2010
Business Plan
COMPANY NAME
ADDRESS
CITY, STATE ZIP CODE
Tel.
Fax:
Email:
OWNER’S NAME
COMPANY NAME
DATE
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
Table of Contents
1.0 Executive Summary ........................................................................................................ 1
Chart: Highlights ........................................................................................................... 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
Chart: Past Performance ................................................................................................ 5
3.0 Products ........................................................................................................................ 5
4.0 Market Analysis Summary................................................................................................ 6
4.1 Market Segmentation ................................................................................................... 6
Table: Market Analysis ................................................................................................... 6
Chart: Market Analysis (Pie) ........................................................................................... 7
4.2 Target Market Segment Strategy ................................................................................... 7
4.3 Industry Analysis......................................................................................................... 7
4.3.1 Competition and Buying Patterns ............................................................................ 7
5.0 Strategy and Implementation Summary ............................................................................ 7
5.1 SWOT Analysis ............................................................................................................ 8
5.1.1 Strengths ............................................................................................................. 8
5.1.2 Weaknesses ......................................................................................................... 8
5.1.3 Opportunities ........................................................................................................ 9
5.1.4 Threats ................................................................................................................ 9
5.2 Competitive Edge ........................................................................................................ 9
5.3 Marketing Strategy ...................................................................................................... 9
5.4 Sales Strategy ............................................................................................................ 9
5.4.1 Sales Forecast .................................................................................................... 10
Table: Sales Forecast ................................................................................................ 10
Chart: Sales Monthly ................................................................................................ 10
Chart: Sales by Year ................................................................................................. 11
5.5 Milestones ................................................................................................................ 11
Table: Milestones ........................................................................................................ 11
Chart: Milestones ........................................................................................................ 12
6.0 Management Summary ................................................................................................. 12
6.1 Personnel Plan .......................................................................................................... 12
Table: Personnel.......................................................................................................... 12
7.0 Financial Plan ............................................................................................................... 13
7.1 Important Assumptions .............................................................................................. 13
7.2 Break-even Analysis .................................................................................................. 13
Table: Break-even Analysis ........................................................................................... 13
Chart: Break-even Analysis........................................................................................... 13
7.3 Projected Profit and Loss ............................................................................................ 13
Table: Profit and Loss .................................................................................................. 14
Chart: Profit Monthly.................................................................................................... 15
Chart: Profit Yearly ...................................................................................................... 15
Chart: Gross Margin Monthly ......................................................................................... 16
Chart: Gross Margin Yearly ........................................................................................... 16
7.4 Projected Cash Flow .................................................................................................. 17
Table: Cash Flow ......................................................................................................... 17
Chart: Cash ................................................................................................................ 19
7.5 Projected Balance Sheet ............................................................................................. 19
Table: Balance Sheet ................................................................................................... 19
7.6 Business Ratios ......................................................................................................... 20
Page 1
Table of Contents
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 .................................................................................................................. 5
Table: Cash Flow .................................................................................................................. 5
Table: Balance Sheet ............................................................................................................ 7
Table: Balance Sheet ............................................................................................................ 7
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COMPANY NAME
1.0 Executive Summary
COMPANY NAME is a convenient store and gas station that has served the community for the last
40 years. As a staple in the community for gas and cooked food, COMPANY NAME is looking to
expand to a full service discount store. This convenience store is looking for funds that will allow
this already successful business to offer laundry services, discount groceries and an upgraded store
front.
Industry:
The gas station industry is fragmented industries with no real dominate company. The industry
has revenue of over 115 billion of annually. In recent years, almost 127,000 gasoline service
stations operated in the United States. These establishments took very different forms than
they had before, with self-service islands and ancillary retail outlets—convenience stores,
known as C-stores—creating major changes in the distribution of market share.
Company Goals:
Increase revenue by 30% by 2013.
Increase product mix by 25%
Add laundry service.
Increase foot traffic by 12% annually.
Our company has been a minority own business for 40 years and has the backing of the local
community. Our goal is to increase the product we offer in hopes of additional revenue from our
already existing client and customer base.
Chart: Highlights
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COMPANY NAME
1.1 Objectives
COMPANY NAME has established three firm objectives it wishes to achieve in the next three
years:
To capture an increasing share of the commuter traffic passing through.
To offer our customers superior products, at an affordable price.
To provide customer service that is second to none.
1.2 Mission
The mission of COMPANY NAME is to offer commuters competitive gas prices and great food.
The company will make a healthy profit for its owners and provide a rewarding work
environment for its employees.
1.3 Keys to Success
The keys to success for COMPANY NAME are:
Good quality products at competitive prices.
Excellent customer service that will promote customer loyalty.
A location that will assure that commuters will stop.
2.0 Company Summary
COMPANY NAME is a convenience store and gas station in [INSERT TOWN]. OWNER’S NAME the
current owner has seven years of experience in managing gas stations. OWNER’S NAME will
focus on the commuters that pass through the town daily. They will offer its customers the best
gas prices and quality food products.
2.1 Company Ownership
OWNER’S NAME, the owner and operator of the business has had over seven years of
management and retail experience. The store was purchased by OWNER’S NAME from his
father whom owned the store for over 40 years. The ownership of this store understands the
importance of building relationships with the local community.
2.2 Company History
The COMPANY NAME store was formed as a sole proprietary company in 1970 in the state of
[INSERT STATE] in the [INSERT COUNTY]. COMPANY NAME has been a minority owned and
managed business for the last 40 years and has become a staple in the local community.
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COMPANY NAME
Table: Past Performance
Past Performance
FY 2008 FY 2009 FY 2010
Sales $750,000 $785,000 $765,000
Gross Margin $335,000 $335,000 $335,000
Gross Margin % 44.67% 42.68% 43.79%
Operating Expenses $427,000 $431,000 $436,000
Collection Period (days) 0 0 0
Inventory Turnover 0.95 0.95 0.95
Balance Sheet
FY 2008 FY 2009 FY 2010
Current Assets
Cash $10,000 $10,000 $10,000
Accounts Receivable $0 $0 $0
Inventory $7,100 $7,100 $7,100
Other Current Assets $0 $0 $0
Total Current Assets $17,100 $17,100 $17,100
Long-term Assets
Long-term Assets $150,000 $150,000 $150,000
Accumulated Depreciation $135,000 $135,000 $135,000
Total Long-term Assets $15,000 $15,000 $15,000
Total Assets $32,100 $32,100 $32,100
Current Liabilities
Accounts Payable $0 $0 $0
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COMPANY NAME
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 $75,000 $75,000 $75,000
Retained Earnings ($42,900) ($42,900) ($42,900)
Earnings $0 $0 $0
Total Capital $32,100 $32,100 $32,100
Total Capital and Liabilities $32,100 $32,100 $32,100
Other Inputs
Payment Days 0 0 0
Sales on Credit $0 $0 $0
Receivables Turnover 0.00 0.00 0.00
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COMPANY NAME
Chart: Past Performance
3.0 Products
There are over 4000 different skews that are offered on a daily basis at the Discount Corner
store. The following is a general list of products.
Cooked food
Snacks
Drinks
Fuel
Tobacco
Alcohol
Ice cream
Pet food
With the grant money they will be able to offer more products and services such as, groceries,
and a laundry mat.
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COMPANY NAME
4.0 Market Analysis Summary
[INSERT TOWN] is a small town in [INSERT STATE] it has about 365 people, 125 households,
and 90 families residing in the town. The population density was 996.4 people per square mile.
There were 139 housing units at an average density of 379.5/sq mi (145.0/km²). The racial
makeup of the town was 35.07% White, 63.56% African American and 1.37% Native American.
Hispanic or Latino of any race were 5.48% of the population. There were 125 households out of
which 30.4% had children under the age of 18 living with them, 48.0% were married couples
living together, 18.4% had a female householder with no husband present, and 28.0% were
non-families. 24.0% of all households were made up of individuals and 13.6% had someone
living alone who was 65 years of age or older. The average household size was 2.92 and the
average family size was 3.47. In the town the population was spread out with 28.8% under the
age of 18, 7.9% from 18 to 24, 25.8% from 25 to 44, 23.6% from 45 to 64, and 14.0% who
were 65 years of age or older. The median age was 38 years. For every 100 females there were
85.3 males. For every 100 females age 18 and over, there were 89.8 males. The median
income for a household in the town was $35,227.
The median income for a family was $36,932. Males had a median income of $28,125 versus
$24,688 for females. The per capita income for the town was $14,774. About 11.7% of families
and 11.8% of the population were below the poverty line, including 12.8% of those under age
18 and 23.3% of those ages 65 or over
4.1 Market Segmentation
According to U.S. government statistics there are over 17,000 outlets selling fuel and discount
food. Briefly stated, these outlets fall into the following categories:
commuters
Local community
Fast food consumers
tobacco users
alcohol users
discount food buyers
Table: Market Analysis
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Petrol users 3% 14,375 14,806 15,250 15,708 16,179 3.00%
local community 1% 369 373 377 381 385 1.07%
Discount shopper 4% 3,125 3,250 3,380 3,515 3,656 4.00%
fast food consumer 4% 4,895 5,079 5,269 5,467 5,672 3.75%
Total 3.27% 22,764 23,508 24,276 25,071 25,892 3.27%
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COMPANY NAME
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
COMPANY NAME will focus on becoming a routine stop for the commuter traffic, not just for
those people who need gas, but for those who are looking for a healthy, tasty snack on their
drive, or need to pick up some small grocery item on their way home. We will aim to be more
than a gas station to its customers; it will be a friendly place to stop for tired commuters.
4.3 Industry Analysis
The US gas station industry includes about 22,000 establishments (single-location companies
and units of multi-location companies) with combined annual revenue of about $115 billion.
Although no major companies dominate, large oil companies own some stations. The industry is
fragmented: the top 50 companies hold 30 percent of industry sales. The industry includes
some truck stops but excludes establishments that are combination gas station/convenience
stores. The volume of consumer and commercial driving drives demand. The profitability of
individual companies depends on the ability to secure high-traffic locations, generate high-
volume sales, and buy gas at the lowest possible cost. Large companies have advantages in
purchasing and finance. Small companies can compete effectively by having superior locations.
The industry is capital-intensive. Average annual revenue per worker is about $700,000. As
more retailers added gas to their merchandising mix, the competitive landscape for gas stations
expanded to include convenience stores, mass merchandiser, warehouse clubs, and grocery
stores.
4.3.1 Competition and Buying Patterns
Fuel for motor vehicles accounts for more than 80 percent of the industry sales. Major products
sold include unleaded regular gas (about 60 percent of fuel sales) and diesel fuel (30 percent).
Gas stations also sell unleaded mid-grade and unleaded premium gas. Truck stops tend to sell
more diesel fuel, since most commercial vehicles run on diesel. Companies may offer repair
services or car washes. Some truck stops offer food, phones, showers, and lounges. The buying
pattern is very competitive and it is a price war for gas consumption.
5.0 Strategy and Implementation Summary
COMPANY NAME uses a strategy of total market service.
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COMPANY NAME
Assumptions:
1. Every person is a potential customer and all our potential markets will experience growth.
2. Marketing to one segment of the population will lead to an expansion in overall market
growth
5.1 SWOT Analysis
Strengths of the business include great reputation with the community, gas station, large lot,
huge potential, offers a variety of goods, essentially the cornerstone of the community.
Weaknesses are attributed to an old infrastructure that composes the business. The weakness
of the poor infrastructure includes a driveway deprived of paving and an old building since the
inception of the business. Moreover, weakness can be attributed to out of service bathrooms,
old gas pumps, business needs modernization (more advertising), not enough physical space,
not enough inventory to compliment the needs of local consumers. Essentially, the remodeling
of the business internally and externally will help alleviate many of the weaknesses in the
business. The opportunity of the business lies in the fact that it has great potential in reviving
the economic situation and moral of many of the residents in the Northwestern Edgecombe
County through the formation of more jobs for members of the community, shortening travel
time and lessen travel expenses for prospective shoppers in Northwestern Edgecombe County,
and the beautification of the community by alluring more passersby to stop and spend money in
the community. Furthermore, the business’ opportunity is more appealing due to its positioning
in the center of the community. No threats to the business currently exist.
5.1.1 Strengths
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.
Good referral relationships with complementary vendors, local realtors, and some designers.
In-store complementary products through "The Window Seat" and "Antique Bureau" add
interest, stability and revenue.
High customer loyalty among repeat and high-dollar purchase customers.
5.1.2 Weaknesses
Access to additional operating capital.
Owners are still climbing the "retail experience curve."
Location is not in a heavily traveled, traditional retail area.
Challenges of the seasonality of the business.
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COMPANY NAME
5.1.3 Opportunities
Growing market with a significant percentage of our target market still not knowing we
exist.
Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach.
Promising activity from high levels of new home construction.
Changes in design trends can initiate home updating, and therefore, generate sales.
Increasing sales opportunities beyond our "100-mile" target area including several smaller
communities that have produced a faithful following of customers.
Internet potential for selling products to other markets.
5.1.4 Threats
The downturn in the economy has impacted store sales--stock market predictors correlate
with store sales.
Expansion of national discount stores into the local market: including Target, Wal-Mart and
Home Depot into our decorator fabric space.
Competition from a national store; or a store with greater financing or product resources
could enter the market.
Continued price pressure due to competition or the weakening market reducing contribution
margins.
Dramatic changes in design, including fabric colors and styles, creates obsolete or less
profitable inventory.
5.2 Competitive Edge
Our competitive edge come in the service and products we offer. Our company will be able to
offer a full range of products like, cooked food, snacks, drinks, and gas fueling stations. With
the expansion we will be able to offer groceries, sit in area, and laundry mat.
5.3 Marketing Strategy
The following sections illuminate the pricing, promotion and distribution strategies for COMPANY
NAME.
5.4 Sales Strategy
COMPANY NAME will keep its gas prices competitive with other stations in a fifty mile radius of
the station in order to attract t commuters. Customers that purchase more than $10 worth of
gas will be given 15% coupon on purchases in the store during the first month of operation, to
encourage purchases and to introduce them to the concept of buying quality organic foods at
the gas station. They will also add to their already growing customer base by adding a much
needed laundry mat and grocery section to the store.
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COMPANY NAME
5.4.1 Sales Forecast
The following table and chart show the forecasted sales.
Table: Sales Forecast
Sales Forecast
FY 2011 FY 2012 FY 2013
Sales
products $612,000 $635,000 $655,000
petrol sales $153,000 $165,000 $175,000
Total Sales $765,000 $800,000 $830,000
Direct Cost of Sales FY 2011 FY 2012 FY 2013
products $72,000 $82,000 $92,000
fuel $540,000 $550,000 $575,000
Subtotal Direct Cost of Sales $612,000 $632,000 $667,000
Chart: Sales Monthly
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COMPANY NAME
Chart: Sales by Year
5.5 Milestones
The accompanying milestone chart highlights our plan with specific dates. This schedule reflects
our strong commitment to organization and detail.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
construct laundry 9/1/2010 12/31/2010 $250,000 OWNER’S CEO
mat NAME
OWNER’S
expand fuel station 1/1/2011 3/1/2011 $100,000 CEO
NAME
OWNER’S
laundry mat 12/13/2010 12/31/2010 $130,000 CEO
NAME
equipment
OWNER’S
expand store space 8/16/2010 11/30/2010 $185,000 CEO
NAME
Totals $665,000
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COMPANY NAME
Chart: Milestones
6.0 Management Summary
The role of management will be to oversee the future employees and to handle the financial
aspect of the business, which includes purchasing supplies and paying necessary bills and
employees.
6.1 Personnel Plan
The cornerstone of the personnel plan is to maximize productivity and minimize the labor
burden on the company's operating expenses. As we grow, we expect to see steady increases
in our personnel to match the increases in sales.
Table: Personnel
Personnel Plan
FY 2011 FY 2012 FY 2013
Payroll $73,500 $75,000 $75,000
Accountant/legal $12,000 $12,000 $12,000
Total People 3 3 3
Total Payroll $85,500 $87,000 $87,000
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COMPANY NAME
7.0 Financial Plan
Growth will be moderate, cash balance always positive.
Marketing will remain at or below 15% of sales.
The company will invest residual profits into company expansion and personnel.
7.1 Important Assumptions
Payroll burden is calculated at 12.65% made up of 7.65% social security, 2% unemployment,
and 3% worker's compensation. Payables are assumed to reach levels equal to one month's
operating expenses. Accounts receivable are assumed to be 45 days, although sales terms are
net 30 and some sales require some payment in advance.
7.2 Break-even Analysis
Our break-even analysis is summarized by the following chart and table.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $61,719
Assumptions:
Average Percent Variable Cost 80%
Estimated Monthly Fixed Cost $12,344
Chart: Break-even Analysis
7.3 Projected Profit and Loss
The following chart and table will indicate projected profit and loss.
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COMPANY NAME
Table: Profit and Loss
Pro Forma Profit and Loss
FY 2011 FY 2012 FY 2013
Sales $765,000 $800,000 $830,000
Direct Cost of Sales $612,000 $632,000 $667,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $612,000 $632,000 $667,000
Gross Margin $153,000 $168,000 $163,000
Gross Margin % 20.00% 21.00% 19.64%
Expenses
Payroll $85,500 $87,000 $87,000
Marketing/Promotion $7,200 $8,000 $8,000
Depreciation $0 $0 $0
Rent $30,000 $30,000 $30,000
Utilities $5,100 $6,100 $7,100
Insurance $7,500 $7,500 $7,500
Payroll Taxes $12,825 $13,050 $13,050
Other $0 $0 $0
Total Operating Expenses $148,125 $151,650 $152,650
Profit Before Interest and Taxes $4,875 $16,350 $10,350
EBITDA $4,875 $16,350 $10,350
Interest Expense $0 $0 $0
Taxes Incurred $731 $2,453 $1,553
Net Profit $4,144 $13,898 $8,798
Net Profit/Sales 0.54% 1.74% 1.06%
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COMPANY NAME
Chart: Profit Monthly
Chart: Profit Yearly
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COMPANY NAME
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
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COMPANY NAME
7.4 Projected Cash Flow
Our projected cash flow is outlined in the following chart and table.
Table: Cash Flow
Pro Forma Cash Flow
FY 2011 FY 2012 FY 2013
Cash Received
Cash from Operations
Cash Sales $61,200 $64,000 $66,400
Cash from Receivables $647,105 $733,406 $761,377
Subtotal Cash from Operations $708,305 $797,406 $827,777
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 $625,000 $0 $0
Subtotal Cash Received $1,333,305 $797,406 $827,777
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COMPANY NAME
Expenditures FY 2011 FY 2012 FY 2013
Expenditures from Operations
Cash Spending $85,500 $87,000 $87,000
Bill Payments $690,353 $700,710 $737,619
Subtotal Spent on Operations $775,853 $787,710 $824,619
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 $500,000 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,275,853 $787,710 $824,619
Net Cash Flow $57,452 $9,696 $3,158
Cash Balance $67,452 $77,149 $80,307
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COMPANY NAME
Chart: Cash
7.5 Projected Balance Sheet
The table below outlines the projected balance sheet.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2011 FY 2012 FY 2013
Assets
Current Assets
Cash $67,452 $77,149 $80,307
Accounts Receivable $56,695 $59,289 $61,512
Inventory $76,500 $81,582 $87,992
Other Current Assets $500,000 $500,000 $500,000
Total Current Assets $700,647 $718,019 $729,811
Long-term Assets
Long-term Assets $150,000 $150,000 $150,000
Accumulated Depreciation $135,000 $135,000 $135,000
Total Long-term Assets $15,000 $15,000 $15,000
Total Assets $715,647 $733,019 $744,811
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COMPANY NAME
Liabilities and Capital FY 2011 FY 2012 FY 2013
Current Liabilities
Accounts Payable $54,404 $57,878 $60,872
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $54,404 $57,878 $60,872
Long-term Liabilities $0 $0 $0
Total Liabilities $54,404 $57,878 $60,872
Paid-in Capital $700,000 $700,000 $700,000
Retained Earnings ($42,900) ($38,756) ($24,859)
Earnings $4,144 $13,898 $8,798
Total Capital $661,244 $675,141 $683,939
Total Liabilities and Capital $715,647 $733,019 $744,811
Net Worth $661,244 $675,141 $683,939
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial.
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COMPANY NAME
Table: Ratios
Ratio Analysis
FY 2011 FY 2012 FY 2013 Industry Profile
Sales Growth 0.00% 4.58% 3.75% 0.90%
Percent of Total Assets
Accounts Receivable 7.92% 8.09% 8.26% 3.08%
Inventory 10.69% 11.13% 11.81% 34.49%
Other Current Assets 69.87% 68.21% 67.13% 36.97%
Total Current Assets 97.90% 97.95% 97.99% 74.54%
Long-term Assets 2.10% 2.05% 2.01% 25.46%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.60% 7.90% 8.17% 19.85%
Long-term Liabilities 0.00% 0.00% 0.00% 60.99%
Total Liabilities 7.60% 7.90% 8.17% 80.84%
Net Worth 92.40% 92.10% 91.83% 19.16%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 20.00% 21.00% 19.64% 27.14%
Selling, General & Administrative Expenses 19.46% 19.26% 18.58% 10.03%
Advertising Expenses 0.94% 1.00% 0.96% 0.53%
Profit Before Interest and Taxes 0.64% 2.04% 1.25% 2.92%
Main Ratios
Current 12.88 12.41 11.99 2.75
Quick 11.47 11.00 10.54 1.01
Total Debt to Total Assets 7.60% 7.90% 8.17% 80.84%
Pre-tax Return on Net Worth 0.74% 2.42% 1.51% 75.81%
Pre-tax Return on Assets 0.68% 2.23% 1.39% 14.53%
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COMPANY NAME
Additional Ratios FY 2011 FY 2012 FY 2013
Net Profit Margin 0.54% 1.74% 1.06% n.a
Return on Equity 0.63% 2.06% 1.29% n.a
Activity Ratios
Accounts Receivable Turnover 12.41 12.41 12.41 n.a
Collection Days 29 29 29 n.a
Inventory Turnover 8.00 8.00 7.87 n.a
Accounts Payable Turnover 13.69 12.17 12.17 n.a
Payment Days 27 29 29 n.a
Total Asset Turnover 1.07 1.09 1.11 n.a
Debt Ratios
Debt to Net Worth 0.08 0.09 0.09 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $646,244 $660,141 $668,939 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.94 0.92 0.90 n.a
Current Debt/Total Assets 8% 8% 8% n.a
Acid Test 10.43 9.97 9.53 n.a
Sales/Net Worth 1.16 1.18 1.21 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 22
Appendix
Table: Sales Forecast
Sales Forecast
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sales
products $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000
petrol sales $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750
Total Sales $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750
Direct Cost of Sales Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
products $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
fuel $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Subtotal Direct Cost of $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000
Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Payroll $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125 $6,125
Accountant/legal $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125
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Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sales $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750
Direct Cost of Sales $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000 $51,000
Gross Margin $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750 $12,750
Gross Margin % 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Expenses
Payroll $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125
Marketing/Promotion $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Utilities $425 $425 $425 $425 $425 $425 $425 $425 $425 $425 $425 $425
Insurance $625 $625 $625 $625 $625 $625 $625 $625 $625 $625 $625 $625
Payroll Taxes 15% $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344 $12,344
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Appendix
Expenses
Profit Before Interest $406 $406 $406 $406 $406 $406 $406 $406 $406 $406 $406 $406
and Taxes
EBITDA $406 $406 $406 $406 $406 $406 $406 $406 $406 $406 $406 $406
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61
Net Profit $345 $345 $345 $345 $345 $345 $345 $345 $345 $345 $345 $345
Net Profit/Sales 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% 0.54%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Cash Received
Cash from Operations
Cash Sales $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100 $5,100
Cash from Receivables $1,955 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650 $58,650
Subtotal Cash from $7,055 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750
Operations
Additional Cash
Received
Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment $625,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash Received $632,055 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750 $63,750
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Appendix
Expenditures Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Expenditures from
Operations
Cash Spending $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125 $7,125
Bill Payments $4,189 $123,366 $56,280 $56,280 $56,280 $56,280 $56,280 $56,280 $56,280 $56,280 $56,280 $56,280
Subtotal Spent on $11,314 $130,491 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405
Operations
Additional Cash Spent
Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $511,314 $130,491 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405 $63,405
Net Cash Flow $120,741 ($66,741) $345 $345 $345 $345 $345 $345 $345 $345 $345 $345
Cash Balance $130,741 $63,999 $64,345 $64,690 $65,035 $65,381 $65,726 $66,071 $66,417 $66,762 $67,107 $67,452
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Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Assets Starting Balances
Current Assets
Cash $10,000 $130,741 $63,999 $64,345 $64,690 $65,035 $65,381 $65,726 $66,071 $66,417 $66,762 $67,107 $67,452
Accounts $0 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695 $56,695
Receivable
Inventory $7,100 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500 $76,500
Other $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
Current
Assets
Total $17,100 $763,936 $697,194 $697,540 $697,885 $698,230 $698,576 $698,921 $699,266 $699,612 $699,957 $700,302 $700,647
Current
Assets
Long-term Assets
Long-term $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Assets
Accumulated $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000 $135,000
Depreciation
Total Long- $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
term Assets
Total Assets $32,100 $778,936 $712,194 $712,540 $712,885 $713,230 $713,576 $713,921 $714,266 $714,612 $714,957 $715,302 $715,647
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Appendix
Liabilities and Capital Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Current Liabilities
Accounts $0 $121,490 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404
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 $121,490 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404
Current
Liabilities
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $0 $121,490 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404 $54,404
Liabilities
Paid-in $75,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 $700,000
Capital
Retained ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900) ($42,900)
Earnings
Earnings $0 $345 $691 $1,036 $1,381 $1,727 $2,072 $2,417 $2,763 $3,108 $3,453 $3,798 $4,144
Total Capital $32,100 $657,445 $657,791 $658,136 $658,481 $658,827 $659,172 $659,517 $659,863 $660,208 $660,553 $660,898 $661,244
Total $32,100 $778,936 $712,194 $712,540 $712,885 $713,230 $713,576 $713,921 $714,266 $714,612 $714,957 $715,302 $715,647
Liabilities
and Capital
Net Worth $32,100 $657,445 $657,791 $658,136 $658,481 $658,827 $659,172 $659,517 $659,863 $660,208 $660,553 $660,898 $661,244
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