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Business Plan for Digital Imaging and Document Management

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This Business Plan for a Digital Imaging and Document Management company 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.

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  • pg 1
									This Business Plan for a Digital Imaging and Document Management company 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__

                                       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.                                                          1
                                                                Table of Contents



1.0 Executive Summary .................................................................................................................... 1
    Chart: Highlights .......................................................................................................................... 2
  1.1 Objectives.................................................................................................................................... 2
  1.2 Mission .......................................................................................................................................... 3
  1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
  2.1 Company Ownership ............................................................................................................... 4
  2.2 Company History ...................................................................................................................... 4
    Table: Past Performance ........................................................................................................... 4
    Chart: Past Performance ........................................................................................................... 5
3.0 Services ............................................................................................................................................ 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 ...................................................................................... 7
  4.3 Service Business Analysis ..................................................................................................... 8
    4.3.1 Competition and Buying Patterns .............................................................................. 9
5.0 Web Plan Summary ..................................................................................................................... 9
  5.1 Website Marketing Strategy ............................................................................................... 10
  5.2 Development Requirements ............................................................................................... 10
6.0 Strategy and Implementation Summary .......................................................................... 10
  6.1 SWOT Analysis ........................................................................................................................ 10
    6.1.1 Strengths ........................................................................................................................... 10
    6.1.2 Weaknesses ...................................................................................................................... 10
    6.1.3 Opportunities ................................................................................................................... 11
    6.1.4 Threats ............................................................................................................................... 11
  6.2 Competitive Edge ................................................................................................................... 11
  6.3 Marketing Strategy ................................................................................................................ 11
  6.4 Sales Strategy ......................................................................................................................... 12
    6.4.1 Sales Forecast.................................................................................................................. 12
      Table: Sales Forecast ........................................................................................................... 12
      Chart: Sales Monthly ............................................................................................................ 13
      Chart: Sales by Year ............................................................................................................. 13
  6.5 Milestones.................................................................................................................................. 13
    Table: Milestones ....................................................................................................................... 14
7.0 Management Summary ............................................................................................................ 14
  7.1 Personnel Plan ......................................................................................................................... 15
    Table: Personnel ......................................................................................................................... 15
8.0 Financial Plan ............................................................................................................................... 15
  8.1 Important Assumptions ....................................................................................................... 16
  8.2 Break-even Analysis .............................................................................................................. 16
    Table: Break-even Analysis.................................................................................................... 16
    Chart: Break-even Analysis ................................................................................................... 16

                                                                                                                                                 Page 1
                                                              Table of Contents



  8.3 Projected Profit and Loss ..................................................................................................... 17
    Table: Profit and Loss ............................................................................................................... 17
    Chart: Profit Monthly ................................................................................................................ 18
    Chart: Profit Yearly .................................................................................................................... 18
    Chart: Gross Margin Monthly................................................................................................. 19
    Chart: Gross Margin Yearly .................................................................................................... 19
  8.4 Projected Cash Flow .............................................................................................................. 20
    Table: Cash Flow ........................................................................................................................ 20
    Chart: Cash .................................................................................................................................. 21
  8.5 Projected Balance Sheet ...................................................................................................... 21
    Table: Balance Sheet ................................................................................................................ 21
    Table: Balance Sheet (Continued) ...................................................................................... 22
  8.6 Business Ratios ....................................................................................................................... 23
    Table: Ratios ................................................................................................................................ 23
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 1
Table: Profit and Loss ......................................................................................................................... 2
Table: Cash Flow .................................................................................................................................. 3
Table: Balance Sheet .......................................................................................................................... 5




                                                                                                                                            Page 2
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                        Gill Digital Services
1.0 Executive Summary

   Company: [Company Name]
   Contact: [Name]
   Address: [Address]
   [City, State ZIP]
   Tel: XXX-XXX-XXXX
   Fax: XXX-XXX-XXXX
   Email: [Email Address]
   Website:

   Introduction
   The long-term goal of [Company Name] is to increase the size of the Company through
   planned growth as well as create jobs for the community; purchase more equipment like
   scanners, oversized scanners, office furniture, supplies, multi-functional copiers, and all of the
   necessary miscellaneous needs of a growing business; purchase state-of-the-art technology like
   servers, computers, technology supplies, CD’s, DVD’s in massive quantities, software, etc; to
   increase the office square footage by leasing more space based on planned increased growth;
   to create additional required branch production facilities; and purchase more trucks for
   transporting paper boxes from clients to production facilities. [Company Name] 's mission is to
   become the essential business partner by providing innovative solutions that create a
   “paperless” or “less paper” environment that will positively impact a company's productivity,
   efficiencies, customer service, past, present and future, as well as, to significantly and
   immediately increase the bottom line. [Company Name] is expanding its exposure through
   effective marketing as well as introducing the area to market segments that have not yet
   discovered the Company.

   [Company Name] is very community oriented. The Company works with charitable
   organizations such as [Name] Children & Family Services, which is a non-profit organization
   based in Dallas, Texas. The organization has a humanitarian focus, in which it aims to meet the
   basic needs of the children and families it encounters. Additionally, [Company Name] also has a
   strong environmental focus, in which it aids companies by creating a paperless environment.
   The Company, converts vital paper documents into electronic images and enables businesses
   to become an integral part of saving the environment and at the same time benefit from the
   efficiencies of viewing vital paper documents on their own personal computer rather than
   having to locate the paper in a filing cabinet, file room, offsite storage or any other filing
   system. With grant funding, [Company Name] will be able to expand its services and continue
   to be a positive resource for its community.

   Location
   [Company Name] is headquartered in Dallas, Texas.

   The Company
   [Company Name] is a digital imaging and document management services company,
   established in 2002 by [Name]. [Name] has been in business for 8 years and provides services
   to small offices as well as Fortune 500 companies. [Company Name] is certified by the North
   Central Texas Regional Certification Agency, the National Woman's Business Enterprise and is
   HUB (Historically Underutilized Businesses) certified.

   Our Services
   [Company Name] is a Green Initiative Document                  Solutions   Consulting   Company
   and Bonded/Secured Kodak Scanning Service Bureau.




                                                                     [Name] {Tel: XXX-XXX-XXXX}
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                       Gill Digital Services
   The Market
   [Company Name] caters to clients locally within Texas, as well as nationwide, who are in need
   of digital imaging and document management services. [Company Name] knows how to meet
   the needs of its clients.

   Financial Considerations
   The current financial plan for [Company Name] is to obtain grant funding in the amount of
   $800,000. The grant will be used to purchase equipment, hire additional employees and
   purchase additional space.

   Chart: Highlights




1.1 Objectives

   [Company Name] has six main objectives:

      To increase the size of the Company through planned growth, as well as create jobs for the
       community.
      To purchase more equipment like scanners, oversized scanners, office furniture, supplies,
       multi-functional copiers, and all of the necessary miscellaneous needs of a growing business
      To purchase state of the art technology like servers, computers, technology supplies, CD’s
       and DVD’s in massive quantities, software, etc.
      To increase the office square footage by leasing more space based on planned increased
       growth
      To create additional required branch production facilities
      To purchase more trucks for transporting paper boxes from clients to production facilities




                                                                    [Name] {Tel: XXX-XXX-XXXX}
                                 Gill Digital Name]
                               [CompanyServices, LLC
                                       Gill Digital Services
1.2 Mission

   [Company Name] 's mission is to become the essential business partner by providing innovative
   solutions that create a “paperless” or “less paper” environment that will positively impact a
   company's productivity, efficiencies, customer service, past, present and future, as well as,
   significantly and immediately increase the bottom line.

1.3 Keys to Success

   [Company Name] 's keys to success are:

      Passion. Being passionate about the Company and what it represents.
      Extreme love. Loving the Company and never getting tired of doing our job.
      Perseverance. Always striving for better solutions to obtain greater and more positive
       results.
      Be a visionary. Thinking of how the Company can help its clients rather than how much
       money it'll will make on a project.
      Faith. Having faith in the Company and our skill set.
      Uniqueness. Being unique and better and more different than our competitors.
      Keep dreaming. Be a dreamer because this Company is proof that dreams do come true.

2.0 Company Summary

   Company: [Company Name]

   Contact: [Name]
   Address: [Address]
   [City, State ZIP]
   Tel: XXX-XXX-XXXX Fax: XXX-XXX-XXXX
   Email: [Email Address]
   Website:

   [Company Name] 's headquarters are located in Dallas, Texas with branch production offices in
   Houston, Austin, and San Antonio, Texas and sales offices in New Orleans, Louisiana and Boca
   Raton, Florida. [Company Name]is a Limited Liability Corporation, established in 2002 where it
   initially served the legal community, as a result of the Dallas Court System creating paperless
   courtrooms and eliminating their paper filing storage space. Shortly thereafter, realizing that
   private industry also had a need for these services, [Company Name] expanded to serve the
   private sectors from one-man offices to Fortune 500 companies. The owner of [Company
   Name] is [Name], who has expertise in aiding businesses to convert to paperless offices.
   [Name] was nominated as one of 100 candidates for the “Woman of the Year” award sponsored
   by Southern Methodist University’s Cox School of Business. She is currently working as a co-
   author of an e-book about paperless offices.

   [Company Name] is certified by the North Central Texas Regional Certification Agency, the
   National Woman's Business Enterprise and HUB (Historically Underutilized Businesses). In June
   1, 2010, the Company was awarded the GSA Advantage Government Contract (20 year General
   Services Administration contract). Additionally, the Company became an official GPO Contractor
   (Government Printing Office).

   Gill Digital Service is a Green Initiative Document Solutions Consulting Company and a Bonded,
   Secured and Certified Kodak Scanning Service Bureau.



                                                                   [Name] {Tel: XXX-XXX-XXXX}
                                              Gill Digital Name]
                                            [CompanyServices, LLC
                                                 Gill Digital Services
2.1 Company Ownership

    [Company Name] is a 100% woman-owned business, GSA Advantage Contractor certified by
    WBE National Council, NCTRCA and HUB certified by the State of Texas and a full-service
    certified Kodak Scanning Service Bureau offering turnkey document management solutions.
    [Company Name] was established in 2002 by [Name]as a Limited Liability Corporation.

2.2 Company History

    The following table and chart shows the past financials for [Company Name] .

    Sales for 2007, 2008 and 2009 were $319,027, $285,792 and $318,897, respectively. The
    gross margin for this period is $318,337, $283,275 and $317,938. Earnings for this period
    were ($113,602), ($53,500) and ($46,497).

Table: Past Performance

Past Performance
                                                                2007          2008          2009
Sales                                                       $319,027      $285,792      $318,897
Gross Margin                                                $318,337      $283,275      $317,938
Gross Margin %                                               99.78%        99.12%        99.70%
Operating Expenses                                          $457,923      $393,837      $436,046

Balance Sheet
                                                                2007          2008          2009
Current Assets
Cash                                                          $6,188        $5,713        $5,713
Other Current Assets                                          $4,678        $4,403        $4,403
Total Current Assets                                         $10,866       $10,116       $10,116

Long-term Assets
Long-term Assets                                                   $0                          $0
Accumulated Depreciation                                    ($19,345)     ($17,520)     ($15,000)
Total Long-term Assets                                        $19,345       $17,520       $15,000

Total Assets                                                 $30,211       $27,636       $25,116

Current Liabilities
Accounts Payable                                                   $0            $0           $0
Current Borrowing                                           ($15,519)     ($14,816)      $13,000
Other Current Liabilities (interest free)                  ($254,386)    ($301,765)     $275,000
Total Current Liabilities                                  ($269,905)    ($316,581)     $288,000

Long-term Liabilities                                              $0            $0           $0
Total Liabilities                                          ($269,905)    ($316,581)     $288,000

Paid-in Capital                                              $239,694     $288,945             $0
Retained Earnings                                            $174,024     $108,772     ($216,387)
Earnings                                                   ($113,602)     ($53,500)     ($46,497)
Total Capital                                                $300,116     $344,217     ($262,884)

Total Capital and Liabilities                                $30,211       $27,636       $25,116
Other Inputs
Payment Days                                                       0             0             0



                                                                           [Name] {Tel: XXX-XXX-XXXX}
                                 Gill Digital Name]
                               [CompanyServices, LLC
                                      Gill Digital Services
   Chart: Past Performance




3.0 Services

   [Company Name] is a Green Initiative Document Solutions Consulting Company and
   Bonded/Secured Kodak Scanning Service Bureau providing the following services:

      STATE-OF-THE-ART KODAK SCANNERS! As a Kodak Value Added Reseller (VAR's), the
       Company provides the "best priced and quality scanners" in town
      SCANNING, INDEXING, BOOKMARKING AND OCR SEARCHIBILITY PERFORMED IN
       OUR KODAK SERVICE BUREAU! Eliminate filing cabinets, filing rooms, offsite storage,
       warehouses, or anywhere else paper documents are stored. Increase efficiency, customer
       service, productivity and most importantly, increase the bottom line with [Company Name]
       's services by outsourcing them. Access digitally imaged documents from any computer in
       less than 10 seconds
      OVER FORTY-ONE (41) DIFFERENT DOCUMENT MANAGEMENT AND CONTROL
       SOFTWARE AND "SAS" - SOFTWARE AS SOLUTION OPTIONS! Features include placing
       retention on when you desire images to be deleted; assigning permissions on who can
       access information; emailing/faxing data, workflow processes and many, many more
       features
      FTP SITE HOSTING SERVICES! Access data from anywhere in the world, 24 hours a day,
       7 days a week, 365 days a year!
      DISASTER PREPAREDNESS AND DISASTER RECOVERY SERVICES! The Company
       offers business continuity data backup service!
      DOCUMENT DESTRUCTION! [Company Name] destroys the original scanned and
       processed paper once completed, viewed and approved by the client. A notarized and
       certified "Certificate of Destruction" will be provided for safe-keeping for the client.




                                                                 [Name] {Tel: XXX-XXX-XXXX}
                                 Gill Digital Name]
                               [CompanyServices, LLC
                                       Gill Digital Services
4.0 Market Analysis Summary

   Records management experts are in the business of making paper and documents manageable.
   Many use Kodak Scanners to capture often irreplaceable documents and data with exceptional
   image quality and ease. Others look to integrated imaging and microfilm solutions to provide
   added security for highly valuable materials.

   Digital Imaging and Document Management technology provides many benefits that are
   impossible to achieve in paper-based filing systems. For instance, imaging systems today
   typically index every word on every page for search and retrieval. Today, Document
   Management experts report that up to 90 percent of all corporate information resides on paper
   or some type of unstructured format. Further, the Document Management technology available
   today requires little or no organizational change while providing amazing benefits. Therefore,
   Document Imaging and Document Management solutions are becoming must-have technologies
   for organizations of any size.

   [Company Name] business plan focuses solely on the Company's immediate market, clients
   within the Dallas, Texas; Houston, Texas; Austin, Texas; and San Antonio area, in need
   of digital imaging and document management services. Furthermore, [Company Name] will
   also provide services in additional cities via the use of a large mobile office. [Company Name]
   has the services necessary to flourish within these markets. By delivering superior customer
   service and having an outstanding reputation, [Company Name] 's potential is excellent.

4.1 Market Segmentation

   [Company Name] market segmentation scheme is fairly straightforward, and focuses on the
   Company's immediate market, clients within the Dallas, Texas; Houston, Texas; Austin, Texas
   and San Antonio, TX area, in need of digital imaging and document management services.
   Furthermore, [Company Name] will provide its services to companies in additional cities
   throughout the United States, via a large mobile office. These customers prefer certain quality
   of work as well as timeliness and its [Company Name] 's duty to deliver on their expectations.

   [Company Name] knows that companies are beginning to embrace the "going green' concept
   and are taking an environmental approach in running their business. Therefore, there will
   always be a need for document management companies, especially if companies are focusing
   on becoming a paperless office. Customers within the digital imaging and document
   management services      industry    want exceptional customer service,  quality   work,
   confidentiality and affordable rates. [Company Name] 's customers appreciate the quality
   service that the Company offers, as well as the knowledgeable and experienced staff.
   These customers have the option to go elsewhere, but they understand that giving their
   business to [Company Name] is beneficial to them because the Company delivers the
   dedication and dependability that they desire.

   The information contained in the market analysis table, displays [Company Name] 's main
   markets, businesses within the Dallas, TX; Houston, TX; Austin, TX and San Antonio, TX area.




                                                                   [Name] {Tel: XXX-XXX-XXXX}
                                    Gill Digital Name]
                                  [CompanyServices, LLC
                                       Gill Digital Services
Table: Market Analysis


Market Analysis
                                     2010        2011          2012      2013      2014
Potential Customers      Growth                                                              CAGR
Dallas, TX                   3%    146,413    150,805     155,329     159,989   164,789      3.00%
Houston, TX                  2%    259,658    264,851     270,148     275,551   281,062      2.00%
Austin, TX                   2%     89,417     91,205      93,029      94,890    96,788      2.00%
San Antonio, TX              2%    109,791    111,987     114,227     116,512   118,842      2.00%
Total                     2.24%    605,279    618,848     632,733     646,942   661,481      2.24%



   Chart: Market Analysis (Pie)




4.2 Target Market Segment Strategy

   [Company Name] caters to clients within the Dallas, Texas; Houston, Texas; Austin, Texas and
   San      Antonio,    Texas area,  in     need      of digital  imaging     and     document
   management services. [Company Name] knows how to meet the needs of its clients. The
   Company knows that satisfied customers aid the Company by referring its business to other
   clients who need the services.

   [Company Name] serves the digital imaging and document management services market
   segment. [Company Name] 's choice of target markets is based on an in-depth understanding
   of the customer's needs. [Company Name] skills and capabilities will allow the Company to
   effectively compete and build on to its reputation within its area. Therefore, obtaining grant
   funding and strengthening its marketing strategy will improve the Company's profitability levels
   and aid them in building a strong customer base.




                                                                      [Name] {Tel: XXX-XXX-XXXX}
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                        Gill Digital Services
4.3 Service Business Analysis

   [Company Name] believes in "saving the forests" as well as the environment. Gill Digital
   Service is a turnkey solutions company creating paperless or less paper environments.
   [Company Name] converts vital paper documents into electronic images. By doing
   so, companies become an integral part of saving the environment and at the same time benefit
   from the efficiencies of viewing vital paper documents on their own personal computer, rather
   than having to locate the paper in a filing cabinet, file room, offsite storage or any other
   complicated filing system.

   [Company Name] provides this service by:

      PREPARATION: We take the preparation of your vital documents very seriously. We
       increase and/or decrease the tone, scotch tape, remove staples, clips, fasteners and restore
       water damaged or age-deteriorated documents to original condition prior to scanning them
       at 200 pages per minute or 12,000 pages per hour.
      SCANNING: We convert black and white or colored paper, books, magazines, periodicals,
       microfilm, microfiche, laser-fiche, blueprints, architectural drawings, audiotapes,
       videotapes, analog x-rays, age-deteriorated or damaged paper documents. We convert any
       size document no matter how small, how large, what color or texture into electronic digital
       images viewed, instantly, from any computer, replacing the need to locate paper in file
       rooms and/or in offsite storage boxes. We convert your digital images into universally
       accepted PDF, TIFF or other formats.
      INDEXING: We index, code and bookmark, allowing you to locate your documents by first
       name, last name, birth date, social security number, or customize to your needs.
      OCR (SEARCHABILITY): We provide Optical Character Recognition (OCR) creating
       searchable text images that can be accessed instantly. We quality check for clarity, accuracy
       and completeness.
      DMS, EMR, EHR SOLUTIONS: We can upload your electronic images to our customized
       Electronic Medical Records, Electronic Health Records or Document Management and Control
       software systems or import them directly into your servers or databases.
      FTP SITE: We provide access to your digital images, 24/7/365, from anywhere in the world
       via a private, secured and password protected FTP site hosted by Gill Hosting Company.
      DESTRUCTION: We provide destruction of the paper documents along with a Certified and
       Notarized Letter of Destruction!
      STORAGE: We provide storage of your paper document boxes should you require retention
       storage along with your electronic storage.

   As simple as it may be, [Company Name] 's method of executing exceptional customer service
   has an important effect on the bottom line: People want to give their business to those who
   appreciate it. Skillful use of advertising/marketing and strong communication will bring the
   business the Company desires.




                                                                     [Name] {Tel: XXX-XXX-XXXX}
                                 Gill Digital Name]
                               [CompanyServices, LLC
                                        Gill Digital Services
4.3.1 Competition and Buying Patterns

   [Company Name] offers years of imaging service experience providing conversion from paper
   to digital images burned onto a library of CD's or DVD's, or imported onto an FTP site for
   storage or downloading into software server systems. [Company Name] converts vital paper
   documents, microfilm, microfiche, aperture cards, x-rays, blueprints, drawings, audiotapes,
   videotapes, age-deteriorated or damaged paper documents into electronic digital images.
   [Company Name] 's certified technicians provide prompt and qualitative assistance in IT
   Services (on-site desktop support, remote technical support), Network Services (network
   implementation, ISP provider), Computer-related Services (computer customization, computer
   repair, and server installation) and Web-related Internet Services (web design, hosting, web
   applications, php, asp, seo).

   Realizing the importance of time in today's business environment, [Company Name] is the only
   company that had the vision to establish strategic partnerships with dynamic companies, in
   order to offer clients complete turnkey solutions. [Company Name] 's document management
   process is listed below:

   1. Converting vital paper documents, microfilm, microfiche, x-rays, blueprints, drawings,
      audiotapes, videotapes, age-deteriorated or damaged paper documents into electronic
      digital images
   2. Creation of a library of CD's or DVD's
   3. Importing the electronic images to privately secured and password accessed FTP site for
      downloading into servers allowing the client to view the documents
   4. Hosting data through Gill Hosting and access anywhere in the world, 24 hours a day, 7 days
      a weeks and 365 days a year
   5. Providing a letter of destruction on paper, or any other media that would be converting
      and/or recycling. [Company Name] is a part of the "green" movement helping to save the
      trees in the forests, as well as the environment
   6. Providing a standard or custom-designed document management and control system so
      that the client can enjoy administrative rights that determine what individual has access to
      what document for security reasons, workflow, email, fax, set retention schedules, etc.
   7. Providing total technology solutions to Education, Government and Corporate customers.
      Offering a complete line up of computer systems and a wide range of networking products
      and services

   [Company Name] 's goal is to fulfill client's demands because it will aid in generating future
   business. If clients are happy, they will recommend the Company to others who need the
   service. Having longevity in the document management services market enables [Company
   Name] to effectively compete within its industry. [Company Name] knows that image and
   visibility aids in getting its name out.

5.0 Web Plan Summary

   [Company Name] is heavily entrenched in the internet. The Company's website is an
   opportunity to offer current information on its service offerings and company background. The
   website is another method to generate steady business in its area.

   [Company Name] plans to enhance its website to provide an Internet presence that will better
   represent it through digital images and text and serve to more effectively market the Company
   and expand its market.




                                                                   [Name] {Tel: XXX-XXX-XXXX}
                                   Gill Digital Name]
                                 [CompanyServices, LLC
                                        Gill Digital Services
5.1 Website Marketing Strategy

   [Company Name] 's website is promoted on all of its marketing materials. The Company will
   continue to advertise the site on its business cards, as well as in other industry related
   publications and online ads.

5.2 Development Requirements

   [Company Name] has an attractive, simple and informative internet focused website. It is a
   user friendly site from a dependable hosting company.

6.0 Strategy and Implementation Summary

   [Company Name] has clearly defined the target market and have differentiated the
   Company by offering a solid solution to fulfilling its customers' needs. Reasonable sales targets
   have been established with an implementation plan designed to ensure the goals set forth
   below are achieved.

6.1 SWOT Analysis

   [Company Name] has a valuable inventory of strengths that will help it succeed. These
   strengths include: 8 years of industry experience, an outstanding reputation, excellent and
   stable staff, accuracy and timeliness, superior problem solving skills, accountability and high
   achievable standards. Strengths are valuable, but it is also important to realize the weaknesses
   [Company Name] must address. The Company's weaknesses include: dealing with limited
   resources and limited cash flow to handle all of the day-to-day functions and expenses.

   [Company Name] 's strengths will help it capitalize on emerging opportunities. These
   opportunities include, but are not limited to, a growing market with a significant percentage of
   the target market still not knowing the Company exists, as well expanding the organization to
   provide its clients with more services. [Company Name] 's biggest threats include: operating in
   a bad economy and emerging local competitors.

6.1.1 Strengths

   [Company Name] has much notable strengths. These strengths include the Companies:

      8 years of industry experience
      Outstanding reputation
      Excellent and stable staff, offering personalized customer service.
      Accuracy and timeliness.
      Superior problem solving skills.
      Accountability
      High achievable standards.

6.1.2 Weaknesses

   [Company Name] 's weaknesses include:

      Still considered a small Company that has to deal with many tasks, even with limited
       resources.
      Limited cash flow to handle all of the day-to-day functions and expenses.



                                                                      [Name] {Tel: XXX-XXX-XXXX}
                                   Gill Digital Name]
                                 [CompanyServices, LLC
                                        Gill Digital Services
6.1.3 Opportunities

   Opportunities for [Company Name] include:

      Growing market with a significant percentage of the Company's target market still not
       knowing it exists.
      Expanding the organization to provide its clients with more services.

6.1.4 Threats

   [Company Name] biggest threats include:

      A bad economy.
      Emerging local competitors.

6.2 Competitive Edge

   [Company Name] currently doesn't have any competitors who offer the same complete turnkey
   solutions. [Company Name] are the visionaries and leaders in this industry, also possessing the
   GSA Advantage and GPO contracts.

   WHY IS [COMPANY NAME] 's BETTER:

      [Company Name] 's cares about its clients and listens to their needs. Additionally, it has its
       name on each and every business card, stationery, envelope, brochure and doesn't hide
       behind a generic company name.
      Communication and addressing any problem or potential problem immediately.
      Honesty is [Company Name] 's best policy, as well as never making excuses. [Company
       Name] knows to always maintain the highest degree of professionalism in order to earn its
       client's loyalty and trust.

   By building a business based on satisfying clients, [Company Name] simultaneously builds
   defenses against competition. The Company will continue to help clients understand what it
   offers them and why they need it.

   [Company Name] 's company motto ---

   "YOUR TOTAL SATISFACTION IS OUR TOP PRIORITY …AND WE MEAN IT!"

6.3 Marketing Strategy

   [Company Name] 's marketing strategy involves:

      Word-of-mouth advertising
      Website, [Website Address]
      Email blasts
      Direct Account Executives in Sales
      Sales and referrals through Strategic Partners
      Client referrals
      Seminars
      Conferences
      Conventions
      Membership in Industry-related organizations

                                                                     [Name] {Tel: XXX-XXX-XXXX}
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                       Gill Digital Services
       Networking
       Linked-in, Facebook, etc.
       Power point presentations
       Brochures
       CD-DVD Business Cards
       Co-authored e-book on Paperless Revolution

    The Company's goal is to provide exceptional service to its customers. [Company Name] knows
    what each customer needs and aims to satisfy them.

    Currently, [Company Name] has an advantage because the owner, [Name]is a superior
    business woman that has excellent work ethics, customer service and communication
    skills. The owner also offers in-depth knowledge of the document imaging and management
    services industry. [Company Name] 's quality of work and level of integrity helps the
    Company build a strong reputation within its community.

6.4 Sales Strategy

    [Company Name] has sales offices in New Orleans, Louisiana and Boca Raton, Florida.
    [Company Name] has excellent customer relation skills and work ethics; these skills will be
    useful in making customers comfortable in trusting the Company to provide their document
    management technology services. Keeping customers happy, is an implicit part of building a
    relationship that will encourage repeat business, as well as gaining new customers.

6.4.1 Sales Forecast

    The chart and table below show [Company Name] 's projected Sales Forecast. Annual
    projections for three years are shown here, with first year monthly figures in the appendix.

    [Company Name] 's sales forecast include:

       Document Management Services

    The 2010, 2011 and 2012 sales forecast for $450,000, $800,000 and $1,600,000. The sales in
    2011 and 2012 increase significantly due to the Company being awarded the distinguished GSA
    Advantage Government Contract (20 year General Services Administration contract) as well as
    becoming an official GPO Contractor (Government Printing Office) in June 2010.

Table: Sales Forecast

Sales Forecast
                                                         2010           2011             2012
Sales
Document Management Services                         $450,000        $800,000       $1,600,000
                                                           $0
Total Sales                                          $450,000        $800,000       $1,600,000

Direct Cost of Sales                                      2010           2011            2012
Document Management Services                            $3,108         $3,419          $3,761
                                                            $0
Subtotal Direct Cost of Sales                           $3,108         $3,419          $3,761




                                                                  [Name] {Tel: XXX-XXX-XXXX}
                                 Gill Digital Name]
                               [CompanyServices, LLC
                                       Gill Digital Services
   Chart: Sales Monthly




   Chart: Sales by Year




6.5 Milestones

   In order to achieve the growth and marketing goals that have been outlined in this business
   plan, [Company Name] has deadlines to meet and ideas to implement. Some of these are
   outlined below:

                                                                   [Name] {Tel: XXX-XXX-XXXX}
                                   Gill Digital Name]
                                 [CompanyServices, LLC
                                            Gill Digital Services

    1.   Awarded GSA and GPO Contract
    2.   Obtain grant funding in the amount of $800,000 to improve business
    3.   Purchase Vital Equipment
    4.   Hire Additional Employees (Preparation Specialists)
    5.   Purchase Additional Space

    Obtaining grant funding allows the company to grow, creates jobs for the community, support
    the "going green" initiative and create stability within the company. Grant funding will also
    allow for the hiring of key personnel and a larger space for the Company to work efficiently and
    effectively. Additionally, the purchase of new equipment will provide the resources the
    Company needs to continue to offer its services in a reputable manner.

Table: Milestones

Milestones

Milestone                      Start Date         End Date           Budget              Ceo     Department
Awarded GSA and GPO             6/1/2010          6/1/2030              $0            [Name]   Administrative
Contract
Purchase Equipment             10/1/2010          10/1/2011         $600,000          [Name]   Administrative
Hire Additional Employees      10/1/2010          10/1/2011         $145,000          [Name]   Administrative
(Preparation Specialists)
Purchase Additional Space      10/1/2010          10/1/2011          $55,000          [Name]   Administrative

Totals                                                              $800,000

7.0 Management Summary

    [Company Name]

    [Name]is the Chief Executive Officer and President of [Company Name] . [Name] has 8 years
    experience in running a digital imaging and document management services company. She has
    extensive knowledge of the industry and has impeccable managerial skills as well as a strong
    managerial background.

    [Name]'s background includes serving on the

    a) Dallas County Court Taxable Committee,
    b) Board of Directors for the Texas Association of Records Specialists,
    c) appeared on several Gallagher Financial Hour radio programs in Dallas discussing paperless
    environments and their impact on Corporate America,
    d) invited by the Dade and Broward County Lawyer’s Association to conduct a seminar in Boca
    Raton, Florida on how to create a paperless law office
    e) and, has been nominated as one of 100 candidates for the “Woman of the Year” award
    sponsored by Southern Methodist University’s Cox School of Business.

    [Company Name] 's additional upper level managers include [Name], CFO and COO; and
    [Name], Chief Information Officer and Executive Vice President. The Operations Manager is
    [Name], the Preparation Manager is [Name] and the Indexing Manager is April Cowan.




                                                                               [Name] {Tel: XXX-XXX-XXXX}
                                   Gill Digital Name]
                                 [CompanyServices, LLC
                                       Gill Digital Services

7.1 Personnel Plan

    [Company Name]
    The table below contains the details of [Company Name]'s personnel plan. The detailed monthly
    personnel plan for the first year is included in the appendix.

    [Name]is the owner of [Company Name] , which is a digital imaging and document
    management located in Dallas, TX; Houston, TX; and Austin, TX area. Currently, [Company
    Name] consist of the owner, Managers, Bookkeeper, Receptionist, Scanner Operator
    and Index/Scanner. Furthermore, the Company has seven 1099 workers. Upon receipt of the
    grant money, the Company will hire additional preparation specialist who will aid towards the
    growth of the Company.

Table: Personnel

Personnel Plan
                                                                  2010            2011          2012
Chief Information Officer/ VP                                  $41,196         $42,020       $42,860
Operations Manager                                             $22,884         $23,342       $23,809
Bookkeeper                                                     $21,048         $21,469       $21,898
Receptionist                                                   $20,796         $21,212       $21,636
Scanner Operator                                               $57,216         $58,360       $59,528
Preparation Manager                                            $16,644         $16,977       $17,316
Index/Scanner                                                  $15,084         $15,386       $15,693
New Preppers                                                        $0        $145,000      $147,900
Total People                                                         9              17            17

Total Payroll                                              $194,868           $343,765      $350,641



8.0 Financial Plan

    The current financial plan for [Company Name] is to obtain grant funding in the amount of
    $800,000. The grant will be used to purchase equipment, hire additional employees and
    purchase additional space.

    The following sections of this plan will serve to describe [Company Name] 's financial plan in
    more detail:

       •   General Assumptions
       •   Break-even Analysis
       •   Profit and Loss
       •   Cash Flow
       •   Balance Sheet




                                                                         [Name] {Tel: XXX-XXX-XXXX}
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                     Gill Digital Services

8.1 Important Assumptions

   The table below presents the assumptions used in the financial calculations of this business
   plan.

   The average percent variable cost is estimated to be 1%. The estimated monthly fixed cost is
   $34,255.

8.2 Break-even Analysis

   For the break-even analysis, the monthly revenue needed to break-even is $34,494. The break-
   even analysis has been calculated on the "burn rate" of The Company. [Company Name] feels
   that this gives the investor a more accurate picture of the actual risk of the venture.


Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even                       $34,494

Assumptions:
Average Percent Variable Cost                        1%
Estimated Monthly Fixed Cost                     $34,255



   Chart: Break-even Analysis




                                                                 [Name] {Tel: XXX-XXX-XXXX}
                                     Gill Digital Name]
                                   [CompanyServices, LLC
                                        Gill Digital Services
8.3 Projected Profit and Loss

    [Company Name] 's Pro Forma Profit and Loss statement was constructed from a conservative
    point-of-view, and is based in large part on past performance.

    The sales for 2010, 2011 and 2012 are $450,000, $800,000 and $1,600,000, respectively. The
    net profit for the same period is $25,080, $97,407 and $259,537, respectively. The
    percentages of the net profit sales for this period are 5.57%, 12.12% and 16.21%,
    respectively.

    The depreciation of the new assets will be over a 7 year period.

Table: Profit and Loss

Pro Forma Profit and Loss
                                                     2010              2011              2012
Sales                                            $450,000          $800,000        $1,600,000
Direct Cost of Sales                               $3,108            $3,419            $3,761
Other Costs of Sales                                   $0                $0         $475,000
Total Cost of Sales                                $3,108            $3,419         $478,761

Gross Margin                                     $446,892          $796,581        $1,121,239
Gross Margin %                                    99.31%            99.57%            70.08%


Expenses
Payroll                                          $194,868          $343,765         $350,641
Marketing/Promotion                                $5,004            $5,000          $15,000
Depreciation                                           $0           $85,714          $85,714
Rent                                              $96,000           $96,000          $96,000
Phone/Fax                                          $5,004            $5,104           $8,677
Office Equipment                                  $60,000           $61,200         $104,040
Office Supplies                                    $5,004            $5,104           $8,677
Repair/Maintenance                                 $2,004            $2,044           $3,475
Insurance                                          $2,496            $2,500           $2,500
Payroll Taxes                                     $11,692           $20,626          $21,038
Travel                                             $3,000            $3,060           $5,202
Auto/Truck                                         $3,996            $4,076           $6,929
Delivery                                          $12,000           $12,240          $20,808
Other                                              $9,996           $10,996          $21,771

Total Operating Expenses                         $411,064          $657,429         $750,472

Profit Before Interest and Taxes                  $35,828          $139,152         $370,767
EBITDA                                            $35,828          $224,866         $456,481
 Interest Expense                                   $780              $585             $195
 Taxes Incurred                                   $10,514           $41,570         $111,172

Net Profit                                        $24,534              $96,997      $259,400
Net Profit/Sales                                   5.45%               12.12%        16.21%




                                                                        [Name] {Tel: XXX-XXX-XXXX}
                          Gill Digital Name]
                        [CompanyServices, LLC
                             Gill Digital Services
Chart: Profit Monthly




Chart: Profit Yearly




                                                     [Name] {Tel: XXX-XXX-XXXX}
                                Gill Digital Name]
                              [CompanyServices, LLC
                                   Gill Digital Services
Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




                                                           [Name] {Tel: XXX-XXX-XXXX}
                                          Gill Digital Name]
                                        [CompanyServices, LLC
                                             Gill Digital Services
8.4 Projected Cash Flow

    [Company Name] has applied for a grant of $800,000. In 2010, the Company forecasts that it'll
    receive the funding in the month of November. The grant funding will be used to purchase
    equipment, hire additional employees and purchase additional space.

    During this period, it will use $600,000 to purchase new equipment. Furthermore, upon receipt
    of grant funding, [Company Name] will allocate $36,236 a year to cover the liabilities.

    The following table displays [Company Name] 's cash flow and the chart illustrates monthly
    cash flow in the first year. Monthly cash flow projections are also included in the appendix

Table: Cash Flow

Pro Forma Cash Flow
                                                                     2010          2011            2012
Cash Received

Cash from Operations
Cash Sales                                                     $450,000         $800,000      $1,600,000
Subtotal Cash from Operations                                  $450,000         $800,000      $1,600,000

Additional Cash Received
Sales Tax, VAT, HST/GST Received                                      $0              $0              $0
New Current Borrowing                                                 $0              $0              $0
New Other Liabilities (interest-free)                                 $0              $0              $0
New Long-term Liabilities                                             $0              $0              $0
Sales of Other Current Assets                                         $0              $0              $0
Sales of Long-term Assets                                             $0              $0              $0
New Investment Received                                        $800,000               $0              $0
Subtotal Cash Received                                        $1,250,000        $800,000      $1,600,000

Expenditures                                                         2010          2011            2012

Expenditures from Operations
Cash Spending                                                  $194,868         $343,765       $350,641
Bill Payments                                                  $211,408         $270,233       $852,405
Subtotal Spent on Operations                                   $406,276         $613,998      $1,203,045

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                                      $0              $0              $0
Principal Repayment of Current Borrowing                              $0          $6,500          $6,500
Other Liabilities Principal Repayment                                 $0         $36,236         $36,236
Long-term Liabilities Principal Repayment                             $0              $0              $0
Purchase Other Current Assets                                         $0              $0              $0
Purchase Long-term Assets                                      $600,000               $0              $0
Dividends                                                             $0              $0              $0
Subtotal Cash Spent                                           $1,006,276        $656,734      $1,245,781

Net Cash Flow                                                  $243,724         $143,266       $354,219
Cash Balance                                                   $249,437         $392,703       $746,921




                                                                            [Name] {Tel: XXX-XXX-XXXX}
                                Gill Digital Name]
                              [CompanyServices, LLC
                                    Gill Digital Services
   Chart: Cash




8.5 Projected Balance Sheet

   [Company Name] 's net worth is $561,650, $658,647 and $918,047, for 2010, 2011, and 2012,
   respectively.

Table: Balance Sheet

Pro Forma Balance Sheet
                                                    2010          2011             2012
Assets

Current Assets
Cash                                            $249,437       $392,703        $746,921
Other Current Assets                              $4,403         $4,403          $4,403
Total Current Assets                            $253,840       $397,106        $751,324

Long-term Assets
Long-term Assets                                $600,000       $600,000        $600,000
Accumulated Depreciation                        ($15,000)       $70,714        $156,428
Total Long-term Assets                          $615,000       $529,286        $443,572
Total Assets                                    $868,840       $926,392       $1,194,896




                                                               [Name] {Tel: XXX-XXX-XXXX}
                                  Gill Digital Name]
                                [CompanyServices, LLC
                                     Gill Digital Services

Table: Balance Sheet (Continued)

Liabilities and Capital                              2010         2011          2012

Current Liabilities
Accounts Payable                                  $19,191      $22,481       $74,321
Current Borrowing                                 $13,000       $6,500            $0
Other Current Liabilities                        $275,000     $238,764      $202,528
Subtotal Current Liabilities                     $307,191     $267,745      $276,849

Long-term Liabilities                                  $0           $0            $0
Total Liabilities                                $307,191     $267,745      $276,849

Paid-in Capital                                   $800,000     $800,000      $800,000
Retained Earnings                               ($262,884)   ($238,350)    ($141,353)
Earnings                                           $24,534      $96,997      $259,400
Total Capital                                     $561,650     $658,647      $918,047
Total Liabilities and Capital                     $868,840     $926,392    $1,194,896

Net Worth                                        $561,650     $658,647      $918,047




                                                              [Name] {Tel: XXX-XXX-XXXX}
                                       Gill Digital Name]
                                     [CompanyServices, LLC
                                             Gill Digital Services
8.6 Business Ratios

    The table below presents the projected business ratios from the business services (copy and
    scanning of documents and files) markets as a reference.

Table: Ratios

Ratio Analysis
                                                      2010              2011             2012    Industry Profile
Sales Growth                                        41.11%            77.78%          100.00%             -1.74%

Percent of Total Assets
Other Current Assets                                 0.51%             0.48%            0.37%            53.58%
Total Current Assets                                29.22%            42.87%           62.88%            70.11%
Long-term Assets                                    70.78%            57.13%           37.12%            29.89%
Total Assets                                       100.00%           100.00%          100.00%           100.00%

Current Liabilities                                 35.36%            28.90%          23.17%             37.94%
Long-term Liabilities                                0.00%             0.00%           0.00%             54.53%
Total Liabilities                                   35.36%            28.90%          23.17%             92.47%
Net Worth                                           64.64%            71.10%          76.83%              7.53%

Percent of Sales
Sales                                              100.00%           100.00%          100.00%           100.00%
Gross Margin                                        99.31%            99.57%           70.08%            59.56%
Selling, General & Administrative Expenses          93.86%            87.45%           53.86%            28.35%
Advertising Expenses                                 1.11%             0.63%            0.94%             1.21%
Profit Before Interest and Taxes                     7.96%            17.39%           23.17%             8.19%

Main Ratios
Current                                                0.83              1.48            2.71               1.24
Quick                                                  0.83              1.48            2.71               1.18
Total Debt to Total Assets                          35.36%            28.90%          23.17%             92.47%
Pre-tax Return on Net Worth                          6.24%            21.04%          40.37%            696.34%
Pre-tax Return on Assets                             4.03%            14.96%          31.01%             52.41%

Additional Ratios                                     2010              2011            2012
Net Profit Margin                                    5.45%            12.12%          16.21%                 n.a
Return on Equity                                     4.37%            14.73%          28.26%                 n.a

Activity Ratios
Accounts Payable Turnover                             12.02             12.17           12.17                n.a
Payment Days                                             27                28              20                n.a
Total Asset Turnover                                   0.52              0.86            1.34                n.a

Debt Ratios
Debt to Net Worth                                      0.55              0.41            0.30                n.a
Current Liab. to Liab.                                 1.00              1.00            1.00                n.a

Liquidity Ratios
Net Working Capital                                ($53,350)         $129,361        $474,475                n.a
Interest Coverage                                      45.93           237.87         1,901.37               n.a

Additional Ratios
Assets to Sales                                        1.93              1.16            0.75                n.a
Current Debt/Total Assets                              35%               29%             23%                 n.a


                                                                                [Name] {Tel: XXX-XXX-XXXX}
                    Gill Digital Name]
                  [CompanyServices, LLC
                       Gill Digital Services
Acid Test                        0.83          1.48            2.71          n.a
Sales/Net Worth                  0.80          1.21            1.74          n.a
Dividend Payout                  0.00          0.00            0.00          n.a




                                                      [Name] {Tel: XXX-XXX-XXXX}
                                                                     Appendix

Table: Sales Forecast

Sales Forecast
                                   Jan        Feb        Mar        Apr        May       Jun        Jul       Aug       Sep       Oct       Nov       Dec
Sales
Document Management             $35,478    $35,833    $36,238    $36,553    $36,919   $37,288   $37,661    $38,038   $38,418   $38,802   $39,190   $39,582
Services

Total Sales                     $35,478    $35,833    $36,238    $36,553    $36,919   $37,288   $37,661    $38,038   $38,418   $38,802   $39,190   $39,582

Direct Cost of Sales               Jan        Feb        Mar        Apr        May       Jun        Jul       Aug       Sep       Oct       Nov       Dec
Document Management               $245       $247       $249       $251       $254      $257      $260       $263      $266      $269      $272      $275
Services

Subtotal Direct Cost of Sales     $245       $247       $249       $251       $254      $257      $260       $263      $266      $269      $272      $275


Table: Personnel

Personnel Plan
                                     Jan        Feb        Mar        Apr      May        Jun        Jul       Aug       Sep       Oct       Nov      Dec
Chief Information Officer/ VP     $3,433     $3,433     $3,433     $3,433    $3,433    $3,433    $3,433     $3,433    $3,433    $3,433    $3,433    $3,433
Operations Manager                $1,907     $1,907     $1,907     $1,907    $1,907    $1,907    $1,907     $1,907    $1,907    $1,907    $1,907    $1,907
Bookkeeper                        $1,754     $1,754     $1,754     $1,754    $1,754    $1,754    $1,754     $1,754    $1,754    $1,754    $1,754    $1,754
Receptionist                      $1,733     $1,733     $1,733     $1,733    $1,733    $1,733    $1,733     $1,733    $1,733    $1,733    $1,733    $1,733
Scanner Operator                  $4,768     $4,768     $4,768     $4,768    $4,768    $4,768    $4,768     $4,768    $4,768    $4,768    $4,768    $4,768
Preparation Manager               $1,387     $1,387     $1,387     $1,387    $1,387    $1,387    $1,387     $1,387    $1,387    $1,387    $1,387    $1,387
Index/Scanner                     $1,257     $1,257     $1,257     $1,257    $1,257    $1,257    $1,257     $1,257    $1,257    $1,257    $1,257    $1,257
New Preppers                          $0         $0         $0         $0        $0        $0        $0         $0        $0        $0        $0        $0
Total People                           9          9          9          9         9         9         9          9         9         9         9         9

Total Payroll                    $16,239    $16,239    $16,239    $16,239   $16,239   $16,239   $16,239    $16,239   $16,239   $16,239   $16,239   $16,239




                                                                                                                                                   Page 1
                                                                         Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
                                     Jan       Feb       Mar       Apr         May       Jun        Jul       Aug       Sep       Oct       Nov       Dec
Sales                            $35,478   $35,833   $36,238   $36,553     $36,919   $37,288   $37,661    $38,038   $38,418   $38,802   $39,190   $39,582
Direct Cost of Sales                $245      $247      $249      $251        $254      $257      $260       $263      $266      $269      $272      $275
Other Costs of Sales                  $0        $0        $0        $0          $0        $0        $0         $0        $0        $0        $0        $0
Total Cost of Sales                 $245      $247      $249      $251        $254      $257      $260       $263      $266      $269      $272      $275

Gross Margin                     $35,233   $35,586   $35,989   $36,302     $36,665   $37,031   $37,401    $37,775   $38,152   $38,533   $38,918   $39,307
Gross Margin %                   99.31%    99.31%    99.31%    99.31%      99.31%    99.31%    99.31%     99.31%    99.31%    99.31%    99.31%    99.31%

Expenses
Payroll                          $16,239   $16,239   $16,239   $16,239     $16,239   $16,239   $16,239    $16,239   $16,239   $16,239   $16,239   $16,239
Marketing/Promotion                 $417      $417      $417      $417        $417      $417      $417       $417      $417      $417      $417      $417
Depreciation                          $0        $0        $0        $0          $0        $0        $0         $0        $0        $0        $0        $0
Rent                              $8,000    $8,000    $8,000    $8,000      $8,000    $8,000    $8,000     $8,000    $8,000    $8,000    $8,000    $8,000
Phone/Fax                           $417      $417      $417      $417        $417      $417      $417       $417      $417      $417      $417      $417
Office Equipment                  $5,000    $5,000    $5,000    $5,000      $5,000    $5,000    $5,000     $5,000    $5,000    $5,000    $5,000    $5,000
Office Supplies                     $417      $417      $417      $417        $417      $417      $417       $417      $417      $417      $417      $417
Repair/Maintenance                  $167      $167      $167      $167        $167      $167      $167       $167      $167      $167      $167      $167
Insurance                           $208      $208      $208      $208        $208      $208      $208       $208      $208      $208      $208      $208
Payroll Taxes               6%      $974      $974      $974      $974        $974      $974      $974       $974      $974      $974      $974      $974
Travel                              $250      $250      $250      $250        $250      $250      $250       $250      $250      $250      $250      $250
Auto/Truck                          $333      $333      $333      $333        $333      $333      $333       $333      $333      $333      $333      $333
Delivery                          $1,000    $1,000    $1,000    $1,000      $1,000    $1,000    $1,000     $1,000    $1,000    $1,000    $1,000    $1,000
Other                               $833      $833      $833      $833        $833      $833      $833       $833      $833      $833      $833      $833

Total Operating Expenses         $34,255   $34,255   $34,255   $34,255     $34,255   $34,255   $34,255    $34,255   $34,255   $34,255   $34,255   $34,255

Profit Before Interest             $978     $1,331    $1,734    $2,047      $2,410    $2,776    $3,146     $3,520    $3,897    $4,278    $4,663    $5,052
and Taxes
EBITDA                             $978     $1,331    $1,734    $2,047      $2,410    $2,776    $3,146     $3,520    $3,897    $4,278    $4,663    $5,052
 Interest Expense                   $65        $65       $65       $65         $65       $65       $65        $65       $65       $65       $65       $65
 Taxes Incurred                    $274       $380      $501      $594        $703      $813      $924     $1,036    $1,149    $1,264    $1,379    $1,496

Net Profit                         $639      $886     $1,168    $1,387      $1,641    $1,897    $2,156     $2,418    $2,682    $2,949    $3,218    $3,491
Net Profit/Sales                  1.80%     2.47%     3.22%     3.79%       4.45%     5.09%     5.73%      6.36%     6.98%     7.60%     8.21%     8.82%
                                                                                                                                                  Page 2
                                                                          Appendix


Table: Cash Flow

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

Cash from Operations
Cash Sales                              $35,478   $35,833   $36,238   $36,553   $36,919   $37,288   $37,661   $38,038   $38,418   $38,802    $39,190   $39,582
Subtotal Cash from                      $35,478   $35,833   $36,238   $36,553   $36,919   $37,288   $37,661   $38,038   $38,418   $38,802    $39,190   $39,582
Operations

Additional Cash Received
Sales Tax, VAT, HST/GST         0.00%       $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0        $0
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 Liabilities                    $0        $0        $0        $0        $0        $0        $0        $0        $0        $0         $0        $0
Sales of Other Current Assets                $0        $0        $0        $0        $0        $0        $0        $0        $0        $0         $0        $0
Sales of Long-term Assets                    $0        $0        $0        $0        $0        $0        $0        $0        $0        $0         $0        $0
New Investment Received                      $0        $0        $0        $0        $0        $0        $0        $0        $0        $0   $800,000        $0
Subtotal Cash Received                  $35,478   $35,833   $36,238   $36,553   $36,919   $37,288   $37,661   $38,038   $38,418   $38,802   $839,190   $39,582




                                                                                                                                                       Page 3
                                                                 Appendix

Table: Cash Flow (Continued)

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

Expenditures from
Operations
Cash Spending                  $16,239   $16,239   $16,239   $16,239   $16,239   $16,239   $16,239   $16,239   $16,239   $16,239    $16,239    $16,239
Bill Payments                     $620   $18,604   $18,712   $18,834   $18,931   $19,042   $19,155   $19,269   $19,385   $19,501    $19,618    $19,737
Subtotal Spent on Operations   $16,859   $34,843   $34,951   $35,073   $35,170   $35,281   $35,394   $35,508   $35,624   $35,740    $35,857    $35,976

Additional Cash Spent
Sales Tax, VAT, HST/GST            $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0         $0
Paid Out
Principal Repayment of             $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0         $0
Current Borrowing
Other Liabilities Principal        $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0         $0
Repayment
Long-term Liabilities              $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0         $0
Principal Repayment
Purchase Other Current             $0        $0        $0        $0         $0       $0        $0        $0        $0        $0         $0         $0
Assets
Purchase Long-term Assets           $0        $0        $0        $0        $0        $0        $0        $0        $0        $0   $600,000         $0
Dividends                           $0        $0        $0        $0        $0        $0        $0        $0        $0        $0         $0         $0
Subtotal Cash Spent            $16,859   $34,843   $34,951   $35,073   $35,170   $35,281   $35,394   $35,508   $35,624   $35,740   $635,857    $35,976

Net Cash Flow                  $18,619      $990    $1,287    $1,480    $1,749    $2,007    $2,267    $2,530    $2,794    $3,062   $203,333     $3,606
Cash Balance                   $24,332   $25,322   $26,609   $28,089   $29,838   $31,845   $34,112   $36,641   $39,436   $42,498   $245,831   $249,437




                                                                                                                                              Page 4
                                                                                                  Appendix

Table: Balance Sheet

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

Current Assets
Cash                             $5,713         $24,332      $25,322      $26,609      $28,089       $29,838      $31,845      $34,112      $36,641      $39,436      $42,498     $245,831     $249,437
Other Current Assets             $4,403          $4,403       $4,403       $4,403       $4,403        $4,403       $4,403       $4,403       $4,403       $4,403       $4,403       $4,403       $4,403
Total Current Assets            $10,116         $28,735      $29,725      $31,012      $32,492       $34,241      $36,248      $38,515      $41,044      $43,839      $46,901     $250,234     $253,840

Long-term Assets
Long-term Assets                     $0               $0           $0           $0           $0            $0           $0           $0           $0           $0           $0    $600,000     $600,000
Accumulated                   ($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)
Depreciation
Total Long-term                 $15,000         $15,000      $15,000      $15,000      $15,000       $15,000      $15,000      $15,000      $15,000      $15,000      $15,000     $615,000     $615,000
Assets
Total Assets                    $25,116         $43,735      $44,725      $46,012      $47,492       $49,241      $51,248      $53,515      $56,044      $58,839      $61,901     $865,234     $868,840

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

Current Liabilities
Accounts Payable                     $0         $17,980      $18,084      $18,203      $18,296       $18,404      $18,513      $18,623      $18,735      $18,847      $18,960      $19,075      $19,191
Current Borrowing               $13,000         $13,000      $13,000      $13,000      $13,000       $13,000      $13,000      $13,000      $13,000      $13,000      $13,000      $13,000      $13,000
Other Current                  $275,000        $275,000     $275,000     $275,000     $275,000      $275,000     $275,000     $275,000     $275,000     $275,000     $275,000     $275,000     $275,000
Liabilities
Subtotal Current               $288,000        $305,980     $306,084     $306,203     $306,296      $306,404     $306,513     $306,623     $306,735     $306,847     $306,960     $307,075     $307,191
Liabilities

Long-term Liabilities                $0              $0           $0           $0           $0            $0           $0           $0           $0           $0           $0           $0           $0
Total Liabilities              $288,000        $305,980     $306,084     $306,203     $306,296      $306,404     $306,513     $306,623     $306,735     $306,847     $306,960     $307,075     $307,191

Paid-in Capital                      $0               $0           $0           $0           $0            $0           $0           $0           $0           $0           $0     $800,000     $800,000
Retained Earnings            ($216,387)       ($262,884)   ($262,884)   ($262,884)   ($262,884)    ($262,884)   ($262,884)   ($262,884)   ($262,884)   ($262,884)   ($262,884)   ($262,884)   ($262,884)
Earnings                      ($46,497)            $639        $1,525       $2,693       $4,080        $5,721       $7,619       $9,775      $12,193      $14,876      $17,825      $21,043      $24,534
Total Capital                ($262,884)       ($262,245)   ($261,359)   ($260,191)   ($258,804)    ($257,163)   ($255,265)   ($253,109)   ($250,691)   ($248,008)   ($245,059)     $558,159     $561,650
Total Liabilities and           $25,116          $43,735      $44,725      $46,012      $47,492       $49,241      $51,248      $53,515      $56,044      $58,839      $61,901     $865,234     $868,840
Capital

Net Worth                    ($262,884)       ($262,245)   ($261,359)   ($260,191)   ($258,804)    ($257,163)   ($255,265)   ($253,109)   ($250,691)   ($248,008)   ($245,059)    $558,159     $561,650




                                                                                                                                                                                              Page 5
                                                               Appendix


								
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