ANALYSIS REPORT

FOR

DENTAL LABORATORY BUSINESS

Why Start a Dental Laboratory Business?
One of the businesses that you won’t find loads of people involved in is a business that
requires detailed technical skills and one of such businesses is a dental laboratory business.
The fact that loads of people are not involved in this type of business does not mean that it is
not profitable.
The truth is that if your office is located in an area with loads of medical facilities, has good
vehicular traffic and you have competent and highly qualified technicians under your payroll,
you may not have to struggle to get people to patronize your services.
If you are sure this type of business is what you truly want to do after you must have
conducted your feasibility studies and market research, then the next step to follow is to write
a good business plan; a detailed blue print of how you intend raising your seed capital, setting
up the business, managing the flow of the business, sorting out tax and marketing your
services.
The truth is that it is one thing to have a fantastic idea cum business plan, and it is another
thing for the business plan to translate to profits that is why it is important to assemble a team
of dedicated workers to work with if you want to be successful with your dental laboratory
business. Here is a sample dental laboratory business plan that is capable of leading you all the
way.

A Sample Dental Laboratory Business Plan Template

 Industry Overview

Players in the dental laboratories industry are known to manufacture dentures, crowns,
bridges and orthodontic products customized for individual application as prescribed by
licensed dentists.
Technological changes in the Dental Laboratories industry, specifically computer-aided design
and computer-aided manufacturing (CAD/CAM) systems, improved the overall quality of
products and services offered by industry operators over the five years to 2018. New and
innovative technologies improved efficiency and provided flexibility to industry operators,
however, a transforming competitive landscape presented new challenges.
Dental clinics generally attract customers with customizable products. Also, as healthcare
reform expands coverage for pediatric individuals, out-of-pocket dental costs will likely decline
for these patients, bolstering the number of dental visits and spurring demand for dental
laboratories.
The Dental Laboratories industry is indeed a very massive industry in the United States of
America. Recent statistics has it that the industry in the United States of America is worth over
$5billion, with an estimated growth rate of -1.0 percent between 2013 and 2018.
There are about 50,936 dental laboratories spread across different regions in the United States
and they are responsible for employing about 12,830 people that comprises of dentist, dental
surgeons, nurses and other health and non – health workers. It is important to state that there
is no dental laboratory that can boast of having a lion share of the available market in the
United States.
No doubt, there are several barriers that dissuade entry to this industry. Some of them include
heavy regulation, moderate investment costs, a high level of competition and a fast rate of
technological change. The industry is capital intensive.
In addition to acquiring, maintaining and updating specialized technical equipment, companies
must have access to competitively priced raw materials like nonferrous materials. At the same
time, companies entering the industry require a workforce that is specialized in dental
equipment production.
While utilizing automation and technology has slightly mitigated the industry’s shortage of
dental technicians, with computer imaging experience and medical device expertise, industry
operators will still vie for access to a skilled, yet creative workforce.
If you are considering starting your own dental laboratory in the United States, then you
should try and work around the industry barriers. The truth is that the barriers to entry in the
dental clinic line of business are high due to the significant regulatory requirements and the
experience and strength of incumbents.
It is absolutely compulsory for any investor who is looking towards starting a dental laboratory
to meet extensive federal, state and local laws and regulations. These regulations relate to the
adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and
complying with building codes and environmental protection laws. These regulations make it
difficult and costly for aspiring entrepreneurs to enter the industry.

Dental Laboratory Business Plan – Executive Summary

Duke Jefferson® Dental Laboratory, LLC is a standard, licensed and certified dental laboratory
that will be located in the heart of Westchester County, New York – United States of America.
Our laboratory facility is adjacent one of the biggest dental clinics in the whole of New York.
Duke Jefferson® Dental Laboratory, LLC is in the industry to manufacture dentures, crowns,
bridges and orthodontic products such as Implants, Inlays, onlays and veneers customized for
individual application as prescribed by licensed dentists and also to provide support services
for dental clinics. We are well trained and equipped to service the market segments that
require our services.
We will ensure that in the line of carrying out our duty, we comply with the laws and health
regulations in New York and the United States of America. Our employees are well trained and
qualified to handle the wide range of dental services.
Our dental laboratory facility will be opened round the clock to attend to clients (patients). Our
workforce will be well trained to operate within the framework of our organization’s corporate
culture and also to meet the needs of all our customers.
Duke Jefferson® Dental Laboratory, LLC will ensure that all our patients cum customers are
given first class treatment whenever they visit our dental laboratory. We have a CRM software
that will enable us manage a one on one relationship with our customers no matter how large
they grow to.
Duke Jefferson® Dental Laboratory, LLC is a family business that is owned and managed by Dr.
Duke Jefferson. He has a Degree in Laboratory Science. A native of Poughkeepsie, New York,
Dr. Duke a notable lab scientist also ran track at Penn State. He started his career at one of the
leading dental clinics in New York as a lab technologist. Subsequent roles at the company
included Head dental lab, and lead researcher of lab scientists.

 Our Services Offering

Duke Jefferson® Dental Laboratory, LLC is in the dental laboratory line of business to service a
wide range of clients and of course to make profits, which is why we will ensure we go all the
way to ensure that we hire competent dental lab technicians. We will be involved in;

 Manufacturing customized dentures

 Manufacturing customized crowns

 Manufacturing customized bridges

 Manufacturing customized orthodontic products such as Implants, Inlays, onlays and

veneers

Our Vision Statement

Our vision is to become one of the leading brands in the dental laboratory line of business in
New York and to establish a one stop dental laboratory in Westchester County – New York and
in other key cities in the United States of America.

 Our Mission Statement

Our mission is to establish a world – class dental laboratory business that will be involved in
the manufacturing of quality dentures, crowns, bridges and orthodontic products such as
Implants, Inlays, onlays and veneers customized for individual application as prescribed by
licensed dentists at affordable prices.

 Our Business Structure

Our intention of starting a dental laboratory business is to build a standard dental laboratory in
Westchester County – New York. We will ensure that we put the right structures in place that
will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready
to work to help us build a prosperous business that will benefit all the stake holders. As a
matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the
following positions;

 Lead Dental Lab Scientists (Manager)

 Accountant/Cashier

 Marketing and Sales Executive

 Client Service Executive

 Dental Laboratory Technologists and Scientist

Roles and Responsibilities

Lead Dental Lab Scientist (Manager):

 Responsible for providing direction for the business

 Responsible for fixing prices and signing business deals and payment of salaries

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

 Accountable for managing the daily activities in the organization

 Ensures that the facility is in tip top shape and conducive enough to welcome
customers

 Prepares budget and reports for the organization

 Defines job positions for recruitment and managing interviewing process

 Carries out staff induction for new team members

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization

 Regularly holds meetings with key stakeholders (clients and member of the board) to
review the effectiveness of the business Policies, Procedures and Processes

 Maintains office supplies by checking stocks; placing and expediting orders; evaluating
new products.

 Ensures operation of equipment by completing preventive maintenance requirements;

calling for repairs.
  Carries out induction for new team members

 Responsible for training, evaluation and assessment of employees

 Oversees the smooth running of the daily activities of organization.

Dental Laboratory Technicians

 Responsible for the design and manufacturing of customized dentures, customized

crowns, customized bridges and orthodontic products such as Implants, Inlays, onlays
and veneers customized for individual application as prescribed by licensed dentists.

 Handles any other duty as assigned by the manager.

Marketing and Sales Executive

 Identifies, prioritizes, and reaches out to new clients, and business opportunities et al

 Writes winning proposal documents, negotiate fees and rates in line with organizations’
policy

 Responsible for handling business research, market surveys and feasibility studies

 Documents all customer contact and information

 Represents Duke Jefferson® Dental Laboratory, LLC in strategic meetings

 Helps to increase sales and growth for Duke Jefferson® Dental Laboratory, LLC

Accountant/Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization

 Provides managements with financial analyses, development budgets, and accounting

reports

 Responsible for financial forecasting and risks analysis.

 Performs cash management, general ledger accounting, and financial reporting for the
organization

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensures compliance with taxation legislation

  Handles all financial transactions for Duke Jefferson® Dental Laboratory, LLC

 Serves as internal auditor for Duke Jefferson® Dental Laboratory, LLC

Client Service Executive

 Welcomes clients and visitors by greeting them in person or on the telephone;

answering or directing inquiries.

 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides
the client with a personalized customer service experience of the highest level

 Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services

 Consistently stays abreast of any new information on the organizations’ products and,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients when they make enquiries

 Receives parcels/documents for the company

 Distributes mails in the organization

 Handles any other duties as assigned

Dental Laboratory Business Plan – SWOT Analysis

We are quite aware that there are a number of dental laboratories in United States of America,
which is why we are following the due process of establishing a business. We know that if a
proper SWOT analysis is conducted for our business, we will be able to position our business
to maximize our strength, leverage on the opportunities that will be available to us, mitigate
our risks and be equipped to confront our threats.
Duke Jefferson® Dental Laboratory, LLC employed the services of an expert HR and Business
Analyst with bias in technical startups to help us conduct a thorough SWOT analysis and to
help us create a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Duke Jefferson® Dental
Laboratory, LLC;

 Strength:

Some of the positives that we are bringing to the fore in terms of strength is the fact that we
can boast of having some of the most competent and qualified dental lab technologists around
Westchester County – New York under our payroll. We are not ruling out the fact that we have
robust business network with loads of dental clinics across the city.

 Weakness:
A major weakness that may count against us is the fact that we are a new dental laboratory
business and we don’t have the financial capacity to compete with multi – million dollar dental
laboratories.

 Opportunities:

The rising elderly population will drive demand for dentures, bolstering industry revenue and
also strong demand for affordable dental restorative solutions will drive industry growth. So
also, the fact that we are going to be operating our dental laboratory close to the largest
dental clinic in Westchester County – New York provides us with unlimited opportunities to
offer our services to a large number of clients.
We have been able to conduct thorough feasibility studies and market survey and we know
what our potential clients will be looking for when they visit our dental laboratory.

 Threat:

Improving technology which ultimately will lead to durability of dental laboratory products will
pose a threat to our business. This is why dental practitioners will aim towards maximizing
revenue through the use of evolving technologies. Another threat that may likely confront us is
the arrival of a new dental laboratory outlet in same location where ours is located. So also,
unfavorable government policies may also pose a threat for businesses such as ours.

Dental Laboratory Business Plan – MARKET ANALYSIS

 Market Trends

If you are conversant with dental laboratory, you will quite agree that most dental laboratory
locate their facilities close to dental clinics as it enables them attract clients who want to make
use of customized dentures, crowns, bridges and orthodontic products.
So also, the need to meet up with international best practices and conforming with the
regulatory authority will result in revenue growth, but profit margins will stagnate as dental
laboratories keep prices low to attract more sales amid growing competition.
A close watch on the dental laboratory business activities reveals that, the industry has indeed
done pretty well due to the strong demand for latest dentures, crowns, bridges and
orthodontic product.
Another notable trend in the dental laboratories industry is that external factors such as
number of people with private health insurance and Per capita disposable income will impact
industry performance. Besides, the burgeoning elderly population provides the industry with
both challenges and new revenue streams.

 Our Target Market

We have positioned our dental laboratory to service businesses in the healthcare industry in
and around Westchester County – New York and every other location where other outlets of
our dental lab will be located. We have conducted our market research and feasibility studies
and we have ideas of what our target market would be expecting from us.
We are in business to offer a wide range of dental laboratory services to the following
customers;

 Hospitals

 Medical laboratories

 Medical colleges

 Dental clinics

Our Competitive Advantage

Top on the list when it comes to the competitive advantages that we will be bringing to the
table are access to a highly skilled workforce, a good technical knowledge of the product,
access to the latest technology and of course establishing an economy of scale.
We can confidently say that the location of our dental laboratory business will definitely count
as a positive for us amongst any competitor that might start a dental laboratory business in
same location where ours is located. For the time being, Duke Jefferson® Dental Laboratory,
LLC has no real competitors that can match compete with the quality of services we offer. Our
customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among
the best within our category in the industry. It will enable them to be more than willing to
build the business with us and help deliver our set goals and achieve all our business aims and
objectives.
Dental Laboratory Business Plan – SALES AND MARKETING STRATEGY

 Sources of Income

Duke Jefferson® Dental Laboratory, LLC is in business to attend to a wide range of clients in and
around Westchester County – New York. We are in this line of business to maximize profits and
we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be;

 Manufacturing customized dentures

 Manufacturing customized crowns

 Manufacturing customized bridges

 Manufacturing customized orthodontic products such as Implants, Inlays, onlays and

veneers

Sales Forecast
One thing is certain when it comes to dental laboratory business, if your facility is centrally
positioned within a location where you have a good number of dental clinics and health
facilities, you will always attract customers and that will sure translate to increase in revenue
generation for the business.
We are well positioned to take on the available market in Westchester County – New York and
we are quite optimistic that we will meet our set target of generating enough income / profits
from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the dental laboratories industry, we have analyzed our
chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Duke Jefferson® Dental Laboratory. It is based on the
location of our business and other factors as it relates to dental laboratory start – ups in the
United States;

 First Fiscal Year: $250,000

 Second Fiscal Year: $350,000

 Third Fiscal Year: $550,000

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor within same location.

 Marketing Strategy and Sales Strategy

Before choosing a location for Duke Jefferson® Dental Laboratory, LLC we conduct a thorough
market survey and feasibility studies in order for us to be able to penetrate the available
market and become the preferred choice for dental clinics, hospitals and healthcare facilities in
and around Westchester County – New York.
We hired experts who have good understanding of the industry to help us develop marketing
strategies that will help us achieve our business goal of winning a larger percentage of the
available market in Westchester County – New York. In summary, Duke Jefferson® Dental
Laboratory, LLC will adopt the following sales and marketing approach to win customers over;

 Introduce our dental laboratory by sending introductory letters alongside our brochure
to hospitals, dental clinics and key stake holders in Westchester County – New York

 Print out fliers and business cards and strategically drop them in offices, libraries, public
facilities and train stations et al.

 Use friends and family to spread word about our business

 Leverage on referral networks such as agencies that will attract clients who would need
our customized services
  Advertise our dental laboratory in relevant health magazines, newspapers, TV and radio
station.

 Attend relevant expos, seminars, and business fairs et al to market our services

 Engage in direct marketing approach

Dental Laboratory Business Plan – Publicity and Advertising Strategy

Despite the fact that our dental laboratory is well located, we will still go ahead to intensify
publicity for the business. Duke Jefferson® Dental Laboratory, LLC has a long-term plan of
opening outlets in various locations all around New York and key cities in the United States
which is why we will deliberately build our brand to be well accepted in Westchester County
before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging
on to promote and advertise Duke Jefferson® Dental Laboratory, LLC;

 Place adverts on community based newspapers, radio and TV stations

 Encourage the use of word of mouth publicity from our loyal customers

 Leverage on the internet and social media platforms like; YouTube, Instagram,
Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our
business.

 Ensure that our we position our banners and billboards in strategic positions all around
Westchester County – New York

 Distribute our fliers and handbills in target areas in and around our neighborhood

 Advertise our dental laboratory business in our official website and employ strategies
that will help us pull traffic to the site

 Brand all our official cars and vans and ensure that all our staff members wear our
branded shirt or cap at regular intervals.

Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend
to charge more and we don’t intend to charge less than our competitors are offering. The
prices of our services will be the same as what is obtainable in the open market throughout
the United States’ market.

 Payment Options

The payment policy adopted by Duke Jefferson® Dental Laboratory, LLC is all inclusive because
we are quite aware that different customers prefer different payment options as it suits them
but at the same time, we will ensure that we abide by the financial rules and regulation of the
United States of America. Here are the payment options that Duke Jefferson® Dental
Laboratory, LLC will make available to her clients;

 Payment with cash

 Payment via credit cards / Point of Sale Machines (POS Machines)

 Payment via online bank transfer

 Payment via check

 Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make
payment for all services and products without any stress on their part. Our bank account
numbers will be made available on our website and promotional materials.

 Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you
want to undertake. If you intend to go big by renting / leasing a big facility, then you would
need a good amount of capital as you would need to ensure that your employees are well
taken care of, and that your facility is conducive enough for workers to be creative and
productive.
The materials and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a dental laboratory and medical equipment repair business; it might differ in other
countries due to the value of their money. These are the key areas where we will spend our
startup capital on;

 The total fee for registering the business in the Unites States of America – $750.

 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – $3,300.

 Marketing promotion expenses for the grand opening of Duke Jefferson® Dental
Laboratory, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at
$0.04 per copy) for the total amount of $3,580.

 The cost for hiring business consultant – $2,500.

 Insurance (general liability, workers’ compensation and property casualty) coverage at a

total premium – $2,400.

 The cost for payment of rent for 12 months at $1.76 per square feet in the total amount
of $75,600.
  The cost for laboratory remodeling (construction of racks and shelves) – $20,000.

 Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).

 Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– $60,000

 The cost for start-up inventory (dental laboratory tool box and equipment)) – $50,000

 The cost for store equipment (cash register, security, ventilation, signage) – $13,750

 The cost of purchase and installation of CCTVs: $7,000

 The cost for the purchase of office furniture and gadgets (Computers, Printers,
Telephone, TVs, Sound System, tables and chairs et al): $4,000.

 The cost of launching a website: $600

 Miscellaneous: $5,000

We would need an estimate of $250,000 to successfully set up our dental laboratory in

Westchester County – New York.
Generating Startup Capital for Duke Jefferson® Dental Laboratory, LLC
Duke Jefferson® Dental Laboratory, LLC is a private registered business that is solely owned and
financed by Duke Jefferson. He has decided to restrict the sourcing of the startup capital to 3
major sources. These are the areas we intend generating our startup capital;

 Generate part of the startup capital from personal savings

 Source for soft loans from family members and friends

 Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan
from family members $10,000) and we are at the final stages of obtaining a loan facility of
$200,000 from our bank. All the papers and documents have been signed and submitted, the
loan has been approved and any moment from now our account will be credited with the
amount.
Dental Laboratory Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and
competence of their employees, their investment strategy and the business structure. If all of
these factors are missing from a business, then it won’t be too long before the business close
shop.
One of our major goals of starting Duke Jefferson® Dental Laboratory, LLC is to build a business
that will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our
wide range of dental laboratory products and services a little bit cheaper than what is
obtainable in the market and we are prepared to survive on lower profit margin for a while.
Duke Jefferson® Dental Laboratory, LLC will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and
retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best
hands we can get in the industry; they will be more committed to help us build the business of
our dreams.
Check List/Milestone

 Business Name Availability Check: Completed

 Business Registration: Completed

 Opening of Corporate Bank Accounts: Completed

 Securing Point of Sales (POS) Machines: Completed

 Opening Mobile Money Accounts: Completed

 Opening Online Payment Platforms: Completed

 Application and Obtaining Tax Payer’s ID: In Progress

 Application for business license and permit: Completed

 Purchase of Insurance for the Business: Completed

 Leasing of facility and remodeling the dental lab facility: In Progress

 Conducting Feasibility Studies: Completed

 Generating capital from family members: Completed

 Applications for Loan from the bank: In Progress

 Writing of Business Plan: Completed

 Drafting of Employee’s Handbook: Completed

  Drafting of Contract Documents and other relevant Legal Documents: In Progress

 Design of The Company’s Logo: Completed

 Printing of Promotional Materials: In Progress

 Recruitment of employees: In Progress

 Purchase of the needed furniture, racks, shelves, computers, electronic appliances,

office appliances and CCTV: In progress

 Creating Official Website for the Company: In Progress

 Creating Awareness for the business both online and around the community: In
Progress

 Health and Safety and Fire Safety Arrangement (License): Secured

 Establishing business relationship with hospitals, dental clinics and other health
facilities: In Progress

Executive Summary
Wright's Dental Laboratory is being established with the goal of providing dentists with
restorations of superior quality and value. We offer all the state-of-the-art esthetic materials.
Our product quality and services are excellent.
At Wright's Dental Laboratory, we recognize that every practice is different... and every doctor
is unique. We will take the time to listen to casework problems. Examine the
doctor's individual situation. In short, we reach a full understanding of their needs before we
recommend a solution. Then, working as their partner, we put our extensive resources to work
for them.
The result is creative and practical solutions to their casework needs on a consistent basis. All
backed by over twenty-five years of experience and an investment in the techniques that
enhance patient care quality like Procera, Targis, Vectris, Empress & Empress 2, as well as all
the premier implant systems. At Wright's Dental Laboratory, our products and services are a
valuable complement to well-established restorative treatment plans that promote aesthetics,
tooth reinforcement and conservative preparation techniques.
1.1 Keys to Success
The keys to success for Wright's Dental Laboratory are:
1. Our dental laboratory must continually adjust its methods to meet the constantly
evolving challenges of dentistry and aspirations of the dental professional.
2. Our dental laboratory must be deeply and loyally committed to maintaining
CONSISTENT product excellence.
3. Our dental laboratory's only dynamic resource is people. It must develop opportunities
for each person to use his/her abilities to the utmost of their potential.
1.2 Objectives
The objectives of Wright's Dental Laboratory are as follows:
 Increase sales significantly each year.
 Increase the number of dentists using lab services aggressively each year.
 Expand service area to include the entire Monroe tri-county area.

Executive Summary
Wright's Dental Laboratory is being established with the goal of providing dentists with
restorations of superior quality and value. We offer all the state-of-the-art esthetic materials.
Our product quality and services are excellent.

At Wright's Dental Laboratory, we recognize that every practice is different... and every doctor
is unique. We will take the time to listen to casework problems. Examine the
doctor's individual situation. In short, we reach a full understanding of their needs before we
recommend a solution. Then, working as their partner, we put our extensive resources to work
for them.
The result is creative and practical solutions to their casework needs on a consistent basis. All
backed by over twenty-five years of experience and an investment in the techniques that
enhance patient care quality like Product C*, Brand B, Brand B Model 2, and Product E, as well
as all the premier implant systems. At Wright's Dental Laboratory, our products and services are
a valuable complement to well-established restorative treatment plans that promote aesthetics,
tooth reinforcement and conservative preparation techniques.

*Registered Trademark brand and product names have been disguised throughout this sample
plan.

Keys to Success

The keys to success for Wright's Dental Laboratory are:

1. Our dental laboratory must continually adjust its methods to meet the constantly
evolving challenges of dentistry and aspirations of the dental professional.

2. Our dental laboratory must be deeply and loyally committed to maintaining

CONSISTENT product excellence.

3. Our dental laboratory's only dynamic resource is people. It must develop opportunities
for each person to use his/her abilities to the utmost of their potential.

Objectives

The objectives of Wright's Dental Laboratory are as follows:

 Increase sales significantly each year.

 Increase the number of dentists using lab services aggressively each year.

 Expand service area to include the entire LochJaw tri-county area.

Company Summary
Wright's Dental Laboratory offers state-of-the-art dental restorations services to dental
professionals.

Charles Wright attended State University and is a certified dental technician. He entered the
dental laboratory industry in 1994 and by 2000 he had established his own small dental
laboratory. Charles now joins his expertise with that of his brother, David, to create Wright's
Dental Laboratory. The synergy of their respective talents will allow the precision restorative
capabilities of Wright's Dental Laboratory to consistently provide leading-edge technologies
and a high index of progressive services to the profession in the greater LochJaw area.

As an advocate of continuing dental education, Mr. Wright's commitment to continuing

education is illustrated by his involvement with metal-free restorations. Charles has
successfully completed training in such state of the art techniques as Product E and Product E
model 2 and Brand B model 2. He has also completed training for all the premier implant
systems including Brand J, Brand K, Product L, Product M, Brand N, and Brand O.

Among his accomplishments, Charles has held the posts of vice president, secretary and
treasurer of the Oregon State Dental Laboratory Association. Additionally, he is a member of
the National Association of Dental Laboratories (NADL), the State Dental Laboratory
Association and the American Academy of Cosmetic Dentistry (AACD).

David Wright attended State University and is a certified dental technician. He has spent
over ten years working with some of the region's most respected practitioners. David is
committed to continuing education and has successfully completed Corporation X's Advanced
Crown & Bridge Dental Studies. He has also successfully completed training in all the premier
implant systems including Brand J, Brand K, Product L, Product M, Brand N and Brand O.

David entered the dental laboratory industry in 1991. He began his training under the tutelage
of his father with various phases of fixed and removable techniques. Over the years, David
completed his training to become fully proficient in the design and fabrication of precision
attachment restorations, implants and full mouth rehabilitation cases.

Start-up Summary

The start-up cost of Wright's Dental Laboratory will consist primarily of equipment. Charles
and David will each invest personal funds and also secure a long-term loan.

START-UP REQUIREMENTS

Start-up Expenses
Legal $1,000

Stationery etc. $300

Brochures $1,000

Insurance $2,000

Rent $2,000

Lab Setup $30,000

Office Setup $20,000

Expensed Equipment $20,000

TOTAL START-UP EXPENSES $76,300

Start-up Assets

Cash Required $71,700

Start-up Inventory $10,000

Other Current Assets $12,000

Long-term Assets $80,000

 TOTAL ASSETS $173,700

Total Requirements $250,000

Company Ownership

Wright's Dental Laboratory, located in a custom designed, 8,000 square foot facility using the
latest, state-of-the-art restoration production systems and computerized case tracking, is owned
by Charles and David Wright. The company will operate as a general partnership with both
Charles and David performing management functions.

Products
Wright's Dental Laboratory offers the following products:

CROWN AND BRIDGE

Ceramics Brand A Brand B

Porcelain to metal Brand A inlay/onlay Brand B inlay

Porcelain veneers Brand A bond to metal Brand B model 2

Product C

Product D

Product E

Product F

Product F model 2

REMOVABLES

Dentures & Partials Splints/Stents Orthodontics

Full dentures Brand G

Partial dentures Hard splint (night guard)

Night guards Implant stent

Relines Sports guard

Laser welded repairs Surgical template

Soft liners Bleaching fluoride trays

Brand H

Market Analysis Summary

The LochJaw tri-county area has over 300 dentists. Next to salaries and benefits for associates,
assistants and hygienists, dental laboratory fees are a dentist's greatest expense.

Currently, there are seven dental labs in LochJaw. Of the seven, only four are full service. Most
importantly, a new lab has not opened in the LochJaw area in the past six years. Over the
past six years, the area's population has grown tremendously. The current labs have not invested
in the newest technology. Wright's Dental Laboratory will set a new standard for products and
services.

No where is this more important than in the dental care for children and seniors. The new
materials and techniques creates more options for dentists to serve their young and senior
patients. Wright's Dental Laboratory is investing heavily in these new techniques and materials.

Market Segmentation

Wright's Dental Laboratory will focus on dental professionals who work in the following three
areas:

 Dental services for seniors;

 Dental services for children;

 General dental services.

 MARKET ANALYSIS

YEAR 1 YEAR YEAR YEAR YEAR

2 3 4 5

Potential Growth CAGR

Customers

Dental Services 10% 60 66 73 80 88 10.05%

for Children

Dental Services 15% 40 46 53 61 70 15.02%

for Seniors

General Dental 13% 200 226 255 288 325 12.91%

Services

Total 12.64% 300 338 381 429 483 12.64%

Strategy and Implementation Summary

Wright's Dental Laboratory will aggressively pursue dental professionals in the LochJaw area
by offering discounted services to encourage them to try the new lab. Charles Wright will
manage the marketing campaign to promote the business. He has extensive contacts in the
dental community that will be critical to the building of the business.

Sales Strategy

The sales strategy will focus on offering dental professionals the new techniques and equipment
that will assist them in serving their speciality populations (i.e., children and seniors).

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Sales Forecast

For the first month there will be no sales, as the company will be establishing its operations. We
anticipate that sales will grow quickly during the second and third month of operation.

The following is the sales forecast for three years.

SALES FORECAST

YEAR 1 YEAR 2 YEAR 3

Sales

Dental Products $615,000 $750,000 $880,000

Other $0 $0 $0

TOTAL SALES $615,000 $750,000 $880,000

Direct Cost of Sales Year 1 Year 2 Year 3

Dental Products $221,000 $269,250 $315,920

Other $0 $0 $0
 Subtotal Direct Cost of Sales $221,000 $269,250 $315,920

Management Summary
The management team for Wright's Dental Laboratory will be Charles and David Wright.
Charles will be responsible for marketing, sales, customer relations. David will be responsible
for managing the dental lab operation.

Personnel Plan

The personnel plan for Wright's Dental Laboratory is as follows:

 Marketing/sales manager

 Lab manager

 Lab techs (4)

 Customer service (1)

Part way through the second year of operation it is estimated that the Lab will have to hire an
additional customer service operator.

PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Marketing/Sales Mgr $48,000 $50,000 $52,000

Lab Mgr $48,000 $50,000 $52,000

4 Lab Techs $144,000 $152,000 $160,000

Customer Service $24,000 $38,000 $60,000

 TOTAL PEOPLE 7 7 7

Total Payroll $264,000 $290,000 $324,000

Financial Plan
The following is the financial plan for Wright's Dental Laboratory.

Start-up Funding

Each of the two Wright's, David and Charles, will invest in the venture. An additional long-
term loan will be secured from the SBA, or local lenders, with an interest rate not more that
10%.

START-UP FUNDING

Start-up Expenses to Fund $76,300

Start-up Assets to Fund $173,700

TOTAL FUNDING REQUIRED $250,000

Assets

Non-cash Assets from Start-up $102,000

Cash Requirements from Start-up $71,700

Additional Cash Raised $0

Cash Balance on Starting Date $71,700

TOTAL ASSETS $173,700

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $100,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $100,000

Capital

Planned Investment

Charles $75,000

David $75,000
 Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $150,000

Loss at Start-up (Start-up Expenses) ($76,300)

TOTAL CAPITAL $73,700

TOTAL CAPITAL AND LIABILITIES $173,700

Total Funding $250,000

Break-even Analysis

The following table and chart display the monthly break-even point.

BREAK-EVEN ANALYSIS
 Monthly Revenue Break-even $49,013

Assumptions:

Average Percent Variable Cost 36%

Estimated Monthly Fixed Cost $31,400

Projected Profit and Loss

The following table and charts will highlight projected profit and loss for the next three years.

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plan.

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PRO FORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales $615,000 $750,000 $880,000

Direct Cost of Sales $221,000 $269,250 $315,920

Other Production Expenses $0 $0 $0

TOTAL COST OF SALES $221,000 $269,250 $315,920

Gross Margin $394,000 $480,750 $564,080

Gross Margin % 64.07% 64.10% 64.10%

Expenses

Payroll $264,000 $290,000 $324,000

Sales and Marketing and Other $24,000 $30,000 $35,000

Expenses

Depreciation $12,000 $12,000 $12,000

Leased Equipment $0 $0 $0

Utilities $6,000 $6,000 $6,000

Insurance $7,200 $7,200 $7,200

Rent $24,000 $24,000 $24,000

Payroll Taxes $39,600 $43,500 $48,600

Other $0 $0 $0

Total Operating Expenses $376,800 $412,700 $456,800

Profit Before Interest and Taxes $17,200 $68,050 $107,280

EBITDA $29,200 $80,050 $119,280

Interest Expense $12,463 $12,520 $11,777

 Taxes Incurred $1,421 $16,659 $28,651

Net Profit $3,316 $38,871 $66,852

Net Profit/Sales 0.54% 5.18% 7.60%

Projected Cash Flow

The following table and chart highlight the projected cash flow for three years. It will be
necessary for each Wright brother to loan the company additional funds mid-year.

PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $153,750 $187,500 $220,000

Cash from Receivables $343,250 $536,598 $635,057

SUBTOTAL CASH FROM OPERATIONS $497,000 $724,098 $855,057

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 $40,000 $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 $537,000 $724,098 $855,057

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $264,000 $290,000 $324,000

Bill Payments $314,168 $418,284 $475,335

SUBTOTAL SPENT ON OPERATIONS $578,168 $708,284 $799,335

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current $0 $0 $0

Borrowing

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal $9,864 $9,864 $5,000

Repayment

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $588,032 $718,148 $804,335

Net Cash Flow ($51,032) $5,950 $50,722

Cash Balance $20,668 $26,618 $77,340

Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets

Current Assets

Cash $20,668 $26,618 $77,340

Accounts Receivable $118,000 $143,902 $168,846

Inventory $30,800 $31,307 $35,377

Other Current Assets $12,000 $12,000 $12,000

TOTAL CURRENT ASSETS $181,468 $213,827 $293,562

Long-term Assets

Long-term Assets $80,000 $80,000 $80,000

Accumulated Depreciation $12,000 $24,000 $36,000

TOTAL LONG-TERM ASSETS $68,000 $56,000 $44,000

TOTAL ASSETS $249,468 $269,827 $337,562

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $42,317 $33,669 $39,552

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $42,317 $33,669 $39,552

Long-term Liabilities $130,136 $120,272 $115,272

TOTAL LIABILITIES $172,453 $153,941 $154,824

Paid-in Capital $150,000 $150,000 $150,000

Retained Earnings ($76,300) ($72,984) ($34,114)

Earnings $3,316 $38,871 $66,852

 TOTAL CAPITAL $77,016 $115,886 $182,738

TOTAL LIABILITIES AND CAPITAL $249,468 $269,827 $337,562

Net Worth $77,016 $115,886 $182,738

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 8072, Dental Laboratories, are shown for
comparison.

RATIO ANALYSIS

YEAR 1 YEAR 2 YEAR 3 INDUSTRY

PROFILE

Sales Growth n.a. 21.95% 17.33% 6.60%

Percent of Total Assets

Accounts Receivable 47.30% 53.33% 50.02% 15.10%

Inventory 12.35% 11.60% 10.48% 4.50%

Other Current Assets 4.81% 4.45% 3.55% 56.00%

Total Current Assets 72.74% 79.25% 86.97% 75.60%

Long-term Assets 27.26% 20.75% 13.03% 24.40%

TOTAL ASSETS 100.00 100.00% 100.00% 100.00%

%

Current Liabilities 16.96% 12.48% 11.72% 34.20%

Long-term Liabilities 52.17% 44.57% 34.15% 18.20%

Total Liabilities 69.13% 57.05% 45.87% 52.40%

NET WORTH 30.87% 42.95% 54.13% 47.60%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 64.07% 64.10% 64.10% 0.00%

Selling, General & 63.37% 58.73% 56.34% 70.40%

Administrative Expenses

Advertising Expenses 3.90% 4.00% 3.98% 0.20%

Profit Before Interest and 2.80% 9.07% 12.19% 10.10%

Taxes

Main Ratios

Current 4.29 6.35 7.42 1.81

Quick 3.56 5.42 6.53 1.25

Total Debt to Total Assets 69.13% 57.05% 45.87% 52.40%

Pre-tax Return on Net Worth 6.15% 47.92% 52.26% 18.10%

Pre-tax Return on Assets 1.90% 20.58% 28.29% 38.00%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 0.54% 5.18% 7.60% n.a

Return on Equity 4.31% 33.54% 36.58% n.a

Activity Ratios

Accounts Receivable Turnover 3.91 3.91 3.91 n.a

Collection Days 56 85 86 n.a

Inventory Turnover 10.48 8.67 9.48 n.a

Accounts Payable Turnover 8.42 12.17 12.17 n.a

Payment Days 28 34 28 n.a

 Total Asset Turnover 2.47 2.78 2.61 n.a

Debt Ratios

Debt to Net Worth 2.24 1.33 0.85 n.a

Current Liab. to Liab. 0.25 0.22 0.26 n.a

Liquidity Ratios

Net Working Capital $139,152 $180,158 $254,010 n.a

Interest Coverage 1.38 5.44 9.11 n.a

Additional Ratios

Assets to Sales 0.41 0.36 0.38 n.a

Current Debt/Total Assets 17% 12% 12% n.a

Acid Test 0.77 1.15 2.26 n.a

Sales/Net Worth 7.99 6.47 4.82 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix
SALES FORECAST
 MONT MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MON
H1 2 3 4 5 6 7 8 9 10 11

Sales

Dental 0% $0 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000 $
Product
s

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL $0 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000 $
SALES

Direct Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month M
Cost of 10 11
Sales

Dental $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $
Product
s

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $
Direct
Cost of
Sales

PERSONNEL PLAN

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

Marketing/Sales Mgr 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

Lab Mgr 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

4 Lab Techs 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

Customer Service 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
TOTAL PEOPLE 7 7 7 7 7 7 7 7 7 7 7

Total Payroll $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000

GENERAL ASSUMPTIONS

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

Plan 1 2 3 4 5 6 7 8 9 10 11
Month

Current 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest
Rate

Long- 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
term
Interest
Rate

Tax Rate 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

PRO FORMA PROFIT AND LOSS

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

Sales $0 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000

Direct Cost $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000
of Sales

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Production
Expenses

TOTAL $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $
COST OF
SALES

Gross Margin $0 $18,000 $18,000 $25,000 $25,000 $32,000 $39,000 $43,000 $45,000 $45,000 $52,000
Gross Margin 0.00% 60.00% 60.00% 62.50% 62.50% 64.00% 65.00% 66.15% 64.29% 64.29% 65.00%
%

Expenses

Payroll $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000

Sales and $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Marketing
and Other
Expenses

Depreciation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Leased $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment

Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Payroll 15% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Taxes

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400
Operating
Expenses

Profit Before ($31,400) ($13,400) ($13,400) ($6,400) ($6,400) $600 $7,600 $11,600 $13,600 $13,600 $20,600
Interest and
Taxes

EBITDA ($30,400) ($12,400) ($12,400) ($5,400) ($5,400) $1,600 $8,600 $12,600 $14,600 $14,600 $21,600

Interest $833 $833 $833 $1,000 $1,156 $1,146 $1,136 $1,126 $1,115 $1,105 $1,095
Expense

Taxes ($9,670) ($4,270) ($4,270) ($2,220) ($2,267) ($164) $1,939 $3,142 $3,745 $3,748 $5,852
Incurred

Net Profit ($22,563) ($9,963) ($9,963) ($5,180) ($5,289) ($382) $4,525 $7,332 $8,739 $8,746 $13,654
Net 0.00% -33.21% -33.21% -12.95% -13.22% -0.76% 7.54% 11.28% 12.48% 12.49% 17.07%
Profit/Sales

PRO FORMA CASH FLOW

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

Cash Received

Cash from
Operations

Cash Sales $0 $7,500 $7,500 $10,000 $10,000 $12,500 $15,000 $16,250 $17,500 $17,500 $20,000

Cash from $0 $0 $750 $22,500 $22,750 $30,000 $30,250 $37,750 $45,125 $48,875 $52,500
Receivables

SUBTOTAL $0 $7,500 $8,250 $32,500 $32,750 $42,50 $45,250 $54,00 $62,625 $66,375 $72,500 $
CASH FROM 0 0
OPERATION
S

Additional
Cash Received

Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

VAT, HST/GST
Received

New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)

New Long- $0 $0 $0 $20,000 $20,000 $0 $0 $0 $0 $0 $0

term Liabilities

Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets

Sales of Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets

New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received

SUBTOTAL $0 $7,500 $8,250 $52,500 $52,750 $42,50 $45,250 $54,00 $62,625 $66,375 $72,500 $
CASH 0 0
RECEIVED

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month M
10 11

Expenditures
from
Operations

Cash $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Spending

Bill Payments ($437) $250 $20,057 $17,247 $25,374 $22,569 $30,852 $35,775 $35,961 $41,450 $38,533

SUBTOTAL $21,563 $22,250 $42,057 $39,247 $47,374 $44,56 $52,852 $57,77 $57,961 $63,450 $60,533 $
SPENT ON 9 5
OPERATION
S

Additional
Cash Spent

Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT, HST/GST
Paid Out

Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current
Borrowing

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment

Long-term $0 $0 $0 $0 $1,233 $1,233 $1,233 $1,233 $1,233 $1,233 $1,233

Liabilities
Principal
Repayment

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current
Assets
 Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

SUBTOTAL $21,563 $22,250 $42,057 $39,247 $48,607 $45,80 $54,085 $59,00 $59,194 $64,683 $61,766 $
CASH SPENT 2 8

Net Cash Flow ($21,563) ($14,750) ($33,807) $13,253 $4,143 ($3,302) ($8,835) ($5,008) $3,431 $1,692 $10,734

Cash Balance $50,137 $35,387 $1,580 $14,833 $18,976 $15,674 $6,839 $1,831 $5,262 $6,954 $17,687

PRO FORMA BALANCE SHEET

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

Assets Starting
Balances

Current
Assets

Cash $71,700 $50,137 $35,387 $1,580 $14,833 $18,976 $15,674 $6,839 $1,831 $5,262 $6,954 $17,687

Accounts $0 $0 $22,500 $44,250 $51,750 $59,000 $66,500 $81,250 $92,250 $99,625 $103,250 $110,750 $
Receivable

Inventory $10,000 $10,000 $13,200 $13,200 $16,500 $16,500 $19,800 $23,100 $24,200 $27,500 $27,500 $30,800

Other Current $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Assets

TOTAL $93,700 $72,137 $83,087 $71,030 $95,083 $106,47 $113,97 $123,189 $130,28 $144,38 $149,70 $171,237 $1
CURRENT 6 4 1 7 4
ASSETS

Long-term
Assets

Long-term $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
Assets

Accumulated $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000
Depreciation
TOTAL $80,000 $79,000 $78,000 $77,000 $76,000 $75,000 $74,000 $73,000 $72,000 $71,000 $70,000 $69,000 $
LONG-TERM
ASSETS

TOTAL $173,70 $151,13 $161,08 $148,030 $171,08 $181,47 $187,97 $196,189 $202,28 $215,38 $219,70 $240,237 $2
ASSETS 0 7 7 3 6 4 1 7 4

Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 M
Capital

Current
Liabilities

Accounts $0 $0 $19,913 $16,820 $25,053 $21,969 $30,082 $35,005 $34,998 $40,597 $37,401 $45,514
Payable

Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

SUBTOTAL $0 $0 $19,913 $16,820 $25,053 $21,969 $30,082 $35,005 $34,998 $40,597 $37,401 $45,514 $
CURRENT
LIABILITIE
S

Long-term $100,000 $100,000 $100,000 $100,000 $120,000 $138,767 $137,534 $136,301 $135,068 $133,835 $132,602 $131,369 $
Liabilities

TOTAL $100,00 $100,00 $119,91 $116,820 $145,05 $160,73 $167,61 $171,306 $170,06 $174,43 $170,00 $176,883 $1
LIABILITIE 0 0 3 3 6 6 6 2 3
S

Paid-in $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $
Capital

Retained ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($
Earnings

Earnings $0 ($22,563) ($32,527) ($42,490) ($47,670) ($52,959) ($53,342) ($48,817) ($41,485) ($32,745) ($23,999) ($10,345)

TOTAL $73,700 $51,137 $41,173 $31,210 $26,030 $20,741 $20,358 $24,883 $32,215 $40,955 $49,701 $63,355 $
CAPITAL
TOTAL $173,70 $151,13 $161,08 $148,030 $171,08 $181,47 $187,97 $196,189 $202,28 $215,38 $219,70 $240,237 $2
LIABILITIE 0 7 7 3 6 4 1 7 4
S AND
CAPITAL

Net Worth $73,700 $51,137 $41,173 $31,210 $26,030 $20,741 $20,358 $24,883 $32,215 $40,955 $49,701 $63,355