Example - Business Plan - Dishware Pottery Manufacturer

8/7/2019 Example - Business Plan - Dishware Pottery Manufacturer

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October 2001

This sample business plan has been made available to users ofBusiness Plan Pro, businessplanning software published by Palo Alto Software. Names, locations and numbers may havebeen changed, and substantial portions of text may have been omitted from the original plan

to preserve confidentiality and proprietary information.

You are welcome to use this plan as a starting point to create your own, but you do not havepermission to reproduce, publish, distribute or even copy this plan as it exists here.

Requests for reprints, academic use, and other dissemination of this sample plan should beemailed to the marketing department of Palo Alto Software at [email protected]. Forproduct information visit our Website: www.paloalto.com or call: 1-800-229-7526.

Copyr ight Palo Al to Sof tw are, Inc. , 1995-2002


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ inthis business plan is confidential; therefore, reader agrees not to disclose it without theexpress written permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in allrespects confidential in nature, other than information which is in the public domain throughother means and that any disclosure or use of same by reader, may cause serious harm ordamage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

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


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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3.0 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.3 Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5.2.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.3 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7.0 Financial P lan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7.2 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.3 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107.4 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117.5 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table of Contents


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1.0 Executive Summary

Kaolin Calefactors (KC) is an Oregon company that designs and manufactures production andcustom dishware. The designs can be anything that the customer would like, however, SueGlazer's genre is modern or popular art. The typical customer is either someone purchasing ahandmade gift for a friend/relative, or someone who is interested in owning unusual everydaydishware.

Kaolin Calefactors is a unique business opportunity that will allow Sue Glazer to combine herlove for ceramics and parlay this affinity into a money making venture.

Kaolin Calefactors will leverage their competitive advantage of a customer-centric businessmodel to rapidly gain market share in the custom dishware niche. Profitability will be reachedby month nine and revenues for year three are projected to reach $78,000.

1.1 Objectives

The objectives for the first three years of operation include:

To create a company whose goal is to exceed customer's expectations. To increase the number of custom clients by 20% per year. To develop a sustainable start-up business that leverages a hobby into a business.

1.2 Mission

Kaolin Calefactors' mission is to design and construct the finest dishware pottery. We exist toattract and maintain customers. When we adhere to this maxim, everything else will fall intoplace. Our services will exceed the expectations of our customers.

1.3 Keys to Success

The key to success is innovative design and a customer-centric approach.

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($20,000)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

2001 2002 2003

SalesGross Margin

Net Profit

Highlights (Planned)

2.0 Company Summary

Kaolin Calefactors is a Eugene, OR based start-up company that hand makes production andcustom ceramic dishware. KC sells their products in local crafts stores, craft fairs, and via their

website.

2.1 Company Ownership

Kaolin Calefactors is a sole proprietorship founded and owned by Sue Glazer.

2.2 Start-up Summary

Kaolin Calefactors will incur the following start-up costs:

Computer system with a CD-RW, printer, Microsoft Office and QuickBooks Pro. Commercial kiln. Electric potters wheel. Storage containers for the clay and glazes. Assorted tools for trimming, edging and glazing.

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Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $500Website development $0Brochures $150Other $0Total Start-up Expense $650

Start-up Assets NeededCash Balance on Starting Date $11,750Other Short-term Assets $0Total Short-term Assets $11,750

Long-term Assets $5,600Total Assets $17,350Total Requirements $18,000

Funding

InvestmentSue $18,000Investor 2 $0Other $0Total Investment $18,000

Short-term LiabilitiesAccounts Payable $0Current Borrowing $0Other Short-term Liabilities $0Subtotal Short-term Liabilities $0

Long-term Liabilities $0Total Liabilities $0

Loss at Start-up ($650)Total Capital $17,350Total Capital and Liabilities $17,350

3.0 Products

Kaolin Calefactors makes production and custom dishware. KC manufactures a line of 12production styles of dishware as well as the option of custom designs. Custom designs can beeither based on a design KC has done in the past or can be a creation of the customer.

Please note that the use of the term production is not the traditional usage. While Sue doeshave some production designs all this means is that she makes them for inventory regardless

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4.0 Market Analysis Summary

The market can be broken down into two groups, those that are buying the products for a gift,and those that are buying it for themselves. 80% of the consumer market for pottery is adultfemales.

4.1 Market Segmentation

The market can be segmented into two different groups:

People that are purchasing the pottery for other people. This segment is lookingfor a gift for someone and want something that is unique, and stands out relative tomost other dishware. This segment often will be purchasing from the production line ofdishware

People that are buying po ttery for themselves. Some people have a very specificidea/style in mind and are more likely to opt for a custom design. Custom work is moreexpensive and typically more unique, it is intuitive to expect that the more uniquedesign, the more likely that the person is buying the product for themselves.

Table: Market Analysis

Market AnalysisPotential Customers Growth 2001 2002 2003 2004 2005 CAGRGift purchasers 8% 21,455 23,171 25,025 27,027 29,189 8.00%End consumers 9% 19,886 21,676 23,627 25,753 28,071 9.00%Total 8.48% 41,341 44,847 48,652 52,780 57,260 8.48%

4.2 Target Market Segment Strategy

These two groups will be targeted by developing visibility for Kaolin Calefactors in areas thatpeople interested in fine, handmade dishware can be found, including participating in localcraft fairs. Local craft fairs are a gathering of different crafts people that set up boothsdisplaying all of their creations. People that are looking for unique, handmade designs, willoften come to the craft fairs to view a wide section of products.

Kaolin Calefactors will also have a website that will extensively detail all of the different

production designs that are available. In addition to the production items, Sue's portfolio ofpast and present designs will be available online to offer suggestions for custom designs.

Lastly, all of the products, particularly useful in the retail sale of the KC products in craftstores, comes with a little card that details information about Kaolin Calefactors, Sue, and thewebsite. The website is advertised heavily in this flyer, encouraging people to visit the site andgain insight into the infinite number of custom designs available.

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4.3 Industry Analysis

The craft industry is composed of wood workers, ceramics, doll painters, and jewelers. Themajority of craftspeople attend weekend craft shows while at the same time maintaining a full-time job. This aspect of having a full-time job and creating crafts for sale is interesting in thesense of people are trying to combine their hobby into a minor money making venture.

The minority of craftsmen turn their hobby into a full-time job, like Sue.

While most craftsmen generally work at home, potters as a subset typically rent out of space.Potters typically have more equipment and require more space for the different phases of thepottery like the drying phase, the post kiln phase, and then the post glazing phase.

4.3.1 Competition and Buying Patterns

The competition consists of different sources.

Commercial dishware manufacturers. This competitor mass manufactures a wide rangeof dishware. These companies appeal to someone that is looking for general dishware.These competitors serve people that are more interested in function insetad ofaesthetics.

Assorted craftspeople. This group of competitors is serving the segment of people thatare purchasing the ceramics for gifts.

Other potters. This group is the most direct competitor in terms of business activities,but not necessarily the most vigorous. The reason they are not the most vigorouscompetitors is because most potters that sell their products make cups and vases.

Therefore, while they are direct competitors, not many are making competing dishware.

5.0 Strategy and Implementation Summary

The strategy for building customers will be based on communicating Kaolin Calefactors'customer-centric approach to the customer. Kaolin Calefactors encourages a cooperativerelationship with their customers in the design and manufacture of the dishware.

5.1 Competitive Edge

Kaolin Calefactors' competitive edge is their customer-centric approach to business. This ismost prevalent in the custom designs where Sue works hand-in-hand with the customer toallow them to create their perfect design This cooperative relationship with the customer

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5.2 Sales Strategy

The sales strategy will be based on communicating that owning your own production, orcustom, dishware is a source of pride and appreciation by you as well as your guests.Dishware is something that you use, typically two times a day. It is something that you arealways looking at. It is also something that can add to the presentation of the food. Lastly, ifproperly cared for, the dishware is a long-term investment because it is quite durable and thedesigns can be timeless.

The other element that will be emphasized when trying to turn a prospective customer into asale is the cooperative process that involves the customer in the creation of their dishware.

5.2.1 Sales Forecast

The first month of business will be used to set up the work studio as well as line up retail salesoutlets, schedule upcoming craft fairs, and the design of the website. There will be a bit ofbusiness occurring in month two with a steady increase by month five.

Table: Sales Forecast (Planned)

Sales ForecastSales 2001 2002 2003Gift purchasers $21,436 $42,457 $49,854End consumers $19,292 $38,211 $44,869Total Sales $40,728 $80,668 $94,723

Direct Cost of Sales 2001 2002 2003

Gift purchasers $3,644 $7,218 $8,475End consumers $3,280 $6,496 $7,628Subtotal Direct Cost of Sales $6,924 $13,714 $16,103

$3,000

$4,000

$5,000

$6,000

Gift purchasers

End consumers

Sales Monthly (Planned)

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5.3 Milestones

Kaolin Calefactors will have several milestones:

Business plan completion. This will be done as a roadmap for the organization. This willbe an indispensable tool for the ongoing performance and improvement of thecompany.

Office/work space set up. Establishment of retail sales outlets.

Table: Milestones (Planned)

MilestonesMilestone Start Date End Date Budget Manager DepartmentBusiness plan completion 1/1/01 2/1/01Office/work space set up 1/1/01 2/1/01Establishment of retail salesoutlets

1/1/01 3/1/01

Totals $0

6.0 Management Summary

Sue Glazer has a Bachelor of Arts from Washington and Jefferson. After taking a variety ofclasses her freshman year including a ceramics class, she fell in love with pottery. Recognizingthat ceramics was her love in life, she continued schooling at Carnegie Mellon University,pursuing her Masters in Art.

After this two year program, she began looking for jobs that would allow her to practice her

love of pottery. Through contact with one of her professors from W&J, she learned aprofessorship was open at W&J in the art department and she spent four years teachingceramics. After the four years she decided to move out to the Pacific Northwest, Eugene, ORspecifically, for an increased quality of life.

6.1 Personnel Plan

Kaolin Calefactors is a sole proprietorship with Sue as the only employee. She will beresponsible for everything, strategic relationships, administrative details, and of course, thecreation of the art.Table: Personnel (Planned)

Personnel Plan2001 2002 2003

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7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

Table: Profit and Loss (Planned)

Pro Forma Profit and Loss2001 2002 2003

Sales $40,728 $80,668 $94,723Direct Cost of Sales $6,924 $13,714 $16,103Other Production Expenses $0 $0 $0

------------ ------------ ------------

Total Cost of Sales $6,924 $13,714 $16,103Gross Margin $33,805 $66,955 $78,620Gross Margin % 83.00% 83.00% 83.00%Operating Expenses:Advertising/Promotion $900 $900 $900Travel $1,200 $1,000 $800Miscellaneous $0 $0 $0Payroll Expense $30,000 $35,000 $40,000Payroll Burden $4,500 $5,250 $6,000Depreciation $1,116 $1,116 $1,116Leased Equipment $0 $0 $0

Utilities/ DSL/ web hosting $1,800 $1,800 $1,800Insurance $600 $600 $600Rent $4,200 $4,200 $4,200Contract/Consultants $0 $0 $0

------------ ------------ ------------Total Operating Expenses $44,316 $49,866 $55,416Profit Before Interest and Taxes ($10,511) $17,089 $23,204Interest Expense Short-term $0 $0 $0Interest Expense Long-term $0 $0 $0Taxes Incurred $0 $5,127 $6,961Extraordinary Items $0 $0 $0

Net Profit ($10,511) $11,962 $16,243Net Profit/Sales -25.81% 14.83% 17.15%

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7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Table: Cash Flow (Planned)

Pro Forma Cash Flow 2001 2002 2003

Cash ReceivedCash from Operations:Cash Sales $40,728 $80,668 $94,723From Receivables $0 $0 $0

Subtotal Cash from Operations $40,728 $80,668 $94,723

Additional Cash ReceivedExtraordinary Items $0 $0 $0Sales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of other Short-term Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0

Subtotal Cash Received $40,728 $80,668 $94,723

Expenditures 2001 2002 2003Expenditures from Operations:Cash Spent on Costs and Expenses $1,562 $2,734 $3,136Wages, Salaries, Payroll Taxes, etc. $34,500 $40,250 $46,000Payment of Accounts Payable $12,676 $23,567 $27,871

Subtotal Spent on Operations $48,738 $66,551 $77,007

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0Purchase Other Short-term Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0

Adjustment for Assets Purchased on Credit $0 $0 $0Subtotal Cash Spent $48,738 $66,551 $77,007

Net Cash Flow ($8,010) $14,117 $17,716Cash Balance $3,740 $17,858 $35,573

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($4,000)

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

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

Net Cash Flow

Cash Balance

Cash (Planned)

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7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

AssetsShort-term Assets 2001 2002 2003Cash $3,740 $17,858 $35,573Other Short-term Assets $0 $0 $0

Total Short-term Assets $3,740 $17,858 $35,573Long-term AssetsLong-term Assets $5,600 $5,600 $5,600Accumulated Depreciation $1,116 $2,232 $3,348Total Long-term Assets $4,484 $3,368 $2,252Total Assets $8,224 $21,226 $37,825

Liabilities and Capital2001 2002 2003

Accounts Payable $1,386 $2,425 $2,782Current Borrowing $0 $0 $0

Other Short-term Liabilities $0 $0 $0Subtotal Short-term Liabilities $1,386 $2,425 $2,782

Long-term Liabilities $0 $0 $0Total Liabilities $1,386 $2,425 $2,782

Paid-in Capital $18,000 $18,000 $18,000Retained Earnings ($650) ($11,161) $801Earnings ($10,511) $11,962 $16,243Total Capital $6,839 $18,801 $35,043Total Liabilities and Capital $8,224 $21,226 $37,825

Net Worth $6,839 $18,801 $35,043

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Appendix Table: Sales Forecast (Planned)

Sales Forecast

Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecGift purchasers $500 $650 $1,025 $1,400 $1,600 $1,758 $2,014 $2,245 $2,378 $2,578 $2,601 $2,687End consumers $450 $585 $923 $1,260 $1,440 $1,582 $1,813 $2,021 $2,140 $2,320 $2,341 $2,418Total Sales $950 $1,235 $1,948 $2,660 $3,040 $3,340 $3,827 $4,266 $4,518 $4,898 $4,942 $5,105

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecGift purchasers $85 $111 $174 $238 $272 $299 $342 $382 $404 $438 $442 $457End consumers $77 $99 $157 $214 $245 $269 $308 $343 $364 $394 $398 $411Subtotal Direct Cost of Sales $162 $210 $331 $452 $517 $568 $651 $725 $768 $833 $840 $868

Appendix

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Appendix Table: Personnel (Planned)

Personnel Plan

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSue $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Payroll $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Total People 1 1 1 1 1 1 1 1 1 1 1 1Payroll Burden $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375Total Payroll Expenditures $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875

Appendix

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Appendix Table: General Assumptions

General Assumptions

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecShort-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%Long-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%Tax Rate % 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%Expenses in Cash % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%Personnel Burden % 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Appendix

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Appendix Table: Profit and Loss (Planned)

Pro Forma Profit and Loss

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSales $950 $1,235 $1,948 $2,660 $3,040 $3,340 $3,827 $4,266 $4,518 $4,898 $4,942 $5,105Direct Cost of Sales $162 $210 $331 $452 $517 $568 $651 $725 $768 $833 $840 $868Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Cost of Sales $162 $210 $331 $452 $517 $568 $651 $725 $768 $833 $840 $868Gross Margin $789 $1,025 $1,616 $2,208 $2,523 $2,772 $3,176 $3,540 $3,750 $4,066 $4,102 $4,237Gross Margin % 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00% 83.00%Operating Expenses:Advertising/Promotion $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75Travel $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Payroll Expense $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500Payroll Burden $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375Depreciation $93 $93 $93 $93 $93 $93 $93 $93 $93 $93 $93 $93Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Utilities/ DSL/ web hosting $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150Insurance $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Rent $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Operating Expenses $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693 $3,693Profit Before Interest and Taxes ($2,905) ($2,668) ($2,077) ($1,485) ($1,170) ($921) ($517) ($153) $57 $373 $409 $544Interest Expense Short-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Interest Expense Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($2,905) ($2,668) ($2,077) ($1,485) ($1,170) ($921) ($517) ($153) $57 $373 $409 $544Net Profit/Sales -305.74% -216.03% -106.63% -55.83% -38.48% -27.56% -13.51% -3.58% 1.26% 7.60% 8.27% 10.66%

Appendix

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Appendix Table: Cash Flow (Planned)

Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cash ReceivedCash from Operations:Cash Sales $950 $1,235 $1,948 $2,660 $3,040 $3,340 $3,827 $4,266 $4,518 $4,898 $4,942 $5,105From Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash from Operations $950 $1,235 $1,948 $2,660 $3,040 $3,340 $3,827 $4,266 $4,518 $4,898 $4,942 $5,105

Additional Cash ReceivedExtraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $950 $1,235 $1,948 $2,660 $3,040 $3,340 $3,827 $4,266 $4,518 $4,898 $4,942 $5,105

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecExpenditures from Operations:Cash Spent on Costs and Expenses $89 $93 $106 $118 $124 $129 $138 $145 $149 $156 $157 $159Wages, Salaries, Payroll Taxes, etc. $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875Payment of Accounts Payable $27 $799 $845 $954 $1,061 $1,119 $1,166 $1,240 $1,306 $1,346 $1,402 $1,409

Subtotal Spent on Operations $2,990 $3,768 $3,826 $3,947 $4,061 $4,123 $4,179 $4,260 $4,331 $4,376 $4,434 $4,444

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Adjustment for Assets Purchased on Credit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent $2,990 $3,768 $3,826 $3,947 $4,061 $4,123 $4,179 $4,260 $4,331 $4,376 $4,434 $4,444

Net Cash Flow ($2,040) ($2,533) ($1,878) ($1,287) ($1,021) ($783) ($352) $5 $187 $522 $508 $662Cash Balance $9,710 $7,177 $5,299 $4,012 $2,991 $2,208 $1,856 $1,861 $2,049 $2,571 $3,079 $3,740

Appendix

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22/22

Appendix Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

AssetsShort-term Assets Starting Balances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCash $11,750 $9,710 $7,177 $5,299 $4,012 $2,991 $2,208 $1,856 $1,861 $2,049 $2,571 $3,079 $3,740Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Short-term Assets $11,750 $9,710 $7,177 $5,299 $4,012 $2,991 $2,208 $1,856 $1,861 $2,049 $2,571 $3,079 $3,740Long-term AssetsLong-term Assets $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600Accumulated Depreciation $0 $93 $186 $279 $372 $465 $558 $651 $744 $837 $930 $1,023 $1,116Total Long-term Assets $5,600 $5,507 $5,414 $5,321 $5,228 $5,135 $5,042 $4,949 $4,856 $4,763 $4,670 $4,577 $4,484Total Assets $17,350 $15,217 $12,591 $10,620 $9,240 $8,126 $7,250 $6,805 $6,717 $6,812 $7,241 $7,656 $8,224

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

Accounts Payable $0 $771 $813 $919 $1,024 $1,080 $1,125 $1,197 $1,262 $1,299 $1,355 $1,362 $1,386Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Short-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Short-term Liabilities $0 $771 $813 $919 $1,024 $1,080 $1,125 $1,197 $1,262 $1,299 $1,355 $1,362 $1,386

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Liabilities $0 $771 $813 $919 $1,024 $1,080 $1,125 $1,197 $1,262 $1,299 $1,355 $1,362 $1,386

Paid-in Capital $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000Retained Earnings ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650) ($650)Earnings $0 ($2,905) ($5,572) ($7,649) ($9,134) ($10,304) ($11,225) ($11,742) ( $11,894) ($11,837) ($11,465) ($11,056) ( $10,511)Total Capital $17,350 $14,446 $11,778 $9,701 $8,216 $7,046 $6,125 $5,608 $5,456 $5,513 $5,885 $6,294 $6,839Total Liabilities and Capital $17,350 $15,217 $12,591 $10,620 $9,240 $8,126 $7,250 $6,805 $6,717 $6,812 $7,241 $7,656 $8,224

Net Worth $17,350 $14,446 $11,778 $9,701 $8,216 $7,046 $6,125 $5,608 $5,456 $5,513 $5,885 $6,294 $6,839

Appendix

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Documents

Example - Business Plan - Dishware Pottery Manufacturer