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Business Plan for Gas Energy Company

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Business Plan for Gas Energy Company Powered By Docstoc
					This Business Plan for a Gas Energy 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.
                                       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 .......................................................................................................................................... 2
  1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
  2.1 Company Ownership ............................................................................................................... 3
  2.2 Company History ...................................................................................................................... 3
    Table: Past Performance ........................................................................................................... 4
    Chart: Past Performance ........................................................................................................... 5
3.0 Products ........................................................................................................................................... 5
4.0 Market Analysis Summary ........................................................................................................ 5
  4.1 Market Segmentation ............................................................................................................. 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 ............................................................................ 7
  5.1 SWOT Analysis .......................................................................................................................... 7
    5.1.1 Strengths ............................................................................................................................. 7
    5.1.2 Weaknesses ........................................................................................................................ 7
    5.1.3 Opportunities ..................................................................................................................... 7
    5.1.4 Threats ................................................................................................................................. 8
  5.2 Competitive Edge ..................................................................................................................... 8
  5.3 Marketing Strategy .................................................................................................................. 8
  5.4 Sales Strategy ........................................................................................................................... 9
    5.4.1 Sales Forecast.................................................................................................................... 9
      Table: Sales Forecast ............................................................................................................. 9
      Chart: Sales Monthly ............................................................................................................ 10
      Chart: Sales by Year ............................................................................................................. 10
  5.5 Milestones.................................................................................................................................. 11
    Table: Milestones ....................................................................................................................... 11
6.0 Management Summary ............................................................................................................ 11
  6.1 Personnel Plan ......................................................................................................................... 11
    Table: Personnel ......................................................................................................................... 12
7.0 Financial Plan ............................................................................................................................... 12
  7.1 Important Assumptions ....................................................................................................... 12
  7.2 Break-even Analysis .............................................................................................................. 13
    Table: Break-even Analysis.................................................................................................... 13
    Chart: Break-even Analysis ................................................................................................... 13
  7.3 Projected Profit and Loss..................................................................................................... 14
    Table: Profit and Loss ............................................................................................................... 14
    Chart: Profit Monthly ................................................................................................................ 15
    Chart: Profit Yearly .................................................................................................................... 15
    Chart: Gross Margin Monthly................................................................................................. 16

                                                                                                                                                Page 1
                                                             Table of Contents



   Chart: Gross Margin Yearly .................................................................................................... 16
 7.4 Projected Cash Flow .............................................................................................................. 17
   Table: Cash Flow ........................................................................................................................ 17
   Chart: Cash .................................................................................................................................. 18
 7.5 Projected Balance Sheet ...................................................................................................... 18
   Table: Balance Sheet ................................................................................................................ 18
   Table: Balance Sheet (Continued) ...................................................................................... 19
 7.6 Business Ratios ....................................................................................................................... 19
   Table: Ratios ................................................................................................................................ 20

APPENDIX
Table:    Sales Forecast ......................................................................................................................... 1
Table:    Personnel ................................................................................................................................... 2
Table:    Profit and Loss ......................................................................................................................... 3
Table:    Cash Flow .................................................................................................................................. 4
Table:    Balance Sheet .......................................................................................................................... 6




                                                                                                                                               Page 2
                                        [Company Name]


1.0 Executive Summary

   Company: [Company Name]
   Contact: [Name]
   Address: [Address]
   [City, State ZIP]
   Direct Phone: XXX-XXX-XXXX
   Cell: XXX-XXX-XXXX
   Fax: XXX-XXX-XXXX

   Introduction
   [Company Name] produces natural gas, which is sold to various industrial businesses
   throughout the eastern half of the US. The Company strives to be an asset to its community as
   well as to its nation. By providing a quality product on a national scale, the Company is fulfilling
   the needs of residents and businesses in need of its services.

   [Company Name] also has a strong environmental focus, in which it will install solar electric and
   geothermal heating & cooling at the office to reduce electric costs and conserve energy. With
   adequate funding, [Company Name] will be able to expand its Company and continue to be a
   positive resource. Furthermore, [Company Name] will be able to build on its exposure through
   effective marketing and advertising.

   Location
   [Company Name] is located in Kilgore, Texas, which is in Gregg and Rusk County.

   The Company
   [Company Name] is a family owned Company that produces natural gas. The Company
   operates in both Texas and Oklahoma. The owner of [Company Name] is [Name], who's been
   in the industry since 1954.

   Our Services
   [Company Name] produces quality, highly demanded gas in a safe and dependable manner.

   The Market
   [Company Name]'s target market strategy is based on becoming a destination for companies
   throughout the US in need of gas products.

   Financial Considerations
   The current financial plan for [Company Name] is to obtain funding in the amount of $594,000.
   The funding will be used to update existing production, install solar electric & geothermal
   heating/cooling at the office and at home, hire new employee(s), and replace an eight year-old
   truck.

   The major focus for grant funding is as follows:

   1. The Company is a family owned business
   2. It provides a well needed service, producing gas that serves the eastern part of the US.
   3. It has a strong environmental focus in which it uses solar energy methods to conserve
   energy.
   4. Hire employees; the Company will look to hire veterans, minorities and the unemployed.




                                                                            [Name] XXX-XXX-XXXX
                                     [Company Name]


   Chart: Highlights




1.1 Objectives

   [Company Name] has three main objectives:

   1. Update equipment and production to meet all the new standards for air and pollution
      control.
   2. Install solar electric and geothermal heating and cooling materials.
   3. Increase the Company's personnel.

1.2 Mission

   [Company Name]'s mission is to produce quality natural gas as emission free as possible, at a
   reasonable cost and be able to sell it to various industries.

1.3 Keys to Success

   [Company Name]'s key to success involves satisfying its customers, producing a quality
   product, and delivering excellent service.




                                                                       [Name] XXX-XXX-XXXX
                                      [Company Name]



2.0 Company Summary

   [Company Name] is headquartered in Kilgore, TX.

   Contact: [Name]
   Address: [Address]
   [City, State ZIP]
   Direct Phone: XXX-XXX-XXXX
   Cell: XXX-XXX-XXXX
   Fax: XXX-XXX-XXXX

   [Company Name] is a family owned, natural gas production Company located in the states of
   Texas and Oklahoma. The owner of the Company is [Name], who's been in the industry since
   1954. [Name] runs the gas production business with the assistance of his son, Russell Miller,
   who mainly handles the maintenance of the compressors as well as other hands on technical
   duties.

2.1 Company Ownership

   [Company Name] was established in 1983 and was incorporated in Texas as an S-Corp. The
   owner of the Company is [Name], who has 100% ownership of the natural gas production
   Company.

2.2 Company History

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

   Sales for 2008, 2009, 2010 were $870,664, $539,287 and $838,814, respectively. The gross
   profit for this period was $546,172, $269,895 and $399,622, respectively. The earnings for this
   period were $180,803, ($88,248) and ($17,692), respectively.




                                                                         [Name] XXX-XXX-XXXX
                                            [Company Name]



Table: Past Performance

Past Performance
                                                       2008        2009           2010
Sales                                              $870,664    $539,287       $838,814
Gross Margin                                       $546,172    $269,895       $399,622
Gross Margin %                                      62.73%      50.05%         47.64%
Operating Expenses                                 $689,861    $627,535       $856,506
Collection Period (days)                                  0           0              0

Balance Sheet
                                                       2008        2009           2010

Current Assets
Cash                                                     $0          $0        $72,669
Accounts Receivable                                      $0          $0        $46,424
Other Current Assets                                     $0          $0       $369,742
Total Current Assets                                     $0          $0       $488,835

Long-term Assets
Long-term Assets                                         $0          $0       $492,573
Accumulated Depreciation                                             $0       $392,753
Total Long-term Assets                                   $0          $0        $99,820

Total Assets                                             $0          $0       $588,655

Current Liabilities
Accounts Payable                                         $0          $0        $36,563
Current Borrowing                                        $0          $0             $0
Other Current Liabilities (interest free)                $0          $0             $0
Total Current Liabilities                                $0          $0        $36,563

Long-term Liabilities                                    $0          $0       $159,947
Total Liabilities                                        $0          $0       $196,510

Paid-in Capital                                           $0          $0        $10,000
Retained Earnings                                 ($180,803)     $88,248      $399,837
Earnings                                            $180,803   ($88,248)      ($17,692)
Total Capital                                             $0          $0      $392,145

Total Capital and Liabilities                            $0          $0       $588,655

Other Inputs
Payment Days                                             60          60             60




                                                                       [Name] XXX-XXX-XXXX
                                       [Company Name]


   Chart: Past Performance




3.0 Products

   [Company Name] produces natural gas, which is sold to various industrial businesses
   throughout the eastern half of the US through a marketing agent. Primary focus will be placed
   on the production processes to ensure the highest quality and the most efficient manufacturing
   process possible. [Company Name] guarantees that its final product is suitable for sale and
   exportation.

4.0 Market Analysis Summary

   About 71 percent of the onshore oil and gas extraction workforce is concentrated in California,
   Louisiana, Oklahoma, and Texas. [Company Name] operates in both Texas and Oklahoma. The
   Company produces natural gas, which is sold to various industrial businesses throughout the
   eastern half of the US. The Company's industry does not have any seasonality that affects it;
   therefore, [Company Name] has the services and professionalism necessary to flourish
   within its market. By delivering superior customer service, [Company Name]'s potential is
   excellent.

4.1 Market Segmentation

   [Company Name]'s target market strategy is based on becoming a destination for companies
   throughout the US in need of gas products. These companies are heavily dependent on
   [Company Name]'s gas production services and products for their business to function
   effectively. [Company Name], ultimate goal is to satisfy the needs of its clientele. Furthermore,
   the Company's marketing strategy is based on superior performance in the following areas:

      Producing a quality product
      Having a knowledgeable staff
      Demonstrating excellent customer service


                                                                          [Name] XXX-XXX-XXXX
                                        [Company Name]


   Customers within the oil and gas extracting industry want exceptional customer service as well
   as quality products. [Company Name]'s customers appreciate the valuable product that
   the industry offers. The Company is beneficial to its customers because it delivers the
   dedication and dependability that they desire.

4.2 Target Market Segment Strategy

   [Company Name]'s target market segments consist of businesses that rely on natural gas
   production. The Company knows that satisfied customers aid in referring its business to other
   clients who need its services.

   Currently, [Company Name]'s choice of target markets is based         on an in-depth understanding
   of the customer's needs. [Company Name]'s exceptional                  service, quality equipment
   and reliability will allow the Company to effectively compete          and establish a reputation
   within its area. However strengthening its marketing strategy          will improve the Company's
   profitability levels as well as provide more business opportunities   for the Company.

4.3 Industry Analysis

   Industries in the Oil and Gas Extraction subsector operate and/or develop oil and gas field
   properties. Such activities may include exploration for crude petroleum and natural gas;
   drilling, completing, and equipping wells; operating separators, emulsion breakers, desalting
   equipment, and field gathering lines for crude petroleum and natural gas; and all other
   activities in the preparation of oil and gas up to the point of shipment from the producing
   property. This subsector includes the production of crude petroleum, the mining and extraction
   of oil from oil shale and oil sands, and the production of natural gas, sulfur recovery from
   natural gas, and recovery of hydrocarbon liquids.

   While some of these functions are done by the large oil companies, most are done by
   contractors working in the support activities for mining subsector, which is included in this
   industry. Oil and natural gas furnish about three-fifths of our energy needs; fueling homes,
   workplaces, factories, and transportation systems. In addition, they constitute the raw
   materials for plastics, chemicals, medicines, fertilizers, and synthetic fibers. Natural gas often is
   found in separate deposits and is sometimes mixed with oil.

   As simple as it may be, [Company Name]'s method of executing exceptional service will have
   an important effect on the bottom line: People want to give their business to those who
   appreciate it. Skillful use of advertising, producing a quality product, as well as a practice of
   strong communication will bring the support the Company desires.

4.3.1 Competition and Buying Patterns

   [Company Name] exists in a competitive industry. In fact, everyone that owns a well and
   markets there gas is a competitor.

   The Company competes nationally with other gas production companies. Most of these
   companies are located in California, Louisiana, Oklahoma, and Texas; therefore, the company
   excels by keeping its equipment updated and current to ensure a quality product to its
   customer base.

   Ultimately, it is [Company Name]'s focus to fulfill client's demands because it aids the Company
   in generating future business. If clients are happy, they will recommend the Company to others


                                                                             [Name] XXX-XXX-XXXX
                                        [Company Name]


   who need and rely on the service. Furthermore, [Company Name] knows that the proper image
   and visibility aids the Company in getting its name out.

5.0 Strategy and Implementation Summary

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

5.1 SWOT Analysis



                      Strengths
                          Weaknesses
                               Opportunities
                                 Threats

5.1.1 Strengths

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

      Long-standing business with an owner who has 56 years of industry experience and 27
       years of operating own business
      Knowledgeable and hardworking staff
      Clear vision of the market need

5.1.2 Weaknesses

   [Company Name] main weaknesses include:

      Limited cash flow to grow business to its potential
      Lack of staff needed to handle workload
      Cost factors associated with keeping up with state-of-the-art equipment.

5.1.3 Opportunities

   Opportunities for [Company Name] include:

      Growing market with a significant percentage of its target market still not knowing the
       Company exists.
      Strategic alliances offering sources for referrals and joint marketing activities to extend the
       Company's reach.


                                                                            [Name] XXX-XXX-XXXX
                                      [Company Name]


5.1.4 Threats

   [Company Name] biggest threat involves:

      Downturn in the economy, which can impact sales.
      Expansion of national companies into the local market.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.

5.2 Competitive Edge

   [Company Name] has a major advantage because it's been in business since 1983 and has
   been working with marketing agents that sell its product to various industrial businesses
   throughout the eastern half of the US. Additionally, the Company is very energy sufficient and
   environmentally friendly. It uses solar electric and geothermal heating and cooling materials.
   Its hardworking and dedicated staff definitely aids in the Company's overall success. By
   continuing to build a business based on long-standing relationships with satisfied clients,
   [Company Name] will simultaneously build defenses against future competition. The longer the
   relationship stands, the more the Company helps its customers understand what they offer
   them and why they need it.

5.3 Marketing Strategy

   [Company Name] marketing strategy involves working with marketing agents that sell its
   products to the industries that desire its product. [Company Name] serves it market by
   providing quality products and an excellent service to its customers. It knows what each
   customer needs and aims to satisfy them. Additionally, the Company has an advantage because
   the owner, [Name] is a superior business man that has a hands-on approach in running his
   business. [Name] has excellent work ethics and sufficient industry experience; thus he offers
   an in-depth knowledge of the gas production industry and knows the ins and outs of the
   business. Furthermore, the owner and the Company's level of integrity help in building and
   maintaining a strong reputation within its community.




                                                                        [Name] XXX-XXX-XXXX
                                       [Company Name]


5.4 Sales Strategy

   [Company Name] utilizes a marketing agent which sells its product to various industrial
   businesses throughout the eastern half of the US. Additionally, the Company has an
   excellent image and work ethics. It makes an effort to stay in line with the natural gas
   production industry in its area that are offering similar services; therefore paying attention to
   industry standards, rates, as well as having the latest equipment is important. Ultimately,
   keeping customers happy is an implicit part of building a relationship that will encourage repeat
   business.

5.4.1 Sales Forecast

   The chart and table below shows [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 includes gas production services. [Company Name]'s
   projections for 2011 is $836,237. Sales projections for 2012 and 2013 are based on a 10%
   increase.

Table: Sales Forecast

Sales Forecast
                                                        2011              2012             2013
Sales
Gas Production                                      $836,237          $919,861        $1,011,847

Total Sales                                         $836,237          $919,861        $1,011,847

Direct Cost of Sales                                    2011              2012             2013

Subtotal Direct Cost of Sales                             $0                $0                $0




                                                                          [Name] XXX-XXX-XXXX
                       [Company Name]


Chart: Sales Monthly




Chart: Sales by Year




                                        [Name] XXX-XXX-XXXX
                                             [Company Name]


5.5 Milestones

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

   1.    Obtain funding in the amount of $594,000 to improve business
   2.    Update existing production to meet all the new standards for air and pollution control.
   3.    Install Solar Electric and Geothermal heating & cooling at the office
   4.    Hire new employee
   5.    Replace 8 year-old truck
   6.    Install Solar Electric and Geothermal heating & cooling at the home

Table: Milestones

Milestones

Milestone                       Start Date       End Date      Budget      Manager
Obtain Funding                   6/1/2011       12/1/2011          $0       [Name]
Update Production                                            $225,000       [Name]
Install Solar Electric &                                     $195,000       [Name]
Geothermal
Heating/Cooling at the
office
Hire Employee                                                  $45,000       [Name]
Replace Truck                                                  $50,000       [Name]
Install Solar Electric &                                       $79,000       [Name]
Geothermal
Heating/Cooling at home

Totals                                                       $594,000


6.0 Management Summary

   [Name] is the sole owner of [Company Name] and has been a mechanical engineer since 1954.
   He established [Company Name] in 1983 in Kilgore, Texas. In addition to [Name]'s extensive
   knowledge of the gas production industry, he also has many years of managerial experience.
   [Name] handles all aspects of the business with a small team of workers. His strong managerial
   skills and leadership qualities aids him in running his business effectively.

6.1 Personnel Plan

   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 and manager of [Company Name]. Currently the Company has one
   salaried employee and outsources two 1099 contractors. Upon the receipt of grant funding, the
   Company will hire another salaried employee, who will receive a salary of $45,000. Additional
   personnel will be added as needed.




                                                                             [Name] XXX-XXX-XXXX
                                       [Company Name]


Table: Personnel

Personnel Plan
                                                              2011             2012             2013
[Name]                                                     $84,996          $86,696          $88,430
[Name] Compressor Maintenance                              $57,996          $59,156          $60,339
ALSTAT Services                                           $165,000         $168,300         $171,666
New Employee                                                    $0          $45,000          $45,900
Total People                                                     2                3                3

Total Payroll                                             $307,992         $359,152         $366,335

7.0 Financial Plan

   The current financial plan is based on the assumption of achieving desired levels of funding.
   Additionally, [Company Name] plans to obtain funding in the amount of $594,000. The funding
   will be used to update existing production, install solar electric & geothermal heating/cooling at
   the office and at the home, hire new employee(s), and replace 8 year-old truck.

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

      Important Assumptions
      Break-even Analysis
      Profit & Loss
      Cash Flow
      Balance Sheet
      Business Ratios

7.1 Important Assumptions

   The table below presents the assumptions used in the financial calculations of this
   grant plan. [Company Name]'s is an S-Corp business and is taxed accordingly. The Company's
   expenses assume a 3% increase due to inflation & other cost variables.




                                                                           [Name] XXX-XXX-XXXX
                                     [Company Name]



7.2 Break-even Analysis

   For the break-even analysis, the monthly revenue needed to break-even is $62,127. 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                      $62,127

Assumptions:
Average Percent Variable Cost                       0%
Estimated Monthly Fixed Cost                    $62,127




   Chart: Break-even Analysis




                                                                      [Name] XXX-XXX-XXXX
                                      [Company Name]


7.3 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 2011, 2012 and 2013 are $836,237, $919,861 and $1,011,847, respectively. The
    net profit for the same period is $11,331, $5,618 and $31,105, respectively; while the
    percentages of the net profit sales for this period are 1.36%, 0.61% and 3.07%, respectively.

    Once the Company receives funding to add the new assets, the depreciation of the new fixed
    assets will be over a 7 year period, while the new truck will be depreciated over a 5 year
    period. The Company will be incorporating solar energy methods and utilize solar heating and
    power to help reduce its operating expenses.

    The miscellaneous expenses are 20% of the operating cost.

Table: Profit and Loss

Pro Forma Profit and Loss
                                                   2011             2012              2013
Sales                                          $836,237         $919,861        $1,011,847
Direct Cost of Sales                                 $0               $0                $0
Other Costs of Sales                            $58,537          $59,122           $82,771
Total Cost of Sales                             $58,537          $59,122           $82,771

Gross Margin                                   $777,700         $860,739         $929,076
Gross Margin %                                  93.00%           93.57%           91.82%


Expenses
Payroll                                        $307,992         $359,152         $366,335
Marketing/Promotion                                $400             $600             $780
Depreciation                                    $21,072          $42,143          $42,143
Rent                                             $2,616           $2,694           $2,775
Building Maintenance                            $10,812          $11,136          $11,470
Utilities                                        $2,280           $2,348           $2,419
Insurance                                       $24,420          $25,153          $25,907
Payroll Taxes                                   $46,199          $53,873          $54,950
Medical Expenses                                $32,880          $33,866          $34,882
Compressor Maintenance                          $30,276          $31,184          $32,120
Compressor Parts                                $46,212          $47,598          $49,026
Compressor Oil                                  $53,112          $54,705          $56,347
Other                                          $167,247         $172,265         $189,491

Total Operating Expenses                       $745,518         $836,719         $868,646

Profit Before Interest and Taxes                $32,182          $24,020          $60,430
EBITDA                                          $53,254          $66,163         $102,573
 Interest Expense                               $15,128          $13,595          $11,996
 Taxes Incurred                                  $5,116           $3,127          $14,530

Net Profit                                      $11,938           $7,297          $33,904
Net Profit/Sales                                 1.43%            0.79%            3.35%




                                                                           [Name] XXX-XXX-XXXX
                        [Company Name]


Chart: Profit Monthly




Chart: Profit Yearly




                                         [Name] XXX-XXX-XXXX
                              [Company Name]


Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




                                               [Name] XXX-XXX-XXXX
                                            [Company Name]


7.4 Projected Cash Flow

    [Company Name] has applied for $594,000 in funding. The Company forecast that it
    will receive funding in the second quarter of 2011. During this period, [Company Name] will use
    the money to update existing production, install solar electric & geothermal heating/cooling at
    the office, hire new employee(s), replace 8 year-old truck, and install solar electric &
    geothermal heating/cooling at home. These purchases are reflected in the purchase of long-
    term assets. [Company Name]'s cash plan is based on the assumption that the Company
    meets its forecast objectives and collects receivables within 60 days.

    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
                                                             2011            2012             2013
Cash Received

Cash from Operations
Cash Sales                                              $627,178          $689,896         $758,885
Cash from Receivables                                   $217,735          $226,190         $248,809
Subtotal Cash from Operations                           $844,913          $916,086       $1,007,694

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                                  $594,000               $0               $0
Subtotal Cash Received                                 $1,438,913         $916,086       $1,007,694

Expenditures                                                 2011            2012             2013

Expenditures from Operations
Cash Spending                                           $307,992          $359,152         $366,335
Bill Payments                                           $488,773          $512,272         $564,682
Subtotal Spent on Operations                            $796,765          $871,423         $931,017

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                               $0               $0               $0
Principal Repayment of Current Borrowing                       $0               $0               $0
Other Liabilities Principal Repayment                          $0               $0               $0
Long-term Liabilities Principal Repayment                 $15,996          $15,996          $15,996
Purchase Other Current Assets                                  $0               $0               $0
Purchase Long-term Assets                                $275,000               $0               $0
Dividends                                                      $0               $0               $0
Subtotal Cash Spent                                    $1,087,761         $887,419         $947,013

Net Cash Flow                                           $351,152           $28,666          $60,682
Cash Balance                                            $423,821          $452,487         $513,169




                                                                          [Name] XXX-XXX-XXXX
                                    [Company Name]


   Chart: Cash




7.5 Projected Balance Sheet

   [Company Name]'s net worth is $998,083, $1,005,380 and $1,039,284 for 2011, 2012,
   and 2013 respectively. The Company's Total Assets for this same period will be $1,185,059,
   $1,175,357 and $1,198,048, respectively.

Table: Balance Sheet

Pro Forma Balance Sheet
                                                  2011             2012            2013
Assets

Current Assets
Cash                                           $423,821        $452,487        $513,169
Accounts Receivable                             $37,748         $41,523         $45,675
Other Current Assets                           $369,742        $369,742        $369,742
Total Current Assets                           $831,311        $863,752        $928,586

Long-term Assets
Long-term Assets                               $767,573       $767,573         $767,573
Accumulated Depreciation                       $413,825       $455,968         $498,111
Total Long-term Assets                         $353,748       $311,605         $269,462
Total Assets                                 $1,185,059      $1,175,357       $1,198,048




                                                                     [Name] XXX-XXX-XXXX
                                    [Company Name]



Table: Balance Sheet (Continued)

Liabilities and Capital                          2011            2012           2013

Current Liabilities
Accounts Payable                               $43,025        $42,022         $46,805
Current Borrowing                                   $0             $0              $0
Other Current Liabilities                           $0             $0              $0
Subtotal Current Liabilities                   $43,025        $42,022         $46,805

Long-term Liabilities                         $143,951       $127,955        $111,959
Total Liabilities                             $186,976       $169,977        $158,764

Paid-in Capital                               $604,000       $604,000       $604,000
Retained Earnings                             $382,145       $394,083       $401,380
Earnings                                       $11,938          $7,297        $33,904
Total Capital                                 $998,083      $1,005,380     $1,039,284
Total Liabilities and Capital               $1,185,059      $1,175,357     $1,198,048

Net Worth                                     $998,083      $1,005,380     $1,039,284


7.6 Business Ratios

    The table below presents the projected business ratios from the natural gas production
    market as a reference with sales from $500,000 -$999,999.




                                                                    [Name] XXX-XXX-XXXX
                                             [Company Name]



Table: Ratios

Ratio Analysis
                                                    2011         2012       2013    Industry Profile
Sales Growth                                      -0.31%       10.00%     10.00%             1.85%

Percent of Total Assets
Accounts Receivable                                3.19%        3.53%       3.81%            9.39%
Other Current Assets                              31.20%       31.46%      30.86%           50.35%
Total Current Assets                              70.15%       73.49%      77.51%           60.47%
Long-term Assets                                  29.85%       26.51%      22.49%           39.53%
Total Assets                                     100.00%      100.00%     100.00%          100.00%

Current Liabilities                                3.63%        3.58%      3.91%            13.74%
Long-term Liabilities                             12.15%       10.89%      9.35%            40.40%
Total Liabilities                                 15.78%       14.46%     13.25%            54.14%
Net Worth                                         84.22%       85.54%     86.75%            45.86%

Percent of Sales
Sales                                            100.00%      100.00%     100.00%          100.00%
Gross Margin                                      93.00%       93.57%      91.82%           56.10%
Selling, General & Administrative Expenses        91.57%       92.78%      88.47%            5.04%
Advertising Expenses                               0.05%        0.07%       0.08%            0.04%
Profit Before Interest and Taxes                   3.85%        2.61%       5.97%           17.27%

Main Ratios
Current                                             19.32        20.55      19.84              1.28
Quick                                               19.32        20.55      19.84              1.23
Total Debt to Total Assets                        15.78%       14.46%     13.25%            54.14%
Pre-tax Return on Net Worth                        1.71%        1.04%      4.66%            17.70%
Pre-tax Return on Assets                           1.44%        0.89%      4.04%             8.12%

Additional Ratios                                   2011         2012       2013
Net Profit Margin                                  1.43%        0.79%      3.35%                n.a
Return on Equity                                   1.20%        0.73%      3.26%                n.a

Activity Ratios
Accounts Receivable Turnover                         5.54         5.54       5.54               n.a
Collection Days                                        60           63         63               n.a
Accounts Payable Turnover                           11.51        12.17      12.17               n.a
Payment Days                                           29           30         28               n.a
Total Asset Turnover                                 0.71         0.78       0.84               n.a

Debt Ratios
Debt to Net Worth                                    0.19         0.17       0.15               n.a
Current Liab. to Liab.                               0.23         0.25       0.29               n.a

Liquidity Ratios
Net Working Capital                              $788,286     $821,730   $881,781               n.a
Interest Coverage                                    2.13         1.77       5.04               n.a

Additional Ratios
Assets to Sales                                      1.42         1.28       1.18               n.a
Current Debt/Total Assets                             4%           4%         4%                n.a
Acid Test                                           18.44        19.57      18.86               n.a
Sales/Net Worth                                      0.84         0.91       0.97               n.a
Dividend Payout                                      0.00         0.00       0.00               n.a




                                                                         [Name] XXX-XXX-XXXX
                                                                  Appendix

Table: Sales Forecast

Sales Forecast
                                   Jan       Feb       Mar       Apr       May       Jun        Jul      Aug       Sep       Oct       Nov       Dec
Sales
Gas Production                  $62,350   $63,597   $64,869   $66,166   $67,489   $68,839   $70,216   $71,620   $73,052   $74,513   $76,003   $77,523

Total Sales                     $62,350   $63,597   $64,869   $66,166   $67,489   $68,839   $70,216   $71,620   $73,052   $74,513   $76,003   $77,523

Direct Cost of Sales               Jan       Feb       Mar       Apr       May       Jun        Jul      Aug       Sep       Oct       Nov       Dec


Subtotal Direct Cost of Sales       $0        $0        $0        $0         $0       $0        $0        $0        $0        $0        $0        $0




                                                                                                                                              Page 1
                                                     Appendix

Table: Personnel

Personnel Plan
                        Jan       Feb       Mar       Apr      May        Jun        Jul       Aug       Sep       Oct       Nov      Dec
[Name]               $7,083    $7,083    $7,083    $7,083    $7,083    $7,083    $7,083     $7,083    $7,083    $7,083    $7,083    $7,083
[Name] Compressor    $4,833    $4,833    $4,833    $4,833    $4,833    $4,833    $4,833     $4,833    $4,833    $4,833    $4,833    $4,833
Maintenance
ALSTAT Services     $13,750   $13,750   $13,750   $13,750   $13,750   $13,750   $13,750    $13,750   $13,750   $13,750   $13,750   $13,750
New Employee             $0        $0        $0        $0        $0        $0        $0         $0        $0        $0        $0        $0
Total People              2         2         2         2         2         2         2          2         2         2         2         2

Total Payroll       $25,666   $25,666   $25,666   $25,666   $25,666   $25,666   $25,666    $25,666   $25,666   $25,666   $25,666   $25,666




                                                                                                                                   Page 2
                                                                                 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
                                            Jan        Feb       Mar       Apr        May        Jun        Jul       Aug       Sep       Oct       Nov      Dec
Sales                                   $62,350    $63,597   $64,869   $66,166     $67,489   $68,839   $70,216    $71,620   $73,052   $74,513   $76,003   $77,523
Direct Cost of Sales                         $0         $0        $0        $0          $0        $0        $0         $0        $0        $0        $0        $0
Other Costs of Sales               7%    $4,365     $4,452    $4,541    $4,632      $4,724    $4,819    $4,915     $5,013    $5,114    $5,216    $5,320    $5,427
Total Cost of Sales                      $4,365     $4,452    $4,541    $4,632      $4,724    $4,819    $4,915     $5,013    $5,114    $5,216    $5,320    $5,427

Gross Margin                            $57,986    $59,145   $60,328   $61,534     $62,765   $64,020   $65,301    $66,607   $67,938   $69,297   $70,683   $72,096
Gross Margin %                          93.00%     93.00%    93.00%    93.00%      93.00%    93.00%    93.00%     93.00%    93.00%    93.00%    93.00%    93.00%


Expenses
Payroll                                 $25,666    $25,666   $25,666   $25,666     $25,666   $25,666   $25,666    $25,666   $25,666   $25,666   $25,666   $25,666
Marketing/Promotion                        $100         $0        $0      $100          $0        $0      $100         $0        $0      $100        $0        $0
Depreciation                                 $0         $0        $0        $0          $0        $0    $3,512     $3,512    $3,512    $3,512    $3,512    $3,512
Rent                                       $218       $218      $218      $218        $218      $218      $218       $218      $218      $218      $218      $218
Building Maintenance                       $901       $901      $901      $901        $901      $901      $901       $901      $901      $901      $901      $901
Utilities                                  $190       $190      $190      $190        $190      $190      $190       $190      $190      $190      $190      $190
Insurance                                $2,035     $2,035    $2,035    $2,035      $2,035    $2,035    $2,035     $2,035    $2,035    $2,035    $2,035    $2,035
Payroll Taxes                  15%       $3,850     $3,850    $3,850    $3,850      $3,850    $3,850    $3,850     $3,850    $3,850    $3,850    $3,850    $3,850
Medical Expenses                         $2,740     $2,740    $2,740    $2,740      $2,740    $2,740    $2,740     $2,740    $2,740    $2,740    $2,740    $2,740
Compressor                               $2,523     $2,523    $2,523    $2,523      $2,523    $2,523    $2,523     $2,523    $2,523    $2,523    $2,523    $2,523
Maintenance
Compressor Parts                         $3,851     $3,851    $3,851    $3,851      $3,851    $3,851    $3,851     $3,851    $3,851    $3,851    $3,851    $3,851
Compressor Oil                           $4,426     $4,426    $4,426    $4,426      $4,426    $4,426    $4,426     $4,426    $4,426    $4,426    $4,426    $4,426
Other                          20%      $12,470    $12,719   $12,974   $13,233     $13,498   $13,768   $14,043    $14,324   $14,610   $14,903   $15,201   $15,505

Total Operating Expenses                $58,970    $59,119   $59,374   $59,733     $59,898   $60,168   $64,055    $64,236   $64,522   $64,915   $65,113   $65,417

Profit Before Interest and Taxes         ($984)        $26      $954    $1,801      $2,867    $3,853    $1,246     $2,371    $3,416    $4,383    $5,570    $6,680
EBITDA                                   ($984)        $26      $954    $1,801      $2,867    $3,853    $4,758     $5,883    $6,928    $7,895    $9,082   $10,192
 Interest Expense                        $1,322     $1,311    $1,300    $1,288      $1,277    $1,266    $1,255     $1,244    $1,233    $1,222    $1,211    $1,200
 Taxes Incurred                          ($692)     ($385)    ($104)      $154        $477      $776       ($3)      $338      $655      $948    $1,308    $1,644

Net Profit                              ($1,614)    ($899)    ($242)     $359       $1,113    $1,810      ($7)      $789     $1,528    $2,213    $3,052    $3,836
Net Profit/Sales                         -2.59%    -1.41%    -0.37%     0.54%       1.65%     2.63%    -0.01%      1.10%     2.09%     2.97%     4.02%     4.95%




                                                                                                                                                          Page 3
                                                                      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                          $46,763   $47,698   $48,652   $49,625   $50,617    $51,629   $52,662   $53,715   $54,789   $55,885   $57,002   $58,142
Cash from Receivables               $23,212   $23,732   $15,598   $15,910   $16,228    $16,553   $16,884   $17,221   $17,566   $17,917   $18,275   $18,641
Subtotal Cash from                  $69,975   $71,429   $64,250   $65,534   $66,845    $68,182   $69,546   $70,936   $72,355   $73,802   $75,277   $76,783
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                  $0        $0        $0        $0        $0         $0        $0        $0        $0        $0        $0        $0
Assets
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   $594,000        $0        $0        $0        $0        $0        $0
Subtotal Cash Received              $69,975   $71,429   $64,250   $65,534   $66,845   $662,182   $69,546   $70,936   $72,355   $73,802   $75,277   $76,783




                                                                                                                                                   Page 4
                                                                  Appendix

Table: Cash Flow (Continued)

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

Expenditures from
Operations
Cash Spending                  $25,666   $25,666   $25,666    $25,666   $25,666    $25,666    $25,666    $25,666    $25,666    $25,666    $25,666    $25,666
Bill Payments                  $37,840   $38,316   $38,851    $39,468   $40,160    $40,732    $41,352    $41,065    $41,676    $42,372    $43,144    $43,798
Subtotal Spent on              $63,506   $63,982   $64,517    $65,134   $65,826    $66,398    $67,018    $66,731    $67,342    $68,038    $68,810    $69,464
Operations

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           $1,333    $1,333    $1,333     $1,333    $1,333     $1,333     $1,333     $1,333     $1,333     $1,333     $1,333     $1,333
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   $275,000         $0         $0         $0         $0         $0         $0
Dividends                           $0        $0        $0         $0        $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent            $64,839   $65,315   $65,850    $66,467   $67,159   $342,731    $68,351    $68,064    $68,675    $69,371    $70,143    $70,797

Net Cash Flow                   $5,136    $6,114   ($1,600)    ($932)    ($314)   $319,451     $1,195     $2,872     $3,679     $4,431     $5,134     $5,986
Cash Balance                   $77,805   $83,919   $82,319    $81,387   $81,072   $400,523   $401,718   $404,590   $408,269   $412,700   $417,835   $423,821




                                                                                                                                                    Page 5
                                                                                                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                           $72,669         $77,805     $83,919     $82,319     $81,387     $81,072     $400,523     $401,718     $404,590     $408,269     $412,700     $417,835     $423,821
Accounts                       $46,424         $38,800     $30,967     $31,587     $32,218     $32,862      $33,520      $34,190      $34,874      $35,571      $36,282      $37,008      $37,748
Receivable
Other Current                $369,742         $369,742    $369,742    $369,742    $369,742    $369,742     $369,742     $369,742     $369,742     $369,742     $369,742     $369,742     $369,742
Assets
Total Current                $488,835         $486,346    $484,628    $483,648    $483,347    $483,677     $803,785     $805,650     $809,206     $813,583     $818,725     $824,585     $831,311
Assets

Long-term Assets
Long-term Assets             $492,573         $492,573    $492,573    $492,573    $492,573    $492,573     $767,573     $767,573     $767,573     $767,573     $767,573     $767,573     $767,573
Accumulated                  $392,753         $392,753    $392,753    $392,753    $392,753    $392,753     $392,753     $396,265     $399,777     $403,289     $406,801     $410,313     $413,825
Depreciation
Total Long-term                $99,820         $99,820     $99,820     $99,820     $99,820     $99,820     $374,820     $371,308     $367,796     $364,284     $360,772     $357,260     $353,748
Assets
Total Assets                 $588,655         $586,166    $584,448    $583,468    $583,167    $583,497    $1,178,605   $1,176,958   $1,177,002   $1,177,867   $1,179,497   $1,181,845   $1,185,059

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

Current Liabilities
Accounts Payable               $36,563         $37,022     $37,536     $38,130     $38,803     $39,353      $39,984      $39,676      $40,265      $40,934      $41,685      $42,314      $43,025
Current Borrowing                   $0              $0          $0          $0          $0          $0           $0           $0           $0           $0           $0           $0           $0
Other Current                       $0              $0          $0          $0          $0          $0           $0           $0           $0           $0           $0           $0           $0
Liabilities
Subtotal Current               $36,563         $37,022     $37,536     $38,130     $38,803     $39,353      $39,984      $39,676      $40,265      $40,934      $41,685      $42,314      $43,025
Liabilities

Long-term                    $159,947         $158,614    $157,281    $155,948    $154,615    $153,282     $151,949     $150,616     $149,283     $147,950     $146,617     $145,284     $143,951
Liabilities
Total Liabilities            $196,510         $195,636    $194,817    $194,078    $193,418    $192,635     $191,933     $190,292     $189,548     $188,884     $188,302     $187,598     $186,976

Paid-in Capital                $10,000         $10,000     $10,000     $10,000     $10,000     $10,000     $604,000     $604,000     $604,000     $604,000     $604,000     $604,000     $604,000
Retained Earnings            $399,837         $382,145    $382,145    $382,145    $382,145    $382,145     $382,145     $382,145     $382,145     $382,145     $382,145     $382,145     $382,145
Earnings                     ($17,692)         ($1,614)    ($2,514)    ($2,755)    ($2,396)    ($1,283)         $527         $520       $1,309       $2,837       $5,050       $8,102      $11,938
Total Capital                $392,145         $390,531    $389,631    $389,390    $389,749    $390,862     $986,672     $986,665     $987,454     $988,982     $991,195     $994,247     $998,083
Total Liabilities and        $588,655         $586,166    $584,448    $583,468    $583,167    $583,497    $1,178,605   $1,176,958   $1,177,002   $1,177,867   $1,179,497   $1,181,845   $1,185,059
Capital

Net Worth                    $392,145         $390,531    $389,631    $389,390    $389,749    $390,862     $986,672     $986,665     $987,454     $988,982     $991,195     $994,247     $998,083


                                                                                                                                                                                         Page 6
                                                               Appendix


				
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Description: This Business Plan for a Gas Energy 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.