1.

Our Project or Service Concept

Our cleaning product business offers various high quality cleaning products to meet the needs of
both household and commercial customers, such as a cleaning tablet for clothes, glasses, dishes,
and floors.We are glad to provide effective and eco-friendly cleaning solutions that promote a
clean and healthy environment for people with different needs to clean their home and places.
Our products are very easy to use, individuals can just have a single tablet and drop them in the
water which will dissolve, and users can use them many times. Our products are affordable, and
less harmful than other chemical cleaning products. Our mission and vision is to make daily
cleaning in every household or business easier, faster, healthier, more affordable with less
pollution, and to get out of traditional cleaning methods. Moveover, we have collaborated with
Chinese manufacturers to boost our supply chain, and to make sure that we have sufficient
supply to fulfill the demand. Along with providing retail sales for the local store and
supermarkets, we also established wholesale agreements with handymen and cleaning companies
and have supplied them with our products. Party associations are a target client for policing
where we provide a specialized cleaning services during events and parties Based on our client
centric attitude and commitment to excellence, our cleaning business is passionate about
providing the most effective, highest quality cleaning services imaginable; our primary focus is
putting spaces beyond flawless and making certain that our clients have in no doubt a hygienic
environment where they live and work.

2. Revenue Projection
Provide revenue projections as described above. Explain your projections and
indicate your “time to first dollar.”

Our company has created a pro forma report to estimate the revenue that will be received from
the beginning of 2024 to December 2025 which is equivalent to 2 years. We will be expecting to
reach the breakeven point in late 2024 which we will be making our very first dollar and by
making our first dollar in less than one year show that our company is making good progress as
well as have a potential to move further and grow bigger in the market.

As our company distribute the product to retail store and supermarket and begin our first sale on
28thFebruary 2024, we receive less than $10000 in revenue due to two main reasons such as that
our cleaning tablet is still brand new in the market and not many people have heard or seen our
product before, another reason is that many people would question the effectiveness of the tablet
which is understandable because it is very unusual for most cleaning product user since with just
a small tablet would have the same effectiveness with the regular liquid state cleaning product
and it is fairly cheap compare to the usual cleaning product. To tackle these problems and to
increase our sales, we decided to allocate some more money to marketing and this will spread
our brand appearance in every part of the nation as well as to ensure the effectiveness and the
cleanness that our tablet can deliver and also to put the doubt to our product to ease. As this plan
has been implemented, the revenue will start growing from one month to another until we reach
the breakeven point and make our first dollar. However, the revenue will keep on growing until it
significantly drops in February 2025 because our manufacturing partner in China will stop
producing for a while due to Chinese New Year so this will reduce our stock in inventory. The
reduction in inventory also reduces the sales and revenue therefore we receive a loss for one
month. After the holiday, in March 2025, our inventory will be full and continue to provide the
product to our loyal customers and since then, our profit will keep on growing until the end of
2025.

P&L Projection
Subtract your expected costs from your expected revenues to create P&L statements for
the same periods. Explain your projections and indicate your “time to first profit.”

To create our P&L statements for our project, we have reported the pro forma financial report
statements. We have projected our revenue streams, revenue earnings, costs, gross profit, and net
profit to identify the profit and loss in our business in a 24-month business operation period.

Our primary revenue comes from providing products and supplies for local retail stores and
supermarkets. Moreover, it also comes from our partnership with cleaning companies and party
organizations. We estimated and reported our expenses through three main sectors which are the
cost of goods sold (COGS), fixed costs of rent and insurance, and other costs which include
marketing costs, office supplies, salary, and utilities. These are the expenses that are required to
operate this business project. Our cost of goods sold is calculated and priced based on the
variable cost because we get our products manufactured in China; therefore, the prices change
according to the amount we order.

According to our pro forma financial, our inventory in the first launch would be 10,000 units of
our product ordered from the manufacturing factories in China. We would do a soft launch and
we are estimated to lose between $2,000 to $5,600 in the first 3 months of launching. However,
after the first 3 months in operation, we would increase our inventory to 40,000 units per order
because we would want to save our expenses in shipping since we estimated that the 40,000 units
would last 6 months. During the first 8 months of operation, we would rapidly increase our cost
of marketing month by month because we want to boost our sales, and brand reputation, and
create customer loyalty. Moreover, the marketing expense would provide a vision and adaptation
for our potential clients to adapt to our new unique way of cleaning by using the tablets.
Meanwhile, the expense of salary also increases due to the need for more staff and labor work to
provide the best service for our consumers. Therefore, we would spend between $30,000 to
$32,000 in costs per month while the earnings are only between $26,000 to $28,000 in the first
eight months.
Based on our calculations, after 8 months of loss, we would eventually start earning our “time to
first profit” which is in the ninth month. We believe that we will reach our breakeven point in
September 2024 because of our brand identity, and reputation which builds the trust and
recognition from the public that will eventually increase our sales in retail stores and
supermarkets. Moreover, the advertisements and increase in consumer usage would lead us to
build stronger relations with other cleaning companies that we can partner with and supply our
products to. However, after reaching the breakeven point we would significantly increase our
supplies to over 80,000 units and increase our costs to over $42,000 to $66,000 per month
because we want to keep our brand reputation stable and increase our consumer loyalty by
creating more marketing campaigns and providing more staffs for public services and labor work
to satisfy our consumers while keeping the business operation stable according to plans.

According to our P&L calculations, we would project a loss in February 2025 due to the Chinese
New Year because there might be a lack of inventory stock and other technical problems from
our manufacturer in China. However, after the loss, we would expect to increase our next order
to over 120,000 units because we want to ensure stock availability for our consumers and create
more sales for the company. Meanwhile, our expenses would also increase because we would
spend on marketing campaigns, and creating promotions to build a stronger relationship with the
consumers. After that, the company is projected to have a stable net profit from $24,000 to
$29,000 and income from sales with earnings of $110,000 to $143,000 in revenue while
maintaining the costs and increasing the inventory level to 150,000 units per 6-month order.

Therefore, our “first time to profit” would be after 9 months of business operation and we would
estimate to have an increase of income throughout the years while maintaining our costs
according to the amount we earned.
Funding Requirements & Ownership/Equity Split
This should include a valuation of your idea. Be specific about how much equity you need
to sell in order to raise enough funds to launch.

Our cleaning business is valued at $215,190. In order to know our valuation, we studied and
calculated according to a method by using a multiple of revenue. The method involves
multiplying our business's annual revenue by a certain multiple to arrive at a valuation. The
multiple we use depends on several factors including the valuation of the cleaning industry, our
business’s stage, and profitability. Moreover, we calculated our seller’s discretionary earnings
(SDE) based on adjustments from EBITDA, Non-recurring Expenses, and Non-related Business
Income and Expenses which resulted in $29,758.80 per month. Based on the data from
Viabeacon, cleaning product businesses with less than $500,000 in gross revenue have a multiple
between 1.5 and 2x. Since we earned over $143,460 according to our pro forma financial report,
we would have a multiple of 1.5x. Therefore, our business valuation would be $143,000 x 1.5
which is $215,190.

To successfully operate our business’s stages and further expand our brand valuation and loyalty,
we would need to sell a total equity of 30%. We gathered the information for our needed funds
through several factors. Firstly, an estimation of the startup cost which is associated with the
costs of starting the business, such as product development, marketing, and hiring staff.
Secondly, we have to know the funds needed for our launch and according to our pro forma
financial report, we need to raise over $66,000 to raise enough funds to launch our project. The
funds include manufacturing costs, fixed costs such as rent, and insurance, and other costs such
as marketing, office supplies, salary, and utilities. Thirdly, we calculated our pre-money
valuation which is stated in the financial report with a revenue of $143,190 and a net profit of
$29,000 per month in 24 months progress. Therefore, since we know the funds needed for our
project launch and the other essential data, 30% is the total equity that we would offer to our
investors and shareholders.