COMPANY NAME

INSERT IMAGE/LOGO

COMPANY NAME
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:
Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means and
that any disclosure or use of same by reader may cause serious harm or damage to COMPANY NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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

Table of Contents

1.0 Executive Summary

1.2 Objectives
1.3 Keys to Success
2.0 Company Summary
2.1 Company Ownership/Company History
2.2 Start-Up Summary
3.0 Services Description
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Competition and Buying Patterns
5.0 Web Plan Summary
6.0 Strategy/SWOT Analysis/Marketing
6.1 SWOT Analysis
6.2 Competitive Edge
6.3 Marketing Strategy
6.4 Sales Strategy
6.41 Sales Forecast
6.5 Milestones
7.0 Management Strategy
7.1 Personnel Plan
8.0 Financial Plan
8.1 Start-up Funding
8.2 Break-Even Analysis
8.3 Projected Profit and Loss
8.4 Projected Operating Cash Flow
8.5 Projected Balance Sheet
8.6 Business Ratios
Appendix: Sales Forecast
Appendix: Personnel
Appendix: Profit and Loss
Appendix: Cash Flow
Appendix: Balance Sheet

Page 1
COMPANY NAME 2010

1.0 Executive Summary

COMPANY NAME
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:

Introduction
COMPANY NAME is a roadside assistance and towing company that serves the communities of
[COUNTY] and [COUNTY] Counties in northern [STATE]. The firm was established 10 years ago and
currently operates 4 flat bed tow trucks, serving as an independent contractor for the three major
car club organizations that serve northern [STATE] (AAA, Cross Country Club, and US Auto Club).
COMPANY NAME mission is to serve the community, believing a car break-down should not ruin you
day.

Location
The firm is located in [CITY], [STATE] and serves the metropolitan area.

The Organization
The firm is 100% owned and managed full-time by INSERT NAME, an experienced
entrepreneur who previously owned a messenger/package delivery service and 3 used car
dealerships.

Services
 Heavy-Duty Towing & Recovery
 Light-Duty Towing & Roadside Services
 Emergency Roadside Services For Autos, Vans, SUVs, Light Trucks, Motor Homes
 Jump-starts
 Fuel Delivery
 Lockouts
 Standard Vehicle Tire Changes
 Local & Long-Distance Towing
 Roadside Services for Trucks

The Market
The firm serves northern [STATE], an area with very high household income due to the heavy
presence of government jobs and government related positions and the very high pension income of
government retirees. This makes the area somewhat recession proof and the two counties have a
combined population of 1,248,000.

Financial Considerations
COMPANY NAME produced $386,000 in sales in 2009 and a net loss of (-$80,000). The firm is
projecting $850,000 sales in 2001 and a $78,000 net profit for 2011. The borrower is now
requesting $500,000 in grant funding in order to expand the business by purchasing 3 trucks, hiring
3-5 drivers, and hiring 2 office workers. The firm also needs $25,200 held in cash.
COMPANY NAME 2010

Start-up

Purchase 3 New Nissan Flatbed Trucks ($82.5k each) $247,500

Purchase 2 New Computer Systems ($2.5k each) $5,000
Additional Advertising Funds (initial marketing) $12,300
Additional Labor Cost (3 drivers @ $50k/yr each) $150,000
Additional Labor Cost (2 office workers @ $30k/yr each) $60,000
Cash Required $25,200

Total Requirements $500,000

The major focus for grant funding is as follows:

1. The firm is a 100% minority-owned.

2. The firm has existing clearance to serve various U.S. government agencies, including the
military; and would be available during a state of emergency.
3. Hire employees; the Organization will look to hire veterans, minorities and the unemployed

Chart: Highlights

1.1 Objectives

1. Receive $500,000 in grant funding

2. Purchase 3 new Nissan flatbed trucks
3. Hire/train 3 new full-time drivers (possibly 5 part-time drivers) and 2 office workers
4. Quickly grab a higher work load from the existing 5 customers (i.e. car club companies)
5. Achieve $850,000 sales and a $78,000 net profit during 2011.
COMPANY NAME 2010

1.2 Mission

The mission of COMPANY NAME is to provide a valuable community service by offering road side
assistance and towing to customers who belong to the major car club companies. The firm will
strengthen its market share in the North [STATE] market by offering a speedy, quality, and reliable
service. The firm will strive to achieve maximum client satisfaction while at the same time closely
managing sales and cost levels in order to maximize the profitability of the firm.

1.3 Keys to Success

1. Receive $500,000 in grant funding

2. Successfully train new drivers and office staff with an emphasis given to professional customer
service
3. Continue to focus on offering exceptional customers service (including driving customers to their
home or job).
4. Grab additional work load from the existing customer base of five car club companies as quickly
as possible

2.0 Company Summary

COMPANY NAME is a road side assistance and towing company that was established in 2001 and is
located in [CITY], [STATE]. The firm serves as a contract service provider for the five major car
clubs companies and provides road side assistance (including towing) to travelers in [COUNTY] and
[COUNTY] counties. The company currently has 4 flat bed tow trucks and 4 drivers, but is
requesting a $500,000 grant in order to purchase 3 additional flat bed trucks and hire 3 drivers (or
possibly 5 part-time drivers) as well a 2 office workers.

2.1 Company Ownership/Company History

COMPANY NAME is a [STATE] C CORP and is owned 100% by INSERT NAME. COMPANY NAME was
founded in 2001 by INSERT NAME and has grown from 1 truck to 4 trucks during that time. The
business has been a home-based business during that time and the trucks are located at the
owner’s residence. COMPANY NAME produced $386,000 in sales in 2009 and a net loss of (-
$80,000). In 2008, COMPANY NAME produced $404,000 in sales and a net loss of (-$77,000). The
net losses of the firm are for tax purposes, INSERT NAME projects that the business will begin
producing operating profits with the addition of the 3 vehicles. INSERT NAME started this business
after selling his messenger and package delivery service business that operated in the same
market.

2.2 Start-up Summary

The borrower is now requesting $500,000 in grant funding in order to expand the business by
purchasing 3 trucks, hiring 3-5 drivers, and hiring 2 office workers. The firm also needs $25,200
held in cash.
COMPANY NAME 2010

Table: Start-up

Start-up
Start-up Expenses
Purchase 3 New Nissan Flatbed Trucks ($82,500 each) $247,500
Purchase 2 New Computer Systems $5,000
Additional Advertising Funds (1 year) $4,800
Additional Liability Insurance (1 year) $7,500
Additional Labor Cost (hire 3 drivers at $50,000 each annually, 1 year) $150,000
Additional Labor Cost (hire 2 office workers at $30,000 each annually, 1 $60,000
year)
Total Start-up Expenses $474,800

Start-up Assets
Cash Required $25,200
Total Assets $25,200
Total Requirements $500,000

3.0 Services

COMPANY NAME provides the following services and each car club company has a customized
contract that has flat fees, hourly compensation, and per job compensation.

 Heavy-Duty Towing & Recovery

 Light-Duty Towing & Roadside Services

 Emergency Roadside Services For Autos, Vans, SUVs, Light Trucks, Motor Homes

 Jump-starts

 Fuel Delivery

 Lockouts

 Standard Vehicle Tire Changes

 Local & Long-Distance Towing

 Roadside Services for Trucks

The firm has also considered offering two additional services at a future time:

1) Full service 24-hour tire replacement (requires holding minimal inventory of tires); this is a
needed service because most tire stores close during the night and early morning hours. The
firm would need to buy a box truck for $50,000 or this model as well as tire inventory.
2) Offer a service of helping the police move vehicles and help charities deliver donated vehicles;
the firm would need to purchase a rear-lifting, medium-duty truck for $80,000.
COMPANY NAME 2010

4.0 Market Analysis Summary

The firm currently serves the 3 largest car club companies serving the north [STATE] market,
including AAA, Cross Country Club, and U.S. Auto Club. Each car club company has a customized
contract relationship. The firm provides a valuable community service to the members of the car
club companies but does not bill the end customers directly. The firm does not conduct normal tow
truck operations (i.e. repossession/impounding). The firm services the major through fares through
[COUNTY] and [COUNTY] counties, including roadside assistance on I-95 and I-66. The firm also
covers the federal district of [DISTRICT], and military installations; and has the necessary security
clearances to do so.

[COUNTY] County contains 1,038,000 residents and is the most densely populated county within
[STATE]. The county has the 2nd highest median household income of any U.S. county (after
neighboring Loudoun County). The county is the home of the CIA, National Counterterrorism Center,
and the Director of National Intelligence. The 2007 median household income was $127,000.

[COUNTY] County contains 210,000 residents and is located directly across the [NAME] River from
[COUNTY] County is the home of many federal government offices. The 2007 median household
income was $121,000. As of 10/09, the county’s unemployment rate was 4.2%, vs. 6.6% for
[STATE], and 9.5% for the U.S.

4.1 Market Segmentation

The firm services customers in the following situations:

 Heavy-Duty Towing & Recovery after accidents

 Light-Duty or Emergency Towing & Roadside Services (including jump-starts, fuel delivery,
lockouts, and vehicle tire changes-including trucks)

 Local & Long-Distance Towing

4.2 Competition and Buying Patterns

The firm's principal competitor is INSERT NAME, who often times is the back-up service provider
who COMPANY NAME customer contract to when COMPANY NAME has reached its workload capacity.
COMPANY NAME 2010

However, INSERT NAME is located 50 miles from COMPANY NAME. By purchasing the 3 trucks,
COMPANY NAME will effectively remove the competitive threat from INSERT NAME and add a
protective barrier to other competitors (i.e. COMPANY NAME will have a workload capacity that will
enable it to grab more market share from the five major car club companies.

The competition in the market place is not price driven, but is instead driven by the following
service traits:

1) Reliability
2) Feedback from end customers
3) Quality of work
4) Degree of professionalism
5) Ability to turnover work quickly
6) Ability to handle a large workload

5.0 Web Plan Summary

The firm does not currently have a website. However, the firm will maintain a website if it is deemed
necessary to help track the higher volume or work load and company to company communication
with the 5 car club organizations and well as with the larger fleet and large number of drivers. The
website will list the normal selection of services that the company provides, in the event that a fleet
operator visits the site to determine what services the company offers.

6.0 Strategy and Implementation Summary

The firm currently has sufficient customer relationships in place in order to build the sales levels
quickly simply by accepting a higher workload from each customer relationship. In addition, the firm
will be able to spread the work volume among the 5 customers, thus avoiding any major risk from
customer concentration.

6.1 SWOT Analysis

Strengths

 Existing relationships with car club organizations

 Time in business
 Potential size of truck fleet

Weaknesses

 Lack of capital
 Opportunities
 Grab additional market share from the existing five car club companies

Threats

 The industry could consolidate and a regional operator with strong economies of scale could
move into the market
 The recession could continue, lowering consumer feelings towards discretionary spending and
possibly reducing the demand for car club association memberships
COMPANY NAME 2010

6.2 Competitive Edge

The firm's principal competitive edge is that it already has strong relationships with each of the 3
major car club companies in the north [STATE] market. In addition, it's time in business (10 years)
and brand image of reliability, professionalism, and quality of work makes COMPANY NAME an
attractive choice in road side service.

6.3 Marketing Strategy

The firm primarily markets through direct contact (calls and sales visits) to the regional offices of
major car club organizations. Many of the customers are new car owners or recent model car
owners who belong to a roadside assistance program that they either purchase individually or were
given as part of a promotion to purchase a new vehicle.

The firm markets itself based upon the following characteristics:

1) Time in business

2) Reliability

3) Feedback from end customers

4) Quality of work

5) Degree of professionalism

6) Ability to turnover work quickly

7) Ability to handle a large workload

The firm does currently use the following marketing methods:

1) Yellow pages

2) Google search placements

COMPANY NAME 2010

6.4 Sales Strategy

The firm contacts the car club organizations directly and has already established relationships with
the 3 major car club companies. Although the firm is satisfied with the level of business that it can
generate from these 5 companies, it would like to expand to providing contract-based roadside
service to other organizations (i.e. corporate fleets). The contract negotiation begins at pricing but
the relationships develops as the service provider's reliability, quality of work, feedback from end
customer, professionalism, ability to turnover work quickly, and the ability to handle large
workloads become apparent to the customer.

6.4.1 Sales Forecast

The firm is expecting 15% annual sales growth and COGS is expected to remain at 21% of sales
through the next 3 years (a slightly higher COGS than in 2009). The firm achieved $386,000 sales
in 2009 and $404,000 sales in 2008.

Table: Sales Forecast

Sales Forecast
2011 2012 2013
Sales $849,996 $977,495 $1,124,119
Total Sales $849,996 $977,495 $1,124,119

Direct Cost of Sales 2011 2012 2013

COGS-Fuel, Repair, & Maintenance $178,503 $205,278 $236,070
Subtotal Direct Cost of Sales $178,503 $205,278 $236,070
COMPANY NAME 2010

Chart: Sales Monthly

Chart: Sales by Year

COMPANY NAME 2010

6.5 Milestones

The firm is expecting to have a grand re-opening on 12/1/10, pending receipt of grant funds by
2010.

Table: Milestones

Milestones

Milestone Start Date End Date

Receive Grant 9/2/2010 10/15/2010
Rent Location 10/15/2010 10/15/2010
Purchase Vehicles & 10/16/2010 10/19/2010
Computers
Interview & Hire 10/20/2010 10/22/2010
Employees
Begin Employee 10/24/2010 11/7/2010
Training
Organize New Location 11/7/2010 11/9/2010
Initiate Marketing 11/10/2010 11/12/2010
Grand Opening 11/15/2010 12/1/2010

Totals

7.0 Management Summary

INSERT NAME has owned and operated the subject business for 10 years. Prior to this, he owned
and operated a message/package delivery service for 15 years. Prior to this business, he owned 3
different used car lots over a 8 year period.

7.1 Personnel Plan

The drivers will be 1099 contractors and will earn approximately $50,000 annually. The new drivers
will need approximately 1-2 weeks to train. The 2 office employees (assistant manager and
dispatcher) will each earn $30,000 annually.

Table: Personnel

Personnel Plan
2011 2012 2013
7 Drivers, earning $50,000 annually each $350,004 $367,504 $385,879
2 Office Workers, earning $30,000 annually $60,000 $63,000 $66,150
each
Total People 9 9 9

Total Payroll $410,004 $430,504 $452,029

COMPANY NAME 2010

8.0 Financial Plan

The borrower provided the projections data as well as 2009 business tax returns.

8.1 Start-up Funding

The borrower is now requesting $500,000 in grant funding in order to expand the business by
purchasing 3 trucks, hiring 3-5 drivers, and hiring 2 office workers. The firm also needs $25,200
held in cash.

Table: Start-up Funding

Start-up

Purchase 3 New Nissan Flatbed Trucks ($82.5k each) $247,500

Purchase 2 New Computer Systems ($2.5k each) $5,000
Additional Advertising Funds (initial marketing) $12,300
Additional Labor Cost (3 drivers @ $50k/yr each) $150,000
Additional Labor Cost (2 office workers @ $30k/yr each) $60,000
Cash Required $25,200

Total Requirements $500,000

8.2 Break-even Analysis

The firm is expecting have a $59,356 monthly break-even sales point, based upon a 21% gross margin
and a $46,891 projected monthly operating cost.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even $59,356

Assumptions:
Average Percent Variable Cost 21%
Estimated Monthly Fixed Cost $46,891
COMPANY NAME 2010

8.3 Projected Profit and Loss

The firm is projecting $850,000 in sales in 2011, with a $78,000 profit, vs. $386,000 in sales in 2009
and a loss of (-$80,000). The sales are expected to grow 15% during 2012 and 2013, gross
margin is expected to stay at 21%, and operating expenses are expected to grow 5% annually.

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $849,996 $977,495 $1,124,119
Direct Cost of Sales $178,503 $205,278 $236,070
Total Cost of Sales $178,503 $205,278 $236,070
Gross Margin $671,493 $772,217 $888,050
Gross Margin % 79.00% 79.00% 79.00%
Expenses
Payroll $410,004 $430,504 $452,029
Marketing/Promotion $12,000 $12,600 $13,230
Rent $20,084 $21,088 $22,142
Utilities $4,800 $5,040 $5,292
Liability Insurance $80,004 $84,004 $88,204
Legal & Accounting $9,600 $10,080 $10,584
Telephone & Internet $9,000 $9,450 $9,923
Taxes & Licenses $6,996 $7,346 $7,713
Office Expenses $2,400 $2,520 $2,646
Supplies $1,800 $1,890 $1,985
Other Expenses $6,000 $6,300 $6,615
Total Operating Expenses $562,688 $590,822 $620,363

Profit Before Interest and Taxes $108,805 $181,395 $267,686

EBITDA $108,805 $181,395 $267,686
Interest Expense $0 $0 $0
Taxes Incurred $30,465 $50,790 $74,952
Net Profit $78,340 $130,604 $192,734
Net Profit/Sales 9.22% 13.36% 17.15%
COMPANY NAME 2010

Chart: Profit Yearly

8.4 Projected Operating Cash Flow

The table below shows the projected cash flow of the firm, including the influx of cash from the grant
and the purchase of fixed assets.

Table: Operating Cash Flow

Pro Forma Cash Flow

2011 2012 2013
Cash Received

Cash from Operations

Cash Sales $849,996 $977,495 $1,124,119
Subtotal Cash from Operations $849,996 $977,495 $1,124,119

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $500,000 $0 $0
Subtotal Cash Received $1,349,996 $977,495 $1,124,119

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $410,004 $430,504 $452,029
Bill Payments $329,564 $414,252 $474,180
Subtotal Spent on Operations $739,568 $844,756 $926,209

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
COMPANY NAME 2010

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $252,500 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $992,068 $844,756 $926,209

Net Cash Flow $357,928 $132,740 $197,910

Cash Balance $383,128 $515,867 $713,777

8.5 Projected Balance Sheet

The table below shows the projected balance sheet of the firm.
COMPANY NAME 2010

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets

Current Assets
Cash $383,128 $515,867 $713,777
Other Current Assets $0 $0 $0
Total Current Assets $383,128 $515,867 $713,777

Long-term Assets
Long-term Assets $252,500 $252,500 $252,500
Goodwill $6,888 (-$25,199) (-$25,200)

Total Long-term Assets $259,388 $227,301 $227,300

Total Assets $642,516 $743,168 $941,077

Liabilities and Capital 2011 2012 2013

Current Liabilities
Accounts Payable $32,088 $34,224 $39,399
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $32,088 $34,224 $39,399

Long-term Liabilities $0 $0 $0
Total Liabilities $32,088 $34,224 $39,399

Grant Proceeds $500,000 $500,000 $500,000

Retained Earnings $0 $78,340 $208,944

Earnings $78,340 $130,604 $192,734

Total Capital $610,428 $708,944 $901,678
Total Liabilities and Capital $642,516 $743,168 $941,077

Net Worth $610,428 $708,944 $901,678

8.6 Business Ratios

The firm is expecting 15% annually sales growth, COGS of 21%, and a growing net profit margin during
years 2011-2013.
COMPANY NAME 2010

Table: Ratios
Ratio Analysis
2011 2012 2013
Sales Growth n.a. 15.00% 15.00%

Percent of Total Assets

Total Current Assets 60.28% 67.14% 73.87%
Long-term Assets 39.72% 32.86% 26.13%
Total Assets 100.00% 100.00% 100.00%

Current Liabilities 5.05% 4.45% 4.08%

Long-term Liabilities 0.00% 0.00% 0.00%
Total Liabilities 5.05% 4.45% 4.08%
Net Worth 94.95% 95.55% 95.92%

Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 79.00% 79.00% 79.00%
Selling, General & Administrative 69.78% 65.64% 61.85%
Expenses
Advertising Expenses 1.41% 1.29% 1.18%
Profit Before Interest and Taxes 12.80% 18.56% 23.81%

Main Ratios
Current 11.94 15.07 18.12
Quick 11.94 15.07 18.12
Total Debt to Total Assets 5.05% 4.45% 4.08%
Pre-tax Return on Net Worth 18.03% 24.71% 28.88%
Pre-tax Return on Assets 17.12% 23.61% 27.70%

Additional Ratios 2011 2012 2013

Net Profit Margin 9.22% 13.36% 17.15%
Return on Equity 12.98% 17.79% 20.79%

Activity Ratios
Accounts Payable Turnover 11.27 12.17 12.17
Payment Days 27 29 28
Total Asset Turnover 1.34 1.27 1.16

Debt Ratios
Debt to Net Worth 0.05 0.05 0.04
Current Liab. to Liab. 1.00 1.00 1.00

Liquidity Ratios
Net Working Capital $351,040 $481,644 $674,378
Interest Coverage 0.00 0.00 0.00

Additional Ratios
Assets to Sales 0.75 0.79 0.86
Current Debt/Total Assets 5% 4% 4%
Acid Test 11.94 15.07 18.12
Sales/Net Worth 1.41 1.33 1.21
Dividend Payout 0.00 0.00 0.00
Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Sales $63,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916

Total Sales $63,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
COGS-Fuel, Repair, & $13,388 $13,388 $13,388 $14,875 $14,875 $14,875 $14,875 $14,875 $14,875 $16,363 $16,363 $16,363
Maintenance

Subtotal Direct Cost of $13,388 $13,388 $13,388 $14,875 $14,875 $14,875 $14,875 $14,875 $14,875 $16,363 $16,363 $16,363
Sales

Page 1
Appendix

Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7 Drivers, earning $50,000 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167
annually each
2 Office Workers, $30,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
annually each
Total People 9 9 9 9 9 9 9 9 9 9 9 9

Total Payroll $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167

Page 2
Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $63,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916
Direct Cost of Sales $13,388 $13,388 $13,388 $14,875 $14,875 $14,875 $14,875 $14,875 $14,875 $16,363 $16,363 $16,363
Total Cost of Sales $13,388 $13,388 $13,388 $14,875 $14,875 $14,875 $14,875 $14,875 $14,875 $16,363 $16,363 $16,363

Gross Margin $50,362 $50,362 $50,362 $55,958 $55,958 $55,958 $55,958 $55,958 $55,958 $61,553 $61,553 $61,553
Gross Margin % 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00% 79.00%

Expenses
Payroll $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167
Marketing/Promotion $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent $1,667 $1,667 $1,667 $1,667 $1,677 $1,677 $1,677 $1,677 $1,677 $1,677 $1,677 $1,677
Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Liability Insurance $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
Legal & Accounting $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Telephone & Internet $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Taxes & Licenses $583 $583 $583 $583 $583 $583 $583 $583 $583 $583 $583 $583
Office Expenses $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Other Expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Operating $46,884 $46,884 $46,884 $46,884 $46,894 $46,894 $46,894 $46,894 $46,894 $46,894 $46,894 $46,894
Expenses

Profit Before Interest $3,478 $3,478 $3,478 $9,074 $9,064 $9,064 $9,064 $9,064 $9,064 $14,659 $14,659 $14,659
and Taxes
EBITDA $3,478 $3,478 $3,478 $9,074 $9,064 $9,064 $9,064 $9,064 $9,064 $14,659 $14,659 $14,659
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $974 $974 $974 $2,541 $2,538 $2,538 $2,538 $2,538 $2,538 $4,105 $4,105 $4,105

Net Profit $2,504 $2,504 $2,504 $6,533 $6,526 $6,526 $6,526 $6,526 $6,526 $10,554 $10,554 $10,554
Net Profit/Sales 3.93% 3.93% 3.93% 9.22% 9.21% 9.21% 9.21% 9.21% 9.21% 13.55% 13.55% 13.55%

Page 3
Appendix

Table: Cash Flow

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

Cash from
Operations
Cash Sales $63,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916
Subtotal $63,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916
Cash from
Operations

Additional
Cash
Received
Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-
free)
New Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term
Liabilities
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
New $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received
Subtotal $563,750 $63,750 $63,750 $70,833 $70,833 $70,833 $70,833 $70,833 $70,833 $77,916 $77,916 $77,916
Cash
Received

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

Expenditures

Page 4
Appendix

from
Operations
Cash $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167 $34,167
Spending
Bill $903 $27,079 $27,079 $27,181 $30,133 $30,140 $30,140 $30,140 $30,140 $30,242 $33,195 $33,195
Payments
Subtotal $35,070 $61,246 $61,246 $61,348 $64,300 $64,307 $64,307 $64,307 $64,307 $64,409 $67,362 $67,362
Spent on
Operations

Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $252,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $287,570 $61,246 $61,246 $61,348 $64,300 $64,307 $64,307 $64,307 $64,307 $64,409 $67,362 $67,362
Cash Spent

Net Cash $276,180 $2,504 $2,504 $9,485 $6,533 $6,526 $6,526 $6,526 $6,526 $13,507 $10,554 $10,554
Flow
Cash $301,380 $303,885 $306,389 $315,874 $322,407 $328,933 $335,459 $341,985 $348,511 $362,019 $372,573 $383,128
Balance

Page 5
Appendix

Table: Balance Sheet

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

Current Assets
Cash $301,380 $303,885 $306,389 $315,874 $322,407 $328,933 $335,459 $341,985 $348,511 $362,019 $372,573 $383,128
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current $301,380 $303,885 $306,389 $315,874 $322,407 $328,933 $335,459 $341,985 $348,511 $362,019 $372,573 $383,128
Assets

Long-term
Assets
Long-term $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500
Assets
Goodwill (- (- (- (- (- (- (- (- (- (- (- $6,888
$25,200) $25,201) $25,201) $25,201) $25,201) $25,201) $25,201) $25,201) $25,201) $25,202) $25,202)
Total Long-term $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $252,500 $259,388
Assets
Total Assets $528,680 $531,184 $533,688 $543,173 $549,706 $556,232 $562,758 $569,284 $575,810 $589,317 $599,871 $642,516

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

Current
Liabilities
Accounts $26,176 $26,176 $26,176 $29,128 $29,135 $29,135 $29,135 $29,135 $29,135 $32,088 $32,088 $32,088
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $26,176 $26,176 $26,176 $29,128 $29,135 $29,135 $29,135 $29,135 $29,135 $32,088 $32,088 $32,088
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $26,176 $26,176 $26,176 $29,128 $29,135 $29,135 $29,135 $29,135 $29,135 $32,088 $32,088 $32,088

Grant Proceeds $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Retained $0 $2,504 $5,008 $7,512 $14,045 $20,571 $27,097 $33,623 $40,149 $46,675 $57,229 $67,783

Page 6
Appendix

Earnings
Earnings $2,504 $2,504 $2,504 $6,533 $6,526 $6,526 $6,526 $6,526 $6,526 $10,554 $10,554 $10,554
Total Capital $502,504 $505,008 $507,512 $514,045 $520,571 $527,097 $533,623 $540,149 $546,675 $557,229 $567,783 $610,428
Total Liabilities $528,680 $531,184 $533,688 $543,173 $549,706 $556,232 $562,758 $569,284 $575,810 $589,317 $599,871 $642,516
and Capital

Net Worth $502,504 $505,008 $507,512 $514,045 $520,571 $527,097 $533,623 $540,149 $546,675 $557,229 $567,783 $610,428

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