Consulting Planning Business Plan

Typical structure for a business plan for a start up venture[7]

• cover page and table of contents

• executive summary
• business description
• business environment analysis
• industry background
• competitor analysis
• market analysis
• marketing plan
• operations plan
• management summary
• financial plan
• attachments and milestones

Executive Summary

Introduction
Business Solutions Consulting (BSC) is a start-up consulting firm focused on serving the
comprehensive needs of businesses in the full range of the business cycle. With a core
staff of experienced professionals and a team approach to most consulting projects, BSC
will be able to offer a more balanced quality service than many of its competitors.

The Company
Business Solutions Consulting is a team of six business consultants. Each consultant
specializes in a particular discipline, including finance, sales and marketing,
technology, management, operations, and human resources.

BSC offers a list of services for business owners to choose from, depending on their
particular business needs. This includes; business and marketing plan preparation,
financial search and procurement, IT consulting services, management development,
human resources advising, and etc.

BSC will have a focus on start-up businesses, preferably in the earlier stages of operation.
Small and mid-sized businesses make up a sizable majority of U.S. and international
markets. BSC prefers to establish a relationship with a younger operation and continue to
nurture that relationship over the long term.

BSC will be established as an Oregon based LLC with two principal partners, each of
whom owns a 50% share in the company. Mr. Andrew B. Christiansen has
extensive experience in business planning and finance, including CFO positions with
ABC Conglomerate and DEF International. Mr. David E. Fields brings in experience in
the area of marketing, advertising, and communications.

The Market
The business consulting industry is very fragmented. Several large multinational
companies dominate the industry while many smaller (and often more specialized) firms
occupy their market niches. Major management consulting companies, such as
McKinsey, Bain, and Boston Consulting Group, have established their dominant position
by providing services to the leading companies in various industries. Consulting practices
of the major accounting firms (a.k.a. the Big Five) have established worldwide presence
and sell their packaged services to companies of different sizes and industries. At the
same time, numerous firms and individual business consultants prosper in the market
niches that bigger players consider unprofitable to enter.

Start-up companies are the target market of this firm. BSC intends to stay on the pulse of
new business activity within the local area. Additionally, business contacts, referrals from
among the group, and Internet marketing efforts will be made in pursuit of new clients.
Start-up companies are attractive because owners often lack the broad range of
knowledge and expertise required to launch a new business. There is a serious need in the
marketplace, and certainly a significant demand for, these types of start-up consulting
services.

Competitors in the forefront of the marketplace typically offer many of the services that
BSC has. These services include information-based consulting, integration and
management services. Services are designed to increase clients' operations effectiveness
through reduced cost, improved customer service, enhanced quality of current product
lines and services, and a more rapid introduction of new products and services.
Competitors also offer industry-specific expertise to objectively evaluate, select, develop,
implement, and manage information systems, networks, and applications.

Consulting firms BSC is competing with include regional and specialty consulting firms,
as well as the consulting groups of international accounting forms such as KPMG LLP,
Ernst & Young LLP, Deloitte & Touche LLP, PricewaterhouseCoopers LLP, and
Andersen Consulting. In its management and IT consulting services, BSC competes with
information system vendors such as HBO & Company, Inc., Integrated Systems Solution
Corporation, Electronic Data Systems Corporation, Perot Systems Corporation, SAIC,
CAP Gemini America, Inc., and Computer Sciences Corporation. In e-commerce-related
services, BSC competes with the traditional competitors, as well as newer, Internet
product and service companies such as Razorfish, Scient, TriZetto, and Viant.

Financial
BSC's co-owners, Andrew B. Christiansen and David E. Fields, will each provide
$50,000 that will cover the bulk of the start-up expenses. The rest of the required
financing will come from the Small Business Administration (SBA) 10-year loan in the
amount of $100,000. Combined, these funds will be sufficient to cover the company's
expenses throughout the first year of operations, which is the most critical from the cash
flow standpoint.

BSC's Break-even Analysis is based on the average of the first-year figures for total sales
by salaries, bonuses costs, and all other operating expenses. Such analysis shows that
BSC will break-even by the tenth month of operations.

1.1 Mission

Business Solutions Consulting aims to offer comprehensive consulting services. BSC will
focus on providing personal and specialized services to meet each client's specific needs.

1.2 Keys to Success

BSC's keys to success include:

1. A group of professionals with a broad range of specialty areas that complement

each other.
2. A high level of experience in these specialty areas.
3. A team approach on most consulting projects.
4. Many business contacts among the consultant group.

Company Summary

Business Solutions Consulting is a startup firm, which will focus on providing a wide
range of business consulting services to other startups and companies in early stages of
their operations. Business Solutions Consulting is a team of six Business Consultants.
Each consultant specializes in a particular discipline, including finance, sales and
marketing, technology, management, operations, and human resources.
2.1 Company Ownership

Business Solutions Consulting was registered as an Oregon LLC, equally owned by

Andrew B. Christiansen and David E. Fields.

Start-up Summary

BSC's co-owners, Andrew B. Christiansen and David E. Fields, will each provide
$49,750 in investment that will cover the bulk of the start-up expenses. The rest of the
required financing will come from the Small Business Administration (SBA) 10-year
loan in the amount of $100,000. Combined, these funds will be sufficient to cover the
company's expenses throughout the first year of operations, which is the most critical
from the cash flow standpoint.

The following chart and table contain projected initial start-up cost data.

Start-up

Requirements

Start-up Expenses
Legal $2,500
Office Supplies $2,000
Other $1,000
Total Start-up Expenses $5,500

Start-up Assets
Cash Required $150,000
Other Current Assets $20,000
Long-term Assets $25,000
Total Assets $195,000

Total Requirements $200,500

Start-up Funding

Start-up Expenses to Fund $5,500

Start-up Assets to Fund $195,000
Total Funding Required $200,500

Assets
Non-cash Assets from Start-up $45,000
Cash Requirements from Start-up $150,000
Additional Cash Raised $0
Cash Balance on Starting Date $150,000
Total Assets $195,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $1,000
Other Current Liabilities (interest-free) $0
Total Liabilities $101,000

Capital

Planned Investment
Investor 1 $49,750
Investor 2 $49,750
Additional Investment Requirement $0
Total Planned Investment $99,500

Loss at Start-up (Start-up Expenses) ($5,500)

Total Capital $94,000

Total Capital and Liabilities $195,000

Total Funding $200,500

Service Description

BSC offers a list of services for business owners to choose from, depending on their
particular business needs.

Start-up services include business plan preparation, marketing plan preparation, and
financing search and procurement. Ongoing services include business plan updates,
marketing plan updates, search and procurement of additional rounds of financing,
management development, IT consulting services, e-commerce consulting services,
operational advising, and human resources advising.

BSC is flexible, working with its clients in the fashion preferred by the client, be it on-
site, remotely, or a combination of both. BSC typically works on a project in a team
fashion to assist the client in all areas of the business simultaneously. This allows for all
parties involved to be in sync in terms of understanding the interconnections of all
functional areas of the business.

Market Analysis Summary

BSC will have a focus on start-up businesses, preferably in the earlier stages of operation.
Small and mid-sized businesses make up a sizable majority of U.S. and international
markets. BSC prefers to establish a relationship with a younger operation and continue to
nurture that relationship for the long term. The following chart and table show BSC's
projected target markets and their growth for the first three years of this plan.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Start-Up Companies 10% 1,900,000 2,090,000 2,299,000 2,528,900 2,781,790 10.00%
1-3 Year Old Companies 8% 900,000 972,000 1,049,760 1,133,741 1,224,440 8.00%
3 + Year Old Companies 6% 400,000 424,000 449,440 476,406 504,990 6.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.96% 3,200,000 3,486,000 3,798,200 4,139,047 4,511,220 8.96%

5.1 Market Segmentation

Start-Ups

Start-up companies often are in need of expert advice and planning in initiating a
successful start-up. It is believed that a majority of start-ups actually seek out consulting
assistance. Those that do typically are searching for a comprehensive area of services.

1-3 Year Old Companies

Young companies, between 1 and 3 years old are less likely to be searching for expert
business consulting services. Typically, they have already secured financing and have
developed a satisfactory level of security. However, these businesses are still in the
beginnings of their overall cycle and in most cases need the broad expertise of a team of
expert consultants.

3 + Year-Old Companies

Established companies make up the final segment, and is significantly smaller than the
start-up segment. The established company segment typically has a need for a less
comprehensive range of services. These entities are in need of specialized services in one
or two disciplines, e.g., operational planning or human resources.

5.2 Target Market Segment Strategy

Start-up companies are the target market of this firm. BSC intends to stay on the pulse of
new business activity within the local area. Additionally, business contacts, referrals from
among the group, and Internet marketing efforts will be made in pursuit of new clients.

5.3 Market Needs

Start-up company owners often lack the broad range of knowledge and expertise required
to launch a new business. There is a serious need in the marketplace, and certainly a
significant demand for, these types of start-up consulting services.

5.4 Service Business Analysis

The business consulting industry is very fragmented. Several large multi-national

companies dominate the industry while many smaller (and often more specialized) firms
occupy their market niches. Major management consulting companies, such as
McKinsey, Bain, and Boston Consulting Group, have established their dominant position
by providing services to the leading companies in various industries. Consulting practices
of the major accounting firms (a.k.a. the Big Five) have established worldwide presence
and sell their packaged services to companies of different sizes and industries. At the
same time, numerous firms and individual business consultants prosper in the market
niches that bigger players consider unprofitable to enter.

5.5 Competition and Buying Patterns

Competitors in the forefront of the marketplace typically offer information-based

consulting, integration and management services. Services are designed to increase
clients' operations effectiveness through reduced cost, improved customer service,
enhanced quality of current product lines and services, and a more rapid introduction of
new products and services. Competitors also offer industry-specific expertise to
objectively evaluate, select, develop, implement, and manage information systems,
networks, and applications.
Consulting services are becoming more focused on technology-based solutions to help
clients improve cost management, quality, service, and research and development to
obtain differentiation and competitive advantage. E-strategy services are being provided
to business and IT executives with education, insights, and strategies to utilize the power
of the Internet to improve their performance. E-strategy services include executive
visioning, business strategy, planning for e-business initiatives, user design, and
intellectual capital formation. IT strategy consulting services are focusing on the use of
IT to support business goals, and to leverage the power of the Internet to transform the
way products and services are distributed and retailed.

Strategic planning consulting services typically consist of strategic alignment (which

includes IT strategic planning and governance, alignment of IT and process, and future
focus and regulatory requirements), IT department operational excellence (which
includes fiscal responsibility, infrastructure, IT department processes, data center
operations, and IT human resources management), and IT value realization (which
consists of performance measurement, business integration (people, process and
technology), change management and application investment). Performance
improvement services consist of process redesigning to reducing administrative costs,
improving financial performance, engaging and retaining customers, and improving
accountability and reporting.

Other commonly found services among competitors include long-term IT management

expertise, as well as a wide range of management services including assessment/due
diligence, program management, discrete outsourcing, and full IT outsourcing services.

Consulting firms BSC is competing with include regional and specialty consulting firms,
as well as the consulting groups of international accounting forms such as KPMG LLP,
Ernst & Young LLP, Deloitte & Touche LLP, PricewaterhouseCoopers LLP, and
Andersen Consulting. In its management and IT consulting services, BSC competes with
information system vendors such as HBO & Company, Inc., Integrated Systems Solution
Corporation, Electronic Data Systems Corporation, Perot Systems Corporation, SAIC,
CAP Gemini America, Inc., and Computer Sciences Corporation. In e-commerce-related
services, BSC competes with the traditional competitors, as well as newer, Internet
product and service companies such as Razorfish, Scient, TriZetto, and Viant.

Strategy and Implementation Summary

BSC intends to succeed by offering companies a comprehensive range of multi-cycle

business planning solutions.

6.1 Sales Strategy

BSC intends to succeed by offering companies a comprehensive range of multi-cycle

business planning solutions. The company will strive to optimize its billing hours. The
following table outlines the sales forecast for the next three years.
Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Business Plans 191 397 763
Start-Up Consulting 175 364 699
Annual Reviews 223 464 890
Other Ongoing Business Consulting 223 464 890
Total Unit Sales 812 1,688 3,242

Unit Prices Year 1 Year 2 Year 3

Business Plans $1,500.00 $1,500.00 $1,500.00
Start-Up Consulting $1,500.00 $1,500.00 $1,500.00
Annual Reviews $1,000.00 $1,000.00 $1,000.00
Other Ongoing Business Consulting $1,500.00 $1,500.00 $1,500.00

Sales
Business Plans $286,508 $595,937 $1,144,199
Start-Up Consulting $262,633 $546,276 $1,048,850
Annual Reviews $222,840 $463,507 $889,933
Other Ongoing Business Consulting $334,260 $695,260 $1,334,899
Total Sales $1,106,240 $2,300,980 $4,417,881

Direct Unit Costs Year 1 Year 2 Year 3

Business Plans $0.00 $0.00 $0.00
Start-Up Consulting $0.00 $0.00 $0.00
Annual Reviews $0.00 $0.00 $0.00
Other Ongoing Business Consulting $0.00 $0.00 $0.00

Direct Cost of Sales

Business Plans $0 $0 $0
Start-Up Consulting $0 $0 $0
Annual Reviews $0 $0 $0
Other Ongoing Business Consulting $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

6.2 Competitive Edge

Our competitive edge is the team approach of consultants who are each focused in one or
two business disciplines.

Management Team

Andrew B. Christiansen has extensive experience in business planning and finance,

including CFO positions with ABC Conglomerate and DEF International. David E.
Fields brings in experience in the area of marketing, advertising, and communications.

7.1 Personnel Plan

The following table illustrates the personnel plan for the next three years. No major
changes in headcount are planned.

Personnel Plan
Year 1 Year 2 Year 3
Owner / Consultants $600,000 $660,000 $726,000
Other $0 $0 $0
Total People 6 7 8

Total Payroll $600,000 $660,000 $726,000

Financial Plan

BSC expects to raise $100,000 as its own capital, and to borrow $100,000 guaranteed
by the SBA as a 10-year loan. This provides the bulk of the current financing required.
8.1 Break-even Analysis

BSC's Break-even Analysis is based on the average of the first-year figures for total sales
by salaries, bonuses costs, and all other operating expenses. These are presented as per-
unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a
more accurate estimate of real risk. Such analysis shows that BSC will break-even by the
tenth month of operations.

Break-even Analysis

Monthly Units Break-even 56

Monthly Revenue Break-even $76,150

Assumptions:
Average Per-Unit Revenue $1,362.36
Average Per-Unit Variable Cost $0.00
Estimated Monthly Fixed Cost $76,150

8.2 Projected Profit and Loss

As the profit and loss table shows, BSC expects to continue its steady growth
in profitability over the next three years of operations.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $1,106,240 $2,300,980 $4,417,881
Direct Cost of Sales $0 $0 $0
Other $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $1,106,240 $2,300,980 $4,417,881

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $600,000 $660,000 $726,000
Sales and Marketing and Other Expenses $216,600 $227,430 $238,802
Depreciation $6,000 $6,300 $6,615
Utilities $1,200 $1,266 $1,336
Payroll Taxes $90,000 $99,000 $108,900
Other $0 $0 $0

Total Operating Expenses $913,800 $993,996 $1,081,652

Profit Before Interest and Taxes $192,440 $1,306,984 $3,336,229

EBITDA $198,440 $1,313,284 $3,342,844
Interest Expense $8,050 $6,065 $5,356
Taxes Incurred $45,725 $325,230 $846,597

Net Profit $138,666 $975,689 $2,484,276

Net Profit/Sales 12.53% 42.40% 56.23%

8.3 Projected Cash Flow

As the cash flow statement illustrates, BSC expects to maintain a steady rate of cash flow
over the next three years of operations.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $1,106,240 $2,300,980 $4,417,881
Subtotal Cash from Operations $1,106,240 $2,300,980 $4,417,881

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $1,106,240 $2,300,980 $4,417,881

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $600,000 $660,000 $726,000
Bill Payments $327,069 $640,332 $1,156,442
Subtotal Spent on Operations $927,069 $1,300,332 $1,882,442

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $36,000 $6,700 $7,486
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $45,000 $55,000
Dividends $0 $0 $0
Subtotal Cash Spent $963,069 $1,352,032 $1,944,928

Net Cash Flow $143,171 $948,947 $2,472,953

Cash Balance $293,171 $1,242,118 $3,715,072
8.4 Projected Balance Sheet

Following is a copy of the company's projected balance sheet.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $293,171 $1,242,118 $3,715,072
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $313,171 $1,262,118 $3,735,072

Long-term Assets
Long-term Assets $25,000 $70,000 $125,000
Accumulated Depreciation $6,000 $12,300 $18,915
Total Long-term Assets $19,000 $57,700 $106,085
Total Assets $332,171 $1,319,818 $3,841,157

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $35,505 $54,164 $98,711
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $35,505 $54,164 $98,711

Long-term Liabilities $64,000 $57,300 $49,814

Total Liabilities $99,505 $111,464 $148,525

Paid-in Capital $99,500 $99,500 $99,500

Retained Earnings ($5,500) $133,166 $1,108,855
Earnings $138,666 $975,689 $2,484,276
Total Capital $232,666 $1,208,355 $3,692,631
Total Liabilities and Capital $332,171 $1,319,818 $3,841,157

Net Worth $232,666 $1,208,355 $3,692,631

8.5 Business Ratios

The following table outlines the important business ratios for Business Solutions
Consulting, as determined by the Standard Industry Classification (SIC) Index. Ratios for
the Business Consulting services industry (SIC 8748) are used as a benchmark in this
table.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 108.00% 92.00% 12.40%

Percent of Total Assets

Other Current Assets 6.02% 1.52% 0.52% 44.70%
Total Current Assets 94.28% 95.63% 97.24% 74.50%
Long-term Assets 5.72% 4.37% 2.76% 25.50%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 10.69% 4.10% 2.57% 44.30%

Long-term Liabilities 19.27% 4.34% 1.30% 16.00%
Total Liabilities 29.96% 8.45% 3.87% 60.30%
Net Worth 70.04% 91.55% 96.13% 39.70%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 87.63% 57.71% 43.51% 80.80%
Advertising Expenses 10.85% 5.48% 2.99% 1.30%
Profit Before Interest and Taxes 17.40% 56.80% 75.52% 2.20%

Main Ratios
Current 8.82 23.30 37.84 1.75
Quick 8.82 23.30 37.84 1.38
Total Debt to Total Assets 29.96% 8.45% 3.87% 60.30%
Pre-tax Return on Net Worth 79.25% 107.66% 90.20% 3.80%
Pre-tax Return on Assets 55.51% 98.57% 86.72% 9.70%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 12.53% 42.40% 56.23% n.a
Return on Equity 59.60% 80.75% 67.28% n.a

Activity Ratios
Accounts Payable Turnover 10.18 12.17 12.17 n.a
Payment Days 27 25 23 n.a
Total Asset Turnover 3.33 1.74 1.15 n.a

Debt Ratios
Debt to Net Worth 0.43 0.09 0.04 n.a
Current Liab. to Liab. 0.36 0.49 0.66 n.a

Liquidity Ratios
Net Working Capital $277,666 $1,207,955 $3,636,360 n.a
Interest Coverage 23.91 215.50 622.93 n.a

Additional Ratios
Assets to Sales 0.30 0.57 0.87 n.a
Current Debt/Total Assets 11% 4% 3% n.a
Acid Test 8.82 23.30 37.84 n.a
Sales/Net Worth 4.75 1.90 1.20 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix
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
Business Plans 0% 12 13 13 14 15 15 16 17 18 19 20 21
Start-Up Consulting 0% 11 12 12 13 13 14 15 15 16 17 18 19
Annual Reviews 0% 14 15 15 16 17 18 19 20 21 22 23 24
Other Ongoing Business Consulting 0% 14 15 15 16 17 18 19 20 21 22 23 24
Total Unit Sales 51 54 56 59 62 65 68 72 75 79 83 87

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
Business Plans $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Start-Up Consulting $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Annual Reviews $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Other Ongoing Business Consulting $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00

Sales
Business Plans $18,000 $18,900 $19,845 $20,837 $21,879 $22,973 $24,122 $25,328 $26,594 $27,924 $29,320 $30,786
Start-Up Consulting $16,500 $17,325 $18,191 $19,101 $20,056 $21,059 $22,112 $23,217 $24,378 $25,597 $26,877 $28,221
Annual Reviews $14,000 $14,700 $15,435 $16,207 $17,017 $17,868 $18,761 $19,699 $20,684 $21,719 $22,805 $23,945
Other Ongoing Business Consulting $21,000 $22,050 $23,153 $24,310 $25,526 $26,802 $28,142 $29,549 $31,027 $32,578 $34,207 $35,917
Total Sales $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869

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
Business Plans 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Start-Up Consulting 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Annual Reviews 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Other Ongoing Business Consulting 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Direct Cost of Sales

Business Plans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Start-Up Consulting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Annual Reviews $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Ongoing Business Consulting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

General Assumptions
Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
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
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Sales and Marketing and
$18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050 $18,050
Other Expenses
Depreciation 5% $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Utilities 6% $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150 $76,150

Profit Before Interest and

($6,650) ($3,175) $474 $4,305 $8,328 $12,552 $16,987 $21,643 $26,533 $31,667 $37,058 $42,719
Taxes
EBITDA ($6,150) ($2,675) $974 $4,805 $8,828 $13,052 $17,487 $22,143 $27,033 $32,167 $37,558 $43,219
Interest Expense $808 $783 $758 $733 $708 $683 $658 $633 $608 $583 $558 $533
Taxes Incurred ($2,238) ($990) ($71) $893 $1,905 $2,967 $4,082 $5,253 $6,481 $7,771 $9,125 $10,546

Net Profit ($5,221) ($2,969) ($213) $2,679 $5,715 $8,901 $12,246 $15,758 $19,444 $23,313 $27,375 $31,639
Net Profit/Sales -7.51% -4.07% -0.28% 3.33% 6.76% 10.03% 13.15% 16.11% 18.94% 21.62% 24.18% 26.62%

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
Cash Received

Cash from Operations

Cash Sales $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869
Subtotal Cash from Operations $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $69,500 $72,975 $76,624 $80,455 $84,478 $88,702 $93,137 $97,793 $102,683 $107,817 $113,208 $118,869

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 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Bill Payments $1,807 $24,262 $25,474 $26,368 $27,309 $28,298 $29,337 $30,429 $31,576 $32,782 $34,049 $35,380
Subtotal Spent on Operations $51,807 $74,262 $75,474 $76,368 $77,309 $78,298 $79,337 $80,429 $81,576 $82,782 $84,049 $85,380

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $54,807 $77,262 $78,474 $79,368 $80,309 $81,298 $82,337 $83,429 $84,576 $85,782 $87,049 $88,380

Net Cash Flow $14,693 ($4,287) ($1,850) $1,086 $4,169 $7,404 $10,800 $14,365 $18,107 $22,036 $26,160 $30,489
Cash Balance $164,693 $160,406 $158,556 $159,643 $163,811 $171,215 $182,015 $196,380 $214,487 $236,523 $262,682 $293,171

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
Owner / Consultants 0% $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 6 6 6 6 6 6 6 6 6 6 6 6

Total Payroll $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances

Current Assets
Cash $150,000 $164,693 $160,406 $158,556 $159,643 $163,811 $171,215 $182,015 $196,380 $214,487 $236,523 $262,682 $293,171
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $170,000 $184,693 $180,406 $178,556 $179,643 $183,811 $191,215 $202,015 $216,380 $234,487 $256,523 $282,682 $313,171

Long-term Assets
Long-term Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Accumulated Depreciation $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
Total Long-term Assets $25,000 $24,500 $24,000 $23,500 $23,000 $22,500 $22,000 $21,500 $21,000 $20,500 $20,000 $19,500 $19,000
Total Assets $195,000 $209,193 $204,406 $202,056 $202,643 $206,311 $213,215 $223,515 $237,380 $254,987 $276,523 $302,182 $332,171

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 $1,000 $23,413 $24,596 $25,459 $26,367 $27,321 $28,324 $29,377 $30,485 $31,648 $32,871 $34,156 $35,505
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 $1,000 $23,413 $24,596 $25,459 $26,367 $27,321 $28,324 $29,377 $30,485 $31,648 $32,871 $34,156 $35,505

Long-term Liabilities $100,000 $97,000 $94,000 $91,000 $88,000 $85,000 $82,000 $79,000 $76,000 $73,000 $70,000 $67,000 $64,000
Total Liabilities $101,000 $120,413 $118,596 $116,459 $114,367 $112,321 $110,324 $108,377 $106,485 $104,648 $102,871 $101,156 $99,505

Paid-in Capital $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500 $99,500
Retained Earnings ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500)
Earnings $0 ($5,221) ($8,190) ($8,403) ($5,724) ($10) $8,891 $21,138 $36,895 $56,339 $79,652 $107,027 $138,666
Total Capital $94,000 $88,779 $85,810 $85,597 $88,276 $93,990 $102,891 $115,138 $130,895 $150,339 $173,652 $201,027 $232,666
Total Liabilities and Capital $195,000 $209,193 $204,406 $202,056 $202,643 $206,311 $213,215 $223,515 $237,380 $254,987 $276,523 $302,182 $332,171

Net Worth $94,000 $88,779 $85,810 $85,597 $88,276 $93,990 $102,891 $115,138 $130,895 $150,339 $173,652 $201,027 $232,666

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