Business Plan for Bathtub Refurbishing and Refinishing

VIEWS: 88 PAGES: 31

More Info
									This Business Plan for a Bathtub Refurbishing and Refinishing business allows
entrepreneurs or business owners to create a comprehensive and professional business
plan. This template form allows a business to outline the company's objectives and
detail both current company information as well as any past performance. Companies
should include a complete market analysis in their plan to help showcase why their
business strategy will be effective in the market. Future company plans, including
production targets, management strategy, and financial forecasting, should be used to
demonstrate and confirm that the company's short-term and long-term objective can
and will be met. This model plan can be customized to best fit the unique needs of any
entrepreneur or owner that is seeking to create a strong business plan.
                                    [INSERT IMAGE/LOGO]




                                COMPANY NAME

                                      ADDRESS
                                CITY, STATE, ZIP CODE
                                          Tel.
                                          Fax:
                                         Email:

                                  BUSINESS PLAN




© Copyright 2012 Docstoc Inc.                             1
                                      Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of 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 COMPANY
NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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




© Copyright 2012 Docstoc Inc.                                                      2
                                                                  Table of Contents



1.0 Executive Summary .............................................................................................................................. 1
   1.1 Objectives ......................................................................................................................................... 1
   1.2 Mission.............................................................................................................................................. 2
   1.3 Keys to Success................................................................................................................................. 2
2.0 Company Summary .............................................................................................................................. 2
   2.1 Company Ownership ........................................................................................................................ 2
   2.2 Company History .............................................................................................................................. 2
      Table: Past Performance ..................................................................................................................... 3
3.0 Services ................................................................................................................................................. 4
4.0 Market Analysis Summary ................................................................................................................... 4
   4.1 Market Segmentation ........................................................................................................................ 5
      Table: Market Analysis ....................................................................................................................... 6
   4.2 Target Market Segment Strategy ...................................................................................................... 6
   4.3 Service Business Analysis ................................................................................................................ 7
      4.3.1 Competition and Buying Patterns .............................................................................................. 7
5.0 Strategy and Implementation Summary................................................................................................ 7
   5.1 Competitive Edge.............................................................................................................................. 7
   5.2 Marketing Strategy............................................................................................................................ 7
   5.3 Sales Strategy .................................................................................................................................... 8
      5.3.1 Sales Forecast............................................................................................................................. 8
        Table: Sales Forecast.................................................................................................................. 8
   5.4 Milestones ....................................................................................................................................... 10
      Table: Milestones .............................................................................................................................. 10
6.0 Management Summary ....................................................................................................................... 10
   6.1 Personnel Plan................................................................................................................................. 11
      Table: Personnel................................................................................................................................ 11
7.0 Financial Plan...................................................................................................................................... 11
   7.1 Important Assumptions ................................................................................................................... 11
   7.2 Break-even Analysis ....................................................................................................................... 12
      Table: Break-even Analysis .............................................................................................................. 12
   7.3 Projected Profit and Loss ................................................................................................................ 13
      Table: Profit and Loss ....................................................................................................................... 13
   7.4 Projected Cash Flow ....................................................................................................................... 15
      Table: Cash Flow .............................................................................................................................. 16
   7.5 Projected Balance Sheet .................................................................................................................. 17
      Table: Balance Sheet......................................................................................................................... 18
   7.6 Business Ratios ............................................................................................................................... 19
      Table: Ratios ..................................................................................................................................... 19




                                                                                                                                                     Page 1
                                               COMPANY NAME




1.0 Executive Summary

   COMPANY NAME is a refinishing and repair company to both clients in the residential and commercial
   markets. The company is currently planning an expansion into bathroom and kitchen remodeling, and walk-in
   bathtubs for elderly and disabled.

   [INSERT CONTACT INFO]

   Established Services:

                 1.   Tub and countertop Refinish
                 2.   Warranty tub and whirlpool Repair
                 3.   Whirlpool Conversion
                 4.   Bathtub Liners


   New Services:
              1.     Tub Replacement
                    a. Porcelain bathtubs
                    b. Ceramic Tile walls
                    c.   Sentrel Walls
                    d. Trustone Walls
                    e.   Cultured Marble Walls
                 2. Walk-in Bathtub Sales and Installation




1.1 Objectives

   1. To provide bath restoration services for insurance claims.

   2. To help people transform their home and baths when age or handicap creates special needs.

   3. To expand the company to be the leader in the bath restoration market.
                                                                                                     Page 1
                                              COMPANY NAME




1.2 Mission

   COMPANY NAME aims to offer safe and secure services to customers that want to modify their bathtubs to
   accommodate their needs. What makes the company unique is that it provides several services that solve
   bathtub issues common in residential and commercial settings. Refinishing or painting, a bathtub is a daily
   occurrence for COMPANY NAME. Repairs to new bathtubs can be full time in booms for the company but
   very part time in downturns. COMPANY NAME wants to ensure that every customer has the best service
   and end product in their care.

1.3 Keys to Success

   Keys to success for COMPANY NAME will include:

   1.   Maintaining a reputable and untarnished reputation in the community.
   2.   Quality care.
   3.   Competitive product and pricing.
   4.   Flexible hours.

2.0 Company Summary

   COMPANY NAME is a Limited Liability Corporation managed by two partners, OWNER’S NAME. OWNER’S
   NAME has extensive experience in the bathtub refinishing industry and has maintained excellent reputations
   in this same community. In addition, these two partners are capable of handling the sales/management and
   finance/administration areas, respectively.

2.1 Company Ownership

   The company, COMPANY NAME, is a Limited Liability Corporation owned by OWNER’S NAME. The
   company was originally formed in 2004 and was changed to its current name COMPANY NAME on May
   17th, 2007.

2.2 Company History

   The owner of COMPANY NAME, OWNER’S NAME, has had 6 years experience in the bathtub repair,
   refinishing and replacement business. OWNER’S NAME is certified to provide services that help people
   transform their home and baths when age or handicap creates special needs. OWNER’S NAME is certified in
   lead abatement practices and is currently working on mold remediation certification. This will
   allow COMPANY NAME to pursue insurance claim restoration projects for baths and kitchens in the near
   future for clients.




                                                                                                      Page 2
                                              COMPANY NAME




Table: Past Performance

Past Performance
                                    2007        2008        2009
Sales                           $217,342    $315,635    $325,104
Gross Margin                    $217,342    $315,635    $325,104
Gross Margin %                  100.00%     100.00%     100.00%
Operating Expenses              $210,012    $281,265    $289,703

Balance Sheet
                                    2007        2008        2009

Current Assets
Cash                              $4,356      $2,178      $2,243
Other Current Assets                  $0          $0          $0
Total Current Assets              $4,356      $2,178      $2,243

Long-term Assets
Long-term Assets                 $97,368     $89,766     $92,459
Accumulated Depreciation         $11,575     $13,751     $14,164
Total Long-term Assets           $85,793     $76,015     $78,295

Total Assets                     $90,149     $78,193     $80,538

Current Liabilities
Accounts Payable                      $0          $0          $0
Current Borrowing                $31,735     $43,061     $41,339
Other Current Liabilities             $0          $0          $0
(interest free)
Total Current Liabilities        $31,735     $43,061     $41,339

Long-term Liabilities            $91,907     $73,758     $55,609
Total Liabilities               $123,642    $116,819     $96,948

Paid-in Capital                        $0          $0          $0
Retained Earnings               ($40,823)   ($72,997)   ($51,811)
Earnings                           $7,330     $34,371     $35,401
Total Capital                   ($33,493)   ($38,626)   ($16,410)

Total Capital and Liabilities    $90,149     $78,193     $80,538

Other Inputs
Payment Days                           0           0           0




                                                                    Page 3
                                                 COMPANY NAME




3.0 Services

   COMPANY NAME will provide customers with a wholesome and honest service that provides bath refinishing
   and refurbishing at affordable prices.

   COMPANY NAME's current established services are:

                1.   Tub and countertop Refinish
                2.   Warranty tub and whirlpool Repair
                3.   Whirlpool Conversion
                4.   Bathtub Liners


4.0 Market Analysis Summary

   Baton Rouge is the capital and second-largest city of Louisiana. It is located in East Baton Rouge Parish and
   has an estimated population of 227,017. The metropolitan area, known as Greater Baton Rouge, has an
   estimated population of 774,327. The Baton Rouge-Pierre Part Combined Statistical Area, consisting of the
   Baton Rouge metropolitan area and Pierre Part micropolitan area, has a population of 797,208, making it the
   64th-largest urban area in the United States.

   Baton Rouge is located in the southeast portion of the state along the Mississippi River. It owes its historical
   importance to its site upon Istrouma Bluff, the first bluff upriver from the Mississippi River Delta, which
   protects the city’s residents from flooding and other natural disasters. In addition to this natural barrier, the city
   has built a levee system stretching from the bluff southward to protect the riverfront and low-lying agricultural
   areas.

   Baton Rouge is a major industrial and petrochemical center of the American South. The Port of Baton Rouge
   is the ninth largest in the United States in terms of tonnage shipped.

   The Baton Rouge region is called the "Capital Area."



                                                                                                                 Page 4
                                               COMPANY NAME




   As of the census of 2000, there were 227,818 people, 88,973 households, and 52,672 families residing in the
   city. The population density was 2,964.7 people per square mile (1,144.7/km²). There were 97,388 housing
   units at an average density of 1,267.3/sq mi (489.4/km²). The racial makeup of the city was 50.02% Black or
   African American, 45.70% White, 0.18% Native American, 2.62% Asian, 0.03% Pacific Islander, 0.49% from
   other races, and 0.96% from two or more races. Hispanic or Latino of any race was 1.72% of the population.

   Of all households, 28.1% had children under the age of 18 living with them, 35.8% were married couples
   living together, 19.0% had a female householder with no husband present, and 40.8% were non-families.
   31.7% of all households were made up of individuals and 8.6% had someone living alone who was 65 years
   of age or older. The average household size was 2.42 and the average family size was 3.12.

   In the city the population was spread out with 24.4% under the age of 18, 17.5% from 18 to 24, 27.2% from
   25 to 44, 19.4% from 45 to 64, and 11.4% who were 65 years of age or older. The median age was 30 years.
   For every 100 females there were 90.5 males. For every 100 females age 18 and over, there were 86.3
   males.

   The median income for a household in the city was $30,368, and the median income for a family was
   $40,266. Males had a median income of $34,893 versus $23,115 for females. The per capita income for the
   city was $18,512. About 18.0% of families and 24.0% of the population were below the poverty line, including
   31.4% of those under age 18 and 13.8% of those ages 65 or over.

   Bath tub refinishing and resurfacing is one of the bath tub remodeling businesses like window replacement
   and vinyl siding. There are numerous companies out there competing for this industry. Highland Bathworks,
   LLC feels that with the experience, the additional certifications earned by the owner, an expanded facility,
   updated equipment and high quality customer service will make the company stand out above all of the rest.

4.1 Market Segmentation

   The market for soft bath refinishing and resurfacing reflects the buyer's income bracket and standard of living
   in addition to the special needs and convenience for handicapped and senior citizens.

   Handicapped - This segment is for physically impaired individuals of all ages who need to have their bathtubs
   modified to accommodate their limited movement.

   Senior Citizens - This segment covers a much larger demographic. Refurbishing a bathtub for this market will
   make the customer feel independent by not having the need for assistance in and out of a standard bathtub.

   Other - This segment covers the average customer who just wants to add a custom touch to the bathroom
   interior.




                                                                                                          Page 5
                                                COMPANY NAME




Table: Market Analysis

Market
Analysis
                             2010       2011       2012       2013       2014
Potential          Growth                                                             CAGR
Customers
Handicapped            3%     11,391     11,733     12,085     12,448     12,821     3.00%
Senior Citizens       10%     25,971     28,568     31,425     34,568     38,025    10.00%
Other                  3%     68,345     70,395     72,507     74,682     76,922     3.00%
Total               4.85%    105,707    110,696    116,017    121,698    127,768     4.85%




4.2 Target Market Segment Strategy

    COMPANY NAME services the bathtub refinishing market segment. Bathtub refinishing is essentially
    spraying bathtub paint onto an old, worn out porcelain, fiberglass or acrylic bathtub that will bring back the
    luster and enhance the overall appearance.

    COMPANY NAME has recognized that its skills and quality capability, together with its small size, allow it to
    be perfectly positioned to compete in the higher end bathtub refinishing segment. A shift to this target market
    will improve profitability levels since this segment is much less price sensitive and provides greater margins.
    Furthermore, since the segment is relatively small and well connected, establishing a reputation among such
    clients will strengthen the existing word of mouth marketing strategy that the company has pursued in the
    past.




                                                                                                           Page 6
                                                COMPANY NAME




4.3 Service Business Analysis

   Most of the industry analysis is contained in the Competitive Comparison section to give the reader the idea
   of the competitive nature of the industry, its opportunities and threats, and the company's flexibility in pricing.
   COMPANY NAME exists in a purely competitive market that faces virtually unlimited competition and high
   demand. The ability of the company to differentiate its services or enter into a niche market is limited.
   COMPANY NAME will engage in a low-cost leadership strategy while maintaining a suitable level of quality.

4.3.1 Competition and Buying Patterns

   The key element in purchase decisions made at the COMPANY NAME client level is trust in the professional
   reputation and reliability of the bathtub refinishing company.

5.0 Strategy and Implementation Summary

   Image is a key factor in making in-roads into the higher echelons of bathtub refinishers and refacers. Their
   work is desirable because it is less price-sensitive. COMPANY NAME strategy is to lift its image, through
   advertising in the community and actively marketing a selected group of interior designers and construction
   companies located in close proximity to the company's target market area.

5.1 Competitive Edge

   COMPANY NAME seeks to establish a competitive edge in its new target market segment by increasing the
   level of customer contact and service that other competitors seem to oftentimes lack. The establishment of
   the previously mentioned work processes that will ensure greater service will strengthen the contacts that
   promote word of mouth marketing and networking.

5.2 Marketing Strategy

   The company's customers can come from all age groups, male and female, all races, and every income level
   and can be local residents or residents of the surrounding areas. That is why COMPANY NAME’s marketing
   plan started at the construction phase; by keeping in mind, if it looks good people will come. Thus the main
   factor to the company's success is simply that a person can find quality work and convenience once
   COMPANY NAME has completed the job.




                                                                                                              Page 7
                                                COMPANY NAME




5.3 Sales Strategy

    The marketing strategy discussed previously in this business plan will generate the desired sales. These
    sales will begin with a phone call to COMPANY NAME. It is a stated objective to transfer the administrative
    burden away from the owner, freeing up his time to meet with potential new individual and commercial
    clients. This means that someone else will be answering the incoming calls. This person must be carefully
    trained to recognize who must be called back immediately by the owner.

    In respect to the prospect list of clients, it is essential that a "salesman's" approach be adopted to insure an
    organized, orderly approach to each prospect. Notes need to be kept on each client. Follow-up and
    persistence will pay off.

    COMPANY NAME also believes that excellent quality end results and service will generate business through
    "word of mouth" referrals.

5.3.1 Sales Forecast

    See Sales Strategy.

Table: Sales Forecast

Sales Forecast
                                 2010          2011          2012
Sales
Refinishing                 $855,367     $881,028      $907,459
Repairs                     $384,920     $396,468      $408,362
Total Sales               $1,240,287    $1,277,496    $1,315,821

Direct Cost of Sales           2010          2011          2012
Cost of Goods Sold            $2,421        $2,494        $2,568
Advertising                  $10,984       $11,314       $11,653
Subtotal Direct Cost of      $13,405       $13,808       $14,221
Sales




                                                                                                            Page 8
COMPANY NAME




               Page 9
                                                  COMPANY NAME




5.4 Milestones

     The milestones for COMPANY NAME are shown in the following table and chart. The related budgets are
     included with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis
     that comes in Chapter 7 of this plan.

Table: Milestones

Milestones

Milestone                    Start    End Date       Budget      Manager    Department
                             Date

Building Expense         6/1/2010      1/1/2011     $30,000      INSERT          Owner
                                                                   NAME
Equipment Expense        6/1/2010      9/1/2010     $10,000      INSERT          Owner
                                                                   NAME
Utilities                6/1/2010    12/31/2010      $6,000      INSERT          Owner
                                                                   NAME
Advertising              6/1/2010    12/31/2010    $100,000      INSERT          Owner
                                                                   NAME
Phone/Fax                6/1/2010      9/1/2010      $6,000      INSERT          Owner
                                                                   NAME
Insurance                6/1/2010     10/1/2010     $15,000      INSERT          Owner
                                                                   NAME
Office Equipment         6/1/2010     10/1/2010     $10,000      INSERT          Owner
                                                                   NAME
Office Supplies          6/1/2010     10/1/2010      $5,000      INSERT          Owner
                                                                   NAME
Repairs/Maintenance      6/1/2010    12/31/2010     $10,000      INSERT          Owner
                                                                   NAME
Web Design               6/1/2010    10/31/2010      $1,000      INSERT          Owner
                                                                   NAME
Inventory                6/1/2010    10/31/2010     $13,000      INSERT          Owner
                                                                   NAME
Travel/Training          6/1/2010    12/31/2010      $5,000      INSERT          Owner
                                                                   NAME
Auto/Truck Expense       6/1/2010     9/30/2010     $20,000      INSERT          Owner
                                                                   NAME
Legal                    6/1/2010     10/1/2010      $5,000      INSERT          Owner
                                                                   NAME
Totals                                             $236,000


6.0 Management Summary

     The initial management team depends on the founders themselves, with little back-up. As COMPANY
     NAME grows, the company will take on additional consulting help, plus graphic/editorial, sales, and
     marketing.




                                                                                                           Page 10
                                            COMPANY NAME




6.1 Personnel Plan

    At the moment, OWNER’S NAME is the owner and operator of COMPANY NAME and currently hires
    independent contractors for the business. As the business grows and needs arise, Mr. Annis will hire
    additional personnel and independent contractors.

Table: Personnel

Personnel Plan
                        2010      2011      2012
Owner/Manager              $0        $0        $0
Independent           $34,405   $35,437   $36,500
Contractors
Total People                4         4         4

Total Payroll         $34,405   $35,437   $36,500


7.0 Financial Plan

    COMPANY NAME expects to receive grant funding in the amount of $311,000. This provides the bulk of the
    current financing required.

    The company's financial plan is based on conservative estimates and assumptions COMPANY NAME will
    need to plan on initial investment to make the financials work.

7.1 Important Assumptions

       COMPANY NAME assumes steady growth from good management, barring any unforeseen local or
        national disasters such as the economic slowdown seen by most of the country following the current
        recession and Hurricane Katrina tragedies.
       The company assumes adequate grant funding to sustain during start-up.




                                                                                                 Page 11
                                             COMPANY NAME




7.2 Break-even Analysis

   The Break-even Analysis is based on the average of the first-year figures for total sales and by operating
   expenses. These conservative assumptions make for a more accurate estimate of real risk.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-       $13,226
even

Assumptions:
Average Percent                  1%
Variable Cost
Estimated Monthly Fixed      $13,083
Cost




                                                                                                    Page 12
                                                 COMPANY NAME




7.3 Projected Profit and Loss

    Outlined below, and in the following table and chart, are some of the intrinsic facets of the projected profit and
    loss for COMPANY NAME.

Table: Profit and Loss

Pro Forma Profit and
Loss
                                   2010           2011          2012
Sales                        $1,240,287     $1,277,496    $1,315,821
Direct Cost of Sales            $13,405        $13,808       $14,221
Other Costs of Sales                 $0             $0            $0
Total Cost of Sales             $13,405        $13,808       $14,221

Gross Margin                 $1,226,882     $1,263,688    $1,301,600
Gross Margin %                  98.92%         98.92%        98.92%


Expenses
Payroll                          $34,405       $35,437       $36,500
Marketing/Promotion              $12,498            $0            $0
Depreciation                      $2,176        $2,285        $2,399
Contract Labor                   $49,608       $51,096       $52,629
Supplies                         $58,308       $60,057       $61,859

Total Operating Expenses        $156,995      $148,875      $153,387

Profit Before Interest and   $1,069,887     $1,114,813    $1,148,213
Taxes
EBITDA                       $1,072,063     $1,117,098    $1,150,612
 Interest Expense                $9,066         $7,954        $6,794
 Taxes Incurred               $318,246       $332,058       $342,426

Net Profit                      $742,575      $774,801      $798,993
Net Profit/Sales                 59.87%        60.65%        60.72%




                                                                                                             Page 13
COMPANY NAME




               Page 14
                                          COMPANY NAME




7.4 Projected Cash Flow

   The COMPANY NAME cash flow projection shows that provisions for ongoing expenses are adequate to
   meet the needs of the company as the business generates sufficient cash flow to support operations.




                                                                                              Page 15
                                            COMPANY NAME




Table: Cash Flow

Pro Forma Cash Flow
                                        2010         2011         2012
Cash Received

Cash from Operations
Cash Sales                         $1,240,287   $1,277,496   $1,315,821
Subtotal Cash from Operations      $1,240,287   $1,277,496   $1,315,821

Additional Cash Received
Sales Tax, VAT, HST/GST                   $0           $0           $0
Received
New Current Borrowing                     $0           $0           $0
New Other Liabilities (interest-          $0           $0           $0
free)
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             $311,000            $0           $0
Subtotal Cash Received             $1,551,287   $1,277,496   $1,315,821

Expenditures                            2010         2011         2012

Expenditures from Operations
Cash Spending                       $495,536     $500,410     $514,429
Bill Payments                             $0           $0           $0
Subtotal Spent on Operations        $495,536     $500,410     $514,429

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid              $0           $0           $0
Out
Principal Repayment of Current        $4,224       $4,224       $4,224
Borrowing
Other Liabilities Principal               $0           $0           $0
Repayment
Long-term Liabilities Principal       $7,380       $7,380       $7,380
Repayment
Purchase Other Current Assets        $38,000           $0           $0
Purchase Long-term Assets            $50,000           $0           $0
Dividends                                 $0           $0           $0
Subtotal Cash Spent                 $595,140     $512,014     $526,033

Net Cash Flow                       $956,147     $765,482     $789,788
Cash Balance                        $958,390    $1,723,872   $2,513,660




                                                                          Page 16
                                           COMPANY NAME




7.5 Projected Balance Sheet

   The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs of
   COMPANY NAME as the business generates sufficient cash flow to support operations.




                                                                                                Page 17
                                               COMPANY NAME




Table: Balance Sheet

Pro Forma Balance
Sheet
                               2010         2011         2012
Assets

Current Assets
Cash                       $958,390    $1,723,872   $2,513,660
Other Current Assets        $38,000       $38,000      $38,000
Total Current Assets       $996,390    $1,761,872   $2,551,660

Long-term Assets
Long-term Assets           $142,459     $142,459     $142,459
Accumulated                 $16,340      $18,625      $21,024
Depreciation
Total Long-term            $126,119     $123,834     $121,435
Assets
Total Assets              $1,122,509   $1,885,706   $2,673,095

Liabilities and Capital        2010         2011         2012

Current Liabilities
Accounts Payable                 $0           $0           $0
Current Borrowing           $37,115      $32,891      $28,667
Other Current                    $0           $0           $0
Liabilities
Subtotal Current            $37,115      $32,891      $28,667
Liabilities

Long-term Liabilities       $48,229      $40,849      $33,469
Total Liabilities           $85,344      $73,740      $62,136

Paid-in Capital            $311,000     $311,000     $311,000
Retained Earnings          ($16,410)    $726,165    $1,500,966
Earnings                   $742,575     $774,801     $798,993
Total Capital             $1,037,165   $1,811,966   $2,610,959
Total Liabilities and     $1,122,509   $1,885,706   $2,673,095
Capital

Net Worth                 $1,037,165   $1,811,966   $2,610,959




                                                                 Page 18
                                               COMPANY NAME




7.6 Business Ratios

    Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard
    Industrial Classification (SIC) Interior Construction and Remodelers, are shown for comparison.

Table: Ratios

Ratio Analysis
                                        2010         2011         2012        Industry
                                                                                Profile
Sales Growth                        281.50%         3.00%        3.00%         -2.88%

Percent of Total Assets
Other Current Assets                  3.39%        2.02%         1.42%        26.36%
Total Current Assets                 88.76%       93.43%        95.46%        77.28%
Long-term Assets                     11.24%        6.57%         4.54%        22.72%
Total Assets                        100.00%      100.00%       100.00%       100.00%

Current Liabilities                   3.31%         1.74%        1.07%         43.77%
Long-term Liabilities                 4.30%         2.17%        1.25%         12.37%
Total Liabilities                     7.60%         3.91%        2.32%         56.14%
Net Worth                            92.40%        96.09%       97.68%         43.86%

Percent of Sales
Sales                               100.00%      100.00%       100.00%       100.00%
Gross Margin                         98.92%       98.92%        98.92%        16.71%
Selling, General & Administrative    39.05%       38.27%        38.20%         5.14%
Expenses
Advertising Expenses                  1.01%         0.00%        0.00%          0.23%
Profit Before Interest and Taxes     86.26%        87.27%       87.26%          0.96%

Main Ratios
Current                                26.85         53.57        89.01           1.60
Quick                                  26.85         53.57        89.01           0.58
Total Debt to Total Assets            7.60%         3.91%        2.32%         58.63%
Pre-tax Return on Net Worth         102.28%        61.09%       43.72%          4.89%
Pre-tax Return on Assets             94.50%        58.70%       42.70%          2.02%




                                                                                                    Page 19
                                       COMPANY NAME




Additional Ratios              2010          2011         2012
Net Profit Margin            59.87%        60.65%       60.72%    n.a
Return on Equity             71.60%        42.76%       30.60%    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            1.10          0.68         0.49   n.a

Debt Ratios
Debt to Net Worth               0.08          0.04         0.02   n.a
Current Liab. to Liab.          0.43          0.45         0.46   n.a

Liquidity Ratios
Net Working Capital         $959,275    $1,728,981   $2,522,993   n.a
Interest Coverage             118.01        140.15       169.01   n.a

Additional Ratios
Assets to Sales                 0.91         1.48         2.03    n.a
Current Debt/Total Assets        3%           2%           1%     n.a
Acid Test                      26.85        53.57        89.01    n.a
Sales/Net Worth                 1.20         0.71         0.50    n.a
Dividend Payout                 0.00         0.00         0.00    n.a




                                                                        Page 20
                                                                        Appendix

Table: Sales Forecast

Sales Forecast
                                   Jan       Feb       Mar        Apr      May       Jun         Jul       Aug        Sep         Oct       Nov        Dec
Sales
Refinishing                     $40,000   $44,000   $48,400   $53,240   $58,564   $64,420    $70,862    $77,948    $85,743    $94,317   $103,749   $114,124
Repairs                         $18,000   $19,800   $21,780   $23,958   $26,354   $28,989    $31,888    $35,077    $38,585    $42,444    $46,688    $51,357
Total Sales                     $58,000   $63,800   $70,180   $77,198   $84,918   $93,409   $102,750   $113,025   $124,328   $136,761   $150,437   $165,481


Direct Cost of Sales               Jan       Feb       Mar       Apr       May       Jun         Jul       Aug        Sep         Oct        Nov        Dec
Cost of Goods Sold                $171      $176      $181      $186      $192      $198       $204       $210       $216       $222       $229       $236
Advertising                       $774      $797      $821      $846      $871      $897       $924       $952       $981      $1,010     $1,040     $1,071
Subtotal Direct Cost of Sales     $945      $973     $1,002    $1,032    $1,063    $1,095     $1,128     $1,162     $1,197     $1,232     $1,269     $1,307




                                                                                                                                                              Page 1
                                                              Appendix

Table: Personnel

Personnel Plan
                            Jan      Feb      Mar      Apr        May      Jun       Jul     Aug      Sep      Oct      Nov    Dec
Owner/Manager                $0       $0       $0       $0         $0       $0       $0       $0       $0       $0       $0     $0
Independent Contractors   $3,125   $3,125   $3,125   $3,125     $3,125   $3,125   $3,125   $3,125   $3,125   $3,125   $3,155    $0


Total People                  4        4        4        4          4        4        4        4        4        4        4      4


Total Payroll             $3,125   $3,125   $3,125   $3,125     $3,125   $3,125   $3,125   $3,125   $3,125   $3,125   $3,155    $0




                                                                                                                                     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                                    $58,000   $63,800   $70,180   $77,198   $84,918   $93,409   $102,750   $113,025   $124,328   $136,761   $150,437   $165,481
Direct Cost of Sales                       $945      $973     $1,002    $1,032    $1,063    $1,095     $1,128     $1,162     $1,197     $1,232     $1,269     $1,307
Other Costs of Sales                         $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Total Cost of Sales                        $945      $973     $1,002    $1,032    $1,063    $1,095     $1,128     $1,162     $1,197     $1,232     $1,269     $1,307


Gross Margin                             $57,055   $62,827   $69,178   $76,166   $83,855   $92,314   $101,622   $111,863   $123,131   $135,529   $149,168   $164,174
Gross Margin %                           98.37%    98.47%    98.57%    98.66%    98.75%    98.83%     98.90%     98.97%     99.04%     99.10%     99.16%     99.21%



Expenses
Payroll                                   $3,125    $3,125    $3,125    $3,125    $3,125    $3,125     $3,125     $3,125     $3,125     $3,125     $3,155        $0
Marketing/Promotion                       $2,083       $0     $2,083       $0     $2,083       $0      $2,083        $0      $2,083        $0      $2,083        $0
Depreciation                                 $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0      $2,176
Contract Labor                            $4,134    $4,134    $4,134    $4,134    $4,134    $4,134     $4,134     $4,134     $4,134     $4,134     $4,134     $4,134
Supplies                           15%    $4,859    $4,859    $4,859    $4,859    $4,859    $4,859     $4,859     $4,859     $4,859     $4,859     $4,859     $4,859


Total Operating Expenses                 $14,201   $12,118   $14,201   $12,118   $14,201   $12,118    $14,201    $12,118    $14,201    $12,118    $14,231    $11,169


Profit Before Interest and Taxes         $42,854   $50,709   $54,977   $64,048   $69,654   $80,196    $87,421    $99,745   $108,930   $123,411   $134,937   $153,005


EBITDA                                   $42,854   $50,709   $54,977   $64,048   $69,654   $80,196    $87,421    $99,745   $108,930   $123,411   $134,937   $155,181
 Interest Expense                          $800      $792      $784      $776      $768      $760       $751       $743       $735       $727       $719       $711
 Taxes Incurred                          $12,616   $14,975   $16,258   $18,982   $20,666   $23,831    $26,001    $29,700    $32,458    $36,805    $40,265    $45,688


Net Profit                               $29,438   $34,942   $37,935   $44,291   $48,220   $55,606    $60,669    $69,301    $75,736    $85,879    $93,952   $106,606
Net Profit/Sales                         50.76%    54.77%    54.05%    57.37%    56.78%    59.53%     59.04%     61.31%     60.92%     62.79%     62.45%     64.42%




                                                                                                                                                                  Page 3
                                                                                         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                                      $58,000   $63,800   $70,180   $77,198   $84,918   $93,409   $102,750   $113,025   $124,328   $136,761   $150,437   $165,481
Subtotal Cash from Operations                   $58,000   $63,800   $70,180   $77,198   $84,918   $93,409   $102,750   $113,025   $124,328   $136,761   $150,437   $165,481


Additional Cash Received
Sales Tax, VAT, HST/GST Received        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 (interest-free)               $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
New Long-term Liabilities                           $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Sales of Other Current Assets                       $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
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    $311,000        $0         $0         $0
Subtotal Cash Received                          $58,000   $63,800   $70,180   $77,198   $84,918   $93,409   $102,750   $113,025   $435,328   $136,761   $150,437   $165,481


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


Expenditures from Operations
Cash Spending                                   $28,562   $28,858   $32,245   $32,907   $36,698   $37,803    $42,081    $43,724    $48,592    $50,882    $56,485    $56,699
Bill Payments                                       $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Subtotal Spent on Operations                    $28,562   $28,858   $32,245   $32,907   $36,698   $37,803    $42,081    $43,724    $48,592    $50,882    $56,485    $56,699


Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                    $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Principal Repayment of Current                    $352      $352      $352      $352      $352      $352       $352       $352       $352       $352       $352       $352
Borrowing

Other Liabilities Principal Repayment               $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Long-term Liabilities Principal                   $615      $615      $615      $615      $615      $615       $615       $615       $615       $615       $615       $615
Repayment
Purchase Other Current Assets                       $0        $0        $0        $0        $0        $0         $0         $0         $0     $38,000        $0         $0
Purchase Long-term Assets                           $0        $0        $0        $0        $0        $0         $0         $0         $0     $50,000        $0         $0
Dividends                                           $0        $0        $0        $0        $0        $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent                             $29,529   $29,825   $33,212   $33,874   $37,665   $38,770    $43,048    $44,691    $49,559   $139,849    $57,452    $57,666

                                                                                                                                                                              Page 4
                                                            Appendix


Net Cash Flow   $28,471   $33,975    $36,968    $43,324    $47,253    $54,639    $59,702    $68,334   $385,769   ($3,088)    $92,985   $107,815
Cash Balance    $30,714   $64,689   $101,657   $144,981   $192,234   $246,873   $306,575   $374,909   $760,678   $757,589   $850,575   $958,390




                                                                                                                                                  Page 5
                                                                                                    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                                       $2,243    $30,714     $64,689    $101,657    $144,981    $192,234    $246,873    $306,575    $374,909    $760,678    $757,589     $850,575     $958,390
Other Current Assets                           $0         $0          $0          $0          $0          $0          $0          $0          $0          $0     $38,000      $38,000      $38,000
Total Current Assets                       $2,243    $30,714     $64,689    $101,657    $144,981    $192,234    $246,873    $306,575    $374,909    $760,678    $795,589     $888,575     $996,390

Long-term Assets
Long-term Assets                          $92,459    $92,459     $92,459     $92,459     $92,459     $92,459     $92,459     $92,459     $92,459     $92,459    $142,459     $142,459     $142,459
Accumulated Depreciation                  $14,164    $14,164     $14,164     $14,164     $14,164     $14,164     $14,164     $14,164     $14,164     $14,164     $14,164      $14,164      $16,340

Total Long-term Assets                    $78,295    $78,295     $78,295     $78,295     $78,295     $78,295     $78,295     $78,295     $78,295     $78,295    $128,295     $128,295     $126,119
Total Assets                              $80,538   $109,009    $142,984    $179,952    $223,276    $270,529    $325,168    $384,870    $453,204    $838,973    $923,884    $1,016,870   $1,122,509

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                         $41,339    $40,987     $40,635     $40,283     $39,931     $39,579     $39,227     $38,875     $38,523     $38,171     $37,819      $37,467      $37,115
Other Current Liabilities                      $0         $0          $0          $0          $0          $0          $0          $0          $0          $0          $0           $0           $0
Subtotal Current Liabilities              $41,339    $40,987     $40,635     $40,283     $39,931     $39,579     $39,227     $38,875     $38,523     $38,171     $37,819      $37,467      $37,115



Long-term Liabilities                     $55,609    $54,994     $54,379     $53,764     $53,149     $52,534     $51,919     $51,304     $50,689     $50,074     $49,459      $48,844      $48,229
Total Liabilities                         $96,948    $95,981     $95,014     $94,047     $93,080     $92,113     $91,146     $90,179     $89,212     $88,245     $87,278      $86,311      $85,344

Paid-in Capital                                $0          $0          $0          $0          $0          $0          $0          $0          $0   $311,000    $311,000     $311,000     $311,000
Retained Earnings                       ($51,811)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)   ($16,410)    ($16,410)    ($16,410)
Earnings                                  $35,401    $29,438     $64,380    $102,315    $146,606    $194,826    $250,432    $311,101    $380,402    $456,138    $542,016     $635,969     $742,575
Total Capital                           ($16,410)    $13,028     $47,970     $85,905    $130,196    $178,416    $234,022    $294,691    $363,992    $750,728    $836,606     $930,559    $1,037,165
Total Liabilities and Capital             $80,538   $109,009    $142,984    $179,952    $223,276    $270,529    $325,168    $384,870    $453,204    $838,973    $923,884    $1,016,870   $1,122,509



Net Worth                               ($16,410)    $13,028     $47,970     $85,905    $130,196    $178,416    $234,022    $294,691    $363,992    $750,728    $836,606     $930,559    $1,037,165




                                                                                                                                                                                                  Page 6
                                                               Appendix


								
To top