Business Plan for Dredge Boats

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This Business Plan for a Dredging 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.

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									This Business Plan for a Dredging 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



                                 CITY, STATE ZIP CODE

                                         Tel.

                                         Fax:

                                        Email:




                         BUSINESS PLAN




© Copyright 2012 Docstoc Inc.                           1
                                                        Confidentiality Agreement

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

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm
or damage to COMPANY NAME.

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

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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




© Copyright 2012 Docstoc Inc.                                                                                   2
                                                                  Table of Contents



1.0 Executive Summary .................................................................................................................................. 1
   1.1 Objectives ............................................................................................................................................ 1
   1.2 Mission ................................................................................................................................................ 1
   1.3 Keys to Success ................................................................................................................................... 2
2.0 Company Summary .................................................................................................................................. 2
   2.1 Company Ownership ............................................................................................................................ 2
   2.2 Company History .................................................................................................................................. 2
      Table: Past Performance ........................................................................................................................ 2
3.0 Products and Services .............................................................................................................................. 3
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 SWOT Analysis .................................................................................................................................... 6
      5.1.1 Strengths ...................................................................................................................................... 6
   Farm Characteristics .................................................................................................................................. 7
      5.1.2 Weaknesses.................................................................................................................................. 8
      5.1.3 Opportunities ................................................................................................................................. 8
      5.1.4 Threats ......................................................................................................................................... 9
   5.2 Competitive Edge ................................................................................................................................. 9
   5.3 Marketing Strategy................................................................................................................................ 9
   5.4 Sales Strategy ...................................................................................................................................... 9
      5.4.1 Sales Forecast .............................................................................................................................. 9
         Table: Sales Forecast......................................................................................................................... 9
   5.5 Milestones ......................................................................................................................................... 11
   6.1 Personnel Plan ................................................................................................................................... 11
      7.0 Financial Plan ................................................................................................................................ 11
   7.1 Important Assumptions ....................................................................................................................... 11
   7.2 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.................................................................................................................................. 19
      Table: Ratios ....................................................................................................................................... 19




                                                                                                                                                      Page 1
                                                            COMPANY NAME




1.0 Executive Summary

    By focusing on its strengths, its key customers, and the underlying values they need, COMPANY NAME will increase sales to more
    than $1 million in three years, while focusing on cash management and working capital.

    This business plan leads the way. It renews the Company's vision and strategic focus: adding value to our target market segments,
    and reinforcing the ties with businesses in our local markets. It also provides the step-by-step plan for improving sales, gross margin,
    and profitability.

    This plan includes this summary, chapters on the Company's products and services, market focus, action plans and forecasts,
    management team, and the financial plan.




1.1 Objectives

    1. To purchase building for manufacturing dredge boats.
    2. To purchase new equipment
    3. To launch new campaigns for marketing and advertising,
    4. To update patent on new designs, expansion of business, etc.
    5. To be recognized as the most progressive portable shallow dredging enterprise with our innovative solutions and patented
    systems.

1.2 Mission

    COMPANY NAME provides an affordable environmental solution for aquatic sedimentary removal for clients around the world. The
    company will be recognized as the most progressive portable shallow dredging enterprise with our innovative solutions and patented
    systems. COMPANY NAME will always incorporate the latest green technology to provide our stakeholders the unique profit
    opportunities from this emerging market. The Company values their employees/independent contractors and includes them
    throughout the decision making process. COMPANY NAME. We actively support organizations that promote education,
    environmental awareness, and other community needs. COMPANY NAME strives to uphold Rotary International’s Four-Way-Test in
    all of its business practices.

                                                                                                                                  Page 1
                                                            COMPANY NAME




1.3 Keys to Success

    Keys to success for the company will include:

    1.   Maintaining a reputable and untarnished reputation in the community.
    2.   Quality care and product.
    3.   Competitive pricing.
    4.   To provide the latest dredge equipment green technology.

2.0 Company Summary

    Owner/inventor OWNER’S NAME has been a contractor in the state of Florida for over 25 years. He is currently certified as a
    General Contractor; Roofing Contractor; Plumbing, Fuel Gas, Irrigation, and Solar Contractor; and Specialty Structure Contractor.
    Most of the past 25 years of experience was spent in the aluminum fabrications industry.

    Co-owner, CO-OWNER’S NAME, has been an entrepreneur for over 25 years. [INSERT BIO]

    COMPANY NAME’S dredge boats are all aluminum construction. Mr. Phillips spent the last 4 years dealing with the Department of
    Environmental Protection (DEP) to design a dredge with the least environmental impact when removing muck from rivers, lakes,
    canals, marinas, golf course ponds and other bodies of water.

2.1 Company Ownership

    The company, COMPANY NAME is a Sub Chapter S Corporation. COMPANY NAME is co-owned by OWNER’S NAME.

2.2 Company History

    [INSERT COMPANY HISTORY]

Table: Past Performance

Past Performance
                                                       2007             2008           2009
Sales                                                  $0               $0             $23,374
Gross Margin                                           $0               $0             $0
Gross Margin %                                         0.00%            0.00%          0.00%
Operating Expenses                                     $0               $0             $28,826

Balance Sheet
                                                       2007             2008           2009
Current Assets
Cash                                                   $0               $0             $490
Other Current Assets                                   $0               $0             $80,000
Total Current Assets                                   $0               $0             $80,490

Long-term Assets
Long-term Assets                                       $0               $0             $4,000,000
Accumulated Depreciation                               $0               $0             $0
Total Long-term Assets                                 $0               $0             $4,000,000

Total Assets                                           $0               $0             $4,080,490


                                                                                                                            Page 2
                                                  COMPANY NAME




Current Liabilities
Current Borrowing                            $0            $0          $0
Other Current Liabilities (interest free)    $0            $0          $0

Total Current Liabilities                    $0            $0          $0

Long-term Liabilities                        $0            $0          $0
Total Liabilities                            $0            $0          $0

Paid-in Capital                              $0            $0          $0
Retained Earnings                            $0            $0          $4,080,490
Earnings                                     $0            $0          $0
Total Capital                                $0            $0          $4,080,490

Total Capital and Liabilities                $0            $0          $4,080,490




3.0 Products and Services

     COMPANY NAME was started by co-owner/inventor OWNER’S NAME. OWNER’S NAME invented and designed a small,
     lightweight, and affordable dredge boat for shallow water.

     [INSERT PRODUCT DETAILS AND SPECIFICATIONS]




                                                                                                     Page 3
                                                             COMPANY NAME




4.0 Market Analysis Summary

    This industry comprises establishments primarily engaged in heavy and engineering construction projects (excluding highway, street,
    bridge, and distribution line construction). The work performed may include new work, reconstruction, rehabilitation, and repairs.
    Specialty trade contractors are included in this group if they are engaged in activities primarily related to engineering construction
    projects (excluding highway, street, bridge, distribution line, oil and gas structure, and utilities building and structure construction).
    Construction projects involving water resources (e.g., dredging and land drainage), development of marine facilities, and projects
    involving open space improvement (e.g., parks and trails) are included in this industry.

    Dredging is an excavation activity or operation usually carried out at least partly underwater, in shallow seas or fresh water areas with
    the purpose of gathering up bottom sediments and disposing of them at a different location.

    This technique is often used to keep waterways navigable. It is also used as a way to replenish sand on some public beaches, where
    too much sand has been lost because of coastal erosion. Dredging is also used as a technique for fishing for certain species of edible
    clams and crabs, see fishing dredge.

    A dredge is a device for scraping or sucking the seabed, used for dredging.

    A dredger is a ship or boat equipped with a dredge.

    Sometimes in American usage a dredger is called a dredge.

    The process of dredging creates spoils (excess material), which are carried away from the dredged area. Dredging can produce
    materials for land reclamation or other purposes (usually construction-related), and has also historically played a significant role in
    gold mining. Dredging can create disturbance in aquatic ecosystems, often with adverse impacts.

    Without the many and almost non-stop dredging operations worldwide, much of the world's commerce would be impaired, often within
    a few months, since much of world's goods travel by ship, and need to access harbors or seas via channels. Recreational boating
    also would be constrained to the smallest vessels. The majority of marine dredging operations (and the disposal of the dredged
    material) will require that appropriate licenses are obtained from the relevant regulatory authorities, and dredging is usually carried out
    by (or for) harbor companies or corresponding government agencies.

    The agriculture industry and other industries are being mandated to clean up their waste ponds due to the Clean Water Act.
    COMPANY NAME actually had invented and created, including already having built Muck Master's Dredge, which can be used in
    shallow waters. There are 3,800 waste ponds in North Carolina alone.

4.1 Market Segmentation

    COMPANY NAME has a focus on meeting the local and nationwide need for offering a more environmentally-friendly dredging
    equipment alternative to current dredging equipment out there.




                                                                                                                                     Page 4
                                                             COMPANY NAME




Table: Market Analysis

Market Analysis

                                        2010          2011           2012            2013             2014
Potential Customers      Growth                                                                                       CAGR

Dredge Sales             3%             82,300        84,769         87,312          89,931           92,629          3.00%
Dredging Services        3%             13,901        14,318         14,748          15,190           15,646          3.00%

Total                    3.00%          96,201        99,087         102,060         105,121          108,275         3.00%




4.2 Target Market Segment Strategy

    The target market for COMPANY NAME is for businesses and individuals living near bodies of water who are interested in keeping it
    clean and to dredging contractors and service providers alike. Establishing that the invention of the dredge tool created by OWNER’S
    NAME is coinciding with the on-going green Earth movement and the convenience of alternative to the smaller size of the tool is the
    key type of marketing strategy utilized. Maintaining and further enhancing its reputation in the market is crucial to gaining additional
    market share of this target market.

4.3 Service Business Analysis

    Excavation processes can be as simple as hauling the contaminated soil to a regulated landfill, but can also involves aerating the
    excavated material in the case of volatile organic compounds (VOCs). Recent advancements in bioaugmentation and biostimulation
    of the excavated material have also proven to be able to remediate semi-volatile organic compounds (SVOCs) onsite.[1] If the
    contamination affects a river or bay bottom, then dredging of bay mud or other silty clays containing contaminants may be conducted.
    Recently, ExSitu Chemical oxidation has also been utilized in the remediation of contaminated soil. This process involves the
    excavation of the contaminated area into large burned areas where they are treated using chemical oxidation methods.



                                                                                                                                  Page 5
                                                           COMPANY NAME




    The Clean Water Act is the primary federal law in the United States governing water pollution. Commonly abbreviated as the CWA,
    the act established the goals of eliminating releases to water of high amounts of toxic substances, eliminating additional water
    pollution by 1985, and ensuring that surface waters would meet standards necessary for human sports and recreation by 1983.

    The principal body of law currently in effect is based on the Federal Water Pollution Control Amendments of 1972, which significantly
    expanded and strengthened earlier legislation. Major amendments were enacted in the Clean Water Act of 1977 and the Water
    Quality Act of 1987.All waters with a "significant nexus" to "navigable waters" are covered under the CWA; however, the phrase
    "significant nexus" remains open to judicial interpretation and considerable controversy. The 1972 statute frequently uses the term
    "navigable waters," but also defines the term as "waters of the United States, including the territorial seas." Some regulations
    interpreting the 1972 law have included water features such as intermittent streams, playa lakes, prairie potholes, sloughs and
    wetlands as "waters of the United States".

    In 2006 the Supreme Court clarified that the term "waters of the United States".

    COMPANY NAME feels that even though some of the controversy of the previously and currently used methods can be remedied with
    the company's drudge tools and equipment, which can service all of the United States.

4.3.1 Competition and Buying Patterns

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

5.0 Strategy and Implementation Summary

    We have clearly defined the target market and have differentiated ourselves by offering a unique solution to our customers’ needs.
    Our sales and marketing strategy will be a combination of targeted mass marketing techniques as well as a focused direct sales team
    approach. Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below
    are achieved.

5.1 SWOT Analysis

    The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and
    threats facing COMPANY NAME.

5.1.1 Strengths

        Strong relationships with clientele, special arrangements, arrangements, flexibility, and response to special product
         requirements.
        Excellent and stable staff, offering personalized customer service.
        Strong merchandising and product presentation.
        Patent pending on a revolutionary dredge tool which is forward-thinking for the environment that adds interest, stability and
         revenue.
        Years of experience in the industry and the community.




                                                                                                                                Page 6
                                                             COMPANY NAME




    Farm Characteristics

1997, 2002 and 2007 Census of Agriculture

                                                       1997                 2002         2007
Approximate total land area (acres)                    34,558,261           34,513,162   34,313,428
  Total farmland (acres)                               10,659,777           10,414,877   9,231,570
    Percent of total land area                         30.8                 30.2         26.9

    Cropland (acres)                                   3,610,304            3,715,257    2,953,340
      Percent of total farmland                        33.9                 35.7         32.0
      Percent in pasture                               24.0                 29.7         19.4
      Percent irrigated                                48.2                 45.7         48.2

       Harvested Cropland (acres)                      2,434,379            2,313,537    2,112,129

    Woodland (acres)                                   2,214,235            2,485,733    2,330,336
     Percent of total farmland                         20.8                 23.9         25.2
     Percent in pasture                                50.7                 62.7         56.1

    Pastureland (acres)                                4,184,037            3,400,193    3,221,202
      Percent of total farmland                        39.3                 32.6         34.9

    Land       in       house      lots,     ponds,    651,201              813,694      726,692
    roads, wasteland, etc. (acres)
      Percent of total farmland                        6.1                  7.8          7.9

Conservation practices
    Farmland         in       conservation        or   140,132              97,267       224,867
    wetlands            reserve            programs
    (acres)

Average farm size (acres)                              233                  236          195

Farms by size (percent)
      1 to 99 acres                                    76.9                 76.5         79.7
      100 to 499 acres                                 16.7                 16.7         14.8
      500 to 999 acres                                 2.9                  3.0          2.6
      1000 to 1,999 acres                              1.6                  1.9          1.4
      2,000 or more acres                              1.8                  1.9          1.5

Farms by sales (percent)
      Less than $9,999                                 64.9                 63.4         65.4
      $10,000 to $49,999                               18.2                 19.4         18.5
      $50,000 to $99,999                               5.1                  5.6          5.1
      $100,000 to $499,999                             7.4                  7.3          6.7
      More than $500,000                               4.3                  4.2          4.4




                                                                                                      Page 7
                                                                 COMPANY NAME




Tenure of farmers
    Full owner (farms)                                     36,240                   36,593                     39,746
       Percent of total                                    79.1                     83.0                       83.7

     Part owner (farms)                                    6,667                    5,510                      6,050
       Percent of total                                    14.6                     12.5                       12.7

     Tenant owner (farms)                                  2,901                    1,978                      1,667
       Percent of total                                    6.3                      4.5                        3.5

Farm organization
    Individuals/family,                            sole    37,138                   37,119                     39,792
    proprietorship (farms)
       Percent of total                                    81.1                     84.2                       83.8

     Family-held                          corporations     4,266                    3,509                      4,178
     (farms)
        Percent of total                                   9.3                      8.0                        8.8

     Partnerships (farms)                                  3,212                    2,429                      2,417
       Percent of total                                    7.0                      5.5                        5.1

     Non-family corporations (farms)                       723                      567                        515
       Percent of total                                    1.6                      1.3                        1.1

     Others         -      cooperative,   estate     or    469                      457                        561
     trust, institutional, etc. (farms)
        Percent of total                                   1.0                      1.0                        1.2

Characteristics of principal farm operators
    Average operator age (years)                           56.3                     57.0                       58.4
    Percent        with       farming      as      their   41.9                     52.2                       44.0
     primary occupation
    Men                                                    38,997                   35,965                     37,034
    Women                                                  6,811                    8,116                      10,429


5.1.2 Weaknesses

         Access to additional operating capital.
         Lack of advertising in the industry, which would provide the service and the product more exposure
         Lack of funds for the purchase of a facility to house equipment, tools and sub-contractors.

5.1.3 Opportunities

         Growing market with a significant percentage of our target market still not knowing COMPANY NAME exist.
         Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
         Promising activity from high levels of new sales to dredge rental companies.
         Changes in trends can initiate notoriety of offering a "green" dredge tool and equipment
         Internet potential for selling products to other markets.



                                                                                                                        Page 8
                                                            COMPANY NAME




5.1.4 Threats

        The downturn in the economy could impact the initial new sales streak.
        Competition from a national store; or a store with greater financing or product resources could enter the market.

5.2 Competitive Edge

    COMPANY NAME wants to sell a revolutionary newly invented dredges and equipment nationwide and worldwide. The company
    wants to also supply their dredges to equipment rental companies nationwide. Some of the target markets are the agriculture
    business such as hog farms, dairy farms and the like that produce a huge amount of waste. Other target markets are golf courses,
    marinas, mining industry, waterfront communities and much more. The possibilities are enormous, especially with dredge
    equipment that is not currently offered anywhere else.

5.3 Marketing Strategy

    The following sections detail the marketing strategy for COMPANY NAME

5.4 Sales Strategy

    The sales forecast monthly summary is included in the appendix. The annual sales projections are included here in Table 5.2.

5.4.1 Sales Forecast

    The first month sales will open strongly, because of the advance buzz created by our planned marketing, business contacts and pre-
    planned distributors. COMPANY NAME believes that with the funding made available, the sales would increase significantly with the
    new avenues of added exposure and capabilities.

Table: Sales Forecast

Sales Forecast
                                                 2010                   2011                        2012
Sales
Dredging Equipment Sales                         $240,000               $400,000                    $700,000

Dredging Service Sales                           $159,996               $600,000                    $1,050,000

Total Sales                                      $399,996               $1,000,000                  $1,750,000

Direct Cost of Sales                             2010                   2011                        2012
Dredge Boat, Motor and Trailer                   $300,000               $309,000                    $318,270

Dredge Services                                  $28,824                $29,689                     $30,579
Subtotal Direct Cost of Sales                    $328,824               $338,689                    $348,849




                                                                                                                               Page 9
COMPANY NAME




               Page 10
                                                          COMPANY NAME




5.5 Milestones

    The Company's detailed milestones 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                    Department
Building Expense (one-time/purchase)                7/1/2010     11/1/2010     $192,940                                Owners
Equipment Expense (one-time)                        7/1/2010     8/1/2010      $28,000                                 Owners
Utilities                                           7/1/2010     8/1/2010      $4,000                                  Owners
Advertisement                                       7/1/2010     12/31/2010    $70,000                                 Owners
Phone/Fax                                           7/1/2010     8/1/2010      $360                                    Owners
Insurance                                           7/1/2010     8/1/2010      $1,200                                  Owners

Legal                                               7/1/2010     8/1/2010      $7,000                                  Owners
Office Equipment                                    7/1/2010     8/1/2010      $1,500                                  Owners
Office Supplies                                     7/1/2010     8/1/2010      $500                                    Owners
Repair/Maintenance                                  7/1/2010     12/31/2010    $1,500                                  Owners
Inventory                                           7/1/2010     8/1/2010      $2,500                                  Owners
Travel                                              7/1/2010     12/31/2010    $3,000                                  Owners
Auto/Truck Expense                                  7/1/2010     12/31/2010    $4,800                                  Owners

   Labor                                            7/1/2010     7/1/2011      $83,200                                 Owners

   Property Tax                                     7/1/2010     12/31/2010    $2,500                                  Owners
   Sub-Contractors                                  7/1/2010     7/1/2011      $25,000                                 Owners

Totals                                                                         $428,000


6.0 Management Summary

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

6.1 Personnel Plan

    The following table is the personnel plan for COMPANY NAME. It is currently operated by the co-owners and as the need grows, the
    addition of sub-contractors is what is desired. The Company is not planning on taking a salary for employees until a profit is made.

7.0 Financial Plan
     The following subtopics help present the financial plan COMPANY NAME.

7.1 Important Assumptions

    The following table shows the General Assumptions for COMPANY NAME.




                                                                                                                             Page 11
                                                       COMPANY NAME




7.2 Break-even Analysis

    Table 7.3 summarizes the break-even analysis, including monthly units and sales break-even points for COMPANY NAME.




                                                                                                                          Page 12
                                                          COMPANY NAME




7.3 Projected Profit and Loss

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

Table: Profit and Loss

Pro Forma Profit and Loss
                                                       2010                   2011                      2012
Sales                                                  $399,996               $1,000,000                $1,750,000
Direct Cost of Sales                                   $328,824               $338,689                  $348,849
Other Costs of Sales                                   $0                     $0                        $0
Total Cost of Sales                                    $328,824               $338,689                  $348,849


Gross Margin                                           $71,172                $661,311                  $1,401,151
Gross Margin %                                         17.79%                 66.13%                    80.07%




Expenses
Payroll                                                $0                     $0                        $0
Marketing/Promotion                                    $70,000                $72,100                   $74,263
Depreciation                                           $0                     $0                        $0
Fuel & Oil                                             $306                   $315                      $325
Insurance                                              $901                   $928                      $956
License & Permits                                      $4,900                 $5,047                    $5,198
Supplies                                               $3,090                 $3,183                    $3,278
Travel                                                 $19,144                $19,718                   $20,310


Total Operating Expenses                               $98,341                $101,291                  $104,330


Profit Before Interest and Taxes                       ($27,169)              $560,020                  $1,296,821
EBITDA                                                 ($27,169)              $560,020                  $1,296,821
 Interest Expense                                      $0                     $0                        $0
 Taxes Incurred                                        $0                     $0                        $0


Net Profit                                             ($27,169)              $560,020                  $1,296,821
Net Profit/Sales                                       -6.79%                 56.00%                    74.10%




                                                                                                                             Page 13
COMPANY NAME




               Page 14
COMPANY NAME




               Page 15
                                                          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                                           $399,996           $1,000,000   $1,750,000
Subtotal Cash from Operations                        $399,996           $1,000,000   $1,750,000


Additional Cash Received
Sales Tax, VAT, HST/GST Received                     $240               $600         $1,050
New Current Borrowing                                $0                 $0           $0

New Other Liabilities (interest-free)                $0                 $0           $0
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                              $428,000           $0           $0
Subtotal Cash Received                               $828,236           $1,000,600   $1,751,050

Expenditures                                         2010               2011         2012

Expenditures from Operations
Cash Spending                                        $427,165           $439,980     $453,179
Subtotal Spent on Operations                         $427,165           $439,980     $453,179

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

Other Liabilities Principal Repayment                $0                 $0           $0

Long-term Liabilities Principal Repayment            $0                 $0           $0

Purchase Other Current Assets                        $0                 $0           $0

Purchase Long-term Assets                            $0                 $0           $0

Dividends                                            $0                 $0           $0
Subtotal Cash Spent                                  $427,165           $439,980     $453,179

Net Cash Flow                                        $401,071           $560,620     $1,297,871
Cash Balance                                         $401,561           $962,181     $2,260,052

                                                                                                  Page 16
                                                        COMPANY NAME




7.5 Projected Balance Sheet

    Estimated balance sheets for the years 2010-2012 are provided below.

Table: Balance Sheet

Pro Forma Balance Sheet
                                  2010                  2011               2012
Assets


Current Assets
Cash                              $401,561              $962,181           $2,260,052
Other Current Assets              $80,000               $80,000            $80,000
Total Current Assets              $481,561              $1,042,181         $2,340,052


Long-term Assets
Long-term Assets                  $4,000,000            $4,000,000         $4,000,000
Accumulated Depreciation          $0                    $0                 $0
Total Long-term Assets            $4,000,000            $4,000,000         $4,000,000
Total Assets                      $4,481,561            $5,042,181         $6,340,052




                                                                                        Page 17
                                             COMPANY NAME




Liabilities and Capital         2010         2011           2012


Current Liabilities
Current Borrowing               $0           $0             $0
Other Current Liabilities       $240         $840           $1,890
Subtotal Current Liabilities    $240         $840           $1,890




Long-term Liabilities           $0           $0             $0




Total Liabilities               $240         $840           $1,890




Paid-in Capital                 $428,000     $428,000       $428,000


Retained Earnings               $4,080,490   $4,053,321     $4,613,341


Earnings                        ($27,169)    $560,020       $1,296,821

Total Capital                   $4,481,321   $5,041,341     $6,338,162


Total Liabilities and Capital   $4,481,561   $5,042,181     $6,340,052




Net Worth                       $4,481,321   $5,041,341     $6,338,162




                                                                         Page 18
                                                           COMPANY NAME




7.6 Business Ratios

     The company's projected business ratios are provided in the table below.

Table: Ratios

Ratio Analysis
                                             2010             2011              2012       Industry Profile
Sales Growth                                 1611.29%         150.00%           75.00%     5.73%

Percent of Total Assets
Other Current Assets                         1.79%            1.59%             1.26%      29.71%
Total Current Assets                         10.75%           20.67%            36.91%     55.49%
Long-term Assets                             89.25%           79.33%            63.09%     44.51%
Total Assets                                 100.00%          100.00%           100.00%    100.00%

Current Liabilities                          0.01%            0.02%             0.03%      24.55%
Long-term Liabilities                        0.00%            0.00%             0.00%      31.95%
Total Liabilities                            0.01%            0.02%             0.03%      56.50%
Net Worth                                    99.99%           99.98%            99.97%     43.50%

Percent of Sales
Sales                                        100.00%          100.00%           100.00%    100.00%
Gross Margin                                 17.79%           66.13%            80.07%     27.29%
Selling, General & Administrative            24.59%           10.13%            5.96%      13.53%
Expenses
Advertising Expenses                         17.50%           7.21%             4.24%      0.22%
Profit Before Interest and Taxes             -6.79%           56.00%            74.10%     3.17%

Main Ratios
Current                                      2,006.52         1,240.70          1,238.12   1.61
Quick                                        2,006.52         1,240.70          1,238.12   1.03
Total Debt to Total Assets                   0.01%            0.02%             0.03%      72.82%
Pre-tax Return on Net Worth                  -0.61%           11.11%            20.46%     9.25%
Pre-tax Return on Assets                     -0.61%           11.11%            20.45%     2.51%




                                                                                                              Page 19
                                       COMPANY NAME




Additional Ratios           2010         2011         2012
Net Profit Margin           -6.79%       56.00%       74.10%       n.a
Return on Equity            -0.61%       11.11%       20.46%       n.a

Activity Ratios
Accounts Payable Turnover   12.44        12.17        12.17        n.a
Total Asset Turnover        0.09         0.20         0.28         n.a

Debt Ratios
Debt to Net Worth           0.00         0.00         0.00         n.a
Current Liab. to Liab.      1.00         1.00         1.00         n.a

Liquidity Ratios
Net Working Capital         $481,321     $1,041,341   $2,338,162   n.a
Interest Coverage           0.00         0.00         0.00         n.a

Additional Ratios
Assets to Sales             11.20        5.04         3.62         n.a
Current Debt/Total Assets   0%           0%           0%           n.a
Acid Test                   2,006.52     1,240.70     1,238.12     n.a
Sales/Net Worth             0.09         0.20         0.28         n.a
Dividend Payout              0.00        0.00         0.00         n.a




                                                                         Page 20
                                                                    Appendix

Table: Sales Forecast

Sales Forecast
                          Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Sales
Dredging      Equipment   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000   $20,000
Sales
Dredging Service Sales    $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333   $13,333
Total Sales               $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333   $33,333

Direct Cost of Sales      Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Dredge Boat, Motor and    $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000   $25,000
Trailer
Dredge Services           $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402    $2,402
Subtotal Direct Cost of   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402   $27,402
Sales




                                                                                                                                                  Page 1
                                           Appendix

Table: Personnel

Personnel Plan
                   Jan   Feb   Mar   Apr   May    Jun   Jul   Aug   Sep   Oct   Nov   Dec
Richard Phillips   $0    $0    $0    $0    $0     $0    $0    $0    $0    $0    $0    $0
Cheryl Phillips    $0    $0    $0    $0    $0     $0    $0    $0    $0    $0    $0    $0
Total People       2     2     2     2     2      2     2     2     2     2     2     2


Total Payroll      $0    $0    $0    $0    $0     $0    $0    $0    $0    $0    $0    $0




                                                                                            Page 2
                                                                                         Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
                                         Jan        Feb        Mar        Apr        May        Jun        Jul        Aug        Sep        Oct        Nov        Dec
Sales                                    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333
Direct Cost of Sales                     $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402
Other Costs of Sales                     $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Total Cost of Sales                      $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402    $27,402

Gross Margin                             $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931     $5,931
Gross Margin %                           17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%     17.79%



Expenses
Payroll                                  $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Marketing/Promotion                      $5,837     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833     $5,833
Depreciation                             $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Fuel & Oil                               $20        $21        $22        $23        $24        $25        $26        $27        $28        $29        $30        $31
Insurance                                $64        $66        $68        $70        $72        $74        $76        $78        $80        $82        $84        $87
License & Permits                  15%   $4,900     $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Supplies                           15%   $217       $224       $231       $238       $245       $252       $260       $268       $276       $284       $293       $302
Travel                                   $1,349     $1,389     $1,431     $1,474     $1,518     $1,564     $1,611     $1,659     $1,709     $1,760     $1,813     $1,867

Total Operating Expenses                 $12,387    $7,533     $7,585     $7,638     $7,692     $7,748     $7,806     $7,865     $7,926     $7,988     $8,053     $8,120

Profit Before Interest and Taxes         ($6,456)   ($1,602)   ($1,654)   ($1,707)   ($1,761)   ($1,817)   ($1,875)   ($1,934)   ($1,995)   ($2,057)   ($2,122)   ($2,189)
EBITDA                                   ($6,456)   ($1,602)   ($1,654)   ($1,707)   ($1,761)   ($1,817)   ($1,875)   ($1,934)   ($1,995)   ($2,057)   ($2,122)   ($2,189)
 Interest Expense                        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
 Taxes Incurred                          $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0

Net Profit                               ($6,456)   ($1,602)   ($1,654)   ($1,707)   ($1,761)   ($1,817)   ($1,875)   ($1,934)   ($1,995)   ($2,057)   ($2,122)   ($2,189)
Net Profit/Sales                         -19.37%    -4.81%     -4.96%     -5.12%     -5.28%     -5.45%     -5.63%     -5.80%     -5.99%     -6.17%     -6.37%     -6.57%




                                                                                                                                                                             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                                          $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333
Subtotal Cash from Operations                       $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333    $33,333

Additional Cash Received
Sales Tax, VAT, HST/GST Received            0.06%   $20        $20        $20        $20        $20        $20        $20        $20        $20        $20        $20        $20
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                             $428,000   $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Received                              $461,353   $33,353    $33,353    $33,353    $33,353    $33,353    $33,353    $33,353    $33,353    $33,353    $33,353    $33,353

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

Expenditures from Operations
Cash Spending                                       $39,789    $34,935    $34,987    $35,040    $35,094    $35,150    $35,208    $35,267    $35,328    $35,390    $35,455    $35,522
Subtotal Spent on Operations                        $39,789    $34,935    $34,987    $35,040    $35,094    $35,150    $35,208    $35,267    $35,328    $35,390    $35,455    $35,522

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                      $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Borrowing
Other Liabilities Principal Repayment               $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Long-term         Liabilities   Principal           $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
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                                 $39,789    $34,935    $34,987    $35,040    $35,094    $35,150    $35,208    $35,267    $35,328    $35,390    $35,455    $35,522

Net Cash Flow                                       $421,564   ($1,582)   ($1,634)   ($1,687)   ($1,741)   ($1,797)   ($1,855)   ($1,914)   ($1,975)   ($2,037)   ($2,102)   ($2,169)
Cash Balance                                        $422,054   $420,472   $418,838   $417,151   $415,410   $413,613   $411,758   $409,844   $407,869   $405,832   $403,730   $401,561

                                                                                                                                                                             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           $490         $422,054     $420,472     $418,838     $417,151     $415,410     $413,613     $411,758     $409,844     $407,869     $405,832     $403,730     $401,561
Other          $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000      $80,000
Current
Assets
Total          $80,490      $502,054     $500,472     $498,838     $497,151     $495,410     $493,613     $491,758     $489,844     $487,869     $485,832     $483,730     $481,561
Current
Assets

Long-term
Assets
Long-term      $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000
Assets
Accumulated    $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Depreciation
Total Long-    $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000   $4,000,000
term Assets
Total Assets   $4,080,490   $4,502,054   $4,500,472   $4,498,838   $4,497,151   $4,495,410   $4,493,613   $4,491,758   $4,489,844   $4,487,869   $4,485,832   $4,483,730   $4,481,561




                                                                                                                                                                            Page 5
                                                                                        Appendix


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

Current
Liabilities
Current         $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Borrowing
Other           $0           $20          $40          $60          $80          $100         $120         $140         $160         $180         $200         $220         $240
Current
Liabilities
Subtotal        $0           $20          $40          $60          $80          $100         $120         $140         $160         $180         $200         $220         $240
Current
Liabilities

Long-term       $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Liabilities
Total           $0           $20          $40          $60          $80          $100         $120         $140         $160         $180         $200         $220         $240
Liabilities

Paid-in         $0           $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000     $428,000
Capital
Retained        $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490   $4,080,490
Earnings
Earnings        $0           ($6,456)     ($8,058)     ($9,712)     ($11,419)    ($13,180)    ($14,997)    ($16,872)    ($18,806)    ($20,801)    ($22,858)    ($24,980)    ($27,169)
Total Capital   $4,080,490   $4,502,034   $4,500,432   $4,498,778   $4,497,071   $4,495,310   $4,493,493   $4,491,618   $4,489,684   $4,487,689   $4,485,632   $4,483,510   $4,481,321
Total           $4,080,490   $4,502,054   $4,500,472   $4,498,838   $4,497,151   $4,495,410   $4,493,613   $4,491,758   $4,489,844   $4,487,869   $4,485,832   $4,483,730   $4,481,561
Liabilities
and Capital

Net Worth       $4,080,490   $4,502,034   $4,500,432   $4,498,778   $4,497,071   $4,495,310   $4,493,493   $4,491,618   $4,489,684   $4,487,689   $4,485,632   $4,483,510   $4,481,321




                                                                                                                                                                             Page 6
                                                               Appendix


								
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