Pet Service business plan
Executive Summary
The executive summary is often considered the most important section of a restaurant business
plan. This section briefly tells your reader where your company is, where you want to take it, and
why your pet service business idea will be successful. The executive summary should highlight the
strengths of your overall plan and therefore be the last section you write. However, it usually
appears first in your business plan document.
Example: “Astana Pet Services” came into existence 2 years ago and Start-up pet service business
that designs and sells innovative, contemporary elevated pet feeders to design professionals, pet
care professionals and individual consumers will be successful in the United States, where more than
half of all households have at least one pet.
Mission
It provides a rewarding and respectful work environment with competitive compensation and
benefits. The mission statement should be a clear and succinct representation of the enterprise's
purpose for existence. It should incorporate socially meaningful and measurable criteria addressing
concepts such as the moral/ethical position of the enterprise, the target market, products/services
and expectations of growth and profitability.
Example: “Astana Pet Service’s” Mission is to provide a unique & relaxing dining experience- similar
to pet services. Design, develop & Market innovative ideas to pet services that are socially &
environmentally responsible.
Objectives
Particular goals and objectives point a new business in the right direction and keep an established
pet service company on the right track. Just think about what football would be without end zones
or what the Indianapolis 500 would be without a finish line.
Example: “Astana Pet Service’s” objective is to achieve the following goals:


Innovative, functional and beautiful elevated pet feeders
Accessories and complementary pet products

Products that is environmentally and socially responsible
Chart: Highlights
Keys to Success
For a pet service business plan, keep these five points top of mind:




Provide exceptional customer service
Participate in design and pet industry communities
Support pet associations that rescue train and promote the humane treatment of animals
Use profits for new product development

Promote pet safety and health
Example: Astana Pet Service follows three steps for its key success,
A. Getting repeat business from every customer. Word-of-mouth marketing is a powerful idea for
this business.
B. Support pet associations that rescue train and promote the humane treatment of animals.
C. Participate in design and pet industry communities
Company Summary
The Company Summary of a business plan provides a high level look at how all of the different
elements of your business fit together, including information about the nature of your business and
the success factors that you feel will make your business successful and consequently, profitable.
Example: Astana Pet Service is a start up managed by vastly experienced and visionary entrepreneur
Mr. Clerk With his vast experience and knowhow of the market, the company is taking giant leaps in
the pet service business. The company is looking for expansion and applying for $70,000 loan from
the Business Association.
Company Ownership
As one of the company's goals is to focus on high quality workmanship, retaining as much talent as
possible is crucial. Therefore, the company plans to add more partners to the firm as opportunities
arise.
Start-up Summary
Start-up expenses for the company total $72,200 and will be distributed as follows:




52% – Product research and development
19% – Corporate brand development
10% – Administrative costs
19% – Home office
Example: Astana Pet Service’s start-up costs & initial financing are shown on the following table &
Chart.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Product Design
Prototyping
Patent Fees
Website Design
Marketing Materials: Brochures, Banners,
Signs, Trade Show Materials
$5,000
$6,300
$5,000
$1,000
$4,000
Advertising
Fees: Legal, Licensing, Insurance
Stationery
Home Office Interior Improvements
$1,000
$2,700
$300
$1,000
Home Office Equipment
Software
Miscellaneous purchases
Rent
Expensed Equipment
Total Start-up Expenses
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
Total Requirements
$1,000
$500
$500
$1,700
$1,200
$31,200
$40,000
$1,000
$0
$0
$38,500
$72,200
Table: Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
$31,200
$41,000
$72,200
Other Current Liabilities (interest-free)
$0
Total Liabilities
Capital
Planned Investment
Tonya McLendon
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
$50,000
Total Capital
Total Capital and Liabilities
Total Funding
($9,000)
$38,500
$72,200
Chart: Start-up
$1,000
$40,000
$0
$40,000
$41,000
$50,000
$0
$0
$22,200
$0
$0
$22,200
($31,200)
Company Locations and Facilities
Briefly describe offices and locations of your company, the nature and function of each, square
footage, lease arrangements, etc. If you are a pet service business, you probably don't have
manufacturing plants anywhere, but you might have Internet services, office facilities, and
telephone systems that are relevant to providing service. It is conceivable that your Internet
connection, as one hypothetical case, might be critical to your business.
Example: Astana Pet Service situated at prime location in USA. Mr. Clerk follows intensive services
& facilities in the competitive market. The strategic tool that follows by Mr. Clerk for pet services
Legal Considerations
There are many legal considerations that should be taken into account. When constructing a
system it should be assembled in such a manner that the assembler is at minimum risk of injury
and that there is minimum risk of injury to others.
Products & Services
By products & service we mean functionalities or support provided. Pet service, Accounting, design,
maintenance, printing, and supply of temporary personnel, etc., provided by specialized firms to
other firms are deemed as service.
Example: Astana Pet Service’s primary focus on large market structure growth. This includes all types
of pets ranging quality & location of your business.
Market Analysis Summary
A good market analysis will enable you to lure investors, sidestep pitfalls, and most importantly,
attract customers. A market analysis studies the attractiveness and the dynamics of a
special market within a special industry.
Market Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target market into
subsets of consumers, businesses, or countries that have common needs and priorities, and then
designing and implementing strategies to target them.
Example: Astana Pet Service Based on our industry research, Mr. Clerk think we have opportunities
to attract customers from the following market groups:




Design professionals
Pet care professionals
Government agencies
Individual consumers
The first three groups were selected because they offer growth outside of the "usual" pet products
consumer; their favourable opinion of the product may help establish product reliability, brand
credibility and influence individual consumer purchases.
Table: Market Analysis
Market Analysis
Year 1
Potential Customers
Individual consumers
(1000's)
Government agencies
Design professionals
Pet care professionals
Total
Year 2
Year 3
Year 4
Year 5
Growth
CAGR
12%
1,64,782
1,80,260
1,98,286
2,36,011
2,76,119
12.00%
5%
5%
5%
7.57%
24,841
1,04,200
28,320
3,12,143
26,083
1,09,410
29,736
3,35,489
27,387
1,14,881
31,223
3,60,777
28,756
1,20,625
32,784
3,88,179
30,194
1,26,656
34,423
4,17,889
5.00%
5.04%
5.00%
6.76%
Chart: Market Analysis (Pie)
Target Market Segment Strategy
A target market segment strategy is an essential plan of action for any organization to adopt.
Essentially, the strategy outlines your business's plans for reaching its intended customers. It takes
into account consumer demand, your company's response to that demand and its plan of action for
delivering high-quality products coupled with solid customer service.
Example: Astana Pet Service want the customers like govt. agencies, Individual consumers & pet care
professionals . To support this strategy, we will attend industry trade shows and enter design
competitions. This strategy will allow us to form partnerships with people and organizations that can
help the company establish the highest level of product performance and customer service.
Market Growth
Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the
product or service useful for the price level. For example, a new technology might only
be marketable to a small set of consumers, but as the price of the technology decreases and its
usefulness in everyday life increases, more consumers could increase demand.
Strategy and Implementation Summary
A pet service business plan’s Strategy and Implementation Summary emphasizes on what makes
your business concept compelling and how you will attract and maintain a client/customer base. The
first component of your Strategy and Implementation plan is a strategic position
Example: Astana Pet Service strategic plan is very simple. We understand our brand value in the
market & quality of our product. Our target market is our happy customers. Astana Pet Service
offers discount range for his reputed customers & dealers.
Strategy and Implementation Summary
Understanding your competition's strengths and weaknesses is certainly important, but defining a
strategy that highlights your superiority in the market is just as essential. A business plan's Strategy
and Implementation Summary emphasizes what makes your business concept compelling and how
you will attract and maintain a client/customer base.
Example: Astana Pet Service have following implementation strategies for it’s customers:
 Individual customers think of their pets as family and care about the health and well-being
of their family pets.
 Products adopted by the commercial market, design and pet care professionals and
government agencies, recognition.
 Individual consumers will more readily use products used by government facilities and pet
care professionals.
Competitive Edge
Competitive edge is an important part of the feasibility study you do prior to writing your startup pet
service business plan or your year-end strategic planning for next year's business expansion. It
entails research into your competition, how their services differ from yours, how their operations
differ from yours and how their marketing differs from yours.
Example: Astana Pet Service’s environment is elegant and comfortable and our decor is warm and
relaxing. Great service is very important to us. The management and servers will handle every detail
to make customer's special evening even more special.
Marketing Strategy
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy has evolved from a one-way communication base -- projecting
communication base involving active conversations with potential customers.
Example: Astana Pet Service strategic plan help the customer to attract the key features inbuilt in
our services. We follow both print media & digital media for our promotional strategy.
Promotion Strategy
Promotion Strategy is the process through which a business can grow & become well known to its
customers. Our most important tactic will be word-of-mouth/in-store marketing process.
Sales Strategy
A sales strategy for a business plan consists of a plan that positions a company’s brand or product to
gain a competitive advantage. Successful strategies help the sales force to focus on target market
customers and communicate with them in relevant, meaningful ways.
Example: Astana Pet Service Sales to individual consumers will be completed through the company's
website, by phone or fax, through catalogues and third party websites. The owner will work with
manufacturers to determine the appropriate delivery schedule for these items, but anticipates being
able to offer consumers 5 – 10 business day delivery terms.
Sales Forecast
Sales forecasts are estimates of your sales for the forecast period. The sales forecast establishes the
level of activity used in all the other forecasts and budgets for the business. If your sales
forecast varies wildly from your actual results, your cash flow and profitability forecasts will similarly
be inaccurate.
Example: The basic, off-the-shelf models, developed for high- and moderate-income consumers will
be sold on the company's website, by phone and fax, through catalogs and third party websites.
The following tables and charts show the growth of potential customers by years.
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Sales
Basic small feeder
Basic medium feeder
Basic large feeder
Basic extra large feeder
$0
$0
$0
$0
$5,000
$10,000
$20,000
$30,000
$5,750
$11,500
$23,000
$34,500
Custom low-end feeder
$40,800
$44,880
$49,368
Custom medium feeder
$45,000
$49,500
$54,450
Custom high-end feeder
$58,000
$63,800
$70,180
Total Sales
Direct Cost of Sales
Basic small feeder
Basic medium feeder
Basic large feeder
Basic extra large feeder
$143,800
Year 1
$0
$0
$0
$0
$223,180
Year 2
$2,050
$4,100
$8,200
$12,300
$248,748
Year 3
$2,358
$4,715
$9,430
$14,145
Custom low-end feeder
$17,000
$17,325
$18,191
Custom medium feeder
$11,400
$11,970
$12,569
Custom high-end feeder
$11,200
$11,200
$11,200
Subtotal Direct Cost of
Sales
$38,600
$63,141
$82,623
Chart: Sales Monthly
Chart: Sales by Year
Management Summary
A management summary is a short document or section of a document, produced for business
purposes, that summarizes a longer report or proposal or a group of related reports in such a way
that readers can rapidly become acquainted with a large body of material without having to read it
all.
Example: Astana Pet Service planning to expand its personnel to add a number of job
superintendents as soon as the number of projects increases. These superintendents will have the
following duties:


Scheduling subcontractors and material deliveries.
Verifying and insuring that all work is done in accordance with plans.
Personnel Plan
The difference between supply and demand will indicate the future quantitative and qualitative
need for personnel. This information has an effect on the recruitment and development planning of
the personnel and on the measures taken.
Example: Astana Pet Service the staff will include 15 full-time employees and 5 part-time employees,
who will work a total of 800 hours per week and generate an average weekly gross payroll of $4,600
for the first year in business.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
TL McClendon
Part-time Sales Rep
Inventory/Office Mgmt.
Total People
Total Payroll
$28,800
$0
$10,425
$32,000
$10,000
$28,000
2
$39,225
$37,000
$13,000
$30,000
3
$70,000
3
$80,000
Financial Plan
Financial planning is the task of determining how a business will afford to achieve its strategic goals
and objectives.
Example: Once the company reaches a sufficient level of profitability and accumulates a cash
reserve, Astana Pet Service’s plan to invest 50% of profits in research and development of new
products, existing product and operational improvements, and to expand marketing and sales
efforts to foreign markets. 38% of profits will be invested in low risk financial instruments.
Important Assumptions
Entrepreneurs often make two basic assumptions about a new pet service business: that they have
product consumers will want and that the pet service business owner can make and sell the product
profitably. An investor or partner will want to see that you’ve done you are homework and can
support more key assumptions than those two, with research and data.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
1
10.00%
10.00%
30.00%
0
Year 2
2
10.00%
10.00%
30.00%
0
Year 3
3
10.00%
10.00%
30.00%
0
Projected Profit and Loss
The projected profit and loss statement will list revenues, your cost for services provided, operating
expenses, and net income or loss. Depending on whether you are preparing a projected profit and
loss statement for an existing business or a start up enterprise, you may have some difficulty coming
up with reliable estimates.
Example: Astana Pet Service‘s Month-by-month assumptions for profit and loss are as follows,
shown in chart & table.
Chart: Profit Monthly
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Example: Astana Pet Service‘s gross margin same-day collection is critical, and is reasonable and
customary in the pet service industry. The yearly gross margin is shown below on table.
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Goods
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Web site management
Business travel
Year 1
$148,802
$39,600
$0
$39,600
$104,200
72.46%
Year 2
$243,181
$67,145
$0
$67,145
$156,035
69.91%
Year 3
$348,767
$72,607
$0
$72,607
$176,141
70.81%
$39,225
$5,000
$70,000
$5,000
$80,000
$5,000
$0
$20,400
$2,400
$238
$0
$6,400
$6,000
$0
$20,400
$2,400
$238
$0
$12,000
$8,000
$0
$20,400
$2,400
$238
$0
$15,000
$10,000
Miscellaneous
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
$2,400
$82,063
$22,567
$22,137
$4,461
$5,303
$12,374
8.71%
$3,000
$121,038
$34,432
$34,997
$3,506
$9,447
$22,044
9.78%
$5,000
$138,038
$38,086
$38,103
$2,510
$10,678
$24,915
11.02%
Break-even Analysis
Breakeven analysis is used to determine when your business will be able to cover all its expenses
and begin to make a profit. It is important to identify your start-up costs, which will help you
determine your sales revenue needed to pay ongoing business expenses.
Example: The following estimated break-even Analysis table & chart shows the projected fixed &
variable cost.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
Chart: Break-even Analysis
$9,438
28%
$6,839
Projected Cash Flow
The cash flow depends on assumptions for inventory turnover, payment days, and accounts
receivable management. Our projected same-day collection is critical, and is reasonable and
customary in the restaurant industry.
Example: Astana Pet Service‘s projected same-day collection is critical, and is reasonable and
customary in the pet service industry.
Table: Cash Flow
Pro Forma Cash Flow
Year 1
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Year 2
Year 3
$35,950
$46,790
$82,740
$55,795
$133,679
$189,474
$62,187
$175,704
$237,891
$0
$0
$0
$0
$0
$0
$75,000
$157,740
$0
$0
$0
$0
$0
$0
$0
$189,474
$0
$0
$0
$0
$0
$0
$0
$237,891
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Year 1
Year 2
Year 3
$39,225
$78,089
$117,314
$70,000
$155,278
$225,278
$80,000
$145,235
$225,235
$0
$9,960
$0
$9,960
$0
$9,960
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
$0
$0
$0
$127,274
$30,466
$70,466
$0
$0
$0
$235,238
($45,764)
$24,702
$0
$0
$0
$235,195
$2,696
$27,398
Chart: Cash
Projected Balance Sheet
A business' long-term plans often concern future asset growth and how it may be supported by
increased financing through both debt and equity. A projected balance sheet communicates
expected changes in future asset investments, outstanding liabilities and equity financing.
Businesses may consider the creation of a projected balance sheet as a way to facilitate long-term,
strategic planning.
Example: Astana Pet Service‘s balance sheet along with the conservative forecast shown on the
table.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Year 2
Year 3
$70,466
$61,060
$13,310
$0
$144,836
$24,702
$94,766
$22,568
$0
$142,037
$27,398
$105,623
$24,404
$0
$157,425
$0
$0
$0
$144,836
Year 1
$0
$0
$0
$142,037
Year 2
$0
$0
$0
$157,425
Year 3
$26,422
$40,040
$0
$66,462
$0
$66,462
$97,200
($31,200)
$12,374
$78,374
$144,836
$78,374
$11,539
$30,080
$0
$41,619
$0
$41,619
$97,200
($18,826)
$22,044
$100,417
$142,037
$100,417
$11,973
$20,120
$0
$32,093
$0
$32,093
$97,200
$3,217
$24,915
$125,332
$157,425
$125,332
Business Ratios
It includes dozens of standard pet service business ratios calculated from pet service business
plans financials, and used and expected by bankers, financial analysts, and investors. It also includes
a column of statistical indicators for the specific type of business.
Example: Astana Pet Service‘s asset ratios differ from the industry standard for two reasons:
1. Because we are operating initially as a home office with outsourced manufacturing, we do
not require any long-term assets at this stage.
2. Because our first sales approaches are to other professionals and the government, rather
than to individual consumers, we have a higher percentage of assets as accounts receivable.
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Year 1
Year 2
Year 3
0.00%
55.20%
11.46%
Industry
Profile
1.08%
42.16%
9.19%
0.00%
100.00%
0.00%
100.00%
45.89%
0.00%
45.89%
54.11%
66.72%
15.89%
0.00%
100.00%
0.00%
100.00%
29.30%
0.00%
29.30%
70.70%
67.09%
15.50%
0.00%
100.00%
0.00%
100.00%
20.39%
0.00%
20.39%
79.61%
22.01%
18.65%
36.34%
77.00%
23.00%
100.00%
27.21%
18.98%
46.19%
53.81%
100.00%
72.46%
49.91%
100.00%
69.91%
49.23%
100.00%
70.81%
49.60%
100.00%
38.34%
15.66%
0.00%
15.39%
0.00%
15.68%
0.00%
15.32%
1.52%
3.70%
2.18
1.98
45.89%
22.55%
12.20%
Year 1
8.60%
15.79%
3.41
2.87
29.30%
31.36%
22.17%
Year 2
9.88%
21.95%
4.91
4.14
20.39%
28.40%
22.61%
Year 3
10.02%
19.88%
1.83
1.01
58.09%
3.95%
9.42%
1.77
50
8.74
3.96
27
0.99
1.77
170
3.74
12.17
49
1.57
1.77
196
3.09
12.17
29
1.58
n.a
n.a
n.a
n.a
n.a
n.a
n.a
n.a
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.85
1
$78,374
0.41
1
$100,417
0.26
1
n.a
n.a
$125,332
4.96
9.98
15.18
n.a
n.a
1.01
46%
1.06
1.83
0
0.64
29%
0.59
2.22
0
0.63
20%
0.85
1.98
0
n.a
n.a
n.a
n.a
n.a
References
Astana Pet Service‘s will first attempt to sell the operation and use the proceeds to clear all
outstanding balances. If unable to sell the operation for sufficient proceeds we will force to default
whereby the SBA loan will be in senior standing.
Table: Sales Forecast
Month 1
Sales
Basic small feeder
Basic medium feeder
Basic large feeder
Basic extra large feeder
Custom low-end feeder
Custom medium feeder
Custom high-end feeder
Total Sales
Direct Cost of Sales
Basic small feeder
Basic medium feeder
Basic large feeder
Basic extra large feeder
Custom low-end feeder
Custom medium feeder
Custom high-end feeder
Subtotal Direct Cost of Sales
Month 6
Month
7
Month
8
0%
0%
0%
0%
0%
0%
0%
Month
9
$0
$0
$0
$0
$0
$0
$0
$0
Month 1
$0
$0
$0
$0
$0
$0
$0
$0
Month
10
Month 2
$0
$0
$0
$0
$0
$0
$0
$0
Month 3
$0
$0
$0
$0
$0
$0
$0
$0
Month 2
$0
$0
$0
$0
$0
$0
$0
$0
Month
11
$0
$0
$0
$0
$0
$0
$0
$0
Month
12
Month 4
$0
$0
$0
$0
$0
$0
$0
$0
Month 5
$0
$0
$0
$0
$1,200
$0
$0
$1,200
Month 3
Month 4
Month 5
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500
$0
$0
$0
$0
$0
$500
$0
$0
$0
$0
$1,200
$2,500
$4,000
$7,700
Month 6
$0
$0
$0
$0
$500
$600
$700
$1,800
$0
$0
$0
$0
$2,400
$2,500
$8,000
$12,900
Month
7
$0
$0
$0
$0
$1,000
$1,200
$1,400
$3,600
$0
$0
$0
$0
$1,200
$7,500
$4,000
$12,700
Month
8
$0
$0
$0
$0
$500
$1,800
$700
$3,000
$0
$0
$0
$0
$4,800
$2,500
$4,000
$11,300
Month
9
$0
$0
$0
$0
$2,000
$600
$700
$3,300
$0
$0
$0
$0
$8,400
$5,000
$2,000
$15,400
Month
10
$0
$0
$0
$0
$3,500
$1,200
$1,400
$6,100
$0
$0
$0
$0
$9,600
$10,000
$16,000
$35,600
Month
11
$0
$0
$0
$0
$4,000
$2,400
$2,800
$9,200
$0
$0
$0
$0
$12,000
$15,000
$20,000
$47,000
Month
12
$0
$0
$0
$0
$5,000
$3,600
$3,500
$12,100
Table: Personnel
Month 1
0% $2,400
0% $0
0% $0
1
$2,400
TL McClendon
Part-time Sales Rep
Inventory/Office Mgmt.
Total People
Total Payroll
Month 6
$2,400
$0
$0
$2,400
Month
7
$2,400
$0
$0
1
1
$2,400
Month
8
$2,400
$0
$2,085
2
$4,485
Month
9
$2,400
$0
$2,085
2
$4,485
Month
10
$2,400
$0
$2,085
2
$4,485
Month 2
Month 3
$2,400
$0
$0
1
1
$2,400
$2,400
$0
$0
$2,400
Month
11
$2,400
$0
$2,085
2
$4,485
Month 4
$2,400
$0
$0
1
$2,400
Month 5
$2,400
$0
$0
1
$2,400
Month 4
4
10.00%
10.00%
30.00%
Month 5
5
10.00%
10.00%
30.00%
Month
12
$2,400
$0
$2,085
2
$4,485
Table: General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Month 1
1
10.00%
10.00%
30.00%
Month 2
2
10.00%
10.00%
30.00%
Month 3
3
10.00%
10.00%
30.00%
Other
Month 6
6
10.00%
10.00%
30.00%
0
0
Month
7
7
10.00%
10.00%
30.00%
0
Month
8
8
10.00%
10.00%
30.00%
0
Month
9
9
10.00%
10.00%
30.00%
0
Month
10
10
10.00%
10.00%
30.00%
0
0
Month
11
11
10.00%
10.00%
30.00%
0
0
0
Month 3
Month 4
0
Month
12
12
10.00%
10.00%
30.00%
0
Table: Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Goods
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and
Other Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Web site management
Business travel
Miscellaneous
Total Operating Expenses
Profit Before Interest and
Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Month 6
$7,700
$1,800
Month 1
$0
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$2,400
$417
$2,400
$417
$2,400
$417
$2,400
$417
$2,400
$417
$0
$1,700
$200
$20
$0
$0
$500
$200
$5,437
($5,437)
$0
$1,700
$200
$20
$0
$0
$500
$200
$5,437
($5,437)
$0
$1,700
$200
$20
$0
$0
$500
$200
$5,437
($5,437)
$0
$1,700
$200
$20
$0
$800
$500
$200
$6,237
($5,537)
($5,437)
$389
($1,748)
($4,078)
0.00%
($5,537)
$382
($1,776)
($4,143)
-345.25%
$0
$1,700
$200
$20
15% $0
$0
15% $500
$200
$5,437
($5,437)
($5,437)
$410
($1,754)
($4,092)
0.00%
Month 2
$0
$0
$0
$0
$0
0.00%
($5,437)
$403
($1,752)
($4,088)
$0
$0
$0
$0
$0
0.00%
($5,437)
$396
($1,750)
($4,083)
0.00%
0.00%
Month
Month
Month
Month
Month
Month
7
8
9
10
11
12
$12,900 $12,700 $11,300 $15,400 $35,600 $47,000
$3,600
$3,000
$3,300
$6,100
$9,200
$12,100
Month 5
$1,200
$500
$0
$500
$700
0.00%
58.33%
$0
$0
$0
$0
$0
$0
$0
$1,800
$3,600
$3,000
$3,300
$6,100
$9,200
$12,100
$5,900
$9,300
$9,700
$8,000
$9,300
$26,400 $34,900
76.62% 72.09% 76.38% 70.80% 60.39% 74.16% 74.26%
$2,400
$417
$2,400
$417
$4,485
$417
$4,485
$417
$4,485
$417
$4,485
$417
$4,485
$417
$0
$1,700
$200
$20
$0
$800
$500
$200
$6,237
($337)
($337)
$375
($214)
($498)
-6.47%
$0
$1,700
$200
$20
$0
$800
$500
$200
$6,237
$3,064
$3,064
$368
$809
$1,887
14.63%
$0
$1,700
$200
$20
$0
$800
$500
$200
$8,322
$1,379
$1,379
$361
$305
$712
5.61%
$0
$1,700
$200
$20
$0
$800
$500
$200
$8,322
($322)
($322)
$354
($203)
($473)
-4.19%
$0
$1,700
$200
$20
$0
$800
$500
$200
$8,322
$979
$979
$348
$189
$442
2.87%
$0
$1,700
$200
$20
$0
$800
$500
$200
$8,322
$18,079
$18,079
$341
$5,321
$12,417
34.88%
$0
$1,700
$200
$20
$0
$800
$500
$200
$8,322
$26,579
$26,579
$334
$7,873
$18,371
39.09%
Table: Cash Flow
Month 1
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities
(interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Month 2
Month 3
Month 4
Month 5
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$300
$0
$300
0.00% $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Month 1
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Month 2
Month 3
$0
$0
$0
$50,000
$50,300
Month 4
Month 5
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid
Out
Principal Repayment of
Current Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current
Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Month 6
Month
7
Month
8
$2,400
$56
$2,456
$2,400
$1,692
$4,092
$2,400
$1,687
$4,087
$2,400
$1,683
$4,083
$2,400
$1,803
$4,203
$0
$0
$0
$0
$0
$830
$830
$830
$830
$830
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,286
($3,286)
$36,714
$0
$0
$4,922
($4,922)
$31,791
$0
$0
$4,917
($4,917)
$26,874
$0
$0
$4,913
($4,913)
$21,961
$0
$0
$5,033
$45,267
$67,228
Month
9
Month
10
Month
11
Month
12
$1,925
$30
$1,955
$3,225
$1,063
$4,288
$3,175
$5,905
$9,080
$2,825
$9,670
$12,495
$3,850
$9,490
$13,340
$8,900
$8,578
$17,478
$11,750
$12,055
$23,805
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,955
Month 6
$0
$0
$0
$0
$4,288
Month
7
$0
$0
$0
$0
$9,080
Month
8
$0
$0
$0
$25,000
$37,495
Month
9
$0
$0
$0
$0
$13,340
Month
10
$0
$0
$0
$0
$17,478
Month
11
$0
$0
$0
$0
$23,805
Month
12
$2,400
$5,495
$7,895
$2,400
$7,032
$9,432
$4,485
$7,996
$12,481
$4,485
$7,486
$11,971
$4,485
$7,201
$11,686
$4,485
$13,674
$18,159
$4,485
$22,283
$26,768
$0
$0
$0
$0
$0
$0
$0
$830
$830
$830
$830
$830
$830
$830
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$8,725
($6,770)
$60,458
$0
$0
$0
$10,262
($5,975)
$54,484
$0
$0
$0
$13,311
($4,231)
$50,252
$0
$0
$0
$12,801
$24,694
$74,947
$0
$0
$0
$12,516
$824
$75,770
$0
$0
$0
$18,989
($1,512)
$74,259
$0
$0
$0
$27,598
($3,793)
$70,466
Table: Balance Sheet
Month 1
Assets
Month 3
Month 4
Month 5
Starting
Balances
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Month 6
Month 2
Month 7
$40,000
$0
$1,000
$0
$41,000
$36,714
$0
$1,000
$0
$37,714
$31,791
$0
$1,000
$0
$32,791
$26,874
$0
$1,000
$0
$27,874
$21,961
$0
$1,000
$0
$22,961
$67,228
$900
$3,500
$0
$71,628
$0
$0
$0
$41,000
$0
$0
$0
$37,714
Month 1
$0
$0
$0
$32,791
Month 2
$0
$0
$0
$27,874
Month 3
$0
$0
$0
$22,961
Month 4
$0
$0
$0
$71,628
Month 5
$0
$50,000
$0
$50,000
$0
$50,000
$22,200
($31,200)
$0
($9,000)
$41,000
($9,000)
$1,636
$49,170
$0
$50,806
$0
$50,806
$22,200
($31,200)
($4,092)
($13,092)
$37,714
($13,092)
$1,631
$48,340
$0
$49,971
$0
$49,971
$22,200
($31,200)
($8,180)
($17,180)
$32,791
($17,180)
$1,627
$47,510
$0
$49,137
$0
$49,137
$22,200
($31,200)
($12,263)
($21,263)
$27,874
($21,263)
$1,622
$46,680
$0
$48,302
$0
$48,302
$22,200
($31,200)
($16,340)
($25,340)
$22,961
($25,340)
$5,262
$45,850
$0
$51,112
$0
$51,112
$72,200
($31,200)
($20,483)
$20,517
$71,628
$20,517
Month 8
Month 9
Month
10
Month
11
Month
12
$60,458
$6,645
$4,700
$0
$71,803
$54,484
$15,258
$4,100
$0
$73,841
$50,252
$18,878
$4,100
$0
$73,230
$74,947
$17,683
$3,800
$0
$96,429
$75,770
$19,743
$6,710
$0
$102,223
$74,259
$37,865
$10,120
$0
$122,244
$70,466
$61,060
$13,310
$0
$144,836
$0
$0
$0
$71,803
Month 6
$0
$0
$0
$73,841
Month 7
$0
$0
$0
$73,230
Month 8
$0
$0
$0
$96,429
Month 9
$0
$0
$0
$102,223
Month
10
$0
$0
$0
$122,244
Month
11
$0
$0
$0
$144,836
Month
12
$6,765
$45,020
$0
$51,785
$0
$51,785
$72,200
($31,200)
($20,982)
$20,018
$71,803
$20,018
$7,746
$44,190
$0
$51,936
$0
$51,936
$72,200
($31,200)
($19,095)
$21,905
$73,841
$21,905
$7,253
$43,360
$0
$50,613
$0
$50,613
$72,200
($31,200)
($18,383)
$22,617
$73,230
$22,617
$6,755
$42,530
$0
$49,285
$0
$49,285
$97,200
($31,200)
($18,856)
$47,144
$96,429
$47,144
$12,937
$41,700
$0
$54,637
$0
$54,637
$97,200
($31,200)
($18,414)
$47,586
$102,223
$47,586
$21,372
$40,870
$0
$62,242
$0
$62,242
$97,200
($31,200)
($5,998)
$60,002
$122,244
$60,002
$26,422
$40,040
$0
$66,462
$0
$66,462
$97,200
($31,200)
$12,374
$78,374
$144,836
$78,374