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InteliChild Business Plan
InteliChild.c om offers bright children an entertaining plac e to interac t with eac h other, the
Web, educators, and the world in general. It generates traffic first, valuation for investors, and
eventually commerce and profits. It is a healthy plac e for kids to play, for parents and sc hools to
buy, and a creative and fair work environment for employees.
The InteliChild.c om e-commerce projec t is the natural evolution for the InteliChild.c om Internet
presence. The site will market and sell selec ted toys, books, and software products. It will also
produce Web products and Web applications that will increase market share, promote name
rec ognition, and maximize efficiency.
The Company
The present InteliChild.c om is a start-up company with four full-time employees. The company
was incorporated as a California C corporation owned by its principal founders, at 25% ownership
each. (Name Omitted) Capital partners ac quired 50% of the company. The company has a
single office. The initial website is at www.citruscoolkids.com.
Our key competitive advantage is the in-house knowledge base we have developed. Our
competitor spends five to 10 times the amount of money we do outsourcing to expensive
companies for services we perform in-house. The same will take plac e with the InteliChild.c om
website. We already have the SQL™ server and ColdFusion™ programming expertise, and we
will be adding the Flash™ integration of these skills.
· Toys and Games: carefully selec ted toys and games that appeal to the target market,
the parents of the target market, and educators.
· Books: there should be a selec tion of books that appeal specifically to the parents and
educators of the target market, so that these interested adults can go to this site and
order books about their children. In addition, of course there is also a selec tion of books
to be ordered by and for the kids to read.
· Software: carefully selec ted software to appeal to the target market and target
parents and educators.
The Internet reinvents itself every three months, or even faster. Therefore, our strategy for
future development is to remain positioned with enough flexibility to adapt new technologies, and
adapt to changes quickly.
The Market
The InteliChild.c om market has been expanding exponentially with the advances of tec hnology
in the teac hing sectors and the ac ceptance of tec hnology as a teaching aid. The critical
component to our entrance into the market will be approval and support from the sc hool
communities - including teachers, the PTA, and special education programs.
While we have plans to expand into international territory, our initial launch will target our most
important market - the American upper class. We know that most of our clients drive BMW's
and have very good taste - they spend money on their children bec ause they can apprec iate
the technology that we have created. They also generally have high bandwidth c onnec tions,
and are impressed by first-class design.
Financial Considerations
Our start-up costs are high bec ause of our commitment to dominate the Internet market plac e.
The Break-even Analysis indicates we reach steady-state break-even in this first year.
The sales forec ast is based on increasing website traffic and increasing sales per unique user
session. Sales are projec ted to rise exponentially from Year 1 to Year 3. The forec ast obviously
depends on traffic increase. We plan to lose money for at least three years while we build traffic
and develop our position for the long-term future.
1.1 Objectives
· Traffic, as measured in unique user sessions: 100,000 unique user sessions in June,
Year 1; 450,000 in Dec ember, Year 1; 3.5 million in Year 2; and 5 million in Year 3.
· Sell-through, as measured in dollar sales per unique visit: a high of $0.58 per unique visit
in Dec ember of Year 1; increasing to $0.83 in Year 2; and $0.92 in Year 3.
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InteliChild Business Plan
· Ac quisition or Initial public offering (IPO) in Year 4, with a valuation of more than $20
million. This assumes of course the market valuations based on sales and earnings,
which are relatively high as this plan is written.
1.2 Mission
InteliChild.c om offers bright children an entertaining plac e to interac t with eac h other, the
Web, educators, and the world in general. It generates traffic first, valuation for investors, and
eventually commerce and profits. It is a healthy plac e for kids to play, for parents and sc hools to
buy, and a creative and fair work environment for employees.
2. The projec t will succeed if it can capitalize on the traffic that InteliChild.c om produces,
and turn the user sessions into dollars through the commerce site.
3. The sales proc ess must be easy to administer and flexible enough to ac commodate the
needs of InteliChild, which is not ready to take on more employees to do so.
Our development costs are high, but bec ause we are now loc ated in Oregon instead of the
Silicon Valley, our human resources costs are not as high as they might be - particularly for the
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InteliChild Business Plan
talented programmers that we need. Marketing expenses are also high, but spending on the
costly development of this site without promoting it appropriately would make it difficult to
gather together the traffic necessary to make this a success.
Our loc ation leverages our partner potential, even though we are paying a premium for space
and for talent due to development costs.
Assets
Non-cash Assets from Start-up $5,000
Cash Requirements from Start-up $494,000
Additional Cash Raised $0
Cash Balance on Starting Date $494,000
Total Assets $499,000
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $532,750
Total Planned Investment $532,750
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InteliChild Business Plan
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $1,000
Software $2,500
Design Work $5,000
Programming $15,000
Insurance $250
Rent $500
Research and Development $1,000
Hosting Setup $3,500
Other $5,000
Total Start-up Expenses $33,750
Start-up Assets
Cash Required $494,000
Start-up Inventory $0
Other Current Assets $5,000
Long-term Assets $0
Total Assets $499,000
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InteliChild Business Plan
25% ownership eac h. (Name Omitted) Capital partners ac quired 50% of the company.
3.0 Products
InteliChild will be offering a steadily increasing mix of three lines of products:
1. Toys and Games: carefully selec ted toys and games that appeal to the target market,
the parents of the target market, and educators.
2. Books: there should be a selec tion of books that appeal specifically to the parents and
educators of the target market, so that these interested adults can go to this site and
order books about their children. In addition, of course there is also a selec tion of
books to be ordered by and for the kids to read.
3. Software: carefully selec ted software to appeal to the target market and target
parents and educators.
This level of detail was considered proprietary and was removed from the plan for purposes of
illustration. If you are using this sample plan as an example, then insert here a detailed
description of your competitors for your plan.
3.4 Sourcing
In the real plan this section referred in detail to distributors and products they carried. This
detail was considered proprietary and strategic, and was omitted from the sample plan for
purposes of illustration. If you are using this plan as an example, then in this section you
should have detailed disc ussion of how the products to be sold can be purchased from
manufac turers and distributors.
3.5 Technology
The InteliChild.c om e-commerce site will be built on a three-tier structure. Driven by SQL™
servers and an IIS™ Web server bac ked with bandwidth, the site will be coded mostly in
ColdFusion™ and ASP™. We will be taking our registration databases live to be able to email
updates on products and the website to customers. We will offer customers the option to take
themselves out of the list.
The information architec ture will be based on four fundamental arenas - the free valuable
information arena, the product detail arena, the final purchasing arena, and the purchase
administration area.
The purchase arena will require a Verisign™ certificate and a Cybercash™ connec tion. That will
begin immediately bec ause dealing with Cybercash™ can sometimes be a lengthy proc ess.
The administrative arena will be hosted on mirror servers that query to the live databases for
migration into loc al databases. This server is hidden from Internet traffic and kept under high
security even within the company.
The entire set-up will be somewhat costly. We will need five servers, two for in-house
reasons, and three for Web hosting reasons. Two of the Web host servers will be serving
traffic through ColdFusion™ and ASP™ in c luster, and the third will be a dedicated SQL™ server.
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InteliChild Business Plan
communities - including teachers, the PTA, and special education programs.
1. The kids themselves. We include ages 5-9 and ages 10-14 in our market statistics
bec ause these are the breakdowns available at www.census.gov, and we include only
10% of the total in eac h c ategory.
2. Parents. We include 10% of the parents, assuming that leads to an average combined
income above $100,000. Most of these people live in suburban areas, but the urban upper
class is also a major component. [Editor note: details for this sample plan are not
necessarily correc t.]
3. Educational institutions for the children of the upper class. This includes day care
and private sc hools. Penetrating this market is excellent bec ause it generates leads to
our other targets. We include 107,000 sc hools in the U.S. in our table.
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InteliChild Business Plan
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InteliChild Business Plan
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InteliChild Business Plan
Our business model is based on the sales of our products over the website. Bec ause the site is
also intended to increase brand equity and awareness, we are building for high traffic. Our model
requires giving users an excellent free experience and to develop trust to increase sell-
through. We plan to lose money for at least three years while we build traffic and develop our
position for the long-term future.
The traffic forec ast is based on increasing sessions, increasing page views per session, and
increasing orders per session. The bottom line called "sell-through" is the overall dollars in
order per user session, an important indicator that should be increasing over time.
Front End
Bec ause InteliChild.c om's target customers are all affluent, we have the luxury of using the
latest technologies to impress the visitors with excellent design and animation. We plan to
release the site entirely in Shockwave™ format as almost 90% of our visitors will already have
it installed.
We will carry on the colorful and extremely well branded design of our company literature and
logo - the dec isions on basic aesthetics will not get in the way. The site will have a colorful and
intelligent design, taking the ad campaign and product art into an interac tive medium on the
Web.
Back End
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InteliChild Business Plan
The InteliChild.c om e-commerce site will be built on a three-tier structure. Driven by SQL™
servers and an IIS™ Web server bac ked with bandwidth, the site will be coded mostly in
ColdFusion™ and ASP™. We will be taking our registration databases live to be able to email
updates on products and the website to customers. We will offer customers the option to take
themselves out of the list.
The purchase arena will require a Verisign™ certificate and a Cybercash™ connec tion. That will
begin immediately bec ause dealing with Cybercash™ can sometimes be a lengthy proc ess.
The administrative arena will be hosted on mirror servers that query to the live databases for
migration into loc al databases. This server is hidden from Internet traffic and kept under high
security even within the company.
The entire set-up will be somewhat costly. We will need five servers, two for in-house
reasons, and three for Web hosting reasons. Two of the Web host servers will be serving
traffic through ColdFusion™ and ASP™ in c luster, and the third will be a dedicated SQL™ server.
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InteliChild Business Plan
increasing sales per unique user session. Sales are projec ted to rise exponentially from 2000
through 2002. The forec ast obviously depends on traffic increase.
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InteliChild Business Plan
Sales
Toys and Games $528,660 $1,837,500 $3,375,000
Books $92,380 $350,000 $1,500,000
Software $144,160 $700,000 $1,500,000
Total Sales $765,200 $2,887,500 $6,375,000
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InteliChild Business Plan
6.7 Milestones
The milestones graphic illustrates key implementation ac tivities. The most important milestone to
reach will be the design templates. During that time we will be putting together the bac k-end
phases, and both milestones should be ac hieved at the same time. After that point, integration
can begin between the bac k-end and the front-end phases. Our next milestone will be the beta
release, followed by the full launch two weeks later.
Table: Milestones
Milestones
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InteliChild Business Plan
More sample text here, not useful for purposes of example, describing the people involved and
the management structure.
On the surfac e, however, we have the president dealing with three direc t reports: admin/
finance, sales/marketing, and web development. In fac t we are not going to manage with a
strict hierarchy, bec ause we need to emphasize the team. Still, particularly as we grow in
size, structure is necessary. We will want to preserve dec ision-making power, and the ability
to ac t, rather than trying to do everything by consensus.
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InteliChild Business Plan
Person 3: More sample text here, not useful for purposes of example, describing the people
involved and the management structure.
Person 4: More sample text here, not useful for purposes of example, describing the people
involved and the management structure.
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InteliChild Business Plan
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Production Personnel
VP Support $33,000 $75,000 $90,000
Support Engineers $27,000 $65,000 $90,000
Support Technicians $21,000 $60,000 $75,000
Other $0 $25,000 $50,000
Subtotal $81,000 $225,000 $305,000
Other Personnel
CTO $60,000 $75,000 $75,000
Devel Systems $39,800 $62,000 $90,000
Devel Engineers $22,500 $75,000 $100,000
Other $0 $50,000 $75,000
Subtotal $122,300 $262,000 $340,000
Total People 18 18 18
1. The exit strategy is ac quisition in 2003, valuing the company at more than $20 million.
2. Equity plan and valuations at time of exit are detailed in the section that follows, "Exit
Strategy." The plan assumes an ending valuation of $20 million based on market trends,
with IRR of more than 100% for all investors.
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InteliChild Business Plan
1. Continued growth of Internet usage. We ac cept published forec asts that say 4% of
the world's population presently uses the Internet, and that will grow to 11% by 2005.
That's strong growth.
2. No e-commerce disaster sc enarios. We'll have no huge problems with c redit card
authorization, shipping, etc.
3. Continued support of financial markets, which means continued rise in valuations of
Internet companies, even Internet companies losing money. The increase in valuation is
critical to our financial strategy.
One of the more important assumptions is that we can increase sales at a very high rate without
corresponding increase in operating expenses. This is bec ause of the leverage available in use of
Internet technology as our main marketing and sales channel.
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InteliChild Business Plan
Assumptions:
Average Per-Unit Revenue $29.61
Average Per-Unit Variable Cost $11.84
Estimated Monthly Fixed Cost $158,950
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InteliChild Business Plan
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InteliChild Business Plan
Operating Expenses
Other Expenses:
Other Payroll $122,300 $262,000 $340,000
Consultants $0 $0 $0
Software & Equipment $19,000 $0 $0
Total Other Expenses $141,300 $262,000 $340,000
Other % 18.47% 9.07% 5.33%
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InteliChild Business Plan
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InteliChild Business Plan
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InteliChild Business Plan
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InteliChild Business Plan
Current Assets
Cash $184,945 $3,338 $1,863,603
Accounts Receivable $46,156 $174,171 $384,534
Inventory $122,342 $399,522 $516,071
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $358,443 $582,032 $2,769,209
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $2,000 $2,000 $2,000
Total Long-term Assets ($2,000) ($2,000) ($2,000)
Total Assets $356,443 $580,032 $2,767,209
Current Liabilities
Accounts Payable $369,230 $133,868 $240,045
Current Borrowing $0 $15,000 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $369,230 $148,868 $240,045
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InteliChild Business Plan
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InteliChild Business Plan
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 277.35% 120.78% 7.56%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 43.42% 52.21% 55.22% 35.35%
Selling, General & Administrative Expenses 250.14% 36.83% 22.34% 14.05%
Advertising Expenses 83.75% 0.00% 0.00% 4.21%
Profit Before Interest and Taxes -205.84% 16.51% 33.39% 1.42%
Main Ratios
Current 0.97 3.91 11.54 1.71
Quick 0.64 1.23 9.39 0.59
Total Debt to Total Assets 193.36% 80.83% 20.24% 64.96%
Pre-tax Return on Net Worth 475.32% 399.37% 94.96% 3.46%
Pre-tax Return on Assets -443.77% 76.54% 75.74% 9.88%
Activity Ratios
Accounts Receivable Turnover 1.66 1.66 1.66 n.a
Collection Days 49 139 160 n.a
Inventory Turnover 10.91 4.43 5.57 n.a
Accounts Payable Turnover 5.18 12.17 12.17 n.a
Payment Days 27 56 23 n.a
Total Asset Turnover 2.15 4.98 2.30 n.a
Debt Ratios
Debt to Net Worth 0.00 4.22 0.25 n.a
Current Liab. to Liab. 0.54 0.32 0.43 n.a
Liquidity Ratios
Net Working Capital ($10,787) $433,163 $2,529,163 n.a
Interest Coverage -236.27 14.56 65.00 n.a
Additional Ratios
Assets to Sales 0.47 0.20 0.43 n.a
Current Debt/Total Assets 104% 26% 9% n.a
Acid Test 0.51 0.06 7.78 n.a
Sales/Net Worth 0.00 25.98 2.89 n.a
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InteliChild Business Plan
Dividend Payout 0.00 0.00 0.00 n.a
1. The Investment Analysis table details how we expec t valuation to proc eed over time,
linked in to the planned rounds of financing.
2. The table included here shows how we plan to distribute equity and shares over time, and
planned ending valuation of $23 million and investment yield for three rounds of
investment.
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Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Toys and Games 0% 0 0 0 79 213 295 610 1,358 1,957 3,043 4,314 5,753
Books 0% 0 0 0 0 0 0 0 272 326 761 863 2,397
Software 0% 0 0 0 0 0 0 0 0 326 761 1,079 1,438
Total Unit Sales 0 0 0 79 213 295 610 1,630 2,609 4,565 6,256 9,588
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Toys and Games $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
Books $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Software $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00
Sales
Toys and Games $0 $0 $0 $2,370 $6,390 $8,850 $18,300 $40,740 $58,710 $91,290 $129,420 $172,590
Books $0 $0 $0 $0 $0 $0 $0 $5,440 $6,520 $15,220 $17,260 $47,940
Software $0 $0 $0 $0 $0 $0 $0 $0 $13,040 $30,440 $43,160 $57,520
Total Sales $0 $0 $0 $2,370 $6,390 $8,850 $18,300 $46,180 $78,270 $136,950 $189,840 $278,050
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
Toys and Games 0.00% $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00
Books 0.00% $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
Software 0.00% $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00
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Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Production Personnel
VP Support $0 $0 $0 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $4,000 $4,000 $4,000
Support Engineers $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Support Technicians $0 $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $6,000 $6,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $6,500 $6,500 $6,500 $6,500 $9,500 $9,500 $10,000 $13,000 $13,000
Other Personnel
CTO $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Devel Systems $0 $0 $0 $0 $0 $0 $4,000 $4,400 $5,100 $6,400 $7,900 $12,000
Devel Engineers $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $4,500 $6,000 $9,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $9,000 $9,400 $13,100 $15,900 $18,900 $26,000
Total People 4 4 5 6 6 7 9 11 13 15 17 18
Total Payroll $20,000 $20,000 $25,500 $35,500 $35,500 $40,500 $46,800 $51,700 $57,500 $63,300 $72,100 $85,700
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Appendix
Table: Profit and Loss
Gross Margin $0 $0 ($2,000) ($7,157) ($4,879) ($3,485) $1,870 $14,578 $32,852 $65,605 $92,649 $142,242
Gross Margin % 0.00% 0.00% 0.00% -301.98% -76.35% -39.38% 10.22% 31.57% 41.97% 47.90% 48.80% 51.16%
Operating Expenses
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Appendix
General and Administrative % 0.00% 0.00% 0.00% 771.10% 285.99% 271.47% 154.48% 64.97% 40.98% 24.93% 19.31% 16.11%
Other Expenses:
Other Payroll $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $9,000 $9,400 $13,100 $15,900 $18,900 $26,000
Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Software & Equipment $2,000 $2,000 $2,000 $10,000 $2,000 $1,000 $0 $0 $0 $0 $0 $0
Total Other Expenses $7,000 $7,000 $7,000 $15,000 $7,000 $6,000 $9,000 $9,400 $13,100 $15,900 $18,900 $26,000
Other % 0.00% 0.00% 0.00% 632.91% 109.55% 67.80% 49.18% 20.36% 16.74% 11.61% 9.96% 9.35%
Total Operating Expenses $39,450 $49,850 $71,810 $123,910 $110,245 $127,595 $174,940 $190,775 $218,945 $243,615 $263,885 $292,375
Profit Before Interest and Taxes ($39,450) ($49,850) ($73,810) ($131,067) ($115,124) ($131,080) ($173,070) ($176,197) ($186,093) ($178,010) ($171,236) ($150,133)
EBITDA ($39,450) ($49,850) ($73,810) ($131,067) ($115,124) ($131,080) ($173,070) ($176,197) ($186,093) ($178,010) ($171,236) ($148,133)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $1,500 $1,333 $1,167 $2,667
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($39,450) ($49,850) ($73,810) ($131,067) ($115,124) ($131,080) ($173,070) ($176,197) ($187,593) ($179,343) ($172,403) ($152,800)
Net Profit/Sales 0.00% 0.00% 0.00% -5530.25% -1801.63% -1481.13% -945.74% -381.54% -239.67% -130.96% -90.81% -54.95%
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Appendix
Table: Cash Flow
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
Net Cash Flow ($20,648) ($39,797) ($55,965) ($83,366) $371,652 ($120,492) ($131,802) ($159,090) $260,604 ($179,680) ($193,187) $42,717
Cash Balance $473,352 $433,555 $377,590 $294,224 $665,876 $545,384 $413,582 $254,492 $515,096 $335,415 $142,228 $184,945
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Appendix
Table: Balance Sheet
Current Assets
Cash $494,000 $473,352 $433,555 $377,590 $294,224 $665,876 $545,384 $413,582 $254,492 $515,096 $335,415 $142,228 $184,945
Accounts Receivable $0 $0 $0 $0 $237 $868 $1,503 $2,686 $6,387 $12,291 $21,261 $32,223 $46,156
Inventory $0 $0 $0 $0 $1,043 $2,812 $3,894 $8,052 $20,319 $34,439 $60,258 $83,530 $122,342
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $499,000 $478,352 $438,555 $382,590 $300,503 $674,556 $555,781 $429,319 $286,198 $566,826 $421,934 $262,980 $358,443
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($2,000)
Total Assets $499,000 $478,352 $438,555 $382,590 $300,503 $674,556 $555,781 $429,319 $286,198 $566,826 $421,934 $262,980 $356,443
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $18,802 $28,855 $46,700 $95,680 $84,857 $97,162 $143,770 $176,846 $215,067 $269,519 $302,967 $369,230
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $18,802 $28,855 $46,700 $95,680 $84,857 $97,162 $143,770 $176,846 $215,067 $269,519 $302,967 $369,230
Paid-in Capital $532,750 $532,750 $532,750 $532,750 $532,750 $1,032,750 $1,032,750 $1,032,750 $1,032,750 $1,282,750 $1,282,750 $1,282,750 $1,282,750
Retained Earnings ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750) ($33,750)
Earnings $0 ($39,450) ($89,300) ($163,110) ($294,177) ($409,301) ($540,381) ($713,451) ($889,648) ($1,077,241) ($1,256,584) ($1,428,987) ($1,581,787)
Total Capital $499,000 $459,550 $409,700 $335,890 $204,823 $589,699 $458,619 $285,549 $109,352 $171,759 ($7,584) ($179,987) ($332,787)
Total Liabilities and Capital $499,000 $478,352 $438,555 $382,590 $300,503 $674,556 $555,781 $429,319 $286,198 $566,826 $421,934 $262,980 $356,443
Net Worth $499,000 $459,550 $409,700 $335,890 $204,823 $589,699 $458,619 $285,549 $109,352 $171,759 ($7,584) ($179,987) ($332,787)
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Appendix
Table: General Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
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