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Business Plan for Legal Services for Homeowners in Foreclosure

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Business Plan for Legal Services for Homeowners in Foreclosure Powered By Docstoc
					Business Plan for Legal
Services for Homeowners in
Foreclosure
This Business Plan for a Legal Services Provider for Homeowners in Foreclosure 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.
                 [Company Name]




                                [Name], [Name] & [Name]

                                      [Address]
                                  [City, State ZIP]
                           XXX-XXX-XXXX T XXX-XXX-XXXX T
                                  XXX-XXX-XXXX F
                                   [Email] e-mail



                                   BUSINESS PLAN

© Copyright 2012 Docstoc Inc.                              1
                                   Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Company Name] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name]

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to [Company
Name]

Upon request, this document is to be immediately returned to [Company Name]




___________________
Signature




___________________
Name (typed or printed)




___________________
Date




                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          2
                                                               Table of Contents



1.0 Executive Summary .....................................................................................................................1
    Chart: Highlights ...........................................................................................................................2
  1.1 Objectives ....................................................................................................................................2
  1.2 Mission...........................................................................................................................................2
  1.3 Keys to Success .........................................................................................................................3
2.0 Company Summary......................................................................................................................3
  2.1 Company Ownership................................................................................................................3
  2.2 Start-up Summary....................................................................................................................3
    Table: Start-up ..............................................................................................................................4
    Chart: Start-up ..............................................................................................................................4
3.0 Services.............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................5
  4.1 Market Segmentation ..............................................................................................................5
    Table: Market Analysis................................................................................................................6
    Chart: Market Analysis (Pie).....................................................................................................6
  4.2 Target Market Segment Strategy .......................................................................................7
  4.3 Service Business Analysis ......................................................................................................7
    4.3.1 Competition and Buying Patterns ...............................................................................7
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 ......................................................................................................................8
    5.1.4 Threats ..................................................................................................................................8
  5.2 Competitive Edge ......................................................................................................................8
  5.3 Marketing Strategy...................................................................................................................8
  5.4 Sales Strategy ............................................................................................................................8
    5.4.1 Sales Forecast ....................................................................................................................8
      Table: Sales Forecast ..............................................................................................................9
      Chart: Sales Monthly .............................................................................................................10
      Chart: Sales by Year..............................................................................................................10
  5.5 Milestones ..................................................................................................................................10
    Table: Milestones ........................................................................................................................11
    Chart: Milestones ........................................................................................................................11
6.0 Management Summary ............................................................................................................11
  6.1 Personnel Plan ..........................................................................................................................11
    Table: Personnel..........................................................................................................................12
7.0 Financial Plan ................................................................................................................................12
  7.1 Start-up Funding .....................................................................................................................12
    Table: Start-up Funding ...........................................................................................................12
  7.2 Important Assumptions ........................................................................................................13
  7.3 Break-even Analysis ..............................................................................................................14
    Table: Break-even Analysis ....................................................................................................14
    Chart: Break-even Analysis ....................................................................................................14

BUSINESS PLAN                                                                                                                                  Page 1
                                                             Table of Contents



  7.4 Projected Profit and Loss .....................................................................................................15
    Table: Profit and Loss................................................................................................................15
    Chart: Profit Monthly .................................................................................................................16
    Chart: Profit Yearly.....................................................................................................................16
    Chart: Gross Margin Monthly .................................................................................................17
    Chart: Gross Margin Yearly.....................................................................................................17
  7.5 Projected Cash Flow...............................................................................................................18
    Table: Cash Flow .........................................................................................................................18
    Chart: Cash ...................................................................................................................................19
  7.6 Projected Balance Sheet ......................................................................................................20
    Table: Balance Sheet.................................................................................................................20
  7.7 Business Ratios ........................................................................................................................20
    Table: Ratios .................................................................................................................................21
Table: Sales Forecast ..........................................................................................................................2
Table: Personnel....................................................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow ...................................................................................................................................5
Table: Balance Sheet...........................................................................................................................6




BUSINESS PLAN                                                                                                                             Page 2
                                            [Company Name]


1.0 Executive Summary

  [Company Name] is a start-up company that will provide legal representation to homeowners who are
  in default on their owner occupied mortgages. [Company Name] plans to utilize grant funding to
  subsidize the legal fees involved in staying foreclosure. By nature, America is a litigious society, and
  while everyone has the same legal rights, attorneys are generally required for someone to
  enforce/assert their rights. The current real estate debacle has changed many rules pertaining to the
  foreclosure process, in favor of the homeowner. [Company Name] will utilize its legal expertise to
  helps these homeowners keep there homes.




  These legal strategies will be offered to homeowners at a reasonable rate. Those that are unable to
  pay will still receive the same service. This is where grant funding will intervene. [Company Name] will
  use an initial grant of $600,000 to cover the legal costs for this service. First time homebuyers will also
  be on the agenda of [Company Name]. Outside investors will team up with [Company Name] to assist
  the First Time homebuyer or those who have been displaced through foreclosure, to receive a new
  mortgage.




   BUSINESS PLAN                                                                                  Page 1
                                             [Company Name]




   Chart: Highlights


                                   Highlights
    $1,600,000

    $1,400,000

    $1,200,000

    $1,000,000                                                                     Sales

      $800,000                                                                     Gross Margin

                                                                                   Net Profit
      $600,000

      $400,000

      $200,000

              $0
                       Year 1               Year 2              Year 3



1.1 Objectives

   The objectives for the first three years of operation include:

   1. To create a service-based organization whose primary goal is to exceed 150 successful cases

   2. To serve the Nevada, Southern California, Arizona and Utah communities with foreclosure legal
   representation without demanding a fee

   3. To increase and continue to receive donations every year

1.2 Mission

   [Company Name] offers high-quality foreclosure prevention services to residential customers. Our aim
   is to provide our customers with fair mortgage rates at reasonable prices, after the legal process has
   been resolved. We will become friends and mentors to our customers as well as quality service
   providers. We exist to attract and maintain pre-foreclosure, first time homebuyers or previously
   displaced homeowners. When we adhere to these maxims, everything else will fall into place. Our
   services will exceed the expectations of our customers.




   BUSINESS PLAN                                                                                Page 2
                                           [Company Name]


1.3 Keys to Success

   Keys to success for the company will include:

   1. Maintaining a reputable and untarnished reputation in the community
   2. Quality legal advice and performance
   3. Reasonable interest rate pricing on the new mortgages




2.0 Company Summary

   [Company Name] is a new company that provides a high level of expertise. We will provide
   superior legal service to homeowners. Our responsibility as foreclosure prevention professionals is to
   determine what a customer's financial abilities are, not just to obtain a new rate to make a profit. We
   have access to specific legal, real estate, and financial knowledge, allowing us to arrange the most
   beneficial solution... whatever the homeowner's needs may be.

2.1 Company Ownership

   The company, [Company Name] is a c-corporation that is co-owned by [Name] a real estate
   professional, [Name] an attorney and [Name] a financial consultant and loan modification specialist.

2.2 Start-up Summary

   The start-up costs are outlined in the following chart. Start-up costs derive from office, equipment,
   computer station complete with software, office advertising and services, and expenses associated
   with opening our location. The start-up costs will be financed by grant funding. The assumptions are
   shown in the following table and chart.




   BUSINESS PLAN                                                                               Page 3
                                    [Company Name]


Table: Start-up



   Start-up

   Requirements

   Start-up Expenses
   Legal                                                                  $0
   Stationery etc.                                                        $0
   Insurance                                                              $0
   Rent                                                               $7,200
   Computer                                                          $12,000
   Other                                                             $13,000
   Total Start-up Expenses                                           $32,200

   Start-up Assets
   Cash Required                                                    $514,500
   Other Current Assets                                                   $0
   Long-term Assets                                                       $0
   Total Assets                                                     $514,500

   Total Requirements                                               $546,700




   Chart: Start-up

                                        Start-up

    $600,000


    $500,000


    $400,000


    $300,000


    $200,000


    $100,000


          $0
                    Expenses   Assets          Investment   Loans




   BUSINESS PLAN                                                           Page 4
                                           [Company Name]


3.0 Services

   Our personal goal is to break through the barriers that impede homeownership through foreclose for
   those who just wish to realize the American Dream. We provide potential and current homeowners the
   opportunity to negotiate the best mortgage loan for their current needs.




   We also will match first time homebuyers and post foreclosure 'victims' to investors who purchase
   homes from foreclosure bank REO departments. Once an affordable rate is determined and a set
   purchase price agreed upon the home is resold sold to our client. Based on what the investor was able
   to pay, the client would be offered a price that is 50% of the fair market value, for example, thus
   instant equity is transferred to the buyer.

4.0 Market Analysis Summary

   [Company Name] will provide foreclosure legal services to people who do not qualify for other types
   of mortgage rate reduction or re-modification because 1) they do not fit the economic profile, 2) the
   other organizations did not have the time, resources, or do not specialize in this particular legal
   technique.

   Our other segment will be 1st home buyers who are looking to purchase an owner occupied residence.
   In addition, those who have lost their homes through hardship, i.e. foreclosure or short sale would be
   our prime targets.

4.1 Market Segmentation

   [Company Name]'s market can be segmented into two different segments:

   People who do not qualify for other mortgage programs from the government, for economic reasons,
   but qualify for us: Pre-Foreclosure

   People who have been foreclosed and lost their home or those who desire to purchase a new home
   for the first time: Post-Foreclosure and 1st Time Homebuyers




   BUSINESS PLAN                                                                              Page 5
                                              [Company Name]


Table: Market Analysis



   Market Analysis

                                     Year 1       Year 2      Year 3      Year 4      Year 5

   Potential             Growth                                                                 CAGR
   Customers



   Pre-Foreclosure          5%     520,900      546,945     574,292     603,007     633,157     5.00%

   Post-Foreclosure         5%    1,500,000    1,575,000   1,653,750   1,736,438   1,823,260    5.00%

   1st Time                10%     400,000      440,000     484,000     532,400     585,640     10.00%
   Homebuyers



   Total                 5.88%    2,420,900    2,561,945   2,712,042   2,871,845   3,042,057    5.88%




   Chart: Market Analysis (Pie)


                      Market Analysis (Pie)




                                                                             Pre-Foreclosure

                                                                             Post-Foreclosure

                                                                             1st Time Homebuyers




   BUSINESS PLAN                                                                                  Page 6
                                            [Company Name]


4.2 Target Market Segment Strategy

   [Company Name] will target the different segments through its developed relationships. As a realtor,
   [Name] has consistent access to notice of default (NOD) or pre-foreclosure homeowner lists. By
   developing a relationship with these homeowners, [Company Name] will obtain new clients when they
   are unable to be served by their current lender.

   [Company Name] will also target new clients by developing awareness of the company through the
   various advertising medium, postcards and radios ads for example. As long as these avenues are
   explored thoroughly and potential clients become increasingly aware of [Company Name]s’ unique
   services, then it will not be difficult to continuously get new clients.

4.3 Service Business Analysis

   As mentioned above the unique nature of the actual service along with grant subsidies allows
   [Company Name] to be the leading advocate in this market. The alternative firms in this market are
   loan modification companies. These companies only work with the current lender to assist
   homeowners. Thus, the results are often unsuccessful or the service is never rendered because the
   homeowner cannot afford the initial fees.

4.3.1 Competition and Buying Patterns

   There are no direct competitors to [Company Name] The service it provides is unprecedented in the
   general foreclosure prevention market, and the inability to pay the legal fees is a non-factor. Most of
   the potential clients will not be in a position to choose between loan modification companies and
   [Company Name] because continued financial hardship and possible foreclosure are at risk. The 1st
   time homebuyer program will have competitors, but the company firmly believes it will deliver the best
   possible terms on the most consistent basis.

5.0 Strategy and Implementation Summary

   [Company Name] will focus on the pre-foreclosure needs in the Southern California, Nevada, Arizona
   and Utah regions. For the purchase program the target customer will be first-time home buyers or
   those who have had existing refinancing failures.

5.1 SWOT Analysis

   The following SWOT analysis captures the key strengths and weaknesses within the company, and
   describes the opportunities and threats facing [Company Name]

5.1.1 Strengths

      Strong relationships with investors that offer credit arrangements, flexibility, and response to the
       built-in equity requirement
      Excellent and stable staff, offering personalized customer service
      Good referral relationships with complementary financial advisors, local realtors, and banks

5.1.2 Weaknesses

      Access to additional operating capital and grant funds




   BUSINESS PLAN                                                                                Page 7
                                             [Company Name]


5.1.3 Opportunities

      A growing market with most of our target market still not knowing we exist
      Strategic alliances offering sources for referrals and joint marketing activities to extend our reach
      Increasing opportunities beyond the "100-mile" target area through Internet and radio advertising

5.1.4 Threats

      Homeowners still climbing the "mortgage experience curve" and thus, may be reluctant to
       seek/accept help

5.2 Competitive Edge

   [Company Name] will sustain its competitive edge by allowing less fortunate homeowners to receive
   the full service without paying the initial fee up-front. Additionally, the company will guide them
   through the entire process while making sure their home is safe. The company will actually take title of
   the property for the homeowner. No other agency or advocacy has a foreclosure prevention program
   so well geared to home retention.

5.3 Marketing Strategy

   Traditional marketing techniques for foreclosure assistance are becoming ineffective, due to the horror
   stories and eventual outcomes of many homeowners; loss of ownership. Building trusting relationships
   with the community is a crucial first step in reducing anxiety in the foreclosure prevention and 1st time
   home-buying processes. [Company Name] will build relationships that will lead to referrals and
   business success.

5.4 Sales Strategy

   The sales forecast summary is included in the appendix. The annual sales projections are included here
   in Table 5.4.1

5.4.1 Sales Forecast

   As the following table shows, the company plans to deliver sales of approximately $735,000 from just
   over 100 clients, in the first year, ~$1.0MM from 160 clients in the second year, and around $1.5MM
   from 230 clients in the third year of plan implementation.




   BUSINESS PLAN                                                                                  Page 8
                                   [Company Name]


Table: Sales Forecast



   Sales Forecast
                                               Year 1        Year 2       Year 3
   Unit Sales
   Pre-Foreclosure Clients                        75           100          150
   Post-Foreclosure Clients                       17            30           40
   1st Time Homebuyers                            17            30           40
   Total Unit Sales                              108           160          230

   Unit Prices                                 Year 1        Year 2       Year 3
   Pre-Foreclosure Clients                  $7,500.00     $7,500.00    $7,500.00
   Post-Foreclosure Clients                 $5,225.88     $5,225.88    $5,225.88
   1st Time Homebuyers                      $5,225.88     $5,225.88    $5,225.88

   Sales
   Pre-Foreclosure Clients                  $562,500      $750,000    $1,125,000
   Post-Foreclosure Clients                  $87,098      $156,776     $209,035
   1st Time Homebuyers                       $87,098      $156,776     $209,035
   Total Sales                              $736,696     $1,063,553   $1,543,070

   Direct Unit Costs                           Year 1        Year 2       Year 3
   Pre-Foreclosure Clients                      $0.00         $0.00        $0.00
   Post-Foreclosure Clients                     $0.00         $0.00        $0.00
   1st Time Homebuyers                          $0.00         $0.00        $0.00

   Direct Cost of Sales
   Pre-Foreclosure Clients                          $0          $0           $0
   Post-Foreclosure Clients                         $0          $0           $0
   1st Time Homebuyers                              $0          $0           $0
   Subtotal Direct Cost of Sales                    $0          $0           $0




   BUSINESS PLAN                                                           Page 9
                                                                                      [Company Name]


Chart: Sales Monthly


                                              Sales Monthly
 $90,000

 $80,000

 $70,000

 $60,000
                                                                                                                                            Pre-Foreclosure Clients
 $50,000
                                                                                                                                            Post-Foreclosure Clients
 $40,000
                                                                                                                                            1st Time Homebuyers
 $30,000

 $20,000

 $10,000

      $0
                Month 1

                          Month 2

                                    Month 3

                                              Month 4

                                                        Month 5

                                                                  Month 6

                                                                            Month 7

                                                                                      Month 8

                                                                                                Month 9

                                                                                                           Month 10

                                                                                                                      Month 11

                                                                                                                                 Month 12

Chart: Sales by Year


                                              Sales by Year

 $1,600,000

 $1,400,000

 $1,200,000
                                                                                                                                            Pre-Foreclosure Clients
 $1,000,000
                                                                                                                                            Post-Foreclosure Clients
   $800,000
                                                                                                                                            1st Time Homebuyers
   $600,000

   $400,000

   $200,000

           $0
                                Year 1                            Year 2                                  Year 3




BUSINESS PLAN                                                                                                                                                     Page 10
                                                      [Company Name]


5.5 Milestones

   Our detailed milestones are shown in the following table and chart. The related budgets are included
   with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis
   that comes in Chapter 7 of this plan.

Table: Milestones



   Milestones



   Milestone                          Start Date       End Date             Budget          Manager     Department

   Receive Grant Funding              12/1/2010        12/1/2010          $600,000

   Begin Marketing Plan               12/1/2010        11/1/2011          ($15,000)

   First 20 Clients                   12/1/2010         3/1/2011         ($150,000)

   First 50 Clients                   12/1/2010         5/1/2011         ($225,000)

   Totals                                                                 $210,000




   Chart: Milestones


                                                      Milestones


        Receive Grant Funding


            Begin Marketing Plan


                 First 20 Clients


                 First 50 Clients


                                    Dec
                                      Jan `11
                                                Feb
                                                      Mar
                                                            Apr
                                                                   May
                                                                         Jun
                                                                               Jul
                                                                                      Aug
                                                                                            Sep
                                                                                                  Oct




6.0 Management Summary

   The initial management team depends on the founders themselves, with little back-up. As we initiate
   start-up, we will take on additional help; an office assistant and a paralegal.
   BUSINESS PLAN                                                                                               Page 11
                                           [Company Name]


6.1 Personnel Plan

   The detailed monthly personnel plan for the next three years is included in the chart below. The annual
   personnel estimates are included here also. Note: in order to assist in the gradual increase in
   operating capital in year 1, employees will initially be paid out of the grant funding.

Table: Personnel



   Personnel Plan
                                                            Year 1          Year 2          Year 3
   Paralegal                                               $23,333         $40,000         $40,000
   Office Assistant                                        $14,583         $25,000         $25,000
   Total People                                                  2               2               2

   Total Payroll                                           $37,917         $65,000         $65,000



7.0 Financial Plan

   Our financial plan is based on conservative estimates and assumptions. We will need to plan on an
   initial grant investment to make the financials work.

7.1 Start-up Funding

   [Company Name] start-up costs are detailed below, in the Start-up Table. The following table shows
   how these start-up costs will be funded; by grant capital.




   BUSINESS PLAN                                                                              Page 12
                [Company Name]




BUSINESS PLAN                    Page 13
                                                 [Company Name]


                                              Table: Start-up Funding



  Start-up Funding
  Start-up Expenses to Fund                                                      $32,200
  Start-up Assets to Fund                                                       $514,500
  Total Funding Required                                                        $546,700

  Assets
  Non-cash Assets from Start-up                                                       $0
  Cash Requirements from Start-up                                               $514,500
  Additional Cash Raised                                                         $53,300
  Cash Balance on Starting Date                                                 $567,800
  Total Assets                                                                  $567,800



  Liabilities and Capital

  Liabilities
  Current Borrowing                                                                   $0
  Long-term Liabilities                                                               $0
  Other Current Liabilities (interest-free)                                           $0
  Total Liabilities                                                                   $0

  Capital

  Planned Investment
  Owner                                                                               $0
  Investor                                                                      $600,000
  Additional Investment Requirement                                                   $0
  Total Planned Investment                                                      $600,000

  Loss at Start-up (Start-up Expenses)                                          ($32,200)
  Total Capital                                                                 $567,800



  Total Capital and Liabilities                                                 $567,800

  Total Funding                                                                 $600,000



7.2 Important Assumptions

     We are assuming steady growth from good management, barring any unforeseen local, or national
      disasters such as the economic recovery reversal
     We are also assuming adequate grant funding to sustain us during start-up




  BUSINESS PLAN                                                                             Page 14
                                             [Company Name]


7.3 Break-even Analysis

   The Break-even Analysis is based on the average of the first-year figures for total sales and by
   operating expenses. These conservative assumptions make for a more accurate estimate of real risk.

Table: Break-even Analysis



   Break-even Analysis




   Monthly Units Break-even                                                               1

   Monthly Revenue Break-even                                                         $6,109



   Assumptions:

   Average Per-Unit Revenue                                                        $6,821.26

   Average Per-Unit Variable Cost                                                      $0.00

   Estimated Monthly Fixed Cost                                                       $6,109




   Chart: Break-even Analysis


                                          Break-even Analysis
     $70,000


     $60,000


     $50,000


     $40,000


     $30,000


     $20,000


     $10,000


          $0


                  0      1        2   3      4    5    6      7   8     9     10     11




   BUSINESS PLAN                                                                          Page 15
                                       [Company Name]


7.4 Projected Profit and Loss

   As the Profit and Loss table shows, the company expects to continue its sustained growth in
   profitability over the next three years of operations.

Table: Profit and Loss



   Pro Forma Profit and Loss
                                               Year 1          Year 2          Year 3
   Sales                                     $736,696      $1,063,553      $1,543,070
   Direct Cost of Sales                            $0              $0              $0
   Other Costs of Sales                            $0              $0              $0
   Total Cost of Sales                             $0              $0              $0

   Gross Margin                              $736,696      $1,063,553      $1,543,070
   Gross Margin %                            100.00%         100.00%         100.00%



   Expenses
   Payroll                                    $37,917         $65,000        $65,000
   Marketing/Promotion                        $15,000         $15,000        $15,000
   Depreciation                                    $0              $0             $0
   Rent                                        $4,700          $4,700         $4,700
   Utilities                                       $0          $3,000         $3,000
   Insurance                                       $0              $0             $0
   Payroll Taxes                               $5,688          $9,750         $9,750
   Other                                      $10,000         $10,000        $10,000

   Total Operating Expenses                   $73,304        $107,450       $107,450

   Profit Before Interest and Taxes          $663,392        $956,103      $1,435,620
   EBITDA                                    $663,392        $956,103      $1,435,620
    Interest Expense                               $0              $0              $0
    Taxes Incurred                           $199,018        $286,831       $430,686

   Net Profit                                $464,374        $669,272      $1,004,934
   Net Profit/Sales                           63.03%          62.93%          65.13%




   BUSINESS PLAN                                                                        Page 16
                                            [Company Name]


Chart: Profit Monthly


                                          Profit Monthly
 $60,000


 $50,000


 $40,000


 $30,000


 $20,000


 $10,000


      $0
            Month 1       Month 3       Month 5       Month 7       Month 9      Month 11
                   Month 2       Month 4       Month 6       Month 8      Month 10      Month 12




Chart: Profit Yearly


                                           Profit Yearly



 $1,000,000


   $800,000


   $600,000


   $400,000


   $200,000


           $0
                        Year 1                   Year 2                   Year 3




BUSINESS PLAN                                                                                      Page 17
                                           [Company Name]


Chart: Gross Margin Monthly


                                    Gross Margin Monthly
 $90,000

 $80,000

 $70,000

 $60,000

 $50,000

 $40,000

 $30,000

 $20,000

 $10,000

      $0
           Month 1       Month 3       Month 5       Month 7       Month 9      Month 11
                  Month 2       Month 4       Month 6       Month 8      Month 10      Month 12




Chart: Gross Margin Yearly


                                      Gross Margin Yearly


 $1,600,000

 $1,400,000

 $1,200,000

 $1,000,000

   $800,000

   $600,000

   $400,000

   $200,000

           $0
                       Year 1                    Year 2                    Year 3




BUSINESS PLAN                                                                                     Page 18
                                               [Company Name]


7.5 Projected Cash Flow

   The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs
   of the company as the business generates sufficient cash flow to support operations.

Table: Cash Flow



   Pro Forma Cash Flow
                                                                Year 1       Year 2          Year 3
   Cash Received

   Cash from Operations
   Cash Sales                                               $736,696     $1,063,553      $1,543,070
   Subtotal Cash from Operations                            $736,696     $1,063,553      $1,543,070

   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                                        $0             $0              $0
   Subtotal Cash Received                                   $736,696     $1,063,553      $1,543,070

   Expenditures                                                 Year 1       Year 2          Year 3

   Expenditures from Operations
   Cash Spending                                            $272,322      $394,281         $538,136
   Subtotal Spent on Operations                             $272,322      $394,281         $538,136

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid Out                               $0             $0              $0
   Principal Repayment of Current Borrowing                       $0             $0              $0
   Other Liabilities Principal Repayment                          $0             $0              $0
   Long-term Liabilities Principal Repayment                      $0             $0              $0
   Purchase Other Current Assets                            $236,583      $750,000       $1,125,000
   Purchase Long-term Assets                                      $0             $0              $0
   Dividends                                                      $0             $0              $0
   Subtotal Cash Spent                                      $508,905     $1,144,281      $1,663,136

   Net Cash Flow                                            $227,791      ($80,728)      ($120,066)
   Cash Balance                                             $795,591      $714,863         $594,797




   BUSINESS PLAN                                                                          Page 19
                                                                        [Company Name]


Chart: Cash



                                                       Cash
 $800,000

 $700,000

 $600,000

 $500,000
                                                                                                                                       Net Cash Flow
 $400,000
                                                                                                                                       Cash Balance
 $300,000

 $200,000

 $100,000

      $0
            Month 1

                      Month 2

                                Month 3

                                          Month 4

                                                    Month 5

                                                              Month 6

                                                                        Month 7

                                                                                  Month 8

                                                                                            Month 9

                                                                                                      Month 10

                                                                                                                 Month 11

                                                                                                                            Month 12




BUSINESS PLAN                                                                                                                                          Page 20
                                            [Company Name]


7.6 Projected Balance Sheet

   The following table presents the Balance Sheet for [Company Name]

Table: Balance Sheet



   Pro Forma Balance Sheet
                                                         Year 1            Year 2           Year 3
   Assets

   Current Assets
   Cash                                               $795,591          $714,863         $594,797
   Other Current Assets                               $236,583          $986,583        $2,111,583
   Total Current Assets                              $1,032,174        $1,701,446       $2,706,381

   Long-term Assets
   Long-term Assets                                          $0                $0               $0
   Accumulated Depreciation                                  $0                $0               $0
   Total Long-term Assets                                    $0                $0               $0
   Total Assets                                      $1,032,174        $1,701,446       $2,706,381

   Liabilities and Capital                               Year 1            Year 2           Year 3

   Current Liabilities
   Current Borrowing                                        $0                $0                $0
   Other Current Liabilities                                $0                $0                $0
   Subtotal Current Liabilities                             $0                $0                $0

   Long-term Liabilities                                    $0                $0                $0
   Total Liabilities                                        $0                $0                $0

   Paid-in Capital                                    $600,000          $600,000         $600,000
   Retained Earnings                                  ($32,200)         $432,174        $1,101,446
   Earnings                                           $464,374          $669,272        $1,004,934
   Total Capital                                     $1,032,174        $1,701,446       $2,706,381
   Total Liabilities and Capital                     $1,032,174        $1,701,446       $2,706,381

   Net Worth                                         $1,032,174        $1,701,446       $2,706,381



7.7 Business Ratios

   The following table shows the projected business ratios. We expect to maintain healthy ratios for
   profitability, risk, and return. The industry comparisons are for NAICS 541199, all other legal services.




   BUSINESS PLAN                                                                                Page 21
                                                [Company Name]


Table: Ratios



   Ratio Analysis
                                                       Year 1        Year 2       Year 3   Industry Profile
   Sales Growth                                          n/a.       44.37%       45.09%           13.07%

   Percent of Total Assets
   Other Current Assets                               22.92%        57.98%       78.02%           53.58%
   Total Current Assets                              100.00%       100.00%      100.00%           70.11%
   Long-term Assets                                    0.00%         0.00%        0.00%           29.89%
   Total Assets                                      100.00%       100.00%      100.00%          100.00%

   Current Liabilities                                 0.00%         0.00%        0.00%           37.94%
   Long-term Liabilities                               0.00%         0.00%        0.00%           54.53%
   Total Liabilities                                   0.00%         0.00%        0.00%           92.47%
   Net Worth                                         100.00%       100.00%      100.00%            7.53%

   Percent of Sales
   Sales                                             100.00%       100.00%      100.00%          100.00%
   Gross Margin                                      100.00%       100.00%      100.00%           59.56%
   Selling, General & Administrative Expenses         36.97%        37.07%       34.87%           28.35%
   Advertising Expenses                                2.04%         1.41%        0.97%            1.21%
   Profit Before Interest and Taxes                   90.05%        89.90%       93.04%            8.19%

   Main Ratios
   Current                                               0.00          0.00         0.00             1.24
   Quick                                                 0.00          0.00         0.00             1.18
   Total Debt to Total Assets                          0.00%         0.00%        0.00%           92.47%
   Pre-tax Return on Net Worth                        64.27%        56.19%       53.05%          696.33%
   Pre-tax Return on Assets                           64.27%        56.19%       53.05%           52.41%

   Additional Ratios                                   Year 1        Year 2       Year 3
   Net Profit Margin                                  63.03%        62.93%       65.13%                n/a
   Return on Equity                                   44.99%        39.34%       37.13%                n/a

   Activity Ratios
   Accounts Payable Turnover                             8.98         12.17        12.17               n/a
   Total Asset Turnover                                  0.71          0.63         0.57               n/a

   Debt Ratios
   Debt to Net Worth                                     0.00          0.00         0.00               n/a
   Current Liabilities to Liabilities                    0.00          0.00         0.00               n/a

   Liquidity Ratios
   Net Working Capital                             $1,032,174    $1,701,446   $2,706,381               n/a
   Interest Coverage                                     0.00          0.00         0.00               n/a

   Additional Ratios
   Assets to Sales                                       1.40          1.60         1.75               n/a
   Current Debt/Total Assets                              0%            0%           0%                n/a
   Acid Test                                             0.00          0.00         0.00               n/a
   Sales/Net Worth                                       0.71          0.63         0.57               n/a
   Dividend Payout                                       0.00          0.00         0.00               n/a




   BUSINESS PLAN                                                                            Page 22
                                  Appendix


Table: Sales Forecast



Sales Forecast
                                         Year 1       Year 2       Year 3
Unit Sales
Pre-Foreclosure Clients                     75          100          150
Post-Foreclosure Clients                    17           30           40
1st Time Homebuyers                         17           30           40
Total Unit Sales                           108          160          230

Unit Prices                              Year 1       Year 2       Year 3
Pre-Foreclosure Clients               $7,500.00    $7,500.00    $7,500.00
Post-Foreclosure Clients              $5,225.88    $5,225.88    $5,225.88
1st Time Homebuyers                   $5,225.88    $5,225.88    $5,225.88

Sales
Pre-Foreclosure Clients               $562,500     $750,000    $1,125,000
Post-Foreclosure Clients               $87,098     $156,776     $209,035
1st Time Homebuyers                    $87,098     $156,776     $209,035
Total Sales                           $736,696    $1,063,553   $1,543,070

Direct Unit Costs                        Year 1       Year 2       Year 3
Pre-Foreclosure Clients                   $0.00        $0.00        $0.00
Post-Foreclosure Clients                  $0.00        $0.00        $0.00
1st Time Homebuyers                       $0.00        $0.00        $0.00

Direct Cost of Sales
Pre-Foreclosure Clients                      $0          $0           $0
Post-Foreclosure Clients                     $0          $0           $0
1st Time Homebuyers                          $0          $0           $0
Subtotal Direct Cost of Sales                $0          $0           $0




                                BUSINESS PLAN
                     Appendix


Table: Personnel



Personnel Plan



                                    Year 1    Year 2    Year 3




Paralegal                          $23,333   $40,000   $40,000



Office Assistant                   $14,583   $25,000   $25,000



Total People                            2         2         2




Total Payroll                      $37,917   $65,000   $65,000




                   BUSINESS PLAN
                                     Appendix


Table: Profit and Loss



Pro Forma Profit and Loss
                                                Year 1       Year 2       Year 3

Sales                                      $736,696      $1,063,553   $1,543,070
Direct Cost of Sales                               $0           $0           $0
Other Costs of Sales                               $0           $0           $0
Total Cost of Sales                                $0           $0           $0


Gross Margin                               $736,696      $1,063,553   $1,543,070
Gross Margin %                             100.00%         100.00%      100.00%




Expenses
Payroll                                     $37,917        $65,000      $65,000
Marketing/Promotion                         $15,000        $15,000      $15,000
Depreciation                                       $0           $0           $0
Rent                                            $4,700      $4,700       $4,700
Utilities                                          $0       $3,000       $3,000
Insurance                                          $0           $0           $0
Payroll Taxes                                   $5,688      $9,750       $9,750
Other                                       $10,000        $10,000      $10,000


Total Operating Expenses                    $73,304       $107,450     $107,450


Profit Before Interest and Taxes           $663,392       $956,103    $1,435,620
EBITDA                                     $663,392       $956,103    $1,435,620
 Interest Expense                                  $0           $0           $0
 Taxes Incurred                            $199,018       $286,831     $430,686


Net Profit                                 $464,374       $669,272    $1,004,934
Net Profit/Sales                            63.03%          62.93%       65.13%




                                   BUSINESS PLAN
                                              Appendix


Table: Cash Flow



Pro Forma Cash Flow
                                                           Year 1       Year 2       Year 3
Cash Received


Cash from Operations
Cash Sales                                               $736,696   $1,063,553   $1,543,070
Subtotal Cash from Operations                            $736,696   $1,063,553   $1,543,070


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                                       $0           $0           $0
Subtotal Cash Received                                   $736,696   $1,063,553   $1,543,070


Expenditures                                               Year 1       Year 2       Year 3


Expenditures from Operations
Cash Spending                                            $272,322    $394,281     $538,136
Subtotal Spent on Operations                             $272,322    $394,281     $538,136


Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                              $0           $0           $0
Principal Repayment of Current Borrowing                      $0           $0           $0
Other Liabilities Principal Repayment                          $0          $0            $0
Long-term Liabilities Principal Repayment                      $0          $0            $0
Purchase Other Current Assets                            $236,583    $750,000    $1,125,000
Purchase Long-term Assets                                      $0           $0           $0
Dividends                                                      $0           $0           $0
Subtotal Cash Spent                                      $508,905   $1,144,281   $1,663,136


Net Cash Flow                                            $227,791    ($80,728)   ($120,066)
Cash Balance                                             $795,591    $714,863      $594,797




                                            BUSINESS PLAN
                                  Appendix


Table: Balance Sheet



Pro Forma Balance Sheet
                                      Year 1        Year 2       Year 3
Assets


Current Assets
Cash                               $795,591      $714,863     $594,797
Other Current Assets               $236,583      $986,583    $2,111,583
Total Current Assets              $1,032,174    $1,701,446   $2,706,381


Long-term Assets
Long-term Assets                         $0            $0           $0
Accumulated Depreciation                 $0            $0           $0
Total Long-term Assets                   $0            $0           $0
Total Assets                      $1,032,174    $1,701,446   $2,706,381


Liabilities and Capital               Year 1        Year 2       Year 3


Current Liabilities
Current Borrowing                        $0            $0           $0
Other Current Liabilities                $0            $0           $0
Subtotal Current Liabilities             $0            $0           $0


Long-term Liabilities                    $0            $0           $0
Total Liabilities                        $0            $0           $0


Paid-in Capital                    $600,000      $600,000     $600,000
Retained Earnings                  ($32,200)     $432,174    $1,101,446
Earnings                           $464,374      $669,272    $1,004,934
Total Capital                     $1,032,174    $1,701,446   $2,706,381
Total Liabilities and Capital     $1,032,174    $1,701,446   $2,706,381


Net Worth                         $1,032,174    $1,701,446   $2,706,381




                                BUSINESS PLAN
                                                              Appendix


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                                                        BUSINESS PLAN
                                                              Appendix



				
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Description: This Business Plan for a Legal Services Provider for Homeowners in Foreclosure 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.