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domain through other means and that any disclosure or use of same by reader,may cause serious harm or damage to _______________.
Upon request, this document is to be immediately returned to _______________.
___________________Signature
___________________Name (typed or printed)
___________________Date
This is a business plan. It does not imply an offering of securities.
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Table of ContentsConfidentiality Agreement ...........................................................................................................................1
Table of Contents .........................................................................................................................................11.0 Executive Summary ............................................................................................................................... 1
1.1 Objectives .............................................................................................................................................. 2
1.2 Mission ...................................................................................................................................................21.3 Keys to Success ......................................................................................................................................3
2.0 Company Summary ............................................................................................................................... 3
2.1 Company Ownership ............................................................................................................................. 32.2 Start-up Summary .................................................................................................................................. 4
Table: Start-up ..................................................................................................................................... 4
3.0 Products and Services ............................................................................................................................ 5
4.0 Market Analysis Summary .................................................................................................................... 54.1 Market Segmentation ............................................................................................................................. 6
Table: Market Analysis ............................................................................................................................6
4.2 Target Market Segment Strategy ........................................................................................................... 74.3 Service Business Analysis ..................................................................................................................... 7
4.3.1 Competition and Buying Patterns ................................................................................................... 7
5.0 Web Plan Summary ............................................................................................................................... 95.1 Website Marketing Strategy .................................................................................................................. 9
Development Requirements ....................................................................................................................... 10
Website Outline ..................................................................................................................................... 10
6.0 Strategy and Implementation Summary ...............................................................................................10
6.1 SWOT Analysis ................................................................................................................................... 116.1.1 Strengths .......................................................................................................................................11
6.1.2 Weaknesses ...................................................................................................................................116.1.3 Opportunities .................................................................................................................................11
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Table: Profit and Loss ........................................................................................................................ 18
8.5 Projected Cash Flow ............................................................................................................................ 21
Table: Cash Flow ............................................................................................................................... 218.6 Projected Balance Sheet .......................................................................................................................23
Table: Balance Sheet ..........................................................................................................................23
.................................................................................................................................................................... 25
8.7 Business Ratios .................................................................................................................................... 25
Table: Ratios ...................................................................................................................................... 25Table: Sales Forecast ........................................................................................................................... 1
.............................................................................................................................................................. 1
Table: Personnel ...................................................................................................................................2
.............................................................................................................................................................. 2
Table: Profit and Loss ..........................................................................................................................3
.............................................................................................................................................................. 4
Table: Cash Flow ................................................................................................................................. 5
.............................................................................................................................................................. 7
Table: Balance Sheet ............................................................................................................................8
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1.0 Executive SummaryE-Mechanic Business (EMB) is a start-up organization that offers a completedomestic and foreign car repair service as well as a full-featured retail partsstore and Online part providers. EMB will serve the Islamabad- Rawalpindi, ORmarket. EMB will grow into a business with outstanding sales by year three.
The Concept
The auto repair market has a lot of competition, however, almost all only offerservice. EMB will differentiate themselves by not only offering a hassle-freerepair service, but a fully stocked parts store physical and Online based. Notonly will this serve a wide range of customers for both service and parts, butthe parts department will support the service department by allowing theservice department to turnaround jobs far faster than the competition withgenerally all of the needed parts in stock and on location.
EMB also differentiates themselves by having 5 bays at location. This offersincredible value to customers who need their cars fixed right away. Waits forservice and parts are ideas not entertained by EMB. Lastly, EMB offers unlimitedshuttle service for repair customers making the entire service experience aspainless and convenient as possible.EMB will attract and maintain a loyal customer base through their customer-oriented focus on business. All employees are trained and held responsible forproviding superior service, developing a long lasting trust bond with customers.This is very important, especially in the auto repair industry where trust andhonesty are not the image of repair facilities.
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Sales
Gross Margin
Net Profit
$0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
$2,100,000
$2,400,000
$2,700,000
$3,000,000
FY 2012 FY 2013 FY 2014
Highlights
1.1 ObjectivesThe objectives of the E-Mechanic business website are:
To drive traffic from the website to the garage those need repair.
To expand the community of E-Mechanic business customers.
To provide customers with a substantial list of questions and answers
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parts inventory, to ensure that parts are always in stock, while keeping abalanced level of inventory to maximize inventory turnover. Finally, EMB has
strong vendor relationships with the most service conscious vendors who arecapable of shipping major parts rapidly (on an overnight timeline in mostcases).
1.3 Keys to Success
EMB's keys to success will include:
1. Expedient and convenient auto repair services.2. Growing and maintaining a referral network of local towing service
companies.3. A wide range of auto parts inventory that is (nearly) never out of stock.4. Rapid order and delivery of major auto parts items over internet.
2.0 Company SummaryE-Mechanic Business is a new start-up incorporated business managed by fourpartners. Three of the four partners represent sales/management, and onefocuses on the finance/administration section of the business.The economic growth of the last several years has resulted in increaseddisposable income. Many people have chosen to spend part of their increased
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2.2 Start-up Summary
Each of the four co-owners will invest an equal amount. The remainder of therequired financing will come from a ten year Small Business Administration(SBA) loan and a short-term loan.
Table: Start-up
Start-up
Requirements
Start-upExpenses
Legal $30,000Rent $10,000ConsultantFees
$10,000
Others $0Total Start-upExpenses
$50,000
Start-upAssetsCash Required $5,000,0
00
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$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Expenses Assets Investment Loans
Start-up
3.0 Products and ServicesE-Mechanic business has the core competencies amongst its large crew to workon all makes and models of domestic and foreign vehicles. With five servicebays at location, and all employees focused on superior customer service, quick
turnaround is always the standard at EMB. E-Mechanic business strives to beaccurate and honest with customers in terms of quoting cost estimates andrepair completion time estimates. E-Mechanic business employees focus ondelivering what they promise. This focus on building strong customer
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The table below further estimates the total market potential of type of servicesrendered by E-Mechanic Business in the Islamabad- Rawalpindi area.
4.1 Market SegmentationE-Mechanic Business focuses on the middle and upper income markets. Thismarket looks for high quality, rapid service with as much convenience aspossible. Most individuals in this market segment are willing to pay an extrapremium within the pricing of auto repair services to avoid the commoninconveniences of having a vehicle tied up in a repair shop.
Local residents regular customer base:-
E-Mechanic Business wants to establish a significantly large regular customerbase. This will establish a healthy, consistent revenue base to ensure stability ofthe business.
Emergency towing local and freeway traffic:-
Emergency towing of local and freeway traffic comprises approximately 20% ofrevenues. Convenience, regular referrals from tow truck companies, and highquality, rapid service are critical to capture this segment of the market.
Table: Market Analysis
MarketAnalysis
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Local Resident
Freeway Traffic
Online Customers'
Others
Market Analysis (Pie)
4.2 Target Market Segment StrategyE-Mechanic Business will focus on its target market, the middle and upper classmarket, and establish a reputable image from that target market's perspective,by offering convenience, online spare-parts booking and timely delivery,expedient auto repair services, customer service excellence, and by workingwith local towing companies.
4 3 Service Business Analysis
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customer service. Additionally, its honest reputation will be a major factor inrepeat business and building a large base of regular, loyal customers.
Primary competitors are engaged principally in the retail sale of automotiveparts, tires and accessories, automotive maintenance and service and theinstallation of parts. Larger competitors have adopted the "supercenter" storemodel, a freestanding, "one-stop" shopping automotive warehouse thatfeatures state-of-the-art service bays. These "supercenters" carry thousands ofstock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and "buy-for-resale"customer sectors.Large competitors' stores typically carry the same basic product line, withvariations based on the number and type of cars registered in the differentmarkets. A full complement of inventory at a typical supercenter includes anaverage of approximately 25,000 items.
Automotive product lines usually include:
Tires. Batteries.
New and remanufactured parts for domestic and imported cars, including:
Suspension parts.
Ignition parts.
Exhaust systems.
Engines and engine parts.
Oil and air filters, belts, hoses, and air conditioning parts. Lighting.
Wiper blades.
brake parts
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available amongst their various service centers. This type of system creates aservice history for each vehicle, provides customers with a comprehensive sales
document, and enables the service center to maintain a service customerdatabase.
5.0 Web Plan SummaryThe key champion for the development of the website is the co-owner of E-
Mechanics, Ejaz-ul-Haq. He will be responsible for managing the development ofthe site and will work closely with Mr. Shakeel ur Rehman on the design andcreation. He will also be responsible for implementing the promotions that willbe run at least monthly on the site.Most of the site development will be carried out by the consultant, Shakeel urRehman. He will initially be paid a pre-arranged fee as he completes each stageof development. Later he will be paid a monthly retainer to maintain the site. M.Tanveer Ahmed will work with Shakeel to develop the content section of the sitedealing with typical car problems and tips on maintaining your vehicle duringthe different seasons.
5.1 Website Marketing StrategyThe website will have two main goals:
1. To provide potential and existing customers with information about their carsthrough the provision of a typical problems area, plus an Ask the MechanicQuestion and Answer section where they can have specific questions about
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Development Requirements
Website Outline
The site will be designed with the following technology: Drupal, SQL and HTML.
Home Page: explains the website's relation to the company, with visible links
to the other sections of the site.
Section 1
Q&A:
Begins with search. Visible links will go off to the subsections below.
Ask the Mechanic: simple form that sends directly to the head mechanic.
Q&A Browse: users will be able to browse through other customer's Q&Asessions.
Section 2
Booking
Page 1: first page will display available dates, customer clicks on preferred
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6.1 SWOT Analysis
6.1.1 Strengths
First mover advantage as being the first online auto-parts supplier inIslamabad-Rawalpindi.
Customer oriented services as E-Mechanic business provides solution at yourdoor steps.
Educated, well-trained and experienced work-force.
Vast variety of spare-parts (Local + foreign cars).
24/7 service on the shop as well as on the freeways service.
6.1.2 Weaknesses
More cost of freeways service as compared to the traditional service.
6.1.3 Opportunities
Wide range of online customers'. Upcoming new technology could be the opportunity for E-Mechanic Business. New markets or Expansion of business.
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6.3 Marketing StrategyOur strategy is based on serving the niche market size. This area is full ofcustomers' that can't get online parts and on their door step services from themajor vendors who focus only on their specified work area. Also:What begins as a customized version of a standard product, tailored to theneeds of local customers, can eventually become a niche product that will fillthe needs of similar customers across the country.
We are planning our marketing strategy so that we can eventually reachspecific kinds of customers across broad geographic lines.We focus on satisfying the needs of customers.
6.4 Sales StrategyE-Mechanic business will focus its sales strategy on effectively reaching thetarget customer segment of upper and middle class customers. For thispurposes, the company will employ direct sales staff. At the same time, thecompany will further strengthen its relationships with the tow truck companiesto capture auto repair needs of the local and highway traffic. EMB will have itsown website which can be used as a marketing tool and help EMB to strengthenrelationship with customers; through their feedbacks.
E-Mechanic business plans to deliver sales as shown in the table and chartsbelow.
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Auto Repair Jobs $1,273,362
$1,337,030
$1,403,881
Auto parts $1,591,703
$1,671,288
$1,754,852
Total Sales $2,865,065
$3,008,318
$3,158,733
Direct Cost ofSales
FY 2012 FY 2013 FY 2014
Auto Repair Jobs $318,340
$334,257
$350,969
Auto Parts $1,273,362
$1,337,030
$1,403,881
Subtotal DirectCost of Sales
$1,591,702
$1,671,287
$1,754,850
N D J F b M A M J
Auto Repair Jobs
Auto parts
$0
$30,000
$60,000
$90,000
$120,000
$150,000
$180,000
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Sales Monthly
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Auto Repair Jobs
Auto parts
$0
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
FY 2012 FY 2013 FY 2014
Sales by Year
6.5 Milestones
Table: Milestones
Milestones
Milestone StartDate
End Date Budget Manager
Department
S l 10/16/20 10/16/20 $0 ABC D t
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Consultant
$120,000
$120,000
$120,000
TotalPeople
10 11 12
TotalPayroll
$455,301
$462,007
$468,847
8.0 Financial PlanSalaries and rent are the two major expenses, while depreciation is anothersignificant cost that will increase as the company develops.We want to finance growth mainly through cash flow. We recognize that thismeans we will have to grow slowly.
8.1 Start-up FundingTable: Start-up Funding
Start-up FundingStart-up Expenses toFund
$50,000
Start-up Assets to
Fund
$7,100,0
00Total FundingRequired
$7,150,000
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00Long-term Liabilities $2,000,0
00Accounts Payable(Outstanding Bills)
$0
Other CurrentLiabilities (interest-free)
$4,000,000
Total Liabilities $7,000,000
Capital
Planned InvestmentM. Ejaz ul Haq $1,000,0
00M. Tanveer Ahmed $1,000,0
00Additional InvestmentRequirement
$0
Total PlannedInvestment
$2,000,000
Loss at Start-up(Start-up Expenses)
($50,000)
Total Capital $1,950,000
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Monthly Revenue
Break-even
$98,0
35
Assumptions:Average PercentVariable Cost
56%
Estimated MonthlyFixed Cost
$43,571
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
($10,000)
($20,000)
($30,000)
($40,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
Break-even Analysis
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Total Cost of Sales $1,591,702
$1,671,287
$1,754,850
Gross Margin $1,273,363
$1,337,031
$1,403,883
Gross Margin % 44.44% 44.44% 44.44%
ExpensesPayroll $455,30
1
$462,00
7
$468,84
7Marketing/Promotion
$15,000 $5,000 $2,500
Depreciation $0 $0 $0Machinery $26,824 $27,360 $27,907General &Administration
Expense
$10,728 $10,942 $11,160
Marketing Expense $15,000 $5,000 $2,500
Total OperatingExpenses
$522,853
$510,309
$512,914
Profit BeforeInterest and Taxes
$750,510
$826,722
$890,969
EBITDA $750,510
$826,722
$890,969
Interest Expense $350,000
$350,000
$350,000
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$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Profit Monthly
$150 000
$200,000
$250,000
$300,000
$350,000
$400,000
Profit Yearly
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$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Gross Margin Monthly
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Gross Margin Yearly
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Pro Forma Cash FlowFY 2012 FY 2013 FY 2014
Cash Received
Cash from OperationsCash Sales $2,865,0
65$3,008,3
18$3,158,7
33Subtotal Cash fromOperations
$2,865,065
$3,008,318
$3,158,733
Additional CashReceivedSales Tax, VAT, HST/GSTReceived
$429,760
$451,248
$473,810
New Current Borrowing $0 $0 $0New Other Liabilities(interest-free)
$0 $0 $0
New Long-termLiabilities $0 $0 $0
Sales of Other CurrentAssets
$0 $0 $0
Sales of Long-termAssets
$0 $0 $0
New InvestmentReceived
$200,000
$0 $0
Subtotal Cash Received $3,494,825
$3,459,566
$3,632,543
Expenditures FY 2012 FY 2013 FY 2014
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Long-term LiabilitiesPrincipal Repayment
$0 $0 $0
Purchase Other CurrentAssets
$0 $0 $0
Purchase Long-termAssets
$0 $0 $0
Dividends $0 $0 $0Subtotal Cash Spent $1,526,7
43$2,673,8
11$2,727,3
25
Net Cash Flow $1,968,082
$785,754
$905,217
Cash Balance $8,818,082
$9,603,836
$10,509,054
Net Cash Flow
Cash Balance
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Cash
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Assets
Current AssetsCash $8,818,0
82$9,603,8
36$10,509,
054Inventory $171,032 $179,584 $188,563Other CurrentAssets
$100,000 $100,000 $100,000
Total CurrentAssets
$9,089,114
$9,883,420
$10,797,616
Long-termAssetsLong-termAssets
$1,000,000
$1,000,000
$1,000,000
AccumulatedDepreciation
$0 $0 $0
Total Long-termAssets $1,000,000 $1,000,000 $1,000,000Total Assets $10,089,
114$10,883,
420$11,797,
616
Liabilities andCapital
FY 2012 FY 2013 FY 2014
CurrentLiabilitiesAccountsPayable
$216,962 $178,643 $186,254
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Earnings $292,392 $381,378 $432,775Total Capital $2,442,3
92
$2,823,7
70
$3,256,5
45Total Liabilitiesand Capital
$10,089,114
$10,883,420
$11,797,616
Net Worth $2,442,392
$2,823,770
$3,256,545
8.7 Business Ratios
Table: Ratios
Ratio AnalysisFY 2012 FY 2013 FY 2014 Industry
ProfileSales Growth 0.00% 5.00% 5.00% 0.00%
Percent of Total AssetsInventory 1.70% 1.65% 1.60% 0.00%Other Current Assets 0.99% 0.92% 0.85% 100.00%
Total Current Assets 90.09% 90.81% 91.52% 100.00%Long-term Assets 9.91% 9.19% 8.48% 0.00% Total Assets 100.00% 100.00% 100.00% 100.00%
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Total Debt to Total Assets 75.79% 74.05% 72.40% 0.00%Pre-tax Return on Net
Worth
16.40% 16.88% 16.61% 0.00%
Pre-tax Return on Assets 3.97% 4.38% 4.59% 0.00%
Additional Ratios FY 2012 FY 2013 FY 2014Net Profit Margin 10.21% 12.68% 13.70% n.aReturn on Equity 11.97% 13.51% 13.29% n.a
Activity Ratios
Inventory Turnover 4.08 9.53 9.53 n.aAccounts PayableTurnover
5.94 12.17 12.17 n.a
Payment Days 27 33 29 n.a Total Asset Turnover 0.28 0.28 0.27 n.a
Debt RatiosDebt to Net Worth 3.13 2.85 2.62 n.aCurrent Liab. to Liab. 0.74 0.75 0.77 n.a
Liquidity RatiosNet Working Capital $3,442,3
92$3,823,7
70$4,256,5
45n.a
Interest Coverage 2.14 2.36 2.55 n.a
Additional RatiosAssets to Sales 3.52 3.62 3.73 n.aCurrent Debt/Total Assets 56% 56% 55% n.aAcid Test 1 58 1 60 1 62 n a
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Appendix
Table: Sales Forecast
SalesForecast
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctSalesAuto Repair
Jobs$80,000
$84,000
$88,200
$92,610
$97,240
$102,10
2
$107,20
7
$112,56
7
$118,19
5
$124,10
5
$130,31
0
$136,82
6Auto parts $10
0,000
$105,00
0
$110,25
0
$115,76
2
$121,55
0
$127,62
8
$134,00
9
$140,70
9
$147,74
4
$155,13
1
$162,88
8
$171,03
2Total Sales $18
0,00
0
$189,00
0
$198,45
0
$208,37
2
$218,79
0
$229,73
0
$241,21
6
$253,27
6
$265,93
9
$279,23
6
$293,19
8
$307,85
8
Direct Costof Sales
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Auto RepairJobs
$20,000
$21,000
$22,050
$23,152
$24,310
$25,526
$26,802
$28,142
$29,549
$31,026
$32,577
$34,206
Auto Parts $80,000
$84,000
$88,200
$92,610
$97,240
$102,10
2
$107,20
7
$112,56
7
$118,19
5
$124,10
5
$130,31
0
$136,82
6Subtotal
Direct Costof Sales
$10
0,000
$10
5,000
$11
0,250
$11
5,762
$12
1,550
$12
7,628
$13
4,009
$14
0,709
$14
7,744
$15
5,131
$16
2,887
$17
1,032
Page 1
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Appendix
Table: Personnel
PersonnelPlan
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMechanics
$25,000
$25,500
$26,010
$26,530
$27,061
$27,602
$28,154
$28,717
$29,291
$29,877
$30,475
$31,084
Consultant
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
TotalPeople
10 10 10 10 10 10 10 10 10 10 10 10
TotalPayroll
$35,000
$35,500
$36,010
$36,530
$37,061
$37,602
$38,154
$38,717
$39,291
$39,877
$40,475
$41,084
Page 2
A di
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Appendix
Table: Profit and Loss
Pro FormaProfit and Loss
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales $180,00
0
$189,00
0
$198,45
0
$208,37
2
$218,79
0
$229,73
0
$241,21
6
$253,27
6
$265,93
9
$279,23
6
$293,19
8
$307,85
8Direct Cost ofSales
$100,00
0
$105,00
0
$110,25
0
$115,76
2
$121,55
0
$127,62
8
$134,00
9
$140,70
9
$147,74
4
$155,13
1
$162,88
7
$171,03
2Other Costs ofSales
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost ofSales
$100,00
0
$105,00
0
$110,25
0
$115,76
2
$121,55
0
$127,62
8
$134,00
9
$140,70
9
$147,74
4
$155,13
1
$162,88
7
$171,03
2
Gross Margin $80,000
$84,000
$88,200
$92,610
$97,240
$102,10
2
$107,20
7
$112,56
7
$118,19
5
$124,10
5
$130,31
1
$136,82
6Gross Margin%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
44.44%
Expenses
Payroll $35,000
$35,500
$36,010
$36,530
$37,061
$37,602
$38,154
$38,717
$39,291
$39,877
$40,475
$41,084
Marketing/Promotion
$5,000
$5,000
$5,000
$0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Machinery 15
%$2,000
$2,040
$2,081
$2,123
$2,165
$2,208
$2,252
$2,297
$2,343
$2,390
$2,438
$2,487
General &Administration
0%
$800
$816
$832
$849
$866
$883
$901
$919
$937
$956
$975
$994
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ExpenseMarketingExpense
0%
$5,000
$5,000
$5,000
$0 $0 $0 $0 $0 $0 $0 $0 $0
TotalOperating
Expenses
$47,800
$48,356
$48,923
$39,502
$40,092
$40,693
$41,307
$41,933
$42,571
$43,223
$43,888
$44,565
Profit BeforeInterest and
Taxes
$32,200
$35,644
$39,277
$53,108
$57,148
$61,409
$65,900
$70,634
$75,624
$80,882
$86,423
$92,261
EBITDA $32,200
$35,644
$39,277
$53,108
$57,148
$61,409
$65,900
$70,634
$75,624
$80,882
$86,423
$92,261
InterestExpense
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
$29,167
Taxes
Incurred
$91
0
$1,9
43
$3,0
33
$7,1
82
$8,3
94
$9,6
73
$11,
020
$12,
440
$13,
937
$15,
515
$11,
451
$12,
619
Net Profit $2,123
$4,534
$7,077
$16,759
$19,587
$22,570
$25,713
$29,027
$32,520
$36,201
$45,805
$50,475
NetProfit/Sales
1.18%
2.40%
3.57%
8.04%
8.95%
9.82%
10.66%
11.46%
12.23%
12.96%
15.62%
16.40%
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Table: Cash Flow
Pro Forma CashFlow
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Cash Received
Cash fromOperationsCash Sales $180,
000$189,000
$198,450
$208,372
$218,790
$229,730
$241,216
$253,276
$265,939
$279,236
$293,198
$307,858
Subtotal Cashfrom Operations
$180,000
$189,000
$198,450
$208,372
$218,790
$229,730
$241,216
$253,276
$265,939
$279,236
$293,198
$307,858
Additional Cash
ReceivedSales Tax, VAT,HST/GSTReceived
15.00%
$27,000
$28,350
$29,768
$31,256
$32,819
$34,460
$36,182
$37,991
$39,891
$41,885
$43,980
$46,179
New CurrentBorrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New OtherLiabilities(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 OtherCurrent 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 InvestmentReceived
$200,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal CashReceived
$407,000
$217,350
$228,218
$239,628
$251,609
$264,190
$277,398
$291,267
$305,830
$321,121
$337,178
$354,037
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Expenditures Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Expendituresfrom OperationsCash Spending $35,0
00
$35,5
00
$36,0
10
$36,5
30
$37,0
61
$37,6
02
$38,1
54
$38,7
17
$39,2
91
$39,8
77
$40,4
75
$41,0
84Bill Payments $1,429
$42,913
$44,004
$44,920
$39,363
$40,637
$41,977
$46,576
$142,464
$201,476
$210,683
$215,000
Subtotal Spent onOperations
$36,429
$78,413
$80,014
$81,450
$76,424
$78,239
$80,131
$85,293
$181,755
$241,353
$251,158
$256,084
Additional CashSpentSales Tax, VAT,HST/GST Paid Out
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
PrincipalRepayment ofCurrentBorrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other LiabilitiesPrincipalRepayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-termLiabilitiesPrincipal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase OtherCurrent 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 $0Subtotal CashSpent
$36,429
$78,413
$80,014
$81,450
$76,424
$78,239
$80,131
$85,293
$181,755
$241,353
$251,158
$256,084
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Net Cash Flow $370,571
$138,937
$148,203
$158,178
$175,184
$185,951
$197,267
$205,974
$124,075
$79,769
$86,020
$97,953
Cash Balance $7,220,571
$7,359,508
$7,507,711
$7,665,889
$7,841,073
$8,027,024
$8,224,291
$8,430,265
$8,554,340
$8,634,109
$8,720,129
$8,818,082
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Table: Balance Sheet
Pro FormaBalanceSheet
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctAssets StartingBalances
CurrentAssetsCash $6,850,
000$7,220,571
$7,359,508
$7,507,711
$7,665,889
$7,841,073
$8,027,024
$8,224,291
$8,430,265
$8,554,340
$8,634,109
$8,720,129
$8,818,082
Inventory $1,000,
000
$900,
000
$795,
000
$684,
750
$568,
988
$447,
438
$319,
810
$185,
801
$140,
709
$147,
744
$155,
131
$162,
887
$171,
032OtherCurrentAssets
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
TotalCurrentAssets
$7,950,000
$8,220,571
$8,254,508
$8,292,461
$8,334,877
$8,388,511
$8,446,834
$8,510,092
$8,670,974
$8,802,084
$8,889,240
$8,983,016
$9,089,114
Long-termAssets
Long-termAssets
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
AccumulatedDepreciation
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Total Assets $8,950, $9,22 $9,25 $9,29 $9,33 $9,38 $9,44 $9,51 $9,67 $9,80 $9,88 $9,98 $10,0
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000 0,571 4,508 2,461 4,877 8,511 6,834 0,092 0,974 2,084 9,240 3,016 89,114
Liabilitiesand Capital
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
CurrentLiabilitiesAccountsPayable
$0 $41,447
$42,500
$43,609
$38,010
$39,239
$40,533
$41,895
$135,759
$194,457
$203,527
$207,518
$216,962
CurrentBorrowing
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
OtherCurrentLiabilities
$4,000,000
$4,027,000
$4,055,350
$4,085,118
$4,116,373
$4,149,192
$4,183,651
$4,219,834
$4,257,825
$4,297,716
$4,339,601
$4,383,581
$4,429,760
Subtotal
CurrentLiabilities
$5,000,
000
$5,06
8,447
$5,09
7,850
$5,12
8,727
$5,15
4,384
$5,18
8,431
$5,22
4,184
$5,26
1,729
$5,39
3,584
$5,49
2,173
$5,54
3,128
$5,59
1,099
$5,64
6,722
Long-termLiabilities
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
TotalLiabilities
$7,000,000
$7,068,447
$7,097,850
$7,128,727
$7,154,384
$7,188,431
$7,224,184
$7,261,729
$7,393,584
$7,492,173
$7,543,128
$7,591,099
$7,646,722
Paid-inCapital
$2,000,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
$2,200,000
RetainedEarnings ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000)Earnings $0 $2,12
3$6,65
7$13,7
35$30,4
94$50,0
81$72,6
50$98,3
64$127,
391$159,
911$196,
112$241,
917$292,
392TotalCapital
$1,950,000
$2,152,123
$2,156,657
$2,163,735
$2,180,494
$2,200,081
$2,222,650
$2,248,364
$2,277,391
$2,309,911
$2,346,112
$2,391,917
$2,442,392
TotalLiabilitiesand Capital
$8,950,000
$9,220,571
$9,254,508
$9,292,461
$9,334,877
$9,388,511
$9,446,834
$9,510,092
$9,670,974
$9,802,084
$9,889,240
$9,983,016
$10,089,11
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Net Worth $1,950,000
$2,152,123
$2,156,657
$2,163,735
$2,180,494
$2,200,081
$2,222,650
$2,248,364
$2,277,391
$2,309,911
$2,346,112
$2,391,917
$2,442,392
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