Eloquent Coverings LTD - Company's Business Plan

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Table of Contents
1.0 Executive Summary .................................................................................................................................1
1.1 Objectives......................................................................................................................................3
1.2 Mission ..........................................................................................................................................4
1.3 Keys to Success ............................................................................................................................5
2.0 Company Summary .................................................................................................................................6
2.1 Company Ownership .....................................................................................................................6
2.2 Start-up Summary..........................................................................................................................7
3.0 Products and Services ............................................................................................................................8
4.0 Market Analysis Summary .......................................................................................................................9
4.1 Market Segmentation...................................................................................................................10
4.2 Target Market Segment Strategy.................................................................................................12
4.3 Service Business Analysis ...........................................................................................................13
4.3.1 Competition and Buying Patterns ....................................................................................14
5.0 Strategy and Implementation Summary .................................................................................................15
5.1 SWOT Analysis............................................................................................................................15
5.1.1 Strengths ........................................................................................................................16
5.1.2 Weaknesses ...................................................................................................................16
5.1.3 Opportunities ..................................................................................................................16
5.1.4 Threats ...........................................................................................................................17
5.2 Competitive Edge ........................................................................................................................17
5.3 Marketing Strategy ......................................................................................................................18
5.4 Sales Strategy .............................................................................................................................18
5.4.1 Sales Forecast ................................................................................................................19
5.5 Milestones ...................................................................................................................................22
6.0 Management Summary .........................................................................................................................24
6.1 Personnel Plan ............................................................................................................................24
7.0 Financial Plan .......................................................................................................................................25
7.1 Start-up Funding .........................................................................................................................25
7.2 Important Assumptions ................................................................................................................27
7.3 Break-even Analysis ....................................................................................................................27
7.4 Projected Profit and Loss ............................................................................................................28
7.5 Projected Cash Flow....................................................................................................................31
7.6 Projected Balance Sheet .............................................................................................................33
7.7 Business Ratios ...........................................................................................................................34
Page 1
Eloquent Coverings Business Plan

1.0 Executive Summary
Introduction
Today the world is defined by the term "Information Age". All businesses, both large and
small, require effective and efficient business communication solutions in order to
continuously meet their customer expec tations and attain a competitive advantage, and
therefore be successful. Whether a company is large or small it is realized that, the right
amount of financing, materials, talent, and experience are not enough to succeed without a
good communication system in place that enables smooth transaction sealing.
The Company
Eloquent Covering Ltd (ElCov Ltd) is a company established on the foundation of bringing the
world of Business Practices and Intelligence in sync with the world of Information Technology
in order to provide a product and service that would meet its customers needs and wants
based on current trends and open venues for income within its local business market.
Services and Products

Eloquent Covering Ltd. (ElCov Ltd) provides both a service and product that allows their
customer to look and feel better after partaking of their offerings. The service provided is the
use of a system that would have the customer wear a cap the would take an image of their
scalp shape and height of hair, and then using this image to allow them to get a 3D visual
of what different hair pieces would look like on their head before they purchase it. The
customers may also customize these styles. The products being sold are the different hair
pieces (wigs) that would be available to all persons of any ethnic type at a very reasonable
price.
*All products being offered by ElCov Ltd are available for online purchase and will be
delivered at each customer door steps within two (2) days of the purchase. *
The Market
The hair industry is highly fragmented with national chains such as Trinidad Hairs and Santa's
the Hair King, which operates diverse franchises catering to most the market segments,
and also including serveral "teen & hip women" salons that are very restricted in scope and
services. This makes for a highly competitive market that has low barriers to entry and
exit. However, most companies have tried to pursue only one general strategy in gaining
market share. Eloquent Coverings believes that it is possible to offer a differentiated
focused service through improved customer service at no greater significant cost if the
Page 1

right employee incentives are provided.
With this strategy in mind, the company's goal is to increase the number of clients served
by at least 20% per year.
Eloquent Solutions Ltd will target four(4) different market segments:
1.
2.
3.
4.
Female between the ages of 17 - 55 of average class of living

Professional males between the ages of 30 - 65
Persons that are interested in using new technology to aid a looking better
Persons that simply just want to by hair wigs for the own use and styling
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1.1 Objectives
Our business strategy will revolve around the need to provide quality service and products to
our various target clients, in the process of fully satisfying their needs. This shall be
undertaken through recruitment of a professional telemarketing, sales and technical team
and the provision of good quality custom-designed services, catering for the clients'
particular needs.
With time our marketing campaign will increase the knowledge of our services to the various
market segments we shall be targeting. This is particularly so with organizations looking at
establishing a competitive advantage(s) on the market due to increased competition, hence
providing them with the opportunity to focus on their core activities whilst procuring
increased business from new and existing customers. Marketing material shall be
professionally done so as to be reflective of our intended image and reputation. We shall
position ourselves as a quality hair wigs solution service provider that strives to provide
effective and efficient looks and styles for of customers' hair. We intend to establish a good
rapport with all the relevant stakeholders and customers.
In summary we intend to attain the following objectives:
Continuously provide professional quality services on time and on budget.
Develop a follow-up strategy to gauge performance with all our clients.
Implement and maintain a quality control system and assurance policy.
To continuously perform methods of cross-examining working solutions
implemented by other business competitiors to ensure that our product and
services are always the best and most updated for our clients and customers.
To instill a culture of continuous improvement in beating standards of customer
satisfactionand efficiency.
We are fully committed to supporting growth and development in the economy.
Sales increase substantially by end of second year and nearly double year one
revenue by the end of third year.
To increase the number of clients services by at least 20% per year through superior
performance and word-of mouth referrals.
Have a clientele return rate of 90% by end of first year.
Provide quick delivery and feedback to customer purchasing our products online
Become an established community destination by end of first year.
To develop a sustainable start-up business, contributing to increased employment
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of community residents.
1.2 Mission
Eloquent Covering Ltd offers a premium service of quality wig sales at reasonable prices to
our customers as well as access to our future look system that will enable these customers
to view the way that they would look with certain hair pieces (wigs) before they make a
purchase of the product of their choice via our Future Look system. Eloquent Covering Ltd
exist to attract and maintain customers. When we adhere to this maxim, everything else
will fall into place as our services are aimed exceed the expectations of our customers.
Internally we intend to create and nurture a healthy, creative, respectful and enjoyable
office environment, in which our employees are fairly compensated and encouraged to
respect the customer and the quality of the service we provide. In addition, follow-up will
be mandatory so as ensure customer satisfaction and make any improvements as
recommended by the customers in future. We seek fair and responsible profit, enough to
keep the company financially healthy for the short and long term, and to fairly compensate
investors for the money and risk.
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1.3 Keys to Success
The keys to this project's success will undoubtedly be effective market segmentation through
identification of several niche markets and implementation strategies. Along these lines
Eloquent Covering Ltd intends to implement personal selling and direct marketing
strategies to its target markets. Hence the key success factors will include the following:
Excellence in fulfilling the promise:
Completely confidential, reliable, trustworthy expertise and service(s) through the
provision of an uncompromising service. This dictates that we have in place the latest
technology, hardware and software, and well-trained personnel so as to fulfill the aforesaid.
Timely response to clients' orders: We cannot afford to delay our clients for whatever
reason, as this will have a negative bearing on our image and reputation, including future
business. Hence we need to be continually communicating with the client ensuring we
provide needs-based solutions and quick response to our online product purchasing.
Skill and depth of knowledge: Considering the nature of our services and their relative
infancy on the market, the skill and depth of knowledge of our personnel shall be of utmost
importance in determining the provision of the service(s) to the end-users.
Marketing know-how: In a relatively volatile market there will be a need to aggressively
market our business and the services we provide so as to be continuously at the top of our
prospective and current clients minds. This will also act as a temporary deterrent for
companies contemplating entering our market. Advertising shall be one of our competitive
advantages.
Leveraging from a large pool of expertise: The company's various alliances with
technological partners shall prove invaluable considering the skills and intellectual capacity
these partners will have in the fields of design and system integration, implementation and
execution, lifecycle support and understanding, and in the application of new technology.
This has the potential of proving to be an important differentiator on the market.
Convenience
: Offering clients a wide range of services in one setting, and extendedbusiness hours.
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2.0 Company Summary
Eloquent Covering Ltd (ElCov Ltd) is a company established on the foundation of bringing the
world of Business Practices and Intelligence in sync with the world of Information Technology
in order to provide a product and service that would meet its customers needs and wants
based on current trends and open venues for income within its local business market. With
the idea of supplying hair pieces that would best suit a customer as well as giving them a
look at what they would look like wearing the hair piece, ElCov Ltd employs this uses of
technology with the intention of establishing close relationships with its clients.
2.1 Company Ownership
Eloquent Covering Ltd is a privately establish and owned company by Jude Bernard, Adio
Colthrust and Rennie Ramlochan. Though relatively new, the direc tors realize their
company's vast potential market and opportunity for growth given implementation of the
appropriate strategies, aided by the necessary finances.
To achieve our objectives, ElCov Ltd is seeking loan financing. This loan will be paid from the
cash flow from the business, and will be secured by the assets of the company, and backed
by the character, experience and personal guarantees of the owners.
Mr. Jude Bernard - is currently an MSc Student at the University of Trinidad and Tobago
(UTT). Mr. Bernard holds a Technician's Diploma in Computer Engineering from UTT, and a
Bachelor of Science in Computer Science with First Class Honors from the University of
Hertfordshire (UH). Mr. Bernard has also participated in UTT's Annual Business Ideas
Competition 2011 and has achieved as award in the catergory of Innovative ICT Application.
Mr. Adio Colthrust - is currently an MSc Student at the University of Trinidad and Tobago
(UTT). Mr. Colthrust holds a Technician's Diploma in Computer Engineering from UTT, and a
Bachelor of Science in Computer Science with First Class Honors from the University of
Hertfordshire (UH). Mr. Colthrust has also participated in UTT's Annual Business Ideas
Competition 2011 and has achieved as award in the catergory of Social Media Enterprises.
Mr. Rennie Ramlochan - is currently an MSc Student at the University of Trinidad and Tobago
(UTT). Mr. Ramlochan holds a BSc in Information Technology from the University of the West
Indies (UWI) with First Class Honors and a BSc in Computer Science from the University of
Hertfordshire (UH) with First Class Honors. Mr. Ramlochan has also participate in UTT's
Annual Business Ideas Competition 2011 and were in the list of finalist.
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2.2 Start-up Summary
Total start-up expenses covered (including legal costs, logo design, stationery, internet
access, website development and related expenses) came to approximately TT$42,000.
Start-up assets required and utilized are approximated to be TT$792,000 and include but
not limited to the following:
Personal computers
Point of sales computer vehicles
Development of systems to scan and take image of the customers' head
Office furniture
Computer with point of sale terminal
Business Signs
Interior Decore (roofing, walls, flooring, receptionist area, etc)
Assorted Plants
Display shelf for sale of retail products
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Internet Access
$3,500
$10,000
$3,000
$7,000
$500
Website Developement
Other
Total Start-up Expenses
$8,000
$5,000
$37,000
Start-up Assets
Cash Required
$500,000
Start-up Inventory
Other Current Assets
Long-term Assets
$20,000
$200,000
$30,000
Total Assets
$750,000
Total Requirements
$787,000
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3.0 Products and Services
Eloquent Covering Ltd. (ElCov Ltd) provides both a service and product that allows their
customer to look and feel better after partaking of their offerings. The service provided is the
use of a system that would have the customer wear a cap the would take an image of their
scalp shape and height of hair, and then using this image to allow them to get a 3D visual
of what different hair pieces would look like on their head before they purchase it. The
products be sold are the different hair pieces (wigs) that would be avaliable to all persons
of any ethnic type at a very reasonable price.
All products being offered by ElCov Ltd are available for online purchase and will be delivered
at each customer door steps within two (2) days of the purchase.
The product mentioned above is to be supplied to ElCov Ltd by a company namely Trinidad
Hairs, a privately owned distributor of hair extension, wigs and weaves. If Trinidad Hairs
fails to maintain a great quality of supplies and a reasonable price to ElCov Ltd, then ElCov
Ltd would approach two (2) other wholesale providers of the aforementioned product with
company namely Summit Cometics Ltd and Santa's The Hair and Wig King in order to select a
new supplier for their standard of products.
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4.0 Market Analysis Summary
With the current rate of growth in the market of hair cosmetics products and service, it
was mandatory that research on the market be done in other to determine whether or not
it is feasible to enter this particular market at the current point and time, and if so, how
being what making strategy of entry should be used on entering the market in order to
gain a fair share of the market's profit.
In order to determine the needs, ElCov Ltd did some market research and on hand interviews
with a few randomly selected citizens of Trinidad and Tobago to assist with analyzing the
feasibility for demand and supply of their product and services as well as the competitors
within the marketof Trinidad and Tobago.
After research, it is evident that there is alot of potential for ElCov Ltd to easily merge into
a market of this type and be very profitable based on the uniqueness of the services
proposed. There are however current competitors on the market that supply the same
product that ElCov Ltd will be supplying. These business are Exotic Glow Cosmetics &
Beauty Supplies, Trinidad Carnival Diary, Pennywise, Monique's Hair & Beauty Supply Store, T
& T Salon Supplies, Hair Plus and Wendy's Variety Shop. These all offer the products,
however, non offers the service that enable their clients to get a view of their look with these
hair pieces before hand, neither do they provide online purchasing or these product as well
as delivery services. These businesses are all small business and only supply for a small
portion of the market. As technology improves, these small businesses grow, and we expect
that these businesses will continue to grow over the years.
Aware of the fact that we will be operating in a predominantly growing market we intend
to ensure that our marketing strategies are considerate of the importance of the fit
between our services capabilities and benefits, and the target market, so as to develop a
strong sustainable competitive position in the market. As a result we intend to implement
a niche marketing strategy, focusing on certain target markets.
The above prognosis influenced our decision to enter the IT business services for supplies of
this nature.
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4.1 Market Segmentation
Our target market for our services and products will be Female between the ages of 17 - 55
of average class of living, professional males between the ages of 30 - 65 as research shows
that 25% of men have already begin baliding by the age of 30 and the rest as they near 60
years. These men are expected to be earning an average income of 5000 or more per
month. Eloquent Covering Ltd also targets person that will just be eager to trying our
service provided. Due to our unique, we anticipate to approximately 1500 people that
would be interested in our service provided to customers for viewing themselves with the
new hair styles before actually purchasing it as this would give the customers a bigger
insite as to how and on what they will be investing their monies the next time they are about
to do their hair. The 4th area of target that we would be advertising towards are persons
that simply just want to by their hair product and not utilize our services provided. These
hair replacement customers most of the time already have a trend of style in which they
are comfortable with and don't wish to change this. These are very good customers as
they would play a major role in the purchasing of our products which are perceived to be of
the greater standard among others in the market area.
The following shows the analysis of our company's market segmentation.
Table: Market Analysis
Market Analysis
Potential Customers
Females
Males
Hair Replacement Clients
Business Services Clients
Total
Year 1
Year 2
Year 3
Year 4
Year 5
Growth
30%
20%
1,200
100
1,560
120
2,028
144
2,636
173
3,427
208
CAGR
30.00%
20.09%
25%
60%
45.75%
400
1,500
3,200
500
2,400
4,580
625
3,840
6,637
781
6,144
9,734
976
9,830
14,441
24.98%
60.00%
45.75%
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4.2 Target Market Segment Strategy
Eloquent Covering Ltd will target each of the four (4) groups pointed out in the marketing
segementation at different angels and levels. Our target market segments are fairly broad,
in part because our services appeal to such a wide range of people.
Our marketing strategy will be based mainly on making the right service(s) available to the
right target customer. We will ensure that our services' prices take into consideration our
customers' budgets, and that our business is will advertised by us and in turn our
customers due to the services and quality of services provided.
ElCov Ltd will be using market penetration to promote and sell their products and also
utilizing the marketing mix as much as they can to get the best results. For creating this
competitive advantage, the company would pitch the product at a low initial price on the
market in order to gain a share on the market and to encourage early adoption and trial.
We will also be utilizing the wealth of promotional tools including advertising, sales
promotion, direct marketing and social marketing and heavily promote the product as well
as our service because of its physical features, attributes, functionality, branding and
uniqueness of characteristics. Our service i.e. the use of our Future Look System will be
introduced into the market at a price that is very reasonble for its target customers.
ElCov Ltd is aspiring to be the cost leader in the market for the supply of their products. In
order to achieve this, we will be seeking innovations or alternative sources to supply our
product at a lower cost. This way, we will be able to lower our sale price and still make a
good profit which in turn would tend to push off other competitors for the product sales.
Our service will be sold to the focused target market highlighting its differenciation and
uniqueness of service which would bring an overall competitive advantage for the business.
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4.3 Service Business Analysis
Eloquent Coverings Ltd is currently in the "Hair" industry. This is a fair diverse industry. On
one end of the spectrum you have the traditional hair shop where a customer can go to
purchase a wig, while on the other end you have the fashionable boutique salons that sells (a
small variety) and dress their customers with these wigs, and also give advise to them as to
how they look with it. Right between these two services in where ElCov services falls as
well be providing a large range of wigs, and innovative system so that users can see how they
look before the fact of purchase, as well as trained staff to help guide customers in selecting
the most suitable wig.
Most similar salons are owner operated, with additional hairstyling or station employees,
or with independently contracted stylists who work on commission. (ElCov Ltd uses a mix
of these two models.)
Currently, most of the competitors on the local market buy their product from a local sales
person who get his products wholesale from hair manufacturing companies. ElCov has
intensions of leaving out this man in the middle which has his marked up price and liaise
directly with personnel from these manufacturing companies.
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4.3.1 Competition and Buying Patterns
The key element in purchase decisions of products made at the company's client level is trust
in the professional reputation and reliability of the business. The most important factor in
this market will be the quality of the products and service.
Clients also choose products based on proximity to their daily travels from home and work,
and good pricing.
The buying patterns of men and women are quite different. Typically men are more price or
convenience sensitive. Men typically care less about the task of getting a hair piece that
looks best on them. For them whatever is easiest works best. Women on the other hand
are more caught up in hair styling and tend to bond more with their stylists. Because they
bond more, they are much more loyal to their stylist. Based of this fact, they focus more on
quality of service.
The nature of competition where product is concerned in this industry boils down to who
provide the better quality product at a cheaper price and to have an extraordinary service
provided in order to keep customers. In line of the industry where service is concerned,
clients rarely compare service providers directly, but visits based on word-of-mouth
recommendation by friends, colleagues, family and other significant ones.
ElCov Ltd, being the only one in the service field that can provided the most accurate result
of look for a client, has no competition in this field and would use this differentiation as a
method in gain customers attention and then using the staff and service provided to gain
their trust.
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5.0 Strategy and Implementation Summary
Eloquent Coverings employs a strategy for creating a defendable position in an industry, to

cope successfully with the five competitive forces and thereby yield a superior return on
investment for the company. The generic strategies are approaches to outperforming
competitors in the industry. Eloquent Coverings will be utilizing the Differentiation Focus
strategy as their main mean of competing. With the implementation of this strategy on,
Eloquent Solutions will be able to market the uniqueness of the services promised to be
offered and potentially earn above-average returns from its industry.
Through the implementation of a fair, effective and competitive remuneration policy we
intend to optimize our human resource output and advancement. We need the right people
in the right place at the right time if we are to ensure optimum growth. We intend to
develop our team so that our people can grow as the company grows -- a mutually
beneficial relationship. As a result we intend to vigorously search and find the right people
for our organization.
5.1 SWOT Analysis
Eloquent Coverings Ltd has a valuable inventory of strengths that will help it succeed.
These strengths includes well trained staff in customer relations and customer-focus
business practices and more. Strengths are valuable, but it is also important to realize the
weaknesses the ElCov must address. These weaknesses include: lack brand equity that many
over its competitors have earned over years of service, and others.
ElCov strengths will help it capitalize on emerging opportunities. These opportunities
include, but are not limited to, an increase in income and publicity from use internet
services. Threats that ElCov should be aware of include, increasing technology that can
enhance other innovative competitor to successfully compete with us on the market.
The following are, the SWOT analysis information for Eloquent Coverings Ltd. These are the
current known strenghts, weakness, opportunities and threats.
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5.1.1 Strengths
Competitive prices for our products

Well trained staff in customer relations and customer-focus business practices
The only business on the local market to offer a service that the Future Look system
provided
A wide range of wigs available for all ethnic cultures
A unique, current business environment appropriate business model.
Strong relationship with our product provider often being able to negotiate lower
purchasing price for products
Rapid turnover rate based of market demand for product and profit margin
Clear vision of the market need
5.1.2 Weaknesses
The larger cost associated with the companys start-up

Lack of true experience running in running a business
As a new entrant to the market, ElCov lacks brand equity that many over its
competitors have earned over years of service.
5.1.3 Opportunities
The ability to spread fixed costs over a large area as sales increase, increasing
profit margin
The ability to grow on the market due to the current buying trend on the product
and calcuated increase in market demand expect
Can buy over smaller business the already have a name and push our product ans
services through them. The customer may see it as another business stepping
their game up, but in fact would be the same owners operating under a different
name, which brings profit from an additional stream
With the qualty of service and products, ElCov may be able to bounce other
competitors of the market, leave a great share for themselves.
Increase in income and publicity from use internet services
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5.1.4 Threats
Competition from already establish business that offer a wide range of our products
With increasing technology, there is a possibility that another competitot can invest
in a more innovative solution to provide the service that our current Future Look
system offers and cause us to become updated.
With current monitoring of the world econmic scales, if the local market were to
be affected by any decrease in employment or earnings, the client's in turn would
not have the full freedom of spending any leisure monies and before, therefore
causing our sales ratio to drop.
5.2 Competitive Edge

Our competitive edge is our dominance of high-technology service and traditional high-quality
wigs at a cost just below the average market price. Although there are many wig stores, and many
computer programming firms, none have brought the two crafts together as we have.
We focus on a special kind of customer, the person who wants very high quality of wig at a
faction of the cost, thoses that are about qualities of services, thoses that just want a product on
the go and others that like to try new trend and styles in the market and those that prefer making
a purchase and having it delievered at their door steps. Our customer might be part of a larger
corporations, small or medium business, or in a home office with or without a home-office
business. What is important to the customer is elegance, great customer relations, ease of use,
ergonomics, and practicality.
The product strategy is also based on quality, in this case the intersection of technical
understanding with very high quality of customer services and support.
An important competitive edge is our Future Look system, which allows a customer or client to see
themselveswearing their product of choice before they purchase it. This is actually a feature that
enhances the sense of quality and trust for our customers.
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5.3 Marketing Strategy
One core element of our strategy will be that of differentiation from our competitors. In
terms of marketing, we intend to sell our company as a differentiated focus strategic ally,
due to our Future Look system. In price for our products, we intend to offer reasonable and
competitive prices in comparison to competition and we need to be able to sustain that.
Market penetration through lower prices shall be undertaken where need be. Our service
marketing will strive to ensure that we establish long-term relationships with clients. Our
primary intention will be to sell a relationship more than services.
Our service marketing will emphasize the benefits of speed, interaction and flexibility to be
gained from utilizing our services. The approach will be entirely needs-driven and a
thorough understanding of the business requirements, business processes and technology
strategy of the customer being the basis on which an Eloquent Coverings Ltd solution will
be built. Once the needs and processes are understood and described, leading edge
products and best-of-industry skills will be applied to design and develop a fitting solution to
satisfy the need and enable the customer's business in the most cost effective way
5.4 Sales Strategy
One of ElCov Ltd sales strategy will be based on extremely professional interactions with
the customer. Typically the current competitors concentrate on being quick and somewhat
inexpensive, often at the expense of customer service. Anytime that a prospective customer
is speaking with someone at ElCov's the employee will have an opportunity to impress the
customer. Employee training will emphasize seizing these opportunities.
ElCov will also provide complimentary coffee for clients within to use their systems for view
their hair styles as well as provide a 5% discount on all items in the store for customers
that used the Future Look system. Each new customer will be able to participate in a
promotion the our company will be offering. Each customer would be given a card that is
punch each time they make a purchase at our business. After this card has been punch 10
times the customer will be given a coupon for a free chance to use the Future Look system as
well as 10% off all items store wide.
As customer feedback start to be collected, ElCov Ltd will keep looking and new and
improved ways in maintaining the competitive advantage through there sales strategy.
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5.4.1 Sales Forecast
Eloquent Covering Ltd will be receiving its income from sales of their products and uses of
their Future Look system.
ElCov Ltd expects a growth rate of between 10-25% each year for the next three (3) years.
Unit price per item could fluctuate however, the decrease or increase in selling price would
be a strategic move based on the moves that current competition on the market may take.
The sales are projected at levels shown below for the company to have a fair idea of how to
plan each financial year. If the sales were projected higher than the approximate value then
at the end of the financial year, the companies status would project a great profit income
than expect which would be somewhat of a misleading expectation of the companies
profits. If the sales were projected lower than the approximate value then the company
stand a chance in running into depth after seeking financial resources for the financial year.
The important elements of the Sales Forecasts are shown in the chart and table below.
Initial sales forecast indicate first year revenue of $363,861 increasing to $458,109 million
by the end of the second year, then $575,226 million by the end of the third year. These
figures are based on revenue from minimum average estimates from ElCov Ltd.
We expect income to increase steadily over the next three years, as the reputation of the
business and services to increase as the business becomes more apparent to target
markets and the general public.
The sales forecast table shows our expectations for the next three years. The attached
appendix shows the monthly growth.
Page 19

Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
1,784
2,020
2,500
203
213
335
235
132
157
250
274
390
250
200
210
300
290
467
275
300
287
722
270
390
245
4,686
1,124
320
450
300
5,788
1,275
390
535
425
7,044
Unit Prices
Use of Future Look system
Synthetic Machine Made Wigs
Year 1
$20.00
$240.00
Year 2
$20.00
$240.00
Year 3
$20.00
$240.00
Human Hair Hand Tied Cranial Prosthesis

Human Hair Machine Made Wigs
Hand-tied Synthetic Cranial Prosthesis
Vacuum Base Cranial Prosthesis
Custom Quality Breathable Base Cranial
Prosthesis
Standard Cap Wigs
$330.00
$310.00
$260.00
$270.00
$520.00
$330.00
$310.00
$260.00
$270.00
$520.00
$330.00
$310.00
$260.00
$270.00
$520.00
$90.00
$90.00
$90.00
Monofilament Cap Wigs

Capless Wigs
Lace Wigs
$120.00
$150.00
$500.00
$120.00
$150.00
$500.00
$120.00
$150.00
$500.00
$35,680
$48,720
$70,290
$103,850
$40,400
$60,000
$90,420
$120,900
$50,000
$72,000
$95,700
$144,770

Prosthesis
$61,100
$35,640
$81,640
$65,000
$54,000
$109,200
$71,500
$81,000
$149,240
Standard Cap Wigs

Capless Wigs
$64,980
$32,400
$58,500
$101,160
$38,400
$67,500
$114,750
$46,800
$80,250
$122,500
$715,300
$150,000
$896,980
$212,500
$1,118,510
Year 1
$0.00
$60.00
Year 2
$0.00
$60.00
Year 3
$0.00
$60.00
$198.00
$186.00
$117.00
$148.50
$312.00
$198.00
$186.00
$117.00
$148.50
$312.00
$198.00
$186.00
$117.00
$148.50
$312.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
Unit Sales
Prosthesis
Standard Cap Wigs
Capless Wigs
Lace Wigs
Total Unit Sales
Sales
Lace Wigs
Total Sales
Direct Unit Costs
Prosthesis
Standard Cap Wigs
Page 20

Capless Wigs
Lace Wigs
$82.50
$82.50
$82.50
$300.00
$300.00
$300.00
$0
$12,180
$42,174
$62,310
$27,495
$19,602
$48,984
$0
$15,000
$54,252
$72,540
$29,250
$29,700
$65,520
$0
$18,000
$57,420
$86,862
$32,175
$44,550
$89,544
$29,241
$16,200
$32,175
$73,500
$363,861
$45,522
$19,200
$37,125
$90,000
$458,109
$51,638
$23,400
$44,138
$127,500
$575,226
Direct Cost of Sales

Prosthesis
Standard Cap Wigs
Capless Wigs
Lace Wigs
Subtotal Direct Cost of Sales
Page 21
5.5 Milestones
The following table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning for
implementation of our business.
Page 22

Table: Milestones
Milestones
Milestone
Prepare Sample Milestone
Start Date
12/15/2011
End Date
12/16/2011
Budget
$0
Manager
Jude Bernard
Department
HR & Finance
Finish Business Plan

Acquire Financing
Website Development
12/16/2011
12/19/2011
1/2/2012
12/18/2011
1/2/2012
1/14/2012
$0
$0
$8,000
HR & Finance
HR & Finance
IT Department
1/3/2012
2/3/2012
$200,000
12/20/2011
12/20/2011
12/27/2011
12/27/2011
12/20/2011
12/27/2011
2/5/2012
2/6/2012
12/26/2011
12/26/2011
1/27/2012
1/8/2012
12/27/2011
2/13/2012
2/5/2012
2/6/2012
$50,000
$3,500
$42,000
$20,000
$4,000
$24,000
$0
$0
2/13/2012
2/13/2012
2/28/2012
3/1/2012
2/13/2012
2/27/2012
3/1/2012
3/1/2012
$2,000
$10,000
$0
$0
Jude Bernard
Jude Bernard
Rennie
Ramlochan
Rennie
Ramlochan
Adio Coltrust
Adio Coltrust
Adio Coltrust
Jude Bernard
Adio Coltrust
Adio Coltrust
Jude Bernard
Rennie
Ramlochan
Adio Coltrust
Adio Coltrust
Jude Bernard
Jude Bernard
1/2/2012
3/4/2012
$100,000
$463,500
Develop Future Look System

Obtain Building for Business
Legal Issues
Prep Building for operation
Purchasing Inventory Items
Logo Design
Opening Advertising Campaign
Hire Employees
Training Employees
Grande Opening
Marketing Campaign
Business Evaluation
Develop New Business
Approaches
Other Accessories
Totals
Jude Bernard
IT Department
Maketing & Development
HR & Finance
HR & Finance
IT Department
HR & Finance
HR & Finance
HR & Finance
Page 23

6.0 Management Summary
The management team of Eloquent Coverings Ltd. is comprised of experienced IT,

Marketing & Development and Human Resource Management & Finance specialist. Our
management team possesses a breadth of functional experience within each of their
respective areas of function. Mr. Bernard will share the senior HR Management and Finance
responsibilities, with Mr. Colthrust as the managing director of sales/marketing and
development and Mr. Ramlochan as head management of the IT Department and New
Technology Development
The organizational structure and personnel plan reflect our intentions to maintain an
organization that is customer oriented and technologically proficient, while efficiently
managing cost controls and productivity.
6.1 Personnel Plan
The are currently 3 employees at Eloquent Coverings Ltd. By the opening date the company
is expected to have a total of 10 employees and at the end of a 3 year period, a total of 15
employees. The growth of the company will be determined by how accurately and
efficiently the company is able to implement the facets of this business plan. The Personal
Plan table reflects the staffing level and salaries required to facilitate the company's growth
in the market.
As business income and power increase, so will the number in personnels increase in order
to better facilitate and manage the power gain in the market segmentation.
Table: Personnel
Personnel Plan
Year 1
$120,000
$90,000
$120,000
Year 2
$160,000
$96,000
$132,600
Year 3
$160,000
$105,000
$140,000
Total People
10
12
15
Total Payroll
$330,000
$388,600
$405,000
HR and Finance
IT and New Technology Development
Sales, Marketing and Developement
Page 24

7.0 Financial Plan
The premier element in our financial plan is initiating, maintaining, and improving the factors
that create, stabilize, and increase our cash flow. These factors are as follows:
1.
We must create visibility so as to create customer flow.

We must maintain a dependable, cheerful employee force so as to minimize
turnover.
3. We must create a brisk turnaround on our retail products, always maintaining
viable stock levels.
4. Set cash flow as first priority, growth as second, and profits as third.
5. Harvest willingness to follow the project objectives and contribute valuable input to
strategy and implementation decisions.
2.
Our financial plan for the next three years includes revenue streams from product sales and
service usage. The projections for the first year are therefore much different from the
starting balances for our last year. The major accompanying expense is a much higher
personnel payroll, inventory products, advertising, as well as high rent for the location, to
accommodate of business services.
We want to finance growth mainly through cash flow and equity. We recognize that this
means we will have to grow more slowly than we might like.
ElCov is seeking financing to achieve the goal of becoming a great provider of hair wigs and
visionary services. We will use this money to renovate the new space so that we can build
our clientele base, increase revenues, maintain a positive cash flow, and steadily increase
the net worth of the business with good management.
7.1 Start-up Funding
The following table depicts the total start-up funding estimate for Eloquent Coverings Ltd
to begin offering their services to the public comfortably from inception to 1 month.
Page 25

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$37,000
$750,000
$787,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$250,000
$500,000
$43,000
$543,000
$793,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$300,000
$0
$0
$300,000
Capital
Planned Investment
Owners
Entrepreneur
Additional Investment Requirement
Total Planned Investment
$30,000
$500,000
$0
$530,000
Loss at Start-up (Start-up Expenses)
($37,000)
Total Capital
$493,000
Total Capital and Liabilities
$793,000
Total Funding
$830,000
Page 26

7.2 Important Assumptions
The following table shows important financials assumptions for our plan, including a
projected interest rate for the long-term loan we are seeking. We are also assuming:
1.
No serious disability on the part of either owner which prevents her from working
No new direct competition for hair replacement services in Anytown in the next
three years
3. No sudden changes in licensing or technology which would make our services
obsolete
4. Access to equity capital and financing to support our financial plan.
5. Our financial progress based on realistic sales to minimum sales against highest
expenses.
6. There will not be an economic crash that would greatly hinder our target market's
access to their personal luxury finds.
2.
7.3 Break-even Analysis
Our Break-even Analysis will be based on running costs, that is, costs we shall incur in
keeping the business running, including salaries and wages, rent, computer maintenance
costs, water and electricity, and insurance amongst others. Hence many fixed costs shall be
included in these costs. We will thus ensure that our sales levels are running comfortably
above break-even. The following table summarizes our break-even analysis for ElCov Ltd.
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
581
$88,741
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$152.65
$77.65
$43,600
Page 27
7.4 Projected Profit and Loss
Initial marketing and training expenses will be relatively high as we seek to become known
on the market and staff get trained in provision of our services. This will be brought about by
the development of sales literature, advertising expenses, function expenses including
lunches and dinners with interested stakeholders. As our market share increases and capital
is generated, further marketing programs and the expansion of those in existence at the time
will be undertaken, to ensure market development. However with time these programs will
start generating revenue for the business, which we shall in turn reinvest. The following table
and charts presents the profit and loss information for Eloquent Coverings
Page 28

Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Year 1
$715,300
$363,861
Year 2
$896,980
$458,109
Year 3
$1,118,510
$575,226
Other Costs of Sales

Total Cost of Sales
$0
$363,861
$0
$458,109
$0
$575,226
Gross Margin
Gross Margin %
$351,439
49.13%
$438,871
48.93%
$543,284
48.57%
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other
$330,000
$60,000
$0
$84,000
$13,200
$36,000
$0
$0
$388,600
$0
$0
$84,000
$0
$0
$0
$0
$405,000
$0
$0
$0
$0
$0
$0
$0
Total Operating Expenses
$523,200
$472,600
$405,000
($171,761)
($171,761)
($33,729)
($33,729)
$138,284
$138,284
$29,068
$0
$17,910
$0
$8,680
$32,401
($200,829)
-28.08%
($51,639)
-5.76%
$97,203
8.69%
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Page 29
Page 30
7.5 Projected Cash Flow
The chart and table below provide details to the company's cash flow situation. The chart
shows a monthly breakdown while the table shows a year-end statement.
Page 31

Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash from Operations

Cash Sales
Subtotal Cash from Operations
$715,300
$715,300
$896,980
$896,980
$1,118,510
$1,118,510
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
$0
$0
$60,000
$0
$0
$0
$0
$775,300
$0
$0
$0
$0
$0
$0
$0
$896,980
$0
$0
$0
$0
$0
$0
$0
$1,118,510
Year 1
Year 2
Year 3
$330,000
$579,441
$909,441
$388,600
$654,200
$1,042,800
$405,000
$650,963
$1,055,963
$0
$0
$0
$66,000
$0
$0
$0
$0
$70,000
$0
$0
$0
$0
$80,000
$0
$0
$0
$975,441
$0
$0
$1,112,800
$0
$0
$1,135,963
($200,141)
$342,859
($215,820)
$127,039
($17,453)
$109,586
Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Page 32
7.6 Projected Balance Sheet
The Balance Sheet shows our projected steady increase in net worth with no accounts
receivable, our cash sales go immediately into our assets. We also expect a steady increase in
retained earnings. The following table and chart shows the projected balance sheet for
Eloquent Coverings Ltd.
Page 33

Table: Balance Sheet
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Current Assets
Cash
Inventory
Total Current Assets
$342,859
$124,035
$200,000
$666,894
$127,039
$156,163
$200,000
$483,202
$109,586
$196,086
$200,000
$505,672
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$30,000
$0
$30,000
$696,894
$30,000
$0
$30,000
$513,202
$30,000
$0
$30,000
$535,672
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$110,722
$0
$60,000
$170,722
$48,670
$0
$60,000
$108,670
$53,937
$0
$60,000
$113,937
$234,000
$164,000
$84,000
Total Liabilities
$404,722
$272,670
$197,937
$530,000
($37,000)
($200,829)
$292,172
$530,000
($237,829)
($51,639)
$240,533
$530,000
($289,468)
$97,203
$337,736
Total Liabilities and Capital
$696,894
$513,202
$535,672
Net Worth
$292,172
$240,533
$337,736
Assets
Paid-in Capital
Retained Earnings
Earnings
Total Capital
7.7 Business Ratios
The following table presents important business ratios for Eloquent Coverings Ltd. These
figures come from the communications services industry, as determined by the Standard
Industry Classification (SIC) Index.
Page 34

Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Year 1
0.00%
Year 2
25.40%
Year 3
24.70%
Industry Profile
3.38%
17.80%
28.70%
95.70%
4.30%
100.00%
30.43%
38.97%
94.15%
5.85%
100.00%
36.61%
37.34%
94.40%
5.60%
100.00%
3.43%
47.76%
62.16%
37.84%
100.00%
24.50%
33.58%
58.08%
41.92%
21.17%
31.96%
53.13%
46.87%
21.27%
15.68%
36.95%
63.05%
24.44%
22.82%
47.26%
52.74%
100.00%
49.13%
77.21%
8.39%
-24.01%
100.00%
48.93%
54.68%
0.00%
-3.76%
100.00%
48.57%
39.88%
0.00%
12.36%
100.00%
100.00%
69.91%
2.38%
2.30%
3.91
4.45
4.44
1.64
3.18
58.08%
-68.74%
-28.82%
3.01
53.13%
-21.47%
-10.06%
2.72
36.95%
38.37%
24.19%
1.26
60.85%
11.12%
4.35%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin

Return on Equity
-28.08%
-68.74%
-5.76%
-21.47%
8.69%
28.78%
n.a
n.a
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
5.57
6.23
3.27
12.17
3.27
12.17
n.a
n.a
Payment Days
Total Asset Turnover
27
1.03
49
1.75
29
2.09
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
1.39
0.42
1.13
0.40
0.59
0.58
n.a
n.a
Liquidity Ratios
Net Working Capital
$496,172
$374,533
$391,736
n.a
Interest Coverage
-5.91
-1.88
15.93
n.a
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.97
24%
3.18
2.45
0.00
0.57
21%
3.01
3.73
0.00
0.48
21%
2.72
3.31
0.00
n.a
n.a
n.a
n.a
n.a
Page 35
Appendix
Table: Sales Forecast
Sales Forecast
Unit Sales
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
100
107
114
122
131
140
150
160
171
183
196
210

10
11
30
10
15
25
15
15
20
20
10
20
15
10
15
10
10
15
12
15
20
16
20
25
20
20
25
20
25
35
25
27
45
30
35
60

Prosthesis
10
5
10
10
5
12
10
7
10
15
10
15
15
5
10
10
10
5
20
10
5
20
15
15
20
5
10
25
10
10
35
20
20
45
30
35
Standard Cap Wigs

Capless Wigs
35
25
45
38
25
35
42
30
30
46
25
25
51
20
25
50
15
25
45
10
20
68
25
30
75
15
25
82
15
30
90
25
45
100
40
55
30
311
35
317
20
313
15
323
15
312
10
300
10
317
25
419
10
396
15
450
25
553
35
675
Month 1
$20.00
$240.00
Month 2
$20.00
$240.00
Month 3
$20.00
$240.00
Month 4
$20.00
$240.00
Month 5
$20.00
$240.00
Month 6
$20.00
$240.00
Month 7
$20.00
$240.00
Month 8
$20.00
$240.00
Month 9
$20.00
$240.00
Month 10
$20.00
$240.00
Month 11
$20.00
$240.00
Month 12
$20.00
$240.00
$0.00
$0.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00
$330.00
$310.00
$260.00

Prosthesis
$0.00
$0.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
$270.00
$520.00
Standard Cap Wigs
$0.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$90.00
$0.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
$120.00
Capless Wigs
Lace Wigs
$0.00
$0.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$150.00
$500.00
$2,000
$2,140
$2,280
$2,440
$2,620
$2,800
$3,000
$3,200
$3,420
$3,660
$3,920
$4,200

$2,400
$3,630
$2,400
$4,950
$3,600
$4,950
$4,800
$3,300
$3,600
$3,300
$2,400
$3,300
$2,880
$4,950
$3,840
$6,600
$4,800
$6,600
$4,800
$8,250
$6,000
$8,910
$7,200
$11,550
$9,300
$7,750
$6,200
$6,200
$4,650
$4,650
$6,200
$7,750
$7,750
$10,850
$13,950
$18,600
$2,600
$2,600
$2,600
$3,900
$3,900
$2,600
$5,200
$5,200
$5,200
$6,500
$9,100
$11,700

Prosthesis
$1,350
$5,200
$1,350
$6,240
$1,890
$5,200
$2,700
$7,800
$1,350
$5,200
$2,700
$2,600
$2,700
$2,600
$4,050
$7,800
$1,350
$5,200
$2,700
$5,200
$5,400
$10,400
$8,100
$18,200
Lace Wigs
Total Unit Sales
Unit Prices
Sales
Page 1
Appendix
Standard Cap Wigs
$3,150
$3,420
$3,780
$4,140
$4,590
$4,500
$4,050
$6,120
$6,750
$7,380
$8,100
$9,000

Capless Wigs
Lace Wigs
$3,000
$6,750
$15,000
$3,000
$5,250
$17,500
$3,600
$4,500
$10,000
$3,000
$3,750
$7,500
$2,400
$3,750
$7,500
$1,800
$3,750
$5,000
$1,200
$3,000
$5,000
$3,000
$4,500
$12,500
$1,800
$3,750
$5,000
$1,800
$4,500
$7,500
$3,000
$6,750
$12,500
$4,800
$8,250
$17,500
Total Sales
$54,380
$56,600
$48,600
$49,530
$42,860
$36,100
$40,780
$64,560
$51,620
$63,140
$88,030
$119,100
Direct Unit Costs
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

0.00%
25.00%
60.00%
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00
$0.00
$60.00
$198.00

60.00%
45.00%
55.00%
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50
$186.00
$117.00
$148.50

Prosthesis
Standard Cap Wigs
60.00%
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
$312.00
45.00%
50.00%
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
$40.50
$60.00
Capless Wigs
Lace Wigs
55.00%
60.00%
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$82.50
$300.00
$0
$600
$0
$600
$0
$900
$0
$1,200
$0
$900
$0
$600
$0
$720
$0
$960
$0
$1,200
$0
$1,200
$0
$1,500
$0
$1,800

$2,178
$5,580
$1,170
$2,970
$4,650
$1,170
$2,970
$3,720
$1,170
$1,980
$3,720
$1,755
$1,980
$2,790
$1,755
$1,980
$2,790
$1,170
$2,970
$3,720
$2,340
$3,960
$4,650
$2,340
$3,960
$4,650
$2,340
$4,950
$6,510
$2,925
$5,346
$8,370
$4,095
$6,930
$11,160
$5,265

Prosthesis
$743
$3,120
$743
$3,744
$1,040
$3,120
$1,485
$4,680
$743
$3,120
$1,485
$1,560
$1,485
$1,560
$2,228
$4,680
$743
$3,120
$1,485
$3,120
$2,970
$6,240
$4,455
$10,920
Standard Cap Wigs
$1,418
$1,539
$1,701
$1,863
$2,066
$2,025
$1,823
$2,754
$3,038
$3,321
$3,645
$4,050
$1,500
$1,500
$1,800
$1,500
$1,200
$900
$600
$1,500
$900
$900
$1,500
$2,400
Capless Wigs
Lace Wigs
$3,713
$9,000
$2,888
$10,500
$2,475
$6,000
$2,063
$4,500
$2,063
$4,500
$2,063
$3,000
$1,650
$3,000
$2,475
$7,500
$2,063
$3,000
$2,475
$4,500
$3,713
$7,500
$4,538
$10,500
$29,021
$30,303
$24,896
$24,746
$21,116
$17,573
$19,868
$33,047
$25,013
$31,386
$44,879
$62,018

Subtotal Direct Cost of Sales
Page 2
Appendix
Table: Personnel
Personnel Plan
Month 1
$10,000
$7,500
$10,000
Month 2
$10,000
$7,500
$10,000
Month 3
$10,000
$7,500
$10,000
Month 4
$10,000
$7,500
$10,000
Month 5
$10,000
$7,500
$10,000
Month 6
$10,000
$7,500
$10,000
Month 7
$10,000
$7,500
$10,000
Month 8
$10,000
$7,500
$10,000
Month 9
$10,000
$7,500
$10,000
Month 10
$10,000
$7,500
$10,000
Month 11
$10,000
$7,500
$10,000
Month 12
$10,000
$7,500
$10,000
Total People
10
10
10
10
10
10
10
10
10
10
10
10
Total Payroll
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
HR and Finance
IT and New Technology Development
Sales, Marketing and Developement
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Month 1
$54,380
$29,021
Month 2
$56,600
$30,303
Month 3
$48,600
$24,896
Month 4
$49,530
$24,746
Month 5
$42,860
$21,116
Month 6
$36,100
$17,573
Month 7
$40,780
$19,868
Month 8
$64,560
$33,047
Month 9
$51,620
$25,013
Month 10
$63,140
$31,386
Month 11
$88,030
$44,879
Month 12
$119,100
$62,018
Other Costs of Sales

Total Cost of Sales
$0
$29,021
$0
$30,303
$0
$24,896
$0
$24,746
$0
$21,116
$0
$17,573
$0
$19,868
$0
$33,047
$0
$25,013
$0
$31,386
$0
$44,879
$0
$62,018
Gross Margin
Gross Margin %
$25,360
46.63%
$26,297
46.46%
$23,705
48.77%
$24,785
50.04%
$21,745
50.73%
$18,528
51.32%
$20,913
51.28%
$31,514
48.81%
$26,608
51.54%
$31,754
50.29%
$43,152
49.02%
$57,083
47.93%
Expenses
Payroll
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
Marketing/Promotion
Depreciation
Rent
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
$5,000
$0
$7,000
Utilities
Insurance
Payroll Taxes
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$1,100
$3,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
$43,600
($18,241)
($18,241)
($17,303)
($17,303)
($19,896)
($19,896)
($18,816)
($18,816)
($21,856)
($21,856)
($25,073)
($25,073)
($22,688)
($22,688)
($12,087)
($12,087)
($16,993)
($16,993)
($11,846)
($11,846)
($449)
($449)
$13,483
$13,483
$2,700
$2,649
$2,599
$2,548
$2,498
$2,448
$2,397
$2,347
$2,296
$2,246
$2,195
$2,145
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($20,940)
($19,952)
($22,494)
($21,364)
($24,353)
($27,520)
($25,085)
($14,433)
($19,289)
($14,092)
($2,644)
$11,338
-38.51%
-35.25%
-46.28%
-43.13%
-56.82%
-76.23%
-61.51%
-22.36%
-37.37%
-22.32%
-3.00%
9.52%
Other
Total Operating Expenses
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
15%
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
$54,380
$54,380
$56,600
$56,600
$48,600
$48,600
$49,530
$49,530
$42,860
$42,860
$36,100
$36,100
$40,780
$40,780
$64,560
$64,560
$51,620
$51,620
$63,140
$63,140
$88,030
$88,030
$119,100
$119,100
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$0
$0
$5,000
$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
Subtotal Cash Received
$59,380
$61,600
$53,600
$54,530
$47,860
$41,100
$45,780
$69,560
$56,620
$68,140
$93,030
$124,100
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
Expenditures from Operations

Cash Spending
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
$27,500
Bill Payments
Subtotal Spent on Operations
$2,862
$30,362
$84,720
$112,220
$51,187
$78,687
$38,697
$66,197
$38,647
$66,147
$38,596
$66,096
$38,546
$66,046
$39,386
$66,886
$64,284
$91,784
$38,830
$66,330
$52,715
$80,215
$90,972
$118,472
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Received
Cash from Operations
Cash Sales
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
0.00%
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$0
$5,500
$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
$35,862
$117,720
$84,187
$71,697
$71,647
$71,596
$71,546
$72,386
$97,284
$71,830
$85,715
$123,972
$23,518
$566,518
($56,120)
$510,398
($30,587)
$479,812
($17,167)
$462,645
($23,787)
$438,858
($30,496)
$408,362
($25,766)
$382,596
($2,826)
$379,770
($40,664)
$339,106
($3,690)
$335,415
$7,315
$342,731
$128
$342,859
Page 5
Appendix
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
Starting Balances
Current Assets
Cash
Inventory
$543,000
$20,000
$566,518
$58,041
$510,398
$60,606
$479,812
$55,711
$462,645
$50,965
$438,858
$49,850
$408,362
$52,277
$382,596
$52,410
$379,770
$66,093
$339,106
$61,081
$335,415
$62,772
$342,731
$89,757
$342,859
$124,035

$200,000
$763,000
$200,000
$824,559
$200,000
$771,004
$200,000
$735,522
$200,000
$713,610
$200,000
$688,708
$200,000
$660,639
$200,000
$635,006
$200,000
$645,863
$200,000
$600,186
$200,000
$598,187
$200,000
$632,488
$200,000
$666,894
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$0
$30,000
$793,000
$30,000
$854,559
$30,000
$801,004
$30,000
$765,522
$30,000
$743,610
$30,000
$718,708
$30,000
$690,639
$30,000
$665,006
$30,000
$675,863
$30,000
$630,186
$30,000
$628,187
$30,000
$662,488
$30,000
$696,894
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
$0
$0
$0
$82,999
$0
$5,000
$49,897
$0
$10,000
$37,409
$0
$15,000
$37,360
$0
$20,000
$37,311
$0
$25,000
$37,263
$0
$30,000
$37,214
$0
$35,000
$63,004
$0
$40,000
$37,116
$0
$45,000
$49,709
$0
$50,000
$87,154
$0
$55,000
$110,722
$0
$60,000
Subtotal Current Liabilities
$0
$87,999
$59,897
$52,409
$57,360
$62,311
$67,263
$72,214
$103,004
$82,116
$99,709
$142,154
$170,722
$300,000
$294,500
$289,000
$283,500
$278,000
$272,500
$267,000
$261,500
$256,000
$250,500
$245,000
$239,500
$234,000
Total Liabilities
$300,000
$382,499
$348,897
$335,909
$335,360
$334,811
$334,263
$333,714
$359,004
$332,616
$344,709
$381,654
$404,722
Paid-in Capital
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
$530,000
Retained Earnings
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
($37,000)
Earnings
Total Capital
$0
$493,000
($20,940)
$472,060
($40,892)
$452,108
($63,387)
$429,614
($84,750)
$408,250
($109,104)
$383,896
($136,624)
$356,376
($161,708)
$331,292
($176,142)
$316,859
($195,430)
$297,570
($209,522)
$283,478
($212,166)
$280,834
($200,829)
$292,172
Total Liabilities and Capital
$793,000
$854,559
$801,004
$765,522
$743,610
$718,708
$690,639
$665,006
$675,863
$630,186
$628,187
$662,488
$696,894
Net Worth
$493,000
$472,060
$452,108
$429,614
$408,250
$383,896
$356,376
$331,292
$316,859
$297,570
$283,478
$280,834
$292,172
Page 6

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Eloquent Coverings LTD - Company's Business Plan

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Confidentiality Agreement

Eloquent Coverings Business Plan

Services and Products

Eloquent Coverings Business Plan

Female between the ages of 17 - 55 of average class of living

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

2.1 Company Ownership

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

3.0 Products and Services

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Eloquent Coverings employs a strategy for creating a defendable position in an industry, to

5.1 SWOT Analysis

Eloquent Coverings Business Plan

Competitive prices for our products

The larger cost associated with the companys start-up

Eloquent Coverings Business Plan

5.2 Competitive Edge

Eloquent Coverings Business Plan

5.4 Sales Strategy

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Human Hair Hand Tied Cranial Prosthesis

Monofilament Cap Wigs

Hand-tied Synthetic Cranial Prosthesis

Standard Cap Wigs

Eloquent Coverings Business Plan

Direct Cost of Sales

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

Finish Business Plan

Develop Future Look System

Eloquent Coverings Business Plan

The management team of Eloquent Coverings Ltd. is comprised of experienced IT,

6.1 Personnel Plan

Eloquent Coverings Business Plan

We must create visibility so as to create customer flow.

7.1 Start-up Funding

Eloquent Coverings Business Plan

Liabilities and Capital

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

Eloquent Coverings Business Plan

7.3 Break-even Analysis

Eloquent Coverings Business Plan

7.4 Projected Profit and Loss

Eloquent Coverings Business Plan

Other Costs of Sales

Total Operating Expenses

Profit Before Interest and Taxes

Eloquent Coverings Business Plan

Eloquent Coverings Business Plan

7.5 Projected Cash Flow

Eloquent Coverings Business Plan