[Company Name] 20__
Contact: [Name]
Direct Phone: XXX-XXX-XXXX
Address: [Address]
[City, State ZIP]
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: Highlights .......................................................................................................................... 2
1.1 Objectives.................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 3
1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
2.1 Company Ownership ............................................................................................................... 3
2.2 Start-up Summary ................................................................................................................... 3
Table: Start-up.............................................................................................................................. 4
Chart: Start-up ............................................................................................................................. 4
3.0 Services ............................................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 5
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 ........................................................................................................................ 8
6.1.3 Opportunities ..................................................................................................................... 9
6.1.4 Threats ................................................................................................................................. 9
6.2 Competitive Edge ..................................................................................................................... 9
6.3 Marketing Strategy .................................................................................................................. 9
6.4 Sales Strategy ........................................................................................................................... 9
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 Start-up Funding .................................................................................................................... 13
Table: Start-up Funding .......................................................................................................... 14
8.2 Important Assumptions ....................................................................................................... 14
8.3 Break-even Analysis .............................................................................................................. 15
Page 1
Table of Contents
Table: Break-even Analysis.................................................................................................... 15
Chart: Break-even Analysis ................................................................................................... 15
8.4 Projected Profit and Loss ..................................................................................................... 16
Table: Profit and Loss ............................................................................................................... 16
Chart: Profit Monthly ................................................................................................................ 17
Chart: Profit Yearly .................................................................................................................... 17
Chart: Gross Margin Monthly................................................................................................. 18
Chart: Gross Margin Yearly .................................................................................................... 18
8.5 Projected Cash Flow .............................................................................................................. 19
Table: Cash Flow ........................................................................................................................ 19
Chart: Cash .................................................................................................................................. 20
8.6 Projected Balance Sheet ...................................................................................................... 20
Table: Balance Sheet ................................................................................................................ 20
Table: Balance Sheet ................................................................................................................ 21
8.7 Business Ratios ....................................................................................................................... 21
Table: Ratios ................................................................................................................................ 22
APPENDIX:
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 1
Table: Profit and Loss ......................................................................................................................... 2
Table: Cash Flow .................................................................................................................................. 3
Table: Cash Flow (Continued) ................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5
Page 2
[Company Name] 2010
1.0 Executive Summary
Company: [Company Name]
Contact: [Name]
Direct Phone: XXX-XXX-XXXX
Address: [Address]
[City, State ZIP]
Email: [Email Address]
Introduction
There are moments in life that define who you are…At [Company Name], these moments
happen every day. [Company Name], we are “The Paramedics’ of Property Damage. We are
the fastest growing company in the property emergency services industry thanks to three
specific facts:
The stability of the recession proof business
The freedom born of a high-margin opportunity
The ability to put people back into the workforce
[Company Name] is dedicated to serving residential and local businesses. Our cleaning and
restoration company strives to be #1 in restoring the home and business health of properties
damaged by water, mold and outside elements, thus, being an asset to its community. By
providing customers with quality water damage removal and fire damage removal services, our
Company is fulfilling the needs of residents/businesses within its immediate community. With
funding, [Company Name] will be able to expand its services and continue to be a positive
resource for its community. This business plan will explain the set up cost and estimated
growth potential in the progression of our company.
Location
[Company Name] is located in Kent County, Dover, Delaware.
The Company
PuroSystems, Inc. founded [Company Name]in 1990. PuroSystems, Inc., is a leader in the
franchise restoration industry. [Company Name]has become one of the fastest growing
property damage remediation franchise organizations in North America. [Company Name] is a
part of PuroSystems, Incorporated as a franchisee. The owners of the Delaware based
company are
[Name].
Our Services
[Company Name] provides cleaning and restoration services such as, water removal, fire
damage removal, as well as mold and bio hazarded material removal. These services promote a
healthier workplace and living environment, thus promoting better general health to its
occupants.
The Market
[Company Name]'s target market strategy is based on becoming a leading choice for people
who are looking for exceptional cleaning and restoration services in the Dover, Delaware area.
[Name] Tel. XXX-XXX-XXXX Page 1
[Company Name] 2010
Financial Considerations
The current financial plan for [Company Name] is to obtain grant funding in the amount of
$284,000. The funding will be used to purchase equipment, continual advertising campaign,
purchase office equipment and office supplies, web design, purchase inventory, cover travel
expenses associated with on-going training, cover auto/truck expenses, pay salaries, do
marketing/royalty, and cover operation capital.
The major focus for grant funding is as follows:
1. The Company is a woman, minority owned Start-up Company.
2. Hire employees; the Company will look to hire veterans, minorities and the unemployed.
3. Provide well needed cleaning and restoration services in its community.
Chart: Highlights
1.1 Objectives
[Company Name] has four main objectives:
Establish the Company's name
Providing excellent customer service
Bringing a quality product to all customers
Maximizing productivity, working efficiently and effectively
[Name] Tel. XXX-XXX-XXXX Page 2
[Company Name] 2010
1.2 Mission
When property damage occurs, [Company Name]is driven to provide an unmatched service
experience quickly, professionally, ethically and with compassion, resulting in peace of mind for
all concerned.
1.3 Keys to Success
[Company Name] keys to success involves providing a quality product with exceptional
customer service. The Company's methods are state of the art and have proven to reduce cost
to the customer and insurance companies anywhere from 15 - 40%.
2.0 Company Summary
Company: [Company Name]
Contact: [Name]
Direct Phone: XXX-XXX-XXXX
Address: [Address]
[City, State ZIP]
Email: [Email Address]
[Company Name]is a restoration company, which specializes in the removal of water and fire
damage, mold and bio hazarded material. Founded in 1990, PuroSystems, Inc. is a leader in
the franchise restoration industry, having launched [Company Name], which has become one of
the fastest growing property damage remediation franchise organizations in North America.
With a network of over 300 offices, [Company Name]touches the lives of people in communities
throughout the country by providing 24-hour property emergency restoration services. Serving
residential and commercial property owners in the United States and Canada, [Company
Name]Franchisees help families and businesses overcome the trauma of property damage and
loss through responsiveness, exceptional restoration service and compassion.
[Company Name] is a part of PuroSystems, Inc. and is located in Dover, Delaware. It is a start-
up Company. The owners of are [Name], who established the Company in 2010 as a
partnership
2.1 Company Ownership
[Company Name] was established in Dover, DE on October 3, 2010 as a partnership. The
owners are [Name]. [Company Name] is a women, minority owned business. [Name] owns
51% of the Company while [Name] owns 49%.
2.2 Start-up Summary
The following table and chart shows the start-up costs for [Company Name]. The Company's
start-up expenses consist of marketing/advertising, legal, insurance and marketing/royalty. The
start-up assets consist of materials and equipment expenses.
[Name] Tel. XXX-XXX-XXXX Page 3
[Company Name] 2010
Table: Start-up
Start-up
Requirements
Start-up Expenses
Marketing/Advertising $5,000
Legal $3,000
Insurance $2,500
Marketing/Royalty $25,000
Total Start-up Expenses $35,500
Start-up Assets
Cash Required $0
Start-up Inventory $90,000
Other Current Assets $2,500
Long-term Assets $95,000
Total Assets $187,500
Total Requirements $223,000
Chart: Start-up
[Name] Tel. XXX-XXX-XXXX Page 4
[Company Name] 2010
3.0 Services
[Company Name] is a restoration company; therefore the Company's services will include:
Water Removal
Fire Damage Removal
Mold and Bio Hazarded Material Removal
As the Company grows, its main objective is to focus on customer satisfaction. [Company
Name]'s pricing is very competitive with others and the Company offers exceptional customer
service in its area.
[Company Name] will develop marketing material to advertise the business and its services.
4.0 Market Analysis Summary
[Company Name]touches the lives of people in communities throughout the country by
providing 24-hour property emergency restoration services. [Company Name], a fire and water
damage restoration company, as well as a mold and mildew removal company also offers
biohazard cleanup services; thus the [Company Name] franchise will offer these same services
to properties throughout the metro Dover area.
[Company Name]'s customer base consists of the insurance industry and any other contractual
business that will be developed in the Dover, Delaware area. Since [Company Name] business
plan focuses solely on the cleaning and restoration industry, the Company has the services
necessary to flourish within this industry. By delivering superior customer service, offering
affordable prices and having an outstanding reputation, [Company Name]'s potential is
excellent.
4.1 Market Segmentation
[Company Name]'s target market strategy is based on becoming a leading choice for people
who are looking for exceptional cleaning and restoration services. The Company's marketing
strategy is based on superior performance in the following areas:
Quality cleaning equipment
Knowledgeable and professional staff
Honesty and trustworthiness
Excellent customer service
Affordability
Customers within the cleaning and restoration industry want exceptional customer service,
effectiveness and affordability. [Company Name]'s customers appreciate the outstanding
service and products that the cleaning and restoration Company offers, as well as the
knowledgeable and experienced staff. [Company Name] knows there will always be a need for
cleaning water damaged, smoke damaged or fire damaged properties; thus [Company Name] is
beneficial to them because the Company will deliver the dedication and dependability that they
desire.
Table: Market Analysis
[Name] Tel. XXX-XXX-XXXX Page 5
[Company Name] 2010
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Insurance 3% 108 111 114 117 121 2.88%
Companies
Businesses in Dover, 3% 6,006 6,186 6,372 6,563 6,760 3.00%
Delaware
Residence in Dover, 1% 853,476 862,011 870,631 879,337 888,130 1.00%
Delaware
Total 1.01% 859,590 868,308 877,117 886,017 895,011 1.01%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
[Company Name]'s target market segments consist of insurance companies, as well as
commercial and residential customers in need of cleaning and restoration services in the Dover,
Delaware area. 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 cleaning and restoration market segment. [Company
Name]'s choice of target markets is based on an in-depth understanding of the customer's
needs. [Company Name]'s quality products, excellent customer service and its affordability will
allow the Company to effectively compete and establish a reputation within its service area.
However, strengthening its marketing strategy will aid in improving the Company's profitability
levels as well as providing more business opportunities for the Company.
[Name] Tel. XXX-XXX-XXXX Page 6
[Company Name] 2010
4.3 Service Business Analysis
The cleaning and restoration business is characterized by multiple local businesses serving a
town or a few towns, and some national franchises. Each town can have from ten to twenty
businesses.
Cleaning services are generally managed out of a central office. Delivery vans are used to
transport equipment and cleaning crews from the central office to customer homes.
Services are generally ordered by phone. For large homes, on-site consultations are given to
develop a more accurate quote for cleaning service, rather than quoting a price sight unseen.
Most small businesses rely on phone conversations to gather the information needed to quote a
price to customers.
4.3.1 Competition and Buying Patterns
Customers choose between competitors based on brand name, positive references from trusted
sources (friends, family and colleagues, and customer-review websites, such as
www.yelp.com), and price. Most cleaning and restoration services do not compete specifically
on price, although franchises can offer lower prices, top-of-the line equipment, and professional
staff to tackle the job.
[Company Name]'s main competitor is ServePro. ServePro has been the only company serving
the Dover, Delaware area. Additionally, the local ServePro has had several owners and the
service that has been provided thus far hasn’t been the best. Since they were the only
company in town providing this service, customers didn’t have much of a choice.
Furthermore, ServePro removes all wet sheet rock and dries everything else. [Company
Name]on the other hand dries the sheet rock from the top down. This process reduces the cost
of construction cost and allows customers to return to their normal lives sooner.
5.0 Web Plan Summary
[Company Name] is heavily entrenched in the internet. [Company Name] is a cleaning and
restoration company with franchises throughout the US. The Company's website is an
opportunity to offer current information on service offerings and company background
information. Additionally, the website aids in having a steady and successful business in its
service area.
[Company Name] plans to enhance their 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] has 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.
[Name] Tel. XXX-XXX-XXXX Page 7
[Company Name] 2010
Additionally, The Company plans to tie-into social media sites to expand its presence on the
web and to reach its targeted customers.
5.2 Development Requirements
[Company Name] will keep updated service, 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 on several places online.
[Company Name]'s site is attractive, simple and informative. The site is very user friendly and
comes from a dependable hosting company.
6.0 Strategy and Implementation Summary
[Company Name] has clearly defined the target market and has differentiated itself by offering
a solid solution to fulfilling its client’s needs. Reasonable sales targets have been established
with an implementation plan designed to ensure the goals set forth below are achieved.
6.1 SWOT Analysis
[Company Name] has a valuable inventory of strengths that will help it succeed. These
strengths include: the franchise having an outstanding reputation, trained staff offering
personalized customer service, and having good referral relationships. Strengths are valuable,
but it is also important to realize the weaknesses [Company Name] must address. The
main weakness includes: being new to the Dover, Delaware area.
[Company Name]'s strengths will help it capitalize on emerging opportunities. These
opportunities include, but are not limited to, a growing market with a significant percentage of
the target market still not knowing the Company exists, as well as strategic alliances offering
sources for referrals and joint marketing activities to extend the Company's reach. [Company
Name]'s main threat would be its lack of staff; thus if something unexpected happened to the
owners, the business would suffer.
6.1.1 Strengths
[Company Name] has much notable strength. These strengths include the Companies:
Franchise having an outstanding reputation
Trained staff, offering personalized customer service.
Good referral relationships.
6.1.2 Weaknesses
[Company Name]'s main weakness includes being new to the Dover, Delaware area; thus the
owners are still climbing the "experience curve".
[Name] Tel. XXX-XXX-XXXX Page 8
[Company Name] 2010
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
Due to the Company's lack of staff, [Company Name]'s biggest threat would be something
unexpected happening to the owners, since they do most of the Company's services.
6.2 Competitive Edge
[Company Name] has a major advantage because it’s managed to position itself as strategic
ally with its customers. [Company Name] knows that by building a business based on satisfying
clients, [Company Name] will simultaneously build defenses against competition. The longer the
relationship stands, the more the Company will continue to help clients understand what it
offers them and why they need it.
6.3 Marketing Strategy
[Company Name]'s marketing strategy involves word-of-mouth advertising as well as placing
ads online, in the yellow pages or in the newspaper to reach all the potential clients that it
can. The Company's goal is to provide exceptional service to its customers. [Company Name]
knows what each customer needs and aims to satisfy them.
Currently, [Company Name]'s has an advantage because the owners, George and [Name] are a
superior husband and wife business team that has excellent work ethics, customer service and
communication skills. [Company Name]'s quality of work and level of integrity will help the
Company build a strong reputation within its community.
6.4 Sales Strategy
The owners of [Company Name] have excellent customer relations and work ethics. These skills
will be useful in making customers comfortable in trusting the Company. [Company
Name] makes an effort to stay in line with the cleaning and restoration 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.
[Name] Tel. XXX-XXX-XXXX Page 9
[Company Name] 2010
6.4.1 Sales Forecast
The chart and table below show [Company Name] projected Sales Forecast. Annual projections
for three years are shown here, with first year monthly figures in the appendix. [Company
Name]'s sales forecast include:
Cleaning and Restoration services for
Water Removal
Fire Damage Removal
Mold and Bio Hazarded Material Removal
The Company's direct costs of sales include:
Uniforms
Training
Truck Lease
The first year forecast for [Company Name]'s total sales are $210,000. The sales forecast for
Year 2 is $315,000 and Year 3 is $409,500.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Cleaning and Restoration Services $210,000 $315,000 $409,500
$0
Total Sales $210,000 $315,000 $409,500
Direct Cost of Sales Year 1 Year 2 Year 3
Uniforms $252 $257 $262
Training $3,100 $3,255 $3,417
Truck Lease $6,060 $6,060 $6,060
Subtotal Direct Cost of Sales $9,412 $9,572 $9,739
[Name] Tel. XXX-XXX-XXXX Page 10
[Company Name] 2010
Chart: Sales Monthly
Chart: Sales by Year
[Name] Tel. XXX-XXX-XXXX Page 11
[Company Name] 2010
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 $284,000 to improve business
2. Purchase Equipment
3. Advertisement
4. Purchase Office Equipment
5. Purchase Office Supplies
6. Do Web design
7. Purchase Inventory
8. Travel Expenses
9. Auto/Truck Expense
10. Pay Salary
11. Marketing/Royalty
12. Operation Capital
Table: Milestones
Milestones
Milestone Budget
Purchase Equipment $95,000
Advertisement $5,000
Purchase Office $1,500
Equipment
Purchase Office $1,000
Supplies
Do Web design $2,500
Purchase Inventory $90,000
Travel Expenses $2,500
Auto/Truck Expense $2,500
Pay Salary $46,000
Marketing/Royalty $25,000
Operation Capital $13,000
Totals $284,000
7.0 Management Summary
[Name] are the owners of [Company Name]. The Minors have a keen business sense and have
started the necessary training to run their cleaning and restoration business successfully. The
Minor's strong managerial skills and leadership qualities will aid them in running their business
effectively. [Name] will operate as the lead Restoration Professional. Additionally, the Minors
will hire a part-time person to assist with the Company's duties.
[Name] Tel. XXX-XXX-XXXX Page 12
[Company Name] 2010
7.1 Personnel Plan
The table below contains the details of [Company Name]'s personnel plan. The detailed monthly
personnel plan for the first year is included in the appendix.
[Name] are the owners of [Company Name]. The small staff will consist of the owners and a
part-time employee. Additional personnel will be added as needed.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
[Name] $30,996 $31,926 $32,884
Part-time Employee $15,000 $15,450 $15,914
Total People 2 2 2
Total Payroll $45,996 $47,376 $48,797
8.0 Financial Plan
The current financial plan for [Company Name] is to obtain grant funding in the amount of
$284,000. The funding will be used to purchase cleaning equipment, do advertising, purchase
office equipment and office supplies, do web design, purchase inventory, cover travel expenses,
cover auto/truck expense, pay salaries, cover marketing/royalty, and cover operation capital.
The following sections of this plan will serve to describe the Company's financial plan in more
detail:
Start- Up Funding
Important Assumptions
Break-even Analysis
Profit and Loss
Cash Flow
Balance Sheet
Ratios
8.1 Start-up Funding
[Company Name] start-up costs include insurance, inventory, supplies, website and advertising
expenses, which are detailed in the Start-up Table. The following table shows how these start-
up costs will be funded.
[Name] Tel. XXX-XXX-XXXX Page 13
[Company Name] 2010
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $35,500
Start-up Assets to Fund $187,500
Total Funding Required $223,000
Assets
Non-cash Assets from Start-up $187,500
Cash Requirements from Start-up $0
Additional Cash Raised $61,000
Cash Balance on Starting Date $61,000
Total Assets $248,500
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
Planned Investment
Owner $0
Investor $284,000
Additional Investment Requirement $0
Total Planned Investment $284,000
Loss at Start-up (Start-up Expenses) ($35,500)
Total Capital $248,500
Total Capital and Liabilities $248,500
Total Funding $284,000
8.2 Important Assumptions
The table below presents the assumptions used in the financial calculations of this business
plan.
The average percent variable cost is estimated to be 4%. The estimated monthly fixed cost is
estimated to be $10,030.
[Name] Tel. XXX-XXX-XXXX Page 14
[Company Name] 2010
8.3 Break-even Analysis
For our break-even analysis, the monthly revenue needed to break-even is $10,501. 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 $10,501
Assumptions:
Average Percent Variable Cost 4%
Estimated Monthly Fixed Cost $10,030
Chart: Break-even Analysis
[Name] Tel. XXX-XXX-XXXX Page 15
[Company Name] 2010
8.4 Projected Profit and Loss
[Company Name]'s Pro Forma Profit and Loss statement was conservatively constructed and is
based in large part on past performance.
The sales for Year 1, Year 2 and Year 3 are $210,000, $315,000 and $409,500, respectively.
The net profit for the same period is $56,156, $115,156 and $167,793, respectively. The
percentages of the net profit sales for this period were 26.74%, 36.56% and 40.98%,
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. Since the equipment totaled $97,500, it's then divided
by 7 years and equals $13,929 a year.
The aggregated amount of miscellaneous expenses is 10% of the total sales.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $210,000 $315,000 $409,500
Direct Cost of Sales $9,412 $9,572 $9,739
Other Costs of Sales $0
Total Cost of Sales $9,412 $9,572 $9,739
Gross Margin $200,588 $305,428 $399,761
Gross Margin % 95.52% 96.96% 97.62%
Expenses
Payroll $45,996 $47,376 $48,797
Advertising $5,004 $6,005 $7,206
Depreciation $6,966 $13,929 $13,929
Marketing/Royalty $24,996 $25,000 $25,000
Utilities $2,004 $2,000 $2,000
Insurance $2,496 $2,500 $2,500
Payroll Taxes $6,899 $7,106 $7,320
Repair/Maintenance $5,004 $5,504 $6,055
Other $21,000 $31,500 $47,250
Total Operating Expenses $120,365 $140,920 $160,056
Profit Before Interest and Taxes $80,223 $164,508 $239,704
EBITDA $87,189 $178,437 $253,633
Interest Expense $0 $0 $0
Taxes Incurred $24,067 $49,352 $71,911
Net Profit $56,156 $115,156 $167,793
Net Profit/Sales 26.74% 36.56% 40.98%
[Name] Tel. XXX-XXX-XXXX Page 16
[Company Name] 2010
Chart: Profit Monthly
Chart: Profit Yearly
[Name] Tel. XXX-XXX-XXXX Page 17
[Company Name] 2010
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
[Name] Tel. XXX-XXX-XXXX Page 18
[Company Name] 2010
8.5 Projected Cash Flow
[Company Name] is seeking funding in the amount of $284,000. [Company Name]'s forecast
that it will receive $284,000 in the month of June. During this period, the Company will use the
money to purchase equipment, do advertising, purchase office equipment, purchase office
supplies, do web design, purchase inventory, cover travel expenses, cover auto/truck expense,
pay salaries, cover marketing/royalty, cover operation capital.
The following table displays [Company Name]'s cash 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
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $210,000 $315,000 $409,500
Subtotal Cash from Operations $210,000 $315,000 $409,500
Additional Cash Received
Sales Tax, VAT, HST/GST Received $12,495 $18,743 $24,365
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $222,495 $333,743 $433,865
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $45,996 $47,376 $48,797
Bill Payments $83,557 $141,697 $177,708
Subtotal Spent on Operations $129,553 $189,073 $226,505
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $12,495 $18,743 $24,365
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 $2,500 $0 $0
Purchase Long-term Assets $95,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $239,548 $207,816 $250,870
Net Cash Flow ($17,053) $125,927 $182,995
Cash Balance $43,947 $169,874 $352,869
[Name] Tel. XXX-XXX-XXXX Page 19
[Company Name] 2010
Chart: Cash
8.6 Projected Balance Sheet
[Company Name]'s net worth is $304,656, $419,812 and $587,605 for Year 1, Year 2 and Year
3, respectively.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $43,947 $169,874 $352,869
Inventory $80,588 $87,814 $89,401
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $129,535 $262,687 $447,270
Long-term Assets
Long-term Assets $190,000 $190,000 $190,000
Accumulated Depreciation $6,966 $20,895 $34,824
Total Long-term Assets $183,034 $169,105 $155,176
Total Assets $312,569 $431,792 $602,446
[Name] Tel. XXX-XXX-XXXX Page 20
[Company Name] 2010
Table: Balance Sheet (Continued)
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $7,913 $11,981 $14,841
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,913 $11,981 $14,841
Long-term Liabilities $0 $0 $0
Total Liabilities $7,913 $11,981 $14,841
Paid-in Capital $284,000 $284,000 $284,000
Retained Earnings ($35,500) $20,656 $135,812
Earnings $56,156 $115,156 $167,793
Total Capital $304,656 $419,812 $587,605
Total Liabilities and Capital $312,569 $431,792 $602,446
Net Worth $304,656 $419,812 $587,605
8.7 Business Ratios
The table below presents the projected business ratios from the cleaning and restoration
industry as a reference with sales less than $500,000.
[Name] Tel. XXX-XXX-XXXX Page 21
[Company Name] 2010
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 50.00% 30.00% -0.71%
Percent of Total Assets
Inventory 25.78% 20.34% 14.84% 2.18%
Other Current Assets 1.60% 1.16% 0.83% 53.58%
Total Current Assets 41.44% 60.84% 74.24% 70.11%
Long-term Assets 58.56% 39.16% 25.76% 29.89%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 2.53% 2.77% 2.46% 37.94%
Long-term Liabilities 0.00% 0.00% 0.00% 54.53%
Total Liabilities 2.53% 2.77% 2.46% 92.47%
Net Worth 97.47% 97.23% 97.54% 7.53%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.52% 96.96% 97.62% 59.56%
Selling, General & Administrative 68.78% 60.40% 56.65% 28.35%
Expenses
Advertising Expenses 2.38% 1.91% 1.76% 1.21%
Profit Before Interest and Taxes 38.20% 52.22% 58.54% 8.19%
Main Ratios
Current 16.37 21.93 30.14 1.24
Quick 6.19 14.60 24.11 1.18
Total Debt to Total Assets 2.53% 2.77% 2.46% 92.47%
Pre-tax Return on Net Worth 26.33% 39.19% 40.79% 696.33%
Pre-tax Return on Assets 25.67% 38.10% 39.79% 52.41%
[Name] Tel. XXX-XXX-XXXX Page 22
[Company Name] 2010
Table: Ratios (Continued)
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 26.74% 36.56% 40.98% n.a
Return on Equity 18.43% 27.43% 28.56% n.a
Activity Ratios
Inventory Turnover 0.11 0.11 0.11 n.a
Accounts Payable Turnover 11.56 12.17 12.17 n.a
Payment Days 27 25 27 n.a
Total Asset Turnover 0.67 0.73 0.68 n.a
Debt Ratios
Debt to Net Worth 0.03 0.03 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $121,622 $250,707 $432,429 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 1.49 1.37 1.47 n.a
Current Debt/Total Assets 3% 3% 2% n.a
Acid Test 6.19 14.60 24.11 n.a
Sales/Net Worth 0.69 0.75 0.70 n.a
Dividend Payout 0.00 0.00 0.00 n.a
[Name] Tel. XXX-XXX-XXXX Page 23
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
Cleaning and Restoration $15,440 $16,055 $16,296 $16,524 $17,038 $17,299 $17,627 $18,100 $18,364 $18,653 $19,110 $19,494
Services
Total Sales $15,440 $16,055 $16,296 $16,524 $17,038 $17,299 $17,627 $18,100 $18,364 $18,653 $19,110 $19,494
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
Uniforms $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21
Training $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258
Truck Lease $505 $505 $505 $505 $505 $505 $505 $505 $505 $505 $505 $505
Subtotal Direct Cost of Sales $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784
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
[Name] $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583
Part-time Employee $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Total People 0 0 0 0 0 0 0 0 0 0 0 2
Total Payroll $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833
Page 1
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 $15,440 $16,055 $16,296 $16,524 $17,038 $17,299 $17,627 $18,100 $18,364 $18,653 $19,110 $19,494
Direct Cost of Sales $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784
Other Costs of Sales
Total Cost of Sales $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784 $784
Gross Margin $14,656 $15,271 $15,512 $15,740 $16,254 $16,515 $16,843 $17,316 $17,580 $17,869 $18,326 $18,710
Gross Margin % 94.92% 95.11% 95.19% 95.25% 95.40% 95.47% 95.55% 95.67% 95.73% 95.80% 95.90% 95.98%
Expenses
Payroll $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833
Advertising $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Depreciation $0 $0 $0 $0 $0 $0 $1,161 $1,161 $1,161 $1,161 $1,161 $1,161
Marketing/Royalty $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083
Utilities $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Insurance $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208 $208
Payroll Taxes 15% $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575 $575
Repair/Maintenance $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Other 10% $1,544 $1,606 $1,630 $1,652 $1,704 $1,730 $1,763 $1,810 $1,836 $1,865 $1,911 $1,949
Total Operating $9,244 $9,305 $9,330 $9,352 $9,404 $9,430 $10,624 $10,671 $10,697 $10,726 $10,772 $10,810
Expenses
Profit Before Interest $5,412 $5,965 $6,182 $6,387 $6,850 $7,085 $6,219 $6,645 $6,882 $7,142 $7,554 $7,899
and Taxes
EBITDA $5,412 $5,965 $6,182 $6,387 $6,850 $7,085 $7,380 $7,806 $8,043 $8,303 $8,715 $9,060
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,624 $1,790 $1,855 $1,916 $2,055 $2,125 $1,866 $1,993 $2,065 $2,143 $2,266 $2,370
Net Profit $3,788 $4,176 $4,328 $4,471 $4,795 $4,959 $4,353 $4,651 $4,818 $5,000 $5,288 $5,530
Net Profit/Sales 24.54% 26.01% 26.56% 27.06% 28.14% 28.67% 24.70% 25.70% 26.23% 26.80% 27.67% 28.37%
Page 2
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 $15,440 $16,055 $16,296 $16,524 $17,038 $17,299 $17,627 $18,100 $18,364 $18,653 $19,110 $19,494
Subtotal Cash from $15,440 $16,055 $16,296 $16,524 $17,038 $17,299 $17,627 $18,100 $18,364 $18,653 $19,110 $19,494
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST 5.95% $919 $955 $970 $983 $1,014 $1,029 $1,049 $1,077 $1,093 $1,110 $1,137 $1,160
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 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 $0 $0 $0 $0
Subtotal Cash Received $16,359 $17,010 $17,266 $17,507 $18,052 $18,328 $18,676 $19,177 $19,457 $19,763 $20,247 $20,654
Page 3
Appendix
Table: Cash Flow (Continued)
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 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833 $3,833
Bill Payments $234 $7,042 $7,265 $7,354 $7,442 $7,629 $7,715 $7,501 $7,674 $7,772 $7,881 $8,049
Subtotal Spent on Operations $4,067 $10,875 $11,098 $11,187 $11,275 $11,462 $11,548 $11,334 $11,507 $11,605 $11,714 $11,882
Additional Cash Spent
Sales Tax, VAT, HST/GST $919 $955 $970 $983 $1,014 $1,029 $1,049 $1,077 $1,093 $1,110 $1,137 $1,160
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 $2,500 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $95,000 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,986 $11,830 $12,068 $12,170 $12,289 $109,991 $12,597 $12,411 $12,599 $12,714 $12,851 $13,042
Net Cash Flow $11,373 $5,180 $5,198 $5,337 $5,763 ($91,663) $6,079 $6,766 $6,857 $7,048 $7,396 $7,612
Cash Balance $72,373 $77,552 $82,750 $88,087 $93,851 $2,188 $8,267 $15,033 $21,890 $28,938 $36,335 $43,947
Page 4
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 $61,000 $72,373 $77,552 $82,750 $88,087 $93,851 $2,188 $8,267 $15,033 $21,890 $28,938 $36,335 $43,947
Inventory $90,000 $89,216 $88,431 $87,647 $86,863 $86,078 $85,294 $84,510 $83,726 $82,941 $82,157 $81,373 $80,588
Other Current Assets $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $153,500 $164,088 $168,484 $172,898 $177,450 $182,429 $92,482 $97,777 $103,758 $109,831 $116,095 $122,707 $129,535
Long-term Assets
Long-term Assets $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000
Accumulated $0 $0 $0 $0 $0 $0 $0 $1,161 $2,322 $3,483 $4,644 $5,805 $6,966
Depreciation
Total Long-term Assets $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $190,000 $188,839 $187,678 $186,517 $185,356 $184,195 $183,034
Total Assets $248,500 $259,088 $263,484 $267,898 $272,450 $277,429 $282,482 $286,616 $291,436 $296,348 $301,451 $306,902 $312,569
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $6,800 $7,020 $7,106 $7,188 $7,372 $7,465 $7,246 $7,415 $7,509 $7,612 $7,776 $7,913
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 $0 $6,800 $7,020 $7,106 $7,188 $7,372 $7,465 $7,246 $7,415 $7,509 $7,612 $7,776 $7,913
Liabilities
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $6,800 $7,020 $7,106 $7,188 $7,372 $7,465 $7,246 $7,415 $7,509 $7,612 $7,776 $7,913
Paid-in Capital $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000 $284,000
Retained Earnings ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500) ($35,500)
Earnings $0 $3,788 $7,964 $12,291 $16,763 $21,558 $26,517 $30,870 $35,522 $40,339 $45,339 $50,627 $56,156
Total Capital $248,500 $252,288 $256,464 $260,791 $265,263 $270,058 $275,017 $279,370 $284,022 $288,839 $293,839 $299,127 $304,656
Total Liabilities and $248,500 $259,088 $263,484 $267,898 $272,450 $277,429 $282,482 $286,616 $291,436 $296,348 $301,451 $306,902 $312,569
Capital
Net Worth $248,500 $252,288 $256,464 $260,791 $265,263 $270,058 $275,017 $279,370 $284,022 $288,839 $293,839 $299,127 $304,656
Page 5