University Cycle Works

CONFIDENTIAL
University Cycle Works
Business Plan
Prepared April 2012
Contact Information
Josh Cochrane joshpcochrane@abc.com
Table of Contents
Executive Summary .....................................................................................................................1 Who We Are..........................................................................................................................1 What We Sell ........................................................................................................................1 Who We Sell To ...................................................................................................................2 Financial History .................................................................................................................2 Company Chapter ........................................................................................................................3 Company Overview ............................................................................................................3 Management Team..............................................................................................................3 Products and Services .................................................................................................................5 Products and Services .........................................................................................................5 Competitors ..........................................................................................................................6 Target Market ...............................................................................................................................8 Market Review .....................................................................................................................8 Market Needs .......................................................................................................................8 Key Customers .....................................................................................................................8 Market Trends......................................................................................................................9 Market Growth ..................................................................................................................10 Strategy and Implementation..................................................................................................11 Marketing Plan ..................................................................................................................11 Milestones...........................................................................................................................13
i CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Table of Contents
Competitive Edge ..............................................................................................................13 Strategic Alliances .............................................................................................................14 Financial Plan .............................................................................................................................15 Personnel Plan....................................................................................................................15 Sales Forecast......................................................................................................................16 Budget ..................................................................................................................................19 Cash Flow Assumptions...................................................................................................21 Loans and Investments.....................................................................................................22 Projected Profit and Loss Statement ..............................................................................23 Projected Balance Sheet ...................................................................................................26 Projected Cash Flow Statement ......................................................................................27 Appendix .....................................................................................................................................30 Monthly Financial Details ...............................................................................................30
ii CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Executive Summary
Who We Are
UniversityCycleWorksisanestablishedbicyclespecialtystore,offeringretailsalesof newbicycles,partsandaccessories,clothing,andmaintenanceandrepairservice.Itis locatedinaheavilytrafficked,universityfocusedarea. UniversityCycleWorksisasubchapterScorporation,andiscurrentlyownedbyHan Delbar.HubertWheeler,currentassistantmanagerofUniversityCycleWorks,is purchasingUniversityCycleWorksfromDelbar,acquiringexistinginventory,and assumingoutstandingaccountspayableanddatingprogramdebtstosuppliers, locationlease,customerbaseandinformation,andUniversityCycleWorksbusiness nameandgoodwill.ThebusinesswillcontinuetobeasubchapterScorporation. ExchangeofownershipwilloccuronJuly1,ofthisyear. WheelerhasbeentheassistantmanagerofUniversityCycleWorksforfiveyears,with anadditionalsevenyearsofbicycleindustryretailsalesandserviceexperience.Hefirst beganinvestigatingtheownershipofabikebusinesstwoyearsago,however,thelocal Metroburgmarketseemedsaturatedwithshops.Realizingthatamorepractical optionwouldbetobuyanexistingshop,heapproachedhiscurrentboss.Theresultof twoyearsofnegotiationswillbethesaleofUniversityCycleWorkstoWheeler,taking effectJuly1st.Thegoalwillbeaseamlesstransferofownership,withstaff,bikelines, location,andoperationsunchanged.
What We Sell
Bicycles.Wesellnewbicycles,predominantlyinthemountainbikestyle,retrocruiser isaclosesecond,andsport/touring/racingroadbikesadistantthird.Wealsosellsome usedbikeswhichwetakeinontradeasaservicetoourcustomerswhoarebuying newbikes. Accessories.Weofferawidevarietyofaccessories.Locks,computerspeedometers, fenders,cargoracks,comfortableseats,headlights,helmets,waterbottles,
1 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
panniers/backpacks/messengerbags,childseatsandtrailers,bikestorageracks,and autoroofracksystemsallfallinthiscategory. Clothing.Werotateourclothingbasedontheseason.Forexample,inAutumn,we stockjacketsandGoreTex.InWinter,weofferhelmetcoversandliners,insulated jerseysandpants,gloves,andshoecovers.IntheSpring,westartdisplayingsummer jerseys,andracingshorts Parts.Partsgenerallyreferstopiecesormaterialsnecessarytothebasicfunctioningof thebicycle.Generally,partsareinstalledduringserviceandareanadditionalcharge beyondtheservicefees.
Who We Sell To
TheprimarymarketforUniversityCycleWorksistheuniversitystudentpopulation, whichnormallyhasaturnover/growthofapproximately25%eachyear.The secondarymarketistheuniversityfacultyandstaff,andthetertiarymarketisthe greaterMetroburgcommunity.
Financial Summary
Thisfinancialplanwasdevelopedbaseduponpreviousyearsdatafortheexisting store,trackingtrendsinrevenuesandexpenses.Afivemonthtrackofsales,accounts receivablesandpayables,andinventoryfromayearendbenchmarkwasmade.The currentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor$140,000.The seller,buyer,andtheaccountantworkedtogetherontheplantobalanceoptimismwith reality.Anattorneywasconsultedonspecificsofthesalecontract. Salesforthefirstyearofnewownershipareprojectedabove$500,000,withagross marginofalmost65%.Profitabilityisexpectedatthemidwaypointofthefiscalyear, inMarch.
Company
Company Overview
UniversityCycleWorksisasubchapterScorporation,andiscurrentlyownedbyHan Delbar.HubertWheeler,currentassistantmanagerofUniversityCycleWorks,is purchasingUniversityCycleWorksfromDelbar,acquiringexistinginventory,and assumingoutstandingaccountspayableanddatingprogramdebtstosuppliers, locationlease,customerbaseandinformation,andUniversityCycleWorksbusiness nameandgoodwill.ThebusinesswillcontinuetobeasubchapterScorporation. ExchangeofownershipwilloccuronJuly1st. Toestablishanaccurateaccountingofexistinginventoryandoutstandingdebts,the prioryearsclosinginventoryandyearendfinancialstatementasreviewedbythe businessCPAwereusedasbenchmarks.Thesales,ordersplaced,deliveriesreceived, andaccountspayablepaymentsmadehavebeentrackedeachmonth,andatrial balanceofthesewillberunJune15toestablishthefinalpurchasepriceforinventoryon hand,andtheamountofAccountsPayableassumed.Thefigurespresentedhereare conservative,realisticestimatesusedforplanningpurposes.
Management Team
Thecurrentassistantmanager,HubertWheeler,isbuyingUniversityCycleWorks,and willmanagethebusiness.HehasaB.S.degreeinEconomicsandanM.A.in ComparativeLiterature.Hispassionhoweverhasalwaysbeencycling.Heoriginally workedathislocalbikeshopwhenhewasincollege.Afterseveralyearstryingtofind suitableworkinhisdegreefield,hegaveupchasingthechimeraofthesefieldsand decidedtoworkwithsomethingsubstantial,andreturnedtohisyouthfulenjoymentof bicycles. Heattendedtwoofthemajorbicyclemechanictrainingprograms,atNewEngland BicycleAcademyandtheUnitedBicycleInstitute.Thesecoursescoveredmechanical serviceandmaintenance,framebuildingandrepair,wheelbuilding,andshop
organization,sales,andmanagement.Hehas12yearsofprogressivelyresponsible experienceinbicycleshopswiththelastfiveatUniversityCycleWorks. Oneoftheotherfulltimeemployees,ValeriePedehasexpressedinterestinlearning moreaboutthebikeindustryandshewillbepromotedtobethenewassistant manager.Valhasbeenwithusforthreeyears.ShegraduatedfromStateUniversityat MetroburgwithtandemB.S.degreesinExercisePhysiologyandRecreation Management.Shelovestocycle,andhaskepthercontactsattheuniversityactive.Her knowledgeandexpertisedrawsmanywomenbicycliststoourstorewheretheyknow theywillgetthecareandattentionwhichisusuallymissingfromtraditionallymale staffedshops. Thecurrentowner,HanDelbarwillbeavailableasaresource. Additionalresourcesare: OrderOutofChaos,ourfullcyclebookkeepingservice. ContinentalShelfBank. NewtRia,apartneratWeasel,Stoat,Muskratwhoadvisedonthesale/purchase arrangements.
Products and Services

Products and Services
RetailSales 1. Bicycles.Wesellnewbicycles,predominantlyinthemountainbikestyle,retro cruiserisaclosesecond,andsport/touring/racingroadbikesadistantthird.We alsosellsomeusedbikeswhichwetakeinontradeasaservicetoourcustomers whoarebuyingnewbikes. 2. Accessories.Weofferawidevarietyofaccessories.Locks,computer speedometers,fenders,cargoracks,comfortableseats,headlights,helmets,water bottles,panniers/backpacks/messengerbags,childseatsandtrailers,bike storageracks,andautoroofracksystemsallfallinthiscategory.Itisnotpossible tocarryeverypossibleaccessory,sowetrytocarefullychosethosewhichwillbe mostusefulordesiredbyourtargetmarkets.Whenwereceivespecialrequests foranewitem,welloftenorderseveraltotestthelocaldemand,andif adequate,willaddittoourregularstock. 3. Clothing.Clothingappealstoallcyclists,whetheritisalogoemblazonedTshirt orapieceofwaterproofrainwear.AtUniversityCycleWorks,werotateour clothingbasedontheseason.Justbeforetheautumnrainswestockjacketsand GoreTex.Comewinterweofferhelmetcoversandliners,insulatedjerseysand pants,gloves,andshoecovers.Andwhenspringarrivesandthefirstcrocus appearsthroughthemeltingsnow,westartdisplayingsummerjerseys,and racingshorts. 4. Parts.Partsgenerallyreferstopiecesormaterialsnecessarytothebasic functioningofthebicycle.Generally,partsareinstalledduringservice[see below]andareanadditionalchargebeyondtheservicefees.Some,like cranksets,pedals,tires,derailleursorbrakes,arebothintegralpartsandupgrade accessories.Others,suchasheadsets,bottombrackets,spokes,chains,cables,and cablehousingsarestrictlymaintenance,thoughsomewillbesoldtocyclistswho prefertoworkontheirbikesthemselves.
Service UniversityCycleWorksisafullservicespecializedbicycleshop.Ourserviceoffering includes,butisnotlimitedto: Free30day/100miletuneupwitheverynewbikesold. Quickrepairsforflattires,brokenchains,brakecables,etc. Scheduledtuneups,replacementofallbearingsurfaces,repackingoflubricants, andadjustmentsofderailleursandbrakesystems. Installationofallaccessories. Authorizedwarrantyrepairsonthebikes. Customwheelbuilding. FramesetrepairsbyoutsourcingtoViaPorcocustomframebuilders.
Competitors
Settingasidethediscountdepartmentstores,UniversityCycleWorkshasthefollowing directcompetitors. Onelocalmultisportstoreatthelocalmegamall OnestatewidechainofbicycleshopswhichstartedoutasSchwinnonlyshops, buthashadtotakeonotherbrandsandproducts. Oneusedbikestorethathasmadeafinebusinessreputationforitself,dealing strictlyinusedbikes. Threelocal,includingtheoldestshopintown. Onelocalmultilocationchain,thathasspecializedinopeningshopsinsmall localmallsinareasofnewhousingdevelopment. Severalgaragemechanicsofferingserviceonly. Noneofthesecompetitorsiswithintwomilesoftheuniversity,andso,forthepresent, wehavefirstaccesstoourchosenmarketsegments.Oneofthelocalshopshaschosen
totargettheburgeoningyoungroadracersegment,anotherisfocusingonrecumbents andfoldingtravelcycles. ThetwostrongestcompetitorsaretheOldestShopinTownwhichcarriesthecacheof beingthemoststable,andmostwellknownaMetroburginstitution.TheMountain BikeSpecialisttargetsthesameathletic,young,performanceandimageconsciousrider thatwetargetintheuniversitystudentpopulation.Thesecyclistsareparticularabout theirbikeandwillgowherethenamebrandtheywantissold,orwilltryeverybike andthenbuytheonethatfitsbest,regardlessofstoreloyalty.
Target Market
Market Overview
ThepredominantmarketsegmentforUniversityCycleWorksistheuniversitystudent population.Wealsocatertotheuniversitystaff,localbusinessemployees,and,along witheveryotherbicycleshopintown,thegreaterMetroburgpopulation. Inpartthelocalmarketisdrivenbythelackofparking.Bicycletransportationismore economical,aswellastimeandspaceefficientintheuniversityneighborhood.Partof themarketispriceconstrainedandanotherpartishookedonthelatestfad,beitframe style,numberofgears,orportrayedimage.Aslongasnewstudentsarriveeachyear, ourmarketsegmentgrowthisassured.
Market Needs
Ourmarketnichehasseveralneedswhichwestrivetomeet: Qualitybikesatseveralpricepoints. Variousstylesandsizesofbikes,leaningheavilytowardthestylesmostpopular withthestudentpopulation. Rangeofaccessoriesmostpracticalinthelocalsetting,suchaslocks,fenders, lights,tires,seats,rainwear,etc. Plentyofreplacementcomponentsandserviceparts. Friendlypersonalrelationshipsbetweencyclistsandshopstaff. Promptandconvenientservicefromonthespotflattirefix,todropinrepairs,to scheduledmajormaintenance,wheretheridercandroptheirbikeoff,headto classorwork,andbeassuredthattheirbikewillbereadyfortheridehome.
Key Customers
Theuniversitystudentsareourmaintargetmarket.
1. Theyaremostlyundergraduates,sothereisa25%annualturnover. 2. Thelackofparkingintheuniversityareaandthegeneraleaseofbikemobility throughoutMetroburgmotivatesthemtousebicyclesasinexpensivetransport. Athleticpursuitsdrawthem,andthenearbyareasforuseofmountainandtrail bikesprovidesagreatplacetoride. 3. ThereisanewenthusiasmforretroCruiserbikes,andhighertechcruiserstyle bikeswithmultiplegears,goodbrakes,etc.amongthecollegeagepopulation. 4. Also,mainmarketforracks,locks,throughout,pannier/bags,fenders,rainwear, etc. 5. Theywantconvenienceforsalesandservice. Universityemployeesareanotherprimemarketsegment. 1. 2. 3. 4. Smallgrowthandturnover,butonthewhole,thegroupisprettystable. Arewillingtocommutebybicycletowork. Theywantastable,comfortablebikeandafullrangeofaccessories. Whentheirbikesneedserviceandmaintenance,localdropoff/pickup convenienceisimportant. 5. Theyhavefamilieswhoridebicyclesalso,andwillpatronizeashopthatgives personalservice. GreaterMetroburgpopulation. Thissegmenthasachoiceofgoingtoanybikeshopinthearea,andwillprobably chooseashoplocatedclosertotheirhome.Theyarenotthemaintargetmarket segmentofUniversityCycleWorks,andwemarkettothemcasually,onlyasa collateraleffecttoouruniversityorientedefforts.
Market Trends
Trendsinthebicycleindustryusuallylastforatime.Someofthemhavebeen: 1960sBigrushon10speeds. 1970sTouringbikesbecamepopular. 1980sand1990sHugegrowthofmountainbikes
1990sTherumoredbutexaggerateddeathofroadbikesandtheunfulfilled prophesyofaboominthetandemmarket. 2000sPopularityofretrocruisers.
Market Growth
ThebulkofUniversityCycleWorksmarketgrowthistheregularmatriculationof studentsfromtheStateUniversityinMetroburg.Whiletheoverallmarketnumbers changeinsmallincrements,usuallylessthan10%,themarkethasaturnoverof2226% yearly.Inalongertimeframethenumberofstudentsandthenumberofuniversity employeesgrowsandshrinkswitheconomicchanges,andwithpopulation demographics. Forthenextthreeyearsweforeseeasteadygrowthintheoveralluniversitypopulation aswellascontinuedgrowthofMetroburgasadesirableplacetolive.
Strategy and Implementation

Marketing Plan
Overview
Ourmarketingstrategyseekstooptimizeouradvantageofprimelocation.Wewantthe universitypopulationtoseeusastheirbikeshop,evenournamesaysso,University CycleWorks.Wewantthemtoseeusaspartoftheirdailyexperience,andashopthey candependonforquickrepairandmaintenanceservice.
Positioning
WeareUniversityCycleWorks,andwearepassionateaboutbicycles.
Pricing
Retail Pricingofbicyclesisverytightwithamarkupofbetween30%and40%depending uponthebrandandmodel.Manypeoplebelievethatbicyclesarepricedlike automobilesandareopenfornegotiation,andmakealmostinsultingoffers.Theshops havelittleleewayhere. Partsandaccessoriesaregenerallykeystonepriced.Somesmallitemscostmorein handlingandsalesthantheydotobuyfromsuppliers.Thesecanbedoubleandtriple keystoned,becausecustomerswontbuythemiftheydonthaveaminimumperceived value.Ontheplusside,thesearegreatthrowinitemsusedtoclosethesaleofabike. Whennewtechnologyarrivesinbicycles,andifthesupplyislimited,almostanyprice canbedemanded.Thiswasthecaseinthemid1990swhenRockShoxintroduced suspensionforksformountainbikes.Thebikenobswouldpaywhateverwasaskedjust togetthoseforks.Ofcourse,inthistypeofsituationtheprice,bothwholesaleand retail,lowers.
Otheraccessories,suchasstepinpedals,pannierracks,helmets,orheadlightsare sometimesheavilymarketedbythemanufacturers.Whilethisdrivesdemandand bringspeopleintotheshoptogettheseitems,thesuggestedmanufacturersretailprice maylimitmarkup. Themarkuponclothes,shoes,jackets,glovescanvaryfromkeystonetotriplekeystone, dependinguponproduct,manufacturer,countryoforigin,andcustomerperceptionof value.PearlIzumiandBurleyDesignrainwearcandemandpremiumpricesastopof thelinegarments,butmanybudgetconsciousstudentscanonlyafforda$35nylon windbreaker.Ithasbeenandalwayswillbeademandingjobforustoadequatelystock garmentsatthevariouspricepoints. Service WetrytomaintainabasicHourlyshoprateat$45/hour.Standardrepairsarethen pricedbaseduponanaveragetimeforcompletion.Somerepairs,suchasaflattire,are limitedbycustomerperceptionofdifficulty.Examples: FlatTire$7.50 InstallFenders$10.00 BrakeAdjustment$25.00 Tuneup$65.00 Overhaul$100.00 Allpartsusedinrepairsarepricedatkeystone,andaddedtothelaborservicecharge. Withseveralotherbicycleshopsinthecity,therearesomepriceconstraintsbasedon competition.Couponsandspecialscanbalancepriceceilingsbydrawingincustomers.
Promotion
Ourmarketingprogramsarelocallyfocused,wherewecaneffectourmaintarget market.
Backtoschoolspecials,atthebeginningofeachterm,includingperhapsafree Kryptonitelockwithanewbikepurchase.Wewilltrytohaveaspecialpurchaseofan economyvaluebikeforeachterm. Springspecial.Thiscoincideswiththebeginningofspringterm,butwewilldirect someofouradvertisingatthewiderpopulationaspeoplehanguptheirskisandtune uptheirbikes. Coupons.Onceeveryothermonthwewillrunacouponforaservicespecialinthe universitynewspaper,theDailyHyperbole.Wealsorunthiscouponasabanneradin theDailyHyperboleOnline. Website.Ourcontentsitewillalsoserveasamarketingmedium.Weoffer downloadablemapsofthecitybikeroutes,mapsofridesoutsidethecityarea,give informationaboutthestore,andannouncesales.Webelievethatcyclistswillregularly accessoursiteforthevaluableinformationwewillprovide,andthiswillreinforcetheir ofawarenessofUniversityCycleWorks,andwewillbecometheirbikeshopofchoice. Printadvertising.Inadditiontoourcoupons,wewillkeepasmall3columninchad appearingonarecurringscheduleintheDailyHyperbole.Toboostcitywideawareness ofoursalesspecialswewillalsorunslightlylargeradsintheMetroburgBombast Obfuscatorduringtheweekendspriortothesale.
Competitive Edge
TheforemostcompetitiveadvantageofUniversityCycleWorksisouruniversity location.Theuniversityisover100yearsoldandasithasgrown,Metroburghasgrown aroundit.Parkingisalmostnonexistent,withallcampusparkingpermitormeter controlled,andlocalstreetsfilledtocapacitywiththevehiclesofresidents.Bicyclesare anobviousandpopulartransportationsolution. Ourlocation,inthefirstblockoffcampusinacommercialareafeaturingtheuniversity bookstore,aprivatebookstore,bank,cafes,coffeeshopsandpopularwateringholesis ideal.Wegetconstant,dailyvisualexposure.Studentsandstaffthrongthesidewalk outsideourdoor,andwereapthebenefits.Ournearestcompetitorisalmostamile
away.Forthestudentcustomer,onfoot,inahurry,UniversityCycleWorksisthe immediatesolutiontotheirneeds. Afterthatfirstparkingticket,wearethefirstbikeshopthenewpedestriansees.Weare convenientlylocatedwhenacyclistgetsaflattireonthewaytoclass.Thefirsttimea ridergetstoclasswithawetbacktheycomeinatlunchforasetoffendersandarain jacket. Thenegotiationsofthepasttwoyearsalsobringstheadvantageofcontinuedfinancial agreementswithmajorsuppliers.Thisisanadvantageoverastartupbicycleshop,but, ismorealevelingofthebikepathwhencomparedtootherestablishedshopin Metroburg.TraditionallyastartupstorewillbeplacedonaCashOnDelivery(COD) statusbybicyclemanufacturersandparts/accessoriessuppliers.TheCODstatusstays ineffectuntilthenewshopdemonstratesitsabilitytomanageitsordersandcashflow. Thisalsomeansthenewshopmusthavemorefundingtobeabletowritechecksona momentsnotice,forlargeamounts. UniversityCycleWorkswillbecontinuinganestablishedsystemofdatingprograms, ordering,delivery,andinvoicing/accountspayable,stabilizingourfundingneedsand monthlycashflow.
Strategic Alliances
Bicyclemanufacturerscontinuationofdatingprogramsandfinancial agreements. Accessorysupplierscontinuationoffinancialagreements. MetroburgParksDept.wesponsorprintedmapofcitybikepathstopublishon ourwebsite. UniversitySecurityOfficemaintenance,supplyservicecontractforcycle security. HooDaThunkItwebsitedesignandmaintenance,searchengineplacement.
Financial Plan
Sales Forecast
Sales Forecast Table
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200 $133,400 $172,500 $78,200 $190,900 $1,380 $153,410 $198,375 $89,930 $219,535 $1,587
FY2014
FY2015
Total Sales Direct Cost

New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract
$501,200
$576,380
$662,837
$78,880 $75,000 $23,800 $0 $0
$90,712 $86,250 $27,370 $0 $0
$104,319 $99,187 $31,475 $0 $0
Total Direct Cost Gross Margin

Gross Margin %
$177,680 $323,520
65%
$204,332 $372,048
65%
$234,981 $427,856
65%
Sales by Month
About the Sales Forecast

Salesvaryseasontoseasonandwiththeacademicschoolyear.Surprisingly,summeris theslowestseasonbecausetherearefewerstudentsintown.Businesspicksupin Augustwiththereturnofthestudentsandstaff,andflourishesinSeptember. Accessoriesandrainwearsalesincreaseintheautumnandearlywinter.Repairsand maintenancearesteady.Holidaysalesarebrisk,thoughgenerallyleaningagainto accessories,parts,rainwear,gloves,helmets,headlights,etc.Wintersalesaremoderate, andthenpickupinspringtimeaspeopleputawaytheirskiesandlookforwardtolocal outdooractivities,longerdaylighthours,anddrierweather. Wehavethreelargesalespromotionseachyear. 1. BacktoschoolinAugust/September.Thisisourbiggestsaleoftheyear.New bicycles,locks,helmets,racks,fenders,backpacks.Wealwayssearchforaspecial purchaseofgoodquality,butvaluepricedbikesforthissalesuchasyearend models,slowsellers,newlinelookstobreakintothemarket.Thesebikeswill almostalwayssellouttostudentsseekinggreatvalues.
2. Yearendholidays.ThisalsooverlapsthebeginningofWinterterm.Theretail marketdemandssomeparticipationinthisannualbuyingfrenzy,yet,thissale produceslowerrevenuethanourothertwoevents.Wesellfewerbikes,and moreaccessoriesandclothing. 3. Spring.Thiscoincideswithboththereturnofniceweather,andbeginningof Springterm.Wefeaturenewbicycles,andrepair/maintenance/tuneupspecials. Itisimportanttoustohaveagoodselectiononhandatthistime.Whenpeople decidetheywantthatnewbike,theywantitnow.Ifwedonthavethebikethen, andmakethesaleimmediately,manyriderswilldecidethattheyreallycanget anotherseasonoutoftheiroldbike,andwillspendtheirdiscretionaryincomeon someotherpurchase. Additionally,wehavesomespecialbuysavailableforJunegraduation. Wegetsomesmallmonthlyrevenuefromthesesources: Saleofusedbicyclestakeninontrade. RepairclassestaughtattheUniversityOutdoorCenter,onceaterm. MonthlyservicecontractforrepairsandpartswiththeUniversitySecurity Office.
Personnel Plan
Personnel Table
FY2013
Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900
FY2014
$36,540 $28,350 $24,570 $20,790 $25,200
FY2015
$60,000 $30,000 $25,799 $21,830 $25,200
Total
$123,900
$135,450
$162,829
About the Personnel Plan

ThestaffwillconsistofHubertWheeler,thenewowner,ValeriePede,andtwoother fulltimeemployeesDeeRay,andJeanBaptisteKape. Tomeettheneedforadditionalhelpduringtheyear,UniversityCycleWorkshirestwo tofourparttimeemployeesfromtheuniversitypopulation.Welookforpeoplewho areenthusiasticaboutcycling,andwhohaveamechanicalaptitude.Someofthesefolks haveworkedforusthroughouttheirentirecollegesojourn.Theirhoursvarydepending onthestoresneedsandtheirclassschedules.
Budget
Budget Table
FY2013 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0
FY2014
FY2015
Total Expenses Major Purchases

Longterm asset
$290,659
$294,634
$332,183
$1,200
$0
$0
Total Major Purchases
$1,200
$0
$0
Expenses by Month
About the Budget

Oursalarytotals,employeebenefitsandmonthlyexpenseprojectionsareincludedin theBudget.Arentdepositwasmadetothelandlordasasecurityduringthetransferof thebusinesstothenewowner,inordertokeepthecurrentleaseagreement.If,atthe endofthefirstyear,thebusinessisstillsolvent,thedepositwillbeappliedtothe twelfthmonthsrent.
Startup Costs
Ourestimatedstartingexpensestotal$13,300.Theyinclude,legalandaccountingcosts totransferownershipofthebusiness,stationery,etc.,promotionalmaterials,insurance, andthedownpaymenttowardthepurchaseofthebusiness.
Cash Flow Assumptions

Cash Flow Assumptions
Cash Inflow
% of Sales on Credit 0%
Cash Outflow
% of Purchases on Credit Avg Payment Delay (Days) 100% 45
Inventory
Months to Keep on Hand Minimum Inventory Purchase 1 $1,000
About the Cash Flow Assumptions

Wehaveaccountspayablesetat45days.Wealsokeepapproximatelyonemonths worthofinventoryonhand,withaminimumpurchaseof$1,000,onaverage.Wehada startinginventorybalanceforthisplanat$17,000fromthepreviousowner,which carriedforwardwiththebusinesstransfer. Wedonotselloncredit.
Loans and Investments

Loans and Investments Table
FY2013
Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos. $10,000 $2,000 $130,000
FY2014
$0 $0 $0
FY2015
$0 $0 $0
Total Amount Received
$142,000
$0
$0
Sources of Funds
Thecurrentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor $140,000.Thevalueoftheexistingcompany,itsreputation,assumptionofthebusiness name,existingclientbase,etc.isrecognizedaspartofthepurchase.Itappearsasa startupexpenseinthefollowingtableasDownPayment.Thebalanceappearsasa longtermliability. Wheelerisinvestingsomeofhisownmoney,partiallyahomeequityloan,inthe company.Anadditionalamountisbeinginvested,asshortterminterestfreeloans,by familymembers.Thisplancallsfortheseloanstoberepaidinthefirstyear.
Use of Funds
Projected Profit and Loss Statement

Projected Profit and Loss Statement
FY2013 Income Direct Cost Gross Margin
Gross Margin %
FY2014 $576,380 $204,332 $372,048

65%
FY2015 $662,837 $234,981 $427,856

65%
$501,200 $177,680 $323,520

65%
Expenses
Total Expenses Operating Income

Interest Incurred Depreciation and Amortization Income Taxes
$290,659 $32,861
$7,966 $12,320 $3,144
$294,634 $77,414
$7,354 $12,540 $14,380
$332,183 $95,673
$5,942 $12,540 $19,298
Net Profit Net Profit/Sales
$9,431 2%
$43,140 7%
$57,893 9%
Gross Margin by Year
Net Profit (or Loss) by Year
About the Projected Profit and Loss Statement

Innegotiatingthesmoothtransitioninownership,thelandlordagreedtocontinuethe currentleaseunchanged.Assurety,onemonthsrentwasrequiredasadepositatthe timeofsale.Thisisshowninthestartingexpenses.Further,thelandlordagreedthatif, after11monthsoperationthenewcompanywassolventandcurrentinleasepayments, thatthedepositcouldbeappliedtothetwelfthmonthsrent. ThemidsummermonthsofJulyandAugustareslowmonthswhenalargepartofthe universitypopulationisgoneonsummerbreak.Themidwintermonthsare traditionallylossmonths.Theweatheristhemostinclementanddiscretionaryincome isatitslowestaftertheholidaybinges.However,wetrytokeepourentirestaffon boardtoworkonourowninventory,storerefurbishing,andstafftraining.
Projected Balance Sheet

Projected Balance Sheet
As of Period's End
Cash Accounts Receivable Inventory
Starting Balances
$0 $0 $17,000
FY2013
$142,440 $0 $17,026
FY2014
$183,550 $0 $19,580
FY2015
$233,747 $0 $19,583
Total Current Assets

LongTerm Assets Accumulated Depreciation
$17,000
$61,500 $0
$159,466
$62,700 ($12,320)
$203,130
$62,700 ($24,860)
$253,330
$62,700 ($37,400)
Total LongTerm Assets Total Assets

Accounts Payable Sales Taxes Payable ShortTerm Debt
$61,500 $78,500
$27,800 $0 $0
$50,380 $209,846
$36,025 $0 $200
$37,840 $240,970
$43,467 $0 $0
$25,300 $278,630
$43,884 $0 $0
Total Current Liabilities

LongTerm Debt
$27,800
$0
$36,225
$113,490
$43,467
$94,232
$43,884
$73,582
Total Liabilities
PaidIn Capital Retained Earnings Earnings
$27,800
$25,000 $0 $0
$149,715
$25,000 $0 $9,431
$137,699
$25,000 $9,431 $43,140
$117,466
$25,000 $52,571 $57,893
Total Owner's Equity Total Liabilities & Equity
$25,000
$34,431
$77,571
$135,464
$52,800
$184,146
$215,270
$252,930
About the Projected Balance Sheet

Ourgoalistorepaytheloansfromourfamilywithinthefirstyear,andweproject payingHanDelbarhisentirepurchasepricewithinfiveyears.Otherbalancesheet informationisshowninthetable.
Projected Cash Flow Statement

Projected Cash Flow Statement
FY2013 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable $9,431 $12,320 $0 ($26) $8,225 $0 $43,140 $12,540 $0 ($2,554) $7,442 $0 $57,893 $12,540 $0 ($3) $417 $0
FY2014
FY2015
Net Cash Flow from Operations Investing & Financing

Assets Purchased Investments Received Increase in ShortTerm Debt Increase in LongTerm Debt
$29,950
$60,568
$70,847
($1,200) $0 $200 $113,490
$0 $0 ($200) ($19,258)
$0 $0 $0 ($20,650)
Net Cash Flow from Investing & Financing

Cash at Beginning of Period Net Increase in Cash
$112,490
$0 $142,440
($19,458)
$142,440 $41,110
($20,650)
$183,550 $50,197
Cash at End of Period
$142,440
$183,550
$233,747
Projected Cash Flow by Month
Projected Cash Flow by Year
About the Projected Cash Flow Statement

Thecashflowreflectstheseasonalityofbicyclesalesandthevaryingpayment programs.Attimes,thebusinessisinventoryheavy,stockingupforthebeginningof schoolrush,orspecificsales.Atothertimes,thereisnegativecashflowaslongterm accountspayable,net90,net60paymentscoincidewithregularnet30invoices.
Starting Balances
Sales
Sales Last Month Sales 2 Months Ago Sales 3 Months Ago Sales 4 Months Ago Sales 5 Months Ago Sales 6 Months Ago $0 $0 $0 $0 $0 $0
Expenses
Expenses Last Month Expenses 2 Months Ago Expenses 3 Months Ago Expenses 4 Months Ago Expenses 5 Months Ago Expenses 6 Months Ago $0 $0 $0 $0 $0 $0
Assets
Cash Accounts Receivable Inventory LongTerm Assets Accumulated Depreciation $0 $0 $17,000 $61,500 $0
Liabilities
Accounts Payable Sales Taxes Payable $27,800 $0
Capital
PaidIn Capital $25,000
Retained Earnings
$0
Appendix
Monthly Financial Details
Sales Forecast Table (With Monthly Detail)
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $9,500 $11,000 $3,500 $11,000 $14,000 $17,500 $3,500 $11,000 $14,000 $16,000 $4,500 $13,000 $9,500 $11,000 $6,500 $14,000 $6,500 $10,000 $10,500 $12,000 $10,000 $15,000 $7,500 $11,000 $7,500 $9,500 $4,500 $12,000 $6,500 $8,000 $3,500 $14,000 $8,000 $13,000 $4,500 $16,000 $9,500 $15,000 $6,500 $18,000 $11,000 $11,000 $7,500 $18,000 $10,000 $13,000 $5,500 $16,000
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100

$35,100
$46,100
$47,600
$41,100
$39,100
$43,600
$33,600
$32,100
$41,600
$49,100
$47,600
$44,600
$6,460 $5,500 $1,225 $0
$9,520 $8,750 $1,225 $0
$9,520 $8,000 $1,575 $0
$6,460 $5,500 $2,275 $0
$4,420 $5,000 $3,675 $0
$6,800 $7,500 $2,625 $0
$5,100 $4,750 $1,575 $0
$4,420 $4,000 $1,225 $0
$5,440 $6,500 $1,575 $0
$6,460 $7,500 $2,275 $0
$7,480 $5,500 $2,625 $0
$6,800 $6,500 $1,925 $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Direct Cost
$13,185
$19,495
$19,095
$14,235
$13,095
$16,925
$11,425
$9,645
$13,515
$16,235
$15,605
$15,225
Gross Margin
Gross Margin %
$21,915
62%
$26,605
58%
$28,505
60%
$26,865
65%
$26,005
67%
$26,675
61%
$22,175
66%
$22,455
70%
$28,085
68%
$32,865
67%
$31,995
67%
$29,375
66%
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200
FY2014
FY2015
$133,400 $172,500 $78,200 $190,900 $1,380
$153,410 $198,375 $89,930 $219,535 $1,587

$501,200
$576,380
$662,837
$78,880 $75,000 $23,800 $0 $0
$90,712 $86,250 $27,370 $0 $0
$104,319 $99,187 $31,475 $0 $0
Total Direct Cost Gross Margin

Gross Margin %
$177,680 $323,520
65%
$204,332 $372,048
65%
$234,981 $427,856
65%
Personnel Table (With Monthly Detail)

FY2013
Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees
Jul '12
$1,800 $2,250 $1,950 $1,650 $0
Aug '12
$3,000 $2,250 $1,950 $1,650 $700
Sep '12
$3,000 $2,250 $1,950 $1,650 $1,400
Oct '12
$3,000 $2,250 $1,950 $1,650 $2,100
Nov '12
$3,000 $2,250 $1,950 $1,650 $2,100
Dec '12
$3,000 $2,250 $1,950 $1,650 $2,100
Jan '13
$3,000 $2,250 $1,950 $1,650 $2,100
Feb '13
$3,000 $2,250 $1,950 $1,650 $2,100
Mar '13
$3,000 $2,250 $1,950 $1,650 $2,100
Apr '13
$3,000 $2,250 $1,950 $1,650 $2,100
May '13
$3,000 $2,250 $1,950 $1,650 $1,400
Jun '13
$3,000 $2,250 $1,950 $1,650 $700
Total
$7,650
$9,550
$10,250
$10,950
$10,950
$10,950
$10,950
$10,950
$10,950
$10,950
$10,250
$9,550
FY2013
Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900
FY2014
$36,540 $28,350 $24,570 $20,790 $25,200
FY2015
$60,000 $30,000 $25,799 $21,830 $25,200
Total
$123,900
$135,450
$162,829
Budget Table (With Monthly Detail)

FY2013 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $7,650 $9,550 $10,250 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,250 $9,550
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$1,914 $1,618 $8,000 $300 $150 $350 $13,300
$2,389 $2,073 $8,000 $300 $150 $350 $0
$2,564 $4,268 $8,000 $300 $150 $350 $0
$2,739 $1,798 $8,000 $300 $150 $350 $0
$2,739 $1,738 $8,000 $300 $150 $350 $0
$2,739 $1,998 $8,000 $300 $150 $350 $0
$2,739 $1,698 $8,000 $300 $150 $350 $0
$2,739 $1,528 $8,000 $300 $150 $350 $0
$2,739 $1,813 $8,000 $300 $150 $350 $0
$2,739 $2,313 $8,000 $300 $150 $350 $0
$2,564 $1,993 $8,000 $300 $150 $350 $0
$2,389 $2,028 $0 $300 $150 $350 $0

Longterm asset
$33,282
$22,812
$25,882
$24,287
$24,227
$24,487
$24,187
$24,017
$24,302
$24,802
$23,607
$14,767
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200
FY2013 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300
FY2014
FY2015
$135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0
$162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0

Longterm asset
$290,659
$294,634
$332,183
$1,200
$0
$0
$1,200
$0
$0
Loans and Investments Table (With Monthly Detail)

FY2013
Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos.
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$130,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$142,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
FY2013
Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos. $10,000 $2,000 $130,000
FY2014
$0 $0 $0
FY2015
$0 $0 $0
$142,000
$0
$0
Projected Profit and Loss Statement (With Monthly Detail)

Gross Margin %
Jul '12 $35,100 $13,185 $21,915

62%
Aug '12 $46,100 $19,495 $26,605

58%
Sep '12 $47,600 $19,095 $28,505

60%
Oct '12 $41,100 $14,235 $26,865

65%
Nov '12 $39,100 $13,095 $26,005

67%
Dec '12 $43,600 $16,925 $26,675

61%
Jan '13 $33,600 $11,425 $22,175

66%
Feb '13 $32,100 $9,645 $22,455

70%
Mar '13 $41,600 $13,515 $28,085

68%
Apr '13 $49,100 $16,235 $32,865

67%
May '13 $47,600 $15,605 $31,995

67%
Jun '13 $44,600 $15,225 $29,375

66%
Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $7,650 $9,550 $10,250 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,250 $9,550
$1,914 $1,618 $8,000 $300 $150 $350 $13,300
$2,389 $2,073 $8,000 $300 $150 $350 $0
$2,564 $4,268 $8,000 $300 $150 $350 $0
$2,739 $1,798 $8,000 $300 $150 $350 $0
$2,739 $1,738 $8,000 $300 $150 $350 $0
$2,739 $1,998 $8,000 $300 $150 $350 $0
$2,739 $1,698 $8,000 $300 $150 $350 $0
$2,739 $1,528 $8,000 $300 $150 $350 $0
$2,739 $1,813 $8,000 $300 $150 $350 $0
$2,739 $2,313 $8,000 $300 $150 $350 $0
$2,564 $1,993 $8,000 $300 $150 $350 $0
$2,389 $2,028 $0 $300 $150 $350 $0

$33,282
$22,812
$25,882
$24,287
$24,227
$24,487
$24,187
$24,017
$24,302
$24,802
$23,607
$14,767
($11,367)
$0 $1,025 $0
$3,793
$773 $1,025 $0
$2,623
$764 $1,025 $0
$2,578
$754 $1,025 $0
$1,778
$745 $1,025 $0
$2,188
$734 $1,025 $0
($2,012)
$724 $1,025 $0
($1,562)
$715 $1,025 $0
$3,783
$705 $1,025 $0
$8,063
$694 $1,025 $0
$8,388
$684 $1,025 $0
$14,608
$674 $1,045 $3,144
($12,392) (35%)
$1,995 4%
$834 2%
$799 2%
$8 0%
$429 1%
($3,761) (11%)
($3,302) (10%)
$2,053 5%
$6,344 13%
$6,679 14%
$9,745 22%

Gross Margin %
FY2014 $576,380 $204,332 $372,048

65%
FY2015 $662,837 $234,981 $427,856

65%
$501,200 $177,680 $323,520

65%
Expenses

$290,659 $32,861
$7,966 $12,320 $3,144
$294,634 $77,414
$7,354 $12,540 $14,380
$332,183 $95,673
$5,942 $12,540 $19,298
$9,431 2%
$43,140 7%
$57,893 9%
Projected Balance Sheet (With Monthly Detail)

As of Period's End
Starting Balances
$0 $0 $17,000
Jul '12
$151,706 $0 $19,495
Aug '12
$152,532 $0 $19,095
Sep '12
$153,407 $0 $14,235
Oct '12
$152,374 $0 $13,095
Nov '12
$145,149 $0 $16,925
Dec '12
$148,191 $0 $11,425
Jan '13
$144,414 $0 $9,645
Feb '13
$136,288 $0 $13,515
Mar '13
$135,178 $0 $16,235
Apr '13
$142,143 $0 $15,605
May '13
$145,971 $0 $15,225
Jun '13
$142,440 $0 $17,026

$17,000
$171,201
$171,627
$167,642
$165,469
$162,074
$159,616
$154,059
$149,803
$151,413
$157,748
$161,196
$159,466
$61,500 $0
$61,500 ($1,025)
$61,500 ($2,050)
$61,500 ($3,075)
$61,500 ($4,100)
$61,500 ($5,125)
$61,500 ($6,150)
$61,500 ($7,175)
$61,500 ($8,200)
$61,500 ($9,225)
$61,500 ($10,250)
$61,500 ($11,275)
$62,700 ($12,320)
Total Long Term Assets Total Assets

$61,500 $78,500
$60,475 $231,676
$59,450 $231,077
$58,425 $226,067
$57,400 $222,869
$56,375 $218,449
$55,350 $214,966
$54,325 $208,384
$53,300 $203,103
$52,275 $203,688
$51,250 $208,998
$50,225 $211,421
$50,380 $209,846
$27,800 $0 $0
$51,518 $0 $11,850
$50,532 $0 $11,700
$46,304 $0 $11,550
$44,932 $0 $10,400
$43,637 $0 $8,750
$43,867 $0 $6,100
$43,697 $0 $4,950
$43,377 $0 $4,800
$43,577 $0 $4,650
$44,220 $0 $4,500
$44,150 $0 $1,850
$36,025 $0 $200

LongTerm Debt
$27,800
$63,368
$62,232
$57,854
$55,332
$52,387
$49,967
$48,647
$48,177
$48,227
$48,720
$46,000
$36,225
$0
$130,000
$128,542
$127,076
$125,601
$124,118
$122,626
$121,125
$119,616
$118,098
$116,571
$115,035
$113,490
Total Liabilities
PaidIn Capital
$27,800
$25,000
$193,368
$25,000
$190,774
$25,000
$184,930
$25,000
$180,933
$25,000
$176,505
$25,000
$172,593
$25,000
$169,772
$25,000
$167,793
$25,000
$166,325
$25,000
$165,291
$25,000
$161,035
$25,000
$149,715
$25,000
Retained Earnings Earnings
$0 $0
$0 ($12,392)
$0 ($10,397)
$0 ($9,563)
$0 ($8,764)
$0 ($8,756)
$0 ($8,327)
$0 ($12,088)
$0 ($15,390)
$0 ($13,337)
$0 ($6,993)
$0 ($314)
$0 $9,431
$25,000
$12,608
$14,603
$15,437
$16,236
$16,244
$16,673
$12,912
$9,610
$11,663
$18,007
$24,686
$34,431
$52,800
$205,976
$205,377
$200,367
$197,169
$192,749
$189,266
$182,684
$177,403
$177,988
$183,298
$185,721
$184,146
As of Period's End
Starting Balances
$0 $0 $17,000
FY2013
$142,440 $0 $17,026
FY2014
$183,550 $0 $19,580
FY2015
$233,747 $0 $19,583

$17,000
$61,500 $0
$159,466
$62,700 ($12,320)
$203,130
$62,700 ($24,860)
$253,330
$62,700 ($37,400)
Total LongTerm Assets Total Assets

$61,500 $78,500
$27,800 $0 $0
$50,380 $209,846
$36,025 $0 $200
$37,840 $240,970
$43,467 $0 $0
$25,300 $278,630
$43,884 $0 $0

LongTerm Debt
$27,800
$0
$36,225
$113,490
$43,467
$94,232
$43,884
$73,582
Total Liabilities
PaidIn Capital Retained Earnings Earnings
$27,800
$25,000 $0 $0
$149,715
$25,000 $0 $9,431
$137,699
$25,000 $9,431 $43,140
$117,466
$25,000 $52,571 $57,893
$25,000 $52,800
$34,431 $184,146
$77,571 $215,270
$135,464 $252,930
Projected Cash Flow Statement (With Monthly Detail)

FY2013 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable ($12,392) $1,995 $834 $799 $8 $429 ($3,761) ($3,302) $2,053 $6,344 $6,679 $9,745
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,045
$0 ($2,495)
$0 $400
$0 $4,860
$0 $1,140
$0 ($3,830)
$0 $5,500
$0 $1,780
$0 ($3,870)
$0 ($2,720)
$0 $630
$0 $380
$0 ($1,801)
$23,718
($986)
($4,228)
($1,372)
($1,295)
$230
($170)
($320)
$200
$643
($70)
($8,125)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$9,856
$2,434
$2,491
$1,592
($4,092)
$7,184
($1,126)
($6,467)
$558
$8,642
$8,014
$864
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
($1,200) $0
$11,850
($150)
($150)
($1,150)
($1,650)
($2,650)
($1,150)
($150)
($150)
($150)
($2,650)
($1,650)
$130,000
($1,458)
($1,466)
($1,475)
($1,483)
($1,492)
($1,501)
($1,509)
($1,518)
($1,527)
($1,536)
($1,545)
$141,850
($1,608)
($1,616)
($2,625)
($3,133)
($4,142)
($2,651)
($1,659)
($1,668)
($1,677)
($4,186)
($4,395)
$0 $151,706
$151,706 $826
$152,532 $875
$153,407 ($1,033)
$152,374 ($7,225)
$145,149 $3,042
$148,191 ($3,777)
$144,414 ($8,126)
$136,288 ($1,110)
$135,178 $6,965
$142,143 $3,828
$145,971 ($3,531)
$151,706
$152,532
$153,407
$152,374
$145,149
$148,191
$144,414
$136,288
$135,178
$142,143
$145,971
$142,440
FY2013 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable $9,431 $12,320 $0 ($26) $8,225 $0
FY2014
FY2015
$43,140 $12,540 $0 ($2,554) $7,442 $0
$57,893 $12,540 $0 ($3) $417 $0

$29,950
$60,568
$70,847
($1,200) $0 $200 $113,490
$0 $0 ($200) ($19,258)
$0 $0 $0 ($20,650)

$112,490
$0 $142,440
($19,458)
$142,440 $41,110
($20,650)
$183,550 $50,197
$142,440
$183,550
$233,747

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