Business Plan for Plus Size Women's Intimate Apparel

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									Business Plan for Plus Size
Women's Intimate Apparel
This Business Plan for a Plus Size Women's Intimate Apparel company allows
entrepreneurs or business owners to create a comprehensive and professional business
plan. This template form allows a business to outline the company's objectives and
detail both current company information as well as any past performance. Companies
should include a complete market analysis in their plan to help showcase why their
business strategy will be effective in the market. Future company plans, including
production targets, management strategy, and financial forecasting, should be used to
demonstrate and confirm that the company's short-term and long-term objective can
and will be met. This model plan can be customized to best fit the unique needs of any
entrepreneur or owner that is seeking to create a strong business plan.
           [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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     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
                                                                                                    7.0 Financial Plan
                                 2011 [Company Name]


    Chart: Highlights

                                          Highlights

        $2,000,000

        $1,800,000

        $1,600,000

        $1,400,000
                                                                                                    Sales
        $1,200,000
                                                                                                    Gross Margin
        $1,000,000
                                                                                                    Net Profit
         $800,000

         $600,000

         $400,000

         $200,000

                 $0
                             Year 1                Year 2                 Year 3



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] | 2
                                                                                                    7.0 Financial Plan
                                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] | 3
                                                                                                7.0 Financial Plan
                                 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] | 4
                                                                                                  7.0 Financial Plan
                                2011 [Company Name]


    Chart: Start-up

                                                         Start-up


      $210,000

      $180,000

      $150,000

      $120,000

       $90,000

       $60,000

       $30,000

               $0
                       Expenses                 Assets              Investment                Loans



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] | 5
                                                                                                       7.0 Financial Plan
                                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] | 6
                                                                                                     7.0 Financial Plan
                                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] | 7
                                                                                                      7.0 Financial Plan
                                 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] | 8
                                                                                                      7.0 Financial Plan
                                 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.

                                                                                                           [Company Name] | 9
                                                                                                            7.0 Financial Plan
                                2011 [Company Name]


    He will also lead a sales team in targeting local boutiques and apparel specialty stores. After this has all been achieved, he will begin
    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] | 10
                                                                                                      7.0 Financial Plan
                           2011 [Company Name]


Chart: Sales Monthly

                                Sales Monthly
 $300,000

 $270,000

 $240,000

 $210,000

 $180,000
                                                                             Online Sales
 $150,000
                                                                             Wholesales
 $120,000

  $90,000

  $60,000

  $30,000

        $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: Sales by Year

                                Sales by Year

 $2,100,000

 $1,800,000


 $1,500,000
                                                                             Online Sales
 $1,200,000
                                                                             Wholesales
   $900,000

   $600,000


   $300,000

         $0
                       Year 1          Year 2           Year 3




                                                                            [Company Name] | 11
                                                                             7.0 Financial Plan
                                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] | 12
                                                                                                       7.0 Financial Plan
                           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] | 13
                                                                                              7.0 Financial Plan
                                   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

                                             Break-even Analysis
       $20,000


       $10,000


            $0


      ($10,000)


      ($20,000)


      ($30,000)


      ($40,000)


      ($50,000)
                      $0          $20,000       $40,000       $60,000       $80,000      $100,000
                           $10,000       $30,000       $50,000       $70,000       $90,000      $110,000




                                                                                                 [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

                                            Profit Monthly

 $100,000


   $80,000


   $60,000


   $40,000


   $20,000


         $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


 $500,000

 $450,000

 $400,000
 $350,000

 $300,000

 $250,000

 $200,000

 $150,000
 $100,000

  $50,000

        $0
                        Year 1                   Year 2                    Year 3




                                                                                       [Company Name] | 18
                                                                                        7.0 Financial Plan
                             2011 [Company Name]


Chart: Gross Margin Monthly

                                      Gross Margin Monthly
 $220,000

 $200,000
 $180,000

 $160,000
 $140,000

 $120,000
 $100,000

  $80,000
  $60,000

  $40,000
  $20,000

        $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



 $1,400,000

 $1,200,000

 $1,000,000

   $800,000

   $600,000

   $400,000

   $200,000

         $0
                         Year 1                    Year 2                   Year 3




                                                                                       [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

                                                      Cash
 $1,000,000

   $900,000
   $800,000

   $700,000

   $600,000
                                                                                                                                         Net Cash Flow
   $500,000
                                                                                                                                         Cash Balance
   $400,000

   $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




                                                                                                                                         [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
                                                               Appendix

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