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Business Plan for Fertilizer

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Business Plan for Fertilizer Powered By Docstoc
					This Business Plan for a Fertilizer business allows entrepreneurs or business owners to
create a comprehensive and professional business plan. This template form allows a
business to outline the company's objectives and detail both current company
information as well as any past performance. Companies should include a complete
market analysis in their plan to help showcase why their business strategy will be
effective in the market. Future company plans, including production targets,
management strategy, and financial forecasting, should be used to demonstrate and
confirm that the company's short-term and long-term objective can and will be met. This
model plan can be customized to best fit the unique needs of any entrepreneur or owner
that is seeking to create a strong business plan.
20__


       COMPANY NAME
       Business Plan
           OWNER’S NAME
               ADDRESS
        CITY, STATE ZIP CODE
                 Tel.
                 Fax:
                Email:
                                      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
      Chart: Highlights .......................................................................................................................... 2
   1.1 Objectives.................................................................................................................................... 2
   1.2 Mission .......................................................................................................................................... 2
   1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
   2.1 Company Ownership ............................................................................................................... 3
   2.2 Company History ...................................................................................................................... 3
      Table: Past Performance ........................................................................................................... 4
      Chart: Past Performance ........................................................................................................... 5
3.0 Products and Services ................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
   4.1 Market Segmentation ............................................................................................................. 5
      Table: Market Analysis ............................................................................................................... 6
      Chart: Market Analysis (Pie) .................................................................................................... 6
   4.2 Target Market Segment Strategy ...................................................................................... 6
   4.3 Service Business Analysis ..................................................................................................... 7
      4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Strategy and Implementation Summary ............................................................................ 7
   5.1 SWOT Analysis .......................................................................................................................... 7
      5.1.1 Strengths ............................................................................................................................. 7
      5.1.2 Weaknesses ........................................................................................................................ 8
      5.1.3 Opportunities ..................................................................................................................... 8
      5.1.4 Threats ................................................................................................................................. 8
   5.2 Competitive Edge ..................................................................................................................... 8
   5.3 Marketing Strategy .................................................................................................................. 8
   5.4 Sales Strategy ........................................................................................................................... 8
      5.4.1 Sales Forecast.................................................................................................................... 9
          Table: Sales Forecast ............................................................................................................. 9
          Chart: Sales Monthly .............................................................................................................. 9
          Chart: Sales by Year ............................................................................................................. 10
   5.5 Milestones.................................................................................................................................. 10
      Table: Milestones ....................................................................................................................... 10

                                                                                                                                                 Page 1
                                                              Table of Contents



       Chart: Milestones ....................................................................................................................... 11
6.0 Management Summary ............................................................................................................ 11
   6.1 Personnel Plan ......................................................................................................................... 11
       Table: Personnel ......................................................................................................................... 11
7.0 Financial Plan ............................................................................................................................... 11
   7.1 Important Assumptions ....................................................................................................... 12
   7.2 Break-even Analysis .............................................................................................................. 12
       Table: Break-even Analysis.................................................................................................... 12
       Chart: Break-even Analysis ................................................................................................... 12
   7.3 Projected Profit and Loss ..................................................................................................... 13
       Table: Profit and Loss ............................................................................................................... 13
       Chart: Profit Monthly ................................................................................................................ 14
       Chart: Profit Yearly .................................................................................................................... 14
       Chart: Gross Margin Monthly................................................................................................. 15
       Chart: Gross Margin Yearly .................................................................................................... 15
   7.4 Projected Cash Flow .............................................................................................................. 16
       Table: Cash Flow ........................................................................................................................ 16
       Chart: Cash .................................................................................................................................. 17
   7.5 Projected Balance Sheet ...................................................................................................... 17
       Table: Balance Sheet ................................................................................................................ 17
   7.6 Business Ratios ....................................................................................................................... 18
       Table: Ratios ................................................................................................................................ 18
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5




                                                                                                                                              Page 2
                                                                COMPANY NAME           June 1, 2010


                                         [INSERT IMAGE]

1.0 Executive Summary

   Introduction:
   If you are a producer with a livestock facility that needs to meet regulatory compliance or a
   crop producer trying to maximize the use of organics or commercial fertilizer; be assured it will
   be well worth you time to visit with COMPANY NAME. With a proper nutrient management plan,
   agronomic expertise and the professional application of the waste products COMPANY NAME
   manages the amount, source, placement, form and timing of the applications. The nutrients
   and soil amendments meet the nutrient needs of the crop to grow, while minimizing nutrient
   losses from runoff or leaching
   The company:
   Nutrient management business, which assists crop and livestock producer to better manage
   nutrient loaded waste products, mainly manures. There are 3 main responsibilities to do so:
      Compliance planning and record keeping tools
      Manure Brokering and Distribution equipment
      Composting
   Sales:
   2008: $596,849
   2009: $741,126
   Owner and Management:
   OWNER’S NAME the owner has been managing the business since the inception in 2008. He
   oversees the day-to-day operations as well as the long-term goals of the company. He is
   heavily involved in the growth and customer care that NFP is known for.
   Industry:
   Agriculture is America's number one export, generating more than $100 billion annually while
   providing jobs for nearly 1 million workers. About 24% of agriculture products produced are
   exported. There are just over 2 million farms in the United States today. The number of acres
   devoted to farming has decreased 110 thousand acres from 2008, to just over 900 million
   acres. Yet, farmers continue to increase food production to help feed the world as population
   continues to increase. Over 24 million people or 17% of the US work force are employed in
   agriculture industries, getting food from the farm to the table.




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                        1
                                                                  COMPANY NAME     June 1, 2010


   Chart: Highlights




1.1 Objectives
   The objectives for COMPANY NAME are outlined below:
   1. To create a service-base company whose goal is to exceed customer's expectations.
   2. Sales increase to $1.3 million by end of 2012.
   3. To increase the number of clients services by at least 20% per year through superior
      performance and word-of mouth referrals.
   4. Have a clientele return rate of 90% by end of first year.
   5. Become the community favorite in Manure Bordering and Composting company.
1.2 Mission
   Our mission is to supply our industry with top quality composting, Manure Broke ring, and
   equipment distribution with integrity and the up most respect and care.




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                   2
                                                                COMPANY NAME          June 1, 2010


1.3 Keys to Success
   The keys to our success are:
      Building and maintaining strategic alliances with our manufacturers and other industry
       related business partners;
      Adopting a customer- and market-focused sales and marketing paradigm; and,
   Managing the business by implementing, and consistently measuring and adjusting the
   fundamentals of a Balanced Scorecard:
   1. Financial Goals vs. Results
   2. Internal Business Process Goals vs. Results
   3. Employee Learning and Growth Goals vs. Results
   4. Customer Satisfaction Goals vs. Results
2.0 Company Summary
   COMPANY NAME have a nutrient management business which assists crop and livestock
   producer to better manage nutrient loaded waste products, mainly manures. There are two
   main responsibilities to do so:
   1. Manure Brokering and Distribution equipment: Along with the regulations, livestock
      facilities have tons of manure to be removed from the feeding operation site and applied to
      fields needed fertilizer for growing crops. Manure is very good fertilizer source if applied
      and used correctly. Many times livestock operations have way more manure than they can
      utilize on their own farming operations so I offer brokering services to sell there manure to
      local farms, and the purchaser of the manure can save more on fertilizer and increase yields
      if applied correctly.
   2. Sometimes we have to transport the further than 10 miles and manure is a bulky product.
      If we composted this manure it would reduce mass and increase nutrient value of some
      nutrients. If this manure was to be composted other markets appear such as organic
      farmers and landscapers.
2.1 Company Ownership
   Since the inception of the company in 2008 OWNER’S NAME has been the founder, current
   owner, and business manager. His experience in the industry is more than 20 years and has
   had proven success as a business entrepreneur.
2.2 Company History
   COMPANY NAME, which brokers and distributes manure was created in 2008. Founder OWNER’S
   NAME has been in the industry for most of his professional experience. COMPANY NAME
   products specializes in nutrient management plan, agronomic expertise and the professional
   application of waste products COMPANY NAME manages the amount, the amount, source,
   placement, form and timing of the applications.




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                       3
                                                            COMPANY NAME   June 1, 2010



Table: Past Performance



Past Performance
                                                FY 2008     FY 2009    FY 2010
Sales                                           $596,849    $741,126   $870,000
Gross Margin                                     $75,694    $122,086   $176,123
Gross Margin %                                   12.68%      16.47%     20.24%
Operating Expenses                               $59,865     $78,169    $91,400

Balance Sheet
                                                FY 2008     FY 2009    FY 2010

Current Assets
Cash                                            $100,000    $100,000   $100,000
Other Current Assets                             $22,000     $28,700    $33,000
Total Current Assets                            $122,000    $128,700   $133,000

Long-term Assets
Long-term Assets                                 $91,000     $91,000    $91,000
Accumulated Depreciation                              $0          $0         $0
Total Long-term Assets                           $91,000     $91,000    $91,000

Total Assets                                    $213,000    $219,700   $224,000

Current Liabilities
Accounts Payable                                       $0        $0          $0
Current Borrowing                                      $0        $0          $0
Other Current Liabilities (interest                    $0        $0          $0
free)
Total Current Liabilities                              $0        $0          $0

Long-term Liabilities                            $50,000    $100,000   $100,000
Total Liabilities                                $50,000    $100,000   $100,000

Paid-in Capital                                  $50,000     $50,000    $50,000
Retained Earnings                                $98,000     $48,700    $34,000
Earnings                                         $15,000     $21,000    $40,000
Total Capital                                   $163,000    $119,700   $124,000

Total Capital and Liabilities                   $213,000    $219,700   $224,000

Other Inputs
Payment Days                                            0         0           0




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                            4
                                                                 COMPANY NAME        June 1, 2010


   Chart: Past Performance




3.0 Products and Services
   The following are products and services that are offered by COMPANY NAME:
      Compliance planning and record keeping tools/staff need
      Manure Brokering and Distribution equipment
      Composting
4.0 Market Analysis Summary
   Our market segmentation sc heme is fairly straightforward, and focuses on all agricultural and
   livestock sectors. The information contained in our customer analysis table is taken directly
   from the last statistics report published by the Ministry of Commerce and Industry and Tourism
   website and clearly shows that our largest market potential is more concentrated on the
   following sectors:
          Potato Crop
          Cereals Crop, including Wheat and Barley
          Vegetables crop
          Livestock
4.1 Market Segmentation
   The target markets are livestock operations that do not utilize all there manure, farmers who
   need the products to improve the performance of the there land and help them save money,
   and landscaper / gardeners.




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                     5
                                                                 COMPANY NAME         June 1, 2010


Table: Market Analysis


Market Analysis
                                       2010       2011       2012     2013       2014
Potential                Growth                                                             CAGR
Customers
livestock facilities         2%       4,723      4,817       4,913    5,011      5,111     1.99%
Other                        1%       2,102      2,123       2,144    2,165      2,187     1.00%
Total                     1.69%       6,825      6,940       7,057    7,176      7,298     1.69%




   Chart: Market Analysis (Pie)




4.2 Target Market Segment Strategy
   We will not be successful waiting for the customer to come to us. Instead, we must focus on the
   specific market segments whose needs match our offerings. Focusing on targeted segments is
   the key to our future. Therefore, our focus and marketing message will be the services offered.
   We will develop our message, communicate it, and fulfill our commitment to excellence.




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                      6
                                                                    COMPANY NAME            June 1, 2010


4.3 Service Business Analysis
   The composting industry has grown tremendously in the past 30 years, and there now is a need
   to develop an industry-wide understanding of this sector in order to help composters achieve
   industry-specific goals. These goals consist of increasing sales of compost and compost-
   amended products, increasing support. calculating the number of operational and planned
   facilities for various feed stocks; Analyzing estimates by highly-respected authorities that the
   marketplace for anaerobic digestion/bio gas recovery systems is between $2 to $3 billion.
4.3.1 Competition and Buying Patterns
   composting industry is an industry that involves developing a product, marketing, maintaining
   equipment and employees, and adhering to regulations and standards. the compost industry
   started with waste reduction, today, it primarily is about product orientation, she says, noting
   that composters have to create a product that can sell in their markets. "While our feed stocks
   are considered waste, we're not taking feed stocks like a landfill does, to keep them out of the
   waste stream. We're taking them to create a [saleable] product." California is home to some of
   the most stringent composting regulations in the country, Cotton says. The state houses
   approximately 100 permitted composting sites, including one of the largest facilities in the
   world. This well-known facility near Bakersfield processes about 1,000 tons of compost per day
   on 100 acres. With such facilities across the state, California can be used as an example for
   other states trying to set standards for large-volume, as well as smaller, operations.
   Competition in our local community consists of the following companies:
      Twin Lakes Environmental Services
      Nutrient Advisors
      Organic Nutrient Solutions
      Richardson Manure Hauling
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 information 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 Interior Views.
5.1.1 Strengths
      Strong relationships with suppliers that offer credit arrangements, flexibility, and response
       to special product requirements.
      control of the manure management process from one end to other.
      Excellent and stable staff, offering personalized customer service.
      Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
      Strong merchandising and product presentation.
      Good referral relationships with complementary vendors.
      High customer loyalty among repeat and high-dollar purchase customers.
       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                               7
                                                                     COMPANY NAME        June 1, 2010


5.1.2 Weaknesses
      Access to additional operating capital.
      Location is not in a heavily traveled, traditional retail area.
      Challenges of the seasonality of the business.
      maintaining employees
5.1.3 Opportunities
      Growing market with a significant percentage of our target market still not knowing we
       exist.
      Strategic alliances offering sources for referrals and joint marketing activities to extend our
       reach.
      help livestock producers and municipalities.
      Changes in design trends can initiate home updating, and therefore, generate sales.
      Increasing sales opportunities beyond our "100-mile" target area including several smaller
       communities that have produced a faithful following of customers.
      Internet potential for selling products to other markets.
5.1.4 Threats
      The downturn in the economy has impacted store sales.
      Competition from a national store; or a store with greater financing or product resources
       could enter the market.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.
5.2 Competitive Edge
   Our competitive edge is our positioning as strategic ally with our clients, who are clients more
   than customers. By building a business based on long-standing relationships with satisfied
   clients, we simultaneously build defenses against competition. The longer the relationship
   stands, the more we help our clients understand what we offer them and why they need it.
5.3 Marketing Strategy
   The marketing strategy is the core of the main strategy:
   1. Emphasize service and support.
   2. Build a relationship business.
   3. Focus on Consulting, Brokering, and Composting.
5.4 Sales Strategy
   Our sales strategy will be in three fold:
   1. Cold calls
   2. Magazine ads
   3. Driving people to our website



       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                          8
                                                               COMPANY NAME        June 1, 2010




5.4.1 Sales Forecast
   The following table and charts present the sales forecast for COMPANY NAME.


Table: Sales Forecast



Sales Forecast
                                                     FY 2011        FY 2012        FY 2013
Sales
Manure Brokering and Distribution                   $639,660      $739,125        $800,000
equipment
Composting                                          $233,267      $335,000         $500,000
Total Sales                                         $872,927    $1,074,125       $1,300,000

Direct Cost of Sales                                 FY 2011       FY 2012         FY 2013
Cost of manure                                       $64,231       $88,000        $110,000
1099 employees                                      $519,325      $582,000        $680,000
Subtotal Direct Cost of Sales                       $583,556      $670,000        $790,000




   Chart: Sales Monthly




       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                    9
                                                                COMPANY NAME         June 1, 2010


   Chart: Sales by Year




5.5 Milestones
   The following table lists important program milestones, with dates and managers in charge, and
   budgets for each. The milestone schedule indicates our emphasis on planning for
   implementation.


Table: Milestones


Milestones

Milestone                 Start Date       End Date           Budget    Manager      Department
Expand software            9/1/2010       10/1/2010          $30,000                        CEO
Database
New Equipment             9/27/2010      10/25/2010         $420,000                        CEO
Compost                   10/1/2010       11/1/2010         $350,000                        CEO
Equipment
Totals                                                      $800,000




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                     10
                                                                  COMPANY NAME         June 1, 2010


   Chart: Milestones




6.0 Management Summary
   OWNER’S NAME the owner has been managing the business since 2008. At this point the owner
   is the general manager. As the business grows the intention is to bring on two more managers
   and let Abe step back and manage the company and not the day-to-day business.
6.1 Personnel Plan
   The Personnel Plan below reflects our projected current needs, and carries through 2013.
Table: Personnel


Personnel Plan
                                                             FY 2011      FY 2012          FY 2013
Management                                                   $40,000      $50,000          $50,000
Administrative                                               $27,504      $45,000          $48,250
Total People                                                       2            4                4

Total Payroll                                                $67,504      $95,000          $98,250


7.0 Financial Plan
   The premier element in our financial plan is initiating, maintaining, and improving the factors
   that create, stabilize, and increase our cash flow:
   1. We must create visibility to create customer flow.
   2. We must maintain a dependable, cheerful employee force so as to minimize turnover.
   3. Create a brisk turnaround on our retail products, always maintaining viable stock levels.


       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                        11
                                                               COMPANY NAME            June 1, 2010


7.1 Important Assumptions
   The table below presents the assumptions used in the financial calculations of this business
   plan.
7.2 Break-even Analysis
   For our break-even analysis, we assume running costs of approximately $44,385 per month,
   which includes our full payroll, rent, and utilities, and an estimation of other running costs.

Table: Break-even Analysis


Break-even Analysis

Monthly Revenue Break-even                                                   $44,385

Assumptions:
Average Percent Variable Cost                                                   67%
Estimated Monthly Fixed Cost                                                 $14,713




   Chart: Break-even Analysis




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                       12
                                                               COMPANY NAME      June 1, 2010


7.3 Projected Profit and Loss
   Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view,
   and is based in large part on past performance. By strengthening our service position, and
   rebuilding our customer relationships, we will widen our customer base and increase sales.
   Month-to-month assumptions for profit and loss are included in the appendix.

Table: Profit and Loss



Pro Forma Profit and Loss
                                                FY 2011         FY 2012      FY 2013
Sales                                          $872,927      $1,074,125   $1,300,000
Direct Cost of Sales                           $583,556        $670,000     $790,000
Other Costs of Sales                                 $0              $0           $0
Total Cost of Sales                            $583,556        $670,000     $790,000

Gross Margin                                   $289,371       $404,125      $510,000
Gross Margin %                                  33.15%         37.62%        39.23%


Expenses
Payroll                                         $67,504        $95,000       $98,250
Marketing/Promotion                              $1,200         $1,500        $1,800
Depreciation                                    $42,000        $42,000       $42,000
Rent                                             $4,800         $5,000        $5,100
Utilities                                        $3,774         $3,900        $4,000
Insurance                                        $6,192         $6,192       $63,250
Auto/Truck                                      $11,005        $11,500       $12,500
Other                                           $40,086        $41,250       $45,000

Total Operating Expenses                       $176,561       $206,342      $271,900

Profit Before Interest and Taxes               $112,810       $197,783      $238,100
EBITDA                                         $154,810       $239,783      $280,100
 Interest Expense                                $6,000         $6,000        $6,000
 Taxes Incurred                                 $16,021        $28,767       $34,815

Other Income
Other Income Account Name                             $0            $0             $0
Other Income Account Name                             $0            $0             $0
Total Other Income                                    $0            $0             $0

Other Expense
Other Expense Account Name                            $0            $0             $0
Other Expense Account Name                            $0            $0             $0
Total Other Expense                                   $0            $0             $0

Net Other Income                                     $0             $0            $0
Net Profit                                      $90,788       $163,016      $197,285
Net Profit/Sales                                10.40%         15.18%        15.18%

       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                13
                                                         COMPANY NAME   June 1, 2010




Chart: Profit Monthly




Chart: Profit Yearly




   OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                           14
                                                         COMPANY NAME   June 1, 2010


Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




   OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                           15
                                                                  COMPANY NAME    June 1, 2010


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
                                                        FY 2011        FY 2012       FY 2013
Cash Received

Cash from Operations
Cash Sales                                             $872,927      $1,074,125   $1,300,000
Subtotal Cash from Operations                          $872,927      $1,074,125   $1,300,000

Additional Cash Received
Non Operating (Other) Income                                 $0              $0           $0
Sales Tax, VAT, HST/GST Received                             $0              $0           $0
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                                $800,000              $0           $0
Subtotal Cash Received                               $1,672,927      $1,074,125   $1,300,000

Expenditures                                            FY 2011        FY 2012       FY 2013

Expenditures from Operations
Cash Spending                                           $67,504        $95,000       $98,250
Bill Payments                                          $612,747       $770,371      $946,984
Subtotal Spent on Operations                           $680,251       $865,371    $1,045,234

Additional Cash Spent
Non Operating (Other) Expense                                $0             $0            $0
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                              $800,000             $0            $0
Dividends                                                    $0             $0            $0
Subtotal Cash Spent                                  $1,480,251       $865,371    $1,045,234

Net Cash Flow                                          $192,676       $208,754      $254,766
Cash Balance                                           $292,676       $501,429      $756,196




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                  16
                                                               COMPANY NAME           June 1, 2010


   Chart: Cash




7.5 Projected Balance Sheet
   The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt
   obligations--as long as we can achieve our specific objectives.
Table: Balance Sheet


Pro Forma Balance Sheet
                                                  FY 2011          FY 2012          FY 2013
Assets

Current Assets
Cash                                             $292,676        $501,429         $756,196
Other Current Assets                              $33,000         $33,000          $33,000
Total Current Assets                             $325,676        $534,429         $789,196

Long-term Assets
Long-term Assets                                 $891,000        $891,000         $891,000
Accumulated Depreciation                          $42,000         $84,000         $126,000
Total Long-term Assets                           $849,000        $807,000         $765,000
Total Assets                                   $1,174,676      $1,341,429       $1,554,196




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                      17
                                                                 COMPANY NAME           June 1, 2010




Liabilities and Capital                            FY 2011             FY 2012         FY 2013

Current Liabilities
Accounts Payable                                   $59,887             $63,625         $79,107
Current Borrowing                                       $0                  $0              $0
Other Current Liabilities                               $0                  $0              $0
Subtotal Current Liabilities                       $59,887             $63,625         $79,107

Long-term Liabilities                             $100,000         $100,000           $100,000
Total Liabilities                                 $159,887         $163,625           $179,107

Paid-in Capital                                   $850,000         $850,000         $850,000
Retained Earnings                                  $74,000         $164,788         $327,804
Earnings                                           $90,788         $163,016         $197,285
Total Capital                                   $1,014,788       $1,177,804       $1,375,089
Total Liabilities and Capital                   $1,174,676       $1,341,429       $1,554,196

Net Worth                                       $1,014,788       $1,177,804       $1,375,089


7.6 Business Ratios
   The table follows with our main business ratios. We intend to improve gross margins and
   inventory turnover. Industry profile ratios based on the Standard Industrial Classification are
   shown for comparison.
Table: Ratios

Ratio Analysis
                                             FY 2011         FY 2012        FY 2013        Industry
                                                                                             Profile
Sales Growth                                  0.34%          23.05%          21.03%          3.14%

Percent of Total Assets
Other Current Assets                          2.81%            2.46%         2.12%          30.39%
Total Current Assets                         27.72%           39.84%        50.78%          42.98%
Long-term Assets                             72.28%           60.16%        49.22%          57.02%
Total Assets                                100.00%          100.00%       100.00%         100.00%

Current Liabilities                           5.10%           4.74%           5.09%         17.05%
Long-term Liabilities                         8.51%           7.45%           6.43%         44.58%
Total Liabilities                            13.61%          12.20%          11.52%         61.63%
Net Worth                                    86.39%          87.80%          88.48%         38.37%

Percent of Sales
Sales                                       100.00%          100.00%       100.00%         100.00%
Gross Margin                                 33.15%           37.62%        39.23%          69.14%
Selling, General & Administrative            22.75%           22.45%        24.06%          12.86%
Expenses
Advertising Expenses                          0.14%           0.14%           0.14%          0.33%
Profit Before Interest and Taxes             12.92%          18.41%          18.32%          4.25%

       OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                       18
                                                                 COMPANY NAME     June 1, 2010




Main Ratios
Current                                        5.44             8.40       9.98          1.47
Quick                                          5.44             8.40       9.98          0.99
Total Debt to Total Assets                  13.61%           12.20%     11.52%        61.63%
Pre-tax Return on Net Worth                 10.53%           16.28%     16.88%         9.43%
Pre-tax Return on Assets                     9.09%           14.30%     14.93%         3.62%

Additional Ratios                           FY 2011          FY 2012    FY 2013
Net Profit Margin                           10.40%           15.18%     15.18%            n.a
Return on Equity                             8.95%           13.84%     14.35%            n.a

Activity Ratios
Accounts Payable Turnover                     11.23            12.17      12.17           n.a
Payment Days                                     27               29         27           n.a
Total Asset Turnover                           0.74             0.80       0.84           n.a

Debt Ratios
Debt to Net Worth                              0.16             0.14       0.13           n.a
Current Liab. to Liab.                         0.37             0.39       0.44           n.a

Liquidity Ratios
Net Working Capital                       $265,788          $470,804   $710,089           n.a
Interest Coverage                            18.80             32.96      39.68           n.a

Additional Ratios
Assets to Sales                                1.35             1.25       1.20           n.a
Current Debt/Total Assets                       5%               5%         5%            n.a
Acid Test                                      5.44             8.40       9.98           n.a
Sales/Net Worth                                0.86             0.91       0.95           n.a
Dividend Payout                                0.00             0.00       0.00           n.a




      OWNER’S NAME Ph: [INSERT NUMBER] Email: INSERTEMAIL                                  19
                                                             Appendix

Table: Sales Forecast


Sales Forecast
                             Sep       Oct       Nov       Dec       Jan       Feb       Mar       Apr       May       Jun         Jul      Aug
Sales
Manure Brokering and      $48,265   $49,230   $50,215   $48,128   $45,610   $48,408   $54,354   $59,321   $59,601   $57,681   $58,835    $60,012
Distribution equipment
Composting                $20,147   $17,468   $17,817   $18,173   $16,229   $15,110   $16,229   $22,665   $22,385   $22,665   $20,874    $23,505
Total Sales               $68,412   $66,698   $68,032   $66,301   $61,839   $63,518   $70,583   $81,986   $81,986   $80,346   $79,709    $83,517

Direct Cost of Sales          Sep       Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun        Jul       Aug
Cost of manure             $4,526    $4,662    $4,802    $4,946    $5,094    $5,247    $5,404    $5,566    $5,733    $5,905    $6,082     $6,264
1099 employees            $44,191   $40,871   $40,871   $41,494   $40,456   $40,456   $43,568   $42,946   $43,154   $47,718   $46,567    $47,033
Subtotal Direct Cost of   $48,717   $45,533   $45,673   $46,440   $45,550   $45,703   $48,972   $48,512   $48,887   $53,623   $52,649    $53,297
Sales




                                                                                                                                              1
                                                Appendix

Table: Personnel


Personnel Plan
                      Sep      Oct      Nov      Dec      Jan      Feb      Mar      Apr     May       Jun       Jul      Aug
Management         $3,333   $3,333   $3,333   $3,333   $3,333   $3,333   $3,333   $3,333   $3,333   $3,333   $3,333    $3,337
Administrative     $2,292   $2,292   $2,292   $2,292   $2,292   $2,292   $2,292   $2,292   $2,292   $2,292   $2,292    $2,292
Total People            2        2        2        2        2        2        2        2        2        2        2         2

Total Payroll      $5,625   $5,625   $5,625   $5,625   $5,625   $5,625   $5,625   $5,625   $5,625   $5,625   $5,625    $5,629




                                                                                                                           2
                                                                       Appendix

Table: Profit and Loss


Pro Forma Profit and
Loss
                                   Sep       Oct       Nov       Dec         Jan       Feb       Mar       Apr      May        Jun        Jul       Aug
Sales                          $68,412   $66,698   $68,032   $66,301     $61,839   $63,518   $70,583   $81,986   $81,986   $80,346   $79,709    $83,517
Direct Cost of Sales           $48,717   $45,533   $45,673   $46,440     $45,550   $45,703   $48,972   $48,512   $48,887   $53,623   $52,649    $53,297
Other Costs of Sales                $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0         $0
Total Cost of Sales            $48,717   $45,533   $45,673   $46,440     $45,550   $45,703   $48,972   $48,512   $48,887   $53,623   $52,649    $53,297

Gross Margin                   $19,695   $21,165   $22,359   $19,861     $16,289   $17,815   $21,611   $33,474   $33,099   $26,723   $27,060    $30,220
Gross Margin %                 28.79%    31.73%    32.87%    29.96%      26.34%    28.05%    30.62%    40.83%    40.37%    33.26%    33.95%     36.18%


Expenses
Payroll                         $5,625    $5,625    $5,625    $5,625      $5,625    $5,625    $5,625    $5,625    $5,625    $5,625    $5,625     $5,629
Marketing/Promotion              $100      $100      $100      $100        $100      $100      $100      $100      $100      $100      $100       $100
Depreciation                    $3,500    $3,500    $3,500    $3,500      $3,500    $3,500    $3,500    $3,500    $3,500    $3,500    $3,500     $3,500
Rent                             $400      $400      $400      $400        $400      $400      $400      $400      $400      $400      $400       $400
Utilities                        $298      $301      $304      $307        $310      $313      $316      $319      $322      $325      $328       $331
Insurance                15%     $516      $516      $516      $516        $516      $516      $516      $516      $516      $516      $516       $516
Auto/Truck               15%     $900      $900      $863      $868        $900      $937      $926      $961      $966      $966      $918       $900
Other                           $3,449    $3,265    $3,108    $3,020      $3,082    $3,143    $3,163    $3,431    $3,500    $3,570    $3,641     $3,714

Total Operating                $14,788   $14,607   $14,416   $14,336     $14,433   $14,534   $14,546   $14,852   $14,929   $15,002   $15,028    $15,090
Expenses




                                                                                                                                                     3
                                                               Appendix


Profit Before Interest   $4,907    $6,558    $7,943   $5,525     $1,856   $3,281    $7,065   $18,622   $18,170   $11,721   $12,032   $15,130
and Taxes
EBITDA                   $8,407   $10,058   $11,443   $9,025     $5,356   $6,781   $10,565   $22,122   $21,670   $15,221   $15,532   $18,630
 Interest Expense         $500      $500      $500     $500       $500     $500      $500      $500      $500      $500      $500      $500
 Taxes Incurred           $661      $909     $1,116    $754       $203     $417      $985     $2,718    $2,650    $1,683    $1,730    $2,195

Other Income
Other Income                $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0
Account Name
Other Income                $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0
Account Name
Total Other Income          $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0

Other Expense
Other Expense               $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0
Account Name
Other Expense               $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0
Account Name
Total Other Expense         $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0

Net Other Income             $0        $0        $0       $0         $0       $0        $0        $0        $0        $0        $0        $0
Net Profit               $3,746    $5,149    $6,327   $4,271     $1,153   $2,364    $5,581   $15,404   $15,019    $9,538    $9,802   $12,436
Net Profit/Sales         5.48%     7.72%     9.30%    6.44%      1.86%    3.72%     7.91%    18.79%    18.32%    11.87%    12.30%    14.89%




                                                                                                                                          4
                                                                          Appendix

Table: Cash Flow


Pro Forma Cash Flow
                                     Sep        Oct      Nov       Dec         Jan       Feb       Mar       Apr       May       Jun        Jul      Aug
Cash Received

Cash from Operations
Cash Sales                        $68,412   $66,698   $68,032   $66,301     $61,839   $63,518   $70,583   $81,986   $81,986   $80,346   $79,709   $83,517
Subtotal Cash from                $68,412   $66,698   $68,032   $66,301     $61,839   $63,518   $70,583   $81,986   $81,986   $80,346   $79,709   $83,517
Operations

Additional Cash
Received
Non Operating (Other)                 $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Income
Sales Tax, VAT,          0.00%        $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
HST/GST Received
New Current                           $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Borrowing
New Other Liabilities                 $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
(interest-free)
New Long-term                         $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Liabilities
Sales of Other Current                $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Assets
Sales of Long-term                    $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Assets
New Investment                   $800,000       $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Received
Subtotal Cash                    $868,412   $66,698   $68,032   $66,301     $61,839   $63,518   $70,583   $81,986   $81,986   $80,346   $79,709   $83,517
Received




                                                                                                                                                       5
                                                                    Appendix


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

Expenditures from
Operations
Cash Spending             $5,625     $5,625     $5,625     $5,625      $5,625     $5,625     $5,625     $5,625     $5,625     $5,625     $5,625     $5,629
Bill Payments             $1,851    $55,437    $52,429    $52,591     $52,860    $51,577    $52,157    $55,930    $57,470    $57,970    $61,653    $60,821
Subtotal Spent on         $7,476    $61,062    $58,054    $58,216     $58,485    $57,202    $57,782    $61,555    $63,095    $63,595    $67,278    $66,450
Operations

Additional Cash Spent
Non Operating (Other)        $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Expense
Sales Tax, VAT,              $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
HST/GST Paid Out
Principal Repayment          $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
of Current Borrowing
Other Liabilities            $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Principal Repayment
Long-term Liabilities        $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Principal Repayment
Purchase Other               $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Current Assets
Purchase Long-term      $800,000        $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Assets
Dividends                     $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent     $807,476    $61,062    $58,054    $58,216     $58,485    $57,202    $57,782    $61,555    $63,095    $63,595    $67,278    $66,450

Net Cash Flow            $60,936     $5,636     $9,978     $8,085      $3,354     $6,316    $12,801    $20,431    $18,891    $16,751    $12,431    $17,067
Cash Balance            $160,936   $166,571   $176,550   $184,634    $187,988   $194,304   $207,105   $227,536   $246,427   $263,178   $275,609   $292,676




                                                                                                                                                        6
                                                                                     Appendix

         Table: Balance Sheet


Pro Forma
Balance
Sheet
                                 Sep          Oct          Nov          Dec          Jan          Feb          Mar          Apr          May          Jun           Jul          Aug
Assets          Starting
                Balances

Current
Assets
Cash            $100,000    $160,936     $166,571     $176,550     $184,634     $187,988     $194,304     $207,105     $227,536     $246,427     $263,178     $275,609     $292,676
Other            $33,000     $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000      $33,000
Current
Assets
Total Current   $133,000    $193,936     $199,571     $209,550     $217,634     $220,988     $227,304     $240,105     $260,536     $279,427     $296,178     $308,609     $325,676
Assets

Long-term
Assets
Long-term        $91,000    $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000     $891,000
Assets
Accumulated          $0       $3,500       $7,000      $10,500      $14,000      $17,500      $21,000      $24,500      $28,000      $31,500      $35,000      $38,500      $42,000
Depreciation
Total Long-      $91,000    $887,500     $884,000     $880,500     $877,000     $873,500     $870,000     $866,500     $863,000     $859,500     $856,000     $852,500     $849,000
term Assets
Total Assets    $224,000   $1,081,436   $1,083,571   $1,090,050   $1,094,634   $1,094,488   $1,097,304   $1,106,605   $1,123,536   $1,138,927   $1,152,178   $1,161,109   $1,174,676




                                                                                                                                                                             7
                                                                                     Appendix


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

Current
Liabilities
Accounts             $0      $53,690      $50,676      $50,828      $51,141      $49,843      $50,295      $54,015      $55,542      $55,914      $59,627      $58,756      $59,887
Payable
Current              $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0            $0
Borrowing
Other                $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0            $0
Current
Liabilities
Subtotal             $0      $53,690      $50,676      $50,828      $51,141      $49,843      $50,295      $54,015      $55,542      $55,914      $59,627      $58,756      $59,887
Current
Liabilities

Long-term       $100,000    $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000
Liabilities
Total           $100,000    $153,690     $150,676     $150,828     $151,141     $149,843     $150,295     $154,015     $155,542     $155,914     $159,627     $158,756     $159,887
Liabilities

Paid-in          $50,000    $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000     $850,000
Capital
Retained         $34,000     $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000      $74,000
Earnings
Earnings         $40,000       $3,746       $8,895      $15,222      $19,493      $20,646      $23,010      $28,590      $43,994      $59,013      $68,551      $78,353      $90,788
Total Capital   $124,000    $927,746     $932,895     $939,222     $943,493     $944,646     $947,010     $952,590     $967,994     $983,013     $992,551    $1,002,353   $1,014,788
Total           $224,000   $1,081,436   $1,083,571   $1,090,050   $1,094,634   $1,094,488   $1,097,304   $1,106,605   $1,123,536   $1,138,927   $1,152,178   $1,161,109   $1,174,676
Liabilities
and Capital

Net Worth       $124,000    $927,746     $932,895     $939,222     $943,493     $944,646     $947,010     $952,590     $967,994     $983,013     $992,551    $1,002,353   $1,014,788




                                                                                                                                                                             8
                                                               Appendix


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