[Company Name] 20__
Business Plan
Contact: [Name]
Address: [Address]
[City, State ZIP]
Direct Phone: XXX-XXX-XXXX
Cell: XXX-XXX-XXXX
Fax: XXX-XXX-XXXX
Email: [Email Address]
© 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: Highlight ............................................................................................................................ 2
1.1 Objectives.................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 2
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
2.1 Company Ownership ............................................................................................................... 3
2.2 Company History ...................................................................................................................... 3
Table: Past Performance ........................................................................................................... 4
Chart: Past Performance ........................................................................................................... 5
3.0 Services ............................................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 6
Chart: Market Analysis (Pie) .................................................................................................... 6
4.2 Target Market Segment Strategy ...................................................................................... 6
4.3 Service Business Analysis ..................................................................................................... 7
4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Web Plan Summary ..................................................................................................................... 7
5.1 Website Marketing Strategy ................................................................................................. 7
5.2 Development Requirements ................................................................................................. 8
6.0 Strategy and Implementation Summary ............................................................................ 8
6.1 SWOT Analysis .......................................................................................................................... 8
6.1.1 Strengths ............................................................................................................................. 8
6.1.2 Weaknesses ........................................................................................................................ 9
6.1.3 Opportunities ..................................................................................................................... 9
6.1.4 Threats ................................................................................................................................. 9
6.2 Competitive Edge ..................................................................................................................... 9
6.3 Marketing Strategy .................................................................................................................. 9
6.4 Sales Strategy ......................................................................................................................... 10
6.4.1 Sales Forecast.................................................................................................................. 10
Table: Sales Forecast ........................................................................................................... 10
Chart: Sales Monthly ............................................................................................................ 11
Chart: Sales by Year ............................................................................................................. 11
6.5 Milestones.................................................................................................................................. 12
Table: Milestones ....................................................................................................................... 12
7.0 Management Summary ............................................................................................................ 12
7.1 Personnel Plan ......................................................................................................................... 13
Table: Personnel ......................................................................................................................... 13
8.0 Financial Plan ............................................................................................................................... 13
8.1 Important Assumptions ....................................................................................................... 13
8.2 Break-even Analysis .............................................................................................................. 14
Table: Break-even Analysis.................................................................................................... 14
Chart: Break-even Analysis ................................................................................................... 14
Page 1
Table of Contents
8.3 Projected Profit and Loss ..................................................................................................... 15
Table: Profit and Loss ............................................................................................................... 15
Chart: Profit Monthly ................................................................................................................ 16
Chart: Profit Yearly .................................................................................................................... 16
Chart: Gross Margin Monthly................................................................................................. 17
Chart: Gross Margin Yearly .................................................................................................... 17
8.4 Projected Cash Flow .............................................................................................................. 18
Table: Cash Flow ........................................................................................................................ 18
Chart: Cash .................................................................................................................................. 19
8.5 Projected Balance Sheet ...................................................................................................... 19
Table: Balance Sheet ................................................................................................................ 19
Table: Balance Sheet (Continued) ...................................................................................... 20
8.6 Business Ratios ....................................................................................................................... 20
Table: Ratios ................................................................................................................................ 21
APPENDIX:
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Cash Flow (Continued) ......................................................................................................... 5
Table: Balance Sheet .......................................................................................................................... 6
Page 2
[Company Name]
1.0 Executive Summary
Company: [Company Name]
Contact: [Name]
Address: [Address]
[City, State ZIP]
Direct Phone: XXX-XXX-XXXX
Cell: XXX-XXX-XXXX
Fax: XXX-XXX-XXXX
Email: [Email]
Introduction
[Company Name]provides transportation of agricultural products from farmers and elevators to
production facilities with a 100 mile radius of its Springfield, MN office. [Company Name]strives
to be an asset to its community. By providing quality trucking and transferring services in the
Springfield, MN area, the Company is fulfilling the needs of the residents within its community.
[Company Name]also has a strong environmental focus. It has installed solar panels and is
insulating the shop to reduce its electric costs and conserve energy. With grant funding,
[Company Name]will be able to expand its Company and be a positive resource, as well as be
able to build its exposure through effective marketing and advertising.
Location
[Company Name]is located in Springfield, MN, which is in Brown County.
The Company
[Company Name]is a family owned Trucking-Contract Hauling Company. The Company was
established in 1989 and became an S-Corp in April 2005. The owners of the company are
[Name], a husband and wife business team, who are quite knowledgeable about the trucking
and transferring industry.
Our Services
[Company Name]provides a safe, dependable and reliable trucking and transferring service.
The Market
[Names]’starget market strategy is based on becoming a destination for agricultural companies
in the Springfield, MN area who are looking for exceptional trucking and transferring services.
Financial Considerations
The current financial plan for [Company Name]is to obtain grant funding in the amount of
$250,000. The grant will be used to purchase a truck and trailer, cover truck and trailer
insurance, hire new employee(s), cover new employee training, and cover operation capital.
The major focus for grant funding is as follows:
1. The Company is a woman owned minority business
2. It provides a well needed trucking and transferring service to agricultural companies in its
area
3. It has a strong environmental focus in which it uses solar panels and insulation to conserve
energy.
4. Hire employees; the Company will look to hire veterans, minorities and the unemployed
Page 1
[Company Name]
Chart: Highlight
1.1 Objectives
[Company Name]has four main objectives:
Update current equipment to assure safety on highways and to satisfy the Federal DOT &
CSA requirements.
Add another employee, which would require purchasing another Truck & Trailer
Pay off balanced of loan for Solar Panels to help with renewable energy.
Insulate and heat shop where trucks are parked. This will eliminate plugging the trucks in
during the winter months to insure they start, which will decrease the electric bill by about
70%
1.2 Mission
[Company Name]always guarantees good service. The products are delivered within a
reasonable time frame and the Company works with most of the same customers today that it
started with. These customers have always been very satisfied with [Names]’swork; thus it's
the Company's mission to continue offering great service with safe and updated equipment.
1.3 Keys to Success
[Names]’skeys to success include:
Working very hard to keep customers satisfied.
Working with 5 major elevators in the Springfield, MN area (Harvest Land Cooperative,
South Central Grain & Energy, Christensen Farms, ADM, and Cenex Harvest States). These
companies have been in business for many years, and have relied on [Names]’sservices.
Page 2
[Company Name]
2.0 Company Summary
Company: Brown Transfer, Inc
Contact: [Name]
Address: [Address]
[City, State ZIP]
Direct Phone: XXX-XXX-XXXX
Cell: XXX-XXX-XXXX
Fax: XXX-XXX-XXXX
Email: [Email]
[Company Name]is a family owned Trucking-Contract Hauling Company located in Springfield,
MN. [Company Name]was established in 1989. The owners of the company are [Name], a
husband and wife business team, who are quite knowledgeable about the trucking and transfer
industry.
2.1 Company Ownership
[Company Name]was established in 1989. It is now an S-Corp, being incorporated since April of
1995. The owners of the Company are [Name], which makes [Company Name]a woman,
minority owned business. The owners have 100% ownership of the trucking and transfer
Company.
2.2 Company History
The following table and chart shows the past financials for Brown Transfer, Inc.
Sales for 2007, 2008, and 2009 were $1,297,728, $1,376,610 and $1,025,039,
respectively. The earnings for this period were $4,951, $1,490 and $4,987, respectively.
Page 3
[Company Name]
Table: Past Performance
Past Performance
2007 2008 2009
Sales $1,297,728 $1,376,610 $1,025,039
Gross Margin $1,297,728 $1,376,610 $1,025,039
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $1,292,800 $1,375,295 $1,020,077
Collection Period (days) 0 0 0
Balance Sheet
2007 2008 2009
Current Assets
Cash ($8,384) $1,747 ($13,582)
Accounts Receivable $21,662 $30,203 $39,798
Other Current Assets $0 $6,757 $0
Total Current Assets $13,278 $38,707 $26,216
Long-term Assets
Long-term Assets $299,662 $354,282 $367,973
Accumulated Depreciation $235,585 $283,166 $321,143
Total Long-term Assets $64,077 $71,116 $46,830
Total Assets $77,355 $109,823 $73,046
Current Liabilities
Accounts Payable ($673) ($673) $2,207
Current Borrowing $20,960 $32,308 $8,368
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $20,287 $31,635 $10,575
Long-term Liabilities $65,034 $80,615 $60,449
Total Liabilities $85,321 $112,250 $71,024
Paid-in Capital $12,969 $13,508 $18,121
Retained Earnings ($25,886) ($17,425) ($21,086)
Earnings $4,951 $1,490 $4,987
Total Capital ($7,966) ($2,427) $2,022
Total Capital and Liabilities $77,355 $109,823 $73,046
Other Inputs
Payment Days 30 30 30
Sales on Credit $0 $0 $0
Receivables Turnover 0.00 0.00 0.00
Page 4
[Company Name]
Chart: Past Performance
3.0 Services
[Company Name]provides transportation of agricultural products from farmers and elevators to
production facilities within a 100 mile radius of its office. The Company tries to keep its
equipment updated and current. However, with the new Compliance, Safety & Accountability
(CSA) required by the Federal Government, it is getting harder to maintain current equipment.
4.0 Market Analysis Summary
[Company Name]provides transportation of agricultural products from farmers and elevators to
production facilities with a 100 mile radius of its Springfield, MN office. The Company's industry
does not have any seasonality that affects it; therefore, [Company Name]has the services and
professionalism necessary to flourish within its market. By delivering superior customer
service, [Names]’spotential is excellent.
4.1 Market Segmentation
[Names]’starget market strategy is based on becoming a destination for agricultural companies
in the Springfield, MN area who are looking for exceptional trucking and transferring services.
The Company's marketing strategy is based on superior performance in the following areas:
Reliable transferring services
Knowledgeable staff
Customer service
Quality equipment
Customers within the trucking and transferring industry want exceptional customer service as
well as quality equipment. [Names]’scustomers appreciate the reliable service that the trucking
and transferring industry offers, as well as the knowledgeable and experienced staff. [Company
Name]is beneficial to them because the Company delivers the dedication and dependability that
they desire.
Page 5
[Company Name]
Table: Market Analysis
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Farms in Minnesota 2% 81,000 82,620 84,272 85,957 87,676 2.00%
Farms in Brown 2% 3,480 3,550 3,621 3,693 3,767 2.00%
County, MN
Total 2.00% 84,480 86,170 87,893 89,650 91,443 2.00%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
[Company Name]target market segments consist of agricultural companies in the Springfield,
MN area in need of trucking and transferring services. The Company knows that satisfied
customers aid the Company by referring its business to other clients who need these services.
Currently, [Company Name]serves the trucking and transferring market segment.
[Names]’schoice of target markets is based on an in-depth understanding of the customer's
needs. [Names]’sexceptional service, quality equipment and reliability will allow the
Company to effectively compete and establish a reputation within its area. However
strengthening its marketing strategy will improve the Company's profitability levels as well
as provide more business opportunities for the Company.
Page 6
[Company Name]
4.3 Service Business Analysis
The trucking industry is rapidly growing; in fact it is the visible proof of the U.S. economy at
work. According to the Bureau of Labor Statistics' web site, the trucking industry is strong and
expanding. The government estimates that freight volume will increase by 50 percent in the
next 20 years. Almost every product sold in the United States spends at least some time in a
truck. While planes, trains, and ships are also used to transport goods, no other form of
transportation has the same level of flexibility as a truck. As a result, trucks are used to
transport everything from canned food to automobiles.
As simple as it may be, [Names]’smethod of executing exceptional service will have an
important effect on the bottom line: People want to give their business to those who appreciate
it. Skillful use of advertising, offering top-notch trucking and transferring services, as well as a
practice of strong communication will bring the support the Company desires.
4.3.1 Competition and Buying Patterns
[Company Name]exists in a competitive industry. Its main competitors are Halter Trucking,
Schroepfer Trucking, Joel Pingeon Trucking, Arnsdorf Trucking and numerous other small
operators. The company excels by keeping its equipment updated and current; however, with
the new compliance, safety and accountability (CSA) required by the Federal Government, it
gets harder to maintain current equipment.
Ultimately, it is [Names]’sgoal to fulfill client's demands because it aids the Company in
generating future business. If clients are happy, they will recommend the Company to others
who need the service. Furthermore, [Company Name]knows that the proper image and
visibility aids the Company in getting its name out.
5.0 Web Plan Summary
[Company Name]is heavily entrenched in the internet. The Company's website will be an
opportunity to offer current information on service offerings, Company background
and announcements. Additionally the website will be another method to generate steady
business in its service area.
[Company Name]plans to continuously enhance its website to provide an Internet presence that
will better represent it through digital images and text and serve to more effectively market
the Company and expand its market.
5.1 Website Marketing Strategy
[Company Name]will have an effective website that informs customers about the specific
information on the services offered. The Company will create alliances with other local
businesses; thus [Company Name]will capitalize on using its marketing channels to promote
the website.
The website will also be promoted on all of its marketing materials. The Company will
advertise its site on its business cards as well as in other industry related publications.
Additionally, The Company plans to tie-into social media sites to expand its presence on the
web and to reach its targeted customers.
Page 7
[Company Name]
5.2 Development Requirements
[Company Name]will keep updated photos, sales details and information on the website so that
it is helpful to customers searching the website and surfing the internet. The Company will
create an advertising presence by promoting the site online.
[Company Name]will have an attractive, simple and informative internet focused website. It will
be a user friendly site from a dependable hosting company. The owners of [Company Name]will
continue to keep the website current.
Tasks necessary for the completion of the site include:
Domain name registration
Purchase of Web hosting plan
Development of site look and feel
While the website look and feel will evolve over time, creating a web presence consistent with
the Company's identity is an immediate priority.
6.0 Strategy and Implementation Summary
[Company Name]has clearly defined the target market and have differentiated itself by offering
a solid solution to fulfilling its clients needs. Reasonable sales targets have been established
with an implementation plan designed to ensure the goals set forth below are achieved. Inc
6.1 SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
6.1.1 Strengths
[Company Name]has much notable strengths. These strengths include:
Family owned business with over 20 years of industry experience
Knowledgeable and friendly staff
Working with 5 major elevators in the Springfield, MN area
Clear vision of the market need
Page 8
[Company Name]
6.1.2 Weaknesses
[Company Name]main weaknesses include:
Limited cash flow to grow business to its potential
Lack of staff needed to handle workload
6.1.3 Opportunities
Opportunities for [Company Name]include:
Growing market with a significant percentage of its target market still not knowing the
Company exists.
Strategic alliances offering sources for referrals and joint marketing activities to extend the
Company's reach.
6.1.4 Threats
[Names]’sbiggest threat involves operating in a bad economy. An additional threat to the
Company is bad weather, because it relies on the agricultural industry. Also, the
Company needs favorable weather to drive and transfer products.
6.2 Competitive Edge
[Company Name]has a major advantage because it's been in business since 1989 and has
been working with 5 major elevators in the Springfield, MN area (Harvest Land Cooperative,
South Central Grain & Energy, Christensen Farms, ADM, and Cenex Harvest
States). Additionally, the Company is very energy sufficient and environmentally friendly. It
uses solar panels and plans to insulate the shop to conserve energy. Furthermore,
its hardworking and dedicated staff definitely aids in the Company's overall success. By
continuing to build a business based on long-standing relationships with satisfied clients,
[Company Name]will simultaneously build defenses against future competition. The longer the
relationship stands, the more the Company helps its customers understand what they offer
them and why they need it.
6.3 Marketing Strategy
[Names]’smarketing strategy involves word-of-mouth advertising and placing local ads in the
yellow pages as well as online. Additionally, the Company's website will aid in allowing
the trucking and transfer Company to reach all the potential clients that it can. [Names]’sgoal is
to provide exceptional customer service to its customers. It knows what each customer needs
and aims to satisfy them.
[Names]’shas an advantage because the owners, [Name] are a superior business team that
have excellent work ethics, customer service and communication skills. The owners also offer
an in-depth knowledge of the trucking and transfer industry. [Names]’slevel of integrity
helps the Company build a strong reputation within its community.
Page 9
[Company Name]
6.4 Sales Strategy
[Company Name]has excellent customer relations and work ethics. [Company Name]makes an
effort to stay in line with the trucking and transferring industry in its area that are offering
similar services; therefore paying attention to industry rates and the latest equipment is
important. Furthermore, keeping customers happy is an implicit part of building a relationship
that will encourage repeat business.
6.4.1 Sales Forecast
The chart and table below shows [Names]’sprojected Sales Forecast. Annual projections for
three years are shown here, with first year monthly figures in the appendix.
[Names]’ssales forecast includes transfer services. [Names]’sprojections for
2010, 2011 and 2012 are $1,216,500, $1,250,000 and $1,310,000.
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Transfer Service $1,216,500 $1,250,000 $1,310,000
Total Sales $1,216,500 $1,250,000 $1,310,000
Direct Cost of Sales 2010 2011 2012
Fuel $124,560 $137,016 $150,718
Subtotal Direct Cost of Sales $124,560 $137,016 $150,718
Page 10
[Company Name]
Chart: Sales Monthly
Chart: Sales by Year
Page 11
[Company Name]
6.5 Milestones
In order to achieve the growth and marketing goals that have been outline in this business
plan, [Company Name]has deadlines to meet and ideas to implement. Some of these are
outlined below:
1. Obtain grant funding in the amount of $250,000 to improve business
2. Purchase Truck and Trailer
3. Cover Truck and Trailer Insurance
4. Hire New Employee(s)
5. Cover New Employee Training
6. Cover Operation Capital
By receiving this grant, it will ensure that the Company has the equipment and funds to
continue offering its services. [Company Name]plans on expanding; therefore it must achieve
its goals of paying off existing loans on equipment as well as the existing loans on the solar
panels. Additionally, the Company plans on using most of the funds allotted for the operation
capital towards insulating the shop to reduce its electric costs.
Table: Milestones
Milestones
Milestone Budget Manager
Purchase Truck and $90,000 [Name]
Trailer
Truck and Trailer $4,800 [Name]
Insurance
Hiring New Employee $40,000 [Name]
New Employee Training $18,000 [Name]
Operation Capital $97,200 [Name]
Totals $250,000
7.0 Management Summary
[Company Name]is a family owned business. The owners are [Name], a husband and wife
business team and support system. [Name] has been handling the administrative duties as well
as the financial operation for the past 15 years; while [Name] operates as the Company's
Dispatcher. Additionally, the [Name]’s strong managerial skills and leadership
qualities aids them in running their business effectively.
Page 12
[Company Name]
7.1 Personnel Plan
The table below contains the details of [Names]’spersonnel plan. The detailed monthly
personnel plan for the first year is included in the appendix.
[Name] are the owners of the [Company Name]The Company has four salaried employees as
well as four 1099 workers. The staff consists of a dispatcher ([Name]), three truck drivers,
and the 1099 contract workers ([Names]). Upon the receipt of grant funding, the Company will
hire another truck driver, who will receive a salary of $40,000. Additional personnel will be
added as needed.
Table: Personnel
Personnel Plan
2010 2011 2012
Dispatcher $20,004 $20,604 $21,222
Truck Drivers $120,000 $160,000 $164,800
Doug Halvorson Trucking, LLC (1099) $135,996 $140,076 $144,278
DTJohnson Transport (1099) $150,000 $154,500 $159,135
IRA Trucking, LLC (1099) $120,000 $123,600 $127,308
Mike Vogel Trucking, INC (1099) $120,000 $123,600 $127,308
Total People 8 9 9
Total Payroll $666,000 $722,380 $744,051
8.0 Financial Plan
The current financial plan is based on the assumption of achieving desired levels of funding.
Additionally, [Company Name]plans to obtain grant funding in the amount of $250,000. The
grant will be used to purchase a truck and trailer, cover truck and trailer insurance, hire new
employee(s), cover new employee training, and cover operation capital.
The following sections of this plan will serve to describe [Names]’sfinancial plan in more detail:
Important Assumptions
Break-even Analysis
Profit & Loss
Cash Flow
Balance Sheet
Business Ratios
8.1 Important Assumptions
The table below presents the assumptions used in the financial calculations of this
grant plan. [Names]’sis an S-Corp business and is taxed accordingly. The Company's expenses
assume a 3% increase due to inflation & other cost variables.
Page 13
[Company Name]
8.2 Break-even Analysis
For the break-even analysis, the monthly revenue needed to break-even is $93,609. The break-
even analysis has been calculated on the "burn rate" of The Company. [Company Name]feels
that this gives the investor a more accurate picture of the actual risk of the venture.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $93,609
Assumptions:
Average Percent Variable Cost 10%
Estimated Monthly Fixed Cost $84,024
Chart: Break-even Analysis
Page 14
[Company Name]
8.3 Projected Profit and Loss
[Names]’sPro Forma Profit and Loss statement was constructed from a conservative point-of-
view, and is based in large part on past performance.
The sales for 2010, 2011 and 2012 are $1,216,500, $1,250,000 and $1,310,000, respectively.
The net profit for the same period is $36,884, $35,479 and $44,678, respectively; while the
percentages of the net profit sales for this period are 3.03%, 2.84% and 3.41%, respectively.
Once the Company receives grant funding to add the new assets, the depreciation of the new
fixed assets will be over a 7 year period. Additionally, once the Company completes insulating
the shop, its operation expenses will be lower and its electric cost will be reduced.
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $1,216,500 $1,250,000 $1,310,000
Direct Cost of Sales $124,560 $137,016 $150,718
Other Costs of Sales $24,330 $26,763 $29,439
Total Cost of Sales $148,890 $163,779 $180,157
Gross Margin $1,067,610 $1,086,221 $1,129,843
Gross Margin % 87.76% 86.90% 86.25%
Expenses
Payroll $666,000 $722,380 $744,051
Marketing/Promotion $3,504 $3,609 $3,717
Depreciation $0 $12,857 $12,857
Solar Panel and Insulation $60,000 $0 $0
Equipment $90,000 $92,700 $95,481
Rent $17,004 $17,514 $18,040
Utilities $1,500 $1,545 $1,591
Phone/Fax $3,996 $4,116 $4,239
Legal $2,004 $2,064 $2,126
Insurance $39,996 $41,196 $42,432
Repair/Maintenance $30,000 $30,900 $31,827
Payroll Taxes $53,280 $57,790 $59,524
Other $41,004 $42,234 $43,501
Total Operating Expenses $1,008,288 $1,028,906 $1,059,387
Profit Before Interest and Taxes $59,322 $57,315 $70,456
EBITDA $59,322 $70,172 $83,313
Interest Expense $5,975 $4,524 $3,022
Taxes Incurred $16,004 $15,838 $20,230
Net Profit $37,343 $36,954 $47,204
Net Profit/Sales 3.07% 2.96% 3.60%
Page 15
[Company Name]
Chart: Profit Monthly
Chart: Profit Yearly
Page 16
[Company Name]
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Page 17
[Company Name]
8.4 Projected Cash Flow
[Company Name]has applied for a grant of $250,000. The Company forecast that it will receive
the grant in the second quarter of 2011. During this period, [Company Name]will use the
money to purchase a truck and trailer, cover truck and trailer insurance, hire new employee(s),
cover new employee training, and cover operation capital. These purchases are reflected in the
purchase of long-term assets. [Names]’scash plan is based on the assumption that the
Company meets its forecast objectives and collects receivables within 60 days.
The following table displays [Names]’scash flow and the chart illustrates monthly cash flow in
the first year. Monthly cash flow projections are also included in the appendix.
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $912,375 $937,500 $982,500
Cash from Receivables $291,547 $311,058 $324,917
Subtotal Cash from Operations $1,203,922 $1,248,558 $1,307,417
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $250,000 $0
Subtotal Cash Received $1,203,922 $1,498,558 $1,307,417
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $666,000 $722,380 $744,051
Bill Payments $472,336 $481,566 $503,580
Subtotal Spent on Operations $1,138,336 $1,203,946 $1,247,631
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $8,368 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $12,096 $12,090 $12,090
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $90,000 $0
Dividends $0 $0 $0
Subtotal Cash Spent $1,150,432 $1,314,404 $1,259,721
Net Cash Flow $53,490 $184,154 $47,695
Cash Balance $39,908 $224,062 $271,758
Page 18
[Company Name]
Chart: Cash
8.5 Projected Balance Sheet
[Names]’snet worth is $39,365, $326,319 and $373,523 for 2010, 2011,
and 2012 respectively. The Company's Total Assets for this same period will be $139,114,
$401,854, and $439,276, respectively.
Table: Balance Sheet
Pro Forma Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $39,908 $224,062 $271,758
Accounts Receivable $52,376 $53,819 $56,402
Other Current Assets $0 $0 $0
Total Current Assets $92,284 $277,881 $328,160
Long-term Assets
Long-term Assets $367,973 $457,973 $457,973
Accumulated Depreciation $321,143 $334,000 $346,857
Total Long-term Assets $46,830 $123,973 $111,116
Total Assets $139,114 $401,854 $439,276
Page 19
[Company Name]
Table: Balance Sheet (Continued)
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $43,029 $39,272 $41,580
Current Borrowing $8,368 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $51,397 $39,272 $41,580
Long-term Liabilities $48,353 $36,263 $24,173
Total Liabilities $99,750 $75,535 $65,753
Paid-in Capital $18,121 $268,121 $268,121
Retained Earnings ($16,099) $21,244 $58,198
Earnings $37,343 $36,954 $47,204
Total Capital $39,365 $326,319 $373,523
Total Liabilities and Capital $139,114 $401,854 $439,276
Net Worth $39,365 $326,319 $373,523
8.6 Business Ratios
The table below presents the projected business ratios from the general freight trucking
services as a reference with sales from $1,000,000 - $4,999,999.
Page 20
[Company Name]
Table: Ratios
Ratio Analysis
2010 2011 2012 Industry
Profile
Sales Growth 18.68% 2.75% 4.80% -0.04%
Percent of Total Assets
Accounts Receivable 37.65% 13.39% 12.84% 17.39%
Other Current Assets 0.00% 0.00% 0.00% 29.79%
Total Current Assets 66.34% 69.15% 74.70% 48.52%
Long-term Assets 33.66% 30.85% 25.30% 51.48%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 36.95% 9.77% 9.47% 25.43%
Long-term Liabilities 34.76% 9.02% 5.50% 54.14%
Total Liabilities 71.70% 18.80% 14.97% 79.57%
Net Worth 28.30% 81.20% 85.03% 20.43%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 87.76% 86.90% 86.25% 72.36%
Selling, General & Administrative 84.69% 83.94% 82.64% 20.43%
Expenses
Advertising Expenses 0.29% 0.29% 0.28% 0.19%
Profit Before Interest and Taxes 4.88% 4.59% 5.38% 7.28%
Main Ratios
Current 1.80 7.08 7.89 1.43
Quick 1.80 7.08 7.89 1.38
Total Debt to Total Assets 71.70% 18.80% 14.97% 79.57%
Pre-tax Return on Net Worth 135.52% 16.18% 18.05% 130.03%
Pre-tax Return on Assets 38.35% 13.14% 15.35% 26.56%
Page 21
[Company Name]
Table: Ratios (Continued)
Additional Ratios 2010 2011 2012
Net Profit Margin 3.07% 2.96% 3.60% n.a
Return on Equity 94.86% 11.32% 12.64% n.a
Activity Ratios
Accounts Receivable Turnover 5.81 5.81 5.81 n.a
Collection Days 59 62 61 n.a
Accounts Payable Turnover 11.93 12.17 12.17 n.a
Payment Days 27 31 29 n.a
Total Asset Turnover 8.74 3.11 2.98 n.a
Debt Ratios
Debt to Net Worth 2.53 0.23 0.18 n.a
Current Liab. to Liab. 0.52 0.52 0.63 n.a
Liquidity Ratios
Net Working Capital $40,888 $238,609 $286,580 n.a
Interest Coverage 9.93 12.67 23.32 n.a
Additional Ratios
Assets to Sales 0.11 0.32 0.34 n.a
Current Debt/Total Assets 37% 10% 9% n.a
Acid Test 0.78 5.71 6.54 n.a
Sales/Net Worth 30.90 3.83 3.51 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 22
Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Transfer Service $95,850 $96,810 $97,779 $98,758 $99,847 $100,845 $101,853 $102,879 $103,901 $104,940 $105,989 $107,049
Total Sales $95,850 $96,810 $97,779 $98,758 $99,847 $100,845 $101,853 $102,879 $103,901 $104,940 $105,989 $107,049
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Fuel $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380
Subtotal Direct Cost of Sales $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380
Page 1
Appendix
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dispatcher $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667
Truck Drivers $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Doug Halvorson Trucking, LLC $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333 $11,333
(1099)
DTJohnson Transport (1099) $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
IRA Trucking, LLC (1099) $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Mike Vogel Trucking, INC $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
(1099)
Total People 8 8 8 8 8 8 8 8 8 8 8 8
Total Payroll $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500
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 $95,850 $96,810 $97,779 $98,758 $99,847 $100,845 $101,853 $102,879 $103,901 $104,940 $105,989 $107,049
Direct Cost of Sales $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380 $10,380
Other Costs of Sales 2% $1,917 $1,936 $1,956 $1,975 $1,997 $2,017 $2,037 $2,058 $2,078 $2,099 $2,120 $2,141
Total Cost of Sales $12,297 $12,316 $12,336 $12,355 $12,377 $12,397 $12,417 $12,438 $12,458 $12,479 $12,500 $12,521
Gross Margin $83,553 $84,494 $85,443 $86,403 $87,470 $88,448 $89,436 $90,441 $91,443 $92,461 $93,489 $94,528
Gross Margin % 87.17% 87.28% 87.38% 87.49% 87.60% 87.71% 87.81% 87.91% 88.01% 88.11% 88.21% 88.30%
Expenses
Payroll $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500
Marketing/Promotion $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Solar Panel and $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Insulation
Equipment $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Rent $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417 $1,417
Utilities $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Phone/Fax $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333
Legal $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Insurance $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Repair/Maintenance $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Payroll Taxes 8% $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440 $4,440
Other $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417 $3,417
Total Operating $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024 $84,024
Expenses
Profit Before Interest ($471) $470 $1,419 $2,379 $3,446 $4,424 $5,412 $6,417 $7,419 $8,437 $9,465 $10,504
and Taxes
EBITDA ($471) $470 $1,419 $2,379 $3,446 $4,424 $5,412 $6,417 $7,419 $8,437 $9,465 $10,504
Interest Expense $544 $536 $527 $519 $511 $502 $494 $485 $477 $469 $460 $452
Taxes Incurred ($305) ($20) $268 $558 $881 $1,177 $1,475 $1,780 $2,083 $2,391 $2,702 $3,016
Net Profit ($711) ($46) $624 $1,302 $2,055 $2,745 $3,443 $4,152 $4,859 $5,578 $6,304 $7,037
Net Profit/Sales -0.74% -0.05% 0.64% 1.32% 2.06% 2.72% 3.38% 4.04% 4.68% 5.32% 5.95% 6.57%
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 $71,888 $72,608 $73,334 $74,069 $74,885 $75,634 $76,390 $77,159 $77,926 $78,705 $79,492 $80,287
Cash from Receivables $19,899 $20,698 $23,971 $24,211 $24,453 $24,699 $24,970 $25,220 $25,472 $25,728 $25,984 $26,244
Subtotal Cash from $91,787 $93,305 $97,305 $98,279 $99,338 $100,332 $101,360 $102,379 $103,398 $104,433 $105,476 $106,530
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $91,787 $93,305 $97,305 $98,279 $99,338 $100,332 $101,360 $102,379 $103,398 $104,433 $105,476 $106,530
Page 4
Appendix
Table: Cash Flow (Continued)
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from
Operations
Cash Spending $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500 $55,500
Bill Payments $3,576 $41,070 $41,366 $41,665 $41,967 $42,302 $42,610 $42,921 $43,237 $43,552 $43,873 $44,196
Subtotal Spent on $59,076 $96,570 $96,866 $97,165 $97,467 $97,802 $98,110 $98,421 $98,737 $99,052 $99,373 $99,696
Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $60,084 $97,578 $97,874 $98,173 $98,475 $98,810 $99,118 $99,429 $99,745 $100,060 $100,381 $100,704
Net Cash Flow $31,703 ($4,273) ($569) $106 $863 $1,522 $2,242 $2,950 $3,652 $4,373 $5,095 $5,826
Cash Balance $18,121 $13,848 $13,278 $13,385 $14,248 $15,770 $18,011 $20,961 $24,614 $28,987 $34,082 $39,908
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash ($13,582) $18,121 $13,848 $13,278 $13,385 $14,248 $15,770 $18,011 $20,961 $24,614 $28,987 $34,082 $39,908
Accounts Receivable $39,798 $43,862 $47,366 $47,841 $48,319 $48,828 $49,341 $49,834 $50,334 $50,838 $51,344 $51,858 $52,376
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $26,216 $61,982 $61,214 $61,119 $61,704 $63,076 $65,110 $67,845 $71,296 $75,452 $80,331 $85,940 $92,284
Long-term Assets
Long-term Assets $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973 $367,973
Accumulated $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143 $321,143
Depreciation
Total Long-term Assets $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830 $46,830
Total Assets $73,046 $108,812 $108,044 $107,949 $108,534 $109,906 $111,940 $114,675 $118,126 $122,282 $127,161 $132,770 $139,114
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $2,207 $39,692 $39,978 $40,266 $40,558 $40,882 $41,180 $41,480 $41,786 $42,090 $42,400 $42,713 $43,029
Current Borrowing $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368 $8,368
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current $10,575 $48,060 $48,346 $48,634 $48,926 $49,250 $49,548 $49,848 $50,154 $50,458 $50,768 $51,081 $51,397
Liabilities
Long-term Liabilities $60,449 $59,441 $58,433 $57,425 $56,417 $55,409 $54,401 $53,393 $52,385 $51,377 $50,369 $49,361 $48,353
Total Liabilities $71,024 $107,501 $106,779 $106,059 $105,343 $104,659 $103,949 $103,241 $102,539 $101,835 $101,137 $100,442 $99,750
Paid-in Capital $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121 $18,121
Retained Earnings ($21,086) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099) ($16,099)
Earnings $4,987 ($711) ($757) ($132) $1,170 $3,224 $5,970 $9,413 $13,565 $18,424 $24,002 $30,306 $37,343
Total Capital $2,022 $1,311 $1,265 $1,890 $3,192 $5,246 $7,992 $11,435 $15,587 $20,446 $26,024 $32,328 $39,365
Total Liabilities and $73,046 $108,812 $108,044 $107,949 $108,534 $109,906 $111,940 $114,675 $118,126 $122,282 $127,161 $132,770 $139,114
Capital
Net Worth $2,022 $1,311 $1,265 $1,890 $3,192 $5,246 $7,992 $11,435 $15,587 $20,446 $26,024 $32,328 $39,365
Page 6