Business Plan for Design and Decor

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									This Business Plan for a Design and Decor company 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:




© 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.............................................................................................................................................. 1
   1.3 Keys to Success................................................................................................................................. 2
2.0 Company Summary .............................................................................................................................. 2
   2.1 Company Ownership ........................................................................................................................ 2
   2.2 Company History .............................................................................................................................. 2
3.0 Products and Services ........................................................................................................................... 4
4.0 Market Analysis Summary ................................................................................................................... 4
   4.1 Market Segmentation ........................................................................................................................ 4
      Table: Market Analysis ....................................................................................................................... 5
   4.2 Target Market Segment Strategy ...................................................................................................... 5
   4.3 Service Business Analysis ................................................................................................................ 5
      4.3.1 Competition and Buying Patterns .............................................................................................. 6
5.0 Strategy and Implementation Summary................................................................................................ 6
   5.1 Competitive Edge.............................................................................................................................. 6
   5.2 Marketing Strategy............................................................................................................................ 6
   5.3 Sales Strategy .................................................................................................................................... 6
      5.3.1 Sales Forecast............................................................................................................................. 7
        Table: Sales Forecast.................................................................................................................. 7
   5.4 Milestones ......................................................................................................................................... 9
      Table: Milestones ................................................................................................................................ 9
6.0 Management Summary ......................................................................................................................... 9
   6.1 Personnel Plan................................................................................................................................... 9
      Table: Personnel................................................................................................................................ 10
7.0 Financial Plan...................................................................................................................................... 10
   7.1 Important Assumptions ................................................................................................................... 10
   7.2 Break-even Analysis ....................................................................................................................... 10
      Table: Break-even Analysis .............................................................................................................. 10
   7.3 Projected Profit and Loss ................................................................................................................ 11
      Table: Profit and Loss ....................................................................................................................... 11
   7.4 Projected Cash Flow ....................................................................................................................... 14
   7.5 Projected Balance Sheet .................................................................................................................. 15
   7.6 Business Ratios ............................................................................................................................... 17
   7.6 Business Ratios ............................................................................................................................... 17
      Table: Ratios ..................................................................................................................................... 17




                                                                                                                                                    Page 1
                                            COMPANY NAME



1.0 Executive Summary

   COMPANY NAME, in business since 1998, designs and custom builds in commercial and home offices with
   cabinetry and storage solutions. The owner and sole operator of the company, OWNER’S NAME, has hands
   on experience with everything from the general contracting, meeting with clients and record keeping.
   COMPANY NAME is currently operated from Fenton, Missouri and proudly services the County of St. Louis.

   COMPANY NAME

   [INSERT CONTACT INFO]
   The purpose of this plan is to attain grant funding in the amount of $750,000. The expressed use of the funds
   by the company will be used for upgrading and expanding the existing building, inventory, office supplies,
   website implementation and debt reduction of long term liabilities.




1.1 Objectives

   1. Increase sales by expanding the business.
   2. Increase visibility by implementing an advertising campaign.
   3. Expansion of services by the end of 2010.

1.2 Mission

   To provide excellent service in custom cabinet refacing, custom cabinet builds, finishing, installing and
   remodeling in addition to custom home and office furniture specializing in real wood veneers and quality
   materials.




                                                                                                        Page 1
                                              COMPANY NAME



1.3 Keys to Success

   The keys to success in our business are:

      Superior Customer Service: High-quality care and service.
      Convenience: offering clients a wide range of services and options.
      Location: provide an easily accessible location for customer convenience and preserve a historic
       building where the company resides.
      Reputation: credibility, integrity, and 100% dedication.

2.0 Company Summary

   COMPANY NAME is a C Corporation commercial and office decor contracting and supply business located in
   Fenton, Missouri which began business in February of 1998. The owner of COMPANY NAME,OWNER’S
   NAME has been in construction and design his whole life. He has hands-on experience in all aspects of the
   trade from record keeping designing, a contracting license for buildings, sales experience and people
   management skills. He also takes continuing education courses in construction, lead, design, advertizing and
   people management yearly to keep up with changes in the industry.

2.1 Company Ownership

   COMPANY NAME a Missouri C Corporation business based in St. Louis County, privately owned by its
   principal operator, OWNER’S NAME.

2.2 Company History

   COMPANY NAME has done custom cabinet refacing, custom cabinet building, finishing, installing and
   remodeling custom furniture (Home and Office) since 1998. COMPANY NAME has successfully been in
   business still to this day in a depressed economy.

   The more detailed numbers in the Past Performance table include other indicators of some concern. The
   gross margin % has been declining steadily due to the economy, as we see in the chart. This concern is part
   of the general trend affecting all small business owners. The margin squeeze is happening throughout all
   industries worldwide.




                                                                                                       Page 2
                                             COMPANY NAME



Table: Past Performance

Past Performance
                                     2007         2008         2009
Sales                            $944,183     $913,901     $730,768
Gross Margin                     $636,928     $612,872     $593,427
Gross Margin %                    67.46%       67.06%       81.21%
Operating Expenses               $804,598     $797,279     $639,121

Balance Sheet
                                     2007         2008         2009

Current Assets
Cash                                   $0           $0           $0
Other Current Assets             $120,962      $89,620      $73,112
Total Current Assets             $120,962      $89,620      $73,112

Long-term Assets
Long-term Assets                  $22,392     $154,653     $155,344
Accumulated Depreciation               $0     $132,261     $132,261
Total Long-term Assets            $22,392      $22,392      $23,083

Total Assets                     $143,354     $112,012      $96,195

Current Liabilities
Accounts Payable                       $0      $65,960      $61,677
Current Borrowing                 $49,257      $94,841     $165,128
Other Current Liabilities              $0           $0           $0
(interest free)
Total Current Liabilities         $49,257     $160,801     $226,805

Long-term Liabilities             $88,000     $216,153     $329,963
Total Liabilities                $137,257     $376,954     $556,768

Paid-in Capital                         $0       $4,500       $4,500
Retained Earnings                 $173,767    ($85,034)   ($288,371)
Earnings                        ($167,670)   ($184,408)   ($176,702)
Total Capital                       $6,097   ($264,942)   ($460,573)

Total Capital and Liabilities    $143,354     $112,012      $96,195

Other Inputs
Payment Days                            0            0            0




                                                                       Page 3
                                             COMPANY NAME




3.0 Products and Services

   The following subtopics discuss COMPANY NAME services and an overview of competitors in the vicinity.

4.0 Market Analysis Summary

   COMPANY NAME focuses on local markets, large and small business, home office and overall
   custom interior decor, with special focus on the commercial office buildings, hospitals and the small business
   offices.

4.1 Market Segmentation

   St. Louis County is a County located in the U.S. state of Missouri. Its county seat is Clayton. St. Louis County
   is part of the St. Louis Metro Area wherein the independent City of St. Louis and its suburbs in St. Louis
   County, as well as the surrounding counties in both Missouri and Illinois all together account for a total
   population of over 2.8 million people. St. Louis County borders the City of St. Louis, which is independent
   from St. Louis County. The 2008 estimate for the county was 991,830.

   The segmentation allows some room for estimates and nonspecific definitions. COMPANY NAME focuses on
   a small-medium level of small business and residential customers, and it is hard to find information to make
   an exact classification. The company's target market is the community in St. Louis County and applies to any
   individual or business that needs custom interior built-ins and cabinetry; the definition is flexible.




                                                                                                           Page 4
                                               COMPANY NAME



Table: Market Analysis

Market Analysis
                                        2010      2011      2012       2013       2014
Potential Customers         Growth                                                            CAGR
Residential Customers          5%        22,095    23,200     24,360     25,578     26,857    5.00%
Commercial Business            5%       198,366   208,284    218,698    229,633    241,115    5.00%
Customers
Total                           5.00%   220,461   231,484    243,058    255,211    267,972    5.00%




4.2 Target Market Segment Strategy

   COMPANY NAME will not be successful waiting for the customer to come to the company.
   Instead, COMPANY NAME must focus on the specific market segments whose needs match the company's
   offerings. Focusing on targeted segments is the key to the company's future.

4.3 Service Business Analysis

   COMPANY NAME has identified two distinct opportunities within this market as having a proven need and an
   expressed desire to improve and redesign customer's interiors.

      Residential - this group has identified a need for a making more use out of their residential space,
       updating interiors of older homes and much more.

      Businesses - COMPANY NAME and many other businesses reside in older historic buildings and homes
       but have the need for updating the interior to better suit storage needs.




                                                                                                              Page 5
                                              COMPANY NAME



4.3.1 Competition and Buying Patterns

   Cabinet refacing and custom cabinet building is a low cost alternative to storage and kitchen re-modeling. In
   most cases, cabinet building and refacing involves leaving cabinet frames, or boxes, in place while
   resurfacing them and adding new doors and drawer fronts. Cabinet refacing is a low cost alternative to a full
   scale storage re-modeling. It is ideal for businesses who are happy with their interior layout but feel the office
   space is out of date in style or color, or just want a new look. It is also idea for homeowners looking to sell a
   house who wish to update their kitchen at low investment cost.

   Cabinet building and refacing is generally more ecologically sound than full scale office re-modeling, since the
   amount of debris put in the landfill is generally cut by almost three quarters. Ecologically sound materials
   such as bamboo can be selected to replace the outmoded hardwood or laminate doors and fronts.

   The cabinet refacing and custom building market in the U.S. is estimated at $300 million a year.

5.0 Strategy and Implementation Summary

   Emphasize Customer Service

   COMPANY NAME will differentiate themselves from other cabinet builders and refacers and custom interior
   contractors. The Company will establish the business offering as a clear and viable alternative for its target
   market.

   Build a Relationship-Oriented Business

   Build long-term relationships with clients. Make them understand the value of the relationship.

   Focus on Target Markets

   COMPANY NAME needs to focus the company's offerings on the busy professionals, who want to save time
   to enjoy convenience, expertise and total satisfaction of services.

5.1 Competitive Edge

   COMPANY NAME competitive edge is the company's positioning as strategic ally with clients, who are clients
   more than customers. By building a business based on long-standing relationships with satisfied
   clients, COMPANY NAME simultaneously builds defenses against competition. The longer the relationship
   stands, the more the company helps its' clients understand what COMPANY NAME offers them and why they
   need it.

5.2 Marketing Strategy

   The marketing strategy is the core of the main strategy:

   1. Emphasize service and support.
   2. Build a relationship business.
   3. Focus on commercial business buildings and high-end home office as key target markets.

5.3 Sales Strategy

   COMPANY NAME will be offering economical solution customers wanting to upgrade their home and/or
   business interior that will be introduced to the market through targeted advertising, website optimization and
   direct sales.
                                                                                                             Page 6
                                            COMPANY NAME



5.3.1 Sales Forecast

   The table below outlines the sales forecast and cost of goods sold. The forecast is based on reasonable sales
   projections within this very large market.

   As the economy is slowly but surely recovering, customers still will take the option of refurbishing what they
   already own. Customers in St. Louis and surrounding counties will choose COMPANY NAME as the most
   logical and economical solution to interior decor needs.

Table: Sales Forecast

Sales Forecast
                               2010          2011          2012
Sales
Labor                      $300,000     $350,000     $400,000
Supplies                   $900,000     $950,000    $1,200,000
Total Sales              $1,200,000    $1,300,000   $1,600,000

Direct Cost of Sales           2010         2011          2012
Raw Materials              $190,246     $195,953      $201,832
Labor                        $4,196       $4,322        $4,452
Subtotal Direct Cost       $194,442     $200,275      $206,284
of Sales




                                                                                                         Page 7
COMPANY NAME




               Page 8
                                            COMPANY NAME



5.4 Milestones

   The following table lists important program milestones with dates and budgets for each. The milestone
   schedule indicates the company's emphasis on planning for implementation.

Table: Milestones

Milestones

Milestone                     Start    End Date     Budget         Manager    Department
                              Date
Building Expense          6/2/2010    12/31/2010     $3,500      OWNER’S           Owner
                                                                   NAME
Equipment                 6/2/2010    12/31/2010   $150,000      OWNER’S           Owner
                                                                   NAME
Office Equipment          6/2/2010     10/1/2010    $40,000      OWNER’S           Owner
                                                                   NAME
Web Design                6/2/2010    12/31/2010    $25,000      OWNER’S           Owner
                                                                   NAME
Inventory                 6/2/2010     10/1/2010     $5,000      OWNER’S           Owner
                                                                   NAME
Travel                    6/2/2010    12/31/2010    $10,000      OWNER’S           Owner
                                                                   NAME
Auto/Truck Expense        6/2/2010      9/1/2010    $76,000      OWNER’S           Owner
                                                                   NAME
Pay Down Long Term        6/2/2010    12/31/2010   $200,000      OWNER’S           Owner
Liability                                                          NAME

Totals                                             $509,500


6.0 Management Summary

   COMPANY NAME is currently owned and operated only by the owner, OWNER’S NAME. The future
   management philosophy is based responsibility and mutual respect. People who work at COMPANY NAME in
   the near future will want to work for the company because COMPANY NAME will have an environment that
   encourages creativity and achievement.

   The Vice President of COMPANY NAME is the owner's son, [INSERT NAME], who will continue running the
   business after the owner retires.

6.1 Personnel Plan

   The growth of COMPANY NAME will be determined by how accurately and efficiently the company is able to
   implement the facets of this business plan.

   Each future member of COMPANY NAME team will be highly valued; everyone is expected to have opinions,
   as it is a team that will make this company excel. It is the mission of the company to employ people who are
   committed to a high standard of excellence, who thrive on a team atmosphere, and who have outstanding
   customer service skills. This idealism is represented by the owner and will continue to be the guideline by
   which new team members are hired.




                                                                                                       Page 9
                                              COMPANY NAME



Table: Personnel

Personnel
Plan
                       2010      2011      2012
Labor                $19,859   $20,455   $21,068
Administrative       $20,588   $21,206   $21,842
Total People               4         5         6

Total Payroll        $40,447   $41,661   $42,910


7.0 Financial Plan

    The following subtopics help present the financial plan for COMPANY NAME.

7.1 Important Assumptions

    The table below presents the assumptions used in the financial calculations of this business plan.

7.2 Break-even Analysis

    For the company's break-even analysis, COMPANY NAME assumes running costs of approximately $62,260
    per month, which includes materials, office operation and utilities, and an estimation of other running costs.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue                $74,300
Break-even

Assumptions:
Average Percent                   16%
Variable Cost
Estimated Monthly              $62,260
Fixed Cost




                                                                                                         Page 10
                                             COMPANY NAME



7.3 Projected Profit and Loss

    Month-by-month assumptions for profit and loss are included in the appendix.

Table: Profit and Loss

Pro Forma Profit and
Loss
                                  2010           2011         2012
Sales                       $1,200,000     $1,300,000   $1,600,000
Direct Cost of Sales         $194,442       $200,275      $206,284
Other Costs of Sales                $0             $0           $0
Total Cost of Sales          $194,442       $200,275      $206,284

Gross Margin                $1,005,558     $1,099,725   $1,393,716
Gross Margin %                 83.80%         84.59%       87.11%


Expenses
Payroll                          $40,447     $41,661      $42,910
Marketing/Promotion                   $0          $0           $0
Depreciation                          $0          $0           $0
Office and                      $228,238    $235,085     $242,138
Administrative
Product and Supplies            $478,440    $492,793     $507,577

Total Operating                 $747,125    $769,539     $792,625
Expenses

Profit Before Interest          $258,433    $330,186     $601,091
and Taxes
EBITDA                          $258,433    $330,186     $601,091
 Interest Expense                $47,721     $44,557      $41,256
 Taxes Incurred                  $63,214     $85,689     $167,950

Net Profit                      $147,498    $199,940     $391,884
Net Profit/Sales                 12.29%      15.38%       24.49%




                                                                                   Page 11
COMPANY NAME




               Page 12
COMPANY NAME




               Page 13
                                           COMPANY NAME



7.4 Projected Cash Flow

   The following chart and table show the project cash flow for COMPANY NAME

Table: Cash Flow

Pro Forma Cash Flow
                                        2010         2011         2012
Cash Received

Cash from Operations
Cash Sales                         $1,200,000   $1,300,000   $1,600,000
Subtotal Cash from Operations      $1,200,000   $1,300,000   $1,600,000

Additional Cash Received
Sales Tax, VAT, HST/GST                   $0           $0           $0
Received
New Current Borrowing               $100,000           $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             $750,000            $0           $0
Subtotal Cash Received             $2,050,000   $1,300,000   $1,600,000

Expenditures                            2010         2011         2012

Expenditures from Operations
Cash Spending                      $1,059,123   $1,106,010   $1,213,366
Bill Payments                         $61,677           $0           $0
Subtotal Spent on Operations       $1,120,800   $1,106,010   $1,213,366

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid              $0           $0           $0
Out
Principal Repayment of Current       $26,508      $26,508      $26,508
Borrowing
Other Liabilities Principal               $0           $0           $0
Repayment
Long-term Liabilities Principal      $16,500      $16,500      $16,500
Repayment
Purchase Other Current Assets       $200,000            $0           $0
Purchase Long-term Assets             $76,000           $0           $0
Dividends                                  $0           $0           $0
Subtotal Cash Spent                $1,439,808   $1,149,018   $1,256,374

Net Cash Flow                       $610,192     $150,982     $343,626
Cash Balance                        $610,192     $761,174    $1,104,800




                                                                               Page 14
                                           COMPANY NAME




7.5 Projected Balance Sheet

   The Projected Balance Sheet is quite solid. COMPANY NAME do not project any need to acquire any new
   loans. The company is confident that it can achieve specific objectives.

Table: Balance Sheet

Pro Forma Balance
Sheet
                              2010        2011         2012
Assets

Current Assets
Cash                    $610,192      $761,174    $1,104,800
Other Current           $273,112      $273,112     $273,112
Assets
Total Current Assets    $883,304     $1,034,286   $1,377,912

Long-term Assets
Long-term Assets        $231,344      $231,344     $231,344
Accumulated             $132,261      $132,261     $132,261
Depreciation
Total Long-term           $99,083      $99,083      $99,083
Assets
Total Assets            $982,387     $1,133,369   $1,476,995




                                                                                              Page 15
                                           COMPANY NAME




Liabilities and              2010         2011         2012
Capital

Current Liabilities
Accounts Payable               $0           $0           $0
Current Borrowing        $238,620     $212,112     $185,604
Other Current                  $0           $0           $0
Liabilities
Subtotal Current         $238,620     $212,112     $185,604
Liabilities

Long-term Liabilities    $313,463     $296,963     $280,463
Total Liabilities        $552,083     $509,075     $466,067

Paid-in Capital           $754,500     $754,500     $754,500
Retained Earnings       ($465,073)   ($324,196)   ($130,206)
Earnings                  $140,877     $193,990     $386,634
Total Capital             $430,304     $624,294   $1,010,928
Total Liabilities and     $982,387   $1,133,369   $1,476,995
Capital

Net Worth                $430,304     $624,294    $1,010,928




                                                               Page 16
                                          COMPANY NAME



7.6 Business Ratios

   The table follows with our main business ratios. Industry profile ratios based on the Standard Industrial
   Classification (SIC) are shown for comparison.

Table: Ratios

Ratio Analysis
                                       2010       2011          2012       Industry
                                                                             Profile
Sales Growth                        64.21%       8.33%       23.08%         -2.88%

Percent of Total Assets
Other Current Assets                30.38%      25.62%       19.17%         28.68%
Total Current Assets                88.98%      90.70%       93.05%         80.44%
Long-term Assets                    11.02%       9.30%        6.95%         19.56%
Total Assets                       100.00%     100.00%      100.00%        100.00%

Current Liabilities                 16.53%      12.39%        8.11%         44.91%
Long-term Liabilities               34.87%      27.86%       19.68%         11.55%
Total Liabilities                   51.40%      40.25%       27.80%         56.46%
Net Worth                           48.60%      59.75%       72.20%         43.54%

Percent of Sales
Sales                              100.00%     100.00%      100.00%        100.00%
Gross Margin                        83.80%      84.59%       87.11%         12.33%
Selling, General &                  71.50%      69.21%       62.61%          5.26%
Administrative Expenses
Advertising Expenses                 0.00%       0.00%        0.00%          0.21%
Profit Before Interest and Taxes    21.54%      25.40%       37.57%          0.97%

Main Ratios
Current                                5.38        7.32        11.47           1.59
Quick                                  5.38        7.32        11.47           0.65
Total Debt to Total Assets          51.40%      40.25%       27.80%         58.97%
Pre-tax Return on Net Worth         48.23%      44.85%       54.42%          4.90%
Pre-tax Return on Assets            23.44%      26.80%       39.29%          2.01%




                                                                                                   Page 17
                                  COMPANY NAME




Additional Ratios              2010       2011         2012
Net Profit Margin            12.29%     15.38%       24.49%    n.a
Return on Equity             33.76%     31.39%       38.09%    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            1.33       1.22         1.12   n.a

Debt Ratios
Debt to Net Worth               1.06       0.67         0.38   n.a
Current Liab. to Liab.          0.32       0.31         0.29   n.a

Liquidity Ratios
Net Working Capital         $651,305   $834,746   $1,210,130   n.a
Interest Coverage               5.42       7.41        14.57   n.a

Additional Ratios
Assets to Sales                 0.75       0.82         0.89   n.a
Current Debt/Total Assets       17%        12%           8%    n.a
Acid Test                       5.38       7.32        11.47   n.a
Sales/Net Worth                 2.75       2.04         1.56   n.a
Dividend Payout                 0.00       0.00         0.00   n.a




                                                                     Page 18
                                                                            Appendix

Table: Sales Forecast

Sales Forecast
                                    Jan        Feb        Mar         Apr        May        Jun         Jul       Aug        Sep         Oct       Nov        Dec
Sales
Labor                            $25,000    $25,000    $25,000    $25,000     $25,000    $25,000    $25,000    $25,000    $25,000    $25,000    $25,000    $25,000
Supplies                         $75,000    $75,000    $75,000    $75,000     $75,000    $75,000    $75,000    $75,000    $75,000    $75,000    $75,000    $75,000
Total Sales                     $100,000   $100,000   $100,000   $100,000    $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000


Direct Cost of Sales                Jan        Feb        Mar         Apr        May        Jun         Jul       Aug        Sep         Oct       Nov        Dec
Raw Materials                    $15,000    $15,150    $15,302    $15,455     $15,610    $15,766    $15,924    $16,083    $16,244    $16,406    $16,570    $16,736
Labor                                $0         $0         $0         $0       $2,098     $2,098        $0         $0         $0         $0         $0         $0
Subtotal Direct Cost of Sales    $15,000    $15,150    $15,302    $15,455     $17,708    $17,864    $15,924    $16,083    $16,244    $16,406    $16,570    $16,736




                                                                                                                                                               Page 1
                                                       Appendix

Table: Personnel

Personnel Plan

                      Jan      Feb      Mar      Apr      May        Jun       Jul      Aug      Sep      Oct      Nov      Dec
Labor              $1,399   $1,441   $1,484   $1,529    $1,575    $1,622   $1,671    $1,721   $1,773   $1,826   $1,881   $1,937
Administrative     $1,450   $1,494   $1,539   $1,585    $1,633    $1,682   $1,732    $1,784   $1,838   $1,893   $1,950   $2,008
Total People            3        3        3        3         3         3        3         3        4        4        4        4

Total Payroll      $2,849   $2,935   $3,023   $3,114    $3,208    $3,304   $3,403    $3,505   $3,611   $3,719   $3,831   $3,945




                                                                                                                          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                              $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000
Direct Cost of Sales                $15,000    $15,150    $15,302    $15,455    $17,708    $17,864    $15,924    $16,083    $16,244    $16,406    $16,570    $16,736
Other Costs of Sales                    $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Total Cost of Sales                 $15,000    $15,150    $15,302    $15,455    $17,708    $17,864    $15,924    $16,083    $16,244    $16,406    $16,570    $16,736


Gross Margin                        $85,000    $84,850    $84,698    $84,545    $82,292    $82,136    $84,076    $83,917    $83,756    $83,594    $83,430    $83,264
Gross Margin %                      85.00%     84.85%     84.70%     84.55%     82.29%     82.14%     84.08%     83.92%     83.76%     83.59%     83.43%     83.26%



Expenses
Payroll                              $2,849     $2,935     $3,023     $3,114     $3,208     $3,304     $3,403     $3,505     $3,611     $3,719     $3,831     $3,945
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
Office and Administrative           $16,083    $16,565    $17,062    $17,574    $18,101    $18,644    $19,203    $19,779    $20,372    $20,983    $21,612    $22,260
Product and Supplies                $39,045    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945    $39,945


Total Operating Expenses            $57,977    $59,445    $60,030    $60,633    $61,254    $61,893    $62,551    $63,229    $63,928    $64,647    $65,388    $66,150


Profit Before Interest and Taxes    $27,023    $25,405    $24,668    $23,912    $21,038    $20,243    $21,525    $20,688    $19,828    $18,947    $18,042    $17,114

EBITDA                              $27,023    $25,405    $24,668    $23,912    $21,038    $20,243    $21,525    $20,688    $19,828    $18,947    $18,042    $17,114
 Interest Expense                    $4,103     $4,080     $4,057     $4,034     $4,011     $3,988     $3,965     $3,942     $3,919     $3,897     $3,874     $3,851
 Taxes Incurred                      $6,876     $6,398     $6,183     $5,963     $5,108     $4,876     $5,268     $5,024     $4,773     $4,515     $4,251     $3,979


Net Profit                          $16,044    $14,928    $14,428    $13,915    $11,919    $11,378    $12,292    $11,722    $11,136    $10,535     $9,918     $9,284
Net Profit/Sales                    16.04%     14.93%     14.43%     13.91%     11.92%     11.38%     12.29%     11.72%     11.14%     10.54%      9.92%      9.28%




                                                                                                                                                            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                                          $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000
Subtotal Cash from Operations                       $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000


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    $750,000        $0         $0         $0
Subtotal Cash Received                              $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $850,000   $100,000   $100,000   $100,000


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


Expenditures from Operations
Cash Spending                                        $83,956    $85,072    $85,572    $86,085    $88,081    $88,622    $87,708    $88,278    $88,864    $89,465    $90,082    $90,716
Bill Payments                                        $61,677         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Spent on Operations                        $145,633    $85,072    $85,572    $86,085    $88,081    $88,622    $87,708    $88,278    $88,864    $89,465    $90,082    $90,716


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 Borrowing              $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376     $1,376

Other Liabilities Principal Repayment                    $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Long-term Liabilities Principal Repayment             $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375     $1,375

Purchase Other Current Assets                            $0         $0         $0         $0         $0         $0         $0         $0    $200,000        $0         $0         $0
Purchase Long-term Assets                                $0         $0         $0         $0         $0         $0         $0         $0         $0     $76,000        $0         $0
Dividends                                                $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent                                 $148,384    $87,823    $88,323    $88,836    $90,832    $91,373    $90,459    $91,029   $291,615   $168,216    $92,833    $93,467




                                                                                                                                                                             Page 4
                                                         Appendix

Net Cash Flow   ($48,384)    $12,177     $11,677     $11,164     $9,168    $8,627    $9,541    $8,971   $558,385   ($68,216)     $7,167     $6,533
Cash Balance    ($48,384)   ($36,207)   ($24,531)   ($13,367)   ($4,199)   $4,428   $13,969   $22,940   $581,325   $513,109    $520,276   $526,809




                                                                                                                                          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                                           $0     ($48,384)    ($36,207)    ($24,531)    ($13,367)     ($4,199)      $4,428      $13,969      $22,940     $581,325     $513,109     $520,276     $526,809
Other Current Assets                      $73,112       $73,112      $73,112      $73,112      $73,112     $73,112      $73,112      $73,112      $73,112     $273,112     $273,112     $273,112     $273,112
Total Current Assets                      $73,112       $24,728      $36,905      $48,581      $59,745     $68,913      $77,540      $87,081      $96,052     $854,437     $786,221     $793,388     $799,921

Long-term Assets
Long-term Assets                         $155,344     $155,344     $155,344     $155,344     $155,344     $155,344     $155,344     $155,344     $155,344     $155,344     $231,344     $231,344     $231,344
Accumulated Depreciation                 $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261     $132,261

Total Long-term Assets                    $23,083      $23,083      $23,083      $23,083      $23,083      $23,083      $23,083      $23,083      $23,083      $23,083      $99,083      $99,083      $99,083
Total Assets                              $96,195      $47,811      $59,988      $71,664      $82,828      $91,996     $100,623     $110,164     $119,135     $877,520     $885,304     $892,471     $899,004

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

Current Liabilities
Accounts Payable                          $61,677           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Current Borrowing                        $165,128     $163,752     $162,376     $161,000     $159,624     $158,248     $156,872     $155,496     $154,120     $152,744     $151,368     $149,992     $148,616
Other Current Liabilities                      $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Subtotal Current Liabilities             $226,805     $163,752     $162,376     $161,000     $159,624     $158,248     $156,872     $155,496     $154,120     $152,744     $151,368     $149,992     $148,616


Long-term Liabilities                    $329,963     $328,588     $327,213     $325,838     $324,463     $323,088     $321,713     $320,338     $318,963     $317,588     $316,213     $314,838     $313,463
Total Liabilities                        $556,768     $492,340     $489,589     $486,838     $484,087     $481,336     $478,585     $475,834     $473,083     $470,332     $467,581     $464,830     $462,079

Paid-in Capital                             $4,500       $4,500       $4,500       $4,500       $4,500       $4,500       $4,500       $4,500       $4,500     $754,500     $754,500     $754,500     $754,500
Retained Earnings                       ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)   ($465,073)

Earnings                                        $0      $16,044      $30,972      $45,399      $59,314      $71,233      $82,611      $94,903     $106,625    $117,761     $128,296     $138,214     $147,498
Total Capital                           ($460,573)   ($444,529)   ($429,601)   ($415,174)   ($401,259)   ($389,340)   ($377,962)   ($365,670)   ($353,948)    $407,188     $417,723     $427,641     $436,925

Total Liabilities and Capital             $96,195      $47,811      $59,988      $71,664      $82,828      $91,996     $100,623     $110,164     $119,135     $877,520     $885,304     $892,471     $899,004



Net Worth                               ($460,573)   ($444,529)   ($429,601)   ($415,174)   ($401,259)   ($389,340)   ($377,962)   ($365,670)   ($353,948)    $407,188     $417,723     $427,641     $436,925




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                                                               Appendix


								
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