[Company Name]
BUSINESS PLAN 20__
© 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 ................................................................................................................................... 2
2.0 Company Summary .................................................................................................................................. 3
2.1 Company Ownership ............................................................................................................................ 3
2.2 Start-up Summary ................................................................................................................................ 4
Table: Start-up ....................................................................................................................................... 4
Chart: Start-up ....................................................................................................................................... 5
3.0 Products .................................................................................................................................................. 5
4.0 Market Analysis Summary ......................................................................................................................... 5
4.1 Market Segmentation ............................................................................................................................ 6
4.2 Target Market Segment Strategy ........................................................................................................... 6
4.3 Industry Analysis .................................................................................................................................. 7
4.3.1 Competition and Buying Patterns .................................................................................................... 8
5.0 Strategy and Implementation Summary ...................................................................................................... 8
5.1 SWOT Analysis .................................................................................................................................... 8
5.1.1 Strengths ...................................................................................................................................... 8
5.1.2 Weaknesses.................................................................................................................................. 9
5.1.3 Opportunities ................................................................................................................................. 9
5.1.4 Threats ......................................................................................................................................... 9
5.2 Competitive Edge ................................................................................................................................. 9
5.3 Marketing Strategy................................................................................................................................ 9
5.4 Sales Strategy .................................................................................................................................... 10
5.4.1 Sales Forecast ............................................................................................................................ 10
Table: Sales Forecast....................................................................................................................... 10
Chart: Sales Monthly ........................................................................................................................ 11
Chart: Sales by Year ........................................................................................................................ 11
6.0 Management Summary ........................................................................................................................... 12
6.1 Personnel Plan ................................................................................................................................... 14
Table: Personnel .................................................................................................................................. 14
7.0 Financial Plan ........................................................................................................................................ 15
7.1 Start-up Funding................................................................................................................................. 15
Table: Start-up Funding ........................................................................................................................ 15
7.2 Important Assumptions ....................................................................................................................... 16
7.3 Break-even Analysis ........................................................................................................................... 16
Table: Break-even Analysis................................................................................................................... 16
Chart: Break-even Analysis ................................................................................................................... 16
7.4 Projected Profit and Loss .................................................................................................................... 17
Table: Profit and Loss........................................................................................................................... 17
Chart: Profit Monthly............................................................................................................................. 18
Chart: Profit Yearly ............................................................................................................................... 18
Chart: Gross Margin Monthly................................................................................................................. 19
Chart: Gross Margin Yearly ................................................................................................................... 19
7.5 Projected Cash Flow ........................................................................................................................... 20
Table: Cash Flow ................................................................................................................................. 20
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Table of Contents
Chart: Cash ......................................................................................................................................... 21
7.6 Projected Balance Sheet ..................................................................................................................... 22
Table: Balance Sheet ........................................................................................................................... 22
7.7 Business Ratios.................................................................................................................................. 23
Table: Ratios ....................................................................................................................................... 23
Table: Sales Forecast..................................................................................................................................... 1
Table: Personnel ............................................................................................................................................ 2
Table: Profit and Loss..................................................................................................................................... 3
Table: Cash Flow ........................................................................................................................................... 5
Table: Balance Sheet ..................................................................................................................................... 7
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Page 1
2011 [Company Name]
1.0 Executive Summary
Introduction
This plan outlines the financial and promotional plans of [Company Name], to be headquartered in Los Angeles, California. This
exciting endeavor will bring a needed women's intimate apparel to department stores and boutiques in the metro area and globally
online. The owners envision that [Company Name] will be able to achieve the greatest portion of market share in the region through
active support of women's and community organizations, connecting events to in-store and online promotions. The
Company's ultimate goal is to be the premier intimate apparel and loungewear clothing line fitting every customer in a
fashionable highly tailored sexy lingerie and loungewear, giving her incredible support and shape, therefore enhancing her entire
silhouette making her feel confident and sexy.
The Company
[Company Name] has a very strong, experienced and professional management team, with decades of combined experience. With
each member working in their area of specialization, [Company Name] will have every aspect of the business covered.
The Market
Many women that are overweight find it hard to picture themselves in something sexy like lingerie. With the hottest trends in the plus
size lingerie market, overweight women can feel confident and sexy while wearing the clothes that can give them confidence in their
bodies that they need. Ladies do not have to be a slim person to feel sexy or to wear the sexy outfits that will drive your man wild.
More and more companies are coming out with their own lines of plus size lingerie.
[Company Name] is the first manufacturer of a lingerie and sleepwear line (including boudoir accessories) targeted at women, who
wish to feel glamorous and sexy. By emphasizing the positive aspects of a woman's body in a playful, yet elegant way through
distinctive design, the [Company Name] line is not for the woman who feels comfortable wearing Victoria Secret or Fredrick's of
Hollywood. It is for the woman who, after being intimate with their mate, heads to the bathroom modestly covering her derriere with a
pillow to hide, what she feels, is a body losing its battle with "Mother Time". This is the target market. Any woman of any age and any
size who feels the desire to be alluring and sexy, yet elegant and discreet.
Financial Projections
To achieve sales of $2,000,000 by the close of the first year of operation.
To gain a large portion of the plus-size and mature ladies lingerie market segment by the close of year three.
In order to achieve such figures, [Company Name] has start-up requirements of approximately $250,000, including initial inventory.
[Company Name] is open for discussion to any finance arrangement; however, the Company is seeking a single investor.
[Company Name] | 1.0 Executive Summary 1
2011 [Company Name]
Chart: Highlights
1.1 Objectives
To create a point of destination for premier lingerie.
To achieve the greatest portion of market share in the region for specialty foundation garments.
To be active in supporting women's and community organizations, connecting events to sales promotions.
To achieve a net profit margin of over 7% the second year of operation and over 15% the third.
1.2 Mission
To be the premier mature women's apparel supplier in Los Angeles and globally online, fitting every customer in a fashionable bra,
classy lingerie or other intimate apparel, giving her incredible support and shape, therefore enhancing her entire silhouette.
1.3 Keys to Success
To succeed in the intimate apparel business [Company Name] knows the Company must:
Carry an assortment of foundations in various sizes, styles and colors, in quality fabrics.
Carry fashionable pieces and create a brand that is a point of difference from the competitors.
Continuously review sales and adjust inventory levels accordingly.
Provide online customers and retailers with excellent customer service in a positive body image atmosphere.
Advertise online in areas that potential customers will learn about [Company Name] and the products offered.
Keep informed of trends, technology and new brands.
Have a variety of price points, knowing that women come in all shapes, sizes and economic levels, with the average price point
in a middle range.
[Company Name] | 1.0 Executive Summary 2
2011 [Company Name]
2.0 Company Summary
The Company is organized as a Limited Liability Corporation in the State of California and will be doing business as [Company
Name], located in the Los Angeles, California. Consistent growth, retail development and easy access from all freeways made this
the prime location. The merchandise will be manufactured overseas. The product lines have been designed on the following criteria:
high design, high quality and extensive size range offered.
2.1 Company Ownership
The Company is a Limited Liability Corporation organized in Los Angeles, California.
The proposed share capital of the company prior to capital raising:
[Name] - 45%
[Name] - 45%
[Name] - 5%
[Name] - 5%
[Company Name] | 2.0 Company Summary 3
2011 [Company Name]
2.2 Start-up Summary
Total start-up expense (including legal cost, manufacturing, branding and logo design, public relations, marketing and related
expenses) comes to $250,000. The table below illustrates a complete breakdown of all start-up assets that are needed, as total start-
up requirements. Currently, the Company does not have any short-term liabilities.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Rent & Security Deposit-3 Months $8,000
POS Supplies $1,000
Travel-Market Buying Trips $5,000
Business & Inventory Insurance $2,100
Permits $250
Advertising & Promotion $60,000
Bank Card Machine & Supplies $2,500
Computers and Software $10,500
Branding $5,000
Organizational Dues & Subscriptions $260
CPA $1,500
Payroll-1 Year $23,595
Company Car Payments-2 Months $1,040
Business Supplies $750
Utilities & Telephone-3 Months $2,100
Credit Card Processing Fees-3 Months $1,690
Building Taxes & Insurance-3 Months $1,575
Manufacturing $0
Total Start-up Expenses $126,860
Start-up Assets
Cash Required $5,000
Start-up Inventory $80,000
Other Current Assets $0
Long-term Assets $0
Total Assets $85,000
Total Requirements $211,860
[Company Name] | 2.0 Company Summary 4
2011 [Company Name]
Chart: Start-up
3.0 Products
[Company Name] will carry quality designer products in a variety of sizes, colors and styles. [Company Name]'s expertise and
concentration is in lingerie that is well-fitting full-busted and full-figured women. The greatest percentage of the merchandise will be in
intimate apparel followed by nightwear/At Home-wear.
People don't buy these products for the lingerie itself. They buy them for the benefit they provide and the solution to a problem. They
buy them for the reassurance that they've covered all the bases that the lingerie fits just right, that they won't be embarrassed when
they want intimacy and when they show themselves to their lover and partner. They don't want another wardrobe item; they want to
feel attractive and desirable. [Company Name]'s exclusively designed intimate apparel line is the perfect fit to a very highly neglected
market.
4.0 Market Analysis Summary
Many women that are overweight find it hard to picture themselves in something sexy like lingerie. With the hottest trends in the plus
size lingerie market, overweight women can feel confident and sexy while wearing the clothes that can give them confidence in their
bodies that they need. Ladies do not have to be a slim person to feel sexy or to wear the sexy outfits that will drive your man wild.
More and more companies are coming out with their own lines of plus size lingerie.
It used to be that when overweight women went to look for something sexy to wear to bed, all they found was a variety of "muumuus
and granny panties". These type of panties, nighties and bras were more material then really needed and they focused on practical
clothes rather than sexy and figure enhancing qualities. [Company Name] wants to break through that barrier by educating voluptuous
women on how now they can now accentuated her curves with the many different styles of lingerie that is available to them.
Some of the most popular items and plus size lingerie would be bustier as well as chemises. Women want variety when shopping for
lingerie and they want to get them in a wide variety of colors as well as luxurious and sensual fabrics. Pajamas as well as nightgowns
are very popular choices among plus size lingerie because that is what is mostly available to date. It helps to give coverage over the
skin where they are not so confident with, as well is letting them feel sexy helping to build their confidence in those areas.
[Company Name] | 3.0 Products 5
2011 [Company Name]
While the global market for lingerie was down nearly 3% in 2009 to 29 billion dollars due to the recession, apparel forecasters such as
"Just Style" project that lingerie sales have already begun to recover. By 2012, sales will grow to 30.7 billion dollars and by 2016 will
reach 32.1 billion dollars.
High end lingerie retailers actually saw growth in 2009. Agent Provocateur increased sales in 2009 by 8%. Since 2007, Agent
Provocateur added 13 new stores bringing its store total to 43 and plans to double that over the next three years. That coupled with a
strong on-line presence has contributed to this success.
Historically, lingerie sales have increased as much as 20% during recessions. Compared to big ticket items like jewelry or cars,
lingerie is a fairly inexpensive way to boost self-esteem without feeling a pinch in the pocketbook.
Body building
The ideal shape has shifted constantly over the years. So what does fit look like now?
Christina Hendricks, the curvaceous actress who plays bombshell-with-brains Joan Harris on the series "Mad Men,'' went looking for
red carpet dresses last year with mixed results.
"Award season is very, very tough for me,'' Hendricks said at a New York party last fall. “There are only size zeros and size twos
available. Designers are saying 'We love you!' but they won't make me a dress. It doesn't matter how many times I beg. It is frustrating
for me.''
Hendricks's predicament shows just how dramatically the ideal body type has shifted in the past 45 years. On "Mad Men,'' set in the
early to mid-1960s, Hendricks embodies the era's feminine ideal. Her nipped waist and hourglass figure drive men crazy — and
leave other women looking boyish or frumpy in comparison. But by current Hollywood standards, Hendricks is plus size. In critiquing
Hendricks's 2010 Golden Globes gown a peach strapless number with cascading ruffles. New York Times fashion critic Cathy Horyn
quoted an anonymous stylist who said: "You don't put a big girl in a big dress.'' The shape that had once been considered perfection
was now, while unquestionably beautiful, rather "big.''
4.1 Market Segmentation
[Company Name] is the first manufacturer of a lingerie and sleepwear line (including boudoir accessories) targeted at women, who
wish to feel glamorous and sexy. By emphasizing the positive aspects of a woman's body in a playful, yet elegant way through
distinctive design, the [Company Name] line is not for the woman who feels comfortable wearing Victoria Secret or Fredrick's of
Hollywood. It is for the woman who, after being intimate with their mate, heads to the bathroom modestly covering her derriere with a
pillow to hide, what she feels, is a body losing its battle with "Mother Time". This is the target market. Any woman of any age and any
size who feels the desire to be alluring and sexy, yet elegant and discreet.
4.2 Target Market Segment Strategy
[Company Name]'s strategy is to aggressively develop and market a lingerie, sleepwear and loungewear collection along with boudoir
accessories. [Company Name] intends to market this unique and quality line not only as an alternative to what is currently obtainable;
but to differentiate the Company through the designs, marketing strategies, exclusiveness and brand awareness. [Company Name]
intends to build on its core portfolio of products and overcome any obstacles by using the Company's management expertise in the
lingerie and clothing industries. Two of the four partners are currently involved in the apparel industry with their strengths aimed at
design, production, sales and distribution. The remaining two partners have extensive business and entrepreneurial experience.
Many women that are overweight find it hard to picture themselves in something sexy like lingerie. With the hottest trends in the plus
size lingerie market, overweight women can feel confident and aphrodisiac while wearing the clothes that can give them confidence in
their bodies that they need. Women do not have to be a slim person to feel sexy or to wear the sexy outfits that will drive your man
wild.
[Company Name] | 4.0 Market Analysis Summary 6
2011 [Company Name]
While the market is already sizeable, this industry continues to grow. The sales potential in this market is unlimited.
4.3 Industry Analysis
Information on the industry was supplied by the Intimate Apparel Advertising Manager at Women's Wear Daily. WWD conducts the
largest portion of fashion industry (retail and wholesale) statistics and investigative reports. The paper has recently reported that the
innerwear or intimate apparel industry from 2008 to 2010 grew by 10%. The topics in this section will go into further detail using the
recent statistics on the industry.
Maidenform Brands has seen its 2011 Q1 net sales rise by 14.5 percent year on year to $163.6m. Consolidated gross profit
increased by 7.3 percent to $55.7m for the quarter, compared with the previous year's results.
The wholesale segment performed better than the company's retail sector, with sales increases of 15.5 percent and 2.7 percent,
respectively.
Net sales for the department stores and national chain stores channel increased by 8.5 percent to $63.7m for the first quarter,
compared with 2010. This increase was primarily attributed to international growth, expansion of the Donna Karan business and to
new distribution of Maidenform products, including Flexees shapewear, at a chain customer.
Mass merchant channel net sales increased by 31.5 percent to $58m during the same period. This increase was a result of increased
sales, particularly in shapewear, at one of the company's 'mass customers', as well as the Company's assortment of strapless and
full-figure products with this mass customer, and strong bra replenishment and shapewear placement at a warehouse club.
Maidenform Brands, Inc. is a global intimate apparel company with a portfolio of established brands and products. Maidenform sells
its products under brands including Maidenform, Control It!, Fat Free Dressing, Flexees, Lilyette, Luleh, Maidenform's Charmed,
Bodymates, Inspirations, Self Expressions and Sweet Nothings. Maidenform products are currently distributed in approximately 64
countries and territories outside the United States.
Sales in the lingerie sector have been encouraged by new innovations and consumers' desire to achieve idealistic body shapes
through the use of shapewear. Other factors, such as the media's interest in women's bodies and new trends towards achieving the
hourglass figure, have all helped boost sales within this sector. Lingerie was the second-largest sector of women's apparel in terms of
value, also witnessing an increase since 2006 and peaking in 2010.
The marketplace remains fairly overcrowded, particularly among the higher-end retailers, with further competition predicted as many
companies and brands enter the industry. The launch of the iconic Victoria's Secret in 2012 is expected to create competition among
luxury retailers, creating opportunities for new innovations and collections as retailers compete within the market. Discount retailers
are also expected to be forced to increase some price points as the rise in the cost of cotton has an effect on the clothing industry
worldwide. The global shortage of cotton is forcing retailers using the textile to increase prices or reduce their margins in the
forthcoming years; the value of the discount market may increase as price points rise.
Changes in fashion will continue to drive the market as lingerie becomes regarded as just as essential as outerwear. Trends including
wearing underwear as outerwear, as well as innovations in hosiery will all boost the industry. A focus on underwear and shapewear
products that can help with desired looks, from correct brassieres to tummy-clinching briefs, will also help to develop the market.
[Company Name] | 4.0 Market Analysis Summary 7
2011 [Company Name]
4.3.1 Competition and Buying Patterns
Key strategic issues facing retailers in the different channels, and opportunities.
Department Stores- Department stores need to figure out how they are going to generate traffic without resorting to price
promotions. [Company Name] feels that department stores are going to continue to lose share to other formats because they are
just too difficult to shop and provide no service or information for innerwear.
Specialty Chains- The main portion of this channel is Victoria's Secret. This channel has lost some ground over the last two
years. Those like The Gap and Ann Taylor can gain share due to product development and transactions from existing traffic.
Discounters- Their biggest fear is inflation, worrying what it will do to the real disposable income of mainstream Am[Name]a.
National Chains- Generating store traffic will be a top priority for National Chains. This channel is caught in the middle, neither
fish nor fowl, in that they have some great national and private label brands.
Mainstream Online Merchants- These merchants love being hot again. However, being in apparel they are still finding it
difficult, as the costs of doing business continue to rise.
This report does not offer information regarding non-chain specialty stores and this channel has been left out of this paper in the
last five years. It is unfortunate since this is the channel that is known for excellent fitting services, as well as high customer and
employee retention. Those women who need an expert fitting service are still visiting a local fitting shop. If WWD did a little more
investigative reporting on this channel it may show more insight as to why the department stores and chain specialty stores are losing
market share.
5.0 Strategy and Implementation Summary
[Company Name]'s strategy to gain the largest portion of market share.
Policies geared toward total customer service and retention.
Create a warm and natural shopping experience for women of all shapes and sizes to feel comfortable.
Employees that are well trained, compensated and appreciated, taking part in fashion merchandising. [Company Name] will hold
monthly meetings recognizing their contributions and creativity in an applauded way.
5.1 SWOT Analysis
The SWOT analysis provides the Company an opportunity to examine the internal strengths and weaknesses [Company Name] must
address. It also allows the Company to examine the opportunities presented to [Company Name] as well as potential threats.
5.1.1 Strengths
1. Knowledgeable Company Officers. The officers of the Company have gone through great lengths and careful research to
form the business model. All parties bring their business strengths and expertise.
2. State-of-the art clothing line. A large part of the [Company Name] experience includes the state-of-the-art clothing designs.
Customers enjoy beautiful, feminine and luxurious lingerie and loungewear that is designed specifically for them.
3. Clear vision of the market need. J [Company Name] knows what it takes to build upscale specialty ladies lingerie line. The
Company knows the customers, the obvious hole in the market that [Company Name] can fill and the Company knows how to
build the product.
[Company Name] | 5.0 Strategy and Implementation Summary 8
2011 [Company Name]
5.1.2 Weaknesses
Access to additional operating capital.
Owners are still climbing the "retail experience curve."
No plans to have a physical storefront location in a heavily traveled, traditional retail area.
Challenges of the seasonality of the business.
5.1.3 Opportunities
As of 2008, in the United States alone, there were more than 116,000,000 women over the age of 18, with 66,000,000 of those
between 30 and 61. Many of these women can and do shop at places like Victoria Secret, whose target demographic is 18 to 44.
Many do not; therefore, it is these women who are the Company's focus.
According to the NPD Group, Inc. (part of Standard and Poor's), the apparel industry generated 188.5 billion dollars in US retail sales
during 2009, down 5.2% from 2008. Sales of women's apparel accounted for 55.2% of all sales in 2009, with specialty stores
accounting for 30.8% of the overall total. [Company Name]'s initial target market will be the specialty stores market.
5.1.4 Threats
The downturn in the ecomony has impacted apparel sales--stock market predictors correlate with store sales. It has not
been stable since mid 2008.
Expansion of national stores into the local market: including Target, Wal-Mart and Victoria Secret.
Competition from a national store; or a store with greater financing or product resources could enter the market.
Continued price pressure due to competition or the weakening market reducing contribution margins.
Dramatic changes in design, including fabric colors and styles, creates obsolete or less profitable inventory.
5.2 Competitive Edge
[Company Name] has major advantages over its competition.
One of the owners is working in the industry as a sales representative, selling to stores in the region, watching how each
manages their business, knowing their missed opportunities.
The Company will have detailed records on each online customer, logging her purchases, size, brand preference, etc., for
customer follow-up and promotional purposes.
[Company Name] will launch the business with an aggressive advertising and promotional program.
The owners have excellent business skills, a strong background in inventory management and customer service.
5.3 Marketing Strategy
[Company Name] intends to build a sales team that will be responsible for generating sales leads on a regional, national and
international basis and for establishing connections with retail outlets.
A key factor in the success of [Company Name] will be its distribution. The company plans to use the following retail distribution
channels:
Department stores
Apparel specialty stores
Internet stores
Catalog stores
A key member of the team with 25 years’ experience of international sales and distribution of ladies lingerie will be responsible for
entrees into department stores such as Nordstrom, Neiman Marcus, Saks Fifth Avenue and other similar high end establishments.
He will also lead a sales team in targeting local boutiques and apparel specialty stores. After this has all been achieved, he will begin
[Company Name] | 5.0 Strategy and Implementation Summary 9
2011 [Company Name]
the mission of international distribution.
Simultaneously, [Company Name] will be marketing and selling via the Internet from its own website and distributing through other
existing lingerie online retailers. These retailers include Bare Necessities and Her Room.
Catalogs are another important method of distribution. [Company Name] intends to distribute through existing catalogs such as Soft
Surroundings and As We Change. As recent as 2006, 60.9 billion dollars were spent on direct mail orders.
5.4 Sales Strategy
[Company Name]'s goal is to sell a minimum of two units per transaction, an average item being $120.
Utilizing the online database system will enable [Company Name] to record a customer's contact information and purchases,
enabling the opportunity to create a contact list for promotions, special events and the arrival of new products.
[Company Name] believes it is important to remain an active member of the local business community supporting the Los
Angeles area, taking part in local promotions as well as being an active member in online fashion organizations.
The Company's knowledgeable staff will offer the highest level of service.
[Company Name] will strive to be placed in high-end department stores and boutiques to maintain an excellent profile.
5.4.1 Sales Forecast
The sales forecast monthly summary is included in the appendix. The annual sales projections are included here in the following
table.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Online Sales $479,979 $527,977 $580,774
Wholesales $1,215,218 $1,336,740 $1,470,414
Total Sales $1,695,197 $1,864,717 $2,051,188
Direct Cost of Sales Year 1 Year 2 Year 3
Manufacturing $571,470 $600,044 $630,046
Other $0 $0 $0
Subtotal Direct Cost of Sales $571,470 $600,044 $630,046
[Company Name] | 5.0 Strategy and Implementation Summary 10
2011 [Company Name]
Chart: Sales Monthly
Chart: Sales by Year
[Company Name] | 5.0 Strategy and Implementation Summary 11
2011 [Company Name]
6.0 Management Summary
[Company Name] has a very strong, experienced and professional management team with several years of combined experience.
With each member working in their area of specialization the Company will have every aspect of the business covered. Each member
has their area of expertise and percentage of ownership, creating a unified and synergistic team.
[Name]
[Name] was educated at UCLA in Los Angeles, California and graduated with a Bachelor’s Degree in Sociology in 1976. He then
continued his education at Pepperdine University in Malibu, California. He has much success in business and helping grow
companies from the start and turning them into multi-million dollar organizations. [Name] was the owner of Zest Provision Company
from 1979 through 1994. He was also the co-owner of Glen Rose Meat Company from 1994 through 2005. He currently works at
Momentous Insurance as of 2005 to present day.
[Name]
[Name] has over 30 years experience in business. real estate and restaurants, yet it was her experience as a consumer that led her to
create "[Company Name] Lingerie." [Name] had been searching for years for a sleepwear/loungewear product that was appropriate
for the modern woman with curves who was seeking an elegant and unabashedly sexy esthetic. In discussions with many other
women, it became clear that other women also felt that the market only offered products for the very young, or the very old or very
cold. It was not until Meryl Streep covered her deriere with a pillow so that her lover would not see it in "It's Complicated" that [Name]
decided it was time to bring this new concept to market. To accomplish this, [Name] assembled a team of the very best people to
bring her vision to light.
In 2000, [Name] founded the online legal services company, Selectlaw.com based on the idea that everyday people were unable to
seek legal advice due to the prohibitive costs associated with hiring a lawyer. Selectlaw.com offered consumers access to real
lawyers in real time for $2.00 per minute over the internet Selectlaw.com was then (and may still be today) the only online law firm
offering consumers real legal consultations, as opposed to companies like "Legal Zoom.com" that help consumers fill out legal papers
without any legal advice. Licensed in 12 states and growing when it closed during the internet crash, [Name] was instrumental in
obtaining funding for Selectlaw and forming strategic alliances with, among others, Siemans and MCI. Selectlaw was a provider of
legal services to clients of Arag Insurance, the then largest provider of pre-paid legal plans in the world. A point of pride for [Name] is
that to this day, no one has been able to duplicate the business model that Selectlaw.com successfully implemented over ten years
ago. [Name] is dedicated to providing [Company Name] with the same vision and insight that she brought to Selectlaw a decade ago.
[Name]
[Name] has over 20 years experience in the fashion industry, from marketing and design to sales and public relations. Her work has
helped put brands like Isabella Fiore, Hugo Boss, and the internationally acclaimed, Los Angeles based store Kitson on the map.
Putting her stamp on the fashion world, however, wasn't enough for Holland. She wants to inspire the fashion-conscious consumer to
become eco-conscious as well. In early 2007, she launched Zooey Green, a line of stunning designer graphic tees made of 100%
organic cotton. In a bold statement of her enlightened motives, she partnered the brand with Healthy Child Healthy World.
Today, Holland is applying her fashion expertise and impeccable taste to "defining style and grace as green." She feels that the flaw
in today's green apparel mentality is its exclusive focus on natural raw materials without regard for fashion appeal. Holland is
approaching LIV GRN with a more encompassing philosophy, realizing that people like herself want to look good while helping the
environment.
[Company Name] | 6.0 Management Summary 12
2011 [Company Name]
[Name]
[Name] got into the lingerie business in 1986 when his father hired him as part of the third generation in intimate
apparel. He has worked in a family business for 25 years, which has helped him tremendously in interpersonal relationships and
problem solving.
Through the years in the business [Name] has managed a shipping department, developed a customer service department, and
was assistant sales manager. [Name] now directs International Sales and handles key account sales. [Name] has built an
international sales force, dealt with export issues worldwide and has set up successful trade shows both domestically and
internationally. Having the background of working both the inside and out in the field, [Name] has a great perspective
and helps in serving existing retailers and opening new accounts. He also shares his knowledge of the market, collections and
trends helping him to assist retailers in maximizing their sales.
[Name]
After graduating from Otis College of Art and Design in 2003 with honors [Name] embarked on her fashion career and headed to
London, England. This is where she began her experience in Luxury Lingerie and loungewear. Having had work placements with the
likes of Roland Mouret and Preen she soon took to the direction of intimates and began working at Madame V an innovative lifestyle
brand. There she learned the adventurous and sensual silhouettes that resonate in her work today. She was later offered a position to
return to her home Los Angeles, where she now resides and now continues to consult for intimate and lifestyle brands.
[Company Name] | 6.0 Management Summary 13
2011 [Company Name]
6.1 Personnel Plan
The table below contains the details of [Company Name]'s personnel plan.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Director of Sales & Distribution $170,000 $178,500 $187,425
Fashion Designer $79,000 $82,950 $87,098
Production Manager $81,000 $85,050 $89,303
Administration $66,000 $69,300 $72,765
Total People 4 5 6
Total Payroll $396,000 $415,800 $436,591
[Company Name] | 14
7.0 Financial Plan
2011 [Company Name]
7.0 Financial Plan
Being a retail store we will not be selling on credit, nor will we have lay-aways.
The first year we will keep the part-time help to a minimum.
Due to the soft economy we plan on a better interest rate than offered in the past five years.
7.1 Start-up Funding
[Company Name]'s start-up costs are detailed above, in the Start-up Table. The following table shows how these start-up costs will
be funded by investor capital.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $126,860
Start-up Assets to Fund $85,000
Total Funding Required $211,860
Assets
Non-cash Assets from Start-up $80,000
Cash Requirements from Start-up $5,000
Additional Cash Raised $0
Cash Balance on Starting Date $5,000
Total Assets $85,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Additional Investment Requirement $211,860
Total Planned Investment $211,860
Loss at Start-up (Start-up Expenses) ($126,860)
Total Capital $85,000
Total Capital and Liabilities $85,000
Total Funding $211,860
[Company Name] | 15
7.0 Financial Plan
2011 [Company Name]
7.2 Important Assumptions
The Company's sales paid for by credit card will be deposited in a business checking account within 48 hours. The business
checking account will be in Los Angeles, California. The approximate reported current interest rates as those below.
7.3 Break-even Analysis
The following table and chart show our Break-even Analysis. Fixed costs are based on operating expenses in the first year.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $78,795
Assumptions:
Average Percent Variable Cost 34%
Estimated Monthly Fixed Cost $52,232
Chart: Break-even Analysis
[Company Name] | 16
7.0 Financial Plan
2011 [Company Name]
7.4 Projected Profit and Loss
The following table will indicate projected Profit and Loss.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $1,695,197 $1,864,717 $2,051,188
Direct Cost of Sales $571,470 $600,044 $630,046
Other $0 $0 $0
Total Cost of Sales $571,470 $600,044 $630,046
Gross Margin $1,123,727 $1,264,673 $1,421,142
Gross Margin % 66.29% 67.82% 69.28%
Expenses
Payroll $396,000 $415,800 $436,591
Sales and Marketing and Other Expenses $90,000 $95,275 $98,133
Depreciation $500 $515 $530
Utilities $3,900 $4,680 $4,914
Telephone $3,000 $3,150 $3,308
Insurance $8,400 $8,500 $8,600
Merchant Account Fees $44,258 $46,471 $48,794
Business Supplies $1,955 $2,053 $2,155
Rent $0 $26,400 $27,720
Storage $4,800 $10,080 $10,584
Travel $12,320 $12,936 $13,583
Branding/Design $15,000 $18,375 $19,294
Courier/Delivery Service $16,651 $17,484 $18,358
Trade Show Expense $30,000 $31,500 $33,075
Total Operating Expenses $626,784 $693,219 $725,639
Profit Before Interest and Taxes $496,943 $571,454 $695,503
EBITDA $497,443 $571,969 $696,033
Interest Expense $0 $0 $0
Taxes Incurred $149,083 $171,436 $208,651
Net Profit $347,860 $400,018 $486,852
Net Profit/Sales 20.52% 21.45% 23.74%
[Company Name] | 17
7.0 Financial Plan
2011 [Company Name]
Chart: Profit Monthly
Chart: Profit Yearly
[Company Name] | 18
7.0 Financial Plan
2011 [Company Name]
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
[Company Name] | 19
7.0 Financial Plan
2011 [Company Name]
7.5 Projected Cash Flow
The following chart and table will indicate projected cash flow.
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $423,799 $466,179 $512,797
Cash from Receivables $1,264,540 $1,397,852 $1,537,637
Subtotal Cash from Operations $1,688,339 $1,864,031 $2,050,434
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 $170,000 $170,000 $170,000
Sales of Long-term Assets $0 $0 $0
New Investment Received $250,000 $0 $0
Subtotal Cash Received $2,108,339 $2,034,031 $2,220,434
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $396,000 $415,800 $436,591
Bill Payments $796,872 $1,090,107 $1,122,510
Subtotal Spent on Operations $1,192,872 $1,505,907 $1,559,101
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 $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,192,872 $1,505,907 $1,559,101
Net Cash Flow $915,467 $528,124 $661,333
Cash Balance $920,467 $1,448,591 $2,109,924
[Company Name] | 20
7.0 Financial Plan
2011 [Company Name]
Chart: Cash
[Company Name] | 21
7.0 Financial Plan
2011 [Company Name]
7.6 Projected Balance Sheet
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $920,467 $1,448,591 $2,109,924
Accounts Receivable $6,858 $7,544 $8,298
Inventory $61,406 $53,257 $55,919
Other Current Assets ($170,000) ($340,000) ($510,000)
Total Current Assets $818,731 $1,169,392 $1,664,142
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $500 $1,015 $1,545
Total Long-term Assets ($500) ($1,015) ($1,545)
Total Assets $818,231 $1,168,377 $1,662,597
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $135,371 $85,499 $92,867
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $135,371 $85,499 $92,867
Long-term Liabilities $0 $0 $0
Total Liabilities $135,371 $85,499 $92,867
Paid-in Capital $461,860 $461,860 $461,860
Retained Earnings ($126,860) $221,000 $621,018
Earnings $347,860 $400,018 $486,852
Total Capital $682,860 $1,082,878 $1,569,730
Total Liabilities and Capital $818,231 $1,168,377 $1,662,597
Net Worth $682,860 $1,082,878 $1,569,730
[Company Name] | 22
7.0 Financial Plan
2011 [Company Name]
7.7 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC)
code 5632, Women's Accessory and Specialty Stores, are shown for comparison.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 10.00% 10.00% -14.93%
Percent of Total Assets
Accounts Receivable 0.84% 0.65% 0.50% 22.63%
Inventory 7.50% 4.56% 3.36% 36.53%
Other Current Assets -20.78% -29.10% -30.67% 28.90%
Total Current Assets 100.06% 100.09% 100.09% 88.06%
Long-term Assets -0.06% -0.09% -0.09% 11.94%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 16.54% 7.32% 5.59% 32.52%
Long-term Liabilities 0.00% 0.00% 0.00% 30.21%
Total Liabilities 16.54% 7.32% 5.59% 62.73%
Net Worth 83.46% 92.68% 94.41% 37.27%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 66.29% 67.82% 69.28% 32.09%
Selling, General & Administrative Expenses 61.29% 51.25% 44.75% 12.21%
Advertising Expenses 4.71% 3.92% 3.51% 0.92%
Profit Before Interest and Taxes 29.31% 30.65% 33.91% 5.70%
Main Ratios
Current 6.05 13.68 17.92 2.38
Quick 5.59 13.05 17.32 1.25
Total Debt to Total Assets 16.54% 7.32% 5.59% 62.73%
Pre-tax Return on Net Worth 72.77% 52.77% 44.31% 40.54%
Pre-tax Return on Assets 60.73% 48.91% 41.83% 15.11%
[Company Name] | 23
7.0 Financial Plan
2011 [Company Name]
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 20.52% 21.45% 23.74% n.a
Return on Equity 50.94% 36.94% 31.02% n.a
Activity Ratios
Accounts Receivable Turnover 185.39 185.39 185.39 n.a
Collection Days 1 2 2 n.a
Inventory Turnover 11.83 10.47 11.54 n.a
Accounts Payable Turnover 6.89 12.17 12.17 n.a
Payment Days 27 39 29 n.a
Total Asset Turnover 2.07 1.60 1.23 n.a
Debt Ratios
Debt to Net Worth 0.20 0.08 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $683,360 $1,083,893 $1,571,275 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.48 0.63 0.81 n.a
Current Debt/Total Assets 17% 7% 6% n.a
Acid Test 5.54 12.97 17.23 n.a
Sales/Net Worth 2.48 1.72 1.31 n.a
Dividend Payout 0.00 0.00 0.00 n.a
[Company Name] | 24
7.0 Financial Plan
Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales
Online Sales 0% $29,704 $33,004 $36,671 $36,671 $38,720 $39,823 $40,981 $42,197 $43,474 $44,814 $46,221 $47,699
Wholesales 0% $35,575 $39,528 $43,920 $52,704 $63,245 $75,894 $91,073 $109,288 $131,146 $157,375 $188,850 $226,620
Total Sales $65,279 $72,532 $80,591 $89,375 $101,965 $115,717 $132,054 $151,485 $174,620 $202,189 $235,071 $274,319
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Manufacturing $35,903 $37,698 $39,583 $41,562 $43,640 $45,822 $48,113 $50,519 $53,045 $55,697 $58,482 $61,406
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $35,903 $37,698 $39,583 $41,562 $43,640 $45,822 $48,113 $50,519 $53,045 $55,697 $58,482 $61,406
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Director of Sales & Distribution 0% $14,163 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167 $14,167
Fashion Designer 0% $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,587
Production Manager 0% $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750
Administration 0% $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $32,996 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,004
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and
Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $65,279 $72,532 $80,591 $89,375 $101,965 $115,717 $132,054 $151,485 $174,620 $202,189 $235,071 $274,319
Direct Cost of Sales $35,903 $37,698 $39,583 $41,562 $43,640 $45,822 $48,113 $50,519 $53,045 $55,697 $58,482 $61,406
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $35,903 $37,698 $39,583 $41,562 $43,640 $45,822 $48,113 $50,519 $53,045 $55,697 $58,482 $61,406
Gross Margin $29,376 $34,834 $41,008 $47,813 $58,325 $69,895 $83,941 $100,966 $121,575 $146,492 $176,589 $212,913
Gross Margin % 45.00% 48.03% 50.88% 53.50% 57.20% 60.40% 63.57% 66.65% 69.62% 72.45% 75.12% 77.62%
Page 3
Appendix
Expenses
Payroll $32,996 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,004
Sales and Marketing $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
and Other Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500
Utilities $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325
Telephone $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Insurance $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Merchant Account $2,781 $2,920 $3,066 $3,219 $3,380 $3,549 $3,726 $3,912 $4,108 $4,313 $4,529 $4,755
Fees
Business Supplies $1,250 $0 $0 $235 $0 $0 $235 $0 $0 $235 $0 $0
Rent 12% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Storage 12% $0 $0 $0 $0 $0 $0 $800 $800 $800 $800 $800 $800
Travel 12% $360 $360 $2,360 $360 $360 $2,360 $360 $360 $2,360 $360 $360 $2,360
Branding/Design 12% $2,500 $2,500 $2,500 $0 $2,500 $0 $0 $2,500 $0 $0 $0 $2,500
Courier/Delivery 12% $0 $0 $0 $1,639 $1,688 $1,739 $1,791 $1,845 $1,900 $1,957 $2,016 $2,076
Service
Trade Show Expense $0 $0 $0 $10,000 $0 $0 $0 $10,000 $0 $0 $0 $10,000
Total Operating $48,662 $47,555 $49,701 $57,228 $49,703 $49,423 $48,687 $61,192 $50,943 $49,440 $49,480 $64,770
Expenses
Profit Before Interest ($19,286) ($12,721) ($8,693) ($9,415) $8,622 $20,472 $35,254 $39,774 $70,632 $97,052 $127,109 $148,143
and Taxes
EBITDA ($19,286) ($12,721) ($8,693) ($9,415) $8,622 $20,472 $35,254 $39,774 $70,632 $97,052 $127,109 $148,643
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($5,786) ($3,816) ($2,608) ($2,825) $2,587 $6,142 $10,576 $11,932 $21,190 $29,116 $38,133 $44,443
Net Profit ($13,500) ($8,905) ($6,085) ($6,591) $6,035 $14,330 $24,678 $27,842 $49,442 $67,936 $88,976 $103,700
Net Profit/Sales -20.68% -12.28% -7.55% -7.37% 5.92% 12.38% 18.69% 18.38% 28.31% 33.60% 37.85% 37.80%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Cash Received
Cash from Operations
Cash Sales $16,320 $18,133 $20,148 $22,344 $25,491 $28,929 $33,014 $37,871 $43,655 $50,547 $58,768 $68,580
Cash from Receivables $47,327 $54,218 $60,242 $66,812 $76,159 $86,444 $98,632 $113,128 $130,387 $150,953 $175,481 $204,758
Subtotal Cash from $63,647 $72,351 $80,390 $89,155 $101,650 $115,373 $131,646 $150,999 $174,042 $201,500 $234,249 $273,338
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 (interest- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $170,000
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $313,647 $72,351 $80,390 $89,155 $101,650 $115,373 $131,646 $150,999 $174,042 $201,500 $234,249 $443,338
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Expenditures from Operations
Cash Spending $32,996 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,004
Bill Payments $329 $10,952 $42,488 $55,874 $64,947 $65,193 $70,772 $77,213 $93,104 $95,010 $104,304 $116,685
Subtotal Spent on Operations $33,325 $43,952 $75,488 $88,874 $97,947 $98,193 $103,772 $110,213 $126,104 $128,010 $137,304 $149,689
Page 5
Appendix
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 Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $33,325 $43,952 $75,488 $88,874 $97,947 $98,193 $103,772 $110,213 $126,104 $128,010 $137,304 $149,689
Net Cash Flow $280,322 $28,399 $4,901 $282 $3,704 $17,180 $27,874 $40,786 $47,937 $73,489 $96,945 $293,649
Cash Balance $285,322 $313,720 $318,621 $318,903 $322,606 $339,787 $367,660 $408,446 $456,384 $529,873 $626,818 $920,467
Page 6
Appendix
Table: Balance Sheet
Pro Forma
Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting
Balances
Current Assets
Cash $5,000 $285,322 $313,720 $318,621 $318,903 $322,606 $339,787 $367,660 $408,446 $456,384 $529,873 $626,818 $920,467
Accounts $0 $1,632 $1,813 $2,015 $2,234 $2,549 $2,893 $3,301 $3,787 $4,366 $5,055 $5,877 $6,858
Receivable
Inventory $80,000 $44,097 $37,698 $39,583 $41,562 $43,640 $45,822 $48,113 $50,519 $53,045 $55,697 $58,482 $61,406
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($170,000)
Assets
Total Current $85,000 $331,051 $353,232 $360,219 $362,699 $368,796 $388,502 $419,075 $462,752 $513,794 $590,625 $691,177 $818,731
Assets
Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500
Depreciation
Total Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($500)
Assets
Total Assets $85,000 $331,051 $353,232 $360,219 $362,699 $368,796 $388,502 $419,075 $462,752 $513,794 $590,625 $691,177 $818,231
Page 7
Appendix
Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Capital
Current
Liabilities
Accounts $0 $9,551 $40,636 $53,709 $62,780 $62,841 $68,216 $74,112 $89,948 $91,547 $100,441 $112,017 $135,371
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $9,551 $40,636 $53,709 $62,780 $62,841 $68,216 $74,112 $89,948 $91,547 $100,441 $112,017 $135,371
Liabilities
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $0 $9,551 $40,636 $53,709 $62,780 $62,841 $68,216 $74,112 $89,948 $91,547 $100,441 $112,017 $135,371
Paid-in Capital $211,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860 $461,860
Retained ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860) ($126,860)
Earnings
Earnings $0 ($13,500) ($22,405) ($28,490) ($35,081) ($29,045) ($14,715) $9,963 $37,805 $87,247 $155,184 $244,160 $347,860
Total Capital $85,000 $321,500 $312,595 $306,510 $299,920 $305,955 $320,285 $344,963 $372,805 $422,247 $490,184 $579,160 $682,860
Total Liabilities $85,000 $331,051 $353,232 $360,219 $362,699 $368,796 $388,502 $419,075 $462,752 $513,794 $590,625 $691,177 $818,231
and Capital
Net Worth $85,000 $321,500 $312,595 $306,510 $299,920 $305,955 $320,285 $344,963 $372,805 $422,247 $490,184 $579,160 $682,860
Page 8