[INSERT IMAGE/LOGO]
COMPANY NAME
[INSERT ADDRESS & CONTACT]
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 ............................................................................................................................................... 1
2.0 Company Summary .............................................................................................................................................. 2
2.1 Company Ownership ........................................................................................................................................ 2
2.2 Start-up Summary ............................................................................................................................................ 2
Table: Start-up ................................................................................................................................................... 3
3.0 Services ................................................................................................................................................................ 4
4.0 Market Analysis Summary .................................................................................................................................... 4
4.1 Market Segmentation ....................................................................................................................................... 4
4.2 Target Market Segment Strategy ................................................................................................................. 5
4.3 Service Business Analysis................................................................................................................................ 5
4.3.1 Competition and Buying Patterns .............................................................................................................. 5
5.0 Strategy and Implementation Summary ................................................................................................................ 5
5.1 Competitive Edge ............................................................................................................................................. 5
5.2 Marketing Strategy ........................................................................................................................................... 6
5.3 Sales Strategy .................................................................................................................................................. 6
5.3.1 Sales Forecast .......................................................................................................................................... 6
Table: Sales Forecast .................................................................................................................................... 6
5.4 Milestones ........................................................................................................................................................ 7
Table: Milestones ............................................................................................................................................... 8
6.0 Management Summary ........................................................................................................................................ 9
6.1 Personnel Plan ................................................................................................................................................. 9
Table: Personnel ................................................................................................................................................ 9
7.0 Financial Plan ....................................................................................................................................................... 9
7.1 Start-up Funding............................................................................................................................................... 9
Table: Start-up Funding ................................................................................................................................... 10
7.2 Important Assumptions ................................................................................................................................... 11
7.2 Important Assumptions ................................................................................................................................... 11
7.3 Break-even Analysis....................................................................................................................................... 11
Table: Break-even Analysis ............................................................................................................................. 11
7.4 Projected Profit and Loss ............................................................................................................................... 12
Table: Profit and Loss ...................................................................................................................................... 12
7.5 Projected Cash Flow ...................................................................................................................................... 15
Table: Cash Flow ............................................................................................................................................. 15
7.6 Projected Balance Sheet ................................................................................................................................ 17
Table: Balance Sheet....................................................................................................................................... 17
7.7 Business Ratios.............................................................................................................................................. 18
7.7 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
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COMPANY NAME
1.0 Executive Summary
COMPANY NAME is a freight and trucking company that services 48 states. The owner, [INSERT NAME], has extensive experience
in the freight industry. [INSERT NAME] bought out an Airborne Express contract ten years ago and preceded to buyout a DHL
contract as well. She took over 26 trucks and managed 30 employees. As of July of 2009, [INSERT NAME] took over the entire
business. COMPANY NAME will offer its customers the highest level of service.
COMPANY NAME solid business model is forecasted to reach profitability by the end of the first year. COMPANY NAME will achieve
market penetration by remaining laser focused on their market niche, while fully utilizing their strong management and personnel.
The purpose of this plan is to raise grant funding in the amount of $500,000 to attain a facility for operations, upgrade freight truck
equipment and launch an advertising campaign.
1.1 Objectives
COMPANY NAME objectives from the first three years of operation include:
To create a service-based company who’s #1 ambition is to continually exceed the customer's expectations.
To increase the number of served clients by 20% per year through superior performance and word of mouth referrals.
To develop a sustainable, profitable, start-up business.
1.2 Mission
The mission of COMPANY NAME is to provide the customer with the most satisfying shipping experience that they have ever
experienced. The company exists to attract and maintain customers. When COMPANY NAME adheres to this maxim, everything else
will fall into place. The company's services will exceed the expectations of its customers.
1.3 Keys to Success
Keys to success for the company will include:
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COMPANY NAME
1. Maintaining a reputable and untarnished reputation in the industry.
2. Quality care to the company's customers.
3. Competitive pricing.
4. Flexible hours of operation.
2.0 Company Summary
COMPANY NAME is a freight and trucking company that services 48 states. The owner, [INSERT NAME] has extensive experience
in the freight industry. INSERT NAME] bought out an Airborne Express contract ten years ago and proceeded to buyout a DHL
contract as well. He took over 26 trucks and managed 30 employees. As of July of 2009, Mr. Routh took over the entire business.
COMPANY NAME will offer its customers the highest level of service.
2.1 Company Ownership
The company, COMPANY NAME, is an S-Corp Corporation owned by INSERT NAME]. The company formed in late 2009.
2.2 Start-up Summary
COMPANY NAME start-up costs include all the equipment needed for an office. Additionally, there will be legal fees, marketing fees,
maintenance and repairs, insurance, and truck and auto expenses.
The legal fees are for licenses and permits required to operate a freight company, and the generation and review of contracts.
The office operations and utilities category is self explanatory.
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COMPANY NAME
Table: Start-up
Start-up
Requirements
Start-up Expenses
Building Expense/Repairs $161,000
Equipment/Office Supplies $55,500
Office Operations/Utilities $15,480
Legal $1,500
Insurance $48,000
Advertising $250
Auto/Truck/Travel Expenses $144,200
Total Start-up Expenses $425,930
Start-up Assets
Cash Required $0
Other Current Assets $6,000
Long-term Assets $39,000
Total Assets $45,000
Total Requirements $470,930
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COMPANY NAME
3.0 Services
COMPANY NAME is premiere full service freight and trucking company. COMPANY NAME provides excellent and safe
transportation for goods and equipment for the company's clients. COMPANY NAME will work with companies to find a safe,
economical way of transporting all clients' property in an efficient and timely manner; therefore, the company feels strongly about
keeping clients and employees happy.
4.0 Market Analysis Summary
COMPANY NAME is concentrating on the freight industry for several reasons:
1. COMPANY NAME has extensive industry knowledge and insight regarding the freight, transportation and delivery industry.
2. In the current economic climate, Routh Trucking Company, Inc. stands to move forward as a nationwide trusted organization and
stand up against large corporate struggling freight companies.
3. There is plenty of space for a new independent freight company. COMPANY NAME extensive knowledge of both the freight
and trucking industry provides for valuable insights that can add significant value to COMPANY NAME, Inc. customers.
4.1 Market Segmentation
As of the census of 2000, there were 27,362 people, 11,643 households, and 7,241 families residing in the city. The population
density was 2,014.7 people per square mile (777.9/km²). There were 12,402 housing units at an average density of 913.2/sq mi
(352.6/km²). The racial makeup of the city was 82.50% White, 13.68% African American, 0.27% Native American, 0.84% Asian,
0.08% Pacific Islander, 0.65% from other races, and 1.97% from two or more races. Hispanic or Latino of any race was 1.80% of the
population.
There were 11,643 households out of which 28.8% had children under the age of 18 living with them, 43.3% were married couples
living together, 14.8% had a female householder with no husband present, and 37.8% were non-families. 32.1% of all households
were made up of individuals and 10.1% had someone living alone who was 65 years of age or older. The average household size was
2.30 and the average family size was 2.90.
In the city the population was spread out with 23.6% under the age of 18, 8.7% from 18 to 24, 31.2% from 25 to 44, 23.8% from 45 to
64, and 12.6% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 92.3 males. For
every 100 females age 18 and over, there were 88.6 males.
The median income for a household in the city was $37,234, and the median income for a family was $45,264. Males had a median
income of $32,491 versus $24,738 for females. The per capita income for the city was $19,656. About 6.9% of families and 10.1% of
the population were below the poverty line, including 13.9% of those under age 18 and 7.2% of those age 65 or over.
Trucks are vitally important to U.S. industry; however, measuring the impact of trucking on the economy is more difficult, because
trucking services are so intertwined with all sectors of the economy. According to the measurable share of the economy that trucking
represents, the industry directly contributes about 5% to the gross domestic product annually. In addition, the industry plays a critical
support role for other transportation modes and for other sectors of the economy such as the resource, manufacturing, construction,
and wholesale and retail trade industries.
Over 80% of all communities in the US rely exclusively on trucks to deliver all of their fuel, clothing, medicine, and other consumer
goods. The trucking industry employs 10 million people (out of a total national population of 300 million) in jobs that relate directly to
driving or goods transport.
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COMPANY NAME
4.2 Target Market Segment Strategy
COMPANY NAME will form intimate relationships with its customers because this relationship will provide COMPANY NAME with
special insight, which will allow the company to meet any need a customer might have COMPANY NAME will develop close
relationships to the limited number of other carriers that are equipped to transport for clients when COMPANY NAME is unexpectedly
unavailable in order to keep the customer relationship. Lastly, the growth of large corporate competition struggling due to the
economic fallout makes more room for smaller independent companies to thrive. This growth rate is especially attractive.
4.3 Service Business Analysis
There are many different freight services. This market is broken up into generalists, handling all types of freight brokerage,
and specialists, handling materials ranging from heavy equipment, oversized loads, perishable commodities, or hazardous materials.
Customers make the shipping decision based on service (defined by many variables including customer service, speed, and safety of
the product) and price. Most business is repeat business, 70-80% according to industry statistics. Once a customer finds someone
who they are happy with, they typically stay with them.
4.3.1 Competition and Buying Patterns
Although there are major players in each of the commercial carrier market segments, the market remains highly fragmented.
According to the Indiana Yellow Pages, there are numerous companies providing different kinds of the trucking services. Major
competitors for COMPANY NAME are those companies who have comparable truck fleets and are targeting the general public.
Market research shows that customers are price sensitive, and they value on-time deliveries, special handling capabilities, and less-
than-truckload orders. Customer referrals and carrier's reputation are believed to strongly influence the buying decision.
COMPANY NAME is confident that the company can continue to provide fast, efficient and on-time service with care.
5.0 Strategy and Implementation Summary
COMPANY NAME will be going after the general trucking and transportation market. This is a reasonable target, due to COMPANY
NAME.'s industry knowledge. COMPANY NAME will be bringing customers aboard through the use of referrals, advertising and
networking from over 10 years of industry experience. COMPANY NAME will turn these leads into customers through the
company's specialized knowledge which translates to superior service offerings.
5.1 Competitive Edge
COMPANY NAME seeks to establish a competitive edge in its new target market segment by increasing the level of customer contact
and service that other competitors seem to oftentimes lack. Additionally, COMPANY NAME possesses the necessary skills to produce
the high quality service that is needed in this field.
This specialized knowledge, coupled with an unsatiated need to exceed customer's expectations will give COMPANY NAME, Inc. the
competitive advantage to succeed in this industry. COMPANY NAME has made it their mission to provide the finest customer service
possible. This makes good business sense, particularly in this industry where so much of the business is repeat business.
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COMPANY NAME
5.2 Marketing Strategy
COMPANY NAME markets its services as solutions to the many companies requiring cargo to be transported promptly and efficiently.
The company's future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo. The overall marketing plan
for services is based on the following fundamentals:
The segment of the market(s) planned to reach.
Distribution channels planned to reach market segments: television, radio, sales associates, and mailings.
Share of the market expected to capture over a fixed period of time.
5.3 Sales Strategy
COMPANY NAME will be developing strategic relationships with customers and other carriers by first assembling a comprehensive
report of all the carriers within the area. COMPANY NAME will then attempt to enter into mutually beneficial relationships with
them. Routh Trucking Company, Inc. will also have a large portfolio of possible customers that have been developed through
marketing and networking activities. Customers will have a desire to work with COMPANY NAME if they see that COMPANY NAME is
indeed a company of integrity, as well as a good source of future business.
5.3.1 Sales Forecast
See Sales Strategy.
Table: Sales Forecast
Sales Forecast
FY 2011 FY 2012 FY 2013
Sales
Freight Services $1,202,068 $1,900,000 $2,100,000
Delete $0 $0 $0
Total Sales $1,202,068 $1,900,000 $2,100,000
Direct Cost of Sales FY 2011 FY 2012 FY 2013
Office Operations $137,292 $141,411 $145,653
Vehicle Maintenance and Fuel $11,468 $11,812 $12,166
Contract Labor $29,893 $30,790 $31,713
Subtotal Direct Cost of Sales $178,653 $184,013 $189,532
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COMPANY NAME
Sales Monthly
$120,000
$100,000
$80,000
Freight Services
$60,000
$40,000
$20,000
$0
c n b r
a r
p y n l
u g p t
c v
e a e M A a
M u J u e O o
D J F J A S N
Sales by Year
$2,100,000
$1,800,000
$1,500,000
Freight Services
$1,200,000
$900,000
$600,000
$300,000
$0
FY 2011 FY 2012 FY 2013
5.4 Milestones
COMPANY NAME will have several milestones early on:
1. Acquisition of real estate for the business to operate from.
2. Office Set-up. This will be done the first month.
3. Acquiring new company trucks and vehicles.
4. Advertise in the local community.
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COMPANY NAME
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Real Estate Purchase 6/1/2010 9/1/2010 $125,000 Owner
Equipment Expense 6/1/2010 9/1/2010 $50,000 Owner
Utilities 6/1/2010 10/1/2010 $7,680 Owner
Insurance 6/1/2010 12/31/2010 $48,000 Owner
Legal 6/1/2010 12/31/2010 $1,500 Owner
Rent 6/1/2010 12/31/2010 $7,800 Owner
Office Equipment 6/1/2010 11/1/2010 $5,000 Owner
Office Supplies 6/1/2010 9/1/2010 $500 Owner
Repairs and Maintenance 6/1/2010 12/31/2010 $36,000 Owner
Travel 6/1/2010 12/31/2010 $5,000 Owner
Auto/Truck 6/1/2010 10/31/2010 $120,000 Owner
License/Tax/Permit 6/1/2010 10/31/2010 $24,200 Owner
Advertising 6/1/2010 9/1/2010 $250 Owner
Totals $430,930
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COMPANY NAME
6.0 Management Summary
The initial management depends on the founder, INSERT NAME, with little back-up. As the company grows, COMPANY NAME will
take on additional consulting help, plus graphic/editorial, sales, and marketing.
6.1 Personnel Plan
The staff will consist of the owner and manager, INSERT NAME, working full time for COMPANY NAME.
COMPANY NAME will be hiring additional employees for a secretary/receptionist position and then a customer service/account
representative in the future once the need arises. These positions will be paid an hourly wage and will generally be working full
time. COMPANY NAME will bring these two positions on at staggered times.
Table: Personnel
Personnel Plan
FY 2011 FY 2012 FY 2013
Owner/Manager $15,000 $15,450 $15,914
Drivers $117,000 $120,510 $124,125
Total People 4 5 6
Total Payroll $132,000 $135,960 $140,039
7.0 Financial Plan
The following subtopics will provide more financial information.
7.1 Start-up Funding
The start-up costs of Routh Trucking Company, Inc. will consist primarily of equipment, truck and auto expenses and the acquisition of
new real estate that the company will operate from.
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COMPANY NAME
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $425,930
Start-up Assets to Fund $45,000
Total Funding Required $470,930
Assets
Non-cash Assets from Start-up $45,000
Cash Requirements from Start-up $0
Additional Cash Raised $0
Cash Balance on Starting Date $0
Total Assets $45,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $470,930
Total Planned Investment $470,930
Loss at Start-up (Start-up Expenses) ($425,930)
Total Capital $45,000
Total Capital and Liabilities $45,000
Total Funding $470,930
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COMPANY NAME
7.2 Important Assumptions
See following table for general assumptions.
7.3 Break-even Analysis
This break-even analysis table and chart below project the necessary commission per month. As a service provider
business, COMPANY NAME has labor costs and expenses, but no direct costs of sales. Salary costs are included in the Personnel
table and expenses are listed in the Profit and Loss table.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $30,817
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $26,237
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COMPANY NAME
7.4 Projected Profit and Loss
The following table presents the projected profit and loss.
Table: Profit and Loss
Pro Forma Profit and Loss
FY 2011 FY 2012 FY 2013
Sales $1,202,068 $1,900,000 $2,100,000
Direct Cost of Sales $178,653 $184,013 $189,532
Other $0 $0 $0
Total Cost of Sales $178,653 $184,013 $189,532
Gross Margin $1,023,415 $1,715,987 $1,910,468
Gross Margin % 85.14% 90.32% 90.97%
Expenses
Payroll $132,000 $135,960 $140,039
Sales and Marketing and Other Expenses $4,200 $4,250 $4,250
Depreciation $0 $0 $0
Office Operations $137,292 $141,411 $145,653
Vehicle Maintenance and Expense $11,472 $11,816 $12,171
Contract Labor $29,880 $30,776 $31,700
Total Operating Expenses $314,844 $324,213 $333,813
Profit Before Interest and Taxes $708,571 $1,391,774 $1,576,655
EBITDA $708,571 $1,391,774 $1,576,655
Interest Expense $0 $0 $0
Taxes Incurred $212,571 $417,532 $472,996
Net Profit $496,000 $974,242 $1,103,659
Net Profit/Sales 41.26% 51.28% 52.56%
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COMPANY NAME
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COMPANY NAME
7.5 Projected Cash Flow
The following table shows our projected cash flow.
Table: Cash Flow
Pro Forma Cash Flow
FY 2011 FY 2012 FY 2013
Cash Received
Cash from Operations
Cash Sales $1,202,068 $1,900,000 $2,100,000
Subtotal Cash from Operations $1,202,068 $1,900,000 $2,100,000
Additional Cash Received
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 $500,000 $0 $0
Subtotal Cash Received $1,702,068 $1,900,000 $2,100,000
Expenditures FY 2011 FY 2012 FY 2013
Expenditures from Operations
Cash Spending $132,000 $135,960 $140,039
Bill Payments $519,865 $779,087 $850,836
Subtotal Spent on Operations $651,865 $915,047 $990,875
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 $55,500 $0 $0
Purchase Long-term Assets $161,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $868,365 $915,047 $990,875
Net Cash Flow $833,703 $984,953 $1,109,125
Cash Balance $833,703 $1,818,656 $2,927,781
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COMPANY NAME
7.6 Projected Balance Sheet
The following table shows the projected balance sheet.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2011 FY 2012 FY 2013
Assets
Current Assets
Cash $833,703 $1,818,656 $2,927,781
Other Current Assets $61,500 $61,500 $61,500
Total Current Assets $895,203 $1,880,156 $2,989,281
Long-term Assets
Long-term Assets $200,000 $200,000 $200,000
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $200,000 $200,000 $200,000
Total Assets $1,095,203 $2,080,156 $3,189,281
Liabilities and Capital FY 2011 FY 2012 FY 2013
Current Liabilities
Accounts Payable $54,203 $64,915 $70,381
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $54,203 $64,915 $70,381
Long-term Liabilities $0 $0 $0
Total Liabilities $54,203 $64,915 $70,381
Paid-in Capital $970,930 $970,930 $970,930
Retained Earnings ($425,930) $70,070 $1,044,312
Earnings $496,000 $974,242 $1,103,659
Total Capital $1,041,000 $2,015,242 $3,118,900
Total Liabilities and Capital $1,095,203 $2,080,156 $3,189,281
Net Worth $1,041,000 $2,015,242 $3,118,900
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COMPANY NAME
7.7 Business Ratios
The following table contains important business ratios from the freight transportation arrangement industry, as determined by the
Standard Industry Classification (SIC) Index code 4731.
Table: Ratios
Ratio Analysis
FY 2011 FY 2012 FY 2013 Industry Profile
Sales Growth 0.00% 58.06% 10.53% 5.91%
Percent of Total Assets
Other Current Assets 5.62% 2.96% 1.93% 26.29%
Total Current Assets 81.74% 90.39% 93.73% 43.40%
Long-term Assets 18.26% 9.61% 6.27% 56.60%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.95% 3.12% 2.21% 27.92%
Long-term Liabilities 0.00% 0.00% 0.00% 27.61%
Total Liabilities 4.95% 3.12% 2.21% 55.53%
Net Worth 95.05% 96.88% 97.79% 44.47%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.14% 90.32% 90.97% 100.00%
Selling, General & Administrative Expenses 101.74% 91.91% 86.59% 80.47%
Advertising Expenses 1.63% 0.75% 0.69% 0.25%
Profit Before Interest and Taxes 58.95% 73.25% 75.08% 0.69%
Main Ratios
Current 16.52 28.96 42.47 1.19
Quick 16.52 28.96 42.47 0.96
Total Debt to Total Assets 4.95% 3.12% 2.21% 61.61%
Pre-tax Return on Net Worth 68.07% 69.06% 50.55% 4.25%
Pre-tax Return on Assets 64.70% 66.91% 49.44% 1.63%
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COMPANY NAME
Additional Ratios FY 2011 FY 2012 FY 2013
Net Profit Margin 41.26% 51.28% 52.56% n.a
Return on Equity 47.65% 48.34% 35.39% n.a
Activity Ratios
Accounts Payable Turnover 10.59 12.17 12.17 n.a
Payment Days 27 28 29 n.a
Total Asset Turnover 1.10 0.91 0.66 n.a
Debt Ratios
Debt to Net Worth 0.05 0.03 0.02 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $841,000 $1,815,242 $2,918,900 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.91 1.09 1.52 n.a
Current Debt/Total Assets 5% 3% 2% n.a
Acid Test 16.52 28.96 42.47 n.a
Sales/Net Worth 1.15 0.94 0.67 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 19
Appendix
Table: Sales Forecast
Sales Forecast
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Sales
Freight Services 0% $80,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Delete 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $80,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Direct Cost of Sales Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Office Operations $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441
Vehicle Maintenance and Fuel $2,867 $0 $0 $2,867 $0 $0 $0 $2,867 $0 $0 $0 $2,867
Contract Labor $2,491 $2,492 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491
Subtotal Direct Cost of Sales $16,799 $13,933 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799
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Appendix
Table: Personnel
Personnel Plan
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Owner/Manager 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Drivers 0% $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750
Total People 3 3 3 3 3 3 3 3 3 4 4 4
Total Payroll $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Sales $80,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Direct Cost of Sales $16,799 $13,933 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $16,799 $13,933 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799 $13,932 $13,932 $13,932 $16,799
Gross Margin $63,201 $69,267 $72,596 $73,190 $79,657 $83,401 $87,294 $88,476 $95,554 $99,933 $104,488 $106,358
Gross Margin % 79.00% 83.25% 83.90% 81.33% 85.11% 85.69% 86.24% 84.04% 87.28% 87.76% 88.24% 86.36%
Expenses
Payroll $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000
Sales and Marketing and Other Expenses $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Operations $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441 $11,441
Vehicle Maintenance and Expense 15% $956 $956 $956 $956 $956 $956 $956 $956 $956 $956 $956 $956
Contract Labor $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490
Total Operating Expenses $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237 $26,237
Profit Before Interest and Taxes $36,964 $43,030 $46,359 $46,953 $53,420 $57,164 $61,057 $62,239 $69,317 $73,696 $78,251 $80,121
EBITDA $36,964 $43,030 $46,359 $46,953 $53,420 $57,164 $61,057 $62,239 $69,317 $73,696 $78,251 $80,121
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $11,089 $12,909 $13,908 $14,086 $16,026 $17,149 $18,317 $18,672 $20,795 $22,109 $23,475 $24,036
Net Profit $25,875 $30,121 $32,451 $32,867 $37,394 $40,015 $42,740 $43,567 $48,522 $51,587 $54,776 $56,085
Net Profit/Sales 32.34% 36.20% 37.50% 36.52% 39.96% 41.11% 42.22% 41.38% 44.32% 45.31% 46.26% 45.54%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Cash Received
Cash from Operations
Cash Sales $80,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Subtotal Cash from Operations $80,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $580,000 $83,200 $86,528 $89,989 $93,589 $97,333 $101,226 $105,275 $109,486 $113,865 $118,420 $123,157
Expenditures Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Expenditures from Operations
Cash Spending $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000
Bill Payments $1,438 $43,090 $42,112 $43,178 $46,091 $45,232 $46,357 $47,593 $50,683 $50,008 $51,323 $52,759
Subtotal Spent on Operations $12,438 $54,090 $53,112 $54,178 $57,091 $56,232 $57,357 $58,593 $61,683 $61,008 $62,323 $63,759
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 $55,500 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $161,000 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $12,438 $54,090 $53,112 $270,678 $57,091 $56,232 $57,357 $58,593 $61,683 $61,008 $62,323 $63,759
Net Cash Flow $567,562 $29,110 $33,416 ($180,689) $36,498 $41,101 $43,869 $46,682 $47,803 $52,857 $56,097 $59,398
Cash Balance $567,562 $596,672 $630,088 $449,399 $485,897 $526,997 $570,866 $617,548 $665,351 $718,208 $774,304 $833,703
Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance
Sheet
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Assets Starting
Balances
Current Assets
Cash $0 $567,562 $596,672 $630,088 $449,399 $485,897 $526,997 $570,866 $617,548 $665,351 $718,208 $774,304 $833,703
Other Current Assets $6,000 $6,000 $6,000 $6,000 $61,500 $61,500 $61,500 $61,500 $61,500 $61,500 $61,500 $61,500 $61,500
Total Current Assets $6,000 $573,562 $602,672 $636,088 $510,899 $547,397 $588,497 $632,366 $679,048 $726,851 $779,708 $835,804 $895,203
Long-term Assets
Long-term Assets $39,000 $39,000 $39,000 $39,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long-term Assets $39,000 $39,000 $39,000 $39,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
Total Assets $45,000 $612,562 $641,672 $675,088 $710,899 $747,397 $788,497 $832,366 $879,048 $926,851 $979,708 $1,035,804 $1,095,203
Page 5
Appendix
Liabilities and Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Capital
Current
Liabilities
Accounts $0 $41,688 $40,676 $41,641 $44,585 $43,688 $44,774 $45,903 $49,017 $48,299 $49,569 $50,889 $54,203
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $41,688 $40,676 $41,641 $44,585 $43,688 $44,774 $45,903 $49,017 $48,299 $49,569 $50,889 $54,203
Liabilities
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $0 $41,688 $40,676 $41,641 $44,585 $43,688 $44,774 $45,903 $49,017 $48,299 $49,569 $50,889 $54,203
Paid-in Capital $470,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930 $970,930
Retained ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930) ($425,930)
Earnings
Earnings $0 $25,875 $55,996 $88,447 $121,314 $158,708 $198,723 $241,463 $285,030 $333,552 $385,139 $439,915 $496,000
Total Capital $45,000 $570,875 $600,996 $633,447 $666,314 $703,708 $743,723 $786,463 $830,030 $878,552 $930,139 $984,915 $1,041,000
Total Liabilities $45,000 $612,562 $641,672 $675,088 $710,899 $747,397 $788,497 $832,366 $879,048 $926,851 $979,708 $1,035,804 $1,095,203
and Capital
Net Worth $45,000 $570,875 $600,996 $633,447 $666,314 $703,708 $743,723 $786,463 $830,030 $878,552 $930,139 $984,915 $1,041,000
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