BUSINESS PLAN

PRESENTED BY-GROUP:3

ATUL KUMAR KARN ---------------------------- Q1703A19

DEEPIKA BHAGAT ------------------------------ Q1703A13

DEEPKAMAL KAUR ----------------------------- Q1703A11

MANDEEP SINGH ------------------------------ Q1704A14

PRIYANKA GUPTA ------------------------------ Q1703A06

RAMANJEET KAUR ---------------------- ------- Q1703A14

CONTENTS
 BUSINESS PLAN (GENERAL INFORMATION)
 FEASIBILITY ANALYSIS
 MARKETING PLAN
 OPERATIONS PLAN
 HR PLAN
 FINANCIAL PLAN
 SUMMARY

$25,000,000

$20,000,000

$15,000,000
Sales
Gross Margin
$10,000,000 Net Profit

$5,000,000

$0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
OBJECTIVES
 Sales revenue should be 200 crores for the first year.
 Establish long term relationships with suppliers of
tyres and seat makers.
 Breakeven within two years of business.
 Net profit margin should be 10% in first year and
increase it to 14% in second year achieving
operational efficiency
MISSION

 “To build a solar car, to benefit the mankind and

environment with long term sustainability,
transforming the way this world moves with
innovation.
VISION
 To be numero uno solar car company, keeping
customers and environmental sustainability up front
OUR BUSINESS IDEA
SOLAR WALKING CAR
SOLAR WALKING CAR

 PRODUCT NAME: SUNSHINE

 TAGLINE: “Move
freely and move free, Its Sunshine’s promise”
SOLAR ENERGY AND OUR
IDEA
 Developing a solar energy driven car
 Solar walking cars combine technology typically
used in the aerospace, bicycle, alternative
energy and automotive industries.
 Solar cars are powered by the sun's energy. In fact,
51% of sunlight actually enters the Earth's
atmosphere.
PRODUCT SUMMARY
 Suntech solar private limited will be selling two versions of
solar walking car with top speed of 40KMPH (A) and
50KMPS (B). The price will be 1 lac for A version and 1.3 lac
for B version.
 Product Description
 Solar car includes the following components along with
repective cost:
 Solar Array and Power trackers : 40000
 Batteries : 6000
 Motor & Controller : 5000
 Chassis, Seats and other components : 15000 
 Tires, Brakes and Hubs : 10000
PROPOSED DESIGN
LOGO AND SYMBOL

 SUNSHINE represents the

product name and act as symbol.

 The middle circle represents the

sun.

 The orange and yellow colour of

the sun represents the sun rays.
FEASIBILITY ANALYSIS
WHAT MAKES OUR SOLAR
CAR FEASIBLE
 Financial analysis (Profitable Business????)
 1000 WATTS = 1.341 horsepower
 Solar panel cost per watt is around $1 without
subsidy
 cost is roughly 50000 INR of solar panel alone for
1000 watt (1.341)
 International Manufacturers of solar panel
 Shanghai Tongjian Shike Solar Energy Co., Ltd.
($0.80-1.20 per watt)
 Jiaxing Feiya Lighting Electrical Co., Ltd. ($1.20-
1.50 per watt)
Continued…..
 Other equipments..
 Electrical grid (15000 INR)
 Battery (5000)
 Tyres, seats,body (30000)
BUSINESS PLAN(GENERAL
INFORMATION)
FUNCTIONAL AREA REPORTS

There are four essential elements required to test

whether or not a potential business idea is feasible:

Marketing


Operations


HR


Finance

MARKETING PLAN
Market research will involve

 What is the product and/or service that is the basis

for the business?

 Who is the customer likely to be?

 What is the benefit of your product/service to the

customer?

 How will the benefit be delivered?

CONTENTS

 Product Features
 STP of Market
 Market Reasearch
 SWOT analysis
 Competitive Analysis
 Marketing tools and strategy
PRODUCT FEATURES
 Shape and design
 Costing
 Weight capacity

KEY ADVANTAGES
 No running cost
 No registration required
 Reduced license requirements
 Environment friendly
 Using alternative source of energy
 No pollution certificate and insurance liability
SEGMENTATION,TARGETING,POSITIONING

SEGMENTATION TARGETING

 Geographic segmentation
 Target customer: Middle class

• Weather  Differentiated targeting

• Location  Target-market: rural and semi-

urban customers.
 Demographic segmentation
POSITIONING
• Income based(middle class)
 Small House hold car
 Behavioral segmentation
 Substitute
SWOT ANALYSIS
Strengths
 Eco friendly
 No running cost
 Green project
Weaknesses
 Cloudy days (can be overcome by electrical additions)
 Top speed 30-50 kms/h (two versions)
 Max run 30-40 kms after one charging
Opportunities
 First mover
 High demand for eco friendly projects
 Subsidized solar panels
Threat
 Easily imitable.
MAIN COMPETITORS IN SOLAR CAR
INDUSTRY

 They are not exactly the competitors because they

are developing racing and high speed solar cars. But
we are targeting on the solar walking car which is
quite different from them:
 SUNRAYCER
 ALPHA CENTAURI
 AURORA
 ONGOING SOLAR PROJECTS
BUSINESS STRATEGY

 BLUE OCEAN STRATEGY

 A NEW PRODUCT IN EXISTING MARKET
 DRIVEN BY INNOVATION AND PRODUCT LEADERSHIP
MEDIA TO BE USED
 NEWSPAPER ADVERTISEMENT
 BUSINESS MAGAZINES
 TV AD
 RADIO AD
MARKETING TOOLS
LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR:

PRE-LAUNCH: ROAD SHOW

LAUNCH: TEST DRIVE
POST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES

MARKETING MEDIUM:

The Hindu, Times of India

CNBC AWAAZ,STAR NEWS.
HR AND OPERATIONS PLAN
OF A SOLAR WALKING CAR
“SUNSHINE”
Operations plan
 Market research is prerequisite
 A hypothetical data is assumed (can’t spend money
in real )
 Operational plan will be based upon this research
for demand of such products in the market
 Pilot testing will be done with not full setup for
meeting the demand
 Demand is assumed to be 2000 cars in first month
based on research.
Plant
 Smaller setup
 10 acre land near Jalandhar area
 Cost will be around 5 crores
 Suppliers are available here ( A similar company
speedways is operating here)
 Assembly line, flooring, building and other
infrastructure will add around 8 crore ( based upon
speedways experience)
LEGAL AND ENVIRONMENTAL
FEASIBILITY
 A manufacturing unit for solar car is legally possible

 Rather, Indian government will support a

environmental friendly venture

 Company will get itself registered as private limited

company, raising funds from venture capitalist and
owner’s or director’s fund
LEGAL CONSTRAINTS
 No direct legal constraints can be there
 Will be a private limited company under company act
1939
 Board of directors will include founder members
Setting up a private limited company
Procedure and mechanics
INCORPORATION OF COMPANY

Step 1 : Application For DIN

 The concept of a Director Identification Number

(DIN) has been introduced for the first time with
the insertion of Sections 266A to 266G of
Companies (Amendment) Act, 2006.

 We need to file eForm DIN-1 in order to obtain

DIN.
Step 2 : Acquire/ Register DSC
 Acquire DSC -A licensed Certifying Authority (CA)

issues the digital signature.

 Register DSC -Role check for Indian companies is to

be implemented in the MCA application.

 Role check can be performed only after the

signatories have registered their Digital signature

certificates (DSC) with MCA.
Step 3 : New User Registration
 To file an eForm or to avail any paid service on MCA

portal, we are first required to register ourselves as a

user in the relevant user category, such as registered
and business user.
Step 4 : Incorporate a Company
 Apply for the name of the company[ Suntech autos

Pvt. Ltd.] to be registered by filing Form1A for the

same.
DOCUMENT REQUIRED:

 Form 1 : Application or declaration for incorporation of a

company
 Form 32 : Particulars of appointment of managing director,
directors, manager and secretary and the changes among
them or consent of candidate to act as a managing director or
director or manager or secretary of a company and/ or
undertaking to take and pay for qualification shares.
 Once the form has been approved by the concerned official
of the Ministry, you will receive an email regarding the same
and the status of the form will get changed to Approved.
ROC OFFICE:
PUNJAB, CHANDIGARH & HIMACHAL
PRADESH

Dr. RAJ SINGH

CORPORATE BHAWAN,PLOT NO.4 B,
SECTOR 27 B,MADHYA MARG,
CHANDIGARH - 160019
PHONE: 0172-2639415,2639416
FAX: 0172-2639416
roc.chandigarh@mca.gov.in
Other legal compliance:
 Validity period of the Name approved:
With effect from 24th July, 2011,the approved name
is valid for a period of 60 days from the date of
approval.If,the proposed company is not
incorporated within such period,the name shall be
lapsed and will be available for other applicants.
Minimum number of directors required to form a
company:-
Minimum no. of directors for Private Limited
Company: Two
Minimum Paid-up Capital at the time of
registration :-
For Private Limited Company: Rs.1,00,000/-
Fees
Other Important aspects
 Banker to the firm (for credit period and short term
loan advancements)
 Layout will include a assembly line
 It will include various component to be mounted
 All these component will form the part of engineers
 Skilled workers and supervisor will work at this
functional part
 Board of directors

Raman Deepika Priyanka Deepkamal Mandeep Atul Kumar

Grewal Bhagat Gupta Sachdeva Bhullar Karn
Executive Chief Marketing HR director Managing Chief
director operating Head PSR : 10% director executive
PSR : 10% officer PSR : 10% and CFO officer (CEO)
(COO) PSR : 10% PSR : 10%
PSR :
10%
BOD continued….
 Private company: ownership lies with BOD
 Fund raising : venture capitalist, loans advanced by
directors, loans from banks
 PSR = profit sharing ratio
 60% with owners
 35% with venture capitalist
COMPONENTS INCLUDE
 1. Solar Array and Power trackers
 2. Batteries
 3. Motor & Controller
 4. Instrumentation
 5. Steering and suspension
 6. Brakes
 7. Tires and Hubs
1. Controller. 2. fans 3. power cable
4. AC motor 5. DC power cable
Cost of production per car
S.NO COMPONENT COST( in INR)
1 Solar Array and Power trackers 20000
2 Batteries 6000
3 Motor & Controller 10000
4 Instrumentation (chassis) 20000
5 Steering and suspension 10000
6 Brakes , Tires and Hubs 6000
7 Other components 4000
MOTORS AND
CONTROLLERS

 Choosing a motor depend on how much power it has.

Controllers usually drive a particular motor. We will use the
brushless motors because these will increase the efficiency of

motor upto94-99 percent.

 STEERING AND
SUSPENSION
 Front wheel steering as it tends to be more stable and safer.
 In order to make proper suspension it will be soft enough to protect the
car and solar array from unnecessary jolts and firm enough to provide a
stable ride
DESIGN DIMENSIONS

 Following are the design dimensions we set for

“SUNSHINE”: 
Position Length (LTR) or Height from the ground 
Entire frame  5.8 m 
Wheels 25 cm diameter, 10 cm thickness 
Driver cabin height 90 cm 
Full height 1.48m 
Tail length 3.4m
HR plan
 Will require a full fledge human resource even
during initial setup
 Organizational hierarchy is given on next slide
ORGANIZATIONAL CHART

CEO & PRESIDENT

VICE PRESIDENT

FACTORY GM
EXECUTIVE DIRECTOR
PRODUCTION DIRECTOR SALES DIRECTOR
JOB DESCRIPTION
JOB TITLE QUALIFICAT KEY SKILLS EXPERIENC SALARY
ION REQUIRED E OFFERED
REQUIRED
CEO/ MBA executive Leadership, 10-15 years Rs. 1,00,000
PRESIDENT Team building,
project
management,
communication
skills

VICE MBA executive Management 8-10 years 80,000

PRESIDENT skills in
requisites,
leadership,
communication
skills

EXECUTIVE MBA executive Management of 5-8 years 65,000

DIRECTOR HR deptt,
Quality and
Operations
JOB TITLE QUALIFICATI KEY EXPERIENC SALARY
ON SKILLS E REQUIRED OFFERED
REQUIRED

FACTORY GM MBA Training, 4-5 years 50,000

Selecting,
Motivating
plant
supervisory

PRODUCTIO MBA Practical 4-5 years 50,000

N DIRECTOR (operations) knowledge of
working with
production
team

SALES MBA Efficient 4-5 years 50,000

DIRECTOR (marketing) management
of sales team,
purchasing &
accounts deptt
LEAVE POLICY
 Earned leave: 18 per year (for permanent
employee)
 Casual leave: 12 per year (@1 per month)
 Sick or medical leave:
 Temporary employee : 10 days (can extend upto
two weeks
 Permanent employee : 15-18 days ( max 3 weeks in
continuum)
FINANCIAL PLAN
INITIAL INVESTMENT

Start-up
   
Requirements  
   
Start-up Expenses  
Legal $5,000
Insurance $10,000
Rent $5,000
Computer $10,000
Other $100
Total Start-up Expenses $30,100
   
Start-up Assets  
Cash Required $200,000
Start-up Inventory $30,000
Other Current Assets $10,000
Long-term Assets $2,000,000
Total Assets $2,240,000
   
Total Requirements $2,270,100
$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Expenses Assets Investment Loans
Sales forecast
Sales Forecast
  FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Unit Sales          
Version A 2,000 2,900 5,000 6,500 7,000
Version B 1,500 2,200 3,000 3,500 4,000
Total Unit Sales 3,500 5,100 8,000 10,000 11,000
           
Unit Prices FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Version A $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
Version B $2,600.00 $2,600.00 $2,000.00 $2,000.00 $2,000.00
           
Sales          
Version A $4,000,00 $5,800,00 $10,000,0 $13,000,0 $14,000,0
0 0 00 00 00
Version B $3,900,00 $5,720,00 $6,000,00 $7,000,00 $8,000,00
0 0 0 0 0
Total Sales $7,900,00 $11,520,00 $16,000,0 $20,000,0 $22,000,0
0 0 00 00 00
           
Direct Unit Costs FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Version A $1,300.00 $1,300.00 $1,300.00 $1,300.00 $1,300.00
Version B $1,560.00 $1,560.00 $1,200.00 $1,200.00 $1,200.00
           
Direct Cost of Sales          
Version A $2,600,00 $3,770,00 $6,500,00 $8,450,00 $9,100,00
0 0 0 0 0
Version B $2,340,00 $3,432,00 $3,600,00 $4,200,00 $4,800,00
0 0 0 0 0
Subtotal Direct Cost of Sales $4,940,00 $7,202,00 $10,100,0 $12,650,0 $13,900,0
0 0 00 00 00
Yearly Sales

$25,000,000

$20,000,000

$15,000,000
Version A
Version B
$10,000,000

$5,000,000

$0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Key financial Indicators
3.0

2.5

2.0

1.5
FY 2013
1.0 FY 2014
FY 2015
0.5
FY 2016
0.0 FY 2017
Break Even Analysis

Break-even Analysis

   

Monthly Units Break-even 32

Monthly Revenue Break-even $72,506

   

Assumptions:  

Average Per-Unit Revenue $2,257.14

Average Per-Unit Variable Cost $1,411.43

Estimated Monthly Fixed Cost $27,167

 BE continued…

$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
($30,000)

0 10 20 30 40 50
Monthly break-even point

Break-even point = where line intersects with 0

Pro Forma Profit and Loss
  FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Sales $7,900,000 $11,520,000 $16,000,000 $20,000,000 $22,000,000

Direct Costs of Goods $4,940,000 $7,202,000 $10,100,000 $12,650,000 $13,900,000

Production Payroll $115,000 $128,000 $141,000 $152,000 $154,000

Other Costs of Goods $20,000 $22,000 $23,000 $25,000 $30,000
  ------------ ------------ ------------ ------------ ------------
Cost of Goods Sold $5,075,000 $7,352,000 $10,264,000 $12,827,000 $14,084,000

           
Gross Margin $2,825,000 $4,168,000 $5,736,000 $7,173,000 $7,916,000
Gross Margin % 35.76% 36.18% 35.85% 35.87% 35.98%
           
Operating Expenses          
           
Sales and Marketing Expenses          

Sales and Marketing Payroll $130,000 $160,000 $180,000 $195,000 $210,000

Advertising/Promotion $20,000 $22,000 $25,000 $28,000 $30,000

Other Sales and Marketing Expenses $30,000 $35,000 $37,000 $40,000 $45,000

  ------------ ------------ ------------ ------------ ------------

Total Sales and Marketing Expenses $180,000 $217,000 $242,000 $263,000 $285,000

Sales and Marketing % 2.28% 1.88% 1.51% 1.32% 1.30%

           
General and Administrative Expenses          

General and Administrative Payroll $100,000 $120,000 $130,000 $140,000 $150,000

Marketing/Promotion $3,000 $3,200 $3,600 $3,700 $4,000

Depreciation $5,000 $6,000 $7,000 $8,000 $9,000
Rent $25,000 $30,000 $35,000 $40,000 $45,000
Other General and Administrative Expenses $7,000 $7,500 $8,000 $9,000 $10,000

  ------------ ------------ ------------ ------------ ------------

Total General and Administrative Expenses $140,000 $166,700 $183,600 $200,700 $218,000

General and Administrative % 1.77% 1.45% 1.15% 1.00% 0.99%

           
Other Expenses:          
Other Payroll $0 $0 $0 $0 $0
Consultants $5,000 $6,000 $7,000 $8,000 $9,000
Other Expenses $1,000 $1,200 $1,500 $1,700 $1,800
  ------------ ------------ ------------ ------------ ------------
Total Other Expenses $6,000 $7,200 $8,500 $9,700 $10,800
Other % 0.08% 0.06% 0.05% 0.05% 0.05%
  ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $326,000 $390,900 $434,100 $473,400 $513,800

           
Profit Before Interest and Taxes $2,499,000 $3,777,100 $5,301,900 $6,699,600 $7,402,200

EBITDA $2,504,000 $3,783,100 $5,308,900 $6,707,600 $7,411,200

Interest Expense $221,510 $221,510 $221,510 $221,510 $221,510
Taxes Incurred $683,247 $1,066,677 $1,524,117 $1,943,427 $2,154,207
           
Net Profit $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483
Net Profit/Sales 20.18% 21.61% 22.23% 22.67% 22.85%
Profit Yearly

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Gross Margin Yearly

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Projected Cash Flow
Pro Forma Cash Flow
  FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Cash Received          
           
Cash from Operations          
Cash Sales $5,925,000 $8,640,000 $12,000,000 $15,000,000 $16,500,000
Cash from Receivables $1,651,319 $2,731,681 $3,816,444 $4,836,111 $5,418,056
Subtotal Cash from Operations $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056
           
Additional Cash Received          

Subtotal Cash Received $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056

           
Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
           
Expenditures from Operations          
Cash Spending $345,000 $408,000 $451,000 $487,000 $514,000
Bill Payments $5,907,654 $8,591,202 $11,916,404 $14,937,998 $16,442,714
Subtotal Spent on Operations $6,252,654 $8,999,202 $12,367,404 $15,424,998 $16,956,714
           
Pro Forma Balance Sheet
  FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Assets          
           

Projected Balance
Current Assets          
Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639

Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389

Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320

           
Long-term Assets          
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000

Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000

Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000

Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

           
Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
           
Current Liabilities          
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000

Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745

           
Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100

Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845

           
Paid-in Capital $0 $0 $0 $0 $0
Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992

Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483

Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475

Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

           
Net Worth $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Pro Forma Balance Sheet
  FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Assets          
           
Current Assets          
Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639

Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389

Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320

           
Long-term Assets          
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000

Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000

Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000

Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

           
Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
           
Current Liabilities          
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000

Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745

           
Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100

Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845

           
Paid-in Capital $0 $0 $0 $0 $0
Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992

Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483

Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475

Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

           
Net Worth $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Investment Analysis
  Start FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Ending Valuation
Valuation $0 $0 $0 $0 $0 $17,591,000

Combination as Income $0 $0 $0 $0 $0 $17,591,000

Stream

Percent Equity Acquired 35%          

Net Present Value (NPV) $9,929,661          

             
Assumptions            

Discount Rate 10.00%          

Valuation Earnings Multiple   10 10 10 10 10

Valuation Sales Multiple   2 2 2 2 2

             

Calculated Earnings-based   $15,940,000 $24,890,000 $35,560,000 $45,350,000 $50,260,000

Valuation

Calculated Sales-based   $15,800,000 $23,040,000 $32,000,000 $40,000,000 $44,000,000

Valuation

Calculated Average Valuation   $15,870,000 $23,965,000 $33,780,000 $42,675,000 $47,130,000

Justation or Payback period

Payback
             
             
Projected Payback            
Calculation
  Investment FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Investment $500,000          
Cash Returns by   $100,000 $100,000 $100,000 $100,000 $100,000
Year
Combination as ($500,000) $100,000 $100,000 $100,000 $100,000 $100,000
Income Stream
Cumulative Net ($500,000) ($400,000) ($300,000) ($200,000) ($100,000) $0
Cash Flow to
Investors
Payback Period 5 years          
Payback cont…
$500,000

$400,000

$300,000

$200,000

$100,000

$0

($100,000)

($200,000)

($300,000)

($400,000)
THANK YOU……..