Sample Business Plans for Contract Companies

					         Perfect Screen Printing
       315 Turnpike St. Box 240P
  North Andover, Massachusetts. 01845
             781-696-3732

               Website:
     PerfectScreenPrint.tripod.com
                EMail:
   PerfectScreenPrinting@gmail.com



Academic Version
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This is a business plan. It does not imply an offering of securities.




                                  Academic Version
                                                                          Table of Contents

1.0       Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              1
           1.1    Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2
           1.2    Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         3
           1.3    Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        3
           1.4    Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              3
           1.5    Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      3

2.0       Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
           2.1  Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
           2.2  Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3.0       Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6

4.0       Market        Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             6
           4.1          Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            7
           4.2          Growth and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              7
           4.3          Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   7
           4.4          Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8
                        4.4.1    Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         8

5.0       Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              8
           5.1     Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              9
           5.2     Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              9
           5.3     Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          9
                   5.3.1     Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                10
           5.4     Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          12

6.0       Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
          6.1    Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

7.0       Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   13
           7.1  Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               13

8.0       Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       14
           8.1    Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             14
           8.2    Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    15
           8.3    Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  15
           8.4    Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  16
           8.5    Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  19
           8.6    Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  20
           8.7    Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              21

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   24




                                                        Academic Version
                                          Perfect Screen Printing

1.0 Executive Summary

     Overview

     Perfect Screen Printing develops and markets innovativelydesigned clothing to focus on customer needs. We offer a
     wider variety of colors, custom designs, and the most competitive prices in the market. Also offered is free delivery
     service of our custom clothing for customer convenience and superior customer service. Perfect Screen Printing ensures
     customer satisfaction and value. Our strong staff will help convey this message to customers by providing perfect
     screening on all products, as well as prompt delivery.

     Initially,Perfect Screening will target a smaller market in order to circulate our name and form a steady customer base.
     We will provide custom screen printing services to small businesses such as restaurants, construction companies,
     landscaping companies, local sports teams, and will look into sponsoring children’s sports league's attire. Along with
     orders such as these, we will sell pre-made custom graphic clothing designed by our staff members.

     Market Opportunity

          •   The majority of local small businesses need a version of low cost advertising and by wearing clothing with
              their business information,they will be advertising wherever they go. Perfect Screen Printing feels that by
              offering quality products at competitive prices we will be able to fulfill these needs.

          •   At this day in age, image contributes to a great deal of success in businesses. Dress code is becoming more of
              a necessity. A company where all employees wear the same apparel will make them look more professional
              and it will lead to increased word of mouth advertising.

     Business Concept

     Perfect Screen Printing has developed a business that specializes in custom design apparel by both order and retail

          •   Wholesale: Will sell shirts via order form, with which the customer has the opportunity to pick style, color,
              design, etc. through our display sample book. Offer a wider variety of colors than the competition at similar
              prices. Provide superior customer service and quality products.

          •   Retail: We will be selling pre-made custom graphic clothing designed by our staff members. We will also offer
              our services to local colleges, fraternities, and individual customers.

     Target Market

     We will create order forms so small businesses can order a variety of specialized logos and designs to fit their company
     needs. By providing superior customer service and value customers will feel they are getting a better deal by doing
     business with us as opposed to our competition. We will also target young adults who we feel are the most apt out of
     any age group to buy graphic t-shirts.

     Competitive Advantage

          •   Free delivery service.
          •   More colors and opportunities for customers to design their own logos
          •   More affordable prices than other companies
          •   Several contacts in industry as potential clients.

     Management

     Perfect Screen Printing is managed by the five partners, each partner having their own skills in a particular section of
     the business. Each of them will also take part in the production and sales of our products. Frank Connors will mostly
     take on the position in the finance department. Accounting management will then be handled by Sarah Languirand.
     Focusing on operations management will be Katherine Fichera, while Alan Lemarier who has had much experience in


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                                           Perfect Screen Printing
      screen printing will be head of production. The challenge of marketing for our business will later be taken on by Mark
      Paulson. Each member was chosen for their management position because of their higher level of expertise in that area.

      Financial Projections

      Projected start up costs for Perfect Screen Printing will total $6,000. Start up costs are a combination of expenses at
      $2,250 and initial assets development of $3,750. Expenses are listed as Legal ($400), Rent($100), Stationery($150),
      Insurance($1000), Design Software($400), and Other($200). Assets are listed as Cash($700), Inventory($1,000),
      Other Current Assets($1,000), and Long Term Assets($1,050).

      Perfect Screen Printing expects to be able to break-even after the first 3-6 months of operation and maintain a healthy 6-
      7% growth rate. Through at least one of the partners, we have a contact with a number of small, local businesses in
      need of efficient,inexpensive marketing via their company T-shirts.



1.1 Highlights




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                                            Perfect Screen Printing

1.2 Objectives

            •   Cover start-up costs in first 3-4 months.
            •   Establish a connection with at least 15-20 companies.
                     • All small businesses such as restaurants, construction companies, landscaping companies, etc.
            •   Set up the company so approx. 50% of sales to students on campus.



1.3 Mission

      Our Mission is to develop and market innovative designed clothing focused on customer needs. We offer a wide variety
      of colors, custom designs, and the best competitive prices in the market. We offer free delivery services of our custom
      clothing for customer convenience and to ensure superior customer service.



1.4 Keys to Success

      To succeed in business we must do the following:

            •   Screen print quality clothing specific to customer needs.
            •   Beat competitors' prices due to low operating costs.
            •   Establish a network of small, local businesses with which we do business.
            •   Create shirts for sales to students; this is important because we can sell shirts at a higher marked up price.



1.5 Risks

            •   Economy could recess causing company's to cut-back on spending.
            •   Big chains such as Wal-Mart or Staples could develop a screen printing sector and wipe out small start-ups
                such as ours.
            •   There is little to no barrier to entry in the industry so competition could always be increasing.
            •   The printing press could break and there could be an extensive amount of down time before it could be fixed
                or a new machine could be purchased.
            •   The shirts we order could be delayed, causing us to miss a deadline with a customer.




2.0 Company Summary

      Perfect Screen Printing is a start-up screen printing company that will specialize in providing small business's with
      clothing customized for their company. We offer them an alternative method of low cost advertising in the form of their
      T-shirts, long-sleeve shirts, sweatshirts, etc. They will be able to choose up to four colors per side and can create their
      own design or have us create one for them. We will tailor all shirts to each specific company. Perfect Screen Printing
      will also offer students a variety of T's, sweatshirts, and other articles of clothing with different logos and designs for a
      lower price than they may find in a store.




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                                          Perfect Screen Printing

2.1 Company Ownership

     Perfect Screen Printing is a privately-owned corporation with five partners. Each partner will have an equal stake in the
     company. The partners are as follows, listed alphabetically by last name. Also listed with each name is their job
     description within the company.




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                                          Perfect Screen Printing

2.2 Start-up Summary

     As shown on the Start-up table, rent will only be listed as $100 a month. This is because we are leasing a small portion
     of Katherine Fichera's fathers warehouse. This number is just an estimate and may not need to be paid every month.
     The legal expenses and insurance expenses were an estimate at $400 and $1,000 respectively. In addition, we have
     included a stationary expense of $150, this includes materials such as paper, exacto knives, pens, etc. Also we have
     listed design software as an expense of $400, this expense is necessary to run the business.

     In the assets portion of the table, we show a $1,050 for long term assets. This is the cost of the screen printing press
     and initial start-up kit. The $1,000 in other current assets will be additional mesh screens for printing. The cost of
     screens is $100 for a pack of six screens so the total cost will be variable with sales. The $1,000 in inventory will be
     for the blank T-shirts we will need to purchase. Wholesale shirts will be approximately $2.00 a shirt when purchased
     in bulk sets of 100 and will go down as the number of shirts increase. The other $700 in cash and liquid assets will be
     there to be available to purchase ink or other expenses that may come up, or may be applied to purchasing T-shirts or
     mesh screens.


     Table: Start-up

      Start-up

      Requirements

      Start-up Expenses
      Legal                                           $400
      Rent                                            $100
      Stationery, etc.                                $150
      Insurance                                      $1,000
      Design Literature/Software                      $400
      Other                                           $200
      Total Start-up Expenses                        $2,250

      Start-up Assets
      Cash Required                                   $700
      Start-up Inventory                             $1,000
      Other Current Assets                           $1,000
      Long-term Assets                               $1,050
      Total Assets                                   $3,750

      Total Requirements                             $6,000




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                                           Perfect Screen Printing


                                                          Start-up


                        $6,000


                        $5,000


                        $4,000


                        $3,000


                        $2,000


                        $1,000


                            $0
                                     Expenses         Assets        Investment        Loans




3.0 Products

     Perfect Screen Printing will be able to print on many different articles of clothing, depending on the job order. We offer
     unique, custom, and novelty prints on T-shirts, long-sleeve shirts, sweatshirts, sweatpants, nylon jackets, hats, and a few
     other articles of clothing. We will be able to print up to four colors on all surfaces, including the front, back, or sleeve
     of the shirt.




4.0 Market Analysis Summary

     Perfect Screen Printing will supply small, local business's with custom designs tailored to their individual needs, on the
     several different articles of clothing listed in the product summary section of this plan. We are targeting small
     restaurants, landscaping companies, construction companies, bands, etc. As a company, we will also look to sponsor
     local youth sports teams and provide those teams with uniform T-shirts. In addition, we will design custom T's for
     students to purchase.




                                       Academic Version                                                                  Page 6
                                           Perfect Screen Printing

4.1 Market Segmentation

          •   Small business's are always looking for cheap and effective means of advertising. Their inability to advertise
              on large mediums prohibits them from expanding their customer base, with the exception of word-of-mouth.
              As a company, through at least one of the partners, we have an existing contact with at least 20-25 small, local
              business's and at least one major company in the area. We feel that this is a good potential customer base. In
              addition to existing small, local business's there is also the possibility of local start-ups that will need a jump-
              start in their marketing scheme.
          •   At any college, there are a number clubs and organizations that are in need of many shirts and other various
              apparel. In addition to targeting just the organizations, many college students are always looking for
              inexpensive school and novelty clothing.
          •   Youth sports organizations are in great need of uniformed t-shirts for each team. Some leagues let individual
              teams take care of their own shirts and some contract out for the entire league and in turn supply teams with
              their shirts. We will try to bid for shirt contracts and may possible sponsor our own team to get the name out.


     Table: Market Analysis

      Market Analysis
                                                     2005           2006          2007          2008           2009
      Potential Customers            Growth                                                                                CAGR
      Small Business's                  7%              20            21            22            24             26        6.78%
      Students                          7%             300           321           343           367            393        6.98%
      Youth Sports
                                         6%              3             3              3             3             3         0.00%
      Organizations
      Total                           6.91%            323           345           368           394            422         6.91%



4.2 Growth and Acquisitions

     The screen printing market grows at roughly 5% each year. We estimate our growth rate, based on current connections
     with and knowledge of the area, to be 6-7% each year. In the first year we will grow slightly faster than the competition
     because our strong contacts in the industry and commitment to customer satisfaction. Each month we'll allocate more
     time to try and obtain new customers.

     In the second and third year, we expect to continue to grow at least 6-7%, most likely it will be higher. In the third year,
     we will look to acquire another small screen printing company, which we are currently in contact with, to increase our
     own market share. The acquisition will provide us with more equipment and almost double the amount of contracts we
     have. In years four and five, we hope to continue our growth as we try to expand our business.




4.3 Target Market Segment Strategy

          •    In deciding our segment, we feel that it will be better as a start-up company to deal with smaller business's
              that are relatively close to us. With a small business, our shirts can be personally delivered by us and can be
              billed using a C.O.D. payment plan. We felt that with larger business's we may have had to ship out our shirts
              using UPS or DHL, which would be an additional cost, and we may not receive payment right away which
              could make it hard for us to purchase inventory needed for our next order. Plus it would more than likely be
              harder to win the bidding for a larger company's contract.
          •    Our segment in which we are targeting students is one we decided simply from being a college student. We
              know what it's like to want to wear college related shirts but not have the funds or ability to purchase such
              shirts. Once we get a base with students we will start to expand this segment to approaching fraternities,
              sororities, sports teams, student governments, class councils, and other college organizations. We are not
              limiting this segment to college students however. Should the business succeed we may also branch out to
              high schools, where every sports team, organization, and graduating class need shirts.
          •    Our youth sports segment idea came from us partners who participated in such sports in our youth. There


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                                           Perfect Screen Printing
               really isn't a segment we're leaving out here seeing as all youth sports organizations are basically similar. We
               know from experience that all teams get their own sponsors with their own team shirt. We hope to contact
               some of the local organizations and either sponsor our own team or contract with them to supply each teams
               shirts.



4.4 Industry Analysis

      "Perfect Screen Printing" is in the screen printing industry. This industry focuses on silk screening on shirt and other
      apparel. Our intent is to provide businesses with a cheap form of advertising on clothing, supply dress code to give the
      company a more dignified and sophisticated look and overall benefit small businesses and people interested in our
      services.

      Screen printing consumes $140 billion sales worldwide, but it is still a smaller industry. It is sometimes invisible due to
      the background service it provides to people and businesses, rather than upfront retail. Since the screen printing
      industry focuses on satisfyingsmall business customers, which is a key target market, the industry is gaining more of a
      reputation due to this niche of concentrating in smaller markets and businesses.

      The way this industry sells custom graphic, screen printed apparel is through obtaining orders from companies and
      people interested in the services. It is also common of most screen printing companies to make graphic clothing and
      sell it as retail, as opposed to special orders.

      Due to location, our main competitors would mostly be in surrounding areas. However, if companies are capable of
      online orders then it would not matter where they are located. If their product is available online like so, then they
      remain a big part of our competition. Locally,we have competitors such as Neatco (Peabody, MA), Atlantic Screen
      Printing (Manchester, NH), Universal Screenprinting (Everett, MA), Mirror Image Printing (Boston, MA), and others.



4.4.1 Competition and Buying Patterns

      Competition is essential to any company, large or small. We are a small business in which word of mouth
      recommendations go a long way. To survive in our industry, we will need to establish strong ties to the local small
      businesses that are looking for inexpensive advertising. There are roughly 10-15 printing companies that are similar to
      ours in the surrounding towns and cities. We are already tied to 20 local businesses. We have strong personal ties to
      these companies who have already showed a promising interest in contracting us to print their apparel. They indicated
      that they would choose us based on our competitive prices and timely delivery, over other companies who charge more
      for the same product, and take longer to produce it.




5.0 Strategy and Implementation Summary

      Perfect Screen Printing focuses on three segments, small business's, college students, and the local youth sports
      organizations. In focusing on those segments, we have three strategies we feel will help us enter the market and keep
      our competitiveness up. These advantages are first, our sales people, second, our ordering process, and third, our price.




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                                           Perfect Screen Printing

5.1 Competitive Edge

      Perfect Screen Printing’s competitive edge is that they offer high quality products at competitive prices and do to their
      commitment to customer satisfaction offer free delivery to customers in the local area. Perfect Screen Printing is
      different from all other screen printing companies because of their knowledgeable and energetic managers and
      employees. They also feel that the various areas of experience that the managers bring to the company set them apart
      from the competition. Perfect Screen Printing feels that with this competitive edge, hard work, integrity, and
      commitment to customer satisfaction they will be very successful in the years to come.




5.2 Marketing Strategy

      Our marketing strategy involves our target market focus, which will mostly consist of small businesses and college
      students. We believe that by including a mix of target markets we will be more successful in what we do, and the
      apparel which we produce. Our marketing approach of making business tee-shirts with our name, logo, and information
      on it, for us to wear, will be beneficial and definitelydraw attention to people and businesses everywhere we go.
      Hopefullythey will find our strategy appealing, and utilize us for their future marketing approaches such as ours. We
      will also place emphasis on lower prices than other competitive businesses, and fast delivery of our products.

      For marketing to our college student segment, we created a survey and sent it campus-wide at Merrimack. Thus far, it
      has generated about 120 responses from students. It shows specific desirability of our college student target market. It
      shows that 77% of the students spend $10 or more a month on graphic T-shirts and that more than half of the students
      would spend a maximum price between $20-30 for a specific novelty t-shirt. In the survey we also asked about
      sweatshirts and sweatpants and found out that 84% would purchase a sweatshirt and 80% would purchase sweatpants if
      they were each priced between $25-30. These results will help us develop better cost forecasts, and a better idea of
      what brands and type of graphics our target market is most interested in. This will in turn, help us become more
      successful.



5.3 Sales Strategy

      Different markets and those segments inside of that industry or market all need a different selling strategy. The target
      market that we chose to concentrate our business on is the small business advertisement market, and student apparel.
      We will focus on owners of small business who are looking for inexpensive professional advertising. Perfect Screen
      Printing will provide these services for them and offer novelty apparel to students of Merrimack College and other
      colleges and universities in the area. We will optimize our selling to these companies through the following methods:

           •   Our sales people- Each of us have personal connections to at least two companies who have already showed
               great interest in letting us provide their company with apparel.
           •   The Ordering Process- We will optimize our ordering process by providing a downloadable form on our
               website that can be e-mailed, mailed, or dictated over the phone to us. We will also be personally available to
               meeting and discuss design options with each business owner, or student.
           •   Price- The price of an order will vary on how much is being purchased and what the customer would like the
               design to look like. The lager the number of units ordered, the more the price will drop. We will be providing
               various styles, and a large number of differentkinds of clothing. Perfect Screen Printing will be delivering the
               orders to the customers, which is not provided by most companies.




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                                           Perfect Screen Printing

5.3.1 Sales Forecast

      In the forecast table, our estimations are on a seasonal track. In the small business market, we estimate that sales will
      pick up in the March/April for short sleeve shirts and other summer attire. Along the same lines, we estimate that in
      September/October, the sales for long sleeve shirts and sweatshirts will pick up. This forecast will help us in our
      inventory purchases. We will be able to predict which type of clothing will be popular at certain times of the year. As
      far as the student market goes, we estimate that sales will be strong in the August/September months due to the new
      students and their initial school spirit. Even though we predict sales to drop off in October and November when
      students are running out of money, we feel that sales will pick up again in December when they are looking to purchase
      Christmas presents for their families. Knowing that winter break takes up two-thirds of the month of January, we see
      sales for that month dropping off significantlybut picking up again in the spring months when the weather warms up.
      Youth sports sales will obviously also a seasonal trend, along with the sports accompanyingthose seasons. We estimate
      that the sales will peak at the beginning of each sports season.


      Table: Sales Forecast

      Sales Forecast
                                                FY 2006       FY 2007        FY 2008
      Unit Sales
      Small Business Contract                      2,292         2,452         2,624
      College Wear                                 1,107         1,184         1,267
      Youth Sports Org.                              546           584           625
      Total Unit Sales                             3,945         4,221         4,517

      Unit Prices                               FY 2006       FY 2007        FY 2008
      Small Business Contract                     $6.00         $6.00          $6.00
      College Wear                               $20.00        $20.00         $20.00
      Youth Sports Org.                           $7.00         $7.00          $7.00

      Sales
      Small Business Contract                   $13,751        $14,715       $15,745
      College Wear                              $22,139        $23,690       $25,348
      Youth Sports Org.                          $3,825         $4,090        $4,376
      Total Sales                               $39,715        $42,494       $45,468

      Direct Unit Costs                         FY 2006       FY 2007        FY 2008
      Small Business Contract                     $3.90         $3.90          $3.90
      College Wear                                $6.00         $6.00          $6.00
      Youth Sports Org.                           $4.20         $4.20          $4.20

      Direct Cost of Sales
      Small Business Contract                    $8,938         $9,565       $10,234
      College Wear                               $6,642         $7,107        $7,604
      Youth Sports Org.                          $2,295         $2,454        $2,625
      Subtotal Direct Cost of Sales             $17,875        $19,125       $20,464




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                           Perfect Screen Printing


                                       Sales Monthly


$4,500

$4,000

$3,500

$3,000

$2,500                                                           Small Business Contract

$2,000                                                           College Wear
                                                                 Youth Sports Org.
$1,500

$1,000

 $500

   $0
          Sep Oct Nov Dec Jan Feb Mar Apr May Jun      Jul Aug




                                       Sales by Year



$50,000
$45,000
$40,000
$35,000
$30,000                                                          Small Business Contract
$25,000                                                          College Wear
$20,000                                                          Youth Sports Org.
$15,000
$10,000
 $5,000
     $0
              FY 2006        FY 2007         FY 2008




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                                                Perfect Screen Printing

5.4 Milestones

      As shown, our first and most important milestone is to present our plan for funding. If we fail to get funded, then the
      remaining milestones become obsolete. With the exception of the initial purchase orders, many of the milestones are
      repetitive after the first occurence. For example, approaching local businesses, production, and distribution will be on
      a made-to-order schedule. Advertising will be small, mainly in local papers and possibly flyers around the surrounding
      towns. The costs of each milestone are approximate, with the exception of purchasing equipment and design materials
      which are researched costs. Cost of inventory will depend on the amount of orders, and will be an ongoing process
      throughout the semester.


      Table: Milestones

      Milestones

      Milestone                           Start Date     End Date     Budget              Manager               Department
      Present Business Plan for
                                           5/1/2005     5/13/2005         $0                  PSP                        All
      Funding
      Training                             6/1/2005      6/8/2005         $0         Alan Lemarier              Production
      Purchase Equipment                  8/25/2005      9/7/2005     $1,050          Katie Fichera               Operation
      Purchase Design Materials           8/25/2005      9/7/2005      $400          Alan Lemarier              Production
      Purchase Inventory                  8/25/2005      9/7/2005     $2,000                   PSP                       All
      Approach Local Business's            9/7/2005     9/30/2005         $0         Mark Paulson                    Sales
      Advertising                          9/7/2005    10/31/2005      $150         Frank Connors        Finance/Marketing
      Production                                                               Paulson/Lemarier/Fic Sales/Production/Operat
                                          9/15/2005    12/15/2005       N/A
                                                                                               hera                     ion
      Distribution                        9/15/2005    12/15/2005       N/A                    PSP                       All
      Student Sales                                                            Paulson/Lemarier/Fic Sales/Production/Operat
                                           9/7/2005    12/15/2005       N/A
                                                                                               hera                     ion
      Totals                                                          $3,600


                                                             Milestones

         Present Business Plan for Funding

                                    Training

                        Purchase Equipment

                   Purchase Design Materials

                          Purchase Inventory

                 Approach Local Business's

                                 Advertising

                                  Production

                                 Distribution

                               Student Sales

                                            May        Jun      Jul      Aug       Sep       Oct      Nov       Dec




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                                           Perfect Screen Printing

6.0 Web Plan Summary

      Our online marketing strategy plays an important role in the success of our company. Using the website we hope to
      make it easier for potential customers to learn more about our company. Our website will allow browsers to access
      company information,such as products that we offer and pricing, as well as our contact information and background.
      Additionally,on our website, customers can read and download order forms to fill out before meeting with a
      representative. As the company expands we may allow for customers to make purchase orders right over the web.

      Our online strategy hopes to target all online customers, specifically college students and business owners. We also feel
      that as the company expands further we may be able to purchase online advertising, such as banners on other popular
      sites.




6.1 Development Requirements

      In terms of development, our website is well on its way. We created it through a free host domain called Tripod; this
      eliminates development costs such as purchasing a domain name and registering a host computer. We are not seeking a
      "web master" to consult with in the development of our site as we collectivelyhave extensive knowledge of computers
      and Tripod in essence walks us through the process. For example, Tripod offers a "Page Builder" function which we
      used to customize our site. We currently have company information with our mission and vision, a brief management
      summary, an extensive overview of our offered products including an example design. Finally we have a page on how
      to contact us, via phone or email. On the contact page there is also a downloadable order form where a potential
      customer can print out a form for the amount, style, and design of the shirt they may want to purchase. This does not
      serve as a means of ordering but simply as a reference for when they meet with one of our design representatives. All
      orders will be done in person.



7.0 Management Summary

      Perfect Screen Printing currently has five managers and employees. Each manager will be in charge of their own
      individual aspect of the company, although everyone has a say in every area and decisions will be made as an entire
      company. The five areas' are labeled Finance, Operations, Accounting, Sales, and Production. Ms. Katherine Fichera
      will act as the Operations Manager, Mr. Mark Paulson will act as the Marketing Manager, Ms. Sarah Languirand will
      act as the Accounting Manager, Mr. Frank Connors will act as Financial Manager, and Mr. Alan Lemarier will act as
      Production manager. All of the managers of the company are also the five founders. Perfect Screen Printing’s team is
      complete for the time being due to the wide areas of experience that the current team has, but as the business grows we
      will need to hire more experienced employees to ensure customer satisfaction is always met. Perfect Screen Printing’s
      organizational structure is very sound, with job descriptions and logical responsibilities for all the key team members.



7.1 Personnel Plan

      Due to the structure in which our business is being created, no worker will receive wage compensation for operating the
      business. All profit we make will be left in the business and used to purchase future inventory and equipment. Upon
      completion of the semester, once we have repaid our initial investments, we will decide the future of Perfect Screen
      Printing and its new personnel plan, possibly including wages.




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                                              Perfect Screen Printing

8.0 Financial Plan

      According to our analysis, our business is expected to grow at an average rate of approximately 10%. This is a
      combination of the growths of our three concentrated segments, small business sales, student sales, and youth sports
      sales. For our company to be successful and break even, we will need to sell an average of 63 units a month and have
      revenue of about $633 a month. With our estimated monthlycost of $348, or 55% of monthly sales, we should be able
      to maintain a steady profit, which we will reinvest in the company. Because we are taking an initial loan to cover all
      start-up costs and do not need to pay it off until the end of the 5-month period, we will be able to retain all profits within
      the company.

      Overall, the financial plan is very encouraging. We estimate to have a steady growth rate and consistent monthly profit.




8.1 Start-up Funding

      Start-up funding for this company is unique. Because it is in the structured manor of the course, our entire source of
      funds will come from a short-term loan from the school. It is a loan that will be paid back at the completion of the
      semester without interest. We have planned it so the loan will cover all start-up costs and initial expenses.


      Table: Start-up Funding

       Start-up Funding
       Start-up Expenses to Fund                       $2,250
       Start-up Assets to Fund                         $3,750
       Total Funding Required                          $6,000

       Assets
       Non-cash Assets from Start-up                   $3,050
       Cash Requirementsfrom Start-up                   $700
       AdditionalCash Raised                               $0
       Cash Balance on Starting Date                    $700
       Total Assets                                    $3,750


       Liabilitiesand Capital

       Liabilities
       Current Borrowing                               $6,000
       Long-term Liabilities                               $0
       Accounts Payable (Outstanding Bills)                $0
       Other Current Liabilities                           $0
       Total Liabilities                               $6,000

       Capital

       Planned Investment
       Owner                                                $0
       Investor                                             $0
       AdditionalInvestment Requirement                     $0
       Total Planned Investment                             $0

       Loss at Start-up (Start-up Expenses)           ($2,250)
       Total Capital                                  ($2,250)


       Total Capital and Liabilities                   $3,750

       Total Funding                                   $6,000




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                                            Perfect Screen Printing

8.2 Important Assumptions

      An important assumption in our company is that we will actually become funded by the school and that they will have
      the entire $6000 needed to start our business. The next important assumption is that established businesses will trust us
      to provide them with the quality products they are looking for. Some companies may not choose us over an existing
      screen printing company due to our youth and inexperience. A third important assumption is that with our academic
      schedule, we will be able to find time to produce the orders.




8.3 Break-even Analysis

      According to the Break-even analysis table, it will take an estimated 63 units to break even for the month. This means a
      combination of small-business sales, sales to students, and youth sports organizations will need to total at least 63 units.
      This number is very obtainable for us, due to the number of contacts we have made individually. This table is
      encouraging for us, because it shows that success is within our reach for each of the months we will be in operation.


      Table: Break-even Analysis

      Break-even Analysis

      Monthly Units Break-even                          63
      Monthly Revenue Break-even                      $633

      Assumptions:
      Average Per-Unit Revenue                      $10.07
      Average Per-Unit Variable Cost                 $4.53
      EstimatedMonthly Fixed Cost                    $348


                                                   Break-even Analysis

                      $300

                      $200

                      $100

                        $0

                    ($100)
                    ($200)

                    ($300)

                    ($400)

                              0            20            40             60             80       100
                                                      Monthly break-even point


                                            Break-even point = where line intersects with 0




                                        Academic Version                                                                 Page 15
                                            Perfect Screen Printing

8.4 Projected Profit and Loss

      In projecting the costs of goods sold we attempted to follow the same seasonal trends as the sales forecasting table. We
      assume that the costs will rise and fall with the amount of sales for that given month. In terms of rent and utilities, they
      are a fixed cost of $100 each per month. The depreciation of our machine is based on a straight-line depreciation
      method over a period of five years. The machines initial value will be $1100 and we predict it will have a salvage value
      of $200 after that time. According to the method, this equates to a $15 a month depreciation expense and an annual
      expense of $180.


      Table: Profit and Loss

      Pro Forma Profit and Loss
                                             FY 2006        FY 2007        FY 2008
      Sales                                   $39,715        $42,494        $45,468
      Direct Costs of Goods                   $17,875        $19,125        $20,464
      Other Costs of Goods                     $2,110               $0             $0
                                             ------------   ------------   ------------
      Cost of Goods Sold                      $19,985        $19,125        $20,464

      Gross Margin                           $19,730        $23,369        $25,005
      Gross Margin %                         49.68%         54.99%         54.99%


      Expenses
      Payroll                                        $0             $0             $0
      Marketing/Promotion                         $600           $600           $600
      Depreciation                                $180           $180           $180
      Rent                                     $1,200         $1,200         $1,200
      Utilities                                $1,200         $1,200         $1,200
      Insurance                                $1,000         $1,000         $1,000
      Payroll Taxes                                  $0             $0             $0
      Other                                          $0             $0             $0
                                             ------------   ------------   ------------
      Total OperatingExpenses                  $4,180         $4,180         $4,180

      Profit Before Interest and Taxes       $15,550        $19,189        $20,825
       Interest Expense                        $600           $600           $600
       Taxes Incurred                         $4,485         $5,577         $6,067

      Net Profit                             $10,465        $13,012        $14,157
      Net Profit/Sales                       26.35%         30.62%         31.14%




                                         Academic Version                                                               Page 16
               Perfect Screen Printing


                       Profit Monthly

 $1,400

 $1,200

 $1,000

   $800

   $600

   $400

   $200

     $0
          Sep Oct Nov Dec Jan Feb Mar Apr May Jun     Jul   Aug




                        Profit Yearly


$16,000

$14,000

$12,000

$10,000

 $8,000

 $6,000

 $4,000

 $2,000

    $0
             FY 2006         FY 2007        FY 2008




            Academic Version                                      Page 17
               Perfect Screen Printing


                   Gross Margin Monthly

 $2,500



 $2,000



 $1,500



 $1,000



   $500



     $0
          Sep Oct Nov Dec Jan Feb Mar Apr May Jun      Jul   Aug




                       Gross Margin Yearly


$30,000


$25,000


$20,000


$15,000


$10,000


 $5,000


    $0
             FY 2006          FY 2007        FY 2008




            Academic Version                                       Page 18
                                          Perfect Screen Printing

8.5 Projected Cash Flow

     Perfect Screen Printing's cash flows are directly related to sales. The cash flows will follow a seasonal trend like sales.
     In the month of September sales will be high do to the fact that businesses will be looking to purchase sweatshirts, long
     sleeve shirts, and jackets for the coming winter months. Students will also be looking to buy apparel as they enter the
     new school year and have more disposable income. In the months of October and November sales will begin to pick up
     slightly and that will directly relate to cash flows slightly picking up. In the month of December sales will pick up do to
     student purchases of gifts for family and friends before they return home for the winter break, therefore cash flows will
     increase. In the months of January and February cash flows will continue at a constant rate. In the months of March
     and April cash flows will increase because sales will pick up do to the warm weather and students and businesses
     needing short sleeve clothing for the spring and summer monthes. Cash flows in the months of May, June, and July are
     rather constant with a slight jump in June do to increasing in sales. Cash Flows in August will jump drastically do to
     sales followingthe seasonal trend and the need for businesses to purchase new clothing for the coming months.



                                                            Cash

            $14,000

            $12,000

            $10,000

             $8,000
                                                                                                       Net Cash Flow
             $6,000                                                                                    Cash Balance

             $4,000

             $2,000

                 $0
                        Sep Oct Nov Dec Jan Feb Mar Apr May Jun                Jul   Aug




                                       Academic Version                                                                Page 19
                                              Perfect Screen Printing

      Table: Cash Flow

      Pro Forma Cash Flow
                                                FY 2006      FY 2007        FY 2008
      Cash Received

      Cash from Operations
      Cash Sales                                 $39,715      $42,494       $45,468
      Subtotal Cash from Operations              $39,715      $42,494       $45,468

      AdditionalCash 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           $0            $0
      Subtotal Cash Received                     $39,715      $42,494       $45,468

      Expenditures                              FY 2006      FY 2007        FY 2008

      Expendituresfrom Operations
      Cash spending                                   $0           $0            $0
      Bill Payments                              $28,342      $29,433       $31,170
      Subtotal Spent on Operations               $28,342      $29,433       $31,170

      AdditionalCash Spent
      Sales Tax, VAT, HST/GST Paid Out               $0            $0            $0
      Principal Repayment of Current
                                                     $0            $0            $0
      Borrowing
      Other LiabilitiesPrincipal Repayment           $0            $0            $0
      Long-term Liabilities Principal
                                                     $0            $0            $0
      Repayment
      Purchase Other Current Assets                   $0           $0            $0
      Purchase Long-term Assets                       $0           $0            $0
      Dividends                                       $0           $0            $0
      Subtotal Cash Spent                        $28,342      $29,433       $31,170

      Net Cash Flow                              $11,373      $13,061       $14,299
      Cash Balance                               $12,073      $25,134       $39,433



8.6 Projected Balance Sheet

      The beginning balance to acquire inventory and assets required to startup our business comes to $3750. Since we also
      need to pay expenses such as machining costs, workers compensation and liability insurance, and other miscellaneous
      petty cash functions, we will be borrowing approximately $6000 to ensure full coverage of all liabilities.

      We will start up the screen printing business in September of 2005, where we have forecasted that we will have
      incoming cash of $2,747, which will increase steadily through the later months and then rise even more in December
      due to the holidays. During these months, students will be buying sweatshirts, sweatpants, and in general, all winter
      apparel. However, since winter break comes right after that peak of income, we will see a slight drop in revenues.
      Nearing Spring and Summer, we will be processing graphic clothing such as tee-shirts and shorts. This will also start to
      increase our sales, bringing cash inflow of nearly $9000 in April and May of 2007.

      As said before, our sales are dependent upon the seasons, which means what we purchase for inventory is also going to
      be effected. We will start off with $1000 of inventory to ensure that we have enough to produce custom clothing upon
      demand. We derived this beginning inventory amount from sales forecasts and surveys. Also, we wanted to make sure
      we had enough inventory to produce apparel in case demand was much higher than we expected. In following months,
      our inventory will increase based on our expected sales. The month before the sales will be effected because we will
      purchase the inventory the month before we know demand will increase.

      Besides clothing, our other inventory consists of silk screens which we will buy in bulk monthly, based on demand.

                                         Academic Version                                                            Page 20
                                           Perfect Screen Printing
      Since you can fit more than one logo on each screen, we will be able to keep this expense to a minimum, therefore only
      having to incur expenses of a few hundred dollars a month.

      We will incur depreciation expense of $15 in the month of September, increasing as month’s pass. Our accounts
      payable will also increase as we will most likely purchase inventory and other current assets on account especially since
      we will not breakeven until a few months into the business.


      Table: Balance Sheet

      Pro Forma Balance Sheet
                                          FY 2006       FY 2007        FY 2008
      Assets

      Current Assets
      Cash                                $12,073        $25,134       $39,433
      Inventory                            $1,664         $1,780        $1,905
      Other Current Assets                 $1,000         $1,000        $1,000
      Total Current Assets                $14,737        $27,914       $42,338

      Long-term Assets
      Long-term Assets                     $1,050         $1,050        $1,050
      Accumulated Depreciation              $180           $360          $540
      Total Long-term Assets                $870           $690          $510
      Total Assets                        $15,607        $28,604       $42,848

      Liabilitiesand Capital              FY 2006       FY 2007        FY 2008

      Current Liabilities
      Accounts Payable                     $1,392         $1,377        $1,463
      Current Borrowing                    $6,000         $6,000        $6,000
      Other Current Liabilities                $0             $0            $0
      Subtotal Current Liabilities         $7,392         $7,377        $7,463

      Long-term Liabilities                    $0             $0            $0
      Total Liabilities                    $7,392         $7,377        $7,463

      Paid-in Capital                           $0            $0            $0
      Retained Earnings                   ($2,250)        $8,215       $21,227
      Earnings                            $10,465        $13,012       $14,157
      Total Capital                         $8,215       $21,227       $35,384
      Total Liabilitiesand Capital        $15,607        $28,604       $42,848

      Net Worth                            $8,215        $21,227       $35,384



8.7 Business Ratios

      For a start-up company in our position, the ratios we show below are right on target. Our ratios, however, are
      consistentlyhigher than the industry standard. This is mainly due to the fact that we have a strong market hold in the
      college communityand recognize the needs of lower priced attire for those students. Our debt ratios are significantly
      higher than the industry because we are funded solely on current liabilities such as loans. Overall, our ratios show that
      we will be a strong company while in operation.




                                       Academic Version                                                                Page 21
                                    Perfect Screen Printing

Table: Ratios

Ratio Analysis
                                     FY 2006    FY 2007   FY 2008     Industry Profile
Sales Growth                          0.00%      7.00%     7.00%              -2.94%

Percent of Total Assets
Inventory                             10.66%      6.22%     4.45%             9.84%
Other Current Assets                   6.41%      3.50%     2.33%            22.56%
Total Current Assets                  94.43%     97.59%    98.81%            56.44%
Long-term Assets                       5.57%      2.41%     1.19%            43.56%
Total Assets                         100.00%    100.00%   100.00%           100.00%

Current Liabilities                   47.36%    25.79%    17.42%             23.25%
Long-term Liabilities                  0.00%     0.00%     0.00%             22.60%
Total Liabilities                     47.36%    25.79%    17.42%             45.85%
Net Worth                             52.64%    74.21%    82.58%             54.15%

Percent of Sales
Sales                                100.00%    100.00%   100.00%           100.00%
Gross Margin                          49.68%     54.99%    54.99%            36.76%
Selling, General &
                                      23.33%    24.37%    23.86%             20.16%
AdministrativeExpenses
Advertising Expenses                   0.00%     0.00%     0.00%               0.43%
Profit Before Interest and Taxes      39.15%    45.16%    45.80%               1.05%

Main Ratios
Current                                  1.99      3.78      5.67               1.84
Quick                                    1.77      3.54      5.42               1.27
Total Debt to Total Assets            47.36%    25.79%    17.42%             54.63%
Pre-tax Return on Net Worth          181.98%    87.57%    57.16%              2.32%
Pre-tax Return on Assets              95.79%    64.99%    47.20%              5.11%

AdditionalRatios                     FY 2006    FY 2007   FY 2008
Net Profit Margin                     26.35%     30.62%    31.14%                 n.a
Return on Equity                     127.39%     61.30%    40.01%                 n.a

Activity Ratios
Inventory Turnover                     12.00      11.11       11.11               n.a
Accounts Payable Turnover              21.36      21.36       21.36               n.a
Payment Days                              13         17          17               n.a
Total Asset Turnover                    2.54       1.49        1.06               n.a

Debt Ratios
Debt to Net Worth                        0.90      0.35        0.21               n.a
Current Liab. to Liab.                   1.00      1.00        1.00               n.a

Liquidity Ratios
Net Working Capital                   $7,345    $20,537   $34,874                 n.a
Interest Coverage                      25.92      31.98     34.71                 n.a

AdditionalRatios
Assets to Sales                         0.39       0.67        0.94               n.a
Current Debt/Total Assets               47%        26%         17%                n.a
Acid Test                               1.77       3.54        5.42               n.a
Sales/Net Worth                         4.83       2.00        1.28               n.a
Dividend Payout                         0.00       0.00        0.00               n.a




                                   Academic Version                                      Page 22
                                Perfect Screen Printing

Table: Sheet1

            Sales    Expenses Profit
     2006      25000    15000     10000
     2007      30000    17500     12500
     2008      35000    20000     15000

Table: Sheet1-2

            Sales    Expenses Profit
     2006      25000    15000     10000
     2007      30000    17500     12500
     2008      35000    20000     15000

Table: Sheet1-3

            Sales    Expenses Profit
     2006      25000    15000     10000
     2007      30000    17500     12500
     2008      35000    20000     15000

Table: Sheet2




                             Academic Version             Page 23
                                                                      Appendix

Appendix Table: Sales Forecast

 Sales Forecast
                                            Sep       Oct     Nov      Dec      Jan      Feb      Mar       Apr     May      Jun        Jul       Aug
 Unit Sales
 Small Business Contract            0%      232      192      202      162      169      172      186      238      192      186       186        176
 College Wear                       0%      119       98       67      104       88       75       86      121       85       76        65        123
 Youth Sports Org.                  0%       51       48       46       43       37       37       37       44       46       49        52         57
 Total Unit Sales                           402      338      315      309      294      284      309      404      322      310       302        356

 Unit Prices                                Sep       Oct      Nov     Dec       Jan      Feb      Mar      Apr     May       Jun       Jul       Aug
 Small Business Contract                   $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00       $6.00
 College Wear                             $20.00   $20.00   $20.00   $20.00   $20.00   $20.00   $20.00   $20.00   $20.00   $20.00   $20.00      $20.00
 Youth Sports Org.                         $7.00    $7.00    $7.00    $7.00    $7.00    $7.00    $7.00    $7.00    $7.00    $7.00    $7.00       $7.00

 Sales
 Small Business Contract                  $1,390   $1,152   $1,212     $974   $1,014   $1,034   $1,113   $1,430   $1,153   $1,113   $1,113      $1,054
 College Wear                             $2,387   $1,954   $1,345   $2,086   $1,763   $1,490   $1,723   $2,416   $1,690   $1,525   $1,295      $2,465
 Youth Sports Org.                          $356     $336     $323     $298     $256     $260     $260     $311    $319      $340     $365        $399
 Total Sales                              $4,133   $3,442   $2,880   $3,359   $3,033   $2,784   $3,096   $4,157   $3,162   $2,978   $2,773      $3,918

 Direct Unit Costs                          Sep       Oct      Nov     Dec       Jan      Feb      Mar      Apr     May       Jun       Jul       Aug
 Small Business Contract         65.00%    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90    $3.90       $3.90
 College Wear                    30.00%    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00    $6.00       $6.00
 Youth Sports Org.               60.00%    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20    $4.20       $4.20

 Direct Cost of Sales
 Small Business Contract                    $904     $749     $788     $633     $659     $672     $723     $929    $749      $723     $723        $685
 College Wear                               $716     $586     $403     $626     $529     $447     $517     $725    $507      $458     $389        $740
 Youth Sports Org.                          $214     $202     $194     $179     $154     $156     $156     $186    $192      $204     $219        $239
 Subtotal Direct Cost of Sales            $1,833   $1,537   $1,385   $1,438   $1,342   $1,275   $1,397   $1,841   $1,448   $1,385   $1,331      $1,664




                                                              Academic Version                                                                Page 24
                                                                                             Appendix

Appendix Table: Profit and Loss

 Pro Forma Profit and Loss
                                                Sep             Oct           Nov            Dec             Jan           Feb             Mar            Apr           May             Jun             Jul           Aug
 Sales                                      $4,133         $3,442         $2,880         $3,359         $3,033         $2,784         $3,096         $4,157         $3,162         $2,978         $2,773          $3,918
 Direct Costs of Goods                      $1,833         $1,537         $1,385         $1,438         $1,342         $1,275         $1,397         $1,841         $1,448         $1,385         $1,331          $1,664
 Other Costs of Goods                          $200           $300            $80           $110            $90           $100           $180           $200           $300           $250           $150            $150
                                          ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------    ------------
 Cost of Goods Sold                         $2,033         $1,837         $1,465         $1,548         $1,432         $1,375         $1,577         $2,041         $1,748         $1,635         $1,481          $1,814

 Gross Margin                               $2,100         $1,605         $1,415         $1,811         $1,601         $1,409         $1,520         $2,116         $1,414         $1,343         $1,292          $2,104
 Gross Margin %                            50.80%         46.64%         49.12%         53.91%         52.80%         50.61%         49.08%         50.91%         44.72%         45.10%         46.59%          53.70%


 Expenses
 Payroll                                          $0             $0             $0             $0             $0             $0             $0             $0             $0             $0             $0              $0
 Marketing/Promotion                            $50            $50            $50            $50            $50            $50            $50            $50            $50            $50            $50             $50
 Depreciation                                   $15            $15            $15            $15            $15            $15            $15            $15            $15            $15            $15             $15
 Rent                                          $100           $100           $100           $100           $100           $100           $100           $100           $100           $100           $100            $100
 Utilities                                     $100           $100           $100           $100           $100           $100           $100           $100           $100           $100           $100            $100
 Insurance                                     $300            $70            $70            $70            $70            $70            $70            $70            $70            $70            $70               $0
 Payroll Taxes                      15%           $0             $0             $0             $0             $0             $0             $0             $0             $0             $0             $0              $0
 Other                                            $0             $0             $0             $0             $0             $0             $0             $0             $0             $0             $0              $0
                                          ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------   ------------    ------------
 Total Operating Expenses                      $565           $335           $335           $335           $335           $335           $335           $335           $335           $335           $335            $265

 Profit Before Interest and Taxes           $1,535         $1,270         $1,080         $1,476         $1,266         $1,074         $1,185         $1,781         $1,079         $1,008           $957          $1,839
  Interest Expense                             $50            $50            $50            $50            $50            $50            $50            $50            $50            $50            $50             $50
  Taxes Incurred                              $445           $366           $309           $428           $365           $307           $340           $519          $309            $287           $272            $537

 Net Profit                                 $1,039          $854           $721           $998           $852           $717           $794          $1,212          $720           $671           $635           $1,252
 Net Profit/Sales                          25.15%         24.82%         25.03%         29.71%         28.07%         25.75%         25.65%         29.15%         22.78%         22.52%         22.90%          31.96%




                                                                          Academic Version                                                                                                                     Page 25
                                                                             Appendix

Appendix Table: Cash Flow

 Pro Forma Cash Flow
                                                   Sep       Oct     Nov      Dec       Jan     Feb      Mar       Apr     May       Jun        Jul       Aug
 Cash Received

 Cash from Operations
 Cash Sales                                      $4,133   $3,442   $2,880   $3,359   $3,033   $2,784   $3,096   $4,157   $3,162    $2,978    $2,773     $3,918
 Subtotal Cash from Operations                   $4,133   $3,442   $2,880   $3,359   $3,033   $2,784   $3,096   $4,157   $3,162    $2,978    $2,773     $3,918

 Additional Cash Received
 Sales Tax, VAT, HST/GST Received        0.00%       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 New Current Borrowing                               $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 New Other Liabilities (interest-free)               $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 New Long-term Liabilities                           $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Sales of Other Current Assets                       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Sales of Long-term Assets                           $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 New Investment Received                             $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Subtotal Cash Received                          $4,133   $3,442   $2,880   $3,359   $3,033   $2,784   $3,096   $4,157   $3,162    $2,978    $2,773     $3,918

 Expenditures                                      Sep       Oct     Nov      Dec       Jan     Feb      Mar       Apr     May       Jun        Jul       Aug

 Expenditures from Operations
 Cash spending                                       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Bill Payments                                   $2,086   $3,040   $2,125   $2,209   $2,224   $2,025   $2,211   $2,923   $2,659    $2,138    $2,144     $2,557
 Subtotal Spent on Operations                    $2,086   $3,040   $2,125   $2,209   $2,224   $2,025   $2,211   $2,923   $2,659    $2,138    $2,144     $2,557

 Additional Cash Spent
 Sales Tax, VAT, HST/GST Paid Out                   $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Principal Repayment of Current
                                                    $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Borrowing
 Other Liabilities Principal Repayment              $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Long-term Liabilities Principal
                                                    $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Repayment
 Purchase Other Current Assets                       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Purchase Long-term Assets                           $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Dividends                                           $0       $0       $0       $0       $0       $0       $0       $0       $0        $0        $0         $0
 Subtotal Cash Spent                             $2,086   $3,040   $2,125   $2,209   $2,224   $2,025   $2,211   $2,923   $2,659    $2,138    $2,144     $2,557

 Net Cash Flow                                   $2,047     $402     $755   $1,149     $810     $759     $885   $1,233    $503       $840      $629     $1,361
 Cash Balance                                    $2,747   $3,149   $3,904   $5,054   $5,863   $6,622   $7,507   $8,741   $9,243   $10,083   $10,712    $12,073




                                                                   Academic Version                                                                   Page 26
                                                                                         Appendix

Appendix Table: Balance Sheet

 Pro Forma Balance Sheet
                                                         Sep        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May        Jun         Jul        Aug
 Assets                          Starting Balances

 Current Assets
 Cash                                        $700     $2,747     $3,149     $3,904     $5,054     $5,863     $6,622     $7,507     $8,741     $9,243    $10,083    $10,712     $12,073
 Inventory                                 $1,000     $1,833     $1,537     $1,385     $1,438     $1,342     $1,275     $1,397     $1,841     $1,448     $1,385     $1,331      $1,664
 Other Current Assets                      $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000     $1,000      $1,000
 Total Current Assets                      $2,700     $5,580     $5,686     $6,290     $7,492     $8,205     $8,897     $9,904    $11,581    $11,691    $12,468    $13,044     $14,737

 Long-term Assets
 Long-term Assets                          $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050     $1,050      $1,050
 Accumulated Depreciation                      $0        $15        $30        $45        $60        $75        $90       $105       $120       $135       $150       $165        $180
 Total Long-term Assets                    $1,050     $1,035     $1,020     $1,005       $990       $975       $960       $945       $930       $915       $900       $885        $870
 Total Assets                              $3,750     $6,615     $6,706     $7,295     $8,482     $9,180     $9,857    $10,849    $12,511    $12,606    $13,368    $13,929     $15,607

 Liabilities and Capital                                 Sep        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May        Jun         Jul        Aug

 Current Liabilities
 Accounts Payable                              $0     $1,826     $1,062       $930     $1,119       $966       $927     $1,124     $1,575      $949      $1,041       $966      $1,392
 Current Borrowing                         $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000     $6,000      $6,000
 Other Current Liabilities                     $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0          $0
 Subtotal Current Liabilities              $6,000     $7,826     $7,062     $6,930     $7,119     $6,966     $6,927     $7,124     $7,575     $6,949     $7,041     $6,966      $7,392

 Long-term Liabilities                         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0          $0
 Total Liabilities                         $6,000     $7,826     $7,062     $6,930     $7,119     $6,966     $6,927     $7,124     $7,575     $6,949     $7,041     $6,966      $7,392

 Paid-in Capital                               $0          $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0          $0
 Retained Earnings                       ($2,250)    ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)   ($2,250)    ($2,250)
 Earnings                                      $0      $1,039     $1,894     $2,615     $3,612     $4,464     $5,181     $5,975     $7,187     $7,907     $8,578     $9,213    $10,465
 Total Capital                           ($2,250)    ($1,211)     ($356)       $365     $1,362     $2,214     $2,931     $3,725     $4,937     $5,657     $6,328     $6,963      $8,215
 Total Liabilities and Capital             $3,750      $6,615     $6,706     $7,295     $8,482     $9,180     $9,857   $10,849    $12,511    $12,606    $13,368    $13,929     $15,607

 Net Worth                               ($2,250)    ($1,211)    ($356)       $365     $1,362     $2,214     $2,931     $3,725     $4,937     $5,657     $6,328     $6,963      $8,215




                                                                           Academic Version                                                                                   Page 27

				
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