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[15/11/2011]
Presented by [ Sagnik Roy] M.B.A. 3rd Semester (Roll No:19)
[DREAM AUTO
PARTS
LTD.]
[BUSINESS PLAN ON EXPORTING
AUTOMOBILE PARTS]
Table of Contents
Page 1
1.0 Executive Summary .......................................................................................... 1
Chart: Highlights ............................................................................................... 1
1.1 Objectives ...................................................................................................... 2
1.2 Mission ........................................................................................................... 2
2.0 Company Summary ........................................................................................... 2
2.1 Company Ownership ...................................................................................... 2
2.2 Start-up Summary .......................................................................................... 3
Table: Start-up .................................................................................................. 3
Table: Start-up Funding ..................................................................................... 4
Chart: Start-up .................................................................................................. 6
3.0 Products ............................................................................................................ 6
4.0 Market Analysis Summary ................................................................................. 6
4.1 Market Segmentation ..................................................................................... 7
Table: Market Analysis ...................................................................................... 7
Chart: Market Analysis (Pie) .............................................................................. 8
4.2 Industry Analysis ............................................................................................ 8
4.3 Target Market Segment Strategy ................................................................... 8
4.4 Competition and Buying Patterns ................................................................... 8
5.0 Strategy and Implementation Summary ............................................................ 9
5.1 Competitive Edge ........................................................................................... 9
5.2 Sales Forecast ................................................................................................ 9
Chart: Sales Monthly ......................................................................................... 9
Chart: Sales by Year ........................................................................................ 10
Table: Sales Forecast ...................................................................................... 10
5.3 Milestones .................................................................................................... 11
Chart: Milestones ............................................................................................ 11
Table: Milestones ............................................................................................ 11
5.4 Marketing Strategy ....................................................................................... 12
6.0 Management Summary ................................................................................... 12
6.1 Personnel Plan .............................................................................................. 12
Table: Personnel.............................................................................................. 12
7.0 Financial Plan .................................................................................................. 13
7.1 Break-even Analysis ..................................................................................... 13
Table of Contents
Page 2
Chart: Break-even Analysis ............................................................................. 13
Table: Break-even Analysis ............................................................................. 13
7.2 Projected Profit and Loss .............................................................................. 14
7.2 Projected Profit and Loss .............................................................................. 14
Table: Profit and Loss ...................................................................................... 14
Chart: Profit Monthly ....................................................................................... 15
Chart: Profit Yearly .......................................................................................... 16
Chart: Gross Margin Monthly ........................................................................... 16
Chart: Gross Margin Yearly .............................................................................. 17
7.3 Projected Cash Flow ..................................................................................... 17
Chart: Cash ..................................................................................................... 17
Table: Cash Flow ............................................................................................. 18
7.4 Projected Balance Sheet .............................................................................. 19
7.4 Projected Balance Sheet .............................................................................. 19
Table: Balance Sheet ...................................................................................... 20
7.5 Business Ratios ............................................................................................ 21
7.5 Business Ratios ............................................................................................ 21
Table: Ratios ................................................................................................... 21
Table: Sales Forecast .............................................................................................. 1
Table: Personnel ...................................................................................................... 1
Table: Personnel ...................................................................................................... 1
Table: General Assumptions .................................................................................... 2
Table: General Assumptions .................................................................................... 2
Table: Profit and Loss .............................................................................................. 2
Table: Profit and Loss .............................................................................................. 2
Page 1
Executive Summary D.A.P. Exports is a business that exports automobile parts and auto lubricants to Jamaica and other countries including Venezuela, Columbia and Ecuador. Many of the company's shipments combine American-made products with foreign parts with some re-packaging and labeling.
Auto part sales is currently a $100 million industry in Latin America and the Caribbean. In these countries, a majority of the automobiles were manufactured in the 1980's. Finding replacement parts for these autos has become a difficult process as auto makers focus on cars produced in the last ten years.
D.A.P. Exports has established an extensive network of customer contacts in the region. Sagnik Roy, owner of D.A.P Exports, has two years of experience selling consumer products in Latin America and the Caribbean. Sagnik has been a marketing person for HUL Products, & TATA motors.
D.A.P. Exports will contract with the region's taxi companies to provide auto parts and auto lubricants at wholesale prices. The taxi companies will either use the parts to repair their own vehicles or they will sell the parts to consumers. D.A.P Exports will also sell auto parts to auto part stores in the region.
Chart: Highlights
Sales
Gross Margin
Net Profit
0
`100,000
`200,000
`300,000
`400,000
`500,000
`600,000
`700,000
`800,000
`900,000
Year 1 Year 2 Year 3
Highlights
Page 2
Objectives D.A.P. Exports' objectives are as follows:
Achieve handsome sales revenues during first year of operation.
Achieve a customer base of 100 taxi companies in the region.
Increase sales modestly during the second year of operation.
Mission The mission of D.A.P. Exports is to be the auto parts provider of choice with the region's taxi companies.
Company Summary
D.A.P. Exports is a business that exports automobile parts and auto lubricants to Jamaica and other countries including Venezuela, Columbia and Ecuador. Many of the company's shipments combine American-made products with foreign parts with some re-packaging and labeling.
The company will be organized as a limited liability partnership.
D.A.P. Exports has an 8,000 square foot facility in Shibpur, Howrah. The facility is located near the Kolkata hub critical to our important markets. It will keep costs in control as well as enabling fast and economical access to our key markets for company-related business.
Company Ownership
D.A.P. Exports is an LLC partnership owned by Sagnik Roy and a silent partner (name Payel Roy).
Page 3
Start-up Summary
The start-up expense for D.A.P. Exports is focused primarily on inventory and repackaging equipment. Sagnik Roy will personally invest in the company. The silent partner will invest additional funds. In addition, Sagnik will also secure a long-term loan.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal `10,000
Stationery etc. `1,000
Brochures `2,000
Insurance `2,000
Rent `2,000
Expensed Equipment `50,000
Total Start-up Expenses `67,000
Start-up Assets
Cash Required `83,000
Start-up Inventory `100,000
Other Current Assets `0
Long-term Assets `0
Total Assets `183,000
Total Requirements `250,000
Page 4
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund `67,000
Start-up Assets to Fund `183,000
Total Funding Required `250,000
Assets
Non-cash Assets from Start-up `100,000
Cash Requirements from Start-up `83,000
Additional Cash Raised `0
Cash Balance on Starting Date `83,000
Total Assets `183,000
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
Page 5
Capital
Planned Investment
James Dunn `50,000
Silent Partner `100,000
Additional Investment Requirement `0
Total Planned Investment `150,000
Loss at Start-up (Start-up Expenses) (`67,000)
Total Capital `83,000
Total Capital and Liabilities `183,000
Total Funding `250,000
Page 6
Chart: Start-up
Products
D.A.P. Exports products are the following:
Transmission parts
Engine parts
Electrical parts
Engine lubricants
Market Analysis Summary
Auto part sales is a $100 million dollar industry in Latin America and the Caribbean. In these countries, a majority of the automobiles were manufactured in the 1980s. Finding replacement parts for these autos has become a difficult process as auto makers focus on cars produced in the last ten years.
Typically, old cars are used as a source of parts once they can no longer be repaired. The major obstacle to accessing the market is the sparse number of auto part stores in the region where the prices for auto parts are high. Most of these auto stores focus on the upscale customer and don't carry a wide range of parts for the older autos.
D.A.P. Exports will sell parts to auto stores but we will also pursue a new distribution network as well. The largest buyers of auto parts in the region are taxi companies. D.A.P. Exports has established an extensive network of contacts with these companies, and we will sell directly to them.
0
`20,000
`40,000
`60,000
`80,000
`100,000
`120,000
`140,000
`160,000
`180,000 `200,000
Expenses Assets Investment Loans
Start-up
Page 7
Market Segmentation
D.A.P. Exports will focus on the following target customers:
Taxi companies
Auto part stores
It is expected that individuals will also purchase from D.A.P., but the repeat business, lower price sensitivity and larger volume per order mean that stores and taxi services will be more attractive customers for D.A.P.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers
Growth CAGR
Taxi Companies 10% 2,000 2,200 2,420 2,662 2,928 10.00%
Auto Part Stores 8% 4,000 4,320 4,666 5,039 5,442 8.00%
Total 8.68% 6,000 6,520 7,086 7,701 8,370 8.68%
Page 8
Chart: Market Analysis (Pie)
Industry Analysis
Currently, the markets are too small to attract many competitors. The auto parts shops in the region are not expanding to meet the demand for parts for older cars. They are instead focusing on the newer cars that are being imported into the countries by wealthy individuals.
Utilizing the taxi services as a distribution network as well as primary customers is an excellent strategy to capture market share of a segment that is currently being ignored by bigger players.
Target Market Segment Strategy
It is estimated that there are over 25,000 vehicles in the region that are used by taxi services. And that number is growing.
The taxi firms are excellent target customers for D.A.P. Export products. First, they represent the largest buying block in our target countries. In addition there is no established channel for them to purchase parts for their cars at this time.
By buying direct from D.A.P. Export, they reduce the cost of parts and they get exactly what they need quickly.
Although many of the taxi drivers are independent or work for small companies, the informal network within this group is extensive. There is a lot of downtime in this business, where drivers are waiting for fares. They will chat to friends/colleagues about their cars and their work. We will benefit from this through word-of-mouth recommendations.
Competition and Buying Patterns
Without much competition, the key to maintaining the customer base is the right parts, at a reasonable price, delivered quickly. As D.A.P. Exports meets customer's demand for parts in a timely manner, sales will grow. The company will be able to strengthen the business relationships that will be critical when competition does emerge.
Page 9
Strategy and Implementation Summary
D.A.P. Exports will offer a 15% discount on all purchases of `1,000 or more. We will also have two salespeople based in Latin America and the Caribbean. Our focus will be to establish our future on a strong relationship with the region's taxi services.
Sagnik has established export contacts in Latin America and the Caribbean, that will make the process of developing an export channel for car parts much easier. In these countries, much business in done by a handshake and word of mouth, rather than formal contracts. His experience and contacts will be invaluable in this environment.
Competitive Edge
The products that D.A.P is selling are made for older cars, and the trend in this country is towards newer cars, therefore domestic demand for these parts is falling. For this reason, James will be able to negotiate excellent prices on the products that he will sell. He will also order in bulk which will further increase his negotiating leverage.
The other competitive edge of D.A.P. Exports is that we can assemble a product package that is exactly what a specific customer wants. When the taxi service buys directly from D.A.P. Exports, they will receive the highest quality product at the lowest price. Previously, because of the lack of an organized, established channel, car owners had to spend time shopping around for parts. Therefore their cars would be off the road for longer periods of time--every day costing them more lost revenue.
Sales Forecast
The following is the sales forecast for three years.
Chart: Sales Monthly
Auto Parts
Auto Lubricants
Other
`0
`10,000
`20,000
`30,000
`40,000
`50,000
`60,000
`70,000
`80,000
`90,000
o 1
t 2
t 3
o t 4
o t 5
o t 6
n t 7
t h 8
t 9
t 10
n t 11
o t h 1
Sales Monthly
Page 10
Chart: Sales by Year
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Auto Parts `410,000 `480,000 `550,000
Auto Lubricants `186,000 `230,000 274,000
Other `0 `0 `0
Total Sales `596,000 `710,000 `824,000
Direct Cost of Sales Year 1 Year 2 Year 3
Auto Parts `200,000 `240,000 `275,000
Auto Lubricants `93,000 `115,000 `137,000
Other `0 `0 `0
Subtotal Direct Cost of Sales `293,000 `355,000 `412,000
Auto Parts
Auto Lubricants
Other
$0
`100,000
`200,000
`300,000
`400,000
`500,000
`600,000
`700,000
`800,000
`900,000
Year 1 Year 2 Year 3
Sales by Year
Page 11
Milestones
The accompanying chart and table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Chart: Milestones
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Facility Set-up 5/1/2011 5/20/2011 `20,000 Sagnik Roy Marketing
Inventory Set-up 5/1/201 5/20/2011 `100,000 Sagnik Roy Department
Marketing Campaign 5/1/2011 6/15/201 `20,000 Sagnik Roy Department
Totals `140,000
May `11 Jun
Marketing Campaign
Inventory Set-up
Facility Set-up
Milestones
Page 12
Marketing Strategy
During the months of May and June the regional salespeople will deliver presentations to taxi firms and auto parts stores in the region. D.A.P. Export will offer a 15% discount on all purchases over `1,000.
The key to the marketing strategy is continuous follow-up with customers so we can anticipate the parts inventory that will be needed in the future.
6.0 Management Summary
Sagnik Roy, owner of D.A.P Exports, will manage the business. In addition he has contacts with people and businesses that can only be gained from years of living or working in a country. Sagnik has been a marketing person for HUL, and TATA motors. Sagnik has excellent management skills. In his last position he managed a sales staff of five people, and each year the team beat its sales quota by more than 10%. He was successful in motivating the best performance of each staff member.
Sagnik has also had experience in running a small business in the past.
Personnel Plan
D.A.P. Exports' personnel are as follows:
Sagnik Roy
Facility staff (4)
Sales staff (2)
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Sagnik Roy `36,000 `39,000 `42,000
4 Facility Staff `86,400 `94,000 `102,000
2 Sales Staff `72,000 `80,000 `88,000
Total People 7 7 7
Total Payroll `194,400 `213,000 `232,000
Page 13
Financial Plan
The following is the financial plan for D.A.P. Exports.
Break-even Analysis
The monthly break-even point, based on average monthly running costs and estimated variable costs of sales is shown in the table and chart below.
Chart: Break-even Analysis
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even `42,743
Assumptions:
Average Percent Variable Cost 49%
Estimated Monthly Fixed Cost `21,730
`0
`4,000
`8,000
`12,000
`16,000
`20,000
(`4,000)
(`8,000)
(`12,000)
(`16,000)
(`20,000)
`0 `7,000
`14,000 `21,000
`28,000 `35,000
`42,000 `49,000
`56,000
`63,000 `70,000
`77,000
Break-even Analysis
Page 14
Projected Profit and Loss
The following table and charts highlight the projected profit and loss for three years.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales `596,000 `710,000 `824,000
Direct Cost of Sales `293,000 `355,000 `412,000
Other Production Expenses `0 `0 `0
Total Cost of Sales `293,000 `355,000 `412,000
Gross Margin `303,000 `355,000 `412,000
Gross Margin % 50.84% 50.00% 50.00%
Expenses
Payroll `194,400 `213,000 `232,000
Sales and Marketing and Other Expenses
`6,000 `10,000 `15,000
Depreciation `0 `0 `0
Leased Equipment `0 `0 `0
Utilities `7,200 `8,000 `9,000
Insurance `0 `0 `0
Rent `24,000 `24,000 `24,000
Payroll Taxes `29,160 `31,950 `34,800
Other `0 `0 `0
Page 15
Total Operating Expenses `260,760 `286,950 `314,800
Profit Before Interest and Taxes `42,240 `68,050 `97,200
EBITDA `42,240 `68,050 `97,200
Interest Expense `10,000 `10,000 `10,000
Taxes Incurred `9,672 `17,415 `26,160
Net Profit `22,568 `40,635 `61,040
Net Profit/Sales 3.79% 5.72% 7.41%
Chart: Profit Monthly
$0
`3,000
`6,000
`9,000
`12,000
`15,000
(`3,000)
(`6,000)
(`9,000)
(`12,000)
(`15,000)
Month 1 Month 2
Month 3 Month 4
Month 5 Month 6
Month 7 Month 8
Month 9 Month 10
Month 11 Month 12
Profit Monthly
Page 16
Chart: Profit Yearly
Chart: Gross Margin Monthly
`0
`5,000
`10,000
`15,000
`20,000
`25,000
`30,000
`35,000
`40,000
`45,000
`50,000
Month 1 Month 2
Month 3 Month 4
Month 5 Month 6
Month 7 Month 8
Month 9 Month 10
Month 11 Month 12
Gross Margin Monthly
`0
`10,000
`20,000
`30,000
`40,000
`50,000
`60,000
Year 1 Year 2 Year 3
Profit Yearly
Page 17
Chart: Gross Margin Yearly
Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
Chart: Cash
Net Cash Flow
Cash Balance
`0
`20,000
`40,000
`60,000
`80,000
`100,000
o t 1
o t 2
n t 3
4
o t 5
t 6
o t 7
o t 8
o t 9
o t 1
o t 1
o t 1
Cash
`0
`50,000
`100,000
`150,000
`200,000
`250,000
`300,000
`350,000
`400,000
Year 1 Year 2 Year 3
Gross Margin Yearly
Page 18
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales `149,000 `177,500 `206,000
Cash from Receivables `324,550 `509,078 `594,578
Subtotal Cash from Operations `473,550 `686,578 `800,578
Additional Cash Received
Sales Tax, VAT, HST/GST Received `0 `0 `0
New Current Borrowing `0 `0 `0
New Other Liabilities (interest-free) `0 `0 `0
New Long-term Liabilities `0 `0 `0
Sales of Other Current Assets `0 `0 `0
Sales of Long-term Assets `0 `0 `0
New Investment Received `0 `0 `0
Subtotal Cash Received `473,550 `686,578 `800,578
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Page 19
Cash Spending `194,400 `213,000 `232,000
Bill Payments `265,680 `510,321 `535,986
Subtotal Spent on Operations `460,080 `723,321 `767,986
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 `0 `0 `0
Purchase Long-term Assets `0 `0 `0
Dividends `0 `0 `0
Subtotal Cash Spent `460,080 `723,321 `767,986
Net Cash Flow `13,470 (`36,743) `32,592
Cash Balance `96,470 `59,727 `92,320
Page 20
Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash `96,470 `59,727 `92,320
Accounts Receivable `122,450 `145,872 `169,293
Inventory `46,200 `80,972 `90,014
Other Current Assets `0 `0 `0
Total Current Assets `265,120 `286,570 `351,627
Long-term Assets
Long-term Assets `0 `0 `0
Accumulated Depreciation `0 `0 `0
Total Long-term Assets `0 `0 `0
Total Assets `265,120 `286,570 `351,627
Liabilities and Capital Year 1 Year 2 Year 3
Page 21
Current Liabilities
Accounts Payable `59,552 `40,367 `44,384
Current Borrowing `0 `0 `0
Other Current Liabilities `0 `0 `0
Subtotal Current Liabilities `59,552 `40,367 `44,384
Long-term Liabilities `100,000 `100,000 `100,000
Total Liabilities `159,552 `140,367 `144,384
Paid-in Capital `150,000 `150,000 `150,000
Retained Earnings (`67,000) (`44,432) (`3,797)
Earnings `22,568 `40,635 `61,040
Total Capital `105,568 `146,203 `207,243
Total Liabilities and Capital `265,120 `286,570 `351,627
Net Worth `105,568 `146,203 `207,243
Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5013, Moter Vehicles Supplies and New Parts, are shown for comparison.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 19.13% 16.06% 12.20%
Page 22
Percent of Total Assets
Accounts Receivable 46.19% 50.90% 48.15% 25.10%
Inventory 17.43% 28.26% 25.60% 46.10%
Other Current Assets 0.00% 0.00% 0.00% 15.10%
Total Current Assets 100.00% 100.00% 100.00% 86.30%
Long-term Assets 0.00% 0.00% 0.00% 13.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 22.46% 14.09% 12.62% 46.60%
Long-term Liabilities 37.72% 34.90% 28.44% 11.50%
Total Liabilities 60.18% 48.98% 41.06% 58.10%
Net Worth 39.82% 51.02% 58.94% 41.90%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 50.84% 50.00% 50.00% 21.70%
Selling, General & Administrative Expenses
47.05% 44.28% 42.59% 13.20%
Advertising Expenses 1.01% 1.41% 1.82% 0.70%
Profit Before Interest and Taxes 7.09% 9.58% 11.80% 1.40%
Main Ratios
Current 4.45 7.10 7.92 1.98
Quick 3.68 5.09 5.89 0.78
Total Debt to Total Assets 60.18% 48.98% 41.06% 58.10%
Page 23
Pre-tax Return on Net Worth 30.54% 39.71% 42.08% 3.80%
Pre-tax Return on Assets 12.16% 20.26% 24.80% 9.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 3.79% 5.72% 7.41% n.a
Return on Equity 21.38% 27.79% 29.45% n.a
Activity Ratios
Accounts Receivable Turnover 3.65 3.65 3.65 n.a
Collection Days 56 92 93 n.a
Inventory Turnover 5.31 5.58 4.82 n.a
Accounts Payable Turnover 5.46 12.17 12.17 n.a
Payment Days 28 37 29 n.a
Total Asset Turnover 2.25 2.48 2.34 n.a
Debt Ratios
Debt to Net Worth 1.51 0.96 0.70 n.a
Current Liab. to Liab. 0.37 0.29 0.31 n.a
Liquidity Ratios
Net Working Capital `205,568 `246,203 `307,243 n.a
Interest Coverage 4.22 6.81 9.72 n.a
Additional Ratios
Assets to Sales 0.44 0.40 0.43 n.a
Current Debt/Total Assets 22% 14% 13% n.a
Page 24
Acid Test 1.62 1.48 2.08 n.a
Sales/Net Worth 5.65 4.86 3.98 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Appendix
Page 1
Table: Sales Forecast
Sales Forecast
Month
1
Month
2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
Auto Parts 0% `0 `0 `20,000 `26,000 `30,000 `36,000 `40,000 `44,000 `48,000 `50,000 `56,000 `60,000
Auto Lubricants
0% `0 `0 `8,000 `12,000 `12,000 `16,000 `20,000 `20,000 `24,000 `24,000 `26,000 `24,000
Other 0% `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Total Sales `0 `0 `28,000 `38,000 `42,000 `52,000 `60,000 `64,000 `72,000 `74,000 `82,000 `84,000
Direct Cost of Sales
Month
1
Month
2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Auto Parts `0 `0 `10,000 `13,000 `15,000 `18,000 `20,000 `22,000 `24,000 `25,000 `23,000 `30,000
Auto Lubricants
`0 `0 `4,000 `6,000 `6,000 `8,000 `10,000 `10,000 `12,000 `12,000 `13,000 `12,000
Other `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Subtotal Direct Cost of Sales
`0 `0 `14,000 `19,000 `21,000 `26,000 `30,000 `32,000 `36,000 `37,000 `36,000 `42,000
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sagnik Roy
0% `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000 `3,000
4 Facility Staff
0% `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200 `7,200
2 Sales Staff
0% `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000 `6,000
Total People
7 7 7 7 7 7 7 7 7 7 7 7
Total Payroll
`16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200
Appendix
Page 2
Table: General Assumptions
General Assumptions
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest 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%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1 Month 2 Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales `0 `0 `28,000 `38,000 `42,000 `52,000 `60,000 `64,000 `72,000 `74,000 `82,000 `84,000
Direct Cost of Sales
`0 `0 `14,000 `19,000 `21,000 `26,000 `30,000 `32,000 `36,000 `37,000 `36,000 `42,000
Other Production Expenses
`0 `0 `0 `0 `0 $0 `0 `0 `0 `0 `0 `0
Total Cost of Sales
`0 `0 `14,000 `19,000 `21,000 `26,000 `30,000 `32,000 `36,000 `37,000 `36,000 `42,000
Gross Margin
`0 `0 `14,000 `19,000 `21,000 `26,000 `30,000 `32,000 `36,000 `37,000 `46,000 `42,000
Gross Margin %
0.00% 0.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 56.10% 50.00%
Expenses
Payroll `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200 `16,200
Appendix
Page 3
Sales and Marketing and Other Expenses
`500 `500 `500 `500 `500 `500 `500 `500 `500 `500 `500 `500
Depreciation `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Leased Equipment
`0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Utilities `600 `600 `600 `600 `600 `600 `600 `600 `600 `600 `600 `600
Insurance `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Rent `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000 `2,000
Payroll Taxes
15% `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430 `2,430
Other `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0 `0
Total Operating Expenses
`21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730 `21,730
Profit Before Interest and Taxes
(`21,730) (`21,730) (`7,730) (`2,730) (`730) `4,270 `8,270 `10,270 `14,270 `15,270 `24,270 `20,270
EBITDA (`21,730) (`21,730) (`7,730) (`2,730) (`730) `4,270 `8,270 `10,270 `14,270 `15,270 `24,270 `20,270
Interest Expense
`833 `833 `833 `833 `833 `833 `833 `833 `833 `833 `833 `833
Taxes Incurred
(`6,769) (`6,769) (`2,569) (`1,069) (`469) `1,031 `2,231 `2,831 `4,031 `4,331 `7,031 `5,831
Net Profit (`15,794) (`15,794) (`5,994) (`2,494) (`1,094) `2,406 `5,206 `6,606 `9,406 `10,106 `16,406 `13,606
Net Profit/Sales
0.00% 0.00% -21.41%
-6.56% -2.61% 4.63% 8.68% 10.32% 13.06% 13.66% 20.01% 16.20%
