2012

COMPANY NAME
Business plan

OWNER’S 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.

 COMPANY NAME 2012

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

Chart: Highlights...........................................................................................................................2
1.1 Objectives....................................................................................................................................2
1.2 Mission...........................................................................................................................................2
1.3 Keys to Success.........................................................................................................................3
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................3
2.2 Company History.......................................................................................................................3
Table: Past Performance............................................................................................................4
Chart: Past Performance............................................................................................................6
3.0 Services.............................................................................................................................................6
4.0 Market Analysis Summary.........................................................................................................6
Table: Market Analysis................................................................................................................7
Chart: Market Analysis (Pie).....................................................................................................7
4.2 Target Market Segment Strategy.......................................................................................8
4.3 Service Business Analysis......................................................................................................8
4.3.1 Competition and Buying Patterns...............................................................................8
5.0 Strategy and Implementation Summary.............................................................................8
5.1 SWOT Analysis...........................................................................................................................9
5.1.1 Strengths..............................................................................................................................9
5.1.2 Weaknesses.........................................................................................................................9
5.1.3 Opportunities......................................................................................................................9
5.1.4 Threats..................................................................................................................................9
5.2 Competitive Edge....................................................................................................................10
5.3 Marketing Strategy.................................................................................................................10
5.4 Sales Strategy..........................................................................................................................10
5.4.1 Sales Forecast..................................................................................................................10
Table: Sales Forecast....................................................................................................................10
Chart: Sales Monthly.............................................................................................................11
Chart: Sales by Year..............................................................................................................11
5.5 Milestones..................................................................................................................................12
Table: Milestones........................................................................................................................12
6.0 Management Summary.............................................................................................................12
6.1 Personnel Plan..........................................................................................................................12
Table: Personnel..........................................................................................................................13
7.0 Financial Plan................................................................................................................................13
7.1 Important Assumptions........................................................................................................13
7.2 Break-even Analysis...............................................................................................................13
Table: Break-even Analysis....................................................................................................14
Chart: Break-even Analysis....................................................................................................14
7.3 Projected Profit and Loss.....................................................................................................14
Table: Profit and Loss................................................................................................................15
Chart: Profit Monthly.................................................................................................................16
Chart: Profit Yearly.....................................................................................................................16
Chart: Gross Margin Monthly.................................................................................................17
 COMPANY NAME 2012

Chart: Gross Margin Yearly.....................................................................................................17

7.4 Projected Cash Flow...............................................................................................................18
Table: Cash Flow.........................................................................................................................18
Chart: Cash...................................................................................................................................19
7.5 Projected Balance Sheet......................................................................................................19
Table: Balance Sheet.................................................................................................................19
7.6 Business Ratios........................................................................................................................20
Table: Ratios.................................................................................................................................20
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................5
 COMPANY NAME 2012

1.0 Executive Summary

COMPANY NAME
Owner:  INSERT NAME
INSERT ADDRESS
Phone: 
Email: 

Introduction: At COMPANY NAME, our goal is to assist you in reaching your fitness and
nutritional goals.  Our job is to provide safe and effective exercises that will enable you to lose
those unwanted pounds, gain muscle tone and simply improve your overall appearance and
health. 
Location: COMPANY NAME is conveniently located downtown in [CITY], [STATE].
The Company: The focus of the COMPANY NAME is to keep the whole family involved in the club
by exposing everyone to the variety of activities and services the club offers. In addition, there is
a childcare center that will keep members' children happy and entertained while members take
part in any of the center's activities and services.
Our Services: COMPANY NAME offers wellness and fitness programs as well as the following.
 Brand new Precor Treadmills and Elliptical
 Full line of York rubberized dumbbells up to 50 lbs.
 3-way free weight bench with rack for flat, incline and decline press
 Highly educated and experienced Wellness Coaches who can assist you in reaching your
fitness and nutritional goals
 Over 30 fun, energetic and creative group fitness classes a week for you to choose from
 Fit Kids program
 Nutrition and Cooking classes
 Fitness center with cardiovascular and weight training equipment.
The Market: Even in the midst of the economic downturn, the industry has maintained steady
growth, with membership rates growing consistently and profits remaining solid. Demand for
gyms and health and fitness clubs will continue to rise over the next five years, as the general
public becomes more health conscious and the aging population places a greater value on staying
fit. Additionally, the amount of leisure time and growth in household incomes will positively affect
businesses, leading operators to expand into larger facilities.
Financial Considerations: COMPANY NAME envisions for the business is to not only to offer a
fitness and gymnastics center, but to incorporate other realms of wellness in to the business
model. The Company will purchase a building to have room to offer a complete medically
integrated facility that offers a physical therapy and a massage therapy center, a structured
obesity program, and much more. A complete wellness group with medically integrated programs
would be completely overseen by doctors. The grant of $350,000 would help purchase a building
and allow the capability to set this plan in motion.

COMPANY NAME | PHONE # 1

 COMPANY NAME 2012

The major focus for grant funding is as follows:

 Hire new employees
 Implement Wellness and Nutritional Program
 Community involvement for obesity and diabetes in youth
 Increase building capacity
 Add new products to our existing business

Chart: Highlights

Highlights

$320,000

$280,000

$240,000
Sales
$200,000
Gross Margin
$160,000
Net Profit
$120,000

$80,000

$40,000

$0
2011 2012 2013

1.1 Objectives
The company's objective is to build a quality, full-service facility that will command the approval
of the local community which it serves.
Our goals include:
1. A 10% market share in are local market.
2. An increase our gross margins.
3. Maintain and grow our position as one of the only clubs in the [CITY], [STATE] area that
caters to families.
1.2 Mission
COMPANY NAME our goal is to assist you in reaching your fitness and nutritional goals.  Our job is
to provide safe and effective exercises that will enable you to lose those unwanted pounds, gain
muscle tone and simply improve your overall appearance and health.  Your job is to commit to
making exercise and good nutrition a priority in order to achieve success.  By working together
on changing the way you think and feel about fitness and nutrition, we can help you not only
transform your body, but also transform your life! 

COMPANY NAME | PHONE # 2

 COMPANY NAME 2012

1.3 Keys to Success

Keys to success for the company will include:
1. Maintaining a reputable and untarnished reputation in the community. 
2. Quality service. 
3. Competitive pricing. 
4. Flexible hours.

2.0 Company Summary

The focus of the COMPANY NAME is to keep the whole family involved in the club by exposing
everyone to the variety of activities and services the club offers. In addition, there is a childcare
center that will keep members' children happy and entertained while members take part in any of
the center's activities and services. COMPANY NAME is conveniently located downtown in [CITY],
[STATE]. COMPANY NAME was created in 2008 and has continued strong since inception.  
Upon receipt of the grant funds in the amount of $350,000 COMPANY NAME would proceed with
plans to buy a building to have room to offer a complete medically integrated facility that offers a
physical therapy and a massage therapy center, a structured obesity program.  
Our Services and guarantee:
 100% Satisfaction Guaranteed
 The Customer's Satisfaction is Our #1 Concern
 Committed to Quality and Service

2.1 Company Ownership

COMPANY NAME is a sole proprietor, which was created in 2008 and fully operational in 2009.
INSERT NAME is 100% owner and manager and will manage the daily operation.

2.2 Company History

COMPANY NAME was created under the ownership of INSERT NAME in October of 2008 INSERT
NAME remains 100% sole owner. INSERT NAME has spent years dedicating her life to wellbeing
and fitness. In 2008 she took her ideas of creating a fitness center that can help create a lifestyle
for others that are looking to have healthier lives. The goal is to exceed our customers'
expectations with quality, value and professional service.  
The 2010 Profit and Loss Statement is estimated based on the actual activity through October 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 | PHONE # 3

 COMPANY NAME 2012

Table: Past Performance

Past Performance
2009 2010
Sales $120,882 $216,000
Gross Margin $120,882 $216,000
Gross Margin % 100.00% 100.00%
Operating Expenses $148,466 $165,000

2009 2010
Current Assets
Cash $50,000 $20,000
Other Current Assets $25,000 $10,000
Total Current Assets $75,000 $30,000

Long-term Assets

Long-term Assets $35,000 $28,000

Accumulated Depreciation $17,000 $17,000

Total Long-term Assets $18,000 $11,000

Total Assets $93,000 $41,000

COMPANY NAME | PHONE # 4

 COMPANY NAME 2012

Current Liabilities

Accounts Payable $0 $0

Current Borrowing $0 $0

Other Current Liabilities (interest free) $0 $0

Total Current Liabilities $0 $0

Long-term Liabilities $120,000 $117,000

Total Liabilities $120,000 $117,000

Paid-in Capital $0 $0

Retained Earnings ($27,000) ($76,000)

Earnings $0 $0

Total Capital ($27,000) ($76,000)

Total Capital and Liabilities $93,000 $41,000

Other Inputs

Payment Days 0 0

COMPANY NAME | PHONE # 5

 COMPANY NAME 2012

Chart: Past Performance

Past Performance

$220,000

$200,000

$180,000

$160,000

$140,000
Sales

$120,000 Gross
$100,000 Net
$80,000

$60,000

$40,000

$20,000

$0
2008 2009 2010

3.0 Services
The Fitness Center has the following activities and services: 
 Brand new Precor Treadmills and Elliptical
 Full line of York rubberized dumbbells up to 50 lbs.
 3-way free weight bench with rack for flat, incline and decline press
 Highly educated and experienced Wellness Coaches who can assist you in reaching your
fitness and nutritional goals
 Over 30 fun, energetic and creative group fitness classes a week for you to choose from
 Fit Kids program
 Nutrition and Cooking classes
 Fitness center with cardiovascular and weight training equipment.
4.0 Market Analysis Summary
Even in the midst of the economic downturn, the industry has maintained steady growth, with
membership rates growing consistently and profits remaining solid. Demand for gyms and health
and fitness clubs will continue to rise over the next five years, as the general public becomes
more health conscious and the aging population places a greater value on staying fit.
Additionally, the amount of leisure time and growth in household incomes will positively affect
businesses, leading operators to expand into larger facilities.

COMPANY NAME | PHONE # 6

 COMPANY NAME 2012

4.1 Market Segmentation

The primary targeted market consists of three main groups. These categories are: 18 to 25 year
old, 26 to 32 and 33 and older. To better understand the size and break down of the local
population refer to total population break down chart in topic 6.0.  Refer to the following chart as
a percentage view.

Table: Market Analysis

Market
Analysis
2011 2012 2013 2014 2015
Potential Growth CAGR
Customers
Ages 18-25 6% 387,459 410,707 435,349 461,470 489,158 6.00%
Ages 26-32 5% 625,123 656,379 689,198 723,658 759,841 5.00%
Above age 32 4% 825,650 858,676 893,023 928,744 965,894 4.00%
Total 4.77% 1,838,232 1,925,762 2,017,570 2,113,872 2,214,893 4.77%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Ages 18-25

Ages 26-32

Above age 32

COMPANY NAME | PHONE # 7

 COMPANY NAME 2012

4.2 Target Market Segment Strategy

As indicated by the previous table and Illustration, we must focus on a few thousand well-chosen
potential customers in the local community.

4.3 Service Business Analysis

The profile for fitness centers consists of the following geographic, demographic, and behavior
factors:   
Geographic’s
 The immediate geographic target is the city of [CITY].
 A 35 mile radius is in need of the services.
 The total targeted population is 15,800 employees.
Demographic
 51%:49% male: female.
 The individual income range is $38,000-$75,000.
 67% of the customers are single, 33% are married.
 For the manufacturing customers, 43% have some undergraduate course work.
 For the corporate customers, 83% have some undergraduate coursework, 16% have
undertaken graduate coursework.
Behavior Factors
 Recognize the need to have physical activity in their lives.
 Have incorporated some sort of exercise program in their daily/ weekly routine for the last
several years.
 Are willing to utilize fringe benefits that are offered by their employer as part of their
compensation package.

4.3.1 Competition and Buying Patterns

Exercising and "working out" has become a more mainstream activity in American's lives over the
last decade.  Five to ten years ago there were widespread reports about an impeding health
crisis, obesity.  Americans, relative to their Western European counterparts have higher incidents
of obesity.  To a large degree, this is correlated to American's unhealthy diet of fast food, and
generally poor food choices, especially fried foods.  The poor diet is not the only factor however. 
Americans were fairly inactive, with only 19% of people age 20-40 exercising three times a
week.  Luckily, that has changed over the last 10 years.  The percentage of active people has
increased to 43% as of 2008. 

5.0 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. 

COMPANY NAME | PHONE # 8

 COMPANY NAME 2012

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing Interior Views.

5.1.1 Strengths
 Strong relationships with suppliers that offer credit arrangements, flexibility, and response to
special product requirements.
 Excellent and stable staff, offering personalized customer service.
 Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
 Strong merchandising and product presentation.
 Good referral relationships.
 High customer loyalty.

5.1.2 Weaknesses
 Access to additional operating capital.
 Cash flow continues to be unpredictable.
 Owners are still climbing the "experience curve."
 Challenges of the seasonality of the business.

5.1.3 Opportunities
 Growing market with a significant percentage of our target market still not knowing we exist.
 Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach.
 Changes in design trends can initiate home updating, and therefore, generate sales.
 Increasing sales opportunities beyond our "100-mile" target area including several smaller
communities that have produced a faithful following of customers.
 Internet potential for selling products to other markets.

5.1.4 Threats
1. The downturn in the economy has impacted gym sales.
2. Expansion of national gyms into the local market
3. Competition from a national gym; or a store with greater financing or product resources could
enter the market.
4. Continued price pressure due to competition or the weakening market reducing contribution
margins.

COMPANY NAME | PHONE # 9

 COMPANY NAME 2012

5.2 Competitive Edge

The competitive edge of the COMPANY NAME is our focus on the family. We offer our members
childcare services that are second to none.  The focus on all aspects of wellness, not just hard
core training.  Of course they emphasize diet and nutrition as the safest and healthiest form of
weight loss. Education on stress reduction, effects of sleep deprivation, and smoking cessation.

5.3 Marketing Strategy

An overview of the marketing plan includes:
1. Analyzing the obesity population within a 50 mile radius
2. Door Hangars of Mailers with our business name and description
3. Ads launching new programs and services

5.4 Sales Strategy

Sales forecast is based on the advertisement mostly by word of mouth; occasionally they run
radio ads during special times of the year.  Billboard ads, radio and television advertising are to
follow when we receive the additional grant funds.
     
5.4.1 Sales Forecast
The following is the sales forecast for the next three years. These figures are based on the
additional grant funds, which will allow for more employees as well as additional marketing to
bring in new clients.

Table: Sales Forecast

Sales Forecast
2011 2012 2013
Sales
Membership $97,655 $115,000 $125,000
Events $55,972 $63,000 $70,000
Other $104,957 $118,000 $128,000
Total Sales $258,584 $296,000 $323,000

Direct Cost of Sales 2011 2012 2013

Membership $0 $0 $0
Events $0 $0 $0
Other $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

COMPANY NAME | PHONE # 10

 COMPANY NAME 2012

Chart: Sales Monthly

Sales Monthly

$24,000

$21,000

$18,000
Memebership
$15,000
Events
$12,000
Other
$9,000

$6,000

$3,000

$0
Jan Mar May Jul Sep Nov
Feb Apr Jun Aug Oct Dec

Chart: Sales by Year

Sales by Year

$320,000

$280,000

$240,000 Memebership
$200,000 Events
$160,000 Other

$120,000

$80,000

$40,000

$0
2011 2012 2013

COMPANY NAME | PHONE # 11

 COMPANY NAME 2012

5.5 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:

 Obtain Grant Funding to expand, grow and improve the business.

 Secure additional space to facilitate our new products.
 Construction/Leasehold Improvements in the Company’s location
 Purchase computers, office equipment, office furniture and fixtures
 Hire employees, the Company will look to hire minorities, veterans, disabled persons and
the unemployed
 Update our website and social media
 Launch an advertising campaign
 Working Capital to support operation until cash flow profitability   

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Building Lease Deposits 1/1/2011 1/7/2011 $6,000 Owner Operations
Leasehold Improvements 1/1/2011 2/5/2011 $20,000 Owner Operations
Purchase Equipment 1/1/2011 2/5/2011 $10,000 Owner Department
Hire Employees 1/1/2011 12/31/2011 $75,000 Owner Department
Launch Advertising Campaign 1/1/2011 12/31/2011 $20,000 Owner Department
Website & Website Marketing 1/1/2011 3/31/2011 $10,000 Owner Department
Working Capital 1/1/2011 12/31/2011 $209,000 Owner Department
Totals $350,000

6.0 Management Summary

INSERT NAME is the acting manager of the daily business operations.  She has no assistant
manager; however she does have someone she leaves in total control when unavailable. INSERT
NAME has a long history of management in the health and wellness industry.  
 
6.1 Personnel Plan
Currently 15 people who work at COMPANY NAME as 1099 employees.  These 1099 employees
work part-time as instructors for certain classes or trainers. The goal is to have full-time
employees who can help make the operation of the business run smoothly.  With the additional
grant funds Body of Stone would like to offer medical and dental benefits to those whom are full-
time employees.  COMPANY NAME would like to create an Obesity Program Coordinator position,
CFO Position, Wellness Program Director, Kids Fit Program Director, Group Fitness Coordinator. 
 

COMPANY NAME | PHONE # 12

 COMPANY NAME 2012

Table: Personnel

Personnel Plan
2011 2012 2013
Salaries $60,000 $75,000 $75,000
Account/Legal $3,600 $4,000 $4,000
Total People 2 4 4

Total Payroll $63,600 $79,000 $79,000

7.0 Financial Plan

The current financial plan for COMPANY NAME is to obtain grant funding in the amount of
$350,000. The grant will be used to add a fitness and gymnastics center, the purchase of
a building to have room to offer a complete medically integrated facility that offers a physical
therapy and a massage therapy center, a structured obesity program, to upgrade the website,
and the hiring of employees as well as 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

7.1 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 tax rate. 

7.2 Break-even Analysis

For the Company's break-even analysis for 2011, the monthly revenue break-even is projected to
be $18,845. The Break-even Analysis is based on the average of the first-year figures for total
sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit
cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real
risk.

COMPANY NAME | PHONE # 13

 COMPANY NAME 2012

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even $18,845

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $18,845

Chart: Break-even Analysis

Break-even Analysis

$12,000

$8,000

$4,000

$0

($4,000)

($8,000)

($12,000)

($16,000)

$0 $6,000 $12,000 $18,000 $24,000 $30,000

$3,000 $9,000 $15,000 $21,000 $27,000 $33,000

7.3 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years of operations.
As seen in the profit and loss statement 2012 shows a significant drop in net profits, however this
is caused by an increase in rent, 1099 employees, and salaries as we plan to hire more full-time
employees.
The 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 $258,584,
$296,000 and $323,000, respectively. Gross margins for all three years are 100%. The Company
will show a Net Loss for 2012 ($4,972) 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 positive EBITDA of $46,850 in 2011, $21,128 in 2012
and $51,128 in 2013. The Operating expenses for this period were $226,134, $289,272
and $286,272, 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.

COMPANY NAME | PHONE # 14

 COMPANY NAME 2012

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $258,584 $296,000 $323,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $258,584 $296,000 $323,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $63,600 $79,000 $79,000
Marketing/Promotion $18,000 $15,000 $10,000
Depreciation $14,400 $14,400 $14,400
Rent $21,480 $50,000 $50,000
Utilities $8,160 $8,500 $8,500
Insurance $522 $522 $522
Payroll Taxes $9,540 $11,850 $11,850
1099 Employees $57,192 $75,000 $75,000
Entertainment $8,400 $10,000 $10,000
Other $24,840 $25,000 $27,000

Total Operating Expenses $226,134 $289,272 $286,272

Profit Before Interest and Taxes $32,450 $6,728 $36,728

EBITDA $46,850 $21,128 $51,128
Interest Expense $11,700 $11,700 $11,700
Taxes Incurred $3,112 $0 $3,754

Net Profit $17,638 ($4,972) $21,274

Net Profit/Sales 6.82% -1.68% 6.59%

COMPANY NAME | PHONE # 15

 COMPANY NAME 2012

Chart: Profit Monthly

Profit Monthly

$5,000

$4,000

$3,000

$2,000

$1,000

$0

($1,000)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Profit Yearly

Profit Yearly

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0

($3,000)

2011 2012 2013

COMPANY NAME | PHONE # 16

 COMPANY NAME 2012

Chart: Gross Margin Monthly

Gross Margin Monthly

$24,000

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Gross Margin Yearly

Gross Margin Yearly

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
2011 2012 2013

COMPANY NAME | PHONE # 17

 COMPANY NAME 2012

7.4 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years. COMPANY NAME
has applied for a grant of $350,000. The Company forecast that it'll receive $350,000 in the
month of January 2011.
The cash flow in 2011 shows a repayment of some liabilities as well as the purchases of
additional equipment. 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 $258,584 $296,000 $323,000
Subtotal Cash from Operations $258,584 $296,000 $323,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $350,000 $0 $0
Subtotal Cash Received $608,584 $296,000 $323,000

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $63,600 $79,000 $79,000
Bill Payments $149,287 $204,170 $208,264
Subtotal Spent on Operations $212,887 $283,170 $287,264

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $25,000 $0 $0
Purchase Long-term Assets $75,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $312,887 $283,170 $287,264

Net Cash Flow $295,697 $12,830 $35,736

Cash Balance $315,697 $328,526 $364,262

COMPANY NAME | PHONE # 18

 Feb Ma
COMPANY NAME 2012

Jan
Chart: Cash

Cash

$300,000

$270,000

$240,000

$210,000

$180,000
Net Cash Flow

$150,000 Cash Balance

$120,000

$90,000

$60,000

$30,000

$0

7.5 Projected Balance Sheet

The balance sheet shows healthy growth of net worth, and strong financial position. The monthly
estimates are included in the appendix. Body of Stone Fitness net worth is $291,637,
$286,666 and $307,939 for 2011, 2012 and 2013, respectively. The Company's Total Assets at
the end of 2011, 2012 and 2013 will be $422,297, $420,726 and $442,062, respectively.

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets

Current Assets
Cash $315,697 $328,526 $364,262
Other Current Assets $35,000 $35,000 $35,000
Total Current Assets $350,697 $363,526 $399,262

Long-term Assets
Long-term Assets $103,000 $103,000 $103,000
Accumulated Depreciation $31,400 $45,800 $60,200
Total Long-term Assets $71,600 $57,200 $42,800
Total Assets $422,297 $420,726 $442,062

COMPANY NAME | PHONE # 19

 COMPANY NAME 2012

Liabilities and Capital 2011 2012 2013

Current Liabilities
Accounts Payable $13,659 $17,061 $17,123
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $13,659 $17,061 $17,123

Long-term Liabilities $117,000 $117,000 $117,000

Total Liabilities $130,659 $134,061 $134,123

Paid-in Capital $350,000 $350,000 $350,000

Retained Earnings ($76,000) ($58,363) ($63,335)
Earnings $17,638 ($4,972) $21,274
Total Capital $291,638 $286,666 $307,939
Total Liabilities and Capital $422,297 $420,726 $442,062

Net Worth $291,637 $286,666 $307,939

7.6 Business Ratios

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

Table: Ratios

Ratio Analysis
2011 2012 2013 Industry
Profile
Sales Growth 19.71% 14.47% 9.12% 1.14%

Percent of Total Assets

Other Current Assets 8.29% 8.32% 7.92% 29.74%
Total Current Assets 83.05% 86.40% 90.32% 35.63%
Long-term Assets 16.95% 13.60% 9.68% 64.37%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 3.23% 4.06% 3.87% 15.31%

Long-term Liabilities 27.71% 27.81% 26.47% 45.72%
Total Liabilities 30.94% 31.86% 30.34% 61.03%
Net Worth 69.06% 68.14% 69.66% 38.97%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 81.53%
Selling, General & Administrative 93.18% 101.68% 93.41% 23.64%
Expenses
Advertising Expenses 6.96% 5.07% 3.10% 1.91%
Profit Before Interest and Taxes 12.55% 2.27% 11.37% 12.72%

COMPANY NAME | PHONE # 20

 COMPANY NAME 2012

Main Ratios
Current 25.67 21.31 23.32 1.60
Quick 25.67 21.31 23.32 1.45
Total Debt to Total Assets 30.94% 31.86% 30.34% 61.03%
Pre-tax Return on Net Worth 7.11% -1.73% 8.13% 42.03%
Pre-tax Return on Assets 4.91% -1.18% 5.66% 16.38%

Additional Ratios 2011 2012 2013

Net Profit Margin 6.82% -1.68% 6.59% n.a
Return on Equity 6.05% -1.73% 6.91% n.a

Activity Ratios
Accounts Payable Turnover 11.93 12.17 12.17 n.a
Payment Days 27 27 30 n.a
Total Asset Turnover 0.61 0.70 0.73 n.a

Debt Ratios
Debt to Net Worth 0.45 0.47 0.44 n.a
Current Liab. to Liab. 0.10 0.13 0.13 n.a

Liquidity Ratios
Net Working Capital $337,037 $346,466 $382,139 n.a
Interest Coverage 2.77 0.58 3.14 n.a

Additional Ratios
Assets to Sales 1.63 1.42 1.37 n.a
Current Debt/Total Assets 3% 4% 4% n.a
Acid Test 25.67 21.31 23.32 n.a
Sales/Net Worth 0.89 1.03 1.05 n.a
Dividend Payout 0.00 0.00 0.00 n.a

COMPANY NAME | PHONE # 21

 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Memberships $6,500 $6,760 $7,030 $7,311 $7,603 $7,907 $8,223 $8,552 $8,894 $9,250 $9,620 $10,005
Events $3,725 $3,874 $4,029 $4,190 $4,358 $4,532 $4,713 $4,902 $5,098 $5,302 $5,514 $5,735
Other $7,825 $7,982 $8,142 $8,305 $8,471 $8,640 $8,813 $8,989 $9,169 $9,352 $9,539 $9,730
Total Sales $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Membership $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Events $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales

Page 1
 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Salaries $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Account/Legal $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Total People 2 2 2 2 2 2 2 2 2 2 2 2

Total Payroll $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300
Marketing/Promotion $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Depreciation $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Rent $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790
Utilities $680 $680 $680 $680 $680 $680 $680 $680 $680 $680 $680 $680
Insurance $522 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795
1099 Employees 15% $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766
Entertainment 15% $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Other $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070

Total Operating $19,323 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801
Expenses

Profit Before Interest ($1,273) ($185) $400 $1,005 $1,631 $2,278 $2,948 $3,642 $4,360 $5,103 $5,872 $6,669
and Taxes
EBITDA ($73) $1,015 $1,600 $2,205 $2,831 $3,478 $4,148 $4,842 $5,560 $6,303 $7,072 $7,869
Interest Expense $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975
Taxes Incurred ($337) ($174) ($86) $5 $98 $195 $296 $400 $508 $619 $735 $854

Net Profit ($1,911) ($986) ($489) $26 $558 $1,108 $1,677 $2,267 $2,877 $3,509 $4,162 $4,840
Net Profit/Sales -10.59% -5.30% -2.55% 0.13% 2.73% 5.25% 7.71% 10.10% 12.42% 14.68% 16.87% 19.00%

Page 3
 Appendix

Table: Cash Flow

Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Subtotal Cash from $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $350,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $368,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from
Operations
Cash Spending $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300
Bill Payments $449 $13,449 $13,105 $13,193 $13,284 $13,378 $13,475 $13,575 $13,680 $13,787 $13,899 $14,015
Subtotal Spent on $5,749 $18,749 $18,405 $18,493 $18,584 $18,678 $18,775 $18,875 $18,980 $19,087 $19,199 $19,315
Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $25,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term $75,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $105,749 $18,749 $18,405 $18,493 $18,584 $18,678 $18,775 $18,875 $18,980 $19,087 $19,199 $19,315

Net Cash Flow $262,301 ($133) $796 $1,313 $1,848 $2,401 $2,974 $3,568 $4,181 $4,817 $5,474 $6,155
Cash Balance $282,301 $282,168 $282,965 $284,278 $286,126 $288,528 $291,502 $295,069 $299,251 $304,067 $309,541 $315,697
Page 4
 Appendix

Table: Balance Sheet

Pro Forma Balance
Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

Current Assets
Cash $20,000 $282,301 $282,168 $282,965 $284,278 $286,126 $288,528 $291,502 $295,069 $299,251 $304,067 $309,541 $315,697
Other Current Assets $10,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000
Total Current Assets $30,000 $317,301 $317,168 $317,965 $319,278 $321,126 $323,528 $326,502 $330,069 $334,251 $339,067 $344,541 $350,697

Long-term Assets
Long-term Assets $28,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000 $103,000
Accumulated $17,000 $18,200 $19,400 $20,600 $21,800 $23,000 $24,200 $25,400 $26,600 $27,800 $29,000 $30,200 $31,400
Depreciation
Total Long-term $11,000 $84,800 $83,600 $82,400 $81,200 $80,000 $78,800 $77,600 $76,400 $75,200 $74,000 $72,800 $71,600
Assets
Total Assets $41,000 $402,101 $400,768 $400,365 $400,478 $401,126 $402,328 $404,102 $406,469 $409,451 $413,067 $417,341 $422,297

Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Current Liabilities
Accounts Payable $0 $13,012 $12,665 $12,750 $12,838 $12,929 $13,022 $13,120 $13,220 $13,324 $13,432 $13,544 $13,659
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $13,012 $12,665 $12,750 $12,838 $12,929 $13,022 $13,120 $13,220 $13,324 $13,432 $13,544 $13,659
Liabilities

Long-term Liabilities $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000
Total Liabilities $117,000 $130,012 $129,665 $129,750 $129,838 $129,929 $130,022 $130,120 $130,220 $130,324 $130,432 $130,544 $130,659

Paid-in Capital $0 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000
Retained Earnings ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000) ($76,000)
Earnings $0 ($1,911) ($2,897) ($3,386) ($3,360) ($2,802) ($1,695) ($18) $2,249 $5,126 $8,635 $12,798 $17,638
Total Capital ($76,000) $272,089 $271,103 $270,614 $270,640 $271,198 $272,305 $273,982 $276,249 $279,126 $282,635 $286,798 $291,638
Total Liabilities and $41,000 $402,101 $400,768 $400,365 $400,478 $401,126 $402,328 $404,102 $406,469 $409,451 $413,067 $417,341 $422,297
Capital

Net Worth ($76,000) $272,089 $271,103 $270,614 $270,640 $271,198 $272,305 $273,982 $276,249 $279,126 $282,635 $286,798 $291,637

Page 5