
One-stop shopping
Accurate information on what textbooks students need for their courses
The trust and security of buying from a well-known source with an on-campus location
The following table lists some of the major independent online retailers not associated with a
university bookstore:
Collegebooksdirect.co
Buys and sells new and used textbooks
m
Marketing Strategy
The College Cafe’s customers will be the 15.8 million college students in the United States.
This segment is a niche market that has no single business entity accounting for any significant
percentage of total aggregated college student purchases.
The main business model for The College Cafe relies on college students providing textbooks,
auctions, classifieds and teacher evaluations available on the website. Therefore, our focus will
be on the marketing strategy to increase student traffic and usage. In turn, visitor volume and
transactions will maintain the inventory of products and services offered.
The College Cafe recognizes the key to success as an extensive promotion strategy to attract
users. Once additional funding is secured the advertising and promotion plan will be
implemented.
The College Cafe is looking to form relationships with major companies in the college student
market. Companies that we will approach included university merchandise manufacturers or
resellers, specialized content suppliers, new and used textbook wholesalers and local
businesses.
The College Cafe’s overall advertising and promotional objectives are to:
The College Cafe will attract customers by using a mixture of traditional and online advertising
strategies to create a grassroots marketing campaign.
Since the majority of The College Cafe’s customer acquisition will result from direct promotion
local to universities, The College Cafe will recruit current college students to fill positions in the
areas of campus marketing, local advertisement sales and implementation of a “grassroots”
marketing campaign.
The following is a list of advertising and promotional channels The College Cafe will utilize:
Sourcing
The main business model for The College Cafe relies on college students providing the
textbooks, auctions, classifieds and teacher evaluations that are posted on the website.
Therefore, our focus relies heavily on the marketing strategy that will increase traffic and usage
and, in turn, maintain our inventory of products and services.
For the retail business component we will establish relationships with manufacturers or
distributors that offer drop-shipments direct to the customer. This will allow The College Cafe
to keep expenses associated with inventory and distribution to a minimum.
We will be contracting students as subject matter experts to provide the content in the
weblogs. The use of students as weblog content experts will help keep costs to a minium yet
still providing interesting and relevant content.
For content and other value added service we will establish relationships with 3rd party
vendors. This will enable The College Cafe to offer a wide variety of products and services
online yet allow The College Cafe to focus on the key business elements; textbooks, auctions,
classifieds and teacher evaluations.
The website is designed with the needs of the college student as the focus. The College Cafe is
built using Microsoft technologies which will provide the flexibility to easily expand products
and service offerings in the future. The College Cafe will initially host the website with an
external web-hosting vendor thus reducing initial start-up cost. At a later date, The College Cafe
may elect to bring hosting in-house for better support and maintenance.
The Textbook Exchange, Auction, Classified, and User Administration software was purchased
from Xcent Software, Inc and modified to support The College Cafe’s business needs. The rights
to the source code of the Xcent’s software were included in the purchase price of the software.
This will enable our programmers to customize the software to support The College Cafe’s
growing business needs.
The College Cafe website and databases are hosted by Atl-Connect Internet Services which
guarantees 99.99% uptime. In addition to Web hosting, Atl-Connects provides site monitoring
and statistical performance metrics that include uptime, page views, unique users, banner
impressions, search keywords stats and link stats from other sites.
Milestones
The accompanying table lists important milestones with dates and managers in charge. The
milestone schedule also indicates our initial beta launch of the website at Georgia State
University.
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Milestones
Totals $0
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business plan.
Financial Plan
The following are the summarized points from The College Cafe’s financial plan. All charts and
tables supporting these results are included in the appendix at the end of the business plan:
The College Cafe will generate assertive revenues by the end of year one.
The College Cafe will start reporting sustained profits during the 9th month of the 1st
year.
Sales and profits by year three will top 1.5x that of year one.
The College Cafe will require an initial investment in capital to finance the marketing
campaign and launch strategy.
The College Cafe will require additional investment to fund additional Web
development, sales and marketing efforts and general operating expenses.
The College Cafe will provide a complete student-to-student marketplace. Investment contacts
have already been approached and their expressions of satisfaction and encouragement are
numerous. We intend to continue our advances with more unique and effective business
solutions for the the college market. Based on the attached financial projections, we believe
that this venture represents a sound business investment.
The financial projections are based on the following assumptions and facts for the industry as
outlined in our market analysis:
General Assumptions
Plan Month 1 2 3
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business plan.
In order to implement The College Cafe Phase 1 marketing campaign and launch strategy, we
are seeking an initial seed investment of $150,000. An additional investment of $1 million will
be required for operational expenses, continuing marketing campaigns, additional website
enhancements, maintenance and support as necessary to establish and maintain The College
Cafe as the leading online student-to-student market place.
As detailed in the Cash Balance chart for one year, The College Cafe will be able to begin and
sustain its operations with the above mentioned investments. We are confident the
opportunities in the market place are so compelling that with year one cash flows, The College
Cafe will grow and take advantage of the growth in the college market.
Start-up Funding
Assets
Liabilities
Long-term Liabilities $0
Capital
Planned Investment
Initial funding proceeds will be used primarily for marketing, additional website development
and maintenance. All the equipment needed will be leased or purchased, and included in the
operational expenses. The rest of the funds will be used as working capital to maintain the
operations until revenues generated by The College Cafe will be at the point where we can
sustain operational expenses.
The financial projections indicate that The College Cafe will have generated enough cash in the
next five years to permit the exit of the outside investors if so desired. It is the founders’ choice
to continue with the company’s profitable operations until The College Cafe is presented with a
viable offer for acquisition or the opportunity of an IPO is contemplated.
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A break-even analysis table has been completed on the basis of average costs/prices.
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Break-even Analysis
Assumptions:
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Sales Forecast
Sales
The table below shows our forecasts for personnel. Annual figures for three years are shown.
Monthly estimates for the first year are included in the appendix.
Personnel Plan
Total People 22 0 0
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The table and charts below present our forecasted for profit and loss. Annual figures for three
years are shown. Monthly estimates for the first year are included in the appendix.
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Expenses
Depreciation $0 $0 $0
The table and chart below show our cash flow predictions. Annual figures for three years are
shown. Monthly estimates for the first year are included in the appendix.
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Cash Received
Dividends $0 $0 $0
The table below details our projected balance sheet. Annual figures for three years are shown.
Monthly estimates for the first year are included in the appendix.
Assets
Current Assets
Long-term Assets
Accumulated Depreciation $0 $0 $0
Current Liabilities
Long-term Liabilities $0 $0 $0
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5942.9904, College book stores, are shown for
comparison.
Ratio Analysis
Percent of Sales
Main Ratios
Activity Ratios
Debt Ratios
Liquidity Ratios
Additional Ratios
Assets to Sales 0.34 0.41 0.59 n.a
Appendix
Sales Forecast
Sales
Textbook 0% $1,000 $25,00 $35,00 $50,000 $35,000 $50,000 $60,000 $75,000 $80,000 $9
Exchange 0 0
Classifieds 0% $1,000 $20,00 $25,00 $40,000 $30,000 $45,000 $50,000 $60,000 $75,000 $7
0 0
Auctions 0% $1,000 $10,00 $20,00 $25,000 $20,000 $25,000 $30,000 $30,000 $25,000 $3
0 0
Retail 0% $1,000 $2,500 $5,000 $10,000 $10,000 $12,500 $15,000 $20,000 $20,000 $2
Advertisemen 0% $1,000 $2,500 $5,000 $10,000 $15,000 $20,000 $25,000 $25,000 $30,000 $4
t
Total Sales $5,000 $60,00 $90,00 $135,000 $110,00 $152,50 $180,000 $210,00 $230,00 $2
0 0 0 0 0 0 0
Direct Cost Month Month Month Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 M
of Sales 1 2 3
Textbook $1,000 $5,000 $10,00 $15,000 $20,000 $30,000 $40,000 $45,000 $40,000 $5
Exchange 0
Classifieds $1,000 $2,000 $5,000 $10,000 $15,000 $20,000 $25,000 $27,000 $30,000 $3
Auction $1,000 $2,500 $5,000 $7,500 $10,000 $15,000 $17,500 $20,000 $20,000 $2
Retail $1,000 $1,500 $5,000 $10,000 $12,000 $15,000 $20,000 $22,000 $25,000 $2
Advertisemen $1,000 $2,500 $5,000 $5,000 $10,000 $10,000 $15,000 $20,000 $20,000 $2
t
Subtotal $5,000 $13,50 $30,00 $47,500 $67,000 $90,000 $117,500 $134,00 $135,00 $1
Direct Cost of 0 0 0 0 0
Sales
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Personnel Plan
Gerald 0 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,50
Owens %
Kelley 0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,00
Mitchell %
Andrea 0 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,750 $4,75
Powers %
College 0 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,00 $19,00 $19,00 $19,00 $19,0
Reps (1 % 0 0 0 0 0
at each
College
for
phase 1)
Students 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interns %
Total 22 22 22 22 22 22 22 22 22 22 22
People
Total $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,25 $34,25 $34,25 $34,25 $34,2
Payroll 0 0 0 0 0
General Assumptions
Plan 1 2 3 4 5 6 7 8 9 10 11
Month
Current 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Interest
Rate
Long- 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
term
Interest
Rate
Tax 27.00% 27.00 27.00 27.00 27.00 27.00 27.00 27.00% 27.00% 27.00% 27.00% 27.00
Rate % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0
Sales $5,000 $60,000 $90,000 $135,000 $110,000 $152,500 $180,000 $210,000 $230,00
Direct Cost of $5,000 $13,500 $30,000 $47,500 $67,000 $90,000 $117,500 $134,000 $135,00
Sales
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0
Goods
Total Cost of $5,000 $13,500 $30,000 $47,500 $67,000 $90,000 $117,500 $134,000 $135,00
Sales
Gross Margin $0 $46,500 $60,000 $87,500 $43,000 $62,500 $62,500 $76,000 $95,000
Gross Margin 0.00% 77.50% 66.67% 64.81% 39.09% 40.98% 34.72% 36.19% 41.30%
%
Expenses
Payroll $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250
Sales and $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing and
Other
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0
Web Hosting $60 $60 $60 $60 $60 $60 $60 $60 $60
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100
Website $25,000 $10,000 $10,000 $10,000 $25,000 $25,000 $25,000 $25,000 $25,000
Enhancement
Projects
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988 $4,988
Other General $100 $100 $100 $500 $500 $500 $500 $500 $500
and
Administrativ
e Expenses
Total $64,598 $49,598 $49,598 $49,998 $64,998 $64,998 $64,998 $64,998 $64,998
Operating
Expenses
Profit Before ($64,598 ($3,098 $10,403 $37,503 ($21,998 ($2,498) ($2,498) $11,003 $30,003
Interest and ) ) )
Taxes
EBITDA ($64,598 ($3,098 $10,403 $37,503 ($21,998 ($2,498) ($2,498) $11,003 $30,003
) ) )
Interest $35 $33 $31 $29 $26 $24 $22 $20 $17
Expense
Taxes ($17,451 ($845) $2,800 $10,118 ($5,946) ($681) ($680) $2,965 $8,096
Incurred )
Net Profit ($47,182 ($2,285 $7,571 $27,356 ($16,077 ($1,841) ($1,839) $8,018 $21,889
) ) )
Cash
Received
Cash from
Operations
Cash Sales $5,000 $60,000 $90,000 $135,00 $110,00 $152,50 $180,00 $210,00 $230,0
0 0 0 0 0 0
Subtotal Cash $5,000 $60,000 $90,000 $135,00 $110,00 $152,50 $180,00 $210,00 $230,0
from 0 0 0 0 0 0
Operations
Additional
Cash
Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)
New Long- $0 $0 $0 $0 $0 $0 $0 $0 $0
term
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Subtotal Cash $130,00 $85,000 $90,000 $135,00 $110,00 $152,50 $180,00 $210,00 $230,0
Received 0 0 0 0 0 0 0
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Mont
Expenditures
from
Operations
Cash $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,250 $34,25
Spending
Bill Payments $598 $18,269 $28,707 $49,019 $74,008 $92,769 $121,00 $148,26 $167,9
7 0 7
Subtotal $34,848 $52,519 $62,957 $83,269 $108,25 $127,01 $155,25 $182,51 $202,1
Spent on 8 9 7 0 7
Operations
Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $300 $300 $300 $300 $300 $300 $300 $300 $300
Repayment of
Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current
Assets
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $35,148 $52,819 $63,257 $83,569 $108,55 $127,31 $155,55 $182,81 $202,4
Spent 8 9 7 0 7
Net Cash $94,852 $32,181 $26,743 $51,431 $1,442 $25,181 $24,443 $27,190 $27,51
Flow
Cash Balance $97,167 $129,34 $156,09 $207,52 $208,96 $234,14 $258,58 $285,77 $313,2
9 2 3 4 5 8 7 0
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Assets Starting
Balances
Current
Assets
Cash $2,315 $97,167 $129,349 $156,092 $207,523 $208,964 $234,145 $258,588 $285,777 $3
Other $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5
Current
Assets
Total $7,315 $102,167 $134,349 $161,092 $212,523 $213,964 $239,145 $263,588 $290,777 $3
Current
Assets
Long-term
Assets
Long-term $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $1
Assets
Accumulate $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
d
Depreciation
Total Long- $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $1
term Assets
Total Assets $157,315 $252,167 $284,349 $311,092 $362,523 $363,964 $389,145 $413,588 $440,777 $4
Current
Liabilities
Current $5,000 $4,700 $4,400 $4,100 $3,800 $3,500 $3,200 $2,900 $2,600 $2
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $5,000 $22,034 $31,501 $50,673 $74,748 $92,266 $119,288 $145,569 $164,741 $1
Current
Liabilities
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $5,000 $22,034 $31,501 $50,673 $74,748 $92,266 $119,288 $145,569 $164,741 $1
Liabilities
Paid-in $210,000 $335,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $3
Capital
Retained ($57,685 ($57,685 ($57,685 ($57,685 ($57,685 ($57,685 ($57,685 ($57,685 ($57,685 ($5
Earnings ) ) ) ) ) ) ) ) ) )
Earnings $0 ($47,182 ($49,467 ($41,896 ($14,540 ($30,617 ($32,458 ($34,297 ($26,279 ($4
) ) ) ) ) ) ) )
Total $152,315 $230,133 $252,848 $260,419 $287,775 $271,698 $269,857 $268,018 $276,036 $2
Capital
Total $157,315 $252,167 $284,349 $311,092 $362,523 $363,964 $389,145 $413,588 $440,777 $4
Liabilities
and Capital