Executive Summary

The growing utilization of plastics in industrial and consumer applications, combined

with increased consumer awareness surrounding solid waste recycling, has led to an
increased demand for recycled plastic resins and products. One of the fastest growing
types of collected plastic materials for recycling is polyethylene terephthalate ("PET")
from post-consumer beverage and water bottles. Replay Plastics will capitalize on the
opportunities in the recycled resin and packaging markets through two main divisions:
a Recycling Division and a Packaging Division.
The Company will create a PET cleaning and refining plant located in the western United
States (all 16 major North American PET recycling plants are currently located in the
eastern United States or Canada). Its initial capacity will be 46 million pounds, and it will
utilize post-consumer bottle feed stock presently collected in California, Oregon and
Washington States, which collect over 200 million pounds per year. The Company will be
vertically integrated, and use almost all of its recycled material in its Packaging Division.
Any surplus materials (clean flake) produced will be sold to outside companies. The
extruded sheet may then be sold to manufacturers, who will thermoform it into highvisibility packaging or use it in other high value added manufacturing operations. The
strapping will be sold to companies who ship large packages or pallets, such as the
lumber milling industry. The Company currently has commitments available from
customers to purchase all of the product produced.
MANAGEMENT
Ben Braddock, President, has a 30-year history of experience encompassing all aspects of
Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He has
founded successful ventures in the plastic converting industry, and assisted in the launch
of five plastic converting manufacturing plants. Sam McGuire, Executive VP and COO,
is a graduate Engineer with over 20 years experience in the post-consumer plastics
recycling industry and is the inventor of the primary cleaning & refining technology used
in the process for this project. He has received a patent for his technology and has been

directly involved in over twenty-five major post consumer plastics recycling projects.
Carl R. Smith, CFO, has over 30 years investment and merchant banking and
management experience. He has assisted in raising over $500 million and served as board
member and/or officer in over 40 public and private companies.
FINANCIAL SUMMARY
After a four month start-up period to build the recycling and packaging facilities, buy
equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of
product. Sales will begin in May, and with over $15 Million in sales the first year, we will
see a first year net profit of $2.3 Million. The owners are investing $500,000 each, for a
total of $1.5 Million, and are securing an $800K long-term loan.
The Company is also seeking an investment of $2,700,000 in order to begin operations.
These funds will be used for the purchase of one recycling line and one manufacturing
line, for the set up of the plant facilities and for working capital. An outside investor
providing this amount would receive 48% equity in Replay, and receive an IRR of 69%
from simple dividends alone over the next 5 years. At the end of that period, we will
consider a public offering of stock or a buy-out by a related business. Recent information
on private sales of similar industry companies has indicated that transactions under $25
million have averaged 5.3 times EBITDA, while transactions in the range of $25-250
million have averaged over 7 times EBITDA. Further details can be found in the
Financial Plan, below.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

1.1 Objectives
1.

Sales passing $15 million in first year, $31 million in year 2, growing to $43
million.

2.

Gross margin of 35% or more in first year, 45% in second year then 50% or more.

3.

Net profit of 13% in year one, then exceeding 20% annually starting in year two.
S po ns ored C on te nt

13 Work Dresses For Fall That You Can Throw in the Washer
BY MM.LAFLEUR

1.2 Mission
Replay Plastics is a manufacturing company dedicated to converting waste plastic
materials into commercially viable products, utilizing environmentally friendly recycling
and manufacturing methods. We intend to make enough profit to generate a significant
return for our investors and to finance continued growth and continued development in
quality products. We will also maintain a friendly, fair, and creative work environment,
which respects diversity, new ideas and hard work.

1.3 Keys to Success

The main keys to the success of the Company are:

Secure Supply- Contract for supply of post-consumer bottles and post-industrial

manufacturing waste for PET raw material feed stock.

Marketing - Contractual arrangements for the sale of virtually all initial

production.

Management - Strong senior management with extensive, broad-based, industryspecific experience.

1.4 Potential Risks

Unavailable or scarce raw material feed stock for production

Replay is confident that it has secured good availability of low cost post-consumer
PET bottles (feed stock) derived from post-consumer beverage bottles from
California based recycling collectors, and has back up sources identified.

Technology employed may be unreliable or unproven

Replay will use a proven, patented technology that was developed by one of its
principals for the cleaning and recycling phase. The extrusion division will employ

commercially proven technology - the industry is employing unique recycled PET

technology which is used by prominent eastern U.S. manufacturers of PET
extrusions.
There may not be a market for the Company's products

The Industry-wide experience of the Management Team has allowed them to

identify markets for the Company's products. Their expertise and reputations have
allowed them to obtain commitments for virtually all of the planned initial
production.

The location may not be near enough to markets

The markets that have been identified are primarily in the western U.S., which will
provide a distinct advantage to the Company because of freight costs and delivery
timing.

The Company may not be able to attract top management

The Company has assembled a world class management team with proven ability
and direct experience in the Company's market segments.

Company may not meet environmental standards

This environmentally-favorable venture provides for the development of

technically feasible and economically viable solutions to PET plastic beverage bottle
recycling, as well as environmentally aware in-house re-use practices which filter
and return nearly all of the process water to the production lines.

The Company may not be able to sell all of its production capability

Through the Senior Management's industry-wide contacts, the Company has

identified potential customers and received commitments for all of the production
potential of the initial facility.

Company Summary

The Company will capitalize on the opportunities in the recycled resin and packaging
markets through two main divisions: a Recycling Division and a Packaging Division.
Recycling Division
Using a patented process, the Company will create a PET cleaning and refining plant
located in the western United States; we have chosen this region because all 16 major
North American PET recycling plants are currently located in the eastern United States or
Canada, despite western states' favorable recycling attitudes among consumers. Its initial
annual capacity will be 46 million pounds and it will utilize bottle feed stock from
California, Oregon and Washington States, which collect over 200,000,000 pounds per
year. The Company will become totally vertically integrated, and use all or almost all of
its recycled material in its Packaging Division. Any surplus material produced will be
sold to outside companies.
Packaging Division
We will create a plant (actual facilities to be shared with the Recycling Division) to
manufacture extruded plastic roll stock sheet or high-strength strapping, employing stateof-the-art technology developed to utilize recycled PET resin.
The extruded sheet will be primarily sold to thermoformers who will convert it into high
visibility packaging, as well as laminators and fabricators. The strapping will be sold to
commercial users for use as package or pallet strapping.
The Company currently has commitments from customers to purchase all of
the initial production capacity. Excess flake will be sold to outside customers.

2.1 Company Ownership

Replay Plastics is owned by the initial founders, B. Braddock, S. McGuire and C. Smith,
who are the proposed three executives of the operating entity. The plan was conceived

and developed by these individuals, with the intent to apply their extensive experience
and contacts in the industry to building a successful profitable corporation.
S po n s or e d Co n t en t

#1 Project Management App in Google Apps

Marketplace
BY MAVENLINK

2.1.1 Potential Conflict

Our COO, Mr. Sam McGuire, the inventor and patent holder of the recycling process to
be used by the Company, is a principal in Company A of Chicago, IL. For many years,
Company has designed, manufactured and assembled plastic recycling equipment, and
has given us quotes on meeting our needs in this area.
After a thorough investigation, Replay has found that Company A is able to source or
supply the required equipment at considerably lower cost than any other company from
which a quote was available. Mr. McGuire has disclosed that Company A has included a
smaller than normal margin in their quote on goods they will manufacture, to cover
overhead, contingency and profit which might result in a small benefit to him. They have
agreed to source all of the equipment possible with no added margin.
Replay has concluded that the savings available outweigh any other consideration and
that we will purchase the cleaning and refining equipment from Company A.

2.2 Start-up Summary

Our start-up expenses are budgeted at $210,000, which is mostly for on-site contractor
services during facility preparation. $50,000 has been set aside for legal and accounting,
$25,000 for special consulting that may be required during start up and $50,000 each for
local engineering and lab equipment and supplies. $30,000 has been set aside as a
contingency for the start up period.

Our largest Start-up Requirement is the building of the recycling and extrusion facility.
Its final value at completion is listed below as a long-term asset of $3,620,000 (excluding
expensed items like consultants and engineering listed above). Aside from the building
itself, we need $25,000 in machinery and fixtures, $500,000 of inventory (plastic bottle
feed stock) and cash to cover us through the initial year.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

START-UP FUNDING

Start-up Expenses to Fund

$210,000

Start-up Assets to Fund

TOTAL FUNDING REQUIRED

$4,790,000

$5,000,000

Assets

Non-cash Assets from Start-up

Cash Requirements from Start-up

Additional Cash Raised

Cash Balance on Starting Date

TOTAL ASSETS

$4,145,000

$645,000

$0

$645,000

$4,790,000

Liabilities and Capital

Liabilities

Current Borrowing

Long-term Liabilities

$0

$800,000

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

TOTAL LIABILITIES

$800,000

Capital

Planned Investment

Founders

$1,500,000

Investor

$2,700,000

Additional Investment Requirement

TOTAL PLANNED INVESTMENT

Loss at Start-up (Start-up Expenses)

$0

$4,200,000

($210,000)

TOTAL CAPITAL

$3,990,000

TOTAL CAPITAL AND LIABILITIES

$4,790,000

Total Funding

$5,000,000

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

START-UP

Requirements

Start-up Expenses

Legal & Accounting

Stationery etc.

$50,000

$5,000

Consultants

$25,000

Lab Equipment

$50,000

Local Engineering

$50,000

Misc Start up

$30,000

Other

TOTAL START-UP EXPENSES

$0

$210,000

Start-up Assets

Cash Required

$645,000

Start-up Inventory

$500,000

Other Current Assets

Long-term Assets

TOTAL ASSETS

Total Requirements

$25,000

$3,620,000

$4,790,000

$5,000,000

Products
Replay Plastics will utilize two processes in the same facility to produce:

Cleaned and recycled plastic PET flake (RPET), recovered from post-consumer
beverage bottles and manufacturing waste produced by its sheet customers

Extruded roll stock sheet PET.

Extruded PET high-strength strapping for securing large packages or pallet loads;
each using 100% RPET produced in-house

3.1 Product Description

Roll stock sheet will be sold to custom thermoformers primarily to be used to
produce high-visibility packaging. It will also be sold to manufacturers of laminates and
fabricated plastic products.
High strength PET packaging strapping is used to secure packages or pallets in such
industries as lumber milling and corrugated and other paper production.
Both products will be extruded from post-consumer polyethylene terephthalate (PET)
bottles. The recycling programs in California, Washington and Oregon collect in excess
of 200,000,000 pounds of PET bottles per annum. Replay' initial capacity will be
46,000,000 pounds.
Using a patented process, Replay will clean and refine the PET material from the postconsumer bottle stock and post-industrial manufacturing waste. The PET flake resin
produced will be extruded into roll stock sheet or high-strength strapping.
Although the Company expects to convert all of its bottle feed stock into extruded
products, any surplus flake will be sold to outside manufacturers.

S po ns ored C on te nt

Create an Easy to Maintain, Professional Website.

BY BLUEHOST

3.2 Competitive Comparison

While quality and delivery are important factors to our potential clients, price is most
often the determining factor in a buying decision. Good-quality packaging products
manufactured from recycled (less expensive) resins, as close as practical to the end
customer's operations, will be most competitive and achieve a significant market
share. These factors have helped to determine the business parameters of Replay Plastics.

3.3 Sourcing
In excess of 200,000,000 pounds of post-consumer PET beverage bottles are collected
and available as feed stock for manufacturers who can re-process this material into
commercial products. The Company has excellent relations with the firms and
associations that collect and distribute these materials and has been assured that its
requirements will be available for the foreseeable future.
The Company has entered negotiations with a California based source of post-consumer
bottles and is confident that sufficient volumes are available on a contract basis from this
source to satisfy its requirements. In addition, the Company intends to purchase
production waste from its sheet customers and blend it into its feed stock.
Currently, the majority of the post-consumer PET bottles collected in California, Oregon
and Washington are exported to China. The Chinese have absorbed the amounts surplus
to the use in North America. Their interest has kept the industry in the position of being
able to maintain a steady price range for this bottle stock. A significant percentage of all
sales of such bottle stock are managed by Plastics Recycling Corporation of California
(PRCC), an industry funded marketing agency which operates similarly to a co-operative.
They accept bids from potential buyers on behalf of the firms which act as

"consolidators," which accumulate stocks from the smaller, individual bottle-recycling

depots. Some amount of the available stocks are regularly bought by recyclers in eastern
North America who focus on the carpet manufacturers who use RPET resin in their
process, but the high cost of transport from the western U.S. makes eastern sources more
desirable.
Replay has a good relationship with Company B, one of the larger consolidators in
California. Company B has indicated a desire to contract to supply Replay with all of its
raw material needs. They prefer to deal with a local consumer such as Replay, rather than
the uncertainty and extra preparation requirements of the export market.
There are other sources of post-consumer feed stock known to Replay, and we are
confident that we will have sufficient materials available for our production needs.

3.4 Technology
Sam McGuire, a key member of our Management team, is one of the original innovators
of cleaning and refining technology for post-consumer PET, and we will be utilizing his
patented process in our recycling facility. Sam has worked in the establishment and
operation of facilities employing similar technologies over the last several years.
On the manufacturing side, Management has been an integral part of the advancement of
industry practices over the last twenty years or so, and includes in their knowledge base
most, if not all, of the state-of-the-art available equipment and manufacturing techniques.

Market Analysis Summary

Strong demand for recycled plastics is working in the industry's favor. Major users of
plastic packaging, apparently responding to consumer desires, have begun incorporating
at least some recycled plastic content in their products as part of the growing interest in
recycling. Recycled resin demand is on the rise as prices for the two major recycled

resins, PET and HDPE, continue to hold value or appreciate against their virgin
counterparts.
In volume, PET is currently the number one recycled resin. Supply of recycled PET is in
excess of 800 million pounds per year. This figure is expected to grow, reaching over 1
billion pounds during the next few years. The plastics industry has developed new
markets and applications for recycled resins from both post-consumer and post-industrial
sources.
PET leads the recycled recovered resins as the most visible and valuable, and its use is
increasing. Of the total 3.7 billion pounds of PET consumed in 1997, just 16% was from
recycled sources. Of the more than 90 billion pounds of plastics produced annually in the
United States, less than 5% is from recycled sources. Plastics, after aluminium, represent
the second highest value material in the waste stream and have the highest projected
growth rate.
Markets and uses for recycled plastics are rapidly expanding. Plastic containers are being
collected at the curb for recycling in nearly 500 communities, representing more than 4
million households. U.S. demand for recycled plastic will continue to expand and new
markets will develop as technologies permit the efficient segregation and reprocessing of
high-purity resins. Improved quality of resins, environmental issues and higher prices for
virgin resin will contribute to growth.
Packaging is expected to be the largest market segment for recycled plastics, with sheet
and lumber following. Surveys indicate that Americans are increasingly willing to collect
and separate discarded packages, foregoing a degree of convenience to make products
more disposable, and even paying a premium for a recycled item.
Increasingly, communities are refusing to consider incineration until every effort is made
first to recycle; public sentiment is strongly in favor of products that can be recycled or
are made of recycled materials. In recent years, the household recycling rate of PET

bottles has more than doubled to 30% of all PET soft drink bottles sold. In fact, PET's
recycling rate is the fastest growing among all beverage containers. The future of PET
recycling is even brighter than it has been in the past. PET intrinsic scrap value is second
only to aluminium among container materials. The plastics industry has launched a
research and development program aimed at increasing PET recycling. According to the
U.S. Environmental Protection Agency (EPA), plastic soft drink bottles account for
approximately 2% of the solid waste discarded in America. The EPA has set a national
goal to recycle 25% of the municipal solid waste stream and the industry is committed to
achieving its share of that important goal.
The recycling industry intends to accelerate the rate of plastic recycling as part of its
commitment to develop solutions to the solid waste problem. Industry analysts have
projected that 50% of all PET containers will be recycled by the year 2007. More plastics
will be recycled annually than any other recyclable material. Replay believes a significant
answer to America's waste problem lies in creating high value, recycled thermoformable
sheet and other extruded products for the packaging market.
Although more than 200 million pounds of PET post-consumer materials are collected in
the western United States each year, there is presently no local cleaning and refining
facility converting the bottles into resins suitable for re-manufacturing.
Originally, recycled PET (RPET) was used primarily in the carpet fiber industry, which
is located along the eastern seaboard. The early development of the RPET industry was
therefore focused in the eastern USA, with eastern states adopting the first bottle deposit
laws that resulted in collection of post-consumer bottles that can be recycled. Recently,
California, Oregon and Washington have adopted bottle deposit programs, and
accumulation of recyclable materials in those states has begun. With all of the cleaning
and recycling plants and the majority of consumers traditionally located in the eastern
part of the country, development of consumers of recycled flake and down-line products,
such as film and sheet, has been slow to develop in the West. A strong demand for postconsumer bottles from Asia has prevented the buildup of inventories and reduced the
pressure for the collection industry to find or develop western markets.

There is currently no independent extrusion plant of recycled polyterephthalate (PET)

sheet in the western United States or Canada that services the roll stock requirements of
major custom and proprietary formers. With the development of the recycling industry
for PET starting in the eastern part of the country, and the preponderance of consumers of
sheet there as well, development of independent extrusion facilities using RPET has been
slow to develop. It appears that in order to attract such companies, local sources of RPET
would have to available. While there are customers in the West for the products,
contracting a supply and shipping it from the East makes the venture unattractive.
Our founders recognize that an opportunity exists and propose a vertically
integrated conversion facility that will employ state-of-the-art technologies to produce
extruded sheet and high strength strapping from 100% recycled PET post-consumer
bottle stock, cleaned and refined in our own facility.

4.1 Target Market Segment Strategy

The Company has chosen its target markets because recycled PET (RPET) is in high
demand as flake resin by converters, as roll stock sheet used to produce high visibility
packaging and as high strength strapping for the lumber industry. Sales are pricesensitive, so that proximity to markets and feed stock source provide a competitive edge.
Replay Plastics identified an opportunity to take advantage of both circumstances in the
western United States.
RPET Flake
Total market demand is reported as 1.2 billion pounds per year. Since only 800
million pounds are processed in the USA, consumers are forced to look at wide spec
virgin PET (virgin resin that is outside of spec but still usable) which is normally sold at a
discount to virgin prices, but still higher than recycled (RPET) pricing. Some
manufacturers are also forced to import materials from Mexico, India and South America.
Some converters are being forced to use more expensive virgin resin.

The current pricing for virgin resin is $0.65-0.73 per lb. and $0.42-.53 for RPET flake.
The spread between the two has traditionally been maintained at approximately $0.20 per
lb.
PET Film & Sheet
The total reported market of extruded film and sheet is 872 million pounds, of
which identified industry usage of RPET is 160 million pounds.
The reported market demand (to replace virgin PS, PVC and PET) if RPET was available
is estimated at 1 billion pounds.
Current pricing for RPET sheet is $0.70-0.79 per lb.
RPET Strapping
The total reported domestic plastic strapping market is 240 million pounds. Of this
market, industry usage of virgin polypropylene is 132 million pounds and of PET is 108
million pounds.
It is generally accepted in the industry that less expensive strapping made from RPET
could not only take over the polypropylene strapping market, but convert as much of the
much larger and more expensive steel strapping market as RPET strapping was available.
Current pricing for RPET strapping is $0.90 -1.08 per lb.
S po ns ored C on te nt

Your Projects. Your People. Your Profits. All In One Place.

BY MAVENLINK

4.2 Market Segmentation

The primary market can be broken down as follows.
Consumers of PET in:

California: 62

Oregon: 8

Washington: 9

Consumers of HDPE in:

California: 73
Oregon: 10
Washington: 12

All information is based on industry research,and data provided by the American Plastics
Council.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

MARKET ANALYSIS

YEAR
1

Potential
Customers

YEAR
2

YEAR
3

YEAR
4

YEAR
5

Growt
h

CAGR

Western PET
Buyers

1%

79

80

81

82

83

1.24%

Western HDPE
Buyers

1%

95

95

95

95

95

0.00%

0.57%

174

175

176

177

178

0.57%

Total

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

4.3 Industry Analysis

Currently there is no direct competition in the western United States for either of the two
divisions of the Company. Any production in the trading area remains captive and not
available to our target market.
The ability of the Company to obtain a source of post-consumer bottle stock is an integral
component of the strategy to vertically integrate operations and manufacture products in
demand by western consuming industries. Without the cleaning and refining division, it
would be difficult to source sufficient RPET flake resin at costs that would allow the
Company to be competitive.

4.3.1 Barriers to Entry

Limited Supply of raw material
Recycled PET (RPET) resins are in high demand, and demand is currently undersupplied. Many manufacturers are delaying expansion because of uncertainty of supply.
Entrants would have to consider sourcing post-consumer or post-industrial waste and
clean and refine it rather than attempting to purchase flake on the open market. Even at
that, there is not an over-abundance of post-consumer or post industrial material in the
marketplace.
Equipment costs are high and industry specific, resulting in a high exit cost.
Because of the scarcity of RPET flake, entrants may be forced to establish cleaning and
refining facilities for post-consumer bottles. The equipment required is costly and very
industry specific. It would not easily be re-sold as a system.
There is a market for used extrusion equipment, which normally sees 60-70% of new
value being realized.
Vertical integration is an important consideration and difficult to accomplish
successfully.

Because of the scarcity of RPET resin, and to maximize profit potential, entrants must
consider a two-stage production facility. Cleaning and refining post-consumer bottles and
extruding the resulting flake into commercial products requires a management team such
as Replay has, with a broad range of expertise, experience, industry contacts and
knowledge in both areas.
Firm contracts for supply and sales.
Replay Management's industry contacts will allow us to secure contracts for both supply
of feed stock and sale of finished goods.
Freight is a major cost of operations; proximity to source of supply and markets is
crucial.
Hauling plastic materials is expensive so entrants will have to consider establishing
facilities close to materials and markets. Entrants with existing operations would have to
consider new separate facilities in many cases, reducing economies of scale and making
management more difficult.

4.3.2 Competition and Buying Patterns

There has been a strong demand (sellers' market) for our products for several years.
Traditional buying patterns in this industry are based on quality, price, reputation of
manufacturer, freight costs, delivery times and proximity to markets. During such a
sellers' market, buying patterns are often more influenced by availability.

4.3.3 Main Competitors

Currently in the western United States, there is no direct competition for cleaning and
refining post-consumer or post-industrial PET. Nor is there any non-captive extrusion of
roll stock sheet.
The extruded sheet required by thermoformers is currently supplied by:

Advance Extrusion, Becker, MN

Kama, Pittsburgh, PA

Plasti-Shell Packaging, Gonzales, LA

Petco, Montreal, Canada

Klockner, VA

In a news release dated September 10, 2004, Itec Environmental Group, Inc. announced
their intention to open a PET and High Density Polyethelene (HDPE) recycling operation
in Riverbank, CA (east of San Francisco). The news release states that the Company's
new and yet unproven technology lets it work with bottle streams that others have to
reject as too dirty. This Company is familiar to our Management, and is not considered a
significant factor in any of our markets.

Strategy and Implementation Summary

Replay Plastics will utilize its strong industry-wide relationships to obtain significant
contracts for its production. Some business will be obtained directly by Management,
while some amount of product will be sold by sales agents well known to the Company
who have proven their effectiveness.
These industry-wide relationships will also provide the Company the ability to secure
contracts for the supply of its raw material at competitive pricing.

5.1 Value Proposition

In a vertically integrated environment, Replay will apply state-of-the-art recycling and
extrusion technology managed by decades of industry specific expertise to create a
competitive advantage for its clients. These processes will produce clean, cost-efficient,
recycled raw material for manufacturers of thermoform, laminate and other high value-

added products, and high strength packaging strapping for shippers of large products and
pallets, thereby reducing costs and creating a clear pricing edge among their competitors.
To develop good business strategies, perform a SWOT analysis of your business. It's
easy with our free guide and template. Learn how to perform a SWOT analysis
S po ns ored C on te nt

#1 Helpdesk Ticket System

BY FRESHDESK

5.2 Competitive Edge

Replay Plastics' competitive edge rests with its proximity to its target markets, as well
as the industry knowledge, reputation and contacts of its senior management. Their many
years of direct experience have led them to identify this unique opportunity and put
together the technology and sources to take advantage of it. Their reputation in the
specific market segment will result in the achievement of long-term commitments for our
production.

5.3 Marketing Strategy

The Company has chosen to focus on the production of plastic packaging materials from
recycled post-consumer beverage bottles. Because of the industry experience and
expertise of the management, we have identified a significant available market in the
western United States. All of our initial marketing strategy will be to secure contracts in
that segment, and after reaching full planned capacity, look to grow in concert with that
segment and related markets. We see little need at present for further market research and
development, and will focus on continually updating our production technology in an
effort to remain in the forefront of our chosen marketplace.

5.4 Sales Strategy

Because of the unique extensive experience and reputation of our Management in the
Company's chosen industry segment, we are able to identify all of the potential customers
for each of the products we will produce in our facility. While most of the production of
flake is ultimately intended to be used internally, we are confident that any developed
surplus will be sold immediately.
All of the production of the initial facility is committed for, and should there be any
capacity not consumed by these commitments, once again we are confident that the
contacts of our senior management will allow for the rapid sale of any such capacity.
If the Company grows faster than its prime customer base, additional capacity may be
developed. Mr. Braddock's many years of sales and sales development will be utilized to
identify additional customers and/or sales agents currently servicing the Company's target
markets.
To market the products, the Company will use a number of sales agents/brokers well
known to the founders from business transactions over more than 10 years. All of these
seasoned veterans have a customer base of their own, having developed successful
relationships with their clientele over the years. Their customer base is currently
demanding product so they can expand upon their current base. Of course, they will
expand that to new customers when product is available from Replay. Those agents are
located in:

Jacksonville, Florida

Houston, Texas

Chicago, Illinois

Louisville, Kentucky

Los Angeles, California

Vancouver, British Columbia

As stated, Ben Braddock, himself, is a strong marketing individual. Over his 30 years of
experience in the packaging and converting industry he has developed relationships with
a number of clients that are buyers of packaging materials. He has consulted to many and
has been personally responsible for sourcing raw materials and converted sheet for
customers in this industry.
Custom formers, extruders, laminators, and end user markets will be called upon by Ben
and the sales agent team to promote and generate demand from those that buy and use
RPET packaging materials.

5.4.1 Sales Forecast

The sales forecast is based on the assumption that we will sell all of the highest
value extruded products that we can produce. In addition, it is expected that there will be
amounts of refined flake surplus to our extrusion capacity. This flake will be sold to
other manufacturing companies. There is a continuing strong demand for flake and
extruded products made from recycled PET.
Cost of raw materials includes 24% allowance for price variation and 15% nonrecoverable waste.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

SALES FORECAST

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Recycled
Flake
PET

20,533,600

12,833,900

Extruded
Roll
Stock
Sheet

8,341,400

28,874,600

30,800,000

30,800,000

30,800,000

Extruded
Strappin
g

4,491,500

15,400,000

15,400,000

15,400,000

28,875,000

46,200,000

46,200,000

46,200,000

46,200,000

Unit
Sales

TOTAL
UNIT
SALES

Unit
Prices

Year 1

Year 2

Year 3

Year 4

Year 5

Recycled
Flake
PET

$0.45

$0.47

$0.50

$0.52

$0.55

Extruded
Roll
Stock
Sheet

$0.70

$0.74

$0.77

$0.81

$0.85

Extruded
Strappin
g

$0.00

$0.95

$1.00

$1.05

$1.10

Recycled
Flake
PET

$9,240,120

$6,064,018

$0

$0

$0

Extruded
Roll
Stock
Sheet

$5,838,980

$21,222,831

$23,769,900

$24,958,395

$26,206,315

Extruded
Strappin
g

$0

$4,266,925

$15,400,000

$16,170,000

$16,940,000

Sales

TOTAL
SALES

$15,079,10
0

$31,553,77
4

$39,169,90
0

$41,128,39
5

$43,146,31
5

Direct
Unit
Costs

Year 1

Year 2

Year 3

Year 4

Year 5

Recycled
Flake
PET

$0.27

$0.28

$0.29

$0.31

$0.32

Extruded
Roll
Stock
Sheet

$0.27

$0.28

$0.29

$0.31

$0.32

Extruded
Strappin
g

$0.00

$0.28

$0.30

$0.31

$0.33

Recycled
Flake
PET

$5,441,404

$3,571,033

$0

$0

$0

Extruded
Roll
Stock
Sheet

$2,210,471

$8,034,357

$8,998,605

$9,448,535

$9,920,962

Direct
Cost of
Sales

Extruded
Strappin
g

Subtotal
Direct
Cost of
Sales

$0

$1,257,620

$4,620,000

$4,774,000

$5,082,000

$7,651,875

$12,863,010

$13,618,605

$14,222,535

$15,002,962

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

5.5 Milestones
Because the Company is a start-up, our milestones will surround the establishment of
continuing facilities, confirmation of sourcing and sales contracts, equipment acquisition
and installation, staffing and training, and initiating production.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

MILESTONES

Milestone

Start Date

End Date

Budget

Manager

Department

Order Equipment

1/2/2005

1/31/200
5

n/a

Senior
Mgmnt

n/a

Secure Location

1/2/2005

1/31/200
5

n/a

Senior
Mgmnt

n/a

Secure
Orders/Contracts

1/2/2005

1/31/200
5

n/a

Senior
Mgmnt

n/a

Site Preparation

2/1/2005

2/25/200
5

n/a

Senior
Mgmnt

n/a

Hire Plant Manager

2/28/200
5

3/15/200
5

n/a

Senior
Mgmnt

n/a

Receive Equipment

2/28/200
5

3/31/200
5

n/a

Senior
Mgmnt

n/a

Hire & Train Skilled

Labor

4/15/200
5

4/30/200
5

n/a

Senior
Mgmnt

n/a

Begin Production

5/1/2005

5/1/2005

$0

Senior
Mgmnt

Department

Hire & Train

Unskilled Labor

4/30/200
5

5/15/200
5

n/a

Senior
Mgmnt

n/a

Install Equipment

4/1/2005

4/30/200
5

n/a

Senior
Mgmnt

n/a

Totals

Management Summary

$0

The three founders form the senior management group. Several qualified candidates have
been identified for the position of plant manager. The balance of the employees will be
hired and trained during the equipment purchase and installation phase (first five months
after funding). Because the sales management function will be the responsibility of Ben
Braddock, with projected use of familiar sales agents, there are no plans for additional
inside sales people or managers.
Ben Braddock and Sam McGuire have agreed to remain with the Company for the
foreseeable future. In addition to their respective duties, they will each become totally
familiar with all aspects of Senior Management, and be in a position to take over for each
other should the need arise.
Carl Smith has agreed to remain with the Company for a minimum of two years, and will
assume the responsibility of locating and training a replacement before the end of his
employment.

6.1 Organizational Structure

The Organizational Structure of Replay Plastics is planned to be a simple and traditional
one. All recycling and manufacturing operations will report to the COO. All
administrative and finance functions will report to the CFO. Both the COO and CFO will
report to the CEO, who will also have the responsibility for Sales and Marketing.
S po n s or e d Co n t en t

You will love FreshDesk. It's fast, it's easy and free. 3
users free forever.
BY FRESHDESK

6.2 Management Team

Ben Braddock, President and CEO, has a 30-year history of experience encompassing
all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture

Development. He founded Company C, a multi-cavity plastic injection molder container

facility, and Company D, a solid phase pressure forming polypropylene (PP) food
container facility. He also assisted in the launch of five plastic converting manufacturing
plants.
For the last fifteen years Ben has been an independent consultant in the plastics industry.
His clients have included [proprietary and confidential information removed].
Sam McGuire, Executive VP and COO, is a graduate engineer with over 20 years
experience in the post-consumer plastics recycling industry and is the inventor of the
primary recycling technology used in the process for this project. He has received a
patent for his recycling technologies and has been directly involved in over twenty-five
major post consumer plastics recycling projects. Sam has played a major role in the
design and manufacture of specific recycling equipment as well as playing a key
management role in the design, construction, installation, commissioning and operation
of several independent recycling businesses.
In 1998, Sam sold his interests in a medical waste treatment and plastics recycling
business to a public company (Company A) based in Chicago. Since that time he has
served as Vice President, International Business Development and Engineering for this
Company. His primary responsibilities over the past five years have included: the rollout
of the corporate business model to international countries; the licensing of intellectual
property to joint venture companies; managing the design and construction of medical
waste treatment and plastics recycling facilities and continuing business and technical
support to the resulting joint venture businesses throughout the world.
In the past five years, Sam has successfully completed projects in Brazil, Argentina,
South Africa, Japan and Australia totaling over $100 Million in investment.
Carl R. Smith, CFO, has over 30 years of investment, merchant banking and
management experience. He has assisted in raising over $500 million and served as board
member and/or officer in over 40 public and private companies.

Carl is the former CEO of E Corporation, Ltd., a company manufacturing plastic

injection molded products. Prior to 1993 he was a partner in two independent investment
banking firms, Company F and Company G. During his time at Company G, more than
$450 million was raised for client companies, and the assets grew to $50 million. Prior to
forming Company G, Carl was a principal and manager of several operating companies in
industries such as plastics, mining and oil and gas exploration.

6.3 Personnel Plan

The Company expects to have a head count of 53 (6 part-time) by the end of year one, 59
(9 part-time) in year two, and 73 (15 part-time) in year three through five at full
capacity. We have budgeted for labor rates ranging from $10 per hour for unskilled labor
to $18 per hour for machine operators and Maintenance Technicians. We expect to pay
$20 per hour to supervisors. We have also included 30% burden for benefits and
employee costs, as well as a 25% bonus potential for all plant employees.

PERSONNEL PLAN

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Shift
Supervisor

$129,169

$210,000

$220,500

$231,525

$243,101

Maintainence
Techs

$116,664

$183,750

$192,938

$202,585

$212,714

Production
Personnel

Skilled
Recycle Plant
Labor

$350,000

$551,250

$578,813

$607,754

$638,141

Unskilled
Recycle Plant
Labor

$164,066

$295,513

$310,078

$325,582

$341,861

Extruder
Operator (full
time)

$87,504

$206,719

$289,406

$303,876

$319,070

Extruder
Operator
(part time)

$25,522

$68,906

$96,469

$101,292

$106,357

Production
Assistant (full
time)

$62,504

$147,656

$206,719

$217,055

$227,908

Production
Assistant
(part time)

$18,228

$49,219

$68,906

$72,351

$75,969

$0

$0

$0

$0

$0

$953,657

$1,713,013

$1,963,829

$2,062,020

$2,165,121

Name or Title
or Group

SUBTOTAL

Sales and
Marketing
Personnel

commissionbasis - see
P&L

$0

$0

$0

$0

$0

Name or Title
or Group

$0

$0

$0

$0

$0

SUBTOTAL

$0

$0

$0

$0

$0

President

$72,000

$110,000

$121,000

$133,100

$146,410

Vice Pres COO

$67,200

$100,000

$110,000

$121,000

$133,100

CFO

$67,200

$100,000

$110,000

$121,000

$133,100

Plant Manager

$63,000

$88,200

$92,610

$97,241

$102,103

Accountant

$29,200

$45,938

$48,235

$50,647

$53,179

Clerk

$20,800

$32,813

$34,454

$36,176

$37,985

General and
Administrative
Personnel

Clerk

$15,600

$32,813

$34,454

$36,176

$37,985

Clerk

$0

$32,813

$34,454

$36,176

$37,985

$27,200

$42,840

$44,982

$47,231

$49,593

$362,200

$585,417

$630,189

$678,747

$731,440

Name or title

$0

$0

$0

$0

$0

Name or title

$0

$0

$0

$0

$0

SUBTOTAL

$0

$0

$0

$0

$0

TOTAL
PEOPLE

51

57

69

69

69

$1,315,85
7

$2,298,430

$2,594,018

$2,740,767

$2,896,561

Shipper
Receiver

SUBTOTAL

Other
Personnel

Total Payroll

Financial Plan
Once the equipment arrives and is installed, production ramps up rather quickly, with
sales beginning in the sixth month after funding. Positive cash flow and net profit are
achieved within the first year.

7.1 Important Assumptions

Replay has allowed for 30 days to collect receivables due to knowledge and
experience with customers in the industry.

Inventory turnover is predicted at 12 times, which is extremely conservative.

The personnel burden includes contribution by the Company to employee health

care.

We have allowed for Accounts Receivable financing of 70% at an interest rate of

12% per annum.

It is assumed that additional extrusion lines will be added in the second year, with
down payments of 33% at time of order and balance paid at time of shipment (see
Cash Flow for details). These will be purchased as long-term assets out of the cash
flows of the business.

General annual growth rates of 5% have been assumed on all sales prices and
material and labor costs.

GENERAL ASSUMPTIONS

Plan Month

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Current Interest Rate

Long-term Interest
Rate

Tax Rate

12.00%

12.00%

12.00%

12.00%

12.00%

8.00%

8.00%

8.00%

8.00%

8.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Other

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

S po ns ored C on te nt

Your Projects. Your People. Your Profits. All In One Place.

BY MAVENLINK

7.2 Break-even Analysis

With fixed costs of about $184,000 per month in the first year, and variable unit costs at
roughly 52% of prices, we need to produce and sell 715,963 units per month to break
even. We will far exceed the break-even point in our first full month of sales.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

BREAK-EVEN ANALYSIS

Monthly Units Break-even

Monthly Revenue Break-even

Assumptions:

715,962

$373,890

Average Per-Unit Revenue

$0.52

Average Per-Unit Variable Cost

$0.27

Estimated Monthly Fixed Cost

$184,160

7.3 Projected Profit and Loss

The rapid growth of sales in year one and two is due primarily to increase in capacity
over that period, as we add new extrusion equipment. The plan assumes the sale of all
production capacity as it is added. The favorable gross margin projections are in part due
to the vertical integration of the two processes. Our Managements' ability to handle all
initial sales and marketing allows us to predict virtually no sales or marketing expense.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

PRO FORMA PROFIT AND LOSS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Sales

$15,079,1
00

$31,553,77
4

$39,169,90
0

$41,128,39
5

$43,146,31
5

Direct Cost of
Sales

$7,651,87
5

$12,863,01
0

$13,618,60
5

$14,222,53
5

$15,002,96
2

Production Payroll

$953,657

$1,713,013

$1,963,829

$2,062,020

$2,165,121

Packaging

$150,791

$315,538

$391,699

$411,284

$431,463

Sales Commission

$733,102

$1,501,893

$1,871,678

$1,965,261

$2,063,524

TOTAL COST OF
SALES

$9,489,4
25

$16,393,4
54

$17,845,8
11

$18,661,1
00

$19,663,0
71

Gross Margin

Gross Margin %

$5,589,67
6

$15,160,32
0

$21,324,09
0

$22,467,29
5

$23,483,24
4

37.07%

48.05%

54.44%

54.63%

54.43%

$0

$0

$0

$0

$0

$6,000

$50,000

$100,000

$150,000

$200,000

$0

$0

$0

$0

$0

$6,000

$50,000

$100,000

$150,000

$200,000

0.04%

0.16%

0.26%

0.36%

0.46%

Operating
Expenses

Sales and
Marketing
Expenses

Sales and
Marketing Payroll

Advertising/Promo
tion

Travel

TOTAL SALES
AND MARKETING
EXPENSES

Sales and
Marketing %

General and
Administrative
Expenses

General and
Administrative
Payroll

$362,200

$585,417

$630,189

$678,747

$731,440

$0

$0

$0

$0

$0

Depreciation

$241,740

$405,992

$562,908

$562,908

$562,908

Payroll Burden

$394,757

$689,529

$778,205

$822,230

$868,968

Office Equipment
Rent

$6,000

$6,000

$8,000

$8,000

$8,000

Office
Supplies/Expense

$12,000

$15,000

$20,000

$22,500

$25,000

Travel &
Entertainment

$16,000

$30,000

$35,000

$40,000

$45,000

Leased Vehicles

$18,000

$25,000

$30,000

$30,000

$30,000

$678,560

$1,419,920

$1,762,646

$1,850,778

$1,941,584

Sales and
Marketing and
Other Expenses

Utilities

Insurance

$24,000

$25,000

$25,000

$25,000

$25,000

Misc Plant &

Maintainence
Supplies

$60,000

$63,000

$66,150

$69,458

$72,930

$0

$0

$0

$0

$0

$1,813,2
57

$3,264,85
8

$3,918,09
8

$4,109,62
1

$4,310,83
1

12.02%

10.35%

10.00%

9.99%

9.99%

$0

$0

$0

$0

$0

$90,661

$163,239

$195,905

$205,481

$215,542

$300,000

$330,000

$363,000

$399,300

$439,230

$390,661

$493,239

$558,905

$604,781

$654,772

Other

TOTAL GENERAL
AND
ADMINISTRATIV
E EXPENSES

General and
Administrative %

Other Expenses:

Other Payroll

Misc (contingency)

Prof Fees ( Includ

legal &
accounting)

TOTAL OTHER
EXPENSES

Other %

2.59%

1.56%

1.43%

1.47%

1.52%

Total Operating
Expenses

$2,209,91
8

$3,808,097

$4,577,003

$4,864,402

$5,165,603

Profit Before
Interest and Taxes

$3,379,75
8

$11,352,22
3

$16,747,08
7

$17,602,89
3

$18,317,64
1

EBITDA

$3,621,49
8

$11,758,21
5

$17,309,99
5

$18,165,80
1

$18,880,54
9

$60,568

$54,464

$48,064

$41,664

$35,264

$995,757

$3,389,328

$5,009,707

$5,268,369

$5,484,713

$2,323,43
3

$7,908,431

$11,689,31
6

$12,292,86
0

$12,797,66
4

15.41%

25.06%

29.84%

29.89%

29.66%

Interest Expense

Taxes Incurred

Net Profit

Net Profit/Sales

7.4 Projected Cash Flow

Cash flow is predicted to turn positive in the sixth month of operations, which is the tenth
month after funding. The Cash Flow table shows our planned repayment of the long-term
loan, as well as the purchase of new extrusion equipment in the first two year of the plan.
Dividends to founders and the outside investor are shown near the bottom of the table.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own
business plan.

Create your own business plan

PRO FORMA CASH FLOW

YEAR 1

Cash
Received

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Cash from
Operations

Cash Sales

$0

$0

$0

$0

$0

Cash from
Receivables

$13,094,21
9

$29,385,19
2

$38,167,38
0

$40,870,59
6

$42,880,69
3

SUBTOTAL
CASH
FROM
OPERATIO
NS

$13,094,2
19

$29,385,1
92

$38,167,3
80

$40,870,5
96

$42,880,6
93

Sales Tax,
VAT,
HST/GST
Received

$0

$0

$0

$0

$0

New Current
Borrowing

$0

$0

$0

$0

$0

New Other
Liabilities
(interestfree)

$0

$0

$0

$0

$0

New Longterm

$0

$0

$0

$0

$0

Additional
Cash
Received

Liabilities

Sales of
Other
Current
Assets

$0

$0

$0

$0

$0

Sales of
Long-term
Assets

$0

$0

$0

$0

$0

New
Investment
Received

$0

$0

$0

$0

$0

SUBTOTAL
CASH
RECEIVED

$13,094,2
19

$29,385,1
92

$38,167,3
80

$40,870,5
96

$42,880,6
93

Year 1

Year 2

Year 3

Year 4

Year 5

Cash
Spending

$1,315,857

$2,298,430

$2,594,018

$2,740,767

$2,896,561

Bill
Payments

$9,762,949

$20,983,84
9

$24,120,41
2

$25,478,36
0

$26,824,28
0

Expenditures

Expenditures
from
Operations

SUBTOTAL
SPENT ON
OPERATIO
NS

$11,078,8
06

$23,282,2
79

$26,714,4
30

$28,219,1
27

$29,720,8
42

Sales Tax,
VAT,
HST/GST
Paid Out

$0

$0

$0

$0

$0

Principal
Repayment
of Current
Borrowing

$0

$0

$0

$0

$0

Other
Liabilities
Principal
Repayment

$0

$0

$0

$0

$0

Long-term
Liabilities
Principal
Repayment

$79,200

$80,000

$80,000

$80,000

$80,000

$0

$0

$0

$0

$0

$1,591,000

$3,229,000

$0

$0

$0

Additional
Cash Spent

Purchase
Other
Current
Assets

Purchase
Long-term

Assets

Dividends

$0

$3,000,000

$8,000,000

$10,000,00
0

$10,000,00
0

$12,749,0
06

$29,591,2
79

$34,794,4
30

$38,299,1
27

$39,800,8
42

Net Cash
Flow

$345,213

($206,088)

$3,372,950

$2,571,469

$3,079,852

Cash
Balance

$990,213

$784,125

$4,157,075

$6,728,544

$9,808,396

SUBTOTAL
CASH
SPENT

7.5 Projected Balance Sheet

The vertical integration, immediate sales contracts and rapid ramp up of production
combine to project a Net Worth at the end of year one in excess of the total invested
capital. By staying on plan, the Company will achieve rapid growth compared to invested
capital.

PRO FORMA BALANCE SHEET

YEAR 1

Assets

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Current
Assets

Cash

$990,213

$784,125

$4,157,075

$6,728,544

$9,808,396

Accounts
Receivable

$1,984,88
1

$4,153,463

$5,155,983

$5,413,782

$5,679,403

Inventory

$510,125

$857,534

$907,907

$953,302

$1,000,075

$25,000

$25,000

$25,000

$25,000

$25,000

$3,510,21
9

$5,820,122

$10,245,96
5

$13,120,62
8

$16,512,87
4

$5,211,00
0

$8,440,000

$8,440,000

$8,440,000

$8,440,000

$241,740

$647,732

$1,210,640

$1,773,548

$2,336,456

$4,969,26

$7,792,268

$7,229,360

$6,666,452

$6,103,544

Other
Current
Assets

TOTAL
CURRENT
ASSETS

Long-term
Assets

Long-term
Assets

Accumulate
d
Depreciation

TOTAL
LONGTERM

ASSETS

TOTAL
ASSETS

$8,479,47
9

$13,612,39
0

$17,475,32
5

$19,787,08
0

$22,616,41
8

Year 1

Year 2

Year 3

Year 4

Year 5

$1,445,24
6

$1,749,726

$2,003,345

$2,102,240

$2,213,914

Current
Borrowing

$0

$0

$0

$0

$0

Other
Current
Liabilities

$0

$0

$0

$0

$0

$1,445,24
6

$1,749,726

$2,003,345

$2,102,240

$2,213,914

$720,800

$640,800

$560,800

$480,800

$400,800

$2,166,04
6

$2,390,526

$2,564,145

$2,583,040

$2,614,714

Liabilities
and Capital

Current
Liabilities

Accounts
Payable

SUBTOTAL
CURRENT
LIABILITI
ES

Long-term
Liabilities

TOTAL
LIABILITI

ES

Paid-in
Capital

$4,200,00
0

$4,200,000

$4,200,000

$4,200,000

$4,200,000

Retained
Earnings

($210,000)

($886,567)

($978,136)

$711,180

$3,004,040

Earnings

$2,323,43
3

$7,908,431

$11,689,31
6

$12,292,86
0

$12,797,66
4

TOTAL
CAPITAL

$6,313,43
3

$11,221,86
4

$14,911,18
0

$17,204,04
0

$20,001,70
4

TOTAL
LIABILITI
ES AND
CAPITAL

$8,479,47
9

$13,612,39
0

$17,475,32
5

$19,787,08
0

$22,616,41
8

Net Worth

$6,313,43
3

$11,221,86
4

$14,911,18
0

$17,204,04
0

$20,001,70
4

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

7.6 Business Ratios

Standard business ratios are included in the following table, along with comparison ratios
for the Thermoplastic Materials industry (SIC Code 2821.02). The ratios show a plan for
healthy growth. Our return on investment increases each year and will allow for new
equipment to be financed internally should the Company choose to do so. While the
ratios indicate rapid growth and profitability, it may be explained in part by the fact of the
integration of three business sections into the one facility. Our ratios differ significantly
from the rest of the industry because of our ability to use low-cost recycled materials to
manufacture our products.

RATIO ANALYSIS

Sales
Growth

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

INDUSTR
Y
PROFILE

0.00%

109.26%

24.14%

5.00%

4.91%

9.27%

23.41%

30.51%

29.50%

27.36%

25.11%

24.83%

6.02%

6.30%

5.20%

4.82%

4.42%

11.53%

Percent of
Total Assets

Accounts
Receivable

Inventory

Other
Current
Assets

0.29%

0.18%

0.14%

0.13%

0.11%

32.03%

Total
Current
Assets

41.40%

42.76%

58.63%

66.31%

73.01%

68.39%

Long-term
Assets

58.60%

57.24%

41.37%

33.69%

26.99%

31.61%

TOTAL
ASSETS

100.00
%

100.00
%

100.00
%

100.00%

100.00%

100.00%

Current
Liabilities

17.04%

12.85%

11.46%

10.62%

9.79%

26.62%

8.50%

4.71%

3.21%

2.43%

1.77%

25.26%

Total
Liabilities

25.54%

17.56%

14.67%

13.05%

11.56%

51.88%

NET
WORTH

74.46%

82.44%

85.33%

86.95%

88.44%

48.12%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Long-term
Liabilities

Percent of
Sales

Sales

Gross
Margin

37.07%

48.05%

54.44%

54.63%

54.43%

28.02%

Selling,
General &
Administrati
ve Expenses

22.36%

22.63%

24.36%

24.16%

24.37%

15.89%

0.04%

0.17%

0.27%

0.38%

0.48%

0.17%

22.41%

35.98%

42.75%

42.80%

42.45%

2.46%

Current

2.43

3.33

5.11

6.24

7.46

1.79

Quick

2.08

2.84

4.66

5.79

7.01

1.22

25.54%

17.56%

14.67%

13.05%

11.56%

57.88%

Advertising
Expenses

Profit Before
Interest and
Taxes

Main Ratios

Total Debt
to Total
Assets

Pre-tax
Return on
Net Worth

52.57%

100.68%

111.99%

102.08%

91.40%

2.22%

Pre-tax
Return on
Assets

39.14%

83.00%

95.56%

88.75%

80.84%

5.28%

Additional
Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

Net Profit
Margin

15.41%

25.06%

29.84%

29.89%

29.66%

n.a

Return on
Equity

36.80%

70.47%

78.39%

71.45%

63.98%

n.a

7.60

7.60

7.60

7.60

7.60

n.a

Collection
Days

29

36

43

47

47

n.a

Inventory
Turnover

15.76

18.81

15.43

15.28

15.36

n.a

7.76

12.17

12.17

12.17

12.17

n.a

Activity
Ratios

Accounts
Receivable
Turnover

Accounts

Payable
Turnover

Payment
Days

27

27

28

29

29

n.a

1.78

2.32

2.24

2.08

1.91

n.a

Debt to Net
Worth

0.34

0.21

0.17

0.15

0.13

n.a

Current
Liab. to
Liab.

0.67

0.73

0.78

0.81

0.85

n.a

$2,064,9
73

$4,070,3
96

$8,242,6
20

$11,018,3
88

$14,298,9
60

n.a

55.80

208.44

348.43

422.50

519.44

n.a

Total Asset
Turnover

Debt Ratios

Liquidity
Ratios

Net Working
Capital

Interest
Coverage

Additional
Ratios

Assets to
Sales

0.56

0.43

0.45

0.48

0.52

n.a

Current
Debt/Total
Assets

17%

13%

11%

11%

10%

n.a

Acid Test

0.70

0.46

2.09

3.21

4.44

n.a

Sales/Net
Worth

2.39

2.81

2.63

2.39

2.16

n.a

Dividend
Payout

0.00

0.38

0.68

0.81

0.78

n.a

7.7 Long-term Plan

The plan calls for maximum production rate for flake in the sixth month from funding.
Approximately one third of that production will be converted into extruded sheet
beginning approximately at the same time. A second sheet extruder, which will also
consume one third of the flake produced, is planned to be added at the end of year one,
coming on line mid year two. A third extruder, which is planned to produce high-strength
strapping, is expected to come on line late in year two. By the beginning of year three, it
is expected that all of the 46,200,000 lbs. of RPET cleaned & recycled annually will be
converted into extruded products. Up until this time, excess flake produced will be sold to
other extruder companies.
The plan assumes a 5% increase in the sales price of all products and a 5% increase in the
cost of raw materials and labor in each of years 2 through 5.

The result of the above is rapid growth in revenue and profit through year three, and
moderate growth in years four and five, assuming no expansion of capacity during that
time.

7.8 Replay's Exit Strategy

Management is indifferent as to the question of looking to sell the Company after 4-5
years or retaining ownership and the resulting annual cash flow. They will look to the
investors for their direction and will generally support their wishes.
Recent information on private sales of similar industry companies has indicated that
transactions under $25 million have averaged 5.3 times EBITDA, while transactions in
the range of $25-250 million have averaged over 7 times EBITDA.
Such multiples would put the potential sales price of Replay, after 4-5 years of operation,
in excess of $100 million based on current projections.

Appendix

SALES FORECAST

MONT MONT MONT MONT

H1

Unit
Sales

H2

H3

H4

MONTH MONTH 6 MONTH 7 MONTH 8 MONTH 9

5

MONTH

MONTH

MONTH

10

11

12

Recycle

0%

0 1,925,00 3,208,400 2,566,700 2,566,700 2,566,700 2,566,700 2,566,700 2,566,700

d Flake

PET

Extrude

0%

641,600 1,283,300 1,283,300 1,283,300 1,283,300 1,283,300 1,283,300

0%

0 1,925,00

3,850,00

3,850,00

3,850,00

3,850,00

3,850,00

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

d Roll
Stock
Sheet

Extrude

d
Strappin
g

TOTAL
UNIT

3,850,00 3,850,000

SALES

Unit
Prices

Recycle

Month Month Month Month

1

$0.45

$0.00

$0.00

$0.00

$0.45

$0.45

$0.45

$0.45

$0.45

$0.45

$0.45

$0.45

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.70

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0.95

$0

$0

$0

d Flake
PET

Extrude
d Roll
Stock
Sheet

Extrude
d
Strappin
g

Sales

Recycle

$0 $866,250 $1,443,78 $1,155,01 $1,155,01 $1,155,01 $1,155,01 $1,155,01 $1,155,01

d Flake

$449,120

$898,310

$898,310

$898,310

$898,310

$898,310

$898,310

PET

Extrude
d Roll
Stock

$0

$0

$0

$0

$0

Sheet

Extrude

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $866,25

$1,892,9

$2,053,3

$2,053,3

$2,053,3

$2,053,3

00

25

25

25

25

25

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

d
Strappin
g

TOTAL
SALES

Direct

Month Month Month Month

Unit

$2,053,3 $2,053,32

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0.27

$0

$0

$0

$0 $510,125

$850,226

$680,176

$680,176

$680,176

$680,176

$680,176

$680,176

$0

$0

$0

$0

$0

$170,024

$340,075

$340,075

$340,075

$340,075

$340,075

$340,075

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Costs

Recycle

0.00

d Flake

PET

Extrude
d Roll

0.00
%

Stock
Sheet

Extrude
d

0.00
%

Strappin
g

Direct
Cost of
Sales

Recycle
d Flake
PET

Extrude
d Roll
Stock
Sheet

Extrude
d
Strappin

Subtotal

$0

$0

$0

$0 $510,125 $1,020,25 $1,020,25 $1,020,25 $1,020,25 $1,020,25 $1,020,25 $1,020,25

Direct

Cost of
Sales

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

PERSONNEL PLAN

MONT

MONT

H1

H2

MONT MONTH
H3

MONTH MONTH 6 MONTH 7 MONTH 8 MONTH 9

5

MONTH

MONTH

MONTH

10

11

12

$0

$0

$0

$0

$12,500

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$16,667

$0

$0

$0

$0

$14,583

$14,583

$14,583

$14,583

$14,583

$14,583

$14,583

$14,583

$0

$0

$0

$0

$43,750

$43,750

$43,750

$43,750

$43,750

$43,750

$43,750

$43,750

$0

$0

$0

$0

$0

$23,438

$23,438

$23,438

$23,438

$23,438

$23,438

$23,438

Production
Personnel

Shift
Supervisor

Maintainence
Techs

Skilled
Recycle Plant
Labor

Unskilled
Recycle Plant
Labor

Extruder

$0

$0

$0

$0

$10,938

$10,938

$10,938

$10,938

$10,938

$10,938

$10,938

$10,938

$0

$0

$0

$0

$0

$3,646

$3,646

$3,646

$3,646

$3,646

$3,646

$3,646

$0

$0

$0

$0

$7,813

$7,813

$7,813

$7,813

$7,813

$7,813

$7,813

$7,813

$0

$0

$0

$0

$0

$2,604

$2,604

$2,604

$2,604

$2,604

$2,604

$2,604

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $89,584

$123,43

$123,43

$123,43

$123,43

$123,43

Operator (full
time)

Extruder
Operator
(part time)

Production
Assistant (full
time)

Production
Assistant
(part time)

Name or Title
or Group

SUBTOTAL

$123,43 $123,439

Sales and
Marketing
Personnel

commission-

$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

President

$2,000

$2,000

$2,000

$2,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

$8,000

Vice Pres COO

$1,800

$1,800

$1,800

$1,800

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

basis - see
P&L

Name or Title
or Group

SUBTOTAL

General and
Administrativ
e Personnel

CFO

$1,800

$1,800

$1,800

$1,800

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

Plant Manager

$0

$0

$0

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

Accountant

$0

$0

$0

$0

$3,650

$3,650

$3,650

$3,650

$3,650

$3,650

$3,650

$3,650

Clerk

$0

$0

$0

$0

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

Clerk

$0

$0

$0

$0

$0

$0

$2,600

$2,600

$2,600

$2,600

$2,600

$2,600

Clerk

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Shipper

$0

$0

$0

$0

$3,400

$3,400

$3,400

$3,400

$3,400

$3,400

$3,400

$3,400

$12,60 $39,650

$39,650

$42,250

$42,250

$42,250

$42,250

$42,250

$42,250

Receiver

SUBTOTAL

$5,600 $5,600 $5,600

Other
Personnel

Name or title

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Name or title

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

SUBTOTAL

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

50

50

51

51

51

51

51

51

$5,600

$5,600

TOTAL
PEOPLE

Total Payroll

$5,600 $12,600

$129,23 $163,089 $165,689 $165,689 $165,689 $165,689 $165,689 $165,689

4

GENERAL ASSUMPTIONS

MONT

MONT

MONT

MONT

MONT

MONT

MONT

MONT

MONT

MONT

H1

H2

H3

H4

H5

H6

H7

H8

H9

H 10

MONT MONTH
H 11

12

Plan

10

11

12

12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%

12.00%

Month

Current
Interest
Rate

Long-

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

8.00%

30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

30.00%

term
Interest
Rate

Tax Rate

Other

PRO FORMA PROFIT AND LOSS

MONTH MONTH MONTH MONTH MONTH 5

MONTH 6

MONTH 7

MONTH 8

MONTH 9 MONTH 10 MONTH 11 MONTH 12

Sales

$0

$0

$0

$0 $866,250 $1,892,900 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325 $2,053,325

Direct Cost of Sales

$0

$0

$0

$0 $510,125 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250 $1,020,250

Production Payroll

$0

$0

$0

$0

$89,584

$123,439

$123,439

$123,439

$123,439

$123,439

$123,439

$123,439

Packaging

$0

$0

$0

$0

$8,663

$18,929

$20,533

$20,533

$20,533

$20,533

$20,533

$20,533

Sales Commission

$0

$0

$0

$0

$43,313

$93,041

$99,458

$99,458

$99,458

$99,458

$99,458

$99,458

TOTAL COST OF

$0

$0

$0

$0 $651,68 $1,255,65 $1,263,68 $1,263,68$1,263,680 $1,263,68 $1,263,68 $1,263,680

SALES

Gross Margin

Gross Margin %

Operating Expenses

$0

$0

$0

0.00%

0.00%

0.00%

$0 $214,566

$637,241

$789,645

$789,645

33.66%

38.46%

38.46%

0.00%

24.77%

$789,645

$789,645

$789,645

$789,645

38.46%

38.46%

38.46%

38.46%

Sales and Marketing

Expenses

Sales and Marketing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

0.00%

0.00%

0.00%

0.00%

0.06%

0.03%

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

$5,600

$5,600

$5,600 $12,600

$39,650

$39,650

$42,250

$42,250

$42,250

$42,250

$42,250

$42,250

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$20,145 $20,145 $20,145 $20,145

$20,145

$20,145

$20,145

$20,145

$20,145

$20,145

$20,145

$20,145

Payroll

Advertising/Promotion

Travel

TOTAL SALES AND

MARKETING
EXPENSES

Sales and Marketing

%

General and
Administrative
Expenses

General and
Administrative Payroll

Sales and Marketing

$0

and Other Expenses

Depreciation

Payroll Burden

30

$1,680

$1,680

$1,680

$3,780

$38,770

$48,927

$49,707

$49,707

$49,707

$49,707

$49,707

$49,707

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$500

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$0

$0

$0

$0

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$0

$0

$0

$0

$38,981

$85,181

$92,400

$92,400

$92,400

$92,400

$92,400

$92,400

Office Equipment
Rent

Office
Supplies/Expense

Travel &
Entertainment

Leased Vehicles

Utilities

Insurance

Misc Plant &

15

Maintainence Supplies

Other

TOTAL GENERAL

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$37,425 $37,425 $37,425 $46,525 $149,54

$205,902

$216,501

$216,501

$216,501

$216,501

$216,501

$216,501

AND

ADMINISTRATIVE
EXPENSES

General and

0.00%

0.00%

0.00%

0.00%

17.26%

10.88%

10.54%

10.54%

10.54%

10.54%

10.54%

10.54%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,871

$1,871

$1,871

$2,326

$7,477

$10,295

$10,825

$10,825

$10,825

$10,825

$10,825

$10,825

$25,000 $25,000 $25,000 $25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$26,871 $26,871 $26,871 $27,326 $32,477

$35,295

$35,825

$35,825

$35,825

$35,825

$35,825

$35,825

3.75%

1.86%

1.74%

1.74%

1.74%

1.74%

1.74%

1.74%

$64,796 $64,796 $64,796 $74,351 $182,523

$241,697

$252,826

$252,826

$252,826

$252,826

$252,826

$252,826

$32,043

$395,544

$536,818

$536,818

$536,818

$536,818

$536,818

$536,818

$52,188

$415,689

$556,963

$556,963

$556,963

$556,963

$556,963

$556,963

Administrative %

Other Expenses:

Other Payroll

Misc (contingency)

Prof Fees ( Includ

legal & accounting)

TOTAL OTHER
EXPENSES

Other %

Total Operating

0.00%

0.00%

0.00%

0.00%

Expenses

Profit Before Interest

and Taxes

EBITDA

Interest Expense

Taxes Incurred

($64,796 ($64,796 ($64,796 ($74,351

)

($44,651 ($44,651 ($44,651 ($54,206

)

$5,289

$5,245

$5,201

$5,157

$5,113

$5,069

$5,025

$4,981

$4,937

$4,893

$4,849

$4,805

($21,026 ($21,012 ($20,999 ($23,852

$8,079

$117,142

$159,538

$159,551

$159,564

$159,578

$159,591

$159,604

Net Profit

($49,060 ($49,029 ($48,998 ($55,656

Net Profit/Sales

0.00%

0.00%

0.00%

0.00%

$18,850

$273,332

$372,255

$372,286

$372,317

$372,348

$372,378

$372,409

2.18%

14.44%

18.13%

18.13%

18.13%

18.13%

18.14%

18.14%

PRO FORMA CASH FLOW

MONT

MONT

MONT

H1

H2

H3

MONT MONTH MONTH MONTH 7 MONTH 8 MONTH 9

H4

MONTH

MONTH

MONTH

10

11

12

Cash Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

Cash from

$0

$0

$0

$0 $28,875 $900,47 $1,898,24 $2,053,32 $2,053,32 $2,053,32 $2,053,32 $2,053,32

Cash
Received

Cash from
Operations

Receivables

SUBTOTAL

$0

$0

$0

$0

$0

$0

$0 $28,875 $900,4 $1,898,2 $2,053,3 $2,053,3 $2,053,3 $2,053,3 $2,053,3

CASH

72

48

25

25

25

25

25

FROM
OPERATIO
NS

Additional
Cash
Received

Sales Tax,
VAT,

0.00

$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

HST/GST
Received

New
Current
Borrowing

New Other
Liabilities

(interestfree)

New Long-

$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

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $28,875 $900,4 $1,898,2 $2,053,3 $2,053,3 $2,053,3 $2,053,3 $2,053,3

term
Liabilities

Sales of
Other
Current
Assets

Sales of
Long-term
Assets

New
Investment
Received

SUBTOTAL
CASH

72

48

25

Month 5 Month 6

Month 7

Month 8

25

25

25

25

RECEIVED

Expenditure

Month 1 Month 2 Month 3 Month 4

Month 9 Month 10 Month 11 Month 12

Expenditure
s from
Operations

Cash

$5,600

$5,600

$5,600

Spending

Bill
Payments

SUBTOTAL
SPENT ON
OPERATIO
NS

$12,60 $129,23 $163,08 $165,689 $165,689 $165,689 $165,689 $165,689 $165,689

0

$777

$23,31

$23,28

$23,24 $37,250 $494,36 $1,684,85 $1,495,23 $1,495,20 $1,495,17 $1,495,14 $1,495,11

2

$6,377 $28,91 $28,88 $35,84 $166,48 $657,4 $1,850,5 $1,660,9 $1,660,8 $1,660,8 $1,660,8 $1,660,8
4

49

47

24

93

62

31

01

Additional
Cash Spent

Sales Tax,

$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

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$6,600

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $568,000

VAT,
HST/GST
Paid Out

Principal
Repayment
of Current
Borrowing

Other
Liabilities
Principal
Repayment

Long-term
Liabilities
Principal
Repayment

Purchase
Other
Current
Assets

Purchase

$0 $1,023,00

Long-term

Assets

Dividends

SUBTOTAL
CASH

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$12,97 $35,51 $35,48 $42,44 $173,08 $664,0 $1,857,1 $1,667,5 $1,667,4 $2,235,4 $1,667,4 $2,690,4
7

49

47

24

93

62

31

01

SPENT

Net Cash

($12,97 ($35,51 ($35,48 ($42,44 ($144,20 $236,42

Flow

7)

4)

3)

Cash

$632,0

$596,5

$561,0

23

09

26

Balance

2)

9)

$41,101 $385,801 $385,832

($182,13 $385,894 ($637,076

7)

$518,5 $374,37 $610,79 $651,899 $1,037,70 $1,423,53 $1,241,39 $1,627,28 $990,213

85

Need real financials?

We recommend using LivePlan as the easiest way to create automatic financials for your
own business plan.

Create your own business plan

PRO FORMA BALANCE SHEET

MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9MONTH 10MONTH 11MONTH 12

Assets

Starting
Balances

Current
Assets

Cash

Accounts

$645,000

$632,023

$596,509

$561,026

$518,585

$374,376

$610,798

$651,899 $1,037,700 $1,423,532 $1,241,395 $1,627,288

$990,213

$0

$0

$0

$0

$0

$500,000

$500,000

$500,000

$500,000

$500,000

$255,063

$510,125

$510,125

$510,125

$510,125

$510,125

$510,125

$510,125

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$25,000

$837,375 $1,829,803 $1,984,881 $1,984,881 $1,984,881 $1,984,881 $1,984,881 $1,984,881

Receivable

Inventory

Other
Current
Assets

TOTAL
CURRENT

$1,170,00 $1,157,02 $1,121,50 $1,086,02 $1,043,58 $1,491,81 $2,975,72 $3,171,90 $3,557,70 $3,943,53 $3,761,40 $4,147,29 $3,510,21
0

ASSETS

Long-term
Assets

Long-term
Assets

$3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $3,620,000 $4,188,000 $4,188,000 $5,211,000

Accumulated

$0

$20,145

$40,290

$60,435

$80,580

$100,725

$120,870

$141,015

$161,160

$181,305

$201,450

$221,595

$241,740

Depreciation

TOTAL
LONG-

$3,620,00 $3,599,85 $3,579,71 $3,559,56 $3,539,42 $3,519,27 $3,499,13 $3,478,98 $3,458,84 $3,438,69 $3,986,55 $3,966,40 $4,969,26
0

TERM
ASSETS

TOTAL
ASSETS

$4,790,00 $4,756,87 $4,701,21 $4,645,59 $4,583,00 $5,011,08 $6,474,85 $6,650,89 $7,016,54 $7,382,23 $7,747,95 $8,113,69 $8,479,47
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

$0

$22,538

$22,508

$22,478

$22,147

$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

$22,538

$22,508

$22,478

Liabilities
and Capital

Current
Liabilities

Accounts

$437,980 $1,635,016 $1,445,395 $1,445,365 $1,445,335 $1,445,305 $1,445,276 $1,445,246

Payable

Current
Borrowing

Other
Current
Liabilities

SUBTOTAL

$22,147 $437,980 $1,635,01 $1,445,39 $1,445,36 $1,445,33 $1,445,30 $1,445,27 $1,445,24

CURRENT

$760,400

$753,800

$747,200

$740,600

$734,000

$727,400

$720,800

LIABILITIE
S

Long-term

$800,000

$793,400

$786,800

$780,200

$773,600

$767,000

Liabilities

TOTAL
LIABILITIE

$800,000 $815,938 $809,308 $802,678 $795,747 $1,204,98 $2,395,41 $2,199,19 $2,192,56 $2,185,93 $2,179,30 $2,172,67 $2,166,04
0

Paid-in

$4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000

Capital

Retained

($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000) ($210,000)

Earnings

Earnings

$0 ($49,060) ($98,089) ($147,087) ($202,743) ($183,892)

$89,440

$461,695

$833,981 $1,206,298 $1,578,645 $1,951,024 $2,323,433

TOTAL
CAPITAL

TOTAL
LIABILITIE

$3,990,00 $3,940,94 $3,891,91 $3,842,91 $3,787,25 $3,806,10 $4,079,44 $4,451,69 $4,823,98 $5,196,29 $5,568,64 $5,941,02 $6,313,43
0

$4,790,00 $4,756,87 $4,701,21 $4,645,59 $4,583,00 $5,011,08 $6,474,85 $6,650,89 $7,016,54 $7,382,23 $7,747,95 $8,113,69 $8,479,47
0

S AND
CAPITAL

Net Worth

$3,990,000 $3,940,940 $3,891,911 $3,842,913 $3,787,257 $3,806,108 $4,079,440 $4,451,695 $4,823,981 $5,196,298 $5,568,645 $5,941,024 $6,313,433