BUSINESS PLAN

ARCHITECT BUSINESS
[YOUR NAME]
[YOUR TITLE]

Phone: [YOUR PHONE NUMBER]

Email: [YOUREMAIL@YOURCOMPANY.COM]
[YOUR WEBSITE ADDRESS]

[MONTH] [YEAR] // Confidential Information

 Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written permission
of [YOUR 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 [YOUR COMPANY NAME]
Upon request, this document is to be immediately returned to [YOUR COMPANY NAME]
 
___________________
Signature
___________________
Name (typed or printed)
 
___________________
Date
 
 
This is a business plan. It does not imply an offering of securities.

[MONTH] [YEAR] // Confidential Information

 Table of Contents

1.0 Executive Summary 1

Chart: Highlights 2
1.1 Objectives 3
1.2 Mission 3
1.3 Keys to Success 3
2.0 Company Summary 4
2.1 Company Ownership 5
2.2 Company History 5
Table: Past Performance 6
Chart: Past Performance 7
3.0 Services 8
4.0 Market Analysis Summary 10
4.1 Market Segmentation 11
Table: Market Analysis 11
Chart: Market Analysis (Pie) 12
4.2 Target Market Segment Strategy 12
4.3 Service Business Analysis 12
4.3.1 Competition and Buying Patterns 13
5.0 Web Plan Summary 15
5.1 Website Marketing Strategy 15
5.2 Development Requirements 15
6.0 Strategy and Implementation Summary 16
6.1 SWOT Analysis 16
6.1.1 Strengths 17
6.1.2 Weaknesses 17
6.1.3 Opportunities 17
6.1.4 Threats 17
6.2 Competitive Edge 18
6.3 Marketing Strategy 18
6.4 Sales Strategy 18
6.4.1 Sales Forecast 19
Table: Sales Forecast 20
Chart: Sales Monthly 20
Chart: Sales by Year 21
6.5 Milestones 22
Table: Milestones 22
7.0 Management Summary 23
7.1 Personnel Plan 23
Table: Personnel 23
8.0 Financial Plan 23
8.1 Important Assumptions 24
8.2 Break-even Analysis 24
Table: Break-even Analysis 24
Chart: Break-even Analysis 25
8.3 Projected Profit and Loss 26
Table: Profit and Loss 26
Chart: Profit Monthly 28
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 Table of Contents

Chart: Profit Yearly 28

Chart: Gross Margin Monthly 29
Chart: Gross Margin Yearly 29
8.4 Projected Cash Flow 30
Table: Cash Flow 30
Chart: Cash 31
8.5 Projected Balance Sheet 32
Table: Balance Sheet 32
8.6 Business Ratios 33
Table: Ratios 33
Table: Sales Forecast 1
Table: Personnel 2
Table: Profit and Loss 3
Table: Cash Flow 4
Table: Balance Sheet 5

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 [YOUR COMPANY NAME] 2012

1.0 Executive Summary

[YOUR COMPANY NAME] Inc. ([YOUR COMPANY NAME]) is the expansion of [COMPANY NAME], a
professional architectural corporation. [YOUR COMPANY NAME] shall be located in the office of [COMPANY
NAME] in [YOUR CITY]. [YOUR COMPANY NAME] shall expand the services to include environmental and
sustainable design and applications for the private and public residential market. These expanded services
shall include project evaluation, recommendation and design of existing projects for sustainable rehabilitation
and new projects. In addition, [YOUR COMPANY NAME] shall purchase inexpensive properties in
established neighborhoods or "in the path of growth" for sustainable rehabilitation for marketing and
educational purposes and profit.

The goals for the expansion of [COMPANY NAME] creating [YOUR COMPANY NAME] are:
• Expand [COMPANY NAME] and the public's knowledge and awareness of environmental and sustainable
architecture.
• Become "the source" for environmental services.
• Create a profit platform in the residential market to create projects which shall:
• Create manufacturing, service and construction jobs.
• Create awareness in the public of the "reduction of environmental impact" the construction industry could
have now and in the future with creative and sustainable construction design, methods and materials.
• Create a marketing and profit path to expand and grow [COMPANY NAME], attracting the brightest
employees.
Keys to the success of this plan have already been developed over the past 24 years of service by [YOUR
NAME] A.I.A.
• Quality and professional service respected by the construction industry.
• Experience in the construction industry not only as an Architect but as a practitioner of Landscape and
Interior Design and is a Licensed Contractor.
• A noteworthy recipient of awards and publications, resulting in name recognition and a leader in the local
community.
• An enviable list of clients, consultants, suppliers, contractors and real estate agents developed over the past
24 years who promote and support [YOUR NAME] 's services.
• 24 years of financial responsibility both in business and in understanding project financing allowing [YOUR
COMPANY NAME] to grow and thrive over the years and his projects to be built.
• The support and dedication of a core staff who have faithfully completed his "vision.”
 These key qualities shall be used to expand [YOUR COMPANY NAME] to including environmental and
sustainability services by creating the division [YOUR COMPANY NAME] Inc. The funding shall provide the
opportunity for [YOUR COMPANY NAME] Architecture to provide a positive difference for our clientele and
the community by providing consulting and project development.
For our clientele:  A direct affect shall be to allow us to provide effective consulting that can be used to make
their personal and business environments more efficient and sustainable. The goal of the consulting efforts
shall be to enhance the client's lives, reduce their costs and enhance their environment.
For the Community:
• Per our consulting enhance the local environment
• Provide projects that are affordable and become the goal for the local construction industry
• Provide increases and stable quality employment for [YOUR COMPANY NAME] and the local construction
industry from laborers, local professionals, trades, suppliers and manufacturers, all while improving the
environment.
 

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Chart: Highlights
Highlights
$2,000,000

$1,800,000

$1,600,000

$1,400,000
Sales
$1,200,000

$1,000,000 Gross Margin

$800,000 Net Profit

$600,000

$400,000

$200,000

$0
2010 2011 2012

1.1 Objectives
[YOUR COMPANY NAME] Architect's has the following objectives.
1. Expand [COMPANY NAME] with [COMPANY NAME] providing a depth of comprehensive services for the
local market, causing [YOUR COMPANY NAME] to grow and prosper with a more selective and greater share
of the local design and construction market.
2. Use and promote existing and new products, systems and technologies in our projects promoting
acceptance and growth of the emerging "green" industry.
3. Provide jobs in the local community - from laborers, trades and suppliers and manufacturers.  Also, this
shall lead to increased governmental fees and revenues.
4. Provide an avenue to apply and test products, to increase our knowledge, and expose and promote the
new "Green" industry to Main Street and mainstream the green technology into the construction industry

1.2 Mission
The Mission of [YOUR COMPANY NAME] Architect is to provide quality "environmental" architectural
services becoming a local icon evolving the Company's reputation into a successful green development
company.

1.3 Keys to Success

The keys to success for [YOUR COMPANY NAME] Architect's are:
1. Continue nurturing and expanding the Company's client, consultant and contractor base.
2. Maintain and improve the Company's reputation in the architectural service market by continuing to focus
and improve creativity, quality and responsiveness on every project.
3. Continue developing consultant alliances making the Company's services constantly improving.

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2.0 Company Summary

[YOUR COMPANY NAME] DBA [YOUR COMPANY NAME] Architect
[YOUR NAME]
[YOUR ADDRESS]
[YOUR ADDRESS 2]
[YOUR CITY]
[YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE]
[YOUR PHONE NUMBER]
[YOUR FAX NUMBER]
[YOUREMAIL@YOURCOMPANY.COM]
[YOUR WEBSITE ADDRESS]

[YOUR COMPANY NAME] ([YOUR COMPANY NAME]) is located in [YOUR CITY] and founded in 1986. 
[YOUR COMPANY NAME] provides residential architectural services to San Diego, Los Angeles, Orange and
Riverside counties.  In addition to our California license, [YOUR COMPANY NAME] is also licensed in
Arizona and Hawaii. [YOUR COMPANY NAME]'s leases 1,600 S.F. of office space at [ADDRESS] [CITY,
STATE ZIP].

[YOUR COMPANY NAME] has great name recognition based on 24 years of experience, positioning our
services in several different markets and expanding our services to include "sustainability" consulting and
developing.  This is based on our 24 years of experience designing and building residential projects.
Personal Achievements:
[INSERT ACHIEVEMENTS]
The funding shall provide the opportunity for [YOUR COMPANY NAME] Architecture to launch [COMPANY
NAME], a division of [COMPANY NAME] to provide a positive difference for our clientele and the community
by providing sustainable/green consulting and project development.
For our clientele:  A direct affect shall be to allow us to provide effective consulting that can be used to make
their personal and business environments more efficient and sustainable. The goal of the consulting efforts
shall be to enhance the client's lives, reduce their costs and enhance their environment.
For our Community:
• Per our consulting enhance the local environment
• Provide projects that are affordable and become the goal for the local construction industry
• Provide increases and stable quality employment for [YOUR COMPANY NAME] and the local construction
industry from laborers, local professionals, trades, suppliers and manufacturers, all while improving the
environment

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2.1 Company Ownership

[YOUR NAME], a California, Hawaii and Arizona licensed Architect, opened the architectural firm on July 1,
1986 and is the sole Owner of [YOUR COMPANY NAME], a Sub "S" Corporation.  This is a privately owned
corporation.
Opening his office in 1986, [YOUR NAME] has devoted his career to designing single and multi-family
residential projects, from low-income room additions and residences, to major luxury estates. [YOUR NAME]
has 24 years of experience in all aspects of architectural services and construction observation of all phases
of construction. In addition, [YOUR NAME] has acquired a General Contractor's license and built three
projects he designed for his clients.

2.2 Company History

[YOUR NAME] is the Owner/President of [YOUR COMPANY NAME] ([YOUR COMPANY NAME]). He is a
published and award winning, locally and nationally Architect.
[YOUR NAME] had two years of Landscape Architecture training prior to entering the College of Architecture
at the University of Arizona. Arizona is known as a design school prominent for environmental design. A
Freedman Scholarship recipient, [YOUR NAME] provided for his education by building residential
projects. Graduating in 1980 with a professional Bachelor of Architecture degree, [YOUR NAME] completed
his apprenticeship and became a licensed Architect in California and subsequently he has been licensed in
Arizona and Hawaii.
[YOUR NAME] 's training and experience uniquely qualify him for this venture. After 24 years, [YOUR NAME]
has successfully guided [YOUR COMPANY NAME] to a successfully and respected business within San
Diego County.
From 2007 through 2009 the residential construction industry was in a major slump, which has seriously
affected the Company's annual revenue and has forced [YOUR COMPANY NAME] to respond by reducing
staff. However, the Company is positive about the future and [YOUR COMPANY NAME]'s prospects.  [YOUR
COMPANY NAME] has great name recognition based on 24 years of experience, positioning our services in
several different markets and expanding our services to include "sustainability" consulting and
developing. This is based on our 24 years of experience designing and building residential projects.
The results of 2007 and 2008 are based on the Corporate Tax Return. The Company has filed an extension
for 2009 and the 2009 financials are based on internal statements.
COMMUNITY INVOLVEMENT
[INSERT INVOLVEMENT]

Table: Past Performance

Past Performance
2007 2008 2009
Sales $624,975 $497,069 $272,377
Gross Margin $624,975 $497,069 $272,377
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $548,662 $466,406 $287,586

Balance Sheet
2007 2008 2009

Current Assets
Cash $100,796 $93,732 $73,758
Other Current Assets $0 $0 $0
Total Current Assets $100,796 $93,732 $73,758

Long-term Assets

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 [YOUR COMPANY NAME] 2012

Long-term Assets $52,470 $95,610 $97,626

Accumulated Depreciation $52,470 $54,115 $55,760
Total Long-term Assets $0 $41,495 $41,866

Total Assets $100,796 $135,227 $115,624

Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $10,000 $4,600 $56,081
Total Current Liabilities $10,000 $4,600 $56,081

Long-term Liabilities $0 $34,968 $30,298

Total Liabilities $10,000 $39,568 $86,379

Paid-in Capital $1,000 $1,000 $1,000

Retained Earnings $13,483 $63,996 $45,284
Earnings $76,313 $30,663 ($17,039)
Total Capital $90,796 $95,659 $29,245

Total Capital and Liabilities $100,796 $135,227 $115,624

Other Inputs
Payment Days 0 0 0

Chart: Past Performance

Past Performance

$600,000

$500,000

$400,000 Sales

Gross
$300,000
Net
$200,000

$100,000

$0
2007 2008 2009

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3.0 Services
[YOUR COMPANY NAME] is an architectural consulting firm providing services to the private sector for
residential projects. These are successful services in design, document preparation, governmental processing
and construction observation through completion of different types of residential projects.  Based on the
professionalism and experience of [YOUR NAME] , [YOUR COMPANY NAME] wants to expand its services
by creating "[YOUR COMPANY NAME] Inc."  [YOUR COMPANY NAME] ([YOUR COMPANY NAME]) shall
be a division of [YOUR COMPANY NAME] in the same facilities that shall focus on environmental aspects
and education of the developing green movement for the building industry.  The services shall focus on two
areas:
1. Property Consulting:  Meeting with clients to assist their effort to make the clients real property more
environmentally efficient.
o For existing property, perform an analysis of the existing design, materials and facilities of the
property. The analysis shall identify good, moderate and failing aspects of their property from a health, safety,
economy/utility and environmental basis. [YOUR COMPANY NAME] would make recommendations to
improve the property i.e. remove a marginal FAU and replace with a more efficient unit with a higher seer
rating and minor improvements to the distribution system.  This change would produce a healthier, better
controlled indoor environment that shall be more efficient saving energy/money and reduces the carbon
footprint.  This also provides environmental education opportunities.
o For remodels or new construction the focus is on design, materials and technology to create living
environments that are sustainable and exceed green council standards; an example: use structural concrete
insulated panel technology/products (S.C.I.P.S.) for the structure system. This provides opportunities to use
and test "green" products. 
2. Project Development:  Find economically viable real property to purchase. These properties would be case
study projects to highlight and feature design concepts, "green" products and technologies in sustainable
remodeling and building. These projects would provide valuable opportunities to test design concepts,
(example: water harvesting) evaluate the durability of "green" products (example: S.C.I.P.S. panels) analyze
the performance of environmental technologies (point of source electrical generation solar system (P.V.
technology). These projects shall be invaluable for the Company as they shall be a source of revenue for
[YOUR COMPANY NAME] to develop future sustainable projects:
• An avenue for local training and employment.
• A study opportunity for manufactures and designers for their concepts and products.
• A marketing and educational opportunity for the media to promote environmental stewardship in the private
sector.

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The cost of the services would range depending on the service provided: 
• Consulting on an existing property would range from $250.00 - $500.00.
• Consulting on a remodel or new construction project would range from $1,000.00 to $5,000.00 depending on
the level of service requested.
• The cost for developing a project would range from 12% to 15% of the construction cost.

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4.0 Market Analysis Summary

[YOUR COMPANY NAME] Architect's strategy is simple. Within the Company's market areas there are
millions of existing homes which do not meet current or future environmental regulations and which need
modernization. There are hundreds to thousands of individuals or construction business, buildings or
remodeling who are in need of environmental consulting and there are only a few developers producing
projects for the private sector who are working to add sustainability and stewardship as part of their project
goals; the federal and state are enacting legislation currently and are moving in this environmentally
responsible direction.  [YOUR COMPANY NAME] shall concentrate initially on the majority numbers as a
starting point, while slowly working through consulting on construction projects as the main business through
to development projects, which is the ultimate goal.
Prospective clients for our services are initially in the residential private sector market.
The first client is a current homeowner realizing the cause and effect relationship the construction industry
has on their environment. They want to participate doing their part to reduce their personal impact on the local
environment and become more independent by reducing their dependence on the utility companies. These
prospective clients would use our home analysis services.
The second prospective clients would be an individual in the market to build new or remodel their real
property. This individual is in a position to fully integrate environmental design, materials and technology
because of the modern awareness of the general public for sustainable design and green construction. This
individual is seeking out and employing design firms who are progressively creating sustainable home
environments for the future. This would be our primary service.
Finally, the last category would be the actual environmental consumer and/or business person seeking to
purchase real property for the foreseeable future. My goal would be to initially provide projects [YOUR
COMPANY NAME] would develop. These projects would be aggressively marketed for their green design,
construction and sustainability.
This, in turn, would promote "[YOUR COMPANY NAME]" as a leader in the local architectural and
development service industry. This acknowledgement would lead to more inquiries and eventually into larger
types of projects i.e. mixed use including more Owners and users with each project.
Demographic information for Southern California Counties covered:
[CITY] - As of the census of 2000, there were 2,813,833 people, 994,677 households, and 663,449 families
residing in [CITY]. [CITY] had a 6.7% increase in population from 2000 - 2008.
[CITY] - As of the census of 2000, there were 1,545,387 people, 506,218 households, and 372,576 families
residing in [CITY]. [CITY] had a 35.9% increase in population from 2000 - 2008.
[CITY] - As of the census of 2000, there were 2,846,289 people, 935,287 households, and 667,794 families
residing in [CITY]. [CITY] had a 5.8% increase in population from 2000 - 2008.
[CITY] - As of the census of 2000, there were 9,519,338 people, 3,133,774 households, and 2,137,233
families residing in [CITY]. [CITY] had a 3.5% increase in population from 2000 – 2008.

4.1 Market Segmentation

[YOUR COMPANY NAME]'s services are referral based, by past clients, consultants and contractors with
whom we have collaborated. [YOUR COMPANY NAME] has great name recognition and respect for our
architectural services. [YOUR COMPANY NAME] has a referral base of over 30 consultants, 60 contractors
and over 150 clients as the structure to our marketing and sales efforts. [YOUR COMPANY NAME]'s main
marketing and sales tool is our web site: [YOUR WEBSITE ADDRESS]. Potential clients are directed to our
web site where they can discover who [YOUR COMPANY NAME] is: examples of our work, our design
philosophy and services and the local and national awards we have received. The website content is
designed and updated by [YOUR COMPANY NAME] and executed by our website consultant. All of [YOUR
COMPANY NAME]'s projects have construction site advertisement signs. When [YOUR NAME] is interviewed
by a potential client, a company brochure is given to the client that compliments with our website content.

Table: Market Analysis

Market Analysis
2010 2011 2012 2013 2014
Potential Growth CAGR
Customers
[CITY] 0.84% 663,449 669,022 674,642 680,309 686,024 0.84%

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[CITY] 4.49% 506,218 528,947 552,697 577,513 603,443 4.49%

[CITY] 0.73% 935,287 942,115 948,992 955,920 962,898 0.73%
[CITY] 0.44% 3,133,774 3,147,563 3,161,412 3,175,322 3,189,293 0.44%
Total 0.95% 5,238,728 5,287,647 5,337,743 5,389,064 5,441,658 0.95%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

San Diego County Households

Riverside County Households

Orange County Households

Los Angeles County Households

4.2 Target Market Segment Strategy

[YOUR COMPANY NAME] Architects services the Residential Private sector market. The Company works
directly with Residential customers, contractors and consultants.
The Company would like to increase sales in all market segments above with a concentration of growth in
environmental remodeling of residential homes in the four county area of Southern California. Additionally,
[YOUR COMPANY NAME] would like to work with contractors and consultants on new home building projects
for environmentally friendly homes. 
Because [YOUR COMPANY NAME] Architects focuses on residential customers, the Company knows how
to meet the specific needs of its customers. Therefore, the Company will utilize the following sales strategy to
reach its target market: 
 Sales and educational Brochures for "green" homes 
 Creating strategic alliances with other local sustainable industry icons
 Campaign to homeowners, contractors and consultants for our "green" architectural services
 A quarterly news letter emailed to our referral base
 Website & Web Social Marketing 

4.3 Service Business Analysis

The architect's activities and services affect and provide work for many trade suppliers and manufacturers in
the building industry. By arranging the client's requirements, the Architect is able to create a synergy with
other design trades and construction professionals and the manufacturers. This synergy is provided as a
continual growing performance for the general public to use, live and enjoy. For real property projects to be
conceived, developed, constructed and completed, the projects will affect the local environment and economy
of many individuals.  As new technologies, materials and concepts are created, these advances are absorbed
into the construction industry as featured and celebrated participants. 
[YOUR COMPANY NAME] Architects concentrates its efforts in three specific architectural areas of the
industry for residential customers:

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 [YOUR COMPANY NAME] 2012

• Existing real property consulting: this shall be inspecting and evaluating an existing property, entering data
into a computer profile and providing recommendations to the client based on the profile. This would be a
single days consulting.
• Remodels and new construction consulting: this shall be design, review, material, means and method
recommendations. This is an on going process from 1 week to 1 month consultation.
• For developing real property [YOUR COMPANY NAME]/[YOUR COMPANY NAME] would be fully involved
in all aspects of the process from ground breaking through final closure and could take 6-8 months.

4.3.1 Competition and Buying Patterns

The first competition is the local utility company program for reviewing existing real property. Their service is
generally very basic and includes some rebate programs. The utility program is one dimensional - "to reduce
utility consumption resulting in lower utility bills".  A useful program, but it does not address the quality or
compatibility of other changes on the owner's lifestyle.
The other competition locally is start up companies working from home offices with little to no reputation. This
situation is ripe for abuses because there is little accountability or ethical standard. 
"[YOUR COMPANY NAME]" is a local business with 24 years of experience and reputation. Once launched
"[YOUR COMPANY NAME]" shall be the trusted and experienced authority, not only for architectural
services, but also environmental considerations within one company. The start-ups are generally "consulting
to the consultant" (other design professionals) which is a more expensive and less accountable service to the
community.
[YOUR COMPANY NAME]'s clients come with two different expectations and goals. The first client is the cost
conscious consumer. He is looking for the most service at the least price. Our service is arranged to provide
the most necessary service for a competitive price based on our experience. The other potential client, who
is the Company's main focus, is the client who has sought out our services based on our reputation,
knowledge, experience and quality of our comprehensive service. While price is important, our visibility and
reputation override the price of our services. Branding is important and we already have name recognition
and a great reputation. As a result, the Company intends to piggyback onto this reputation by using "[YOUR
COMPANY NAME]". By exposing our referral network and the proper exposure through marketing, we
anticipate "[YOUR COMPANY NAME]" shall accelerate forward as the local authority for providing
environmental and sustainable consulting services. This strategy shall attract more and better clients
interested in the future of sustainable architecture. This strategy over the years has developed from small
single room additions into major residential and estate projects.
Given the opportunity, [YOUR NAME] and [YOUR COMPANY NAME] Architecture, with the resources of the
A.I.A. office of the state Architect and trade literature, shall quickly become a leader offering comprehensive
services.

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5.0 Web Plan Summary

[YOUR COMPANY NAME] currently has a website, [YOUR WEBSITE ADDRESS]. The Company has an
attractive, simple and informative internet focused website.
The website will be used to educate the consumer on "sustainable" architecture, and has an expose of
successful projects the Company has produced. This is expanding our current web presence.

5.1 Website Marketing Strategy

The Companies website will be promoted on all of our marketing materials. We will advertise our site on our
business cards and during our Advertising Campaigns. Additionally, the Company will use keyword searches
for positioning itself in the web market. [YOUR COMPANY NAME] is also planning to initiate a newsletter
targeting certain markets.

5.2 Development Requirements

[YOUR COMPANY NAME] will increase its presence on the web by promoting the site on all of its brochures
and marketing material. The Company plans to tie-into social media sites to expand our presence on the web
to Residential customers. 
The website is revised and updated monthly. [YOUR COMPANY NAME] highlight's three specific areas in the
development of our projects:
 Projects in design
 Projects in construction
 Completed projects
The Company estimates it has 10 seconds for the observer to find and respond to a project that captures their
interest. So the above three areas are important and revised monthly.

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6.0 Strategy and Implementation Summary

[YOUR COMPANY NAME] Architect has clearly defined the target market and has differentiated itself by
offering a solid solution to fulfilling its 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 [YOUR COMPANY NAME]
Architect's must address. It allows us to examine the opportunities presented to the Company as well as
potential threats. The company's strength will help it to succeed. These strengths are:
• Our positive approach to all our projects, our 24 years of quality and creative design supported by our
awards
• The grooming of our referral base over 24 yrs. supported by our A-1 reputation
• Our fair and honest fee structure
• Our current financial status
• Our facilities well planned for this growth: furnishings, space, computers, etc.
• Our current staff has exceptional skills and technology
Strengths are valuable, but it is also important to realize the weaknesses the Company must
address. [YOUR COMPANY NAME] Architect's main weakness is lacking the funds to grow the business and
launch [YOUR COMPANY NAME].   
The Company's strengths will help it capitalize on emerging opportunities. These opportunities include, but
are not limited to, [YOUR COMPANY NAME]'s business expansion to take advantage of the timing, funding
and lifestyle changes as a result of the consciences of Californians for the environment. This is a growing
opportunity that shall become an ongoing opportunity.
Threats that the company should be aware of include, timing, the economy and uncontrolled growth. 

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6.1.1 Strengths
[YOUR COMPANY NAME] Architects Strengths include:
Our intangible strengths are:
• Our positive approach to all our projects, our 24 years of quality and creative design supported by our
awards
• The grooming of our referral base over 24 yrs. supported by our A-1 reputation
• Our fair and honest fee structure.
Our tangible strengths are:
• Our current financial status
• Our facilities well planned for this growth: furnishings, space, computers, etc.
• Our current staff has exceptional skills and technology.

6.1.2 Weaknesses
[YOUR COMPANY NAME] Architect's weaknesses come from the lack of funding to grow the business. Grant
money will be used to launch [YOUR COMPANY NAME], a division of [YOUR COMPANY NAME].

6.1.3 Opportunities
The greatest opportunity for [YOUR COMPANY NAME]'s business expansion is to take advantage of the
timing, funding and lifestyle changes as a result of the consciences of Californians for the environment. This is
a growing opportunity that shall become an ongoing opportunity. Timing is critical to be a creator of this
consciousness. The other major opportunity available is the lack of housing generated in Southern California. 
This combination is a tremendous opportunity.
This strategy is long term to grow and become mainstream within the communities we consult.  Through
exposure, education and revenue [YOUR COMPANY NAME] is expected to grow into an environmentally
committed developer. The Company will start with consulting, managing the first study project and grow into a
company providing not only environmentally responsible projects for our clients but also provide white collar
jobs within the company and construction and manufacturing jobs to support our projects. Initially the projects
would be speculative, but with the correct business environment [YOUR COMPANY NAME] would be
acquiring private contracts in addition to the speculative market.

6.1.4 Threats
The biggest threat is timing. The sooner we can grow to a respected professional position in the community,
the more likely we can repel advances by competitors to our brand and territory.  Another serious threat is to
not get ahead of our capabilities. We need to grow into our expansion - keeping our risk low and potential
high. 

6.2 Competitive Edge

[YOUR COMPANY NAME] Architect's competitive edge is:
• 24 yrs. Of experience, name recognition, comprehensive services providing more to our clients and a large
referral base of satisfied clients, consultants and contractors
• Hands on involvement with the Construction Industry from design and observation for 24 years
• As an Architect, [YOUR NAME] has a specific education and experience in the local Community. The
Company provides services in the single and multiple family residential markets; understanding, responding,
predicting and leading are aspects of our services applied to our projects for our clients and the Community
• The Company's ability to be involved in the construction process shaping the future. [YOUR NAME] has
actual construction experience by building homes for over five years while attending college. He also acquired
a contractor's license and built three of his projects for his clients. [YOUR NAME] 's 24 years of construction
observation experience dealing with all phases of construction and the trades, which complete those phases,
provides a perspective uniting Architecture and construction
• Ability to lead the community into a healthier and "greener" built environment for the future. Not only
providing services which promote and apply green philosophy and technologies, but also by developing
projects that can be used as examples for research, promotion and learning

13
 [YOUR COMPANY NAME] 2012

6.3 Marketing Strategy

[YOUR COMPANY NAME] has clearly defined the target market and has differentiated itself by offering
a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established with an
implementation plan designed to ensure the goals set forth below are achieved. 

6.4 Sales Strategy

The Architectural industry really does not rely on sales in the traditional sense for a product. Architecture is
mostly an industry supported/advanced through marketing and is generally a referral based industry.
[YOUR COMPANY NAME]'s services are referral based; by past clients, consultants and contractors with
whom we have collaborated. This referral based marketing and sales strategy is based on professional and
quality service and experienced based performance - trust. This strategy continues to be successful for
[YOUR COMPANY NAME]. [YOUR COMPANY NAME]'s marketing and sales include community
involvement.  [YOUR NAME] /[YOUR COMPANY NAME] is also a member of a local professional business
organization, a member of the local Chamber of Commerce, and a participant and contributor to local
religious and charitable organizations and events i.e. Casa de Amparo in Oceanside, CA and Habitat for
Humanity. 
[YOUR COMPANY NAME] also has collateral and sales literature that augments the main marketing
efforts. Our marketing/sales goal is to introduce/expose our new "sustainable" consulting and developing
service to the referral base. By direct contact, followed by providing a section of our website dedicated to
these sustainable consulting and development services we shall educate the referral base and the general
public to the importance of "environmentally sensitive design and construction for the future. 
[YOUR COMPANY NAME] is the best company to provide those services. This marketing process would be
supported by collateral and brochure literature. The content and design would be created by [YOUR
COMPANY NAME] collaborating with a graphics designer and would be professionally printed. Some cold
calling and direct mailings are anticipated, but not the main effort. 
Architectural consulting is a professional service to the public and does not provide a product.  Traditional
sales efforts, ads, flyers, cold calls, etc. are not effective. "Experience, trust, awards and a quality referral
system if properly developed" which [YOUR COMPANY NAME] has is the best opportunity to further our
efforts. A quarterly newsletter emailed to our referral base and friends shall also be a source of education and
a sale tool. The design and content shall be produced by [COMPANY NAME].
[YOUR COMPANY NAME] has started to create strategic alliances with other local sustainable industry icons:
[COMPANY NAME] - Engineering/Installation of solar P.V. and water heating systems
[COMPANY NAME] - Factory trained contractor for S.C.I.P.S. (Structural Concrete Insulated Panels)
construction technology.
The Company is working on creating an initial development project with these major alliances and creates
follow-up marketing and sales.

6.4.1 Sales Forecast

Sales are broken down into two categories: Architectural fees and residential home sales.
 
Architectural Fees - As of June 30, 2010, architectural fees totaled approximately $132,000. The Company
estimates a small increase in fees for 2010 over the projected fees for 2009. Once [YOUR COMPANY NAME]
is launched, the Company estimates sales increases of 15% in 2011 and 20% in 2012.
 
Residential Home Sales - Once grant funds are received, [YOUR COMPANY NAME] will purchase an
existing home and remodel the home with a complete solar package creating an environmentally friendly
home. The new remodeled home will be used for marketing purposes and then sold. The funds from sales will
then be used to purchase an additional home to remodel. The Company will purchase and start
remodeling the initial home in the fourth quarter of 2010 and anticipates selling two homes in 2011 and four
homes in 2012. The estimated cost to purchase the homes is $300,000 each with remodeling costs of
$50,000 and a resale price of $400,000. All figures shown are very conservative based on the real estate
market in the last 18 months and the improving economy starting in the second quarter of 2010.

14
 Jul Aug Sep Oct Nov Dec
[YOUR COMPANY NAME] 2012

Table: Sales Forecast

Sales Forecast
2010 2011 2012
Sales
Fee Income $280,000 $322,000 $386,400

Jan Feb Mar Apr May Jun

Residential Home Sales $0 $800,000 $1,600,000
$0 $0 $0
Total Sales $280,000 $1,122,000 $1,986,400

Direct Cost of Sales 2010 2011 2012

COS - Residential Homes $0 $600,000 $1,200,000
Remodeling Cost - Residential Homes $0 $100,000 $200,000
Subtotal Direct Cost of Sales $0 $700,000 $1,400,000

Chart: Sales Monthly

Sales Monthly
$30,000

$27,000

$24,000

$21,000
Fee Income
$18,000

$15,000 Residential Home Sales

$12,000 $0

$9,000

$6,000

$3,000

$0

15
 [YOUR COMPANY NAME] 2012

Chart: Sales by Year

Sales by Year

$2,000,000

$1,800,000

$1,600,000

$1,400,000
Fee Income
$1,200,000
Residential Home Sales
$1,000,000
$0
$800,000

$600,000

$400,000

$200,000

$0
2010 2011 2012

16
 [YOUR COMPANY NAME] 2012

6.5 Milestones
In order to achieve the growth and marketing goals that have been outlined in this business plan, the
Company has the following deadlines to meet and ideas to implement. Some of these are outlined below:
1. Obtain grant funding to expand and improve the business
2. Legal Services: Legal consulting fees to set up [YOUR COMPANY NAME] Development
3. Web and Marketing Materials: Start-up costs for informational, marketing and co-lateral materials
necessary to promote and establish [YOUR COMPANY NAME] Development including website.
4. Computer Software: Purchase computer software capable of supporting the analysis necessary to provide
consulting services
5. Hire Computer Technician: Hire a computer technician to process the consulting services
6. Residential Home Acquisition Project: Purchase and create the first project incorporating solar and
sustainable design and technology - during and upon completion the project shall be used for education,
training, and promotion.
7. Remodeling Costs: Remodel the residential home with a complete solar package creating
an environmentally friendly home
Additional project funding shall come from suppliers, trades, manufacturers and [YOUR COMPANY NAME]
Architecture.

Table: Milestones
Milestones

Milestone Start Date End Date Budget Manager Department

Legal Services 9/20/2010 9/24/2010 $1,500 [YOUR NAME] Administrative
Web and Marketing 9/20/2010 10/31/2010 $3,500 [YOUR NAME] Marketing
Material
Computer Software 9/20/2010 9/30/2010 $4,000 [YOUR NAME] Operations
Hire Computer 10/1/2010 9/30/2011 $42,000 [YOUR NAME] Administrative
Technician
Residential Home 10/1/2010 10/8/2010 $300,000 [YOUR NAME] Operations
Acquisition
Remodeling Costs 10/18/2010 12/31/2010 $50,000 [YOUR NAME] Operations

Totals $401,000

7.0 Management Summary

Currently, [YOUR COMPANY NAME] Architect is owned and managed by [YOUR NAME] , a California,
Hawaii and Arizona licensed Architect. [YOUR NAME] has 24 years of experience in all aspects of
architectural services and construction observation of all phases of construction.  In addition, [YOUR NAME]
has acquired a General Contractor's license and built three projects he designed for his clients.
[YOUR NAME] is assisted by an office/Project manager. Upon receipt of grant funding, the Company will hire
a Computer Technician.

7.1 Personnel Plan

The table below contains the details of our personnel plan. [YOUR NAME] is the owner and responsible for
all operational aspects of the business. [YOUR NAME] compensation will be $48,000 for 2010. [YOUR
NAME] is currently assisted by an Office/Project manager at a compensation of $42,000.
Upon receipt of grant funding, the Company will hire a Computer Technician at a compensation of $42,000.
As [YOUR COMPANY NAME] gears up and sales start to increase, the Company estimates it will hire an
additional employee in the middle of 2011 and in the middle of 2012.

17
 [YOUR COMPANY NAME] 2012

Table: Personnel
Personnel Plan
2010 2011 2012
[YOUR NAME] $48,000 $52,000 $60,000
Office/Project Manager $42,000 $44,000 $46,000
Computer Technician $10,500 $42,000 $44,000
Additional Employees $0 $18,000 $57,000
Total People 3 4 5

Total Payroll $100,500 $156,000 $207,000

18
 [YOUR COMPANY NAME] 2012

8.0 Financial Plan

The current financial plan for [YOUR COMPANY NAME] Architect is to obtain grant funding in the amount of
$350,000. The grant will be used to launch [YOUR COMPANY NAME], a division of [YOUR COMPANY
NAME] Architect. Within the first 6 months of receipt of grant funding, the Company expects staff to hire
a Computer Technician and purchase a home for remodeling. The following 6 months should provide enough
services to sustain the increased staff and continued expansion. 
The following sections of this plan will serve to describe the Company's financial plan in more detail:
 General Assumptions
 Break-even Analysis
 Profit and Loss
 Cash Flow
 Balance Sheet
 Ratios

8.1 Important Assumptions

The table below presents the assumptions used in the financial calculations of this business plan. [YOUR
COMPANY NAME] Architect is a Sub S corporation and is taxed accordingly, estimated at a 25% tax rate.
The average Gross Profit % for purchase, remodeling and sale of residential homes is estimated at 13%.  The
Company has one long term note at 6%. Depreciation expense is based on past history. Insurance,
utilities and all other expenses assume a 5% increase due to inflation & other cost variables.

8.2 Break-even Analysis

For the Company's break-even analysis for 2010, the monthly revenue break-even is projected to
be $22,048. Operating Expenses as a % of sales will decrease as the [YOUR COMPANY NAME] is
expanded. Sales for Architectural fees are projected to increase 15% for the 2011 and 20% for 2012 due to
the expansion of [YOUR COMPANY NAME] along with the improving economy.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $22,048

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $22,048

19
 [YOUR COMPANY NAME] 2012

Chart: Break-even Analysis

Break-even Analysis
$20,000

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)

($15,000)

($20,000)

$0 $8,000 $16,000 $24,000 $32,000 $40,000

$4,000 $12,000 $20,000 $28,000 $36,000 $44,000

20
 [YOUR COMPANY NAME] 2012

8.3 Projected Profit and Loss

[YOUR COMPANY NAME] Architect's Pro Forma Profit and Loss statement was constructed based in large
part on past performance over the 2008, 2009 and the first six months of 2010 periods, economic market
conditions for the Southern California area in the last 18 months, the improving economy starting in
the second quarter of 2010, investments in [YOUR COMPANY NAME] and marketing and advertising.
The sales for 2010, 2011 and 2012 are $280,000, $1,122,000 and $1,986,400, respectively. The
average Gross Profit % is estimated to be 37.61% in 2011 and 29.52% in 2012. The Company will show a
profit for 2010, 2011 and 2012 in the amount of $10,348, $65,083 and $137,390, respectively. The Company
will show EBITDA of $17,065 in 2010, $89,700 in 2011 and $185,750 in 2012. The Operating expenses as a
percentage of sales for this period were 94%, 30%, and 20%, respectively. The percentages of the net profit
to sales for this period were 3.7%, 5.8% and 6.92%, respectively.
The Operating Expenses and Net Profit to Sales for the 2011 and 2012 period are affected by the change in
operations of purchasing residences for remodeling. Operating Expenses to Sales will continue to decrease in
the future as the Company purchases and remodels more homes per year. Net Profit and Net Profit to Sales
Percentage will continue to rise in future years as the expansion of [YOUR COMPANY NAME] and
investments in Marketing and Advertising bear fruit.

Table: Profit and Loss

Pro Forma Profit and Loss
2010 2011 2012
Sales $280,000 $1,122,000 $1,986,400
Direct Cost of Sales $0 $700,000 $1,400,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $700,000 $1,400,000

Gross Margin $280,000 $422,000 $586,400

Gross Margin % 100.00% 37.61% 29.52%

Expenses
Payroll $100,500 $156,000 $207,000
Marketing/Promotion $3,680 $6,000 $6,300
Depreciation $1,645 $1,645 $1,645
Rent $16,800 $17,600 $18,500
Office & Computer Expense $15,400 $12,000 $12,600
Supplies $19,200 $20,000 $21,000
Printing/Photography $9,960 $10,500 $11,000
Telephone $6,900 $7,300 $7,700
Travel $4,800 $5,000 $5,300
Professional Fees $3,300 $4,000 $6,000
Auto Expense $14,400 $15,000 $15,800
Utilities $2,400 $2,500 $2,700
Insurance $28,320 $29,700 $31,200
Payroll Taxes $15,075 $23,400 $31,050
Other $22,200 $23,300 $24,500

Total Operating Expenses $264,580 $333,945 $402,295

Profit Before Interest and Taxes $15,420 $88,055 $184,105

EBITDA $17,065 $89,700 $185,750
Interest Expense $1,623 $1,278 $918
Taxes Incurred $3,449 $21,694 $45,797

Net Profit $10,348 $65,083 $137,390

Net Profit/Sales 3.70% 5.80% 6.92%

21
[YOUR COMPANY NAME] 2012

22
 [YOUR COMPANY NAME] 2012

Chart: Profit Monthly

Profit Monthly
$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

($500)

($1,000)

($1,500)

($2,000)

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

Chart: Profit Yearly

Profit Yearly

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
2010 2011 2012

23
 [YOUR COMPANY NAME] 2012

Chart: Gross Margin Monthly

Gross Margin Monthly
$30,000

$27,000

$24,000

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

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

Chart: Gross Margin Yearly

Gross Margin Yearly

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
2010 2011 2012

8.4 Projected Cash Flow

[YOUR COMPANY NAME] Architect has applied for a grant of $350,000. In 2010, the Company forecast
that it will receive $350,000 in the month of September. After receipt of the Grant Funding, it will use the grant
to purchase and remodel an existing residential home to become environmentally friendly. Additionally the
Company will purchase computer software and hire a Computer Technician. The Company will also launch an
advertising campaign around the remodeled home.   
The following table displays the Company's cash flow and the chart illustrates monthly cash flow in the first
year. Monthly cash flow projections are also included in the appendix.

24
 [YOUR COMPANY NAME] 2012

Table: Cash Flow

Pro Forma Cash Flow
2010 2011 2012
Cash Received

Cash from Operations

Cash Sales $280,000 $1,122,000 $1,986,400
Subtotal Cash from Operations $280,000 $1,122,000 $1,986,400

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $1,600 $720 $1,530
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 $350,000 $0 $0
Subtotal Cash Received $631,600 $1,122,720 $1,987,930

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending $268,007 $1,055,272 $1,847,365
Bill Payments $0 $0 $0
Subtotal Spent on Operations $268,007 $1,055,272 $1,847,365

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 $52,731 $0 $0
Long-term Liabilities Principal Repayment $6,000 $6,000 $6,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $320,000 $30,000 $0
Dividends $0 $0 $0
Subtotal Cash Spent $646,738 $1,091,272 $1,853,365

Net Cash Flow ($15,138) $31,448 $134,565

Cash Balance $58,620 $90,068 $224,633

25
 Jan Fe
[YOUR COMPANY NAME] 2012

Chart: Cash
Cash
$400,000

$300,000

$200,000

$100,000 Net Cash Flow

Cash Balance
$0

($100,000)

($200,000)

($300,000)

26
 [YOUR COMPANY NAME] 2012

8.5 Projected Balance Sheet

[YOUR COMPANY NAME] Architect's net worth is $389,593, $454,676 and $592,066 for 2010, 2011 and
2012, respectively. The Company will have Total Assets of $418,841, $478,644 and $611,564 for 2010, 2011
and 2012, respectively.

Table: Balance Sheet

Pro Forma Balance Sheet
2010 2011 2012
Assets

Current Assets
Cash $58,620 $90,068 $224,633
Other Current Assets $0 $0 $0
Total Current Assets $58,620 $90,068 $224,633

Long-term Assets
Long-term Assets $417,626 $447,626 $447,626
Accumulated Depreciation $57,405 $59,050 $60,695
Total Long-term Assets $360,221 $388,576 $386,931
Total Assets $418,841 $478,644 $611,564

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities $4,950 $5,670 $7,200
Subtotal Current Liabilities $4,950 $5,670 $7,200

Long-term Liabilities $24,298 $18,298 $12,298

Total Liabilities $29,248 $23,968 $19,498

Paid-in Capital $351,000 $351,000 $351,000

Retained Earnings $28,245 $38,593 $103,676
Earnings $10,348 $65,083 $137,390
Total Capital $389,593 $454,676 $592,066
Total Liabilities and Capital $418,841 $478,644 $611,564

Net Worth $389,593 $454,676 $592,066

27
 [YOUR COMPANY NAME] 2012

8.6 Business Ratios

The table below presents the projected business ratios from the Architectural Services Industry for
businesses with sales below $500,000 as a reference.

Table: Ratios
Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 2.80% 300.71% 77.04% 0.47%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 59.10%
Total Current Assets 14.00% 18.82% 36.73% 83.86%
Long-term Assets 86.00% 81.18% 63.27% 16.14%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 1.18% 1.18% 1.18% 40.82%

Long-term Liabilities 5.80% 3.82% 2.01% 36.82%
Total Liabilities 6.98% 5.01% 3.19% 77.65%
Net Worth 93.02% 94.99% 96.81% 22.35%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 37.61% 29.52% 75.47%
Selling, General & Administrative 96.30% 31.81% 22.60% 36.59%
Expenses
Advertising Expenses 1.31% 0.53% 0.32% 0.94%
Profit Before Interest and Taxes 5.51% 7.85% 9.27% 6.66%

Main Ratios
Current 11.84 15.88 31.20 1.49
Quick 11.84 15.88 31.20 1.38
Total Debt to Total Assets 6.98% 5.01% 3.19% 77.65%
Pre-tax Return on Net Worth 3.54% 19.09% 30.94% 104.64%
Pre-tax Return on Assets 3.29% 18.13% 29.95% 23.39%

Additional Ratios 2010 2011 2012

Net Profit Margin 3.70% 5.80% 6.92% n.a
Return on Equity 2.66% 14.31% 23.21% n.a

Activity Ratios
Accounts Payable Turnover 0.00 0.00 0.00 n.a
Payment Days 0 0 0 n.a
Total Asset Turnover 0.67 2.34 3.25 n.a

Debt Ratios
Debt to Net Worth 0.08 0.05 0.03 n.a
Current Liab. to Liab. 0.17 0.24 0.37 n.a

Liquidity Ratios
Net Working Capital $53,670 $84,398 $217,433 n.a
Interest Coverage 9.50 68.91 200.58 n.a

Additional Ratios
Assets to Sales 1.50 0.43 0.31 n.a
Current Debt/Total Assets 1% 1% 1% n.a

28
 [YOUR COMPANY NAME] 2012

Acid Test 11.84 15.88 31.20 n.a

Sales/Net Worth 0.72 2.47 3.36 n.a
Dividend Payout 0.00 0.00 0.00 n.a

29
 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Fee Income $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000
Residential Home Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
COS - Residential Homes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Remodeling Cost - $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Residential Homes
Subtotal Direct Cost of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales

Page 1
 Appendix

Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
[YOUR NAME] $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Office/Project Manager $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Computer Technician $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,500 $3,500 $3,500
Additional Employees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 2 2 2 2 2 2 2 2 2 3 3 3

Total Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $11,000 $11,000 $11,000

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $11,000 $11,000 $11,000
Marketing/Promotion $20 $20 $20 $20 $20 $20 $20 $20 $20 $1,000 $1,000 $1,500
Depreciation $137 $137 $137 $137 $137 $137 $137 $137 $137 $137 $137 $138
Rent $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Office & Computer $950 $950 $950 $950 $950 $950 $950 $950 $950 $2,950 $1,950 $1,950
Expense
Supplies $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Printing/Photography $830 $830 $830 $830 $830 $830 $830 $830 $830 $830 $830 $830
Telephone $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575
Travel $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Professional Fees $150 $150 $150 $150 $150 $150 $150 $150 $1,650 $150 $150 $150
Auto Expense $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360 $2,360
Payroll Taxes 15% $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125 $1,650 $1,650 $1,650
Other $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850

Total Operating $20,297 $20,297 $20,297 $20,297 $20,297 $20,297 $20,297 $20,297 $21,797 $27,302 $26,302 $26,803
Expenses

Profit Before Interest $1,703 $1,703 $1,703 $1,703 $1,703 $1,703 $1,703 $1,703 $2,203 ($1,302) $3,698 ($2,803)
and Taxes
EBITDA $1,840 $1,840 $1,840 $1,840 $1,840 $1,840 $1,840 $1,840 $2,340 ($1,165) $3,835 ($2,665)
Interest Expense $149 $146 $144 $141 $139 $136 $134 $131 $129 $126 $124 $121
Taxes Incurred $389 $389 $390 $390 $391 $392 $392 $393 $519 ($357) $894 ($731)

Net Profit $1,166 $1,167 $1,169 $1,171 $1,173 $1,175 $1,177 $1,179 $1,556 ($1,071) $2,681 ($2,193)
Net Profit/Sales 5.30% 5.31% 5.31% 5.32% 5.33% 5.34% 5.35% 5.36% 6.48% -4.12% 8.94% -9.14%

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 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 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000
Subtotal Cash from $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $24,000 $26,000 $30,000 $24,000
Operations

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $200 $200 $200 $200 $200 $200 $200 $200 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $350,000 $0 $0 $0
Subtotal Cash Received $22,200 $22,200 $22,200 $22,200 $22,200 $22,200 $22,200 $22,200 $374,000 $26,000 $30,000 $24,000

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from
Operations
Cash Spending $20,697 $20,696 $20,694 $20,692 $20,690 $20,688 $20,686 $20,684 $22,307 $26,934 $27,182 $26,055
Bill Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Spent on $20,697 $20,696 $20,694 $20,692 $20,690 $20,688 $20,686 $20,684 $22,307 $26,934 $27,182 $26,055
Operations

Additional Cash Spent

Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $10,000 $10,000 $20,000 $12,731
Repayment
Long-term Liabilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $300,000 $10,000 $10,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $21,197 $21,196 $21,194 $21,192 $21,190 $21,188 $21,186 $21,184 $32,807 $337,434 $57,682 $49,286
Net Cash Flow $1,003 $1,004 $1,006 $1,008 $1,010 $1,012 $1,014 $1,016 $341,193 ($311,434) ($27,682) ($25,286)
Cash Balance $74,761 $75,765 $76,771 $77,779 $78,789 $79,801 $80,815 $81,831 $423,023 $111,589 $83,906 $58,620

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 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 $73,758 $74,761 $75,765 $76,771 $77,779 $78,789 $79,801 $80,815 $81,831 $423,023 $111,589 $83,906 $58,620
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $73,758 $74,761 $75,765 $76,771 $77,779 $78,789 $79,801 $80,815 $81,831 $423,023 $111,589 $83,906 $58,620

Long-term Assets
Long-term Assets $97,626 $97,626 $97,626 $97,626 $97,626 $97,626 $97,626 $97,626 $97,626 $97,626 $397,626 $407,626 $417,626
Accumulated $55,760 $55,897 $56,034 $56,171 $56,308 $56,445 $56,582 $56,719 $56,856 $56,993 $57,130 $57,267 $57,405
Depreciation
Total Long-term Assets $41,866 $41,729 $41,592 $41,455 $41,318 $41,181 $41,044 $40,907 $40,770 $40,633 $340,496 $350,359 $360,221
Total Assets $115,624 $116,490 $117,357 $118,226 $119,097 $119,970 $120,845 $121,722 $122,601 $463,656 $452,085 $434,265 $418,841

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

Current Liabilities
Accounts Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $56,081 $56,281 $56,481 $56,681 $56,881 $57,081 $57,281 $57,481 $57,681 $47,681 $37,681 $17,681 $4,950
Subtotal Current $56,081 $56,281 $56,481 $56,681 $56,881 $57,081 $57,281 $57,481 $57,681 $47,681 $37,681 $17,681 $4,950
Liabilities

Long-term Liabilities $30,298 $29,798 $29,298 $28,798 $28,298 $27,798 $27,298 $26,798 $26,298 $25,798 $25,298 $24,798 $24,298
Total Liabilities $86,379 $86,079 $85,779 $85,479 $85,179 $84,879 $84,579 $84,279 $83,979 $73,479 $62,979 $42,479 $29,248

Paid-in Capital $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $351,000 $351,000 $351,000 $351,000
Retained Earnings $45,284 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245 $28,245
Earnings ($17,039) $1,166 $2,333 $3,502 $4,673 $5,846 $7,021 $8,198 $9,377 $10,932 $9,861 $12,541 $10,348
Total Capital $29,245 $30,411 $31,578 $32,747 $33,918 $35,091 $36,266 $37,443 $38,622 $390,177 $389,106 $391,786 $389,593
Total Liabilities and $115,624 $116,490 $117,357 $118,226 $119,097 $119,970 $120,845 $121,722 $122,601 $463,656 $452,085 $434,265 $418,841
Capital

Net Worth $29,245 $30,411 $31,578 $32,747 $33,918 $35,091 $36,266 $37,443 $38,622 $390,177 $389,106 $391,786 $389,593

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