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Table of Contents

1.0 Executive Summary...............................................................................................................................1

1.1 Mission...............................................................................................................................................1
1.2 Objectives..........................................................................................................................................1
1.3 Keys to Success..................................................................................................................................1
2.0 Company Summary...............................................................................................................................1
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Table: Start-up.....................................................................................................................................2
..............................................................................................................................................................2
Chart: Start-up......................................................................................................................................4
2.3 Company Locations and Facilities.....................................................................................................4
3.0 Services..................................................................................................................................................4
4.0 Market Analysis Summary....................................................................................................................4
4.1 Market Segmentation.........................................................................................................................4
Table: Market Analysis........................................................................................................................5
Chart: Market Analysis (Pie)...............................................................................................................5
4.2 Target Market Segment Strategy.......................................................................................................6
4.2.1 Market Needs..............................................................................................................................6
4.3 Service Business Analysis.................................................................................................................6
4.3.1 Competition and Buying Patterns...............................................................................................6
5.0 Strategy and Implementation Summary.................................................................................................7
5.1 Competitive Edge...............................................................................................................................7
5.2 Sales Strategy.....................................................................................................................................7
Chart: Sales by Year............................................................................................................................7
Table: Sales Forecast...........................................................................................................................8
Chart: Sales Monthly...........................................................................................................................8
6.0 Management Summary..........................................................................................................................9
6.1 Personnel Plan....................................................................................................................................9
Table: Personnel...................................................................................................................................9
7.0 Financial Plan.........................................................................................................................................9
7.1 Break-even Analysis........................................................................................................................10
Table: Break-even Analysis...............................................................................................................10
Chart: Break-even Analysis...............................................................................................................10
7.2 Projected Profit and Loss.................................................................................................................11
Table: Profit and Loss........................................................................................................................11
Chart: Profit Monthly.........................................................................................................................12
Chart: Profit Yearly............................................................................................................................12
Chart: Gross Margin Monthly............................................................................................................13
Chart: Gross Margin Yearly...............................................................................................................13
7.3 Projected Cash Flow........................................................................................................................14
Chart: Cash.........................................................................................................................................14
Table: Cash Flow...............................................................................................................................15
Table: General Assumptions..............................................................................................................15
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Table of Contents

................................................................................................................................................................15
7.4 Projected Balance Sheet...................................................................................................................16
Table: Balance Sheet..........................................................................................................................16
................................................................................................................................................................16
Table: Ratios......................................................................................................................................17
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................4
Table: Cash Flow.........................................................................................................................................5
Table: Balance Sheet....................................................................................................................................6

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TLC Wedding Consultants

1.0 Executive Summary

TLC Wedding Consultants is a full service company that provides complete consulting services
for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated
professionals with many years of event planning experience. TLC is unique in that we give our
clients our undivided attention. We listen to their needs and work with them to create the event
of their dreams. Our clients' wishes become our commands. So whether our client wants a
Western, Tropical, Las Vegas or more traditional wedding, we can help. Our services include
weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to
etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers,
musicians, etc.
1.1 Mission
TLC Wedding Consultants is a full service company that provides complete consulting services
for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated
professionals with many years of event planning experience. TLC is unique in that we give our
clients our undivided attention. We listen to their needs and work with them to create the event
of their dreams. Our clients' wishes become our commands. So whether our client wants a
Western, Tropical, Las Vegas or more traditional wedding or anniversary party, we can help.
Our services include weddings, honeymoons, receptions, anniversary consultations, budget
planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists,
entertainers, musicians, etc.
1.2 Objectives
Whether this is our client's first wedding, a renewal of their vows or their anniversary, we want
every detail of their event to be both a pleasurable and a memorable experience. Therefore we
offer a host of packages and services specifically tailored to the needs of each couple. We are
confident that this business venture will be a success and we estimate that our net income will
increase modestly by the second year.
1.3 Keys to Success
The keys to our success are as follows:
1. Service our clients' needs promptly and efficiently.
2. Maintain an excellent working relationships with vendors such as florists, hair salons and
bridal shops.
3. Maintain a professional image at all times.
2.0 Company Summary
TLC Wedding Consultants is a start-up company that provides wedding, holy union, and
anniversary consulting services to brides, grooms and other family members. We are a fullservice bridal consulting group and our goal is to put the "fun" back into planning a wedding,
holy union or anniversary party. Too many people become overly stressed and frustrated when
planning these wonderful events. We are experienced and professional consultants and will use
our expertise to help create memorable and stress free events for our customers. By doing this,
our clients can sit back and enjoy their event. The result? We create events suited to the
couple's unique style--a true expression of their relationship and individuality as a couple.

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TLC Wedding Consultants

2.1 Company Ownership

This business will start out as a simple proprietorship, owned by its founders, Darla and Micah
Johnson. As the operation grows, the owners will consider re-registering as a limited liability
company or as a corporation, whichever will better suite the future business needs.
2.2 Start-up Summary
The company founders, Darla and Micah Johnson, will handle day-to-day operations of the plan
and will work collaboratively to ensure that this business venture is a success.
We estimate that our start-up costs will be $3,000 (including legal costs, logo design,
advertising, direct mail, and related expenses). An additional $5,000 will be required in the
bank account as an operating capital for the first two months of operation. The start-up costs
are to be financed in equal portions by the owners' personal funds (i.e., Darla and Micah
Johnson are investing $4,000 each).
Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Insurance
Research and development
Expensed equipment
Other
Total Start-up Expenses

$200
$450
$450
$300
$200
$900
$500
$3,000

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$5,000
$0
$0
$5,000

Total Requirements

$8,000

Page 2

TLC Wedding Consultants

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$3,000
$5,000
$8,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$0
$5,000
$0
$5,000
$5,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
Darla Johnson
Micah Johnson
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

$4,000
$4,000
$0
$8,000
($3,000)
$5,000

Total Capital and Liabilities

$5,000

Total Funding

$8,000

Page 3

TLC Wedding Consultants

Chart: Start-up

2.3 Company Locations and Facilities

Initially this will be a home-based business; however, by Year 5, we intend to expand our
facilities into a well-equipped and operational office.
3.0 Services
We are a full-service wedding consultant group and provide the following services: etiquette
advice, event scheduling, discounted invitations and products, vendor confirmation, rehearsal
attendance, supervision of both ceremony and reception setup and budget planning.
4.0 Market Analysis Summary
Nearly $35 billion are spent every year on weddings and receptions. Therefore, professional
wedding consultants are a commodity, not a calamity. TLC Wedding Consultants are full-service
wedding consultants that offer a variety of services to our clients. We pride ourselves on being
professional and courteous at all times and we have packages to suit everyone's needs.
As previously stated, marriage is a billion dollar industry, therefore, just about everyone we
meet is a potential client. However, we mostly advertise to brides, grooms, and family
members.
4.1 Market Segmentation
Although the flash and excitement of impending nuptials can be intoxicating, it can also be
overwhelming. Therefore, we primarily market our services to the people who need them
most--brides and grooms. In 1997, 2.4 million marriages took place in the United States.
According to the Encarta Encyclopedia, the current US marriage rate of nine marriages per
1,000 people is still the highest rate among the industrialized countries. This marriage rate is

Page 4

TLC Wedding Consultants

expected to remain at the same level in the near future. In the Eugene, OR area where TLC
Wedding Consultants plans to operate their business, over 1,500 marriages are registered each
year, which creates a sizable market potential for this line of business.
Another customer segment is represented by the numerous family members and guests
attending weddings, anniversaries, and similar events. This segment requires event preparation
services like gift ideas, etiquette tips, etc.
Besides the wedding arrangements, which TLC Wedding Consultants believe to be their major
client assignments, other events the company will provide services to include corporate
retreats, etiquette training, etc. This customer segment is estimated to have the annual volume
of 1,000 orders in the Eugene, OR area.
Table: Market Analysis

Market Analysis
Potential Customers

Growth

Brides & Grooms

Family Members
Other
Total

5%
5%
5%
5.00%

Year 1

Year 2

Year 3

Year 4

Year 5

1,500
5,000
1,000
7,500

1,575
5,250
1,050
7,875

1,654
5,513
1,103
8,270

1,737
5,789
1,158
8,684

1,824
6,078
1,216
9,118

CAGR
5.01%
5.00%
5.01%
5.00%

Chart: Market Analysis (Pie)

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TLC Wedding Consultants

4.2 Target Market Segment Strategy

TLC Wedding Consultants will offer its services mostly to the brides and grooms, as well as to
the family members. The company will position itself as an experienced provider of wedding
planning services. Unlike most of its competitors, TLC will be offering a full range of services
and thus provide the convenience of one-stop shopping for its clients. This will significantly
reduce the customers' time and efforts preparing for such an important event as a wedding.
Moreover, by utilizing numerous supplier contacts that the company owners have established
and economies of scale, TLC Wedding Consultants will be able to pass on to its customers
sizable cost savings.
4.2.1 Market Needs
The market needs for wedding planning services are strongly shaped by the customers' desire
to have a perfectly planned and executed wedding ceremony. Although both major customer
segments, brides and grooms and family members, plan and budget for the wedding ceremony
as far as a year or more in advance, they often realize that they cannot make all the necessary
preparations by themselves in a cost effective manner. Strongly affected by the established
social values, such customers seek professional advice to ensure that all the important aspects
of the wedding ceremony meet or exceed perceived expectations.
4.3 Service Business Analysis
The wedding services market is fragmented with the overwhelming majority of the incumbents
offering only a limited line of services. There are numerous florists, hair stylists, and caterers to
choose from. However, there are almost no companies that will provide the full range of
services associated with the wedding planning and execution.
4.3.1 Competition and Buying Patterns
Competitive analysis conducted by the company owners has shown that there are 20
companies currently offering some sort of wedding planning services in the Eugene area.
However, the majority of the incumbent competitors offer only a limited line of services like
catering, flower arrangements or gifts. In fact, of these 25 competitors only three offered a
range of services comparable with what TLC Wedding Consultants plan to offer to its customers.
The following is the list of the major competitors with a brief description of their services:

Rent-An-Action offers ceremony preparation, rehearsing and execution services.

Cross & Reeves provide flower and catering arrangements and wedding consulting services.
Lafayette Wedding offers its clients entertaining, catering, floral design and hair styling
services.

The market research has also shown that customers anticipate the complete wedding consulting
services to be expensive and they budget accordingly. In fact, lower prices are very often
associated with poor service quality. By aggregating a complete range of wedding services
under one roof, TLC Wedding Consultants will offer its customers the ease of one-stop
shopping.

Page 6

TLC Wedding Consultants

5.0 Strategy and Implementation Summary

Our strategy is simple: we intend to provide our customers with a wide range of services
custom tailored to their individual needs. Therefore, whether they require a complete package,
or simply consulting on a particular service, we can help.
5.1 Competitive Edge
By aggregating a complete range of wedding services under one roof, TLC Wedding Consultants
will offer its customers the ease of one-stop shopping. The company will leverage its owners'
expertise in planning such events to competitively position itself as a premier provider of
wedding services. Both owners have very strong communication skills that will help develop the
'buzz' about the high quality of the services offered by TLC Wedding Consultants.
5.2 Sales Strategy
The company's sales strategy will be based on the following elements:

Advertising in the Yellow Pages - two inch by three inch ads describing the services will be
placed in the local Yellow Pages.
Placing advertisements in the local press, including The Register Guard, Eugene Weekly, The
Oregon Daily Emerald.
Developing affiliate relationships with other service providers (florists, hair stylists, caterers)
that would receive a percentage of sales to the referred customers.
Word of mouth referrals - generating sales leads in the local community through customer
referrals.

Chart: Sales by Year

Page 7

TLC Wedding Consultants

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$54,200
$25,800
$15,300
$95,300

$65,040
$30,960
$18,360
$114,360

$71,544
$34,056
$20,196
$125,796

Year 1
$0
$0
$0
$0

Year 2
$0
$0
$0
$0

Year 3
$0
$0
$0
$0

Sales
Brides & Grooms
Family Members
Other
Total Sales
Direct Cost of Sales
Row 1
Row 1
Other
Subtotal Direct Cost of Sales

Chart: Sales Monthly

Page 8

TLC Wedding Consultants

6.0 Management Summary

Our wedding consultants are Darla and Micah Johnson. Collaboratively they have planned and
serviced over 150 weddings and receptions. They are knowledgeable about all areas of
planning, decorating, as well as budgeting. Darla has a BS in Communications and a minor in
Interior Decorating. She has been a wedding consultant for five years and became interested in
providing consultant services when she successfully planned her first five weddings for family
and friends. Since then, Darla has received extensive training in wedding planning and her
certification from the National Association of Wedding Consultants and Professional Wedding
Planners. Micah has an Associates Degree in Fashion Design, and, like Darla, she became
interested in becoming a consultant when she successfully planned her first three weddings.
Micah received her certification from the National Association of Wedding Consultants and has
been a wedding planner for three years. Micah enjoys all aspects of planning traditional and
nontraditional weddings.
6.1 Personnel Plan
Initially, TLC Wedding Consultants' personnel will include only the two owners, both of whom
will be working full time. As the personnel plan shows, we expect to hire an additional wedding
consultant in the next year This person will work full time, but will not be included in the
management decisions.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Owner
Other
Total People

$53,100
$0
0

$76,200
$0
0

$85,800
$0
0

Total Payroll

$53,100

$76,200

$85,800

7.0 Financial Plan

The following subtopics represent the financial plan of TLC Wedding Consultants.

Page 9

TLC Wedding Consultants

7.1 Break-even Analysis

The following table and chart summarize our break-even analysis.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$4,804

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

0%
$4,804

Chart: Break-even Analysis

Page 10

TLC Wedding Consultants

7.2 Projected Profit and Loss

Our projected profit and loss is shown in the following table.
Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

$95,300
$0
$0
$0

$114,360
$0
$0
$0

$125,796
$0
$0
$0

$95,300
100.00%

$114,360
100.00%

$125,796
100.00%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$53,100
$4,550
$0
$0
$0
$0
$0
$0
$0

$76,200
$1,000
$0
$0
$0
$0
$0
$0
$0

$85,800
$2,000
$0
$0
$0
$0
$0
$0
$0

Total Operating Expenses

$57,650

$77,200

$87,800

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$37,650
$37,650
$0
$9,443

$37,160
$37,160
$0
$9,290

$37,996
$37,996
$0
$9,657

Net Profit
Net Profit/Sales

$28,208
29.60%

$27,870
24.37%

$28,339
22.53%

Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses

Page 11

TLC Wedding Consultants

Chart: Profit Monthly

Chart: Profit Yearly

Page 12

TLC Wedding Consultants

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

Page 13

TLC Wedding Consultants

7.3 Projected Cash Flow

The following chart and table show our cash flow projections.

Chart: Cash

Page 14

TLC Wedding Consultants

Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$38,120
$45,494
$83,614

$45,744
$66,279
$112,023

$50,318
$74,075
$124,394

$0
$0
$0
$0
$0
$0
$0
$83,614

$0
$0
$0
$0
$0
$0
$0
$112,023

$0
$0
$0
$0
$0
$0
$0
$124,394

Year 1

Year 2

Year 3

$53,100
$12,748
$65,848

$76,200
$10,689
$86,889

$85,800
$11,545
$97,345

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

$0
$0
$0
$0
$0
$0
$0
$65,848

$0
$0
$0
$0
$0
$0
$0
$86,889

$0
$0
$0
$0
$0
$0
$0
$97,345

Net Cash Flow

Cash Balance

$17,766
$22,766

$25,134
$47,900

$27,049
$74,949

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
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

1
10.00%
10.00%
25.42%
0

2
10.00%
10.00%
25.00%
0

3
10.00%
10.00%
25.42%
0

Page 15

TLC Wedding Consultants

7.4 Projected Balance Sheet

Three years of annual totals are presented in the Projected Balance Sheet below. First year
monthly figures are included in the appendix.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$22,766
$11,686
$0
$34,452

$47,900
$14,023
$0
$61,923

$74,949
$15,426
$0
$90,374

$0
$0
$0
$34,452

$0
$0
$0
$61,923

$0
$0
$0
$90,374

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$1,245
$0
$0
$1,245

$846
$0
$0
$846

$958
$0
$0
$958

Long-term Liabilities
Total Liabilities

$0
$1,245

$0
$846

$0
$958

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$8,000
($3,000)
$28,208
$33,208
$34,452

$8,000
$25,208
$27,870
$61,078
$61,923

$8,000
$53,078
$28,339
$89,416
$90,374

Net Worth

$33,207

$61,078

$89,416

Assets
Current Assets
Cash
Accounts Receivable
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

Page 16

TLC Wedding Consultants

7.5 Business Ratios

The following table outlines some of the more important ratios from the Personal
Services industry. The final column, Industry Profile, details specific ratios based on the
industry as it is classified by the Standard Industry Classification (SIC) code, 7299.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

20.00%

10.00%

17.90%

Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

33.92%
0.00%
100.00%
0.00%
100.00%

22.65%
0.00%
100.00%
0.00%
100.00%

17.07%
0.00%
100.00%
0.00%
100.00%

11.10%
37.10%
52.80%
47.20%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

3.61%
0.00%
3.61%
96.39%

1.37%
0.00%
1.37%
98.63%

1.06%
0.00%
1.06%
98.94%

33.90%
28.00%
61.90%
38.10%

100.00%
100.00%
70.37%
3.52%
39.51%

100.00%
100.00%
75.63%
0.87%
32.49%

100.00%
100.00%
77.35%
1.59%
30.20%

100.00%
0.00%
72.70%
2.20%
4.00%

27.68
27.68
3.61%
113.38%
109.28%

73.22
73.22
1.37%
60.84%
60.01%

94.32
94.32
1.06%
42.49%
42.04%

1.81
1.33
61.90%
6.30%
16.60%

Sales Growth
Percent of Total Assets

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

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

29.60%
84.94%

24.37%
45.63%

22.53%
31.69%

n.a
n.a

4.89
57
11.24
27
2.77

4.89
68
12.17
37
1.85

4.89
71
12.17
28
1.39

n.a
n.a
n.a
n.a
n.a

0.04
1.00

0.01
1.00

0.01
1.00

n.a
n.a

$33,207
0.00

$61,078
0.00

$89,416
0.00

n.a
n.a

0.36
4%
18.29
2.87
0.00

0.54
1%
56.64
1.87
0.00

0.72
1%
78.22
1.41
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
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

Page 17

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,900
$1,600
$1,200
$5,700

$3,100
$1,700
$1,200
$6,000

$3,300
$1,800
$1,200
$6,300

$3,500
$1,900
$1,200
$6,600

$4,000
$2,000
$1,200
$7,200

$5,400
$2,100
$1,300
$8,800

$4,600
$2,200
$1,300
$8,100

$5,000
$2,300
$1,300
$8,600

$5,200
$2,400
$1,300
$8,900

$5,500
$2,500
$1,300
$9,300

$5,700
$2,600
$1,400
$9,700

$6,000
$2,700
$1,400
$10,100

Sales
Brides & Grooms
Family Members
Other
Total Sales
Direct Cost of Sales

0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Row 1

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Row 1

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Page 1

Appendix
Table: Personnel

Personnel Plan
Owner
Other
Total People
Total Payroll

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$4,000
$0
0

$5,700
$0
0

$5,700
$0
0

$5,700
$0
0

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$5,700

$5,700

$5,700

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

Plan Month

Other

Month 12

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$5,700

$6,000

$6,300

$6,600

$7,200

$8,800

$8,100

$8,600

$8,900

$9,300

$9,700

$10,100

Direct Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales

Gross Margin

$5,700

$6,000

$6,300

$6,600

$7,200

$8,800

$8,100

$8,600

$8,900

$9,300

$9,700

$10,100

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Payroll

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$5,700

$5,700

$5,700

Sales and Marketing and Other

Expenses
Depreciation

$1,100

$250

$250

$250

$600

$250

$250

$250

$600

$250

$250

$250

Gross Margin %

Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Leased Equipment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Utilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Insurance

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rent

$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
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$5,100

$4,250

$4,250

$4,250

$4,600

$4,250

$4,250

$4,250

$4,600

$5,950

$5,950

$5,950

Profit Before Interest and Taxes

$600

$1,750

$2,050

$2,350

$2,600

$4,550

$3,850

$4,350

$4,300

$3,350

$3,750

$4,150

EBITDA

$600

$1,750

$2,050

$2,350

$2,600

$4,550

$3,850

$4,350

$4,300

$3,350

$3,750

$4,150

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$180

$438

$513

$588

$650

$1,138

$963

$1,088

$1,075

$838

$938

$1,038

Payroll Taxes
Other
Total Operating Expenses

Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

15%

$420

$1,313

$1,538

$1,763

$1,950

$3,413

$2,888

$3,263

$3,225

$2,513

$2,813

$3,113

7.37%

21.88%

24.40%

26.70%

27.08%

38.78%

35.65%

37.94%

36.24%

27.02%

28.99%

30.82%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,280

$2,400

$2,520

$2,640

$2,880

$3,520

$3,240

$3,440

$3,560

$3,720

$3,880

$4,040

$0

$114

$3,426

$3,606

$3,786

$3,972

$4,352

$5,266

$4,870

$5,166

$5,348

$5,588

$2,280

$2,514

$5,946

$6,246

$6,666

$7,492

$7,592

$8,706

$8,430

$8,886

$9,228

$9,628

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$2,280

$2,514

$5,946

$6,246

$6,666

$7,492

$7,592

$8,706

$8,430

$8,886

$9,228

$9,628

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$5,700

$5,700

$5,700

$43

$1,260

$690

$765

$851

$1,255

$1,382

$1,217

$1,349

$1,655

$1,091

$1,191

$4,043

$5,260

$4,690

$4,765

$4,851

$5,255

$5,382

$5,217

$5,349

$7,355

$6,791

$6,891

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$4,043

$5,260

$4,690

$4,765

$4,851

$5,255

$5,382

$5,217

$5,349

$7,355

$6,791

$6,891

($1,763)

($2,746)

$1,256

$1,481

$1,815

$2,237

$2,210

$3,489

$3,081

$1,531

$2,437

$2,737

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

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Net Cash Flow

Page 5

Appendix
Cash Balance

$3,237

$491

$1,747

$3,228

$5,043

$7,280

$9,491

$12,980

$16,061

$17,592

$20,029

$22,766

Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$5,000
$0
$0
$5,000

$3,237
$3,420
$0
$6,657

$491
$6,906
$0
$7,397

$1,747
$7,260
$0
$9,007

$3,228
$7,614
$0
$10,842

$5,043
$8,148
$0
$13,191

$7,280
$9,456
$0
$16,736

$9,491
$9,964
$0
$19,455

$12,980
$9,858
$0
$22,838

$16,061
$10,328
$0
$26,389

$17,592
$10,742
$0
$28,334

$20,029
$11,214
$0
$31,243

$22,766
$11,686
$0
$34,452

$0
$0
$0
$5,000

$0
$0
$0
$6,657

$0
$0
$0
$7,397

$0
$0
$0
$9,007

$0
$0
$0
$10,842

$0
$0
$0
$13,191

$0
$0
$0
$16,736

$0
$0
$0
$19,455

$0
$0
$0
$22,838

$0
$0
$0
$26,389

$0
$0
$0
$28,334

$0
$0
$0
$31,243

$0
$0
$0
$34,452

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Accounts Receivable
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

$0
$0
$0
$0

$1,237
$0
$0
$1,237

$665
$0
$0
$665

$737
$0
$0
$737

$810
$0
$0
$810

$1,208
$0
$0
$1,208

$1,341
$0
$0
$1,341

$1,172
$0
$0
$1,172

$1,293
$0
$0
$1,293

$1,619
$0
$0
$1,619

$1,051
$0
$0
$1,051

$1,148
$0
$0
$1,148

$1,245
$0
$0
$1,245

Long-term Liabilities
Total Liabilities

$0
$0

$0
$1,237

$0
$665

$0
$737

$0
$810

$0
$1,208

$0
$1,341

$0
$1,172

$0
$1,293

$0
$1,619

$0
$1,051

$0
$1,148

$0
$1,245

$8,000
($3,000)
$0
$5,000
$5,000

$8,000
($3,000)
$420
$5,420
$6,657

$8,000
($3,000)
$1,733
$6,733
$7,397

$8,000
($3,000)
$3,270
$8,270
$9,007

$8,000
($3,000)
$5,033
$10,033
$10,842

$8,000
($3,000)
$6,983
$11,983
$13,191

$8,000
($3,000)
$10,395
$15,395
$16,736

$8,000
($3,000)
$13,283
$18,283
$19,455

$8,000
($3,000)
$16,545
$21,545
$22,838

$8,000
($3,000)
$19,770
$24,770
$26,389

$8,000
($3,000)
$22,283
$27,283
$28,334

$8,000
($3,000)
$25,095
$30,095
$31,243

$8,000
($3,000)
$28,208
$33,208
$34,452

$5,000

$5,420

$6,733

$8,270

$10,033

$11,983

$15,395

$18,283

$21,545

$24,770

$27,282

$30,095

$33,207

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 6