[Company Name]
[Name] -Owner
[Address]
[City, State ZIP]
XXX-XXX-XXXX T XXX-XXX-XXXX C
[Email Address]
[Email Address]
BUSINESS PLAN
© Copyright 2012 Docstoc Inc. 1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Company Name] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to [Company
Name].
Upon request, this document is to be immediately returned to [Company Name].
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
© Copyright 2012 Docstoc Inc. 2
Table of Contents
1.0 Executive Summary .................................................................................................................... 1
Chart: Highlights .......................................................................................................................... 2
1.1 Objectives.................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 2
1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
2.1 Company Ownership ............................................................................................................... 3
2.2 Start-up Summary ................................................................................................................... 3
Table: Start-up.............................................................................................................................. 3
Chart: Start-up ............................................................................................................................. 4
3.0 Products ........................................................................................................................................... 4
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 5
Chart: Market Analysis (Pie) .................................................................................................... 5
4.2 Target Market Segment Strategy ...................................................................................... 6
4.3 Industry Analysis ...................................................................................................................... 6
4.3.1 Competition and Buying Patterns .............................................................................. 6
5.0 Strategy and Implementation Summary ............................................................................ 6
5.1 SWOT Analysis .......................................................................................................................... 7
5.1.1 Strengths ............................................................................................................................. 7
5.1.2 Weaknesses ........................................................................................................................ 7
5.1.3 Opportunities ..................................................................................................................... 7
5.1.4 Threats ................................................................................................................................. 7
5.2 Competitive Edge ..................................................................................................................... 8
5.3 Marketing Strategy .................................................................................................................. 8
5.4 Sales Strategy ........................................................................................................................... 8
5.4.1 Sales Forecast.................................................................................................................... 8
Table: Sales Forecast ............................................................................................................. 8
Chart: Sales by Year ............................................................................................................... 9
5.5 Milestones.................................................................................................................................... 9
Table: Milestones ......................................................................................................................... 9
Chart: Milestones ....................................................................................................................... 10
6.0 Management Summary ............................................................................................................ 10
6.1 Personnel Plan ......................................................................................................................... 10
Table: Personnel ......................................................................................................................... 10
7.0 Financial Plan ............................................................................................................................... 11
7.1 Start-up Funding .................................................................................................................... 11
Table: Start-up Funding .......................................................................................................... 11
7.2 Important Assumptions ....................................................................................................... 12
7.3 Break-even Analysis .............................................................................................................. 12
Table: Break-even Analysis.................................................................................................... 12
Chart: Break-even Analysis ................................................................................................... 12
7.4 Projected Profit and Loss ..................................................................................................... 13
Page 1
Table of Contents
Table: Profit and Loss ............................................................................................................... 13
Chart: Profit Yearly .................................................................................................................... 14
Chart: Gross Margin Yearly .................................................................................................... 14
7.5 Projected Cash Flow .............................................................................................................. 15
Table: Cash Flow ........................................................................................................................ 15
Chart: Cash .................................................................................................................................. 16
7.6 Projected Balance Sheet ...................................................................................................... 17
Table: Balance Sheet ................................................................................................................ 17
7.7 Business Ratios ....................................................................................................................... 17
Table: Ratios ................................................................................................................................ 18
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5
Page 2
[Company Name]
1.0 Executive Summary
[Company Name] - A Glass shop and artist consignment store is a new business in Grand
Rapids, MI. [Company Name] will be run by [Name] a veteran of 20 years in the glass
shop industry. Additionally, has leveraged his regionally specific industry insights, into a niche
store that has little or no direct competition. The reason for this is that [Name] has designed
unique glass products that use cutting edge technology to produce a product that has near
100% purifying properties, compared to the typical ~80% of other glass producers. With a
selection of glass and goods not replicated in the city, superior customer service, and
reasonable prices, [Company Name] will capitalize on this incredible opportunity. The
owner has secured a location that offers very good foot traffic and easy accessibility. [Name]
will efficiently lay out the store to increase sales and give the customers the utmost in
attention. This attention to detail, combined with his passion and knowledge of the industry, will
help the store reach a profitable level quickly. The projected growth rate for [Company Name]
is quite steady, with profitability estimated by year one and revenue of $240,000 by year three.
The company will accomplish its expansion and development of new blown glass technology by
utilizing a grant of $160,000. The following plan will delineate the aspects of [Company Name]
that will allow it to become the premier glass shop in the Grand Rapids area. It has already
aligned its self with the number one blown glass producer in the United States and will be the
only shop in Michigan to carry this line of superior blown glass. [Company Name]s will continue
to set itself apart by increasing the number of consigned artist to beyond thirty.
BUSINESS PLAN Page 1
[Company Name]
Chart: Highlights
1.1 Objectives
The objectives for the first three years of operation include:
To create a retail store whose primary goal is to exceed customer's expectations.
To increase the number of clients served by at least 20% per year through superior
performance and selection.
To obtain annual revenues exceeding $240,000.
1.2 Mission
[Company Name]'s mission is to provide the customer with the highest quality blown glass
and unique clothing and gear at reasonable prices. We exist to attract and maintain customers.
When we adhere to this maxim, everything else will fall into place. Our services will exceed the
expectations of our customers.
The company also continues to serve its community through raffles, toys for tots drives and
similar discount fairs. Also, by allowing up and coming artist to expose their talents to the
Grand Rapids public on a consignment basis, [Company Name] can give back directly to the
community on a consistent basis.
BUSINESS PLAN Page 2
[Company Name]
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 of our new blown glass standards.
Providing new glass equipment and accessories
Retain the services of reputable glass manufacturers.
Build brand image and brand equity through marketing.
2.0 Company Summary
[Company Name]s creates and sells a wide range high quality blown glass equipment and
accessories. It is located in Grand Rapids, MI. It will also serve as a consignment shop for
artistic clothing, wears, music and artwork. [Company Name]s will offer through consignment
clothing etc., for reasonable prices, allowing a wider range of people to enjoy the shopping for
blown glass items. [Company Name]s will sell these items on consignment, meaning it will sell
artists' items and pay for them when sold. The business will make a profit in year one, and will
grow steadily each consecutive year. The owner also has introduced a new technology in blow
glass instruments. The purifying properties of these glass smokers will remove up to 97% of
the impurities in the smoke.
2.1 Company Ownership
[Company Name] is a sole proprietorship owned and operated by [Name] [Name].
2.2 Start-up Summary
The following table and chart illustrates projected initial start-up costs for the firm.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $0
Stationery etc. $1,000
Insurance $600
Rent $18,000
Computer $5,500
Other $20,000
Total Start-up Expenses $45,100
Start-up Assets
Cash Required $6,000
Start-up Inventory $12,000
Other Current Assets $15,000
Long-term Assets $0
Total Assets $33,000
Total Requirements $78,100
BUSINESS PLAN Page 3
[Company Name]
Chart: Start-up
3.0 Products
[Company Name] designs and then has manufactured blown glass smoking instruments and
accessories. The accessories take the form of everything from glass jars, incense holders
to jewelry. All of the products are designed from or made to; compliment the blown glass
instrument industry. The revolutionary product, a design from the owner, refines the
original tobacco product into a purer form, by removing the carcinogens and pesticides found in
it. This will be the "cleanest pipe on the planet." Its percolator adds ambient air to the smoke
similar to a coffee maker. Once testing and final design are complete, the aim is to reach the
97% purity mark.
BUSINESS PLAN Page 4
[Company Name]
4.0 Market Analysis Summary
Our target market is a person who wants to have a very fine smoking experience with the latest
in technology, combined with a sense of smoke related art, clothing and fine glass working. This
person can be in the corporate towers, small or medium business, or in a home office. The
common bond is the appreciation of quality, and the lack of selection constraints.
4.1 Market Segmentation
Medicinal & Recreational smokers This is the major segment for [Company Name]. These
are members of the community between the ages of 18 and 50 for the most part.
Bargain hunters This group will buy things because it is a unique item at a reasonable price.
While some of the items will appeal to them, the unique nature and hand made quality will
really bring this group to the shop for the variety of consignment items.
Table: Market Analysis
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Recreational 5% 75,000 78,750 82,688 86,822 91,163 5.00%
Smokers
Medicinal Smokers 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Bargain Hunters 20% 100,000 120,000 144,000 172,800 207,360 20.00%
Total 14.06% 185,000 209,750 238,788 272,932 313,164 14.06%
Chart: Market Analysis (Pie)
BUSINESS PLAN Page 5
[Company Name]
4.2 Target Market Segment Strategy
[Company Name] intends to target people that have a need for "smoking" glass instruments,
accessories and clothing. The addition of the artist consignment items helps to bring people into
the shop with minimal cost to the owner. Tobacco connoisseurs have began to utilize the glass
industry to enhance their smoking experience. Hence, they resort to glass shops to purchase
instruments that are more sophisticated. Buy carrying all the different aspects/items that go
along with the lifestyle [Company Name] plans to use the nature of impulse buying to increase
sales from both the consignment shoppers and the die-hard smokers.
4.3 Industry Analysis
Glass smoking instruments sales have undergone tremendous growth and distribution
throughout the country. Presently we will concentrate on word of mouth and discount
sales marketing. This will maximize our profit. The Internet is probably the best communication
medium for those in the "smoke culture" all over the world, and we believe this is the best way
to retail our products. The [Company Name] group members we have gained on the World
Wide Web are now nearly 600 in just the first 6 months of being on Facebook, for example. In
addition, having "the best pipe" on the planet that, no other Michigan retailer will be able to
carry, will be a huge advantage for drawing clients.
4.3.1 Competition and Buying Patterns
Currently there are few true direct competitors in Grand Rapids; due to the fact, [Company
Name] has a one of a kind product in the area. There are two Grand Rapids competitors that
have very similar product offerings although [Company Name] was rated the top glass shop in
the region for the last 6 months, its entire business life.
5.0 Strategy and Implementation Summary
[Company Name] will succeed by designing high quality, purifying smoking equipment with a
significant number of accessories with features and options related to the culture. It will focus
on the majority segment of the market and attempt to achieve the best reputation in that
segment.
BUSINESS PLAN Page 6
[Company Name]
5.1 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing [Company Name].
5.1.1 Strengths
1. Knowledgeable and friendly staff We have gone to great lengths at [Company Name] to
find people with a passion for teaching and sharing their smoking experiences. Our staff is
both knowledgeable and eager to please.
2. State-of-the art equipment Part of the [Company Name] experience includes access to
state-of-the-art glass equipment. Our customers enjoy from the beautiful floor
model versions, to the small machines, and high-quality percolators.
3. Up-scale ambiance When you walk into [Company Name], you'll feel the culture and
quality. On top of the high tech finely crafted glass, there are a variety of artistic items from
original designers.
4. Clear vision of the market need [Company Name] knows what it takes to build an
upscale Glass shop. We know the customers, we know the technology, and we know how to
build the service that will bring the two together.
5.1.2 Weaknesses
Access to additional operating capital
Cash flow continues to be at the introductory phase, the shop has been opened for 6
months
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
Changes in design trends can initiate 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 affected store sales--stock market predictors correlate
with store sales. It has not been good since the recession began
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
BUSINESS PLAN Page 7
[Company Name]
5.2 Competitive Edge
[Company Name]'s competitive edge is its level of quality, product features and options; it has
a product that is the purest on the market. In addition, it is the only Michigan distributor of this
kind of glass product.
5.3 Marketing Strategy
[Company Name] marketing strategy will include the use of targeted print media and
internet advertising. It also plans to begin direct selling to shops around the United States who
provide specialty glass instruments via the internet. We will capitalize on existing relationships
with manufactures who have stated their willingness to remain onboard. We have positioned
ourselves as a differentiated provider of the highest quality glass percolators. The primary goal
of all marketing efforts will be to communicate this to existing and potential customers.
5.4 Sales Strategy
As the table shows, [Company Name] plans to deliver sales of approximately $100,000 in the
current year, $185,000 in the second year, and over $250 in the third year following this plan.
5.4.1 Sales Forecast
The following chart and table show our present sales forecast. We project sales to grow
approximately 96 percent (or double) in 2011, increase again by another ~40% percent in
2012.
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Glass Wares $95,000 $185,250 $254,719
Non-Glass Wares $3,000 $6,750 $15,188
Consignment Items $2,000 $4,500 $10,125
Total Sales $100,000 $196,500 $280,031
Direct Cost of Sales 2010 2011 2012
Glass Wares $23,180 $40,565 $56,791
Non-Glass Wares $732 $1,464 $1,757
Consignment Items $0 $0 $0
Subtotal Direct Cost of Sales $23,912 $42,029 $58,548
BUSINESS PLAN Page 8
[Company Name]
Chart: Sales by Year
5.5 Milestones
The accompanying table shows specific milestones, with 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
Receive Grant Funding 11/1/2010 11/1/2010 $160,000
Renovate/Remodel 11/1/2010 12/31/2010 ($20,000)
Hire Employees 11/1/2010 11/8/2010 $0
Purchase Equipment 11/8/2010 12/6/2010 ($8,000)
Purchase Inventory 11/8/2010 11/22/2010 ($12,000)
Design New Technology 7/1/2010 10/1/2010 ($15,000)
Totals $105,000
BUSINESS PLAN Page 9
[Company Name]
Chart: Milestones
6.0 Management Summary
[Company Name] is still a small and growing operation therefore; [Name] [Name], the owner,
solely manages it.
6.1 Personnel Plan
As the personnel plan shows, [Company Name] expects to make significant investments
in three employees all of who have the potential to go full time when the internet operation is
developed.
Table: Personnel
Personnel Plan
2010 2011 2012
F/T Clerks $5,760 $36,000 $37,080
P/T Clerks $1,440 $9,000 $9,270
Total People 3 3 3
Total Payroll $7,200 $45,000 $46,350
BUSINESS PLAN Page 10
[Company Name]
7.0 Financial Plan
The following subtopics highlight the financial plan for [Company Name].
7.1 Start-up Funding
[Company Name] start-up costs are detailed below, in the Start-up Table. The following table
shows how these start-up costs will be funded by a grant of $160,000.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $45,100
Start-up Assets to Fund $33,000
Total Funding Required $78,100
Assets
Non-cash Assets from Start-up $27,000
Cash Requirements from Start-up $6,000
Additional Cash Raised $81,900
Cash Balance on Starting Date $87,900
Total Assets $114,900
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $0
Investor $160,000
Additional Investment Requirement $0
Total Planned Investment $160,000
Loss at Start-up (Start-up Expenses) ($45,100)
Total Capital $114,900
Total Capital and Liabilities $114,900
Total Funding $160,000
BUSINESS PLAN Page 11
[Company Name]
7.2 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.
7.3 Break-even Analysis
The Break-even Analysis chart and table show that if the costs stay at the current, or relatively
stable, level [Company Name] will be able to make increased profits for all three-plan years.
The break-even point is $5,165 per month.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $5,165
Assumptions:
Average Percent Variable Cost 24%
Estimated Monthly Fixed Cost $3,930
Chart: Break-even Analysis
BUSINESS PLAN Page 12
[Company Name]
7.4 Projected Profit and Loss
As the profit and loss table shows, [Company Name] expects to continue its steady growth
in profitability over the next three years of operations.
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $100,000 $196,500 $280,031
Direct Cost of Sales $23,912 $42,029 $58,548
Other Costs of Sales $0 $0 $0
Total Cost of Sales $23,912 $42,029 $58,548
Gross Margin $76,088 $154,471 $221,483
Gross Margin % 76.09% 78.61% 79.09%
Expenses
Payroll $7,200 $45,000 $46,350
Marketing/Promotion $3,500 $3,500 $3,500
Depreciation $0 $0 $0
Rent $18,000 $18,000 $18,000
Utilities $6,000 $6,000 $6,000
Insurance $600 $600 $600
Payroll Taxes $1,080 $6,750 $6,953
Other $10,780 $10,780 $10,780
Total Operating Expenses $47,160 $90,630 $92,183
Profit Before Interest and Taxes $28,928 $63,841 $129,301
EBITDA $28,928 $63,841 $129,301
Interest Expense $0 $0 $0
Taxes Incurred $8,678 $19,152 $38,790
Net Profit $20,250 $44,689 $90,511
Net Profit/Sales 20.25% 22.74% 32.32%
BUSINESS PLAN Page 13
[Company Name]
Chart: Profit Yearly
Chart: Gross Margin Yearly
BUSINESS PLAN Page 14
[Company Name]
7.5 Projected Cash Flow
The financial outlook is positive as the company rolls out and meets its milestones. [Company
Name] expects to be cash flow positive for all three years of the plan.
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $100,000 $196,500 $280,031
Subtotal Cash from Operations $100,000 $196,500 $280,031
Additional Cash Received
Sales Tax, VAT, HST/GST Received $6,000 $11,790 $16,802
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 $0 $0 $0
Subtotal Cash Received $106,000 $208,290 $296,833
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $7,200 $45,000 $46,350
Bill Payments $57,798 $111,146 $142,011
Subtotal Spent on Operations $64,998 $156,146 $188,361
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $6,000 $11,790 $16,802
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 $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $70,998 $167,936 $205,163
Net Cash Flow $35,002 $40,354 $91,670
Cash Balance $122,902 $163,256 $254,926
BUSINESS PLAN Page 15
[Company Name]
Chart: Cash
BUSINESS PLAN Page 16
[Company Name]
7.6 Projected Balance Sheet
[Company Name]'s projected company balance sheet follows.
Table: Balance Sheet
Pro Forma Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $122,902 $163,256 $254,926
Inventory $1,804 $11,128 $12,286
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $139,706 $189,384 $282,212
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $139,706 $189,384 $282,212
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $4,556 $9,545 $11,863
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,556 $9,545 $11,863
Long-term Liabilities $0 $0 $0
Total Liabilities $4,556 $9,545 $11,863
Paid-in Capital $160,000 $160,000 $160,000
Retained Earnings ($45,100) ($24,850) $19,838
Earnings $20,250 $44,689 $90,511
Total Capital $135,150 $179,838 $270,349
Total Liabilities and Capital $139,706 $189,384 $282,212
Net Worth $135,150 $179,838 $270,349
7.7 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification: Cigar Cigarette & Tobacco Dealers-Wholesale (SIC: 519402),
are shown for comparison.
BUSINESS PLAN Page 17
[Company Name]
Table: Ratios
Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth n/a. 96.50% 42.51% -2.33%
Percent of Total Assets
Inventory 1.29% 5.88% 4.35% 19.90%
Other Current Assets 10.74% 7.92% 5.32% 42.11%
Total Current Assets 100.00% 100.00% 100.00% 83.22%
Long-term Assets 0.00% 0.00% 0.00% 16.78%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 3.26% 5.04% 4.20% 42.57%
Long-term Liabilities 0.00% 0.00% 0.00% 47.50%
Total Liabilities 3.26% 5.04% 4.20% 90.06%
Net Worth 96.74% 94.96% 95.80% 9.94%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.09% 78.61% 79.09% 26.00%
Selling, General & Administrative 55.84% 55.87% 46.77% 9.57%
Expenses
Advertising Expenses 3.50% 1.78% 1.25% 0.47%
Profit Before Interest and Taxes 28.93% 32.49% 46.17% 2.88%
Main Ratios
Current 30.66 19.84 23.79 1.57
Quick 30.27 18.67 22.75 1.10
Total Debt to Total Assets 3.26% 5.04% 4.20% 90.06%
Pre-tax Return on Net Worth 21.40% 35.50% 47.83% 154.49%
Pre-tax Return on Assets 20.71% 33.71% 45.82% 15.35%
Additional Ratios 2010 2011 2012
Net Profit Margin 20.25% 22.74% 32.32% n/a
Return on Equity 14.98% 24.85% 33.48% n/a
Activity Ratios
Inventory Turnover 6.64 6.50 5.00 n/a
Accounts Payable Turnover 13.69 12.17 12.17 n/a
Payment Days 27 22 27 n/a
Total Asset Turnover 0.72 1.04 0.99 n/a
Debt Ratios
Debt to Net Worth 0.03 0.05 0.04 n/a
Current Liabilities to Liabilities 1.00 1.00 1.00 n/a
Liquidity Ratios
Net Working Capital $135,150 $179,838 $270,349 n/a
Interest Coverage 0.00 0.00 0.00 n/a
Additional Ratios
Assets to Sales 1.40 0.96 1.01 n/a
Current Debt/Total Assets 3% 5% 4% n/a
Acid Test 30.27 18.67 22.75 n/a
Sales/Net Worth 0.74 1.09 1.04 n/a
Dividend Payout 0.00 0.00 0.00 n/a
BUSINESS PLAN Page 18
Appendix
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Glass Wares $95,000 $185,250 $254,719
Non-Glass Wares $3,000 $6,750 $15,188
Consignment Items $2,000 $4,500 $10,125
Total Sales $100,000 $196,500 $280,031
Direct Cost of Sales 2010 2011 2012
Glass Wares $23,180 $40,565 $56,791
Non-Glass Wares $732 $1,464 $1,757
Consignment Items $0 $0 $0
Subtotal Direct Cost of Sales $23,912 $42,029 $58,548
BUSINESS PLAN Page 1
Appendix
Table: Personnel
Personnel Plan
2010 2011 2012
F/T Clerks $5,760 $36,000 $37,080
P/T Clerks $1,440 $9,000 $9,270
Total People 3 3 3
Total Payroll $7,200 $45,000 $46,350
BUSINESS PLAN Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $100,000 $196,500 $280,031
Direct Cost of Sales $23,912 $42,029 $58,548
Other Costs of Sales $0 $0 $0
Total Cost of Sales $23,912 $42,029 $58,548
Gross Margin $76,088 $154,471 $221,483
Gross Margin % 76.09% 78.61% 79.09%
Expenses
Payroll $7,200 $45,000 $46,350
Marketing/Promotion $3,500 $3,500 $3,500
Depreciation $0 $0 $0
Rent $18,000 $18,000 $18,000
Utilities $6,000 $6,000 $6,000
Insurance $600 $600 $600
Payroll Taxes $1,080 $6,750 $6,953
Other $10,780 $10,780 $10,780
Total Operating Expenses $47,160 $90,630 $92,183
Profit Before Interest and Taxes $28,928 $63,841 $129,301
EBITDA $28,928 $63,841 $129,301
Interest Expense $0 $0 $0
Taxes Incurred $8,678 $19,152 $38,790
Net Profit $20,250 $44,689 $90,511
Net Profit/Sales 20.25% 22.74% 32.32%
BUSINESS PLAN Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $100,000 $196,500 $280,031
Subtotal Cash from Operations $100,000 $196,500 $280,031
Additional Cash Received
Sales Tax, VAT, HST/GST Received $6,000 $11,790 $16,802
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 $0 $0 $0
Subtotal Cash Received $106,000 $208,290 $296,833
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $7,200 $45,000 $46,350
Bill Payments $57,798 $111,146 $142,011
Subtotal Spent on Operations $64,998 $156,146 $188,361
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $6,000 $11,790 $16,802
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 $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $70,998 $167,936 $205,163
Net Cash Flow $35,002 $40,354 $91,670
Cash Balance $122,902 $163,256 $254,926
BUSINESS PLAN Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $122,902 $163,256 $254,926
Inventory $1,804 $11,128 $12,286
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $139,706 $189,384 $282,212
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $139,706 $189,384 $282,212
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $4,556 $9,545 $11,863
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,556 $9,545 $11,863
Long-term Liabilities $0 $0 $0
Total Liabilities $4,556 $9,545 $11,863
Paid-in Capital $160,000 $160,000 $160,000
Retained Earnings ($45,100) ($24,850) $19,838
Earnings $20,250 $44,689 $90,511
Total Capital $135,150 $179,838 $270,349
Total Liabilities and Capital $139,706 $189,384 $282,212
Net Worth $135,150 $179,838 $270,349
BUSINESS PLAN Page 5