COMPANY NAME

Business Plan

INSERT IMAGE/LOGO

OWNERS NAME
INSERT ADDRESS
Phone:
Email:

Confidentiality Agreement
The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to COMPANY
NAME.
Upon request, this document is to be immediately returned to COMPANY NAME.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

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

Chart: Highlights...................................................................................2
1.1 Objectives..........................................................................................3
1.2 Mission..............................................................................................3
1.3 Keys to Success..................................................................................3
2.0 Company Summary................................................................................4
2.1 Company Ownership............................................................................4
2.2 Company History.................................................................................5
Table: Past Performance..........................................................................6
Chart: Past Performance.........................................................................7
3.0 Products...............................................................................................7
4.0 Market Analysis Summary.......................................................................8
4.1 Market Segmentation...........................................................................9
Table: Market Analysis..........................................................................10
Chart: Market Analysis (Pie)..................................................................10
4.2 Target Market Segment Strategy..........................................................11
4.3 Industry Analysis...............................................................................11
4.3.1 Competition and Buying Patterns....................................................12
5.0 Web Plan Summary..............................................................................13
5.1 Website Marketing Strategy................................................................13
5.2 Development Requirements................................................................13
6.0 Strategy and Implementation Summary..................................................13
6.1 SWOT Analysis..................................................................................14
6.1.1 Strengths....................................................................................14
6.1.2 Weaknesses................................................................................15
6.1.3 Opportunities..............................................................................15
6.1.4 Threats.......................................................................................15
6.2 Competitive Edge..............................................................................15
6.3 Marketing Strategy............................................................................16
6.4 Sales Strategy..................................................................................16
6.4.1 Sales Forecast.............................................................................17
Table: Sales Forecast.........................................................................17
Chart: Sales Monthly.........................................................................18
Chart: Sales by Year..........................................................................18
6.5 Milestones........................................................................................19
Table: Milestones.................................................................................19
Chart: Milestones.................................................................................20
7.0 Management Summary.........................................................................20
7.1 Personnel Plan..................................................................................20
Table: Personnel..................................................................................21
8.0 Financial Plan......................................................................................21
8.1 Important Assumptions......................................................................21
8.2 Break-even Analysis...........................................................................22
Table: Break-even Analysis....................................................................22
Chart: Break-even Analysis....................................................................22
Page 1

Table of Contents

8.3 Projected Profit and Loss....................................................................23

Table: Profit and Loss............................................................................24
Chart: Profit Monthly............................................................................25
Chart: Profit Yearly...............................................................................25
Chart: Gross Margin Monthly..................................................................26
Chart: Gross Margin Yearly....................................................................26
8.4 Projected Cash Flow...........................................................................27
Table: Cash Flow..................................................................................27
Chart: Cash.........................................................................................28
8.5 Projected Balance Sheet.....................................................................28
Table: Balance Sheet............................................................................29
8.6 Business Ratios.................................................................................29
Table: Ratios.......................................................................................30
Table: Sales Forecast...................................................................................1
Table: Personnel..........................................................................................2
Table: Profit and Loss...................................................................................3
Table: Cash Flow.........................................................................................4
Table: Balance Sheet...................................................................................5

Page 2

COMPANY NAME 2011

1.0 Executive Summary

COMPANY NAME
OWNERS NAME
INSERT ADDRESS
Phone:
Email:
Introduction
COMPANY NAME provides flower and gift delivery to the [CITY], VA area. Upon receipt of grant
funding, the Company will launch a wholesale floral operation in [CITY], [STATE].
Location
COMPANY NAME retail location is in [CITY], [STATE].
The Company
The Company offers a large variety of fresh cut flowers, arrangements and gifts. COMPANY NAME
is a sole proprietorship owned 100% by INSERT NAME. INSERT NAME has been in the floral
business since 1999. COMPANY NAME is committed to quality and service. The Company's 100%
Satisfaction Guarantee is our personal commitment to creating long term relationships with our
customers.
Our Services
COMPANY NAME will offer a variety of floral products and services including; fresh cut flowers,
flower arrangements, flower vases/containers, gifts, delivery and internet ordering.
The Market
COMPANY NAME retail store is located in [CITY], [STATE]. The wholesale operation will be located
in [CITY], [STATE]. The Company will target households and floral shops in [CITY] and [CITY],
[STATE] and the surrounding City and County areas.

COMPANY NAME 2011

Financial Considerations
The current financial plan for COMPANY NAME is to obtain grant funding in the amount of
$600,000. The grant will be used to launch our wholesale division including leasehold
improvements, purchase coolers and display cases, purchase of office furniture, fixtures and
equipment, purchase of Company vans and cars, upgrading our website, hiring employees and
launching an advertising campaign.
Chart: Highlights

COMPANY NAME 2011

1.1 Objectives
COMPANY NAME has the following objectives:
1. To exceed our customers' expectations with quality, value and professional service
2. Build a loyal satisfied customer base
3. Expand operations in the [CITY] and surrounding areas
4. Launch a wholesale floral operation in [CITY], [STATE]
5. Launch an advertising campaign in the first quarter of 2011
6. Hire employees to help with unemployment in our area
7. Financial stability and future growth using grant funds over the next three years
1.2 Mission
COMPANY NAME mission is to provide quality customer services and 100% guarantees on all
products and services. To give back to the community by providing needed services and promote
quality of life.
1.3 Keys to Success
COMPANY NAME's keys to success are:
1. On time delivery and quality of products
2. The Company's 100% Satisfaction Guarantee
3. The Company's personal commitment to creating long term relationships with our customers
4. Staff training and knowledge
5. Community service

COMPANY NAME 2011

2.0 Company Summary

COMPANY NAME
OWNERS NAME
INSERT ADDRESS
Phone:
Email:
COMPANY NAME provides flower and gift delivery to the [CITY], [STATE] area. The
Company offers a large variety of fresh cut flowers, arrangements and gifts. The goal is to exceed
our customers' expectations with quality, value and professional service. COMPANY NAME is a
sole proprietorship owned 100% by INSERT NAME. INSERT NAME has been in the floral business
since 1999.
Our Services and guarantee:

100% Satisfaction Guaranteed

The Customer's Satisfaction is Our #1 Concern
Committed to Quality and Service
Flowers & Gifts for All Occasions
Personalized Care with Each Order
Enjoy the Convenience of Ordering Online

COMPANY NAME is committed to quality and service. The Company's 100% Satisfaction
Guarantee is our personal commitment to creating long term relationships with our
customers. The customer's satisfaction is our Number One priority, not just because it's our job,
but because we care.
We choose only the freshest, highest quality flowers and our shop has a professional and caring
staff to serve all your floral needs. Your gift will arrive beautifully presented and personalized with
your message. Our experienced staff of designers will help customers choose the perfect flowers
for the occasion.
Upon receipt of grant funding, the Company will launch a wholesale floral operation in [CITY],
[STATE]. Due to the time in business and the relationships INSERT NAME has cultivated, the
Company will be able to purchase flowers directly from growers and master distributors. This will
enable the Company to service the existing florists in the State of [STATE].
2.1 Company Ownership
COMPANY NAME is a sole proprietorship for tax purposes, 100% owned by INSERT NAME, an
African-American woman. INSERT NAME has been in the floral business since 1999 and is
responsible for all operational and administrative aspects of the business.

COMPANY NAME 2011

2.2 Company History

INSERT NAME, owner of COMPANY NAME, started in the floral business in 1999 in [CITY],
[STATE]. INSERT NAME has developed key business contacts allowing her to grow the business
substantially in the last year from sales of $21,832 in 2009 to estimated sales of $85,000 for
2010. INSERT NAME has developed relationships with growers and major suppliers of flowers and
upon receipt of grant funding will launch a wholesale operation.
The 2010 Profit and Loss Statement is estimated based on the actual activity through September
30, 2010. As the Company is a sole proprietorship, the Balance Sheet for year end 2010 is
estimated based on average balances at the end of each month for cash, amount of inventory in
stock, accounts payable and fixed assets which are fully depreciated.
The Company's growth will come from its strength's; 100% customer guarantee, commitment to
quality and service, design and arrangement capabilities, experience and a loyal satisfied
customer base.

COMPANY NAME 2011

Table: Past Performance

Past Performance
2008
$24,056
$10,556
43.88%
$19,077
0.00

2009
$21,832
$20,542
94.09%
$13,925
0.00

2010
$85,000
$66,300
78.00%
$63,600
9.35

2008

2009

2010

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$0
$0
$0
$0

$0
$0
$0
$0

$500
$4,000
$0
$4,500

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets

$0
$0
$0

$0
$0
$0

$6,000
$6,000
$0

Total Assets

$0

$0

$4,500

$0
$0
$0

$0
$0
$0

$1,400
$0
$0

$0

$0

$1,400

$0
$0

$0
$0

$0
$1,400

Sales
Gross Margin
Gross Margin %
Operating Expenses
Inventory Turnover
Balance Sheet

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities (interest
free)
Total Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Capital and Liabilities
Other Inputs
Payment Days

$100
$8,421
($8,521)
$0

$100
($6,717)
$6,617
$0

$100
$300
$2,700
$3,100

$0

$0

$4,500

30

Chart: Past Performance

COMPANY NAME 2011

3.0 Products
COMPANY NAME will offer a variety of floral products and services.
PRODUCTS
Fresh Cut Flowers - The Company will have a variety of fresh cut flowers daily.
Original Floral Designs - Using a Wide Mix of Flowers while each floral arrangement will be a
natural, original work of art. The company is committed to making each arrangement unique and
custom-designed based on each customer's needs. The Company's floral arrangements will
feature a wide range of seasonal flowers. All sample arrangements in the store will be available
for purchase.
Unique Containers - The Company will select and offer distinctive vases for the discretionary
buyer or for a special occasion, as well as affordable options for routine purchases.
Green and Flowering House Plants - The Company may occasionally offer a selection of seasonal
green and flowering house plants.
Floral accessories - Balloons, bears, candy etc.
Wedding and Funeral arrangements
Special event arrangements for commercial businesses
Variety of prices - The Company will offer a variety of arrangement sizes, and will always create
a unique arrangement to meet anyone's stated budget.
Hand-tied Bouquets - For customers who prefer to use their own vases, the Company will offer
hand-tied bouquets.
SERVICES

COMPANY NAME 2011

Delivery in the [CITY] County and surrounding County areas
Commercial Account Program including:
Free initial consulting. For retail and office tenants who are interested in a weekly delivery
program, the Company will conduct an initial free, on-site visit to the customer's office or store to
determine the optimum floral design plan.
Priority delivery program. The Company will work with each commercial customer to determine
a weekly delivery schedule, and will assure that arrangements are delivered on the same day
each week at the same time.
Gift Cards - The Company will offer $25, $50, $75 and $100 gift certificates and gift cards
Surveys/Comment Cards. The Company will use in-store comment cards as well as occasional
surveys to ensure products and services are meeting customers' expectations.
4.0 Market Analysis Summary
COMPANY NAME retail store is located in [CITY], [STATE]. The wholesale operation will be located
in [CITY], [STATE].
[CITY] is an independent city in [STATE], and therefore not part of any [STATE] county. As one
of the seven major cities that comprise the [CITY] Roads metropolitan area, it is on the
southeastern end of the [STATE] Peninsula. As of the census of 2000, there were 146,524 people,
53,887 households, and 35,888 families residing in the city.
[CITY] is an independent city located on the [STATE] Peninsula in the [CITY] Roads metropolitan
area of [STATE]. As of the census of 2000, there are 11,998 people, 3,619 households, and 1,787
families residing in the city.
[COUNTY] County - As of the census of 2000, there were 56,297 people, 20,000 households,
and 15,880 families residing in the county.
[COUNTY] County - As of the 2000 census there were 48,102 people, 19,003 households, and
13,986 families residing in the county.
[CITY] is an independent city in the Commonwealth of [STATE] - As of the census of 2000; there
were 234,403 people, 86,210 households, and 51,898 families residing in the city.
[CITY] is an independent city located in the [CITY] Roads metropolitan areas of the U.S.
Commonwealth of [STATE] - As of the census of 2000; there were 100,565 people, 38,170
households, and 25,497 families residing in the city.
[STATE] Beach is an independent city located in the [CITY] Roads metropolitan area of [STATE]
- As of the census of 2000; there were 425,257 people, 154,455 households, and 110,898
families residing in the city.
[CITY] is an independent city located on the [STATE] Peninsula, in the [CITY] Roads
metropolitan area - As of the census of 2000; there were 11,566 people, 4,166 households, and
3,370 families residing in the city.

COMPANY NAME 2011

[CITY] is an independent city located in the South [CITY] Roads portion of the [CITY] Roads
metropolitan area of [STATE] - As of the census of 2000; there were 199,184 people, 69,900
households, and 54,172 families residing in the city.
[CITY] is an independent city in the [CITY] Roads metropolitan area of [STATE] - As of the
census of 2000; there were 180,150 people, 69,686 households, and 46,341 families residing in
the city.
[COUNTY] County is a county located in the [CITY] Roads metropolitan area of the
Commonwealth of [STATE] - As of the census of 2000; there were 29,728 people, 11,319
households, and 8,670 families residing in the county.
[CITY] is an independent city located in the [CITY] Roads metropolitan area of [STATE] - As of
the census of 2000; there were 63,677 people, 23,283 households, and 17,718 families residing
in the city.
[COUNTY] County is within the Commonwealth of [STATE] in the [CITY] Roads metropolitan
area - As of the 2005 census, there were 38,293 people, 15,663 households, and 9,884 families
residing in the county.
4.1 Market Segmentation
COMPANY NAME has the following market segments:
1. Households in [CITY], [STATE] and the surrounding Cities and Counties for direct product
purchases from the Company's retail store
2. Florists - The Company will wholesale fresh cut flowers and arrangements to florists in
the [CITY], [STATE] and the surrounding Cities and Counties.
3. Internet Sales - The Company will update their website with the ability to tie-into social media
websites.
The Company will aggressively advertise during the peak selling holiday seasons; Valentines Day,
Mother's Day, Thanksgiving and Christmas.
COMPANY NAME's market segmentation scheme is fairly straightforward, and focuses on the
target market, households in the [CITY], [STATE] and the surrounding Cities and Counties. The
information contained in the market analysis table, displays the Company's main markets.

COMPANY NAME 2011

Table: Market Analysis

Market Analysis
2011
Potential
Customers
[CITY]
[CITY]
[COUNTY]
County
[COUNTY]
County
[COUNTY]
[COUNTY]
[STATE] Beach
[CITY]
[CITY]
[CITY]
[COUNTY]
County
[CITY]
[COUNTY]
County
Total

2012

2013

2014

2015

Growth

CAGR

2%
1%
1%

53,887
3,619
20,000

54,965
3,655
20,200

56,064
3,692
20,402

57,185
3,729
20,606

58,329
3,766
20,812

2.00%
1.00%
1.00%

1%

19,003

19,193

19,385

19,579

19,775

1.00%

2%
2%
2%
1%
1%
1%
1%

86,210
38,170
154,455
4,166
69,900
69,686
11,319

87,934
38,933
157,544
4,208
70,599
70,383
11,432

89,693
39,712
160,695
4,250
71,305
71,087
11,546

91,487
40,506
163,909
4,293
72,018
71,798
11,661

93,317
41,316
167,187
4,336
72,738
72,516
11,778

2.00%
2.00%
2.00%
1.00%
1.00%
1.00%
1.00%

1%
1%

23,283
15,663

23,516
15,820

23,751
15,978

23,989
16,138

24,229
16,299

1.00%
1.00%

569,361

578,382

587,560

596,898

606,398

1.59%

1.59%

4.2 Target Market Segment Strategy

COMPANY NAME will target its market segments as follows:
Households - The Company will launch an aggressive advertising campaign in the [CITY],
[STATE] and surrounding areas. This will be done with direct mailers, door hangers, yellow
pages, newspaper advertising, and radio advertising. Additionally the Company will update their
website with the ability to tie-into social media websites.
Wholesale to Floral shops - The Company will wholesale fresh cut flowers and arrangements to
florists in the [CITY] and surrounding areas. The Company will send a media kit to all of the
florists in the targeted areas and the owner will visit shops as a personal touch and relationship
will have to be formed for Florist to trust and use our service.
4.3 Industry Analysis
Holiday purchases traditionally drive the florist industry. The holidays, along with birthdays and
anniversaries, are ideal dates for purchases of fresh flowers and floral arrangements.
For reference, the following chart ranks floral purchases by holiday:
Holiday
Valentine's Day

Purchase %
36%

10

COMPANY NAME 2011

Mother's Day

27.4%

Christmas & Hanukkah

15.1%

Easter & Passover

8.9%

Thanksgiving Day

7.4%

Sweetest Day

1.2%

Administrative Professional's Day

1.1%

St. Patrick's Day

0.9%

Grandparent's Day

0.9%

Halloween

0.5%

Father's Day

0.4%

Boss' Day

0.2%

Source: American Floral Endowment Consumer Tracking Study

Capturing Valentine's Day Business:

Valentine's Day ranks number one in single-day holiday cut flower purchases, capturing 34
percent of transactions and 36 percent of dollar volume. Eighty percent of consumers who buy
floral arrangements for the romantic holiday purchase cut flowers. According to the International
Mass Retailers Association (IMRA), men are more likely to give flowers than women, and men
plan to spend $95 on the average, while women plan to spend $60. The average amount spent
per household is approximately $94.50, and the trend is an upward one.
To maximize Valentine's Day revenue with add-on sales, COMPANY NAME will offer special,
seasonal gourmet chocolates in addition to the store's normal gourmet chocolates. Chocolates
account for 75% of Valentine's Day candy sales, which totaled an estimated $1.1 billion in 2002.
A survey conducted by the Chocolate Manufacturers Association revealed that 50 percent of
women are likely to give a gift of chocolate to a man for Valentine's Day.
4.3.1 Competition and Buying Patterns
Profile of Traditional Buyers of Floral Arrangements:
Which households buy fresh cut flowers, how often and how much do they spend? According to
the American Floral Endowment Consumer Tracking Study, consumer spending is on the rise. For
example, the percentage of U.S. households making at least one fresh cut flower purchase during

11

COMPANY NAME 2011

the year continues to increase. The frequency of consumer flower purchases is also remaining
consistent.
27.7% of all US Household purchased fresh cut flowers at least once per year.
The average floral purchase per buying household was 3.7 times.
The average purchase price per buying household was $62.63.
The most frequent purchases are women over 35, with incomes in access of $30,000 who live
in metropolitan areas with populations greater than 2.5 million.
Seventy percent of floral buys are planned purchased.
Source: American Floral Endowment Consumer Tracking Study.
COMPANY NAME has three different types of competitors:
Retail Stores - There are many retail florist shops in the [CITY] County and surrounding County
areas. These are small operations that rely on walk-in local business. Most local florists do not
deliver giving COMPANY NAME an advantage.
Wholesale Florists - There are few wholesale Florists in the County. The Company's advantage is
the personal relationship the owner has cultivated with growers and master distributors enabling
the Company to purchase a wide variety of fresh flowers at an advantageous price.
On-line Florists - In addition to traditional florists, floral arrangements can be purchased via the
Internet. Such services are offered by FTD.com, 1-800-Flowers, etc. Orders are then given to
local florist to deliver. When the floral arrangements arrive, they require arranging, and often the
finished product may not match the photo that drove the purchase. Deliveries present another
challenge if the gift recipient isn't home. The flowers are either returned to the shipper's
distribution center where they remain in a box, or they are left in the box on a doorstep for an
undetermined amount of time. In either situation, the quality of the live, perishable flowers is
reduced. The Company's internet marketing advantage is its ability to control the buying process;
from the point of order to design, arrangement and delivery to the customer.
5.0 Web Plan Summary
COMPANY NAME current website offers current information on service offerings,
company background, product offerings, a shopping cart, discounts and specials. The Company
will use grant funds to update their website, create a website for the wholesale division and social
media marketing.
Currently, the Company has been in conversation with several persons qualified to provide an
attractive and exciting web page; however, the Company hasn't made a final decision. The
Company is focusing on web designers that are residents of the [CITY] County community. The
Company feels very strongly in keeping its funds within the community. The website is another
method to generate steady business in its area.
5.1 Website Marketing Strategy
Our website will be promoted on all of our marketing materials. We will advertise our site on our
business cards as well as in other industry related publications.
As numerous studies have documented, most people buy based on the conversation and
recommendations of trusted friends, family and colleagues. Finding the people that influence their
peers' decisions where to shop and what to buy has long been viewed as the Holy Grail of

12

COMPANY NAME 2011

marketing. Increasingly, online social networks are being seen as venues for locating these
influencers. The Company plans to tie-into social media sites to expand our presence on the web
to our targeted customers.
5.2 Development Requirements
COMPANY NAME website is an attractive, simple and informative internet focused website.
The Company will update their website and will make sure that its very user friendly and
effective. The Company plans to tie-into social media sites to expand our presence on the web to
our targeted base.
6.0 Strategy and Implementation Summary
COMPANY NAME has clearly defined the target market and has differentiated itself by offering
a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established
with an implementation plan designed to ensure the goals set forth below are achieved.

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COMPANY NAME 2011

6.1 SWOT Analysis

COMPANY NAME
The SWOT analysis aids in displaying the internal strengths and weaknesses that COMPANY NAME
must address. It allows us to examine the opportunities presented to COMPANY NAME as well as
potential threats. The Company's strength will help it to succeed. These strengths are:
1. Experience - INSERT NAME has been in the floral business over 10 years
2. Floral Designs - The Company has a strong background and training in floral design and
arrangements
3. Customer Service - our goal is to exceed our customers' expectations with quality, value and
professional service
4. Customer Base - The Company has a strong loyal satisfied customer base
Strengths are valuable, but it is also important to realize the weaknesses COMPANY NAME must
address. These weaknesses include the lack of funding to expand and grow the business. The
Companies strengths will help it capitalize on emerging opportunities. These opportunities
include, but are not limited to:
1. Opening additional retail operations in the surrounding County areas
2. Expand wholesale service throughout the State of [STATE]
3. Increasing the number of clients substantially with internal efficiencies and marketing strategy
4. Growing market with a significant percentage of our target market still not knowing we exist
5. Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach.
Threats that the company should be aware of include, the economy, fuel costs and the cost of
purchasing and importing flowers.
6.1.1 Strengths
COMPANY NAME Strengths are:
1. Experience - INSERT NAME has been in the floral business over 10 years
2. Floral Designs - The Company has a strong background and training in floral design and
arrangements
3. Customer Service - our goal is to exceed our customers' expectations with quality, value and
professional service
4. Customer Base - The Company has a strong loyal satisfied customer base
6.1.2 Weaknesses
COMPANY NAME weaknesses come from the lack of funding to expand and grow the business
from a retail and wholesale basis. Grant funds will be used to launch our wholesale division
including leasehold improvements, purchase coolers and display cases, purchase of office

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COMPANY NAME 2011

furniture, fixtures and equipment, purchase of Company vans and cars, upgrading our website,
hiring employees and launching an advertising campaign.
6.1.3 Opportunities
Opportunities for COMPANY NAME include:
1. Opening additional retail operations in the surrounding County areas
2. Expand wholesale service throughout the State of [STATE]
3. Increasing the number of clients substantially with internal efficiencies and marketing strategy
4. Growing market with a significant percentage of our target market still not knowing we exist
5. Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach
6.1.4 Threats
COMPANY NAME's threats are a bad economy, fuel costs and cost of purchasing and importing
flowers.
6.2 Competitive Edge
COMPANY NAME competitive edge is the skill, caring and talent that INSERT NAME brings to the
Company. Her design talent and creativity are well known by her customers. The Company has
an honest and trustworthy reputation in the community. The Company will maintain an equally
talented staff to assist INSERT NAME.
The Company will use its strengths to compete in the local market:

100% Satisfaction Guaranteed

Your Satisfaction is Our #1 Concern
Committed to Quality and Service
Flowers & Gifts for All Occasions
Personalized Care with Each Order
Delivery to all of our areas serviced

The Company has a loyal base of satisfied customers to draw business from as word of mouth is
an important factor in the retail floral trade. COMPANY NAME is known as a warm, friendly and
inviting place to shop for your floral arrangements.
6.3 Marketing Strategy
COMPANY NAME marketing strategy is to continue to expand services into the [CITY] and
surrounding areas by utilizing an aggressive advertising campaign and website social media
advertising.
The Company will target households with Direct Mailers, newspaper & magazine advertising and
through social websites. INSERT NAME plans on contacting/introducing/expanding its wholesale
business. A personal touch will be needed for this effort as a trust will have to be formed to
secure customers.

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COMPANY NAME 2011

6.4 Sales Strategy
The owner of COMPANY NAME believes strongly in customer service, friendly, courteous and
timely customer service. Making sure the customer is satisfied not only with the flowers and
arrangements they purchased with the customers service provided and shopping experience.
The Company will use grant money to launch our wholesale operation and improve the internal
environment for a more upscale shopping experience. The Company will also increase their
inventory of product for sale giving the customer a wider variety of goods for purchase.
Currently, [COMPANY NAME] is working on an Advertising Campaign starting in the first quarter
of 2011 that will include the following:
1. Direct Mailers and Door Hangers
2. Newspaper Advertising
3. Radio Advertising
4. Develop and launch Website and social media advertising.
The Advertising Campaign will give the Company new customer leads in [CITY] and the
surrounding areas.

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COMPANY NAME 2011

6.4.1 Sales Forecast

The sales forecast table is broken down into two main revenue streams:
Retail Sales: The Company has a retail store location in [CITY], [STATE]. The Company estimates
sales for 2011 of $160,000 with a 25% increase for 2012 and 2013 due to the advertising
campaign, website social media advertising and the increase in the variety of flowers and
products offered due to the launch of the wholesale operation. Cost of sales is estimated at 15%.
Wholesale Sales: The Company has secured contacts for the import of flowers enabling the
Company to launch wholesale operations. The Company estimates sales of $350,000 during
2011, first year of operations with a 30% increase for 2012 and a 40% increase in sales for 2013.
Cost of Sales is estimated at 30%.
Table: Sales Forecast
Sales Forecast
2011
Sales
Retail Sales
Wholesale Sales
Total Sales
Direct Cost of Sales
Retail Sales
Wholesale Sales
Subtotal Direct Cost of Sales

2012

2013

$160,000
$350,000
$0
$510,000

$200,000
$455,000
$0
$655,000

$250,000
$637,000
$0
$887,000

2011
$24,000
$105,000
$0
$129,000

2012
$30,000
$136,500
$0
$166,500

2013
$37,500
$191,100
$0
$228,600

17

COMPANY NAME 2011

Chart: Sales Monthly

Chart: Sales by Year

18

COMPANY NAME 2011

6.5 Milestones
In order to achieve the growth and marketing goals that have been outlined in this business
plan, the Company has the following deadlines to meet and ideas to implement. Some of these
are outlined below:
1. Obtain Funding to expand, grow and improve the business.
2. Secure a location in [CITY], [STATE] to launch our wholesale operation.
3. Construction/Leasehold Improvements in the Companys wholesale location
4. Purchase five energy efficient Coolers for flowers and arrangements
5. Purchase Display Cases
6. Purchase computers, office equipment, office furniture and fixtures
7. Purchase four fuel efficient Delivery Vans, two with cooling systems
8. Purchase two fuel efficient Company vehicles
9. Hire employees, the Company will look to hire minorities, veterans, disabled persons and the
unemployed
10. Update our website and social media
11. Launch an advertising campaign
12. Working Capital to support operation until cash flow profitability
Table: Milestones
Milestones
Milestone
Building Lease Deposits
Leasehold Improvements
Purchase Five Coolers
Purchase Display Cases
Purchase Office Computers
Purchase Office Equipment
Purchase Office Furniture
Purchase Four Delivery Vans
Purchase Two Autos
Hire Employees
Launch Advertising Campaign
Website & Website Marketing
Working Capital
Totals

Start Date
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011
1/1/2011

End Date
1/7/2011
2/5/2011
2/5/2011
2/5/2011
1/31/2011
2/5/2011
2/5/2011
12/31/2011
3/31/2011
12/31/2011
12/31/2011
3/31/2011
12/31/2011

Budget
$6,000
$20,000
$50,000
$10,000
$20,000
$4,000
$25,000
$104,000
$36,000
$205,000
$12,000
$3,000
$105,000
$600,000

Manager
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner

Department
Operations
Operations
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department

19

COMPANY NAME 2011

Chart: Milestones

7.0 Management Summary

COMPANY NAME is owned and operated by INSERT NAME. INSERT NAME is responsible for all
operational and administrative aspects of the business. INSERT NAME has been in the floral
business since 1999 and has a loyal satisfied customer base. Additionally, she has been able to
develop relationship with growers around the world to enable the Company to launch a wholesale
division to sell to florist in [STATE].
INSERT NAME will be assisted by an administrative assistant who will be responsible for the dayto-day operations of the wholesale division.
7.1 Personnel Plan
The table below contains the details of our personnel plan. The owner, INSERT NAME has not
taken a salary in 2010 and received distributions from cash profit as the Company is a sole
proprietorship. INSERT NAME will receive compensation of $40,800 in 2011.
COMPANY NAME has a retail store with an internet employee, design employee and two part-time
sales clerks. The Wholesale operation will have an administrative assistant, internet employees,
design employees, sales clerks and salesman.
Additionally, the Company will have delivery drivers on an on-call basis, shown as Other Cost of
Sales for statement purposes.
COMPANY NAME estimates it will grow from five employees in 2010 to 16 employees in 2011, 18
in 2012 and 20 in 2013 with additional 6 to 12 drivers a year. The Company will look to hire
veterans, minorities, disabled persons and the unemployed.
The Company anticipates a 3% increase per year for employee salaries. The Personnel Plan
reflects the need to bolster our capabilities to match our positioning.

20

COMPANY NAME 2011

Table: Personnel
Personnel Plan
INSERT NAME
Retail Store Employees:
Internet Employee
Design Employee
Two Sales Clerks
Wholesale Operation Employees:
Administrative Assistant
Design Employees
Internet Employees
Sales Clerks
Salesman
Total People
Total Payroll

2011
$40,800
$0
$12,480
$15,600
$21,600
$0
$26,400
$45,000
$37,500
$22,500
$21,000
16
$242,880

2012
$42,024
$0
$12,854
$16,068
$22,248
$0
$27,192
$76,500
$63,000
$32,800
$36,500
18
$329,186

2013
$43,285
$0
$13,240
$16,550
$22,915
$0
$28,008
$78,795
$64,890
$38,800
$46,200
20
$352,683

8.0 Financial Plan

The current financial plan for COMPANY NAME is to obtain grant funding in the amount of
$600,000. The grant will be used to launch our wholesale division including leasehold
improvements, purchase coolers and display cases, purchase of office furniture, fixtures and
equipment, purchase of Company vans and cars, upgrading our website, hiring employees and
launching an advertising campaign.
The following sections of this plan will serve to describe the Company's financial plan in more
detail:

General Assumptions
Break-even Analysis
Profit and Loss
Cash Flow
Balance Sheet
Ratios

8.1 Important Assumptions

The table below presents the assumptions used in the financial calculations of this
grant plan. COMPANY NAME is a Sole Proprietorship and is taxed accordingly, estimated at a 25%
tax rate. Depreciation expense is based on the scheduled additions in the Milestones Table.
Insurance, utilities and all other expenses assume a 3% increase due to inflation & other cost
variables.
8.2 Break-even Analysis
For the Company's break-even analysis for 2011, the monthly revenue break-even is projected to
be $48,770. Sales are projected to increase 28% for 2012 and 35% in 2013 periods due to the
internal expansion of the Company along with the advertising campaigns.

21

COMPANY NAME 2011

Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even

$48,770

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

25%
$36,434

Chart: Break-even Analysis

22

COMPANY NAME 2011

8.3 Projected Profit and Loss

COMPANY NAME Pro Forma Profit and Loss statement was constructed based in large part on past
performance over the 2010 period, the opening of a wholesale operation and investments in
marketing and advertising.
The sales for 2011, 2012 and 2013 are $510,000, $655,000 and $887,000, respectively. Gross
Profit will be 59.71% in 2011, 59.58% in 2012 and 59.23% in 2013. The Company will show a
Net Loss for 2011, 2012 and 2013 of ($132,709), ($166,183) and ($61,333), respectively due to
the internal expansion of the Company to launch the marketing, sales and operation efforts
needed to take advantage of the market and growth in the future years. The Company will show
a negative EBITDA of ($105,539) in 2011, ($123,183) in 2012 and ($18,333) in 2013. The
Operating expenses as a percentage of sales for this period were 85.73%, 84.95% and 66.14%,
respectively. The percentages of the net profit to sales for this period were (26.02)%, (25.37)%
and (6.91)%, respectively. The Operating Expenses and Net Profit to Sales for the 2011,
2012 and 2013 period are affected by the internal expansion of the Company. Gross Profit will
remain in the 59% range in 2014/2015 and future years. Operating Expenses to Sales will
continue to decrease and range in the 60% - 62% by the 2014/2015 and future years. The
Company estimates a positive EBITDA in 2014 and a positive Net Profit in 2015. Net Profit and
Net Profit to Sales Percentage will continue to rise in future years as the internal expansion and
investments in Marketing and Advertising bear fruit.

23

COMPANY NAME 2011

Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

2011
$510,000
$129,000
$76,500
$205,500

2012
$655,000
$166,500
$98,250
$264,750

2013
$887,000
$228,600
$133,050
$361,650

Gross Margin
Gross Margin %

$304,500
59.71%

$390,250
59.58%

$525,350
59.23%

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Website Marketing
Phone/Fax/Internet
Fuel/Auto/Van Expense
Payroll Taxes
Other

$242,880
$12,000
$27,170
$75,600
$9,600
$12,400
$3,900
$10,800
$15,000
$21,859
$6,000

$329,186
$12,360
$43,000
$77,868
$9,888
$18,000
$1,200
$11,124
$18,000
$29,627
$6,180

$352,683
$12,731
$43,000
$80,204
$10,185
$18,540
$1,236
$11,458
$18,540
$31,741
$6,365

Total Operating Expenses

$437,209

$556,433

$586,683

Profit Before Interest and

Taxes
EBITDA
Interest Expense
Taxes Incurred

($132,709)

($166,183)

($61,333)

($105,539)
$0
$0

($123,183)
$0
$0

($18,333)
$0
$0

Net Profit
Net Profit/Sales

($132,709)
-26.02%

($166,183)
-25.37%

($61,333)
-6.91%

24

COMPANY NAME 2011

Chart: Profit Monthly

Chart: Profit Yearly

25

COMPANY NAME 2011

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

26

COMPANY NAME 2011

8.4 Projected Cash Flow

COMPANY NAME has applied for a grant of $600,000. The Company forecast that it'll receive
$600,000 in the month of January 2011.
The following table displays the Company's cash flow, and the chart illustrates monthly cash flow
in the first year. Monthly cash flow projections are also included in the appendix.
Table: Cash Flow
Pro Forma Cash Flow
2011

2012

2013

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
Subtotal 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

$510,000
$510,000

$655,000
$655,000

$887,000
$887,000

$0
$0
$0
$0
$0
$0
$600,000
$1,110,000

$0
$0
$0
$0
$0
$0
$0
$655,000

$0
$0
$0
$0
$0
$0
$0
$887,000

2011

2012

2013

$242,880
$321,350
$564,230

$329,186
$471,517
$800,704

$352,683
$548,209
$900,892

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$15,000
$269,000
$0
$848,230

$10,000
$0
$0
$810,704

$10,000
$0
$0
$910,892

$261,770
$262,270

($155,704)
$106,567

($23,892)
$82,675

27

COMPANY NAME 2011

Chart: Cash

8.5 Projected Balance Sheet

COMPANY NAME net worth is $470,391, $304,208 and $242,875 for 2011, 2012 and 2013,
respectively. The Company's Total Assets at the end of 2011, 2012 and 2013 will be $533,350,
$340,795 and $288,691, respectively.

28

COMPANY NAME 2011

Table: Balance Sheet

Pro Forma Balance Sheet
2011

2012

2013

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$262,270
$14,250
$15,000
$291,520

$106,567
$10,398
$25,000
$141,965

$82,675
$15,186
$35,000
$132,861

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$275,000
$33,170
$241,830
$533,350

$275,000
$76,170
$198,830
$340,795

$275,000
$119,170
$155,830
$288,691

Liabilities and Capital

2011

2012

2013

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$62,960
$0
$0
$62,960

$36,587
$0
$0
$36,587

$45,817
$0
$0
$45,817

Long-term Liabilities
Total Liabilities

$0
$62,960

$0
$36,587

$0
$45,817

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

$600,100
$3,000
($132,709)
$470,391
$533,350

$600,100
($129,709)
($166,183)
$304,208
$340,795

$600,100
($295,892)
($61,333)
$242,875
$288,691

Net Worth

$470,391

$304,208

$242,875

8.6 Business Ratios

The table below presents the projected business ratios from the Florists Industry as a reference
with sales between $500,000 and $999,999.

29

COMPANY NAME 2011

Table: Ratios
Ratio Analysis
2011
Sales Growth
Percent of Total Assets
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

2012

2013

Industry
Profile
-5.48%

500.00%

28.43%

35.42%

2.67%
2.81%
54.66%
45.34%
100.00%

3.05%
7.34%
41.66%
58.34%
100.00%

5.26%
12.12%
46.02%
53.98%
100.00%

37.64%
33.12%
82.46%
17.54%
100.00%

11.80%
0.00%
11.80%
88.20%

10.74%
0.00%
10.74%
89.26%

15.87%
0.00%
15.87%
84.13%

30.34%
52.70%
83.04%
16.96%

100.00%
59.71%
85.73%

100.00%
59.58%
84.95%

100.00%
59.23%
66.14%

100.00%
41.75%
16.76%

2.35%
-26.02%

1.89%
-25.37%

1.44%
-6.91%

1.60%
3.43%

Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

4.63
4.40
11.80%
-28.21%
-24.88%

3.88
3.60
10.74%
-54.63%
-48.76%

2.90
2.57
15.87%
-25.25%
-21.25%

2.32
1.08
83.04%
85.01%
14.42%

Additional Ratios
Net Profit Margin
Return on Equity

2011
-26.02%
-28.21%

2012
-25.37%
-54.63%

2013
-6.91%
-25.25%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth

n.a
n.a

20.67
6.08
27
0.96

13.51
12.17
41
1.92

17.87
12.17
27
3.07

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

0.13
1.00

0.12
1.00

0.19
1.00

n.a
n.a

$228,561
0.00

$105,378
0.00

$87,045
0.00

n.a
n.a

1.05
12%
4.40
1.08

0.52
11%
3.60
2.15

0.33
16%
2.57
3.65

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

30

COMPANY NAME 2011

Dividend Payout

0.00

0.00

0.00

n.a

31

Appendix
Table: Sales Forecast
Sales Forecast
Jan
Sales
Retail Sales
Wholesale Sales
Total Sales
Direct Cost of
Sales
Retail Sales
Wholesale Sales
Subtotal Direct
Cost of Sales

$6,000
$6,000
$0
$12,000

Feb
$30,000
$50,000
$0
$80,000

Mar

Apr

$6,000
$8,000
$0
$14,000

$7,000
$10,000
$0
$17,000

May
$30,000
$60,000
$0
$90,000

Jun

Jul

Aug

Sep

Oct

$7,000
$12,000
$0
$19,000

$7,000
$14,000
$0
$21,000

$7,000
$18,000
$0
$25,000

$7,000
$20,000
$0
$27,000

$7,000
$22,000
$0
$29,000

Nov
$16,000
$50,000
$0
$66,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

$900
$1,800
$0
$2,700

$4,500
$15,000
$0
$19,500

$900
$2,400
$0
$3,300

$1,050
$3,000
$0
$4,050

$4,500
$18,000
$0
$22,500

$1,050
$3,600
$0
$4,650

$1,050
$4,200
$0
$5,250

$1,050
$5,400
$0
$6,450

$1,050
$6,000
$0
$7,050

$1,050
$6,600
$0
$7,650

$2,400
$15,000
$0
$17,400

Dec
$30,000
$80,000
$0
$110,000
Dec
$4,500
$24,000
$0
$28,500

Page 1

Appendix
Table: Personnel
Personnel Plan
INSERT NAME
Retail Store
Employees:
Internet
Employee
Design
Employee
Two Sales
Clerks
Wholesale
Operation
Employees:
Administrative
Assistant
Design
Employees
Internet
Employees
Sales Clerks
Salesman
Total People
Total Payroll

Jan
$3,400
$0

Feb
$3,400
$0

Mar
$3,400
$0

Apr
$3,400
$0

May
$3,400
$0

Jun
$3,400
$0

Jul
$3,400
$0

Aug
$3,400
$0

Sep
$3,400
$0

Oct
$3,400
$0

Nov
$3,400
$0

Dec
$3,400
$0

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,040

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,300

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$2,200

$1,800

$3,600

$3,600

$3,600

$3,600

$3,600

$3,600

$3,600

$3,600

$3,600

$5,400

$5,400

$1,500

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$4,500

$4,500

$1,800
$1,500
11

$1,800
$1,500
14

$1,800
$1,500
14

$1,800
$1,500
14

$1,800
$1,500
12

$1,800
$1,500
12

$1,800
$1,500
12

$1,800
$1,500
12

$1,800
$1,500
12

$1,800
$1,500
12

$1,800
$3,000
15

$2,700
$3,000
16

$16,340

$19,640

$19,640

$19,640

$19,640

$19,640

$19,640

$19,640

$19,640

$19,640

$24,440

$25,340

Page 2

Appendix
Table: Profit and Loss
Pro Forma Profit and
Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

Jan
$12,000
$2,700
$1,800
$4,500

Feb
$80,000
$19,500
$12,000
$31,500

Mar
$14,000
$3,300
$2,100
$5,400

Apr
$17,000
$4,050
$2,550
$6,600

May
$90,000
$22,500
$13,500
$36,000

Jun
$19,000
$4,650
$2,850
$7,500

Jul
$21,000
$5,250
$3,150
$8,400

Aug
$25,000
$6,450
$3,750
$10,200

Sep
$27,000
$7,050
$4,050
$11,100

Oct
$29,000
$7,650
$4,350
$12,000

Nov
$66,000
$17,400
$9,900
$27,300

Gross Margin
Gross Margin %

$7,500
62.50%

$48,500
60.62%

$8,600
61.43%

$10,400
61.18%

$54,000
60.00%

$11,500
60.53%

$12,600
60.00%

$14,800
59.20%

$15,900
58.89%

$17,000
58.62%

$38,700
58.64%

$16,340
$1,000
$0
$6,300
$800
$1,000
$1,000
$900
$1,200

$19,640
$1,000
$0
$6,300
$800
$1,000
$1,000
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$1,000
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$19,640
$1,000
$2,717
$6,300
$800
$1,000
$100
$900
$1,200

$24,440
$1,000
$2,717
$6,300
$800
$1,200
$100
$900
$1,500

$1,768
$500

$1,768
$500

$1,768
$500

$1,768
$500

$1,768
$500

$1,768
$500

$1,768
$500

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Website Marketing
Phone/Fax/Internet
Fuel/Auto/Van
Expense
Payroll Taxes
Other
Total Operating
Expenses

9%

$1,471
$500

$1,768
$500

$1,768
$500

$2,200
$500

$30,511

$34,108

$36,825

$35,925

$35,925

$35,925

$35,925

$35,925

$35,925

$35,925

$41,657

Profit Before Interest

and Taxes
EBITDA
Interest Expense
Taxes Incurred

($23,011)

$14,392

($28,225)

($25,525)

$18,075

($24,425)

($23,325)

($21,125)

($20,025)

($18,925)

($2,957)

($23,011)
$0
$0

$14,392
$0
$0

($25,508)
$0
$0

($22,808)
$0
$0

$20,792
$0
$0

($21,708)
$0
$0

($20,608)
$0
$0

($18,408)
$0
$0

($17,308)
$0
$0

($16,208)
$0
$0

($240)
$0
$0

Net Profit
Net Profit/Sales

($23,011)
191.76%

$14,392
17.99%

($28,225)
201.60%

($25,525)
150.14%

$18,075
20.08%

($24,425)
128.55%

($23,325)
111.07%

($21,125)
-84.50%

($20,025)
-74.17%

($18,925)
-65.26%

($2,957)
-4.48%

Page 3

Appendix

Page 4

Appendix
Table: Cash Flow
Pro Forma
Cash Flow
Jan
Cash
Received
Cash from
Operations
Cash Sales
Subtotal
Cash from
Operations
Additional
Cash
Received
Sales Tax,
VAT,
HST/GST
New Current
Borrowing
New Other
Liabilities
(interestfree)
New Longterm
Liabilities
Sales of
Other
Current
Assets
Sales of
Long-term
Assets
New
Investment
Received
Subtotal
Cash
Received
Expenditures
Expenditures
from
Operations
Cash

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$12,000
$12,000

$80,000
$80,000

$14,000
$14,000

$17,000
$17,000

$90,000
$90,000

$19,000
$19,000

$21,000
$21,000

$25,000
$25,000

$27,000
$27,000

$29,000
$29,000

$66,000
$66,000

$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

$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

$600,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$612,000

$80,000

$14,000

$17,000

$90,000

$19,000

$21,000

$25,000

$27,000

$29,000

$66,000

Jan

$16,340

Feb

$19,640

Mar

$19,640

Apr

$19,640

May

$19,640

Jun

$19,640

Jul

$19,640

Aug

$19,640

Sep

$19,640

Oct

$19,640

Nov

$24,440

$110,000
$110,000

$110,000

Dec

$25,340

Page 5

Appendix
Spending
Bill
Payments
Subtotal
Spent on
Operations
Additional
Cash Spent
Sales Tax,
VAT,
HST/GST
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

$1,966

$18,186

$52,189

$16,553

$17,528

$57,018

$16,470

$18,205

$24,388

$24,998

$26,561

$47,290

$18,306

$37,826

$71,829

$36,193

$37,168

$76,658

$36,110

$37,845

$44,028

$44,638

$51,001

$72,630

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$5,000

$0

$0

$0

$0

$0

$0

$0

$0

$5,000

$5,000

$73,000

$72,000

$72,000

$0

$0

$0

$0

$0

$0

$26,000

$26,000

$0

$0
$91,306

$0
$114,826

$0
$143,829

$0
$36,193

$0
$37,168

$0
$76,658

$0
$36,110

$0
$37,845

$0
$44,028

$0
$70,638

$0
$82,001

$0
$77,630

$520,694

($34,826)

($129,829)

($19,193)

$52,832

($57,658)

($15,110)

($12,845)

($17,028)

($41,638)

($16,001)

$32,370

$521,194

$486,369

$356,540

$337,347

$390,179

$332,522

$317,412

$304,567

$287,539

$245,901

$229,900

$262,270

Page 6

Appendix
Table: Balance Sheet
Pro Forma
Balance
Sheet
Jan
Assets
Current
Assets
Cash
Inventory
Other
Current
Assets
Total Current
Assets
Long-term
Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets
Liabilities
and Capital
Current
Liabilities
Accounts
Payable
Current
Borrowing
Other
Current
Liabilities
Subtotal
Long-term
Liabilities
Total
Liabilities
Paid-in
Capital
Retained
Earnings
Earnings
Total Capital

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Starting
Balances

$500
$4,000
$0

$521,194
$2,300
$0

$486,369
$9,750
$5,000

$356,540
$6,450
$5,000

$337,347
$2,400
$5,000

$390,179
$11,250
$5,000

$332,522
$6,600
$5,000

$317,412
$2,625
$5,000

$304,567
$3,225
$5,000

$287,539
$3,525
$5,000

$245,901
$3,825
$5,000

$229,900
$8,700
$10,000

$262,270
$14,250
$15,000

$4,500

$523,494

$501,119

$367,990

$344,747

$406,429

$344,122

$325,037

$312,792

$296,064

$254,726

$248,600

$291,520

$6,000

$79,000

$151,000

$223,000

$223,000

$223,000

$223,000

$223,000

$223,000

$223,000

$249,000

$275,000

$275,000

$6,000

$6,000

$6,000

$8,717

$11,434

$14,151

$16,868

$19,585

$22,302

$25,019

$27,736

$30,453

$33,170

$0

$73,000

$145,000

$214,283

$211,566

$208,849

$206,132

$203,415

$200,698

$197,981

$221,264

$244,547

$241,830

$4,500

$596,494

$646,119

$582,273

$556,313

$615,278

$550,254

$528,452

$513,490

$494,045

$475,990

$493,147

$533,350

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$1,400

$16,405

$51,637

$16,015

$15,580

$56,470

$15,870

$17,393

$23,555

$24,135

$25,005

$45,119

$62,960

$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

$1,400
$0

$16,405
$0

$51,637
$0

$16,015
$0

$15,580
$0

$56,470
$0

$15,870
$0

$17,393
$0

$23,555
$0

$24,135
$0

$25,005
$0

$45,119
$0

$62,960
$0

$1,400

$16,405

$51,637

$16,015

$15,580

$56,470

$15,870

$17,393

$23,555

$24,135

$25,005

$45,119

$62,960

$100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$600,100

$300

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$2,700
$3,100

($23,011)
$580,089

($8,618)
$594,482

($36,843)
$566,257

($62,367)
$540,733

($44,292)
$558,808

($68,717)
$534,383

($92,041)
$511,059

($113,166)
$489,934

($133,190)
$469,910

($152,115)
$450,985

($155,072)
$448,028

($132,709)
$470,391

Page 7

Appendix
Total
Liabilities
and Capital

$4,500

$596,494

$646,119

$582,273

$556,313

$615,278

$550,254

$528,452

$513,490

$494,045

$475,990

$493,147

$533,350

Net Worth

$3,100

$580,089

$594,482

$566,257

$540,733

$558,808

$534,383

$511,059

$489,934

$469,910

$450,985

$448,028

$470,391

Page 8