Business Plan for Machine Tools

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									Business Plan for Machine
Tools
This Business Plan for a Machine Tools 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
              Address
           City, State Zip
               Phone:
                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 .........................................................................................................................2
2.0 Company Summary......................................................................................................................3
   2.1 Company Ownership................................................................................................................3
   2.2 Company History.......................................................................................................................3
       Table: Past Performance ............................................................................................................3
       Chart: Past Performance ............................................................................................................5
3.0 Products ............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................6
   4.1 Market Segmentation ..............................................................................................................6
       Table: Market Analysis................................................................................................................7
       Chart: Market Analysis (Pie).....................................................................................................7
   4.2 Target Market Segment Strategy .......................................................................................8
   4.3 Industry Analysis.......................................................................................................................8
       4.3.1 Competition and Buying Patterns ...............................................................................8
5.0 Strategy and Implementation Summary .............................................................................9
   5.1 SWOT Analysis ...........................................................................................................................9
       5.1.1 Strengths..............................................................................................................................9
       5.1.2 Weaknesses.........................................................................................................................9
       5.1.3 Opportunities ......................................................................................................................9
       5.1.4 Threats ..................................................................................................................................9
   5.2 Competitive Edge ....................................................................................................................10
   5.3 Marketing Strategy.................................................................................................................10
   5.4 Sales Strategy ..........................................................................................................................10
       5.4.1 Sales Forecast ..................................................................................................................10
           Table: Sales Forecast ............................................................................................................11
           Chart: Sales Monthly .............................................................................................................11
           Chart: Sales by Year..............................................................................................................12
   5.5 Milestones ..................................................................................................................................12
       Table: Milestones ........................................................................................................................12

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                                                              Table of Contents



       Chart: Milestones ........................................................................................................................13
6.0 Management Summary ............................................................................................................13
   6.1 Personnel Plan ..........................................................................................................................13
       Table: Personnel..........................................................................................................................13
7.0 Financial Plan ................................................................................................................................14
   7.1 Important Assumptions ........................................................................................................14
   7.2 Break-even Analysis ..............................................................................................................14
       Table: Break-even Analysis ....................................................................................................14
       Chart: Break-even Analysis ....................................................................................................14
   7.3 Projected Profit and Loss .....................................................................................................15
       Table: Profit and Loss................................................................................................................15
       Chart: Profit Monthly .................................................................................................................16
       Chart: Profit Yearly.....................................................................................................................17
       Chart: Gross Margin Monthly .................................................................................................17
       Chart: Gross Margin Yearly.....................................................................................................18
   7.4 Projected Cash Flow...............................................................................................................18
       Table: Cash Flow .........................................................................................................................18
       Chart: Cash ...................................................................................................................................19
   7.5 Projected Balance Sheet ......................................................................................................19
       Table: Balance Sheet.................................................................................................................20
   7.6 Business Ratios ........................................................................................................................21
       Table: Ratios .................................................................................................................................21
Table: Sales Forecast ..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow ...................................................................................................................................4
Table: Cash Flow ...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................6
Table: Balance Sheet...........................................................................................................................6




                                                                                                                                              Page 2
                                                                COMPANY NAME.                DATE


1.0 Executive Summary
   Introduction:
   COMPANY NAME is the first company in the USA to receive the authorization as a Certified Re-
   grind Source for Business Group USA. The people at COMPANY NAME are committed to
   supplying excellent customers with products that are made to the highest standards in the
   industry. Our goal is to utilize our highly skilled employees, our state of the art equipment and
   our dependable suppliers to achieve an even higher quality level of products and services at
   competitive prices, delivered on time, while maintaining a unique work environment.
   The Company:
   COMPANY NAME is a manufacturer of carbide round tooling for the metal cutting industries. We
   design, layout the machining process, and manufacturer these types of carbide round shank
   tools. Our customer base ranges from automotive, medical, and aerospace to diesel injection
   components. We specialize very close tolerance blue print tooling with very difficult forms and
   step tolerance. The tools we build go to customers like Robert Bosch Fuel Systems, Delphi,
   Medtronic, Continental and many second tier very large general machining shops for many
   different kinds of product like turbines for power generation, Briggs Stratton small motors,
   Kohler plumbing fixtures and diesel fuel injection.
   Products and Services:
   Since COMPANY NAME's establishment, we have specialized in grinding high performance
   tooling using state-of-the-art equipment and controls. In continuing with this precedence we
   have added a TTB - TGC 54N 6 axes 4 spindle micro tool grinding center, this is coupled with
   “Numroto 3-D” simulation software to allow virtual design and programming.
   MANUFACTURING SERVICES:
      Tool Design & Development
      Cylindrical Preparation of Tool Blanks
      Grinding of Tool
      Inspection
      Edge Preparation and Tool Polishing
      Coating
      Laser Etching
   Financing:
   COMPANY NAME is seeking funds in the range of $425,000-$500,000 to help the purchase of
   new machines, increase the advertising, increase and train labor, and finally create a new web
   site. The machines Alliance would like to purchase will be able to run tools after hours with no
   supervision. The lights out production on standard type tooling like high performance drills and
   end mills allows COMPANY NAME to increase the hours of production for no additional
   employees or operational expense. COMPANY NAME has plans to start a new line of standard
   high performance drills with the purchase of this new equipment. COMPANY NAME expects a
   significant increase in revenue due to the expansion of new equipment.




                                                                                                  1
                                                                   COMPANY NAME.           DATE


   Chart: Highlights

                                 Highlights
       $4,000,000

       $3,600,000

       $3,200,000

       $2,800,000
                                                                       Sales
       $2,400,000

       $2,000,000                                                      Gross Margin

       $1,600,000                                                      Net Profit

       $1,200,000

        $800,000

        $400,000

              $0
                      FY 2011          FY 2012           FY 2013




1.1 Objectives
   The objectives of COMPANY NAME are:
         Increase production and sale from
         Increase sales from
         Establish strategic relationships with 10-15
         Increase gross margins from fifteen percent (15%) to seventeen percent (17%) in the next
          three years.
1.2 Mission
   COMPANY NAME is committed to customer satisfaction through tooling excellence. Our goal is
   to provide you with a premium product with 100% customer satisfaction on every order. Other
   services include tool modification and regrinding.
1.3 Keys to Success
   To succeed COMPANY NAME must:
         Implement a successful advertisement and marketing campaign to inform the existing
          clientele and the public.
         Purchase new equipment.
         Retain the services of a reputable company.
         Build brand image and brand equity through marketing.




                                                                                                2
                                                                COMPANY NAME.                DATE


2.0 Company Summary
   Established in 1995, COMPANY NAME specializes in the design and manufacture of precision
   ground, blueprint rotary carbide cutting tools. Our manufacturing facility has implemented the
   industry leading methods and standards necessary to generate the highest quality products
   available. Our diverse team of Engineers and Technicians, with an extensive background in
   cutting tool performance and design, work to assure that all customers receive the same quality
   product on a timely basis. COMPANY NAME offers state of the art grinding services to our
   customers. Our facility was designed and built with this in mind to create a production setting
   that minimizes environmental variables. Our staff of dedicated professionals is waiting to serve
   you. Please give us a call and see what Team Alliance is all about.
2.1 Company Ownership
   Established in 1995, COMPANY NAME is owned by YOUR NAME. YOUR NAME, President, runs
   the business and the day to day operations. He has over 36 years experience in the cutting tool
   industries and has been in this type business all his life. NAME, Vice President, is in charge of
   sales and marketing and is an Engineer Graduate of University in Virginia. NAME worked for
   ACME Grinders, USA for about 10 years as a sales and application Engineer, teaching people
   how to run the types of machines we use to build our tools. NAME has been with COMPANY
   NAME for 11 years.
2.2 Company History
   Established in 1995 COMPANY NAME has been an established and reputable company. Since
   COMPANY NAME's establishment, we have specialized in grinding high performance tooling
   using state-of-the-art equipment and controls. In continuing with this precedence we have
   added a TTB - TGC 54N 6 axes 4 spindle micro tool grinding center, this is coupled with
   “Numroto 3-D” simulation software to allow virtual design and programming. Our four Walter
   CNC mini-power grinders and three Walter CNC power grinders are complemented by this
   addition.

Table: Past Performance


Past Performance
                                                 FY 2008           FY 2009         FY 2010
Sales                                         $2,486,475        $1,563,991      $2,186,475
Gross Margin                                    $732,756          $553,398        $677,807
Gross Margin %                                   29.47%            35.38%          31.00%
Operating Expenses                              $922,284          $685,152        $685,152




                                                                                                  3
                                                   COMPANY NAME.             DATE




Balance Sheet
                                        FY 2008      FY 2009      FY 2010

Current Assets
Cash                                    $32,525      $90,013     $100,000
Other Current Assets                   $310,843     $327,621     $327,621
Total Current Assets                   $343,368     $417,634     $427,621

Long-term Assets
Long-term Assets                      $3,625,063   $3,625,063   $4,025,231
Accumulated Depreciation              $2,148,688   $2,343,848   $2,625,848
Total Long-term Assets                $1,476,375   $1,281,215   $1,399,383

Total Assets                          $1,819,743   $1,698,849   $1,827,004

Current Liabilities
Accounts Payable                       $166,529     $109,969     $113,268
Current Borrowing                      $490,380     $309,919     $212,123
Other Current Liabilities (interest     $35,632      $26,945      $14,959
free)
Total Current Liabilities              $692,541     $446,833     $340,350

Long-term Liabilities                   $912,873   $1,096,969     $869,969
Total Liabilities                     $1,605,414   $1,543,802   $1,210,319

Paid-in Capital                          $19,951      $19,951     $19,951
Retained Earnings                       $314,116     $254,834    $545,478
Earnings                              ($119,738)   ($119,738)     $51,256
Total Capital                           $214,329     $155,047    $616,685

Total Capital and Liabilities         $1,819,743   $1,698,849   $1,827,004

Other Inputs
Payment Days                                 90           90           90




                                                                                4
                                                                    COMPANY NAME.              DATE


   Chart: Past Performance

                              Past Performance

    $2,400,000

    $2,100,000

    $1,800,000

    $1,500,000                                                                 Sales

    $1,200,000                                                                 Gross

     $900,000
                                                                               Net

     $600,000

     $300,000

           $0

                    FY 2008            FY 2009            FY 2010




3.0 Products
   COMPANY NAME is a Carbide Blue Print Tooling Manufacturer and Re-sharpener. What we do is
   take a part drawing, material spec and machine type that the customer would like to use to
   build this part. Then we design and develop all the cutting tools to machine this part, we
   manufacturer them, coat them supply them with speeds and feeds so they can produce their
   parts. Then we re-sharpen the cutting tools for added life and value. These tools are used in the
   automotive, aerospace, medical and defense industries. The tools we manufacturer are very
   close tolerance, multi-step cutting tools such as; High Performance Drills, Step drills, end mills,
   reamers, trepan tooling, step tooling and recess type tools for the auto, medical and aerospace
   industries. Another added value we have is our in shop is our own coating line. We can add
   Titanium (Tin), Aluminum Titanium (ALTIN) and other hard coatings to enhance the surface of
   the tools to make them harder, more heat resistant, and slicker so they last longer in use and
   give our customers longer tool life along with faster service for this added operation.




                                                                                                    5
                                                                         COMPANY NAME.               DATE


4.0 Market Analysis Summary
   Overview U.S. machine tool industry (Provided by Standard & Poor's)
   The U.S. machine tool industry is in a period of relative stability, although industry size,
   employment, and revenues typically fluctuate in response to swings in the business cycle. The
   number of industry establishments stands at approximately 600, according to U.S. Census
   Bureau data. These producers are concentrated in several Midwestern and northeastern states:
   Ohio, Michigan, and Illinois have the greatest concentration of industry establishments. The
   composition of the industry has changed since the beginning of the 1990s because of
   consolidation and foreign investment. A spate of buyouts and ac questions occurred in the early
   to middle 1990s, and a number of privately-held companies became publicly owned. A wave of
   investment by the European automotive industry spurred similar investments by continental
   machine-tool producers, which established U.S. production facilities to supply their primary
   customer group. Japanese investment also picked up in the first half of the decade, driven by
   the strong yen. The newcomers joined a contingent of Japanese machine-tool manufacturers
   that had established U.S. production facilities in the 1980s in response to U.S. import
   restrictions that have since been lifted. A strong commitment to exporting and the sustained
   expansion of the U.S. economy are key elements in the machine tool industry's newfound
   stability. Changes in the automotive sector are also important. The automotive industry is far
   less cyclical than it was in the past. Auto makers are undertaking more frequent and less
   extensive design changes and are becoming globalized, tailoring their products to individual
   markets. This has led to ongoing investment programs rather than concentrated purchasing
   cycles. The increasing globalization of the automotive sector is encouraging a similar trend
   among machine tool suppliers. U.S. machine tool companies are increasing their worldwide
   presence, often through joint ventures, cooperative agreements, and strategic alliances. The
   countries that have attracted the largest industry investment to date are Mexico, Brazil, India,
   and China. 2009 domestic tool industry: the third quarter, 2009 domestic metal cutting tools
   industry were realized advocate business income 564.32 billion yuan, a year-on-year growth of
   1.81%; - Gross profit 28.77 billion yuan, a year-on-year growth of 22.83% -. Both negative
   growth, but declined to narrow.
   Currently in four trillion economic stimulus package and national rejuvenation of domestic
   policy, under the influence of the automotive industry and construction machinery industry in
   2009, towards recovery. Due to the relative downstream industry machine industry, in the car
   and the lagging of the downstream industry engineering machinery, etc, and is expected to
   continue under the two big industry we expected in 2010 will add a larger machine purchasing
   requisition. For shipping manufacture industry, because there is enough in order, so in 2010
   and 2011 can still maintain faster growth rate, the production task completion can pull machine
   sales.
4.1 Market Segmentation
   The company's target customers:
      Automobile manufacturers.         These     customers     require   customized   mac   hine   tools
       to better serve their clients.
      Fine blanking and stamping manufacturers. These customers have a strong need for
       specialized manufacturing services.
      Manufacturers of complete product lines. Value adding assembly is most required by this
       customer                                                                       segment




                                                                                                        6
                                                                  COMPANY NAME.                 DATE


Table: Market Analysis


Market
Analysis
                                  2010        2011        2012             2013         2014
Potential          Growth                                                                       CAGR
Customers
Tool                     3%   4,125,238   4,248,995   4,376,465    4,507,759        4,642,992   3.00%
Manufacturing
Re-sharpening         4%      3,875,235   4,030,244   4,191,454    4,359,112        4,533,476   4.00%
Other                 1%        987,125     996,996   1,006,966    1,017,036        1,027,206   1.00%
Total              3.22%      8,987,598   9,276,235   9,574,885    9,883,907       10,203,674   3.22%




   Chart: Market Analysis (Pie)

                    Market Analysis (Pie)




                                                                   Tool Manufacturing

                                                                   Re-sharpening

                                                                   Other




                                                                                                    7
                                                                COMPANY NAME.                 DATE


4.2 Target Market Segment Strategy
   Machine Tooling will focus our market offerings on three major customer groups:


   1. Automobile seating manufacturers.
   2. Fine blanking and stamping manufacturers.
   3. Manufactures of complete product lines.


   Our market research shows that these customer segments are the most demanding in terms of
   the engineering, technical service support, and automated design. Machine Tooling is
   particularly strong in these areas and will utilize our capacities to serve these clients. The
   company will seek customers who require production of components used in upper-end product
   lines. This will provide a further possibility for Machine Tooling to offer our value-added
   engineering services.
4.3 Industry Analysis
   The Machine Tools & Accessories industry makes tools used to manufacture other products.
   Bearings, waterjet cutting machines, and engine lathes are all made by these companies and
   sold to several end markets -- from the automotive industry to the energy industry. Three
   companies dominate the machine tools & accessories market: Timken Company, Stanley
   Works, and Kennametal.
   Since machine tools companies sell products to companies in other end markets, the success of
   machine tools companies depends upon the success of these end markets. Companies such as
   TKR and KMT have suffered due to declines in the U.S. Housing Market and automotive
   industry, while companies such as RBC Bearings and Kaydon have seen success creating niche
   products for the wind energy and U.S. Military industries, respectively. The automotive and
   housing declines have enticed companies to expand internationally, particularly to the booming
   Chinese and Indian economies (China is the number one consumer of machine tools, amassing
   23% of the total world consumption). Rising steel prices plague the industry wherever it goes,
   however, forcing many of them to install more efficient manufacturing operations and to pass
   on rising costs to consumers, reducing demand and putting heavy pressure on margins.


   In 2009, the value of imported products within this industry into the U.S. has been relatively
   high, at approximately 50% of U.S. production. Because of this reliance on imports, the report
   covers the foreign trade statistics including the top 25 countries the U.S. imports from and their
   respective import values. This industry exhibits a high amount of trade activity, because in
   2009, the value of exported products within this industry into the U.S. has also been relatively
   high, at approximately 40% of U.S. production. This reliance on exports is also covered in the
   report's foreign trade statistics.
4.3.1 Competition and Buying Patterns
   Machine Tooling believes that our customers choose our products based on the following
   criteria:
          Price
          Performance
          Customer service and support




                                                                                                   8
                                                                   COMPANY NAME.                  DATE


5.0 Strategy and Implementation Summary
   COMPANY NAME will succeed by manufacturing high quality, durable heavy equipment
   machinery with a significant number of product features and options which are extremely
   precise in control of movement. It will focus on a very narrow segment of the market and
   attempt to achieve the best reputation in that segment.
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
      We have our own coating center at COMPANY NAME which saves on delivery times
      Latest and most accurate equipment in the world
      Strong relationships with suppliers that offer credit arrangements, flexibility, and response
       to special product requirements.
      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.
      High customer loyalty among repeat and high-dollar purchase customers.
5.1.2 Weaknesses
      Access to additional operating capital.
      Cash flow continues to be unpredictable
      Challenges of the seasonality of the business.
5.1.3 Opportunities
      Web sight to catch the attention of the people that are looking for manufacturers.
      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.
      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's has impacted store sales.
      Expansion of competitors.
      Competition from national Manufactures with greater financing or product resources could
       enter the market.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.



                                                                                                         9
                                                               COMPANY NAME.                DATE


5.2 Competitive Edge
   Our climate controlled facility removes other variable from the production process. By
   maintaining temperature and humidity throughout the year we are able to maintain tolerances
   and quality that guarantee a superior product. Our team of skilled tool designers, with over 75
   years of collective experience, can take your finished part print and design customer tooling to
   fit your specific machining application. Tool prints can be generated or modified using our in
   house CAD System and distributed via our high speed internet connection for final approval.
5.3 Marketing Strategy
   The company's marketing strategy will be to continue to promote sales of our product lines,
   systems, presses, automation projects, and machining capacity. In machining, focus will
   continue to be on components used in semi-sophisticated equipment where a possibility exists
   to pursue the next level of integration by assembling components or prepare part kits for
   assisted assembly. Focusing on this product-component relationship will facilitate the
   company's ability to pursue the vertical integration of the business and pass on the value-added
   savings to our customers.
5.4 Sales Strategy
   The sales plan is to seek businesses that will advance the company's quest to vertically
   integrate and become a stronger force in the manufacturing industry. The company will
   continue to strive towards procuring sales of our product lines and machining capacity. The
   focus in machining is securing contracts to produce components used in upper-end product
   lines, yielding opportunities for "value added" engineering. To accomplish Machine Tooling's
   endeavors, the company will utilize internal and external sales tactics. By aggressively seeking
   new accounts and taking full advantage of the existing relationships the company has with
   current customers and broadening its customer base, the company will expand and be able to
   compete with the leading companies in the industry. Machine Tooling plans to use a direct sales
   force, relationship selling, and subcontractors to reach our markets. These channels are most
   appropriate because time to market, reduced capital requirements, and fast access to
   established distribution channels.
5.4.1 Sales Forecast
   The company will begin by utilizing its extensive contacts with several major construction
   companies to leverage contracts through direct sales methods and onsite demonstrations. A
   number of these companies have expressed an interest in purchasing the proposed products
   and services. The company's extensive advertising campaign will be used to create product
   awareness through the use of trade journals, direct mail advertising, and other means. The
   establishment of a post sales servicing and parts division will provide additional sales and
   opportunities for marketing new products.




                                                                                                10
                                                                                       COMPANY NAME.                DATE


Table: Sales Forecast


Sales Forecast
                                                                             FY 2011        FY 2012            FY 2013
Sales
Design and Develop                                                     $1,038,686        $1,284,074          $1,300,000
Manufacturing                                                          $1,138,484        $1,161,151          $1,228,269
Re-sharpen Tools                                                         $987,916        $1,121,251          $1,152,136
Total Sales                                                            $3,165,086        $3,566,476          $3,680,405

Direct Cost of Sales                                                        FY 2011         FY 2012            FY 2013
Row 1                                                                      $221,179        $225,000           $245,000
Row 2                                                                      $288,423        $300,000           $325,000
Row 3                                                                      $313,337        $325,000           $355,000
Subtotal Direct Cost of Sales                                              $822,939        $850,000           $925,000




   Chart: Sales Monthly

                                 Sales Monthly
    $330,000

    $300,000

    $270,000

    $240,000

    $210,000                                                                            Design and Develop
    $180,000
                                                                                        Manufacturing
    $150,000
                                                                                        Re-sharpen Tools
    $120,000

     $90,000

     $60,000

     $30,000

         $0
                                                                     Jul
               Oct




                                 Jan




                                                   Apr



                                                               Jun
                     Nov

                           Dec



                                       Feb

                                             Mar



                                                         May




                                                                           Aug

                                                                                 Sep




                                                                                                                          11
                                                               COMPANY NAME.              DATE


   Chart: Sales by Year

                              Sales by Year

    $4,000,000

    $3,600,000

    $3,200,000

    $2,800,000
                                                                 Design and Develop
    $2,400,000
                                                                 Manufacturing
    $2,000,000
                                                                 Re-sharpen Tools
    $1,600,000

    $1,200,000

     $800,000

     $400,000

           $0
                    FY 2011         FY 2012      FY 2013



5.5 Milestones
   The accompanying table shows specific milestones, with responsibilities assigned, dates, and
   budgets. The milestones represented in this plan are those which we have determined to be the
   most important.

Table: Milestones


Milestones

Milestone                      Start Date       End Date     Budget       Manager     Department
Purchase                       10/1/2010      10/29/2010   $250,000        INSERT           CEO
Equipment                                                                    NAME
Add employees                   1/3/2011        1/2/2012    $50,000        INSERT           CEO
                                                                             NAME
Marketing                      11/1/2010        1/7/2013   $125,000        INSERT           CEO
expansion                                                                    NAME
Totals                                                     $425,000




                                                                                              12
                                                                          COMPANY NAME.       DATE


   Chart: Milestones

                                               Milestones



    Purchase Equipment




         Add employees




    Marketing expansion



                          Q4 `10 Q1 `11   Q2     Q3    Q4   Q1 `12   Q2    Q3   Q4



6.0 Management Summary
   YOUR NAME, President, runs the business and handles the day to day operations. He has over
   36 years experience in the cutting tool industries and has been in this type of business all his
   life.
    NAME, Vice President, is in charge of sales and marketing and is an Engineer Graduate of
   University in Virginia. NAME worked for ACME Grinders, USA for about 10 years as a sales and
   application Engineer, teaching people how to run the types of machines we use to build our
   tools. NAME has been with COMPANY NAME for 11 years.
6.1 Personnel Plan
   The personnel table assumes steady growth in employees over the next year. We expect head
   count to reach 14 employees by end of year one. We are in the process of implementing a
   strong benefits policy (with fully-paid medical, dental, and life insurance, plus a profit sharing
   and 401K plan). Employees generally earn competitive salaries and receive generous equity
   packages.

Table: Personnel


Personnel Plan
                                                                 FY 2011         FY 2012    FY 2013
Salaries and wages                                              $154,704        $155,000   $165,000
Compensation of officers                                        $183,156        $185,000   $185,000
Legal & Professional                                             $27,869         $30,000    $30,000
Total People                                                           0               0          0

Total Payroll                                                   $365,729        $370,000   $380,000



                                                                                                  13
                                                                             COMPANY NAME.               DATE



7.0 Financial Plan
   Growth will be supported by a grant investment of $425,000 for the proposed new
   equipment and paying off debt. This will provide the bulk of the financing required to grow
   operations at the planned rate.
7.1 Important Assumptions
   Important assumptions for this plan are found in the following table. These assumptions largely
   determine the financial plan and require that we secure additional financing.
7.2 Break-even Analysis
   The break-even analysis is based on the average of the first-year figures for total sales and by
   operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs.
   These conservative assumptions make for a more accurate estimate of real risk.

Table: Break-even Analysis


Break-even Analysis

Monthly Revenue Break-even                                                                           $106,808

Assumptions:
Average Percent Variable Cost                                                                            26%
Estimated Monthly Fixed Cost                                                                          $79,038




   Chart: Break-even Analysis

                                       Break-even Analysis
    $100,000

     $80,000

     $60,000

     $40,000

     $20,000

          $0

    ($20,000)

    ($40,000)

    ($60,000)


                $0          $40,000       $80,000      $120,000      $160,000      $200,000
                     $20,000       $60,000      $100,000      $140,000      $180,000      $220,000




                                                                                                            14
                                                                 COMPANY NAME.                 DATE


7.3 Projected Profit and Loss
   As the profit and loss table shows, Alliance expects to continue its steady growth in profitability
   over the next three years of operations.

Table: Profit and Loss


Pro Forma Profit and Loss
                                                FY 2011           FY 2012           FY 2013
Sales                                        $3,165,086        $3,566,476        $3,680,405
Direct Cost of Sales                           $822,939          $850,000          $925,000
Other Costs of Sales                                 $0                $0                $0
Total Cost of Sales                            $822,939          $850,000          $925,000

Gross Margin                                 $2,342,147        $2,716,476        $2,755,405
Gross Margin %                                  74.00%            76.17%            74.87%




                                                                                                   15
                                                                        COMPANY NAME.                  DATE




Expenses
Payroll                                             $365,729            $370,000           $380,000
Marketing/Promotion                                 $126,820             $75,000            $75,000
Depreciation                                         $15,000             $15,000            $15,000
Rent                                                 $67,812             $67,812            $67,812
Utilities                                            $47,633             $50,000            $50,000
Employee benefit programs                             $4,800              $5,500             $6,500
Taxes and licenses                                   $28,212             $30,000            $30,000
Other                                               $292,444            $300,000           $300,000

Total Operating Expenses                            $948,450            $913,312           $924,312

Profit Before Interest and Taxes                   $1,393,697          $1,803,164         $1,831,093
EBITDA                                             $1,408,697          $1,818,164         $1,846,093
 Interest Expense                                     $43,284             $43,284            $43,284
 Taxes Incurred                                      $135,041            $175,988           $178,781

Net Profit                                         $1,215,372          $1,583,892         $1,609,028
Net Profit/Sales                                      38.40%              44.41%             43.72%




   Chart: Profit Monthly

                                       Profit Monthly

    $120,000


    $100,000


     $80,000


     $60,000


     $40,000


     $20,000


         $0
               Oct   Nov   Dec   Jan   Feb   Mar     Apr   May   Jun    Jul   Aug   Sep




                                                                                                         16
                                                                      COMPANY NAME.       DATE


Chart: Profit Yearly

                                       Profit Yearly



 $1,600,000

 $1,400,000

 $1,200,000

 $1,000,000

  $800,000

  $600,000

  $400,000

  $200,000

        $0
                     FY 2011                FY 2012                 FY 2013




Chart: Gross Margin Monthly

                                 Gross Margin Monthly


 $210,000

 $180,000


 $150,000

 $120,000

  $90,000

  $60,000

  $30,000

       $0
              Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun     Jul     Aug   Sep




                                                                                            17
                                                             COMPANY NAME.               DATE


   Chart: Gross Margin Yearly

                                Gross Margin Yearly


    $3,000,000

    $2,700,000

    $2,400,000

    $2,100,000

    $1,800,000
    $1,500,000

    $1,200,000

     $900,000

     $600,000

     $300,000

           $0
                    FY 2011             FY 2012            FY 2013



7.4 Projected Cash Flow
   The following cash flows are based on changes on operating expenses and a investment grant
   that would allow our company to buy equipment that will increase production significantly and
   payoff debt.
Table: Cash Flow


Pro Forma Cash Flow
                                                      FY 2011          FY 2012          FY 2013
Cash Received

Cash from Operations
Cash Sales                                         $3,165,086        $3,566,476     $3,680,405
Subtotal Cash from Operations                      $3,165,086        $3,566,476     $3,680,405

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                              $425,000                $0             $0
Subtotal Cash Received                             $3,590,086        $3,566,476     $3,680,405




                                                                                             18
                                                                                         COMPANY NAME.           DATE




Expenditures                                                                 FY 2011            FY 2012        FY 2013

Expenditures from Operations
Cash Spending                                                             $365,729             $370,000        $380,000
Bill Payments                                                           $1,518,448           $1,630,081      $1,669,900
Subtotal Spent on Operations                                            $1,884,177           $2,000,081      $2,049,900

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                                                $0                   $0              $0
Principal Repayment of Current Borrowing                                        $0                   $0              $0
Other Liabilities Principal Repayment                                           $0                   $0              $0
Long-term Liabilities Principal Repayment                                       $0                   $0              $0
Purchase Other Current Assets                                                   $0                   $0              $0
Purchase Long-term Assets                                                 $250,000                   $0              $0
Dividends                                                                       $0                   $0              $0
Subtotal Cash Spent                                                     $2,134,177           $2,000,081      $2,049,900

Net Cash Flow                                                           $1,455,909           $1,566,395      $1,630,505
Cash Balance                                                            $1,555,909           $3,122,305      $4,752,809




   Chart: Cash

                                         Cash
    $1,600,000

    $1,400,000

    $1,200,000

    $1,000,000
                                                                                             Net Cash Flow
     $800,000
                                                                                             Cash Balance
     $600,000

     $400,000

     $200,000

           $0
                                                                       Jul
                 Oct




                                   Jan




                                                     Apr




                                                                 Jun
                       Nov

                             Dec




                                         Feb

                                               Mar




                                                           May




                                                                             Aug

                                                                                   Sep




7.5 Projected Balance Sheet
   The Projected annual financial balances are shown in the following table. The balances for the
   first 12 months are presented in the appendix.


                                                                                                                    19
                                             COMPANY NAME.         DATE




Table: Balance Sheet


Pro Forma Balance Sheet
                                   FY 2011      FY 2012      FY 2013
Assets

Current Assets
Cash                            $1,555,909   $3,122,305   $4,752,809
Other Current Assets              $327,621     $327,621     $327,621
Total Current Assets            $1,883,530   $3,449,926   $5,080,430

Long-term Assets
Long-term Assets                $4,275,231   $4,275,231   $4,275,231
Accumulated Depreciation        $2,640,848   $2,655,848   $2,670,848
Total Long-term Assets          $1,634,383   $1,619,383   $1,604,383
Total Assets                    $3,517,913   $5,069,309   $6,684,813

Liabilities and Capital           FY 2011      FY 2012       FY 2013

Current Liabilities
Accounts Payable                 $163,805     $131,308     $137,784
Current Borrowing                $212,123     $212,123     $212,123
Other Current Liabilities         $14,959      $14,959      $14,959
Subtotal Current Liabilities     $390,887     $358,390     $364,866

Long-term Liabilities             $869,969     $869,969     $869,969
Total Liabilities               $1,260,856   $1,228,359   $1,234,835

Paid-in Capital                   $444,951     $444,951     $444,951
Retained Earnings                 $596,734   $1,812,106   $3,395,998
Earnings                        $1,215,372   $1,583,892   $1,609,028
Total Capital                   $2,257,057   $3,840,949   $5,449,978
Total Liabilities and Capital   $3,517,913   $5,069,309   $6,684,813

Net Worth                       $2,257,057   $3,840,949   $5,449,978




                                                                       20
                                                               COMPANY NAME.                DATE




7.6 Business Ratios
   Standard business ratios are included in the following table. The ratios show an aggressive plan
   for growth in order to reach maximum production within three years. Return on investment
   increases each year as we bring the new facility to maximum capacity and production. Return
   on sales and assets remain strong and cost of goods decreases based upon efficiency
   projections.

Table: Ratios


Ratio Analysis
                                           FY 2011         FY 2012        FY 2013         Industry
                                                                                            Profile
Sales Growth                               44.76%          12.68%           3.19%           3.76%

Percent of Total Assets
Other Current Assets                        9.31%          6.46%           4.90%          45.54%
Total Current Assets                       53.54%         68.06%          76.00%          55.32%
Long-term Assets                           46.46%         31.94%          24.00%          44.68%
Total Assets                              100.00%        100.00%         100.00%         100.00%

Current Liabilities                        11.11%           7.07%          5.46%           20.71%
Long-term Liabilities                      24.73%          17.16%         13.01%           74.98%
Total Liabilities                          35.84%          24.23%         18.47%           95.69%
Net Worth                                  64.16%          75.77%         81.53%            4.31%




                                                                                                21
                                                       COMPANY NAME.        DATE




Percent of Sales
Sales                                100.00%      100.00%      100.00%    100.00%
Gross Margin                          74.00%       76.17%       74.87%     75.39%
Selling, General &                    35.60%       31.76%       31.15%     30.08%
Administrative Expenses
Advertising Expenses                   4.01%        2.10%        2.04%      2.46%
Profit Before Interest and Taxes      44.03%       50.56%       49.75%      6.21%

Main Ratios
Current                                  4.82         9.63        13.92       1.46
Quick                                    4.82         9.63        13.92       1.28
Total Debt to Total Assets            35.84%       24.23%       18.47%     95.69%
Pre-tax Return on Net Worth           59.83%       45.82%       32.80%    476.96%
Pre-tax Return on Assets              38.39%       34.72%       26.74%     20.53%

Additional Ratios                    FY 2011      FY 2012      FY 2013
Net Profit Margin                    38.40%       44.41%       43.72%          n.a
Return on Equity                     53.85%       41.24%       29.52%          n.a

Activity Ratios
Accounts Payable Turnover                9.58        12.17        12.17        n.a
Payment Days                               29           34           29        n.a
Total Asset Turnover                     0.90         0.70         0.55        n.a

Debt Ratios
Debt to Net Worth                        0.56         0.32         0.23        n.a
Current Liab. to Liab.                   0.31         0.29         0.30        n.a

Liquidity Ratios
Net Working Capital                $1,492,643   $3,091,535   $4,715,564        n.a
Interest Coverage                       32.20        41.66        42.30        n.a

Additional Ratios
Assets to Sales                         1.11          1.42         1.82        n.a
Current Debt/Total Assets               11%            7%           5%         n.a
Acid Test                               4.82          9.63        13.92        n.a
Sales/Net Worth                         1.40          0.93         0.68        n.a
Dividend Payout                         0.00          0.00         0.00        n.a




                                                                               22
                                                                      Appendix

Table: Sales Forecast


Sales Forecast
                               Oct       Nov        Dec        Jan         Feb        Mar         Apr       May        Jun          Jul       Aug        Sep
Sales
Design and Develop         $65,256    $68,519    $71,945    $75,542     $79,319    $83,285    $87,449    $91,821    $96,412   $101,233    $106,295   $111,610
Manufacturing              $71,526    $75,102    $78,857    $82,800     $86,940    $91,287    $95,851   $100,644   $105,676   $110,960    $116,508   $122,333
Re-sharpen Tools           $73,658    $75,131    $76,634    $78,167     $79,730    $81,325    $82,952    $84,611    $86,303    $88,029     $89,790    $91,586
Total Sales               $210,440   $218,752   $227,436   $236,509    $245,989   $255,897   $266,252   $277,076   $288,391   $300,222    $312,593   $325,529

Direct Cost of Sales           Oct        Nov        Dec        Jan         Feb        Mar        Apr       May         Jun         Jul        Aug        Sep
Row 1                      $13,110    $13,897    $14,731    $15,615     $16,552    $17,545    $18,598    $19,714    $20,897    $22,151     $23,480    $24,889
Row 2                      $16,123    $17,252    $18,460    $19,752     $21,135    $22,614    $24,197    $25,891    $27,703    $29,642     $31,717    $33,937
Row 3                      $14,653    $16,118    $17,730    $19,503     $21,453    $23,598    $25,958    $28,554    $31,409    $34,550     $38,005    $41,806
Subtotal Direct Cost of    $43,886    $47,267    $50,921    $54,870     $59,140    $63,757    $68,753    $74,159    $80,009    $86,343     $93,202   $100,632
Sales




                                                                                                                                                      Page 1
                                                          Appendix

Table: Personnel


Personnel Plan
                           Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun        Jul       Aug       Sep
Salaries and wages     $12,892   $12,892   $12,892   $12,892   $12,892   $12,892   $12,892   $12,892   $12,892   $12,892    $12,892   $12,892
Compensation of        $15,263   $15,263   $15,263   $15,263   $15,263   $15,263   $15,263   $15,263   $15,263   $15,263    $15,263   $15,263
officers
Legal & Professional    $2,400    $2,400    $1,469    $2,400    $3,510    $3,184    $2,857    $1,143    $1,306    $2,400     $2,400    $2,400
Total People                 0         0         0         0         0         0         0         0         0         0          0         0

Total Payroll          $30,555   $30,555   $29,624   $30,555   $31,665   $31,339   $31,012   $29,298   $29,461   $30,555    $30,555   $30,555




                                                                                                                                      Page 2
                                                                           Appendix

Table: Profit and Loss


Pro Forma Profit and
Loss
                                    Oct        Nov        Dec        Jan        Feb        Mar        Apr       May         Jun         Jul        Aug        Sep
Sales                          $210,440   $218,752   $227,436   $236,509   $245,989   $255,897   $266,252   $277,076   $288,391   $300,222    $312,593   $325,529
Direct Cost of Sales            $43,886    $47,267    $50,921    $54,870    $59,140    $63,757    $68,753    $74,159    $80,009    $86,343     $93,202   $100,632
Other Costs of Sales                 $0         $0         $0         $0         $0         $0         $0         $0         $0         $0          $0         $0
Total Cost of Sales             $43,886    $47,267    $50,921    $54,870    $59,140    $63,757    $68,753    $74,159    $80,009    $86,343     $93,202   $100,632

Gross Margin                   $166,554   $171,485   $176,515   $181,639   $186,849   $192,140   $197,499   $202,917   $208,382   $213,879    $219,391   $224,897
Gross Margin %                  79.15%     78.39%     77.61%     76.80%     75.96%     75.08%     74.18%     73.24%     72.26%     71.24%      70.18%     69.09%


Expenses
Payroll                         $30,555    $30,555    $29,624    $30,555    $31,665    $31,339    $31,012    $29,298    $29,461    $30,555     $30,555    $30,555
Marketing/Promotion             $10,000    $10,100    $10,201    $10,303    $10,406    $10,510    $10,615    $10,721    $10,828    $10,936     $11,045    $11,155
Depreciation                         $0         $0    $15,000         $0         $0         $0         $0         $0         $0         $0          $0         $0
Rent                             $5,651     $5,651     $5,651     $5,651     $5,651     $5,651     $5,651     $5,651     $5,651     $5,651      $5,651     $5,651
Utilities                        $3,521     $4,163     $4,653     $4,439     $4,622     $3,980     $3,704     $3,214     $3,276     $3,980      $3,918     $4,163
Employee benefit         15%       $400       $400       $400       $400       $400       $400       $400       $400       $400       $400        $400       $400
programs
Taxes and licenses       15%     $2,351     $2,351     $2,351     $2,351     $2,351     $2,351     $2,351     $2,351     $2,351     $2,351      $2,351     $2,351
Other                           $23,724    $22,599    $21,735    $25,255    $22,347    $26,173    $24,951    $22,500    $22,806    $28,163     $24,643    $27,548

Total Operating                 $76,202    $75,819    $89,615    $78,954    $77,442    $80,404    $78,684    $74,135    $74,773    $82,036     $78,563    $81,823
Expenses

Profit Before Interest          $90,352    $95,666    $86,900   $102,685   $109,407   $111,736   $118,815   $128,782   $133,609   $131,843    $140,828   $143,074
and Taxes
EBITDA                          $90,352    $95,666   $101,900   $102,685   $109,407   $111,736   $118,815   $128,782   $133,609   $131,843    $140,828   $143,074
 Interest Expense                $3,607     $3,607     $3,607     $3,607     $3,607     $3,607     $3,607     $3,607     $3,607     $3,607      $3,607     $3,607
 Taxes Incurred                  $8,675     $9,206     $8,329     $9,908    $10,580    $10,813    $11,521    $12,518    $13,000    $12,824     $13,722    $13,947

Net Profit                      $78,071    $82,853    $74,964    $89,170    $95,220    $97,316   $103,687   $112,658   $117,002   $115,412    $123,499   $125,520
Net Profit/Sales                37.10%     37.88%     32.96%     37.70%     38.71%     38.03%     38.94%     40.66%     40.57%     38.44%      39.51%     38.56%




                                                                                                                                                          Page 3
                                                                             Appendix

Table: Cash Flow


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

Cash from
Operations
Cash Sales                 $210,440   $218,752   $227,436   $236,509   $245,989   $255,897   $266,252   $277,076   $288,391   $300,222   $312,593   $325,529
Subtotal Cash              $210,440   $218,752   $227,436   $236,509   $245,989   $255,897   $266,252   $277,076   $288,391   $300,222   $312,593   $325,529
from
Operations

Additional
Cash Received
Sales Tax,         0.00%        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
VAT, HST/GST
Received
New Current                     $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Borrowing
New Other                       $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Liabilities
(interest-free)
New Long-                       $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
term Liabilities
Sales of Other                  $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Current Assets
Sales of Long-                  $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
term Assets
New                        $425,000        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Investment
Received
Subtotal Cash              $635,440   $218,752   $227,436   $236,509   $245,989   $255,897   $266,252   $277,076   $288,391   $300,222   $312,593   $325,529
Received




                                                                                                                                                     Page 4
                                                                   Appendix


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

Expenditures
from
Operations
Cash              $30,555    $30,555    $29,624    $30,555    $31,665    $31,339    $31,012     $29,298      $29,461      $30,555      $30,555      $30,555
Spending
Bill Payments    $116,662   $101,932   $105,427   $108,146   $116,861   $119,375   $127,386    $131,672     $135,347     $142,339     $154,397     $158,903
Subtotal Spent   $147,217   $132,487   $135,051   $138,701   $148,526   $150,714   $158,398    $160,970     $164,808     $172,894     $184,952     $189,458
on Operations

Additional
Cash Spent
Sales Tax,            $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
VAT, HST/GST
Paid Out
Principal             $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
Repayment of
Current
Borrowing
Other                 $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
Liabilities
Principal
Repayment
Long-term             $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
Liabilities
Principal
Repayment
Purchase              $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
Other Current
Assets
Purchase         $250,000        $0         $0         $0         $0         $0         $0           $0           $0           $0           $0           $0
Long-term
Assets
Dividends              $0         $0         $0         $0         $0         $0         $0          $0           $0           $0           $0           $0
Subtotal Cash    $397,217   $132,487   $135,051   $138,701   $148,526   $150,714   $158,398    $160,970     $164,808     $172,894     $184,952     $189,458
Spent

Net Cash Flow    $238,223    $86,265    $92,385    $97,808    $97,463   $105,183   $107,854     $116,106     $123,583     $127,328     $127,641     $136,071
Cash Balance     $338,223   $424,488   $516,873   $614,681   $712,143   $817,326   $925,181   $1,041,287   $1,164,870   $1,292,197   $1,419,838   $1,555,909




                                                                                                                                                    Page 5
                                                                                    Appendix

Table: Balance Sheet


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

Current
Assets
Cash              $100,000    $338,223     $424,488     $516,873     $614,681     $712,143     $817,326     $925,181    $1,041,287   $1,164,870   $1,292,197   $1,419,838   $1,555,909
Other Current     $327,621    $327,621     $327,621     $327,621     $327,621     $327,621     $327,621     $327,621      $327,621     $327,621     $327,621     $327,621     $327,621
Assets
Total Current     $427,621    $665,844     $752,109     $844,494     $942,302    $1,039,764   $1,144,947   $1,252,802   $1,368,908   $1,492,491   $1,619,818   $1,747,459   $1,883,530
Assets

Long-term
Assets
Long-term       $4,025,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231   $4,275,231
Assets
Accumulated     $2,625,848   $2,625,848   $2,625,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848   $2,640,848
Depreciation
Total Long-     $1,399,383   $1,649,383   $1,649,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383   $1,634,383
term Assets
Total Assets    $1,827,004   $2,315,227   $2,401,492   $2,478,877   $2,576,685   $2,674,147   $2,779,330   $2,887,185   $3,003,291   $3,126,874   $3,254,201   $3,381,842   $3,517,913




                                                                                                                                                                             Page 6
                                                                                      Appendix


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

Current
Liabilities
Accounts           $113,268      $98,421     $101,832     $104,253     $112,891     $115,134     $123,000     $127,168     $130,616     $137,197     $149,113     $153,254     $163,805
Payable
Current            $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123     $212,123
Borrowing
Other Current       $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959      $14,959
Liabilities
Subtotal           $340,350     $325,503     $328,914     $331,335     $339,973     $342,216     $350,082     $354,250     $357,698     $364,279     $376,195     $380,336     $390,887
Current
Liabilities

Long-term          $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969     $869,969
Liabilities
Total             $1,210,319   $1,195,472   $1,198,883   $1,201,304   $1,209,942   $1,212,185   $1,220,051   $1,224,219   $1,227,667   $1,234,248   $1,246,164   $1,250,305   $1,260,856
Liabilities

Paid-in Capital     $19,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951     $444,951
Retained           $545,478     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734     $596,734
Earnings
Earnings             $51,256      $78,071     $160,924     $235,887     $325,058     $420,278     $517,594     $621,281     $733,938     $850,940     $966,353   $1,089,852   $1,215,372
Total Capital      $616,685    $1,119,756   $1,202,609   $1,277,572   $1,366,743   $1,461,963   $1,559,279   $1,662,966   $1,775,623   $1,892,625   $2,008,038   $2,131,537   $2,257,057
Total             $1,827,004   $2,315,227   $2,401,492   $2,478,877   $2,576,685   $2,674,147   $2,779,330   $2,887,185   $3,003,291   $3,126,874   $3,254,201   $3,381,842   $3,517,913
Liabilities and
Capital

Net Worth          $616,685    $1,119,756   $1,202,609   $1,277,572   $1,366,743   $1,461,963   $1,559,279   $1,662,966   $1,775,623   $1,892,625   $2,008,038   $2,131,537   $2,257,057




                                                                                                                                                                               Page 7
                                                               Appendix

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