[INSERT IMAGE/LOGO]
COMPANY NAME
ADDRESS
CITY, STATE ZIP CODE
Tel.
Fax:
Email:
© Copyright 2012 Docstoc Inc. 1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by COMPANY NAME in this business plan is confidential; therefore,
reader agrees not to disclose it without the express written permission of COMPANY NAME.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm
or damage to COMPANY NAME.
Upon request, this document is to be immediately returned to COMPANY NAME.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
© Copyright 2012 Docstoc Inc. 2
Table of Contents
1.0 Executive Summary .............................................................................................................................................. 1
1.1 Objectives ........................................................................................................................................................ 2
1.2 Mission ............................................................................................................................................................. 2
1.3 Keys to Success ............................................................................................................................................... 2
2.0 Company Summary .............................................................................................................................................. 2
2.1 Company Ownership ........................................................................................................................................ 2
2.2 Company History .............................................................................................................................................. 2
Table: Past Performance ................................................................................................................................... 3
3.0 Products ............................................................................................................................................................... 4
4.0 Market Analysis Summary .................................................................................................................................... 4
4.1 Market Segmentation ....................................................................................................................................... 4
Table: Market Analysis ....................................................................................................................................... 5
4.2 Target Market Segment Strategy ..................................................................................................................... 5
4.3 Industry Analysis .............................................................................................................................................. 6
4.3.1 Competition and Buying Patterns .............................................................................................................. 6
5.0 Strategy and Implementation Summary ................................................................................................................ 6
5.1 Competitive Edge ............................................................................................................................................. 6
5.2 Marketing Strategy ........................................................................................................................................... 6
5.3 Sales Strategy .................................................................................................................................................. 6
5.3.1 Sales Forecast .......................................................................................................................................... 7
Table: Sales Forecast .................................................................................................................................... 7
5.4 Milestones ........................................................................................................................................................ 9
Table: Milestones ............................................................................................................................................... 9
6.0 Management Summary ........................................................................................................................................ 9
6.1 Personnel Plan ............................................................................................................................................... 10
Table: Personnel .............................................................................................................................................. 10
7.0 Financial Plan ..................................................................................................................................................... 10
7.1 Important Assumptions ................................................................................................................................... 10
7.2 Break-even Analysis....................................................................................................................................... 10
Table: Break-even Analysis ............................................................................................................................. 11
7.3 Projected Profit and Loss ............................................................................................................................... 12
Table: Profit and Loss ...................................................................................................................................... 12
7.4 Projected Cash Flow ...................................................................................................................................... 15
Table: Cash Flow ............................................................................................................................................. 15
7.5 Projected Balance Sheet ................................................................................................................................ 17
Table: Balance Sheet....................................................................................................................................... 17
7.6 Business Ratios.............................................................................................................................................. 18
7.6 Business Ratios.............................................................................................................................................. 18
Table: Ratios .................................................................................................................................................... 18
Page 1
COMPANY NAME
1.0 Executive Summary
There is a need in [INSERT TOWN] for a large selection of quality used cars, and COMPANY NAME will sell these top-quality used
vehicles at a competitive price. COMPANY NAME will continue to develop its excellent working relationship with local dealers and
auctions to bring the savings to the customer.
COMPANY NAME will be successful because the company offers something different; a pleasant car buying experience. COMPANY
NAME will create a purchasing environment that caters to the customer's needs. COMPANY NAME is also selling a professional
service and an experience in car buying that will bring customers back again, as well as referring friends and family. The
company estimates an optimistic gross margin over the industry average. COMPANY NAME will be successful because of the
excellent team the company has assembled and the drive and determination of the owner, OWNER’S NAME.
The purpose of this plan is to seek grant funding in the amount of $500,000 in order to purchase a company vehicle, increase the
company's on-hand inventory and expand the current facility of operations.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 1
COMPANY NAME
1.1 Objectives
1. 100% customer satisfaction, measured through repeat customers, referrals and surveys.
2. To achieve and surpass the industry average profit margin within the first two-years.
3. To achieve a respectable net profit by year two.
1.2 Mission
COMPANY NAME provides a unique car buying experience to the customers in the [INSERT TOWN] located in [INSERT COUNTY]
and the surrounding counties of [INSERT SURROUNDING COUNTIES]. One that focuses on customer satisfaction first, COMPANY
NAME understands that vehicle purchasing is a necessary, but sometimes unpleasant experience. COMPANY NAME'S goal is to
provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality
product.
COMPANY NAME also believes it is important to have quality vehicles at a low cost. The company will make a profit by generating
sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and
performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees
and owners, COMPANY NAME will create a work environment that is enjoyable and profitable for all.
1.3 Keys to Success
To succeed in this business COMPANY NAME must:
Have a team of experienced professionals.
Maintain a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive
price.
Ensure customer satisfaction by encouraging the two most important values, honor and integrity.
Create high morale by rewarding employee success with monetary compensation.
2.0 Company Summary
COMPANY NAME is a corporation established in 1999. The company provides a unique car buying experience for customers in
the [INSERT COUNTY] by providing inspected, top quality, used vehicles for all types of consumers at a competitive price.
2.1 Company Ownership
COMPANY NAME is a privately held corporation. COMPANY NAME is 100% owned by OWNER’S NAME.
2.2 Company History
COMPANY NAME was founded in [INSERT TOWN] in 1999 and is solely owned by OWNER’S NAME. The company has run
successfully the majority of the time in operation and has long since provided competition to the other used car company in town.
The company currently has three employees and has the desire to expand. The company is currently managed OWNER’S NAME.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 2
COMPANY NAME
Table: Past Performance
Past Performance
FY 2008 FY 2009 FY 2010
Sales $1,547,015 $1,418,248 $1,207,862
Gross Margin $620,937 $492,170 $281,784
Gross Margin % 40.14% 34.70% 23.33%
Operating Expenses $273,746 $250,644 $290,929
Balance Sheet
FY 2008 FY 2009 FY 2010
Current Assets
Cash $1,115 $29,878 $7,752
Other Current Assets $102,403 $133,282 $926,078
Total Current Assets $103,518 $163,160 $933,830
Long-term Assets
Long-term Assets $116,640 $108,640 $108,640
Accumulated Depreciation $39,421 $34,591 $39,421
Total Long-term Assets $77,219 $74,049 $69,219
Total Assets $180,737 $237,209 $1,003,049
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $0 $0 $0
Retained Earnings $273,201 $308,818 $1,139,726
Earnings ($92,464) ($71,609) ($136,677)
Total Capital $180,737 $237,209 $1,003,049
Total Capital and Liabilities $180,737 $237,209 $1,003,049
Other Inputs
Payment Days 0 0 0
OWNER’S NAME – Tel. [INSERT NUMBER] Page 3
COMPANY NAME
3.0 Products
COMPANY NAME sells top-quality used vehicles at a competitive price. COMPANY NAME buys pre-inspected vehicles wholesale
from well known local car dealers and auto auctions COMPANY NAME continually maintains a diverse stock of vehicles, providing the
widest selection for individual needs.
4.0 Market Analysis Summary
Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car
market, there is a large inventory of used cars available for re-sale.
The market for used cars is finding some benefits in the downtrodden economy, as some consumers look to previously owned
vehicles for more value. Some lots are even devoting more space to used cars.
New car sales are on a dramatic downward slide from around 16 million in 2007 to about 13 million in 2008. And it looks like things
will get worse before they get better. With fewer people looking for new cars, dealers are depending on customers to help them get
through this slump.
4.1 Market Segmentation
COMPANY NAME market segmentation will consist of four basic segments; students, retired, families, and singles.
Students will include high school and college age students who need a safe and economical car. This group is concerned with price,
flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for less car. They will also
buy cars more often than others, on average every two to three years.
The retired group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable,
nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years.
Families will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long
trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping
for a specific make or model.
The last group is the singles. They are similar to the students in that they want flashly cool cars, but may be a working professional
who can afford to pay more for a higher-quality vehicle.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 4
COMPANY NAME
Table: Market Analysis
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Students 10% 45,000 49,500 54,450 59,895 65,885 10.00%
Retired 12% 60,000 67,200 75,264 84,296 94,412 12.00%
Families 10% 400,000 440,000 484,000 532,400 585,640 10.00%
Singles 10% 200,000 220,000 242,000 266,200 292,820 10.00%
Other 10% 20,000 22,000 24,200 26,620 29,282 10.00%
Total 10.17% 725,000 798,700 879,914 969,411 1,068,039 10.17%
4.2 Target Market Segment Strategy
COMPANY NAME will focus on providing for the average car buyer first. The company's focus will be on those most likely to purchase
low-end, low-cost vehicles (highest profit margin). The students, families, retired, and singles have very different needs and wants.
COMPANY NAME will focus on each group separately, and prioritize the company's efforts. We will look at every customer as a
potential repeat customer, reference, or spokesperson for other car buyers.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 5
COMPANY NAME
4.3 Industry Analysis
The used car sales industry is continuing to grow at or above population increases. Vehicles are the second largest purchase
most consumers make, and more people are buying new and used vehicles than ever.
Relatively good margins have resulted in some success in the local used car industry.
4.3.1 Competition and Buying Patterns
Used car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more
COMPANY NAME can provide a high-quality sales experience, the more successful the company will be. Employees of COMPANY
NAME will provide a friendly and personal experience for the buyer. COMPANY NAME will follow up and ensure customer
satisfaction. The company will rely on these customers for an excellent reference to other car buyers. This company will build an
excellent working relationship with the company's suppliers and customers.
5.0 Strategy and Implementation Summary
COMPANY NAME location is a very important competitive edge. The company is in [INSERT TOWN], which is located in [INSERT
COUNTY] because people travel from all over the area to buy used vehicles there.
The other competitive edge COMPANY NAME needs to develop is the buying experience and reputation as a local leader in customer
satisfaction. This advantage is important to COMPANY NAME because the company relies on word of mouth to generate additional
customers. Integrity is the company's difference.
5.1 Competitive Edge
As previously mentioned, COMPANY NAME will provide additional used vehicle inventory to offer to the company's clients.
COMPANY NAME is one of the few used auto dealerships in [INSERT TOWN] and the surrounding areas. Therefore, the company's
specialty will be known throughout the county and draw in increased sales.
In the current depressed economy, customers will be looking for cost-efficient and conservative purchasing. As previously mentioned,
the sales of new automobiles have significantly dropped and customers will be searching for an expensive yet reliable mode of
transportation.
5.2 Marketing Strategy
Marketing promotions will be consistent with the Mission Statement and support the following objectives:
a. 100% customer satisfaction, measured through repeat customers, referrals and surveys.
b. To achieve a respectable profit margin within the first three-years.
c. To achieve a healthy net profit by year two.
5.3 Sales Strategy
Sales compensation is based on a percent of profits. COMPANY NAME will invest adequate time and resources into training each
member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission.
Good performance is rewarded with increased commission and bonuses. However integrity will not be sacrificed for sales. Customer
satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion and long-term salesperson-
customer relationships will take precedence over sales closure.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 6
COMPANY NAME
5.3.1 Sales Forecast
The following table and charts give a run-down on forecasted sales. COMPANY NAME expects sales to increase at a slow rate per
month for each product in the first year. From June through September COMPANY NAME expects minimal growth due to the
depressed economy. October through December COMPANY NAME expects decreased sales due to historical trends, and a
depreciation in value based on less demand. February through August we expect increased sales growth again. In 2011 and 2012
COMPANY NAME expects solid steady sales growth as Integrity Auto Sales claims a larger market share. COMPANY NAME expects
increased sales in lower-priced vehicles, and this will be the company's primary product that yields the highest margin.
The risks involved with this forecast include technology and the need for low impact environment friendly transportation. Older used
cars tend to be less efficient, and will become less popular. Current hybrid vehicles are priced extremely high, and car makers have
not found an economical answer for consumers. COMPANY NAME estimates conservative earnings from selling extended warranties
and from selling loans.
Table: Sales Forecast
Sales Forecast
FY 2011 FY 2012 FY 2013
Sales
Low-end vehicles $283,846 $297,723 $306,655
Average vehicles $506,089 $521,272 $536,910
High-end vehicles $536,656 $563,489 $591,663
Loan sales $42,936 $45,080 $47,334
Warranty sales $7,200 $7,560 $7,938
Other/consignments $235,000 $246,750 $259,088
Total Sales $1,611,727 $1,681,874 $1,749,588
Direct Cost of Sales FY 2011 FY 2012 FY 2013
Purchase of Vehicles for Resale $993,448 $1,023,251 $1,053,949
Delete $0 $0 $0
Subtotal Direct Cost of Sales $993,448 $1,023,251 $1,053,949
OWNER’S NAME – Tel. [INSERT NUMBER] Page 7
COMPANY NAME
OWNER’S NAME – Tel. [INSERT NUMBER] Page 8
COMPANY NAME
5.4 Milestones
The accompanying table lists important program milestones with dates and budgets for each. The milestone schedule indicates our
emphasis on planning for implementation.
What the table doesn't show is the commitment behind it COMPANY NAME business plan includes complete provisions for plan-vs.-
actual analysis, and the company will hold follow-up meetings every month to discuss the variance and course corrections.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Inventory 9/1/2010 12/31/2010 $297,500 INSERT NAME General Manager
New Staff Salary 9/1/2010 12/31/2010 $52,500 INSERT NAME General Manager
Totals $350,000
6.0 Management Summary
COMPANY NAME will consist of three initial employees. The owner will manage over all operations and the sales manager will
manage all buying and selling of inventory.
Once the gross margin and cash flow will support it, COMPANY NAME will hire an additional salesman.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 9
COMPANY NAME
6.1 Personnel Plan
The personnel plan and monthly salary is included in the following table. Bonuses will be paid for monthly sales that exceed
forecasted sales to all employees. As the business grows, additional salesmen will be added.
Table: Personnel
Personnel Plan
FY 2011 FY 2012 FY 2013
Owner/Manager $0 $0 $0
Sales Manager $31,500 $32,445 $33,418
Salesman $21,000 $21,630 $22,279
Total People 3 4 5
Total Payroll $52,500 $54,075 $55,697
7.0 Financial Plan
1. Growth will be moderate to good with cash flows being steady.
2. Future marketing will remain below 10% of sales.
3. The company will properly train and educate all future employees to bring in the highest profit and customer satisfaction for
COMPANY NAME.
7.1 Important Assumptions
COMPANY NAME assumes that conservative earnings from selling loans and extended warranties will be made.
The other assumption is that current market conditions will remain for the next two to three years. Low rates will have a positive
impact on sales and lending for the short term.
7.2 Break-even Analysis
The following break-even analysis table has been completed on the basis of average costs/prices. With average per unit sold costs
and average variable costs as shown, the table calculates what COMPANY NAME needs to make per month, or sell in units, to break
even each month.
OWNER’S NAME – Tel. [INSERT NUMBER] Page 10
COMPANY NAME
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $43,091
Assumptions:
Average Percent Variable Cost 62%
Estimated Monthly Fixed Cost $16,530
OWNER’S NAME – Tel. [INSERT NUMBER] Page 11
COMPANY NAME
7.3 Projected Profit and Loss
The key to increasing overall sales is to focus on acquiring vehicles at, or below, wholesale price. Operating, advertising and
consulting costs will increase at a slower rate than sales and profit in the next three years COMPANY NAME predicts a positive gross
margin during 2011, increasing modestly to 2012. This optimistic projection is based on the sales strategy and market
analysis. Projected sales will support continued operations, and final success will be based on actual sales and an increasing gross
margin.
Table: Profit and Loss
Pro Forma Profit and Loss
FY 2011 FY 2012 FY 2013
Sales $1,611,727 $1,681,874 $1,749,588
Direct Cost of Sales $993,448 $1,023,251 $1,053,949
Other Production Expenses $0 $0 $0
Total Cost of Sales $993,448 $1,023,251 $1,053,949
Gross Margin $618,279 $658,623 $695,639
Gross Margin % 38.36% 39.16% 39.76%
Expenses
Payroll $52,500 $54,075 $55,697
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $400 $500 $600
Delete $0 $0 $0
Office Operations $145,464 $149,828 $154,323
Total Operating Expenses $198,364 $204,403 $210,620
Profit Before Interest and Taxes $419,915 $454,220 $485,019
EBITDA $420,315 $454,720 $485,619
Interest Expense $0 $0 $0
Taxes Incurred $125,975 $136,266 $145,506
Net Profit $293,941 $317,954 $339,513
Net Profit/Sales 18.24% 18.90% 19.41%
OWNER’S NAME – Tel. [INSERT NUMBER] Page 12
COMPANY NAME
OWNER’S NAME – Tel. [INSERT NUMBER] Page 13
COMPANY NAME
OWNER’S NAME – Tel. [INSERT NUMBER] Page 14
COMPANY NAME
7.4 Projected Cash Flow
COMPANY NAME is positioning the company in the market as a medium risk concern with steady cash flows. All cash flow over 50%
will be re-invested into the company with at least 10% of which will be invested in long-term assets. COMPANY NAME will reserve up
to 5% for bonuses, sales awards, and professional training.
Table: Cash Flow
Pro Forma Cash Flow
FY 2011 FY 2012 FY 2013
Cash Received
Cash from Operations
Cash Sales $1,611,727 $1,681,874 $1,749,588
Subtotal Cash from Operations $1,611,727 $1,681,874 $1,749,588
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 $2,111,727 $1,681,874 $1,749,588
Expenditures FY 2011 FY 2012 FY 2013
Expenditures from Operations
Cash Spending $52,500 $54,075 $55,697
Bill Payments $1,140,641 $1,325,973 $1,350,126
Subtotal Spent on Operations $1,193,141 $1,380,048 $1,405,823
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 $150,000 $0 $0
Purchase Long-term Assets $250,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,593,141 $1,380,048 $1,405,823
Net Cash Flow $518,586 $301,826 $343,765
Cash Balance $526,338 $828,164 $1,171,929
OWNER’S NAME – Tel. [INSERT NUMBER] Page 15
COMPANY NAME
OWNER’S NAME – Tel. [INSERT NUMBER] Page 16
COMPANY NAME
7.5 Projected Balance Sheet
As you can see in the projected balance sheet, COMPANY NAME net worth will rise steadily each month and year. This is an
increase in working capital and will fund future projects and expansion.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2011 FY 2012 FY 2013
Assets
Current Assets
Cash $526,338 $828,164 $1,171,929
Other Current Assets $1,076,078 $1,076,078 $1,076,078
Total Current Assets $1,602,416 $1,904,242 $2,248,007
Long-term Assets
Long-term Assets $358,640 $358,640 $358,640
Accumulated Depreciation $39,821 $40,321 $40,921
Total Long-term Assets $318,819 $318,319 $317,719
Total Assets $1,921,235 $2,222,561 $2,565,726
Liabilities and Capital FY 2011 FY 2012 FY 2013
Current Liabilities
Accounts Payable $124,246 $107,617 $111,269
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $124,246 $107,617 $111,269
Long-term Liabilities $0 $0 $0
Total Liabilities $124,246 $107,617 $111,269
Paid-in Capital $500,000 $500,000 $500,000
Retained Earnings $1,003,049 $1,296,990 $1,614,944
Earnings $293,941 $317,954 $339,513
Total Capital $1,796,990 $2,114,944 $2,454,457
Total Liabilities and Capital $1,921,235 $2,222,561 $2,565,726
Net Worth $1,796,989 $2,114,944 $2,454,457
OWNER’S NAME – Tel. [INSERT NUMBER] Page 17
COMPANY NAME
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC)
code 5521, (NAICS 441120) Used Car Dealers, are shown for comparison.
Table: Ratios
Ratio Analysis
FY 2011 FY 2012 FY 2013 Industry Profile
Sales Growth 33.44% 4.35% 4.03% 2.91%
Percent of Total Assets
Other Current Assets 56.01% 48.42% 41.94% 28.07%
Total Current Assets 83.41% 85.68% 87.62% 84.50%
Long-term Assets 16.59% 14.32% 12.38% 15.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 6.47% 4.84% 4.34% 38.53%
Long-term Liabilities 0.00% 0.00% 0.00% 15.81%
Total Liabilities 6.47% 4.84% 4.34% 54.34%
Net Worth 93.53% 95.16% 95.66% 45.66%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 38.36% 39.16% 39.76% 19.38%
Selling, General & Administrative Expenses 13.87% 15.62% 15.73% 6.40%
Advertising Expenses 0.56% 0.17% 0.20% 1.10%
Profit Before Interest and Taxes 26.05% 27.01% 27.72% 2.30%
Main Ratios
Current 12.90 17.69 20.20 1.84
Quick 12.90 17.69 20.20 0.80
Total Debt to Total Assets 6.47% 4.84% 4.34% 60.32%
Pre-tax Return on Net Worth 23.37% 21.48% 19.76% 17.42%
Pre-tax Return on Assets 21.86% 20.44% 18.90% 6.91%
OWNER’S NAME – Tel. [INSERT NUMBER] Page 18
COMPANY NAME
Additional Ratios FY 2011 FY 2012 FY 2013
Net Profit Margin 18.24% 18.90% 19.41% n.a
Return on Equity 16.36% 15.03% 13.83% n.a
Activity Ratios
Accounts Payable Turnover 10.18 12.17 12.17 n.a
Payment Days 27 32 30 n.a
Total Asset Turnover 0.84 0.76 0.68 n.a
Debt Ratios
Debt to Net Worth 0.07 0.05 0.05 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $1,478,170 $1,796,625 $2,136,738 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 1.19 1.32 1.47 n.a
Current Debt/Total Assets 6% 5% 4% n.a
Acid Test 12.90 17.69 20.20 n.a
Sales/Net Worth 0.90 0.80 0.71 n.a
Dividend Payout 0.00 0.00 0.00 n.a
OWNER’S NAME – Tel. [INSERT NUMBER] Page 19
Appendix
Table: Sales Forecast
Sales Forecast
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales
Low-end vehicles 0% $20,000 $20,600 $21,218 $21,855 $22,511 $23,186 $23,882 $24,598 $25,336 $26,096 $26,879 $27,685
Average vehicles 0% $30,000 $31,800 $33,708 $35,730 $37,874 $40,146 $42,555 $45,108 $47,814 $50,683 $53,724 $56,947
High-end vehicles 0% $30,000 $32,100 $34,347 $36,751 $39,324 $42,077 $45,022 $48,174 $51,546 $55,154 $59,015 $63,146
Loan sales 0% $2,400 $2,568 $2,748 $2,940 $3,146 $3,366 $3,602 $3,854 $4,124 $4,413 $4,722 $5,053
Warranty sales 0% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Other/consignments 0% $10,000 $25,000 $25,000 $25,000 $20,000 $10,000 $10,000 $20,000 $20,000 $20,000 $25,000 $25,000
Total Sales $93,000 $112,668 $117,621 $122,876 $123,455 $119,375 $125,661 $142,334 $149,420 $156,946 $169,940 $178,431
Direct Cost of Sales Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Purchase of Vehicles for Resale 0% $70,000 $72,100 $74,263 $76,491 $78,786 $81,150 $83,584 $86,092 $88,675 $91,335 $94,075 $96,897
Delete 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $70,000 $72,100 $74,263 $76,491 $78,786 $81,150 $83,584 $86,092 $88,675 $91,335 $94,075 $96,897
Page 1
Appendix
Table: Personnel
Personnel Plan
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Owner/Manager 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Manager 0% $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625
Salesman 0% $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750
Total People 2 2 2 2 2 2 2 2 3 3 3 3
Total Payroll $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales $93,000 $112,668 $117,621 $122,876 $123,455 $119,375 $125,661 $142,334 $149,420 $156,946 $169,940 $178,431
Direct Cost of Sales $70,000 $72,100 $74,263 $76,491 $78,786 $81,150 $83,584 $86,092 $88,675 $91,335 $94,075 $96,897
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $70,000 $72,100 $74,263 $76,491 $78,786 $81,150 $83,584 $86,092 $88,675 $91,335 $94,075 $96,897
Gross Margin $23,000 $40,568 $43,358 $46,385 $44,669 $38,225 $42,077 $56,242 $60,745 $65,611 $75,865 $81,534
Gross Margin % 24.73% 36.01% 36.86% 37.75% 36.18% 32.02% 33.48% 39.51% 40.65% 41.80% 44.64% 45.69%
Expenses
Payroll $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $100 $0 $0 $100 $0 $0 $100 $0 $0 $100 $0 $0
Delete $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Operations $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122 $12,122
Total Operating Expenses $16,597 $16,497 $16,497 $16,597 $16,497 $16,497 $16,597 $16,497 $16,497 $16,597 $16,497 $16,497
Profit Before Interest and Taxes $6,403 $24,071 $26,861 $29,788 $28,172 $21,728 $25,480 $39,745 $44,248 $49,014 $59,368 $65,037
EBITDA $6,503 $24,071 $26,861 $29,888 $28,172 $21,728 $25,580 $39,745 $44,248 $49,114 $59,368 $65,037
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,921 $7,221 $8,058 $8,936 $8,452 $6,518 $7,644 $11,924 $13,274 $14,704 $17,810 $19,511
Net Profit $4,482 $16,850 $18,803 $20,852 $19,720 $15,210 $17,836 $27,822 $30,974 $34,310 $41,558 $45,526
Net Profit/Sales 4.82% 14.96% 15.99% 16.97% 15.97% 12.74% 14.19% 19.55% 20.73% 21.86% 24.45% 25.51%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Cash Received
Cash from Operations
Cash Sales $93,000 $112,668 $117,621 $122,876 $123,455 $119,375 $125,661 $142,334 $149,420 $156,946 $169,940 $178,431
Subtotal Cash from Operations $93,000 $112,668 $117,621 $122,876 $123,455 $119,375 $125,661 $142,334 $149,420 $156,946 $169,940 $178,431
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 $593,000 $112,668 $117,621 $122,876 $123,455 $119,375 $125,661 $142,334 $149,420 $156,946 $169,940 $178,431
Expenditures Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Expenditures from Operations
Cash Spending $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375 $4,375
Bill Payments $2,801 $84,290 $91,543 $94,547 $97,610 $99,374 $99,909 $103,576 $110,269 $114,208 $118,356 $124,158
Subtotal Spent on Operations $7,176 $88,665 $95,918 $98,922 $101,985 $103,749 $104,284 $107,951 $114,644 $118,583 $122,731 $128,533
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current Assets $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $157,176 $88,665 $345,918 $98,922 $101,985 $103,749 $104,284 $107,951 $114,644 $118,583 $122,731 $128,533
Net Cash Flow $435,824 $24,003 ($228,297) $23,954 $21,470 $15,626 $21,377 $34,383 $34,776 $38,363 $47,209 $49,898
Cash Balance $443,576 $467,579 $239,282 $263,236 $284,706 $300,332 $321,709 $356,092 $390,868 $429,231 $476,440 $526,338
Page 4
Appendix
Table: Balance Sheet
Pro Forma
Balance
Sheet
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Assets Starting
Balances
Current
Assets
Cash $7,752 $443,576 $467,579 $239,282 $263,236 $284,706 $300,332 $321,709 $356,092 $390,868 $429,231 $476,440 $526,338
Other $926,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078 $1,076,078
Current
Assets
Total Current $933,830 $1,519,654 $1,543,657 $1,315,360 $1,339,314 $1,360,784 $1,376,410 $1,397,787 $1,432,170 $1,466,946 $1,505,309 $1,552,518 $1,602,416
Assets
Long-term
Assets
Long-term $108,640 $108,640 $108,640 $358,640 $358,640 $358,640 $358,640 $358,640 $358,640 $358,640 $358,640 $358,640 $358,640
Assets
Accumulated $39,421 $39,521 $39,521 $39,521 $39,621 $39,621 $39,621 $39,721 $39,721 $39,721 $39,821 $39,821 $39,821
Depreciation
Total Long- $69,219 $69,119 $69,119 $319,119 $319,019 $319,019 $319,019 $318,919 $318,919 $318,919 $318,819 $318,819 $318,819
term Assets
Total Assets $1,003,049 $1,588,773 $1,612,776 $1,634,479 $1,658,333 $1,679,803 $1,695,429 $1,716,706 $1,751,089 $1,785,865 $1,824,128 $1,871,337 $1,921,235
Page 5
Appendix
Liabilities Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
and Capital
Current
Liabilities
Accounts $0 $81,241 $88,395 $91,295 $94,298 $96,048 $96,464 $99,905 $106,466 $110,269 $114,222 $119,874 $124,246
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 $81,241 $88,395 $91,295 $94,298 $96,048 $96,464 $99,905 $106,466 $110,269 $114,222 $119,874 $124,246
Current
Liabilities
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $0 $81,241 $88,395 $91,295 $94,298 $96,048 $96,464 $99,905 $106,466 $110,269 $114,222 $119,874 $124,246
Liabilities
Paid-in $0 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Capital
Retained $1,139,726 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049 $1,003,049
Earnings
Earnings ($136,677) $4,482 $21,332 $40,135 $60,986 $80,707 $95,916 $113,752 $141,574 $172,547 $206,857 $248,415 $293,941
Total Capital $1,003,049 $1,507,531 $1,524,381 $1,543,184 $1,564,035 $1,583,756 $1,598,965 $1,616,801 $1,644,623 $1,675,596 $1,709,906 $1,751,464 $1,796,990
Total $1,003,049 $1,588,773 $1,612,776 $1,634,479 $1,658,333 $1,679,803 $1,695,429 $1,716,706 $1,751,089 $1,785,865 $1,824,128 $1,871,337 $1,921,235
Liabilities
and Capital
Net Worth $1,003,049 $1,507,531 $1,524,381 $1,543,184 $1,564,035 $1,583,756 $1,598,965 $1,616,801 $1,644,623 $1,675,596 $1,709,906 $1,751,464 $1,796,989
Page 6