[Company Name]
[Address]
[City, State ZIP]
Tel. XXX-XXX-XXXX
Fax. XXX-XXX-XXXX
BUSINESS PLAN
© Copyright 2012 Docstoc Inc. 1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Company Name] in this business plan is confidential; therefore,
reader agrees not to disclose it without the express written permission of [Company Name]
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm
or damage to [Company Name]
Upon request, this document is to be immediately returned to [Company Name]
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
© Copyright 2012 Docstoc Inc. 2
Vincent White O.D. 2010
1.0 Executive Summary .................................................................................................................................. 1
1.1 Objectives ............................................................................................................................................ 2
1.2 Mission ................................................................................................................................................ 2
1.3 Keys to Success ................................................................................................................................... 2
2.0 Company Summary .................................................................................................................................. 2
2.1 Company Ownership ............................................................................................................................ 2
2.2 Company History .................................................................................................................................. 2
3.0 Products .................................................................................................................................................. 5
4.0 Market Analysis Summary ......................................................................................................................... 5
4.1 Market Segmentation ............................................................................................................................ 6
Table: Market Analysis ........................................................................................................................... 6
4.2 Target Market Segment Strategy ........................................................................................................... 7
4.3 Industry Analysis .................................................................................................................................. 7
4.3.1 Competition and Buying Patterns .................................................................................................... 7
5.0 Strategy and Implementation Summary ...................................................................................................... 7
5.1 Competitive Edge ................................................................................................................................. 8
5.2 Marketing Strategy................................................................................................................................ 8
5.3 Sales Strategy ...................................................................................................................................... 8
5.3.1 Sales Forecast .............................................................................................................................. 8
Table: Sales Forecast......................................................................................................................... 9
5.4 Milestones ......................................................................................................................................... 11
Table: Milestones ................................................................................................................................. 11
6.0 Management Summary ........................................................................................................................... 11
6.1 Personnel Plan ................................................................................................................................... 11
Table: Personnel .................................................................................................................................. 12
7.0 Financial Plan ........................................................................................................................................ 12
7.1 Important Assumptions ....................................................................................................................... 12
7.2 Break-even Analysis ........................................................................................................................... 12
Table: Break-even Analysis................................................................................................................... 12
7.3 Projected Profit and Loss .................................................................................................................... 14
Table: Profit and Loss........................................................................................................................... 14
7.4 Projected Cash Flow ........................................................................................................................... 17
Table: Cash Flow ................................................................................................................................. 17
7.5 Projected Balance Sheet ..................................................................................................................... 17
Table: Balance Sheet ........................................................................................................................... 19
7.6 Business Ratios.................................................................................................................................. 20
7.6 Business Ratios.................................................................................................................................. 20
Table: Ratios ....................................................................................................................................... 20
APPENDIX
[Company Name]
2010
1.0 Executive Summary
[Company Name] is a sole proprietorship company formed in Los Angeles County in 2006. Dr. White has served for many industry
related committees, received many awards and has also been a sports consultant to the sports industry, including the L.A. Raiders,
L.A. Lakers, UCLA and Pepperdine University football, baseball and volleyball teams as well as the California Angels.
[Company Name] has been practicing optimology for 39 years and currently runs a medical office in Sherman Oaks, California in Los
Angeles County. Dr. White provides exams and supplies to a vast variety of patients, including patients at assisted living and mental
health facilities. [Company Name] also can remove foreign bodies and other ailments, prescribe antibiotic and glaucoma
medications.
The purpose of this plan is to attain grant funding in the amount of $300,000 to upgrade office and laboratory equipment, purchase
inventory, expand the business and hire additional employees in order to better serve patients. [Company Name] also would like to
expand services and supplies to the Cherokee Indian Nation in Texas and many other Indian reservations in the United States.
[Company Name]
[Address]
[City, State ZIP]
Tel. XXX-XXX-XXXX
[Company Name] Page 1
[Company Name]
2010
1.1 Objectives
The objectives for [Company Name] are:
1. To attain upgraded equipment to better serve patients at assisted living and mental health facilities.
2. To provide care to men, women and children that reside in nearby Indian reservations.
3. To add additional medically trained personnel to assist in helping more patients in and out of the facility.
1.2 Mission
[Company Name] seeks to better provide the field of ophthalmology with up-to-date equipment and supplies which will facilitate the
treatment of ophthalmologic diseases and conditions. Close personal attention to each patient is essential to providing a quality
experience for all patients.
1.3 Keys to Success
Keys to success for [Company Name] will include:
1. Maintaining a reputable and untarnished reputation in the community.
2. Quality care.
3. Commitment to the success and happiness of patients and staff.
4. Flexible hours and accessibility.
2.0 Company Summary
[Company Name] has been practicing optimology for 39 years and currently runs a medical office in Sherman Oaks, California in Los
Angeles County. Dr. White provides exams and supplies to a vast variety of patients, including patients at assisted living and mental
health facilities. [Company Name] also can remove foreign bodies and other ailments, prescribe antibiotic and glaucoma
medications. The company also would like to provide these services and supplies to the Cherokee Indian Nation in Texas.
2.1 Company Ownership
The company, [Company Name], is a sole proprietorship registered DBA by the owner in Los Angeles, California.
2.2 Company History
[Company Name] has been practicing optimology for 39 years and currently runs a medical office in Sherman Oaks, California in Los
Angeles County. Dr. White provides exams and supplies to a vast variety of patients, including patients at assisted living and mental
health facilities. [Company Name] also can remove foreign bodies and other ailments, prescribe antibiotic and glaucoma
medications. The company also would like to provide these services and supplies to the Cherokee Indian Nation in Texas.
[Company Name] holds many industry related certifications and memberships, including but not limited to:
MEMBERSHIPS
1981 - Present - Allied Health Personnel for California Department of Education
1979 - Present - Council on Sports Vision
1974 - Present - International Orthokeratology
[Company Name] Page 2
[Company Name]
2010
1972 - Present - College of Optometrists in Vision Development
1971 - Present - California Optometric Association
1967 - Present - American Optometric Association
SPECIAL INTERESTS
1999 - Present - Optometic Consultant for Childsight, a division of Helen Keller Worldwide
1996 - Present - Optometric Consultant for LAUSD regarding preschool through high school patients
1975 - 1985 - Vision screening and remediation for visually related learning disorders at the San Fernando Learning Skills Laboratory
[Company Name] is a sole proprietorship company formed in Los Angeles County in 2006. Dr. White has served for many industry
related committees, received many awards and has also been a sports consultant to the sports industry, including the L.A. Raiders,
L.A. Lakers, UCLA and Pepperdine University football, baseball and volleyball teams as well as the California Angels.
Table: Past Performance
Past Performance
2007 2008 2009
Sales $331,254 $349,665 $388,676
Gross Margin $331,254 $349,665 $388,676
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $267,656 $300,718 $299,926
Balance Sheet
2007 2008 2009
Current Assets
Cash $0 $0 $0
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $20,000 $20,000 $20,000
Long-term Assets
Long-term Assets $140,000 $120,000 $100,000
Accumulated Depreciation $1,000 $1,000 $1,000
Total Long-term Assets $139,000 $119,000 $99,000
Total Assets $159,000 $139,000 $119,000
[Company Name] Page 3
[Company Name]
2010
Current Liabilities
Accounts Payable $0 $0 $3,000
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $3,000
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $3,000
Paid-in Capital $0 $0 $0
Retained Earnings $156,593 $141,076 $106,887
Earnings $2,407 ($2,076) $9,113
Total Capital $159,000 $139,000 $116,000
Total Capital and Liabilities $159,000 $139,000 $119,000
Other Inputs
Payment Days 0 0 0
[Company Name] Page 4
[Company Name]
2010
3.0 Products
[Company Name] provides optometric services to the community by offering:
Eye examinations
Minor eye surgery
Sports consulting
Prescription of needed rated medications
At home, assisted living and mental health facility visits
[Company Name] offers comprehensive optometric services for both the residential and in-office patients.
4.0 Market Analysis Summary
Optometry is a health care profession concerned with eyes and related structures, as well as vision, visual systems, and vision
information processing in humans.
Like most professions, optometry education, certification, and practice is regulated in most countries. Optometrists and optometry-
related organizations interact with governmental agencies, other health care professionals, and the community to deliver eye and
vision care. Optometrists are one of three eye care professionals, the others being ophthalmologists (medical doctors), and opticians.
Many patients will be more concerned about diseases that affect vision than other, more lethal diseases when told that they may have
an eye problem. Being deprived of sight can have a devastating effect on the psyche, as well as economic and social effects. Many
blind individuals require significant assistance with activities of daily living and are often unable to continue gainful employment that
might have previously been held while they could see. It is also well-known that serious diseases such as myasthenia gravis,
diabetes, and atherosclerosis can show their first signs during an eye examination, well-before a patient experiences any symptoms.
The maintenance of ocular health and correction of eye problems that decrease vision contribute greatly to the ability to appreciate
the longer lifespan that all of medicine continues to allow. Given the importance of vision to quality of life, many optometrists consider
their job to be rewarding, as they are often able to restore or improve a patient's sight.
Los Angeles County (incorporated as the County of Los Angeles) is a county in California and is the most populous county in the
United States. Figures from the U.S. Census Bureau give an estimated 2009 population of 9,848,011 residents, while the California
Department of Finance lists a January 1, 2009, estimate of 10,393,185. The county seat is the city of Los Angeles, the largest city in
California and the second-largest city in the United States.
The county is home to 88 incorporated cities and many unincorporated areas. The southern portion is the most heavily urbanized area
and is home to the vast majority of the population which lives along the Southern California coastline and the inland basins and
valleys. The northern half is a large expanse of less-populated desert including the Santa Clarita Valley and the Antelope Valley,
which encompasses the northeastern part of the county and is adjacent to Kern County. In between these portions of the county sit
the San Gabriel Mountains and the vast wilderness known as the Angeles National Forest.
The county is home to over a quarter of all California residents. One of the most diverse counties in the country, it holds most of the
principal cities encompassing the Greater Los Angeles Area and is the core of the five counties that make up the area. In 2004, the
county's population was larger than the individual populations of 42 states considered separately, and is more populous than the
aggregate of the 11 least populous states. It is similar in land area to the state of Connecticut and in population to the state of
Michigan within the United States, or similar in land area to Trinidad and Tobago and in population to Bolivia. If Los Angeles County
were a nation, its GDP would be among the 20 largest countries in the world.
As of the census of 2000, there were 9,519,338 people, 3,133,774 households, and 2,137,233 families residing in the county. The
population density was 2,344 people per square mile (905/km²). There were 3,270,909 housing units at an average density of 806 per
square mile (311/km²). The racial makeup of the county is 48.71% White[15] 11.0% African American, 0.81% Native American, 10.0%
Asian, 0.28% Pacific Islander, 23.53% from other races, and 4.94% from two or more races. 44.56% of the population is Hispanic or
Latino of any race. The largest ancestry groups are German (6%), Irish (5%), English (4%) and Italian (3%). 45.87% of the population
[Company Name] Page 5
[Company Name]
2010
reported speaking English at home; 37.89% spoke Spanish as their first language, 2.22% Tagalog, 1.98% Chinese, 1.87% Korean,
and 1.57% Armenian.
Because the county is so populous, what is not so evident is that it has the largest Native American population of any county in the
nation: according to the 2000 census, it has more than 153,550 people of indigenous descent. "The invisible population that is virtually
ignored by the census is that of indigenous people from Mexico, Central and South America."
There were 3,133,774 households out of which 36.80% had children under the age of 18 living with them, 47.6% were married
couples living together, 14.7% had a female householder with no husband present, and 31.8% were non-families. 24.6% of all
households were made up of individuals and 7.1% had someone living alone who was 65 years of age or older. The average
household size was 2.98 and the average family size was 3.61.
In the county the population was spread out with 28.0% under the age of 18, 10.3% from 18 to 24, 32.6% from 25 to 44, 19.4% from
45 to 64, and 9.7% who were 65 years of age or older. The median age was 32 years. For every 100 females there were 97.7 males.
For every 100 females age 18 and over, there were 95.0 males.
The median income for a household in the county was $42,189, and the median income for a family was $46,452. Males had a
median income of $36,299 versus $30,981 for females. The per capita income for the county was $20,683. There are 14.4% of
families living below the poverty line and 17.9% of the population, including 24.2% of under 18 and 10.5% of those over 64.
4.1 Market Segmentation
In Office Patients
The bulk of the population, these patients seek out the highest quality care in optometry, typically regardless of price. Most patients
realize the importance of their vision and will not take chances with respect to their sight.
Outcall Patients
These patients will primarily be targeted by [Company Name] as they are less capable of traveling due to illness, handicap or access
to these services. These patients will be residing in assisted living, mental health or community facilities.
Table: Market Analysis
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
In Office Patients 5% 900,000 945,000 992,250 1,041,863 1,093,956 5.00%
Outcall Patients 5% 900,000 945,000 992,250 1,041,863 1,093,956 5.00%
Total 5.00% 1,800,000 1,890,000 1,984,500 2,083,726 2,187,912 5.00%
[Company Name] Page 6
[Company Name]
2010
4.2 Target Market Segment Strategy
[Name], O.D. will focus its marketing strategies on building market share among the outcall patients. For this customer
segment, [Name], O.D. will offer a up-to-date equipment and supplies and travel to them which will help the patient to gain increased
visual acuity with less of a risk of complications.
4.3 Industry Analysis
This industry comprises establishments of health practitioners having the degree of O.D. (Doctor of optometry) primarily engaged in
the independent practice of optometry. These practitioners provide eye examinations to determine visual acuity or the presence of
vision problems and to prescribe eyeglasses, contact lenses and eye exercises. They operate private or group practices in their own
offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers, and may also provide the same
service as opticians, such as selling and fitting prescription eyeglasses and contact lenses.
4.3.1 Competition and Buying Patterns
Establishing a market value for an optometric practice has long been a process cloaked in mystery for many optometric practitioners.
The methods of many practice management specialists within the field differ greatly when assigning a value to a practice -- each has
his "unique" formula. However, the demographics and personality characteristics of the optometric population are changing
dramatically.
Primarily, optometry has been revenue dependent upon the retail nature of our business, and although this still continues to be true,
progressive practitioners report that an increasingly greater proportion of their revenues are currently generated from the provision of
services. Practices have become more sophisticated in nature. In order to compete, optometrists have had to invest in their office
infrastructure -- more investment in professional equipment, more continuing education and the increase of automating their office
processes and lastly the additional costs that are commonly associated with keeping the appearance of the practice current and up to
date.
5.0 Strategy and Implementation Summary
The key element in [Company Name]'s strategy is to market its technology to both those performing the procedure as well as to those
on which the procedure will be performed. Once research data and publicity have been generated, the sales force will step in to
encourage the initial investment in the laser required for the procedure, creating a "demand push." After this investment has been
made, a "demand pull" will be generated for the components required for institutions to perform the procedure.
[Company Name] Page 7
[Company Name]
2010
Ophthalmologist training for the NICS procedure will be available at six sites throughout the U.S.: San Francisco, Boston, Atlanta,
Philadelphia, Kansas City and Durham, NC. Each site will have in-depth training sessions led by a prominent ophthalmic surgeon.
The sales team will begin with six seasoned sales personnel and swell to forty-four members by Year 5. The sales team will work
closely with laser manufacturers in order to promote the technology to patients and surgeons.
Those performing the procedure will be able to charge a premium for providing patients with access to this superior technology.
5.1 Competitive Edge
[Company Name] seeks to establish a competitive edge in its new target market segment by increasing the level of customer contact
and service that other competitors seem to oftentimes lack. Additionally, [Company Name] possesses the necessary skills to produce
the high quality care and product that are needed in this field. The establishment of the previously mentioned work processes that will
ensure greater service will strengthen the contacts that promote word of mouth marketing and networking.
5.2 Marketing Strategy
The following sections detail the marketing strategy for [Company Name]
5.3 Sales Strategy
Sales forecast is based on the existing client base of the expertise of the owner of the company and his ability to generate new sales
based on his contacts. By bringing together Dr. [Name]'s experience and passion for helping the physically impaired, the company will
be able to generate sales in both areas. Furthermore, the company's growing list of services will generate the growth the company
needs to survive.
5.3.1 Sales Forecast
As the following table shows, the company plans to deliver sales of approximately $515,548 in the first year, $531,016 in the second
year, and $546,945 in the third year plan implementation.
Los Angeles County (incorporated as the County of Los Angeles) is a county in California and is the most populous county in the
United States. Figures from the U.S. Census Bureau give an estimated 2009 population of 9,848,011 residents, while the California
Department of Finance lists a January 1, 2009, estimate of 10,393,185. The county seat is the city of Los Angeles, the largest city in
California and the second-largest city in the United States.
The county is home to 88 incorporated cities and many unincorporated areas. The southern portion is the most heavily urbanized area
and is home to the vast majority of the population which lives along the Southern California coastline and the inland basins and
valleys. The northern half is a large expanse of less-populated desert including the Santa Clarita Valley and the Antelope Valley,
which encompasses the northeastern part of the county and is adjacent to Kern County. In between these portions of the county sit
the San Gabriel Mountains and the vast wilderness known as the Angeles National Forest.
[Company Name] Page 8
[Company Name]
2010
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Doctor Visits $231,995 $238,956 $246,124
Eyewear and Other Supplies $283,553 $292,060 $300,821
Total Sales $515,548 $531,016 $546,945
Direct Cost of Sales 2010 2011 2012
Auto Expense $22,692 $23,373 $24,074
Glasses, Lenses and Cases $37,944 $39,082 $40,255
Glasses Laboratory $24,852 $25,598 $26,365
Subtotal Direct Cost of Sales $85,488 $88,053 $90,694
[Company Name] Page 9
[Company Name]
2010
[Company Name] Page 10
[Company Name]
2010
5.4 Milestones
The following are the key milestones for the first year of operations:
1. Upgrading equipment to the newest standards in the industry.
2. Allowing a budget to travel to more patients in the Los Angeles area.
3. Having the inventory of eyewear, lenses and cases to reach the new demand.
4. Acquiring the office equipment and supplies needed.
5. All other first year milestones are currently on schedule in accordance to the business plan.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Equipment 7/1/2010 10/30/2010 $80,000 [Name] Owner
Advertising 7/1/2010 12/31/2010 $5,700 [Name] Owner
Rent 7/1/2010 6/30/2011 $30,000 [Name] Owner
Inventory 7/1/2010 11/1/2010 $25,000 [Name] Owner
Travel 7/1/2010 12/31/2010 $8,400 [Name] Owner
Auto/Truck Expense 7/1/2010 6/30/2010 $8,000 [Name] Owner
Totals $157,100
6.0 Management Summary
The sole principal, [Company Name] has impeccable credentials in this industry. This will benefit [Company Name] in two ways:
1. Clients will be brought from previous patients, and
2. The experience each has will attract new patients.
[Name] has extensive experience in practice, networking and management within the industry.
6.1 Personnel Plan
The Personnel Plan chronicles the growth of the organization to approximately 3 employees in the first 3 years. Each year
may require a few additional people besides those indicated, based on the growth of the company in accordance with the Business
Plan.
The company is seeking to have two administrative assistants at $40,000 a year in the first three years of the plan in addition to the
salary designated for the doctor, [Name], O.D.
[Company Name] Page 11
[Company Name]
2010
Table: Personnel
Personnel Plan
2010 2011 2012
Doctor $80,004 $82,404 $84,876
Administrative $80,004 $82,404 $84,876
Total People 3 3 3
Total Payroll $160,008 $164,808 $169,752
7.0 Financial Plan
[Company Name] expects to attain $300,000 in grant funding. This provides the bulk of the current financing required.
The company's financial plan is based on conservative estimates and assumptions. [Company Name] will need to plan on initial
investment to make the financials work.
7.1 Important Assumptions
[Company Name] is assuming steady growth from good management, barring any unforeseen local or national disasters such as the
economic slowdown seen by most of the country during the recession.
The company is assuming adequate grant funding to sustain the company for the next three years.
7.2 Break-even Analysis
The Break-even Analysis is based on the average of the first-year figures for total sales and by operating expenses. These
conservative assumptions make for a more accurate estimate of real risk.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $23,663
Assumptions:
Average Percent Variable Cost 17%
Estimated Monthly Fixed Cost $23,662
[Company Name] Page 12
[Company Name]
2010
[Company Name] Page 13
[Company Name]
2010
7.3 Projected Profit and Loss
As the Profit and Loss table shows, [Company Name] expects to continue its steady growth in profitability over the next three years of
operations.
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $515,548 $531,016 $546,945
Direct Cost of Sales $85,488 $88,053 $90,694
Other $0 $0 $0
Total Cost of Sales $85,488 $88,053 $90,694
Gross Margin $430,060 $442,963 $456,251
Gross Margin % 83.42% 83.42% 83.42%
Expenses
Payroll $160,008 $164,808 $169,752
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $1,200 $1,188 $1,176
Rent $47,184 $48,560 $50,058
Telephone $6,624 $6,823 $7,027
Utilities $6,120 $6,304 $6,493
Office Expense $22,656 $23,336 $24,036
Advertising $5,772 $5,945 $6,124
Billing Company $5,856 $6,032 $6,213
Insurance $23,100 $23,793 $24,507
Legal/Professional Fees $5,424 $5,586 $5,754
Total Operating Expenses $283,944 $292,375 $301,140
Profit Before Interest and Taxes $146,116 $150,588 $155,111
EBITDA $147,316 $151,776 $156,287
Interest Expense $0 $0 $0
Taxes Incurred $36,614 $37,647 $39,424
Net Profit $109,502 $112,941 $115,687
Net Profit/Sales 21.24% 21.27% 21.15%
[Company Name] Page 14
[Company Name]
2010
[Company Name] Page 15
[Company Name]
2010
[Company Name] Page 16
[Company Name]
2010
7.4 Projected Cash Flow
Important points to note in Projected Cash Flow are as follows:
In Year 1 of the business plan, the company expects to attain grant funding in the amount of $300,000.
The company plans to purchase updated equipment for the practice to better service patients.
The company plans to keep inventory in stock to drastically cut down on wait-time for glasses, contacts, cases and other
supplies.
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $515,548 $531,016 $546,945
Subtotal Cash from Operations $515,548 $531,016 $546,945
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $300,000 $0 $0
Subtotal Cash Received $815,548 $531,016 $546,945
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $160,008 $164,808 $169,752
Bill Payments $225,382 $253,816 $259,652
Subtotal Spent on Operations $385,390 $418,624 $429,404
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 $385,390 $418,624 $429,404
Net Cash Flow $430,158 $112,392 $117,541
Cash Balance $430,158 $542,550 $660,091
[Company Name] Page 17
[Company Name]
2010
[Company Name] Page 18
[Company Name]
2010
Table: Balance Sheet
7.5 Projected Balance Sheet
The following table presents the Balance Sheet for [Company Name]
Table: Balance Sheet
Pro Forma Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $430,158 $542,550 $660,091
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $450,158 $562,550 $680,091
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $2,200 $3,388 $4,564
Total Long-term Assets $97,800 $96,612 $95,436
Total Assets $547,958 $659,162 $775,527
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $22,456 $20,719 $21,397
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $22,456 $20,719 $21,397
Long-term Liabilities $0 $0 $0
Total Liabilities $22,456 $20,719 $21,397
Paid-in Capital $300,000 $300,000 $300,000
Retained Earnings $116,000 $225,502 $338,443
Earnings $109,502 $112,941 $115,687
Total Capital $525,502 $638,443 $754,130
Total Liabilities and Capital $547,958 $659,162 $775,527
Net Worth $525,502 $638,443 $754,130
[Company Name] Page 19
[Company Name]
2010
7.6 Business Ratios
The following table presents important ratios from the Offices of Optometrists industry, as determined by the Standard Industry
Classification (SIC) Index code 8042.
Table: Ratios
Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 0.00% 3.00% 3.00% 6.56%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 49.80%
Total Current Assets 100.07% 100.14% 100.12% 69.75%
Long-term Assets -0.07% -0.14% -0.12% 30.25%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 1.38% 1.19% 0.75% 25.18%
Long-term Liabilities 0.00% 0.00% 0.00% 25.78%
Total Liabilities 1.38% 1.19% 0.75% 50.96%
Net Worth 98.62% 98.81% 99.25% 49.04%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 83.42% 83.42% 83.42% 100.00%
Selling, General & Administrative Expenses 0.00% 270.33% 131.95% 65.09%
Advertising Expenses 0.00% 45.91% 18.45% 2.37%
Profit Before Interest and Taxes 28.34% 28.36% 28.36% 4.99%
Main Ratios
Current 72.73 84.25 133.81 1.83
Quick 72.73 84.25 133.81 1.29
Total Debt to Total Assets 1.38% 1.19% 0.75% 63.67%
Pre-tax Return on Net Worth 9.08% 8.74% 5.47% 28.45%
Pre-tax Return on Assets 8.95% 8.64% 5.42% 10.34%
[Company Name] Page 20
[Company Name]
2010
Additional Ratios 2010 2011 2012
Net Profit Margin 21.24% 21.27% 21.15% n.a
Return on Equity 6.80% 6.56% 4.08% n.a
Activity Ratios
Accounts Payable Turnover 10.90 12.17 12.17 n.a
Payment Days 27 31 30 n.a
Total Asset Turnover 0.32 0.30 0.19 n.a
Debt Ratios
Debt to Net Worth 0.01 0.01 0.01 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $1,610,702 $1,724,831 $2,841,694 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 3.17 3.28 5.23 n.a
Current Debt/Total Assets 1% 1% 1% n.a
Acid Test 72.73 84.25 133.81 n.a
Sales/Net Worth 0.32 0.31 0.19 n.a
Dividend Payout 0.00 0.00 0.00 n.a
[Company Name] Page 21
Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Doctor Visits 0% $14,575 $15,304 $16,069 $16,872 $17,716 $18,602 $19,532 $20,509 $21,534 $22,611 $23,742 $24,929
Eyewear and Other Supplies 0% $17,814 $18,705 $19,640 $20,622 $21,653 $22,736 $23,873 $25,067 $26,320 $27,636 $29,018 $30,469
Total Sales $32,389 $34,009 $35,709 $37,494 $39,369 $41,338 $43,405 $45,576 $47,854 $50,247 $52,760 $55,398
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Auto Expense 0% $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891 $1,891
Glasses, Lenses and Cases 0% $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162 $3,162
Glasses Laboratory 0% $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071 $2,071
Subtotal Direct Cost of Sales $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124
Page 1
Appendix
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Doctor 0% $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
Administrative 0% $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $32,389 $34,009 $35,709 $37,494 $39,369 $41,338 $43,405 $45,576 $47,854 $50,247 $52,760 $55,398
Direct Cost of Sales $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124 $7,124
Gross Margin $25,265 $26,885 $28,585 $30,370 $32,245 $34,214 $36,281 $38,452 $40,730 $43,123 $45,636 $48,274
Gross Margin % 78.00% 79.05% 80.05% 81.00% 81.90% 82.77% 83.59% 84.37% 85.11% 85.82% 86.50% 87.14%
Expenses
Payroll $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,200
Rent $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932 $3,932
Telephone $552 $552 $552 $552 $552 $552 $552 $552 $552 $552 $552 $552
Utilities $510 $510 $510 $510 $510 $510 $510 $510 $510 $510 $510 $510
Office Expense $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888 $1,888
Advertising 15% $481 $481 $481 $481 $481 $481 $481 $481 $481 $481 $481 $481
Billing Company 15% $488 $488 $488 $488 $488 $488 $488 $488 $488 $488 $488 $488
Insurance 15% $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925 $1,925
Legal/Professional Fees $452 $452 $452 $452 $452 $452 $452 $452 $452 $452 $452 $452
Total Operating Expenses $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $23,562 $24,762
Profit Before Interest and Taxes $1,703 $3,323 $5,023 $6,808 $8,683 $10,652 $12,719 $14,890 $17,168 $19,561 $22,074 $23,512
EBITDA $1,703 $3,323 $5,023 $6,808 $8,683 $10,652 $12,719 $14,890 $17,168 $19,561 $22,074 $24,712
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $511 $831 $1,256 $1,702 $2,171 $2,663 $3,180 $3,723 $4,292 $4,890 $5,519 $5,878
Net Profit $1,192 $2,492 $3,767 $5,106 $6,512 $7,989 $9,539 $11,168 $12,876 $14,671 $16,556 $17,634
Net Profit/Sales 3.68% 7.33% 10.55% 13.62% 16.54% 19.33% 21.98% 24.50% 26.91% 29.20% 31.38% 31.83%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $32,389 $34,009 $35,709 $37,494 $39,369 $41,338 $43,405 $45,576 $47,854 $50,247 $52,760 $55,398
Subtotal Cash from Operations $32,389 $34,009 $35,709 $37,494 $39,369 $41,338 $43,405 $45,576 $47,854 $50,247 $52,760 $55,398
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $300,000 $0 $0 $0
Subtotal Cash Received $32,389 $34,009 $35,709 $37,494 $39,369 $41,338 $43,405 $45,576 $347,854 $50,247 $52,760 $55,398
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334 $13,334
Bill Payments $3,595 $17,874 $18,197 $18,623 $19,070 $19,539 $20,032 $20,550 $21,093 $21,664 $22,263 $22,882
Subtotal Spent on Operations $16,929 $31,208 $31,531 $31,957 $32,404 $32,873 $33,366 $33,884 $34,427 $34,998 $35,597 $36,216
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 $16,929 $31,208 $31,531 $31,957 $32,404 $32,873 $33,366 $33,884 $34,427 $34,998 $35,597 $36,216
Net Cash Flow $15,460 $2,801 $4,178 $5,537 $6,965 $8,465 $10,039 $11,692 $313,427 $15,249 $17,163 $19,182
Cash Balance $15,460 $18,261 $22,439 $27,976 $34,942 $43,407 $53,445 $65,138 $378,564 $393,813 $410,976 $430,158
Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances
Current Assets
Cash $0 $15,460 $18,261 $22,439 $27,976 $34,942 $43,407 $53,445 $65,138 $378,564 $393,813 $410,976 $430,158
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $20,000 $35,460 $38,261 $42,439 $47,976 $54,942 $63,407 $73,445 $85,138 $398,564 $413,813 $430,976 $450,158
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Accumulated Depreciation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,200
Total Long-term Assets $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $99,000 $97,800
Total Assets $119,000 $134,460 $137,261 $141,439 $146,976 $153,942 $162,407 $172,445 $184,138 $497,564 $512,813 $529,976 $547,958
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $3,000 $17,267 $17,577 $17,987 $18,419 $18,872 $19,348 $19,847 $20,372 $20,923 $21,501 $22,108 $22,456
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $3,000 $17,267 $17,577 $17,987 $18,419 $18,872 $19,348 $19,847 $20,372 $20,923 $21,501 $22,108 $22,456
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $3,000 $17,267 $17,577 $17,987 $18,419 $18,872 $19,348 $19,847 $20,372 $20,923 $21,501 $22,108 $22,456
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $300,000 $300,000 $300,000 $300,000
Retained Earnings $106,887 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000 $116,000
Earnings $9,113 $1,192 $3,684 $7,452 $12,558 $19,070 $27,059 $36,598 $47,766 $60,642 $75,312 $91,868 $109,502
Total Capital $116,000 $117,192 $119,684 $123,452 $128,558 $135,070 $143,059 $152,598 $163,766 $476,642 $491,312 $507,868 $525,502
Total Liabilities and $119,000 $134,460 $137,261 $141,439 $146,976 $153,942 $162,407 $172,445 $184,138 $497,564 $512,813 $529,976 $547,958
Capital
Net Worth $116,000 $117,192 $119,684 $123,452 $128,558 $135,070 $143,059 $152,598 $163,766 $476,642 $491,312 $507,868 $525,502
Page 5