Business Plan for Casting Agency

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									This Business Plan for a Casting Agency 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, ST ZIP CODE
                     Phone: [INSERT NUMBER] • Fax: [INSERT NUMBER]

                                EMAIL: [INSERT EMAIL ADDRESS]




                                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 .................................................................................................................. 2
  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 ................................................................................................... 5
  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 ...................................................................................................... 8
  5.3 Sales Strategy ............................................................................................................ 8
     5.3.1 Sales Forecast ...................................................................................................... 9
       Table: Sales Forecast .................................................................................................. 9
  5.4 Milestones ................................................................................................................ 10
     Table: Milestones ........................................................................................................ 10
6.0 Management Summary ................................................................................................. 11
  6.1 Personnel Plan .......................................................................................................... 11
     Table: Personnel.......................................................................................................... 11
7.0 Financial Plan ............................................................................................................... 12
  7.1 Important Assumptions .............................................................................................. 12
  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 .................................................................................................. 16
     Table: Cash Flow ......................................................................................................... 16
  7.5 Projected Balance Sheet ............................................................................................. 17
     Table: Balance Sheet ................................................................................................... 17
  7.6 Business Ratios ......................................................................................................... 18
     Table: Ratios .............................................................................................................. 19




                                                                                                                              Page 1
                                       COMPANY NAME




1.0 Executive Summary

   COMPANY NAME is a leading Model/Casting Agency. The company has served clients since
   1981 throughout eastern Pennsylvania, New Jersey, Maryland, New York, Delaware, Virginia
   and Washington D.C. COMPANY NAME is proud to represent over 300 professional models,
   actor and actresses and over 900 promotional models from seven states, hired by clients both
   large and small for a wide variety of products.

   COMPANY NAME's is a professional model and casting agency providing both union and non-
   union talent for Print, Video, Television, Film, Industrial, Trade Shows, Marketing and
   Promotions. Also available are National Direct Marketing Teams that have been working since
   1994.




                                                                                        Page 1
                                           COMPANY NAME




1.1 Objectives

   COMPANY NAME seeks to be the top in its industry in Reading, Pennsylvania and surrounding
   areas within three years. The company seeks the following objectives within that three year
   period:

      To   be in the top three commercial photography studios in terms of market share
      To   have the most current and updated equipment to provide the best services
      To   support five full-time staff
      To   expand the existing studio from one studio to three studios

1.2 Mission

   COMPANY NAME seeks to serve clientele for all of their casting and studio photography needs
   by creating beautiful shots that serve the client's needs, offering excellent service and flexibility
   with a personal touch, and offering value-added services related to entertainment
   industry. COMPANY NAME intends to offer personalized service to make it easy for small
   businesses to outsource their casting and photography needs.

1.3 Keys to Success

      Establishing COMPANY NAME as flexible to the needs of casting, placement, models and
       photography needs to all in the entertainment and advertising industry, from large to small.
      Offering a range of additional services, such as printing, photo editing, framing, and
       production of photos in a variety of digital formats
      Making models and businesses feel at home in our studio and part of the creative process

2.0 Company Summary

   COMPANY NAME will be based in a conveniently-located studio space in [INSERT
   ADDRESS]. The company was founded by OWNER’S NAME who has served clients since 1981
   throughout eastern Pennsylvania, New Jersey, Maryland, New York, Delaware, Virginia and
   Washington D.C. Over this time, COMPANY NAME's business has steadily grown, including a
   variety of returning clients who rely on COMPANY NAME for their models product photography
   for pamphlets, brochures, websites, and other marketing collateral. COMPANY NAME has
   operated with a devoted studio during this time, in addition to traveling to client sites and
   setting up a studio space wherever possible.

2.1 Company Ownership

   COMPANY NAME was established as a sole proprietorship in 1981. OWNER’S NAME owns 50%,
   CO-OWNER’S NAME owns 30% and CO-OWNER’S NAME owns 20% of the company
   respectively.

2.2 Company History

   COMPANY NAME is a professional model and casting agency providing both union and non-
   union talent for Print, Video, Television, Film, Industrial, Trade Shows, Marketing and
   Promotions. What the company also offers to clients are National Direct Marketing Teams that
   have been working with COMPANY NAME since 1994.



                                                                                                 Page 2
                                          COMPANY NAME




   COMPANY NAME is a leading Model/Casting Agency. The company has served clients since 1981
   throughout eastern Pennsylvania, New Jersey, Maryland, New York, Delaware, Virginia and
   Washington D.C. COMPANY NAME is proud to represent over 300 professional models, actor
   and actresses and over 900 promotional models from seven states, hired by clients both large
   and small for a wide variety of products.

Table: Past Performance

   Past Performance
                                 2007        2008         2009
   Sales                         $162,720    $210,661     $145,067
   Gross Margin                  $162,720    $210,661     $145,067
   Gross Margin %                100.00%     100.00%      100.00%
   Operating Expenses            $155,158    $187,176     $150,236

   Balance Sheet
                                 2007        2008         2009

   Current Assets
   Cash                          $6,393      $7,225       $3,303
   Other Current Assets          $642        $0           $26,080
   Total Current Assets          $7,035      $7,225       $29,383

   Long-term Assets
   Long-term Assets              $224,832    $218,439     $9,920
   Accumulated Depreciation      $117,942    $127,444     $2,227
   Total Long-term Assets        $106,890    $90,995      $7,693

   Total Assets                  $113,925    $98,220      $37,076

   Current Liabilities
   Accounts Payable              $0          $0           $0
   Current Borrowing             $1,185      $91,332      $10,555
   Other Current Liabilities     $0          $0           $0
   (interest free)
   Total Current Liabilities     $1,185      $91,332      $10,555

   Long-term Liabilities         $131,832    $114,128     $0
   Total Liabilities             $133,017    $205,460     $10,555

   Paid-in Capital               $58,542     $3,260       $100
   Retained Earnings             $16,698     $6,690       $121,434
   Earnings                      ($94,332)   ($117,190)   ($95,013)
   Total Capital                 ($19,092)   ($107,240)   $26,521

   Total       Capital     and   $113,925    $98,220      $37,076
   Liabilities

   Other Inputs
   Payment Days                  0           0            0




                                                                                        Page 3
                                           COMPANY NAME




3.0 Services

   Services to be offered include the following:

      Studio commercial photography
      On-site commercial photography
      Set dressing services for photo shoots
      Photo editing and digital editing work
      Delivery of prints or digital files of photo shoots
      Talent and Model representation
      Rental of the studio space to subcontractors when time allows

   In the future, as additional staff is added, COMPANY NAME plans to expand to a multi-room
   studio to allow for multiple shoots simultaneously.

4.0 Market Analysis Summary

   The market for commercial modeling, casting and photography includes all businesses and non-
   profits. For COMPANY NAME, the target market is small and medium-sized and large
   businesses, clients and non-profits (those with fewer than 500 employees) based nationwide.

   Here is a partial list of previous and current clients:

   [INSERT CLIENTS HERE]




                                                                                        Page 4
                                        COMPANY NAME




4.1 Market Segmentation

   Film and Television: This is the market that will take advantage of COMPANY NAME full
   service offerings. These businesses generally begin by taking these photographs in-house, but,
   over time, determine that this method produces sub-standard results. They then seek outside
   professional sources to better fill their needs and a reasonable price.

   Advertising: These businesses have ongoing and regular needs for photography of their
   products and services for small and large companies.            They appreciate establishing
   relationships with both casting and photography services who understand their way of working,
   allow them access to the creative process, and reduce the stress of creating marketing
   materials. They prefer to work with one vendor for all photography needs and will be reluctant
   to change that vendor once it is found. However, they do continue to check the prices of their
   vendor against competitors to make sure they are getting the preferred mix of quality and
   price.

   Photography: Most entertainment companies and advertising agencies have marketing
   departments which outsource photography to photo studios. They have a higher volume of
   photography needs than smaller businesses and pay great attention to the quality of the
   images as well as the price. Volume discounts may be needed to retain businesses in this
   category.

Table: Market Analysis

   Market
   Analysis
                              2010      2011        2012        2013        2014
   Potential         Growth                                                             CAGR
   Customers
   Film/Television   50%      115,049   172,574     258,861     388,292     582,438     50.00%
   Advertising       50%      301,106   451,659     677,489     1,016,234   1,524,351   50.00%
   Photography       100%     416,155   832,310     1,664,620   3,329,240   6,658,480   100.00%
   Total             80.14%   832,310   1,456,543   2,600,970   4,733,766   8,765,269   80.14%




                                                                                           Page 5
                                         COMPANY NAME




4.2 Target Market Segment Strategy

   Whether a client's current project is a company brochure, poster or employee training film,
   point of purchase materials or live promotions, radio or television commercials, COMPANY NAME
   is available to supply them with top quality talent to ensure that an end product exceeds their
   expectations. COMPANY NAME takes pride on providing the client with a quality-finished
   product. COMPANY NAME has a well-established reputation for a full-service modeling and
   casting agency that specializes in filling the creative needs of the corporate sector with
   experienced talent tailored to meet the needs of the client.

   While many of COMPANY NAME's current clients expect and demand only highly experienced
   models, some clients with limited budgets or less demanding projects appreciate the significant
   savings realized by booking some of our newer, less experienced models and talent.

   COMPANY NAME has many account executives that look forward to working closely with current
   and new clients to find the right model/talent for their project. The company hopes
   that prospective new clients will give the chance to show them why hundreds of companies
   call COMPANY NAME first to supply them with the finest models and talent.

   COMPANY NAME's marketing goal is to have the updated and current high-end equipment and
   facility to further meet their current and future client's needs. The passion to achieve this will
   be reflected in the company's dealings with new projects.




                                                                                              Page 6
                                         COMPANY NAME




4.3 Service Business Analysis

   The commercial photography industry is characterized by local photo studios which serve cities
   or small regions. Very few businesses grow beyond this geographic range. Within a local
   market, such as [INSERT ADDRESS], there are a few photo studios in operation. Businesses
   seek photography vendors through referrals, internet search, and the local yellow pages.
   Photography studios generally base their charges on the time of the shoot as well as the
   number of edited photos provided.

   Specific competitors for COMPANY NAME include:

   [INSERT COMPETITORS]

4.3.1 Competition and Buying Patterns

   There are very few barriers to entry into the commercial photography business. At the low-end
   of the market, freelance photographers and talent agencies with inexpensive digital cameras
   start work officially and unofficially every day. However, at the high end of the market, quality
   photographers and talent agents working with the best equipment and a studio space are
   protected by the capital required to purchase equipment and to rent and build out a studio.

   Customers whether a large television production studio or a small advertising agency with a
   large nationwide client do seek low prices, but will not sacrifice quality. The best quality is
   obtained in the controlled environment of a studio, with well-trained photographers and high-
   quality equipment. Customers choose between photo studios and casting agencies based on
   their websites and portfolios of work, as well as the personal assurances of the salesperson
   they work with at the studio that their needs will be taken care of.

   Word of mouth is extremely important for this industry. While the product of the work becomes
   very visible, it is important that customers feel so strongly about the experience of working
   with their casting agency and photo studio that they talk about it to other businesses and
   contacts. These referrals are extremely helpful in generating business.

5.0 Strategy and Implementation Summary

   To reach the company's target markets, COMPANY NAME will use business networking, word of
   mouth within the industry and web marketing to find clients and to ensure that clients find
   COMPANY NAME. The owner, OWNER’S NAME, will sell to clients, and both he and an additional
   team of assistant photographers will be assigned to client photo shoots in the company
   facility and, when needed, at client sites.

5.1 Competitive Edge

   COMPANY NAME has a competitive edge from the reputation of being in the business and
   entertainment community as a high-quality photographer and high end casting and modeling
   agency who is easy to work with and attentive to the needs of a variety of clients. COMPANY
   NAME will continue to develop this competitive edge by training additional photographers with
   a signature style of photography and high attention to customer service and casting needs.




                                                                                             Page 7
                                        COMPANY NAME




5.2 Marketing Strategy

   The marketing strategy for COMPANY NAME is based on the belief that using a few marketing
   tactics extremely well is preferable to using many marketing tactics with moderate success with
   each. The following are components of the initial marketing campaign:

   Business Networking: COMPANY NAME will promote the business through the local chapter of
   BNI (Business Networking International) and the Chamber of Commerce. Through these
   meetings, COMPANY NAME will introduce his company's work to other business owners, share
   leads on business, and receive both exposure and qualified referrals.

   Web Marketing: COMPANY NAME will purchase search engine advertising with Google
   Adwords around commercial photography keywords for the Pennsylvania market and gear its
   advertisements towards the needs of the entertainment industry.              Furthermore, the
   company's website will be optimized for higher search engine ranking under these keywords.

5.3 Sales Strategy

   The company's sales strategy is to utilize the experience of COMPANY NAME as
   salesperson. The company will be able to assure clients of what the company and its
   photographers can accomplish as all will be personally trained by him.

   To increase the closing rate of prospects COMPANY NAME will meet clients at their businesses
   whenever possible to go beyond phone conversations. The company will use a portfolio of
   images and testimonials. COMPANY NAME will use tools to manage the sales process, and to
   train additional salespeople when the time comes.




                                                                                           Page 8
                                         COMPANY NAME




5.3.1 Sales Forecast

   Sales for photo shoots and casting are expected to drive the business and will grow with the
   growing staff. Additional photographers will be hired to meet the need first as part-time and
   then as full-time staff.

   Supplementary revenue streams will be photo editing services and printing and framing of
   images. Finally, off-hours for the studio will be rented for events of other purposes to create a
   steady monthly stream of revenue.

Table: Sales Forecast

   Sales Forecast
                          2010        2011       2012
   Sales
   Model Fees             $133,894    $147,283   $162,012
   Agency Fees            $45,478     $50,026    $55,028
   Photography            $13,069     $14,376    $15,813
   Total Sales            $192,441    $211,685   $232,853

   Direct Cost of Sales   2010        2011       2012
   Photo Supplies         $3,184      $3,280     $3,378
   Office Supplies        $4,765      $4,907     $5,055
   Subtotal Direct Cost   $7,949      $8,187     $8,433
   of Sales




                                                                                             Page 9
                                          COMPANY NAME




5.4 Milestones

   The detailed 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 Date     End Date     Budget     Manager          Depart
                                                                                     ment
   Photo Equipment (No       8/1/2010       10/1/2010    $55,800     INSERT NAME     Owner
   Props)
   Computer Equipment        8/1/2010       10/1/2010    $36,000     INSERT   NAME   Owner
   Phone System              8/1/2010       10/1/2010    $6,000      INSERT   NAME   Owner
   New Desk and Chairs       8/1/2010       10/1/2010    $2,600      INSERT   NAME   Owner
   Exterminator              8/1/2010       9/1/2010     $600        INSERT   NAME   Owner
   Building Renovations      8/1/2010       12/31/2010   $112,409    INSERT   NAME   Owner
   Heavy Duty Shredder       8/1/2010       10/1/2010    $700        INSERT   NAME   Owner
   Storage Bins              8/1/2010       10/1/2010    $300        INSERT   NAME   Owner
   IT Contractor             12/31/2010     1/15/2011    $3,000      INSERT   NAME   Owner
   Health Insurance (Group   8/1/2010       11/1/2010    $37,388     INSERT   NAME   Owner
   4 People)
   Office Supplies           8/1/2010       11/1/2010    $17,163     INSERT   NAME   Owner
   Advertising               8/1/2010       8/1/2011     $41,000     INSERT   NAME   Owner
   Office Furniture          8/1/2010       12/31/2010   $3,540      INSERT   NAME   Owner
   Cargo Van                 8/1/2010       11/1/2010    $28,500     INSERT   NAME   Owner
   Real Estate Purchase      8/1/2010       10/31/2010   $125,000    INSERT   NAME   Owner
   Totals                                                $470,000



                                                                                        Page 10
                                         COMPANY NAME




6.0 Management Summary

   The sole owner, OWNER’S NAME, has impeccable credentials in this industry. This will
   benefit COMPANY NAME in two ways:

   1. Clients will be brought from previous employers, and
   2. The experience each has will attract new clients.

6.1 Personnel Plan

   COMPANY NAME will begin its expansion with one secretary with the understanding that both
   the company and the position will grow. The owner's salary will not be determined until a profit
   is made. All other individuals working for the company will be 1099 independent contractors.

Table: Personnel

   Personnel
   Plan
                   2010      2011      2012
   Owner           $0        $0        $0
   Secretary       $35,481   $36,545   $37,642
   Total           2         3         5
   People

   Total           $35,481   $36,545   $37,642
   Payroll




                                                                                           Page 11
                                           COMPANY NAME




7.0 Financial Plan

   The growth of the business, beyond the first year, will be financed by the free cash flows
   generated by the business. This will allow for the expansion of staff to include additional
   photographers, the ramping up of marketing expenditures, and the resulting increase in sales.

7.1 Important Assumptions

   The following table shows the General Assumptions for COMPANY NAME.

7.2 Break-even Analysis

   The break even for the business is high, as the salaries of staff are relatively fixed.

Table: Break-even Analysis

   Break-even Analysis

   Monthly       Revenue     $5,529
   Break-even

   Assumptions:
   Average       Percent     4%
   Variable Cost
   Estimated     Monthly     $5,301
   Fixed Cost




                                                                                             Page 12
                                            COMPANY NAME




7.3 Projected Profit and Loss

   Gross margins are expected to remain consistent, as most costs of the business are not direct
   costs of sales. The greatest cost of the service is labor, which is part of salaries and not cost of
   sales, for example.

   As the Profit and Loss table shows, the company expects to continue its steady growth in
   profitability over the next three years of operations.

Table: Profit and Loss

   Pro Forma Profit and
   Loss
                                2010       2011       2012
   Sales                        $192,441   $211,685   $232,853
   Direct Cost of Sales         $7,949     $8,187     $8,433
   Other Costs of Sales         $0         $0         $0
   Total Cost of Sales          $7,949     $8,187     $8,433

   Gross Margin                 $184,492   $203,498   $224,420
   Gross Margin %               95.87%     96.13%     96.38%


   Expenses
   Payroll                      $35,481    $36,545    $37,642
   Marketing/Promotion          $0         $0         $30,000
   Depreciation                 $0         $0         $0
   Rent                         $16,216    $16,703    $17,204
   Utilities                    $5,231     $5,388     $5,549
   Insurance                    $6,371     $6,562     $6,759
   Payroll Taxes                $307       $316       $326

   Total         Operating      $63,606    $65,514    $97,480
   Expenses

   Profit Before Interest       $120,886   $137,984   $126,940
   and Taxes
   EBITDA                       $120,886   $137,984   $126,940
    Interest Expense            $514       $56        $56
    Taxes Incurred              $36,112    $41,379    $38,065

   Net Profit                   $84,261    $96,550    $88,819
   Net Profit/Sales             43.79%     45.61%     38.14%




                                                                                               Page 13
COMPANY NAME




               Page 14
COMPANY NAME




               Page 15
                                            COMPANY NAME




7.4 Projected Cash Flow

   The 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.

Table: Cash Flow

   Pro Forma Cash Flow
                                     2010       2011       2012
   Cash Received

   Cash from Operations
   Cash Sales                        $192,441   $211,685   $232,853
   Subtotal     Cash         from    $192,441   $211,685   $232,853
   Operations

   Additional Cash Received
   Sales Tax, VAT, HST/GST           $0         $0         $0
   Received
   New Current Borrowing             $0         $0         $0
   New       Other     Liabilities   $0         $0         $0
   (interest-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           $0         $0         $0
   Subtotal Cash Received            $192,441   $211,685   $232,853

   Expenditures                      2010       2011       2012

   Expenditures from Operations
   Cash Spending                     $35,481    $36,545    $37,642
   Bill Payments                     $65,500    $79,330    $104,107
   Subtotal Spent on Operations      $100,981   $115,875   $141,749

   Additional Cash Spent
   Sales Tax, VAT, HST/GST           $0         $0         $0
   Paid Out
   Principal     Repayment      of   $5,000     $0         $0
   Current Borrowing
   Other     Liabilities Principal   $0         $0         $0
   Repayment
   Long-term Liabilities Principal   $5,000     $0         $0
   Repayment
   Purchase      Other    Current    $0         $0         $0
   Assets
   Purchase Long-term Assets         $0         $0         $0
   Dividends                         $0         $0         $36,442
   Subtotal Cash Spent               $110,981   $115,875   $178,190

   Net Cash Flow                     $81,460    $95,810    $54,663
   Cash Balance                      $84,763    $180,573   $235,235


                                                                                       Page 16
                                         COMPANY NAME




7.5 Projected Balance Sheet

   The business is projected to show growth as there are not substantial additional
   capital expenditures needed after the grant funding is acquired. There will be healthy growth in
   net worth over the first three years of operation, as additional debt is not required to fund the
   business.

Table: Balance Sheet

   Pro Forma Balance
   Sheet
                        2010        2011        2012
   Assets

   Current Assets
   Cash                 $84,763     $180,573    $235,235
   Other      Current   $26,080     $26,080     $26,080
   Assets
   Total      Current   $110,843    $206,653    $261,315
   Assets

   Long-term Assets
   Long-term Assets     $9,920      $9,920      $9,920
   Accumulated          $2,227      $2,227      $2,227
   Depreciation
   Total    Long-term   $7,693      $7,693      $7,693
   Assets
   Total Assets         $118,536    $214,346    $269,008




                                                                                            Page 17
                                            COMPANY NAME




   Liabilities         and   2010       2011       2012
   Capital

   Current Liabilities
   Accounts Payable          $7,200     $6,459     $8,745
   Current Borrowing         $5,555     $5,555     $5,555
   Other       Current       $0         $0         $0
   Liabilities
   Subtotal    Current       $12,755    $12,014    $14,300
   Liabilities

   Long-term                 ($5,000)   ($5,000)   ($5,000)
   Liabilities
   Total Liabilities         $7,755     $7,014     $9,300

   Paid-in Capital           $100       $100       $100
   Retained Earnings         $26,421    $110,682   $170,790
   Earnings                  $84,261    $96,550    $88,819
   Total Capital             $110,782   $207,331   $259,709
   Total Liabilities and     $118,536   $214,346   $269,008
   Capital

   Net Worth                 $110,782   $207,331   $259,709


7.6 Business Ratios

   The following table shows the projected business ratios. Donatelli Model/Casting
   Agency expects to maintain healthy ratios for profitability, risk, and return. The industry
   comparisons are for Other Film and Video Production, as there is current no category for talent
   and casting agencies specified.




                                                                                          Page 18
                                            COMPANY NAME




Table: Ratios

   Ratio Analysis
                                                2010      2011       2012       Industry Profile
   Sales Growth                                 32.66%    10.00%     10.00%     6.09%

   Percent of Total Assets
   Other Current Assets                         22.00%    12.17%     9.69%      50.42%
   Total Current Assets                         93.51%    96.41%     97.14%     77.65%
   Long-term Assets                             6.49%     3.59%      2.86%      22.35%
   Total Assets                                 100.00%   100.00%    100.00%    100.00%

   Current Liabilities                          10.76%    5.61%      5.32%      19.70%
   Long-term Liabilities                        -4.22%    -2.33%     -1.86%     33.00%
   Total Liabilities                            6.54%     3.27%      3.46%      52.70%
   Net Worth                                    93.46%    96.73%     96.54%     47.30%

   Percent of Sales
   Sales                                        100.00%   100.00%    100.00%    100.00%
   Gross Margin                                 95.87%    96.13%     96.38%     100.00%
   Selling, General & Administrative Expenses   52.08%    50.52%     58.23%     69.71%
   Advertising Expenses                         0.00%     0.00%      12.88%     1.16%
   Profit Before Interest and Taxes             62.82%    65.18%     54.52%     2.13%

   Main Ratios
   Current                                      8.69      17.20      18.27      2.34
   Quick                                        8.69      17.20      18.27      1.38
   Total Debt to Total Assets                   6.54%     3.27%      3.46%      59.11%
   Pre-tax Return on Net Worth                  108.66%   66.53%     48.86%     4.15%
   Pre-tax Return on Assets                     101.55%   64.35%     47.17%     1.70%

   Additional Ratios                            2010      2011       2012
   Net Profit Margin                            43.79%    45.61%     38.14%     n.a
   Return on Equity                             76.06%    46.57%     34.20%     n.a

   Activity Ratios
   Accounts Payable Turnover                    10.10     12.17      12.17      n.a
   Payment Days                                 27        32         26         n.a
   Total Asset Turnover                         1.62      0.99       0.87       n.a

   Debt Ratios
   Debt to Net Worth                            0.07      0.03       0.04       n.a
   Current Liab. to Liab.                       1.64      1.71       1.54       n.a

   Liquidity Ratios
   Net Working Capital                          $98,089   $194,638   $247,016   n.a
   Interest Coverage                            235.26    2,486.20   2,287.21   n.a

   Additional Ratios
   Assets to Sales                              0.62      1.01       1.16       n.a
   Current Debt/Total Assets                    11%       6%         5%         n.a
   Acid Test                                    8.69      17.20      18.27      n.a
   Sales/Net Worth                              1.74      1.02       0.90       n.a
   Dividend Payout                               0.00     0.00       0.41       n.a




                                                                                          Page 19
                                                                                Appendix

Table: Sales Forecast

Sales Forecast
                        Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Sales
Model Fees              $8,411    $8,832    $9,274    $9,738    $10,225   $10,736   $11,273   $11,837   $12,429   $13,050   $13,702   $14,387
Agency Fees             $2,857    $3,000    $3,150    $3,308    $3,473    $3,647    $3,829    $4,020    $4,221    $4,432    $4,654    $4,887
Photography             $821      $862      $905      $950      $998      $1,048    $1,100    $1,155    $1,213    $1,274    $1,338    $1,405
Total Sales             $12,089   $12,694   $13,329   $13,996   $14,696   $15,431   $16,202   $17,012   $17,863   $18,756   $19,694   $20,679

Direct Cost of Sales    Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Photo Supplies          $224      $231      $238      $245      $252      $260      $268      $276      $284      $293      $302      $311
Office Supplies         $336      $346      $356      $367      $378      $389      $401      $413      $425      $438      $451      $465
Subtotal Direct Cost    $560      $577      $594      $612      $630      $649      $669      $689      $709      $731      $753      $776
of Sales




                                                                                                                                                Page 1
                                                                                  Appendix

Table: Personnel

Personnel Plan
                   Jan      Feb      Mar      Apr      May      Jun      Jul       Aug       Sep      Oct      Nov      Dec
Owner              $0       $0       $0       $0       $0       $0       $0        $0        $0       $0       $0       $0
Secretary          $2,500   $2,575   $2,652   $2,732   $2,814   $2,898   $2,985    $3,075    $3,167   $3,262   $3,360   $3,461
Total              2        2        2        2        2        2        2         2         2        2        2        2
People

Total              $2,500   $2,575   $2,652   $2,732   $2,814   $2,898   $2,985    $3,075    $3,167   $3,262   $3,360   $3,461
Payroll




                                                                                                                                 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                             $12,08   $12,69   $13,32   $13,99   $14,69   $15,43     $16,20   $17,01   $17,86   $18,75   $19,69   $20,67
                                  9        4        9        6        6        1          2        2        3        6        4        9
Direct Cost of Sales              $560     $577     $594     $612     $630     $649       $669     $689     $709     $731     $753     $776
Other Costs of Sales              $0       $0       $0       $0       $0       $0         $0       $0       $0       $0       $0       $0
Total Cost of Sales               $560     $577     $594     $612     $630     $649       $669     $689     $709     $731     $753     $776

Gross Margin                      $11,52   $12,11   $12,73   $13,38   $14,06   $14,78     $15,53   $16,32   $17,15   $18,02   $18,94   $19,90
                                  9        7        5        4        6        2          3        3        4        5        1        3
Gross Margin %                    95.37%   95.45%   95.54%   95.63%   95.71%   95.79%     95.87%   95.95%   96.03%   96.10%   96.18%   96.25%


Expenses
Payroll                           $2,500   $2,575   $2,652   $2,732   $2,814   $2,898     $2,985   $3,075   $3,167   $3,262   $3,360   $3,461
Marketing/Promotion               $0       $0       $0       $0       $0       $0         $0       $0       $0       $0       $0       $0
Depreciation                      $0       $0       $0       $0       $0       $0         $0       $0       $0       $0       $0       $0
Rent                              $1,348   $1,388   $1,348   $1,348   $1,348   $1,348     $1,348   $1,348   $1,348   $1,348   $1,348   $1,348
Utilities                         $369     $380     $391     $403     $415     $427       $440     $453     $467     $481     $495     $510
Insurance                   15%   $449     $462     $476     $490     $505     $520       $536     $552     $569     $586     $604     $622
Payroll Taxes               15%   $307     $0       $0       $0       $0       $0         $0       $0       $0       $0       $0       $0

Total          Operating          $4,973   $4,805   $4,867   $4,973   $5,082   $5,193     $5,309   $5,428   $5,551   $5,677   $5,807   $5,941
Expenses

Profit Before Interest            $6,556   $7,312   $7,868   $8,411   $8,984   $9,589     $10,22   $10,89   $11,60   $12,34   $13,13   $13,96
and Taxes                                                                                 4        5        3        8        4        2
EBITDA                            $6,556   $7,312   $7,868   $8,411   $8,984   $9,589     $10,22   $10,89   $11,60   $12,34   $13,13   $13,96
                                                                                          4        5        3        8        4        2
 Interest Expense                 $81      $74      $67      $60      $53      $46        $39      $32      $25      $19      $12      $5
 Taxes Incurred                   $1,942   $2,171   $2,340   $2,505   $2,679   $2,863     $3,055   $3,259   $3,473   $3,699   $3,937   $4,187

Net Profit                        $4,532   $5,067   $5,461   $5,846   $6,252   $6,680     $7,129   $7,604   $8,104   $8,631   $9,186   $9,770
Net Profit/Sales                  37.49%   39.91%   40.97%   41.77%   42.54%   43.29%     44.00%   44.70%   45.37%   46.02%   46.64%   47.25%




                                                                                                                                                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                               $12,089   $12,694   $13,32    $13,99    $14,69    $15,43    $16,20    $17,01    $17,863   $18,756   $19,694   $20,679
                                                             9         6         6         1         2         2
Subtotal Cash from Operations            $12,089   $12,694   $13,32    $13,99    $14,69    $15,43    $16,20    $17,01    $17,863   $18,756   $19,694   $20,679
                                                             9         6         6         1         2         2

Additional Cash Received
Sales Tax, VAT, HST/GST            0.0   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Received                           0%
New Current Borrowing                    $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
New Other Liabilities (interest-         $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
free)
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        $0        $0        $0        $0
Subtotal Cash Received                   $12,089   $12,694   $13,32    $13,99    $14,69    $15,43    $16,20    $17,01    $17,863   $18,756   $19,694   $20,679
                                                             9         6         6         1         2         2

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

Expenditures from Operations
Cash Spending                            $2,500    $2,575    $2,652    $2,732    $2,814    $2,898    $2,985    $3,075    $3,167    $3,262    $3,360    $3,461
Bill Payments                            $169      $5,056    $5,058    $5,223    $5,425    $5,638    $5,861    $6,096    $6,342    $6,601    $6,873    $7,158
Subtotal Spent on Operations             $2,669    $7,631    $7,710    $7,955    $8,239    $8,536    $8,846    $9,171    $9,509    $9,863    $10,233   $10,619

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid             $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Out
Principal     Repayment      of          $417      $417      $417      $417      $417      $417      $417      $417      $417      $417      $417      $417
Current Borrowing
Other     Liabilities Principal          $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Repayment
Long-term Liabilities Principal          $417      $417      $417      $417      $417      $417      $417      $417      $417      $417      $417      $417
Repayment
Purchase Other Current Assets            $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Purchase Long-term Assets                $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Dividends                                $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Subtotal Cash Spent                      $3,502    $8,465    $8,543    $8,788    $9,073    $9,369    $9,679    $10,00    $10,342   $10,696   $11,066   $11,453
                                                                                                               4
Net Cash Flow                            $8,587    $4,229    $4,786    $5,208    $5,623    $6,062    $6,523    $7,008    $7,521    $8,060    $8,628    $9,226
Cash Balance                             $11,890   $16,119   $20,905   $26,113   $31,736   $37,798   $44,320   $51,328   $58,849   $66,909   $75,537   $84,763
                                                                                                                                                                 Page 4
                                                                                                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                      $3,303              $11,890   $16,119   $20,905   $26,113   $31,736   $37,798   $44,320   $51,328   $58,849   $66,909    $75,537    $84,763
Other Current Assets      $26,080             $26,080   $26,080   $26,080   $26,080   $26,080   $26,080   $26,080   $26,080   $26,080   $26,080    $26,080    $26,080
Total Current Assets      $29,383             $37,970   $42,199   $46,985   $52,193   $57,816   $63,878   $70,400   $77,408   $84,929   $92,989    $101,617   $110,843

Long-term Assets
Long-term Assets          $9,920              $9,920    $9,920    $9,920    $9,920    $9,920    $9,920    $9,920    $9,920    $9,920    $9,920     $9,920     $9,920
Accumulated               $2,227              $2,227    $2,227    $2,227    $2,227    $2,227    $2,227    $2,227    $2,227    $2,227    $2,227     $2,227     $2,227
Depreciation
Total        Long-term    $7,693              $7,693    $7,693    $7,693    $7,693    $7,693    $7,693    $7,693    $7,693    $7,693    $7,693     $7,693     $7,693
Assets
Total Assets              $37,076             $45,663   $49,892   $54,678   $59,886   $65,509   $71,571   $78,093   $85,101   $92,622   $100,68    $109,310   $118,536
                                                                                                                                        2

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

Current Liabilities
Accounts Payable          $0                  $4,888    $4,884    $5,043    $5,238    $5,443    $5,658    $5,885    $6,122    $6,372    $6,635     $6,910     $7,200
Current Borrowing         $10,555             $10,138   $9,722    $9,305    $8,888    $8,472    $8,055    $7,638    $7,222    $6,805    $6,388     $5,972     $5,555
Other           Current   $0                  $0        $0        $0        $0        $0        $0        $0        $0        $0        $0         $0         $0
Liabilities
Subtotal        Current   $10,555             $15,026   $14,606   $14,348   $14,126   $13,914   $13,713   $13,523   $13,344   $13,177   $13,023    $12,882    $12,755
Liabilities

Long-term Liabilities     $0                  ($417)    ($833)    ($1,250   ($1,667   ($2,083   ($2,500   ($2,917   ($3,333   ($3,750   ($4,167)   ($4,583)   ($5,000)
                                                                  )         )         )         )         )         )         )
Total Liabilities         $10,555             $14,610   $13,772   $13,098   $12,459   $11,831   $11,213   $10,606   $10,010   $9,427    $8,856     $8,298     $7,755

Paid-in Capital           $100                $100      $100      $100      $100      $100      $100      $100      $100      $100      $100       $100       $100
Retained Earnings         $121,434            $26,421   $26,421   $26,421   $26,421   $26,421   $26,421   $26,421   $26,421   $26,421   $26,421    $26,421    $26,421
Earnings                  ($95,013)           $4,532    $9,599    $15,060   $20,905   $27,157   $33,837   $40,966   $48,570   $56,674   $65,305    $74,490    $84,261
Total Capital             $26,521             $31,053   $36,120   $41,581   $47,426   $53,678   $60,358   $67,487   $75,091   $83,195   $91,826    $101,011   $110,782
Total Liabilities and     $37,076             $45,663   $49,892   $54,678   $59,886   $65,509   $71,571   $78,093   $85,101   $92,622   $100,68    $109,310   $118,536
Capital                                                                                                                                 2

Net Worth                 $26,521             $31,053   $36,120   $41,581   $47,426   $53,678   $60,358   $67,487   $75,091   $83,195   $91,826    $101,011   $110,782




                                                                                                                                                                         Page 5
                                                               Appendix


								
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