[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
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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.
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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
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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.
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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.
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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.
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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
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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.
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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
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COMPANY NAME
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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.
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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.
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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%
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COMPANY NAME
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COMPANY NAME
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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
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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
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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
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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%
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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