Jeddah Fit I have eight points to make and adjust accordingly.docx

Jeddah Fit
I have eight points to make and adjust accordingly:
1) follow this Table of Contents as you can & You can see the
attachment - sample plan - :
I. Table of Contents
II. Executive Summary
III. General Company Description
IV. Products and Services
V. Marketing Plan
VI. Operational Plan
VII. Management and Organization
VIII. Personal Financial Statement
IX. Startup Expenses and Capitalization
X. Financial Plan
XI. Appendices
XII. Refining the Plan
2) Change the number of loan like this :
The total cost of starting up the business is SAR 1,640,552
where the owner,
Mr. Ahmed will provide SAR 1,235,161 . The remaining
amount, which is will be funded SAR 405,391 by loan form
bank.
3) Change name of owner from Mr. Ahmed TO Ms. Dania
Ahmed.

4) Description and talk Repeater, please require explanation and
more non-recurring details.
5) Mentioned numbers such as pricing for subscriptions on
average and so on.
6) The situation is two to three years continuous and when the
profit is.
7) Use Use the excel files in the attached financial numbers and
add them in the plan.
The table is ready in the four attached Excel files. Just add the
base numbers and calculate the rest of the table directly. Use
realistic numbers not exaggerated.
8) What is the point ? (External groups are expected to raise
about 25% of the total revenue of the establishment) I think it is
inappropriate or incomprehensible and slightly overpriced!
Page 1 of 29

Business Plan for a Startup Business
The business plan consists of a narrative and several financial
worksheets. The narrative
template is the body of the business plan. It contains more than
150 questions divided into
several sections. Work through the sections in any order that
you want, except for the Executive
Summary, which should be done last. Skip any questions that do
not apply to your type of
business. When you are finished writing your first draft, you’ll
have a collection of small essays
on the various topics of the business plan. Then you’ll want to
edit them into a smooth-flowing
narrative.
The real value of creating a business plan is not in having the
finished product in hand; rather,
the value lies in the process of researching and thinking about
your business in a systematic
way. The act of planning helps you to think things through
thoroughly, study and research if you
are not sure of the facts, and look at your ideas critically. It
takes time now, but avoids costly,
perhaps disastrous, mistakes later.

This business plan is a generic model suitable for all types of
businesses. However, you should
modify it to suit your particular circumstances. Before you
begin, review the section titled Refining
the Plan, found at the end. It suggests emphasizing certain areas
depending upon your type of
business (manufacturing, retail, service, etc.). It also has tips
for fine-tuning your plan to make
an effective presentation to investors or bankers. If this is why
you’re creating your plan, pay
particular attention to your writing style. You will be judged by
the quality and appearance of
your work as well as by your ideas.
It typically takes several weeks to complete a good plan. Most
of that time is spent in research
and re-thinking your ideas and assumptions. But then, that’s
the value of the process. So make
time to do the job properly. Those who do never regret the
effort. And finally, be sure to keep
detailed notes on your sources of information and on the
assumptions underlying your financial
data.

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Business Plan
OWNERS
Your Business Name
Street Address
Address 2
City, ST ZIP Code
Telephone
Fax
E-Mail
Page 3 of 29
...............................................................................................
... 3
..............................................................................................
4
............................................................................... 5

........................................................................................... 6
V. Marketing Plan
...............................................................................................
....... 7
...............................................................................................
... 15
........................................................................... 20
.............................................................................. 21
................................................................... 22
X. Financial Plan
...............................................................................................
....... 23
XI. Appendices
............................................................................................ ...
.......... 26
...............................................................................................
.. 27
Page 4 of 29

Write this section last.
We suggest that you make it two pages or fewer.
Include everything that you would cover in a five-minute
interview.
Explain the fundamentals of the proposed business: What will
your product be? Who will your
customers be? Who are the owners? What do you think the
future holds for your business and
your industry?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want,
precisely how you are going to use it,
and how the money will make your business more profitable,
thereby ensuring repayment.
Page 5 of 29
What business will you be in? What will you do?
Mission Statement: Many companies have a brief mission
statement, usually in 30 words or

fewer, explaining their reason for being and their guiding
principles. If you want to draft a
mission statement, this is a good place to put it in the plan,
followed by:
Company Goals and Objectives: Goals are destinations—where
you want your business to be.
Objectives are progress markers along the way to goal
achievement. For example, a goal might
be to have a healthy, successful company that is a leader in
customer service and that has a
loyal customer following. Objectives might be annual sales
targets and some specific measures
of customer satisfaction.
Business Philosophy: What is important to you in business?
To whom will you market your products? (State it briefly here—
you will do a more thorough
explanation in the Marketing Plan section).
Describe your industry. Is it a growth industry? What changes
do you foresee in the industry,
short term and long term? How will your company be poised to
take advantage of them?
Describe your most important company strengths and core
competencies. What factors will

make the company succeed? What do you think your major
competitive strengths will be? What
background experience, skills, and strengths do you personally
bring to this new venture?
Legal form of ownership: Sole proprietor, Partnership,
Corporation, Limited liability corporation
(LLC)? Why have you selected this form?
Page 6 of 29
Describe in depth your products or services (technical
specifications, drawings, photos, sales
brochures, and other bulky items belong in Appendices).
What factors will give you competitive advantages or
disadvantages? Examples include level of
quality or unique or proprietary features.
What are the pricing, fee, or leasing structures of your products
or services?
Page 7 of 29
V. Marketing Plan

Market research - Why?
No matter how good your product and your service, the venture
cannot succeed without
effective marketing. And this begins with careful, systematic
research. It is very dangerous to
assume that you already know about your intended market. You
need to do market research to
make sure you’re on track. Use the business planning process as
your opportunity to uncover
data and to question your marketing efforts. Your time will be
well spent.
Market research - How?
There are two kinds of market research: primary and secondary.
Secondary research means using published information such as
industry profiles, trade
journals, newspapers, magazines, census data, and demographic
profiles. This type of
information is available in public libraries, industry
associations, chambers of commerce, from
vendors who sell to your industry, and from government
agencies.
Start with your local library. Most librarians are pleased to
guide you through their business data
collection. You will be amazed at what is there. There are more

online sources than you could
possibly use. Your chamber of commerce has good information
on the local area. Trade
associations and trade publications often have excellent
industry-specific data.
Primary research means gathering your own data. For example,
you could do your own traffic
count at a proposed location, use the yellow pages to identify
competitors, and do surveys or
focus-group interviews to learn about consumer preferences.
Professional market research can
be very costly, but there are many books that show small
business owners how to do effective
research themselves.
In your marketing plan, be as specific as possible; give
statistics, numbers, and sources. The
marketing plan will be the basis, later on, of the all-important
sales projection.
Economics
Facts about your industry:
Page 8 of 29

important only if you think you
will be a major factor in the market.)
—growth trends, trends in consumer
preferences, and trends in
product development.
with your new company?
Some typical barriers are:
o High capital costs
o High production costs
o High marketing costs
o Consumer acceptance and brand recognition
o Training and skills
o Unique technology and patents
o Unions
o Shipping costs
o Tariff barriers and quotas
o Change in technology
o Change in government regulations
o Change in the economy
o Change in your industry

Product
In the Products and Services section, you described your
products and services as you see them.
Now describe them from your customers’ point of view.
Features and Benefits
List all of your major products or services.
For each product or service:
it?
the customer?
Page 9 of 29
Note the difference between features and benefits, and think
about them. For example, a house
that gives shelter and lasts a long time is made with certain
materials and to a certain design;
those are its features. Its benefits include pride of ownership,
financial security, providing for the
family, and inclusion in a neighborhood. You build features into
your product so that you can sell
the benefits.

What after-sale services will you give? Some examples are
delivery, warranty, service
contracts, support, follow-up, and refund policy.
Customers
Identify your targeted customers, their characteristics, and their
geographic locations, otherwise
known as their demographics.
The description will be completely different depending on
whether you plan to sell to other
businesses or directly to consumers. If you sell a consumer
product, but sell it through a
channel of distributors, wholesalers, and retailers, you must
carefully analyze both the end
consumer and the middleman businesses to which you sell.
You may have more than one customer group. Identify the most
important groups. Then, for
each customer group, construct what is called a demographic
profile:

fic to your industry)
For business customers, the demographic factors might be:
Page 10 of 29
Competition
What products and companies will compete with you?
List your major competitors:
(Names and addresses)
Will they compete with you across the board, or just for certain
products, certain customers, or

in certain locations?
Will you have important indirect competitors? (For example,
video rental stores compete with
theaters, although they are different types of businesses.)
How will your products or services compare with the
competition?
Use the Competitive Analysis table below to compare your
company with your two most
important competitors. In the first column are key competitive
factors. Since these vary from one
industry to another, you may want to customize the list of
factors.
In the column labeled Me, state how you honestly think you will
stack up in customers' minds.
Then check whether you think this factor will be a strength or a
weakness for you. Sometimes it
is hard to analyze our own weaknesses. Try to be very honest
here. Better yet, get some
disinterested strangers to assess you. This can be a real eye-
opener. And remember that you
cannot be all things to all people. In fact, trying to be causes
many business failures because
efforts become scattered and diluted. You want an honest
assessment of your firm's strong and

weak points.
Now analyze each major competitor. In a few words, state how
you think they compare.
In the final column, estimate the importance of each
competitive factor to the customer. 1 =
critical; 5 = not very important.
Page 11 of 29
Table 1: Competitive Analysis
FACTOR Me Strength Weakness
Competitor
A
Competitor
B
Importance
to Customer
Products
Price
Quality
Selection
Service

Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Sales
Method
Credit
Policies
Advertising
Image
Now, write a short paragraph stating your competitive
advantages and disadvantages.
Niche
Now that you have systematically analyzed your industry, your
product, your customers, and the
competition, you should have a clear picture of where your

company fits into the world.
Page 12 of 29
In one short paragraph, define your niche, your unique corner of
the market.
Strategy
Now outline a marketing strategy that is consistent with your
niche.
Promotion
How will you get the word out to customers?
Advertising: What media, why, and how often? Why this mix
and not some other?
Have you identified low-cost methods to get the most out of
your promotional budget?
Will you use methods other than paid advertising, such as trade
shows, catalogs, dealer
incentives, word of mouth (how will you stimulate it?), and
network of friends or professionals?
What image do you want to project? How do you want
customers to see you?
In addition to advertising, what plans do you have for graphic
image support? This includes
things like logo design, cards and letterhead, brochures,

signage, and interior design (if
customers come to your place of business).
Should you have a system to identify repeat customers and then
systematically contact them?
Promotional Budget
How much will you spend on the items listed above?
Before startup? (These numbers will go into your startup
budget.)
Ongoing? (These numbers will go into your operating plan
budget.)
Pricing
Explain your method or methods of setting prices. For most
small businesses, having the lowest
price is not a good policy. It robs you of needed profit margin;
customers may not care as much
about price as you think; and large competitors can under price
you anyway. Usually you will do
better to have average prices and compete on quality and
service.
Does your pricing strategy fit with what was revealed in your
competitive analysis?
Compare your prices with those of the competition. Are they
higher, lower, the same? Why?

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How important is price as a competitive factor? Do your
intended customers really make their
purchase decisions mostly on price?
What will be your customer service and credit policies?
Proposed Location
Probably you do not have a precise location picked out yet. This
is the time to think about what
you want and need in a location. Many startups run successfully
from home for a while.
You will describe your physical needs later, in the Operational
Plan section. Here, analyze your
location criteria as they will affect your customers.
Is your location important to your customers? If yes, how?
If customers come to your place of business:
Is it convenient? Parking? Interior spaces? Not out of the way?
Is it consistent with your image?
Is it what customers want and expect?
Where is the competition located? Is it better for you to be near

them (like car dealers or fast-
food restaurants) or distant (like convenience-food stores)?
Distribution Channels
How do you sell your products or services?
Retail
Direct (mail order, Web, catalog)
Wholesale
Your own sales force
Agents
Independent representatives
Bid on contracts
Page 14 of 29
Sales Forecast
Now that you have described your products, services,
customers, markets, and marketing plans
in detail, it’s time to attach some numbers to your plan. Use a
sales forecast spreadsheet to
prepare a month-by-month projection. The forecast should be
based on your historical sales,

the marketing strategies that you have just described, your
market research, and industry data,
if available.
You may want to do two forecasts: 1) a "best guess", which is
what you really expect, and 2) a
"worst case" low estimate that you are confident you can reach
no matter what happens.
Remember to keep notes on your research and your assumptions
as you build this sales
forecast and all subsequent spreadsheets in the plan. This is
critical if you are going to present
it to funding sources.
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Explain the daily operation of the business, its location,
equipment, people, processes, and
surrounding environment.
Production
How and where are your products or services produced?
Explain your methods of:

ce
Location
What qualities do you need in a location? Describe the type of
location you’ll have.
Physical requirements:
Access:
Is it important that your location be convenient to transportation
or to suppliers?
Do you need easy walk-in access?
What are your requirements for parking and proximity to
freeway, airports, railroads, and
shipping centers?

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Include a drawing or layout of your proposed facility if it is
important, as it might be for a
manufacturer.
Construction? Most new companies should not sink capital into
construction, but if you are
planning to build, costs and specifications will be a big part of
your plan.
Cost: Estimate your occupation expenses, including rent, but
also including maintenance,
utilities, insurance, and initial remodeling costs to make the
space suit your needs. These
numbers will become part of your financial plan.
What will be your business hours?
Legal Environment
Describe the following:

purchased)
Personnel
find the right employees?
Page 17 of 29
employees? If not, take
time to write some. They
really help internal communications with employees.
addition to employees?
Inventory

supplies, finished goods?
investment)?
averages?
-time for ordering?
Suppliers
Identify key suppliers:
ames and addresses
Should you have more than one supplier for critical items (as a
backup)?
Do you expect shortages or short-term delivery problems?
Are supply costs steady or fluctuating? If fluctuating, how
would you deal with changing costs?
Credit Policies
industry and expected by

your clientele?
how much?
Page 18 of 29
credit and when is payment
due?
if it is usual and customary
in your industry.)
built the costs into your
prices?
Managing Your Accounts Receivable
If you do extend credit, you should do an aging at least monthly
to track how much of your
money is tied up in credit given to customers and to alert you to
slow payment problems. A
receivables aging looks like the following table:
Total Current 30 Days 60 Days 90 Days
Over 90

Days
Accounts
Receivable
Aging
You will need a policy for dealing with slow-paying customers:
Managing Your Accounts Payable
You should also age your accounts payable, what you owe to
your suppliers. This helps you
plan whom to pay and when. Paying too early depletes your
cash, but paying late can cost you
valuable discounts and can damage your credit. (Hint: If you
know you will be late making a
payment, call the creditor before the due date.)
Do your proposed vendors offer prompt payment discounts?
A payables aging looks like the following table.
Total Current 30 Days 60 Days 90 Days
Over 90

Days
Accounts
Payable
Page 19 of 29
Aging
Page 20 of 29
Who will manage the business on a day-to-day basis? What
experience does that person bring
to the business? What special or distinctive competencies? Is
there a plan for continuation of
the business if this person is lost or incapacitated?
If you’ll have more than 10 employees, create an organizational
chart showing the management
hierarchy and who is responsible for key functions.
Include position descriptions for key employees. If you are

seeking loans or investors, include
resumes of owners and key employees.
Professional and Advisory Support
List the following:
Page 21 of 29
Include personal financial statements for each owner and major
stockholder, showing assets
and liabilities held outside the business and personal net worth.
Owners will often have to draw
on personal assets to finance the business, and these statements

will show what is available.
Bankers and investors usually want this information as well.
Page 22 of 29
You will have many expenses before you even begin operating
your business. It’s important to
estimate these expenses accurately and then to plan where you
will get sufficient capital. This is
a research project, and the more thorough your research efforts,
the less chance that you will
leave out important expenses or underestimate them.
Even with the best of research, however, opening a new
business has a way of costing more
than you anticipate. There are two ways to make allowances for
surprise expenses. The first is
to add a little “padding” to each item in the budget. The
problem with that approach, however, is
that it destroys the accuracy of your carefully wrought plan. The
second approach is to add a
separate line item, called contingencies, to account for the
unforeseeable. This is the approach

we recommend.
Talk to others who have started similar businesses to get a good
idea of how much to allow for
contingencies. If you cannot get good information, we
recommend a rule of thumb that
contingencies should equal at least 20 percent of the total of all
other start-up expenses.
Explain your research and how you arrived at your forecasts of
expenses. Give sources,
amounts, and terms of proposed loans. Also explain in detail
how much will be contributed by
each investor and what percent ownership each will have.
Page 23 of 29
X. Financial Plan
The financial plan consists of a 12-month profit and loss
projection, a four-year profit and loss
projection (optional), a cash-flow projection, a projected
balance sheet, and a break-even
calculation. Together they constitute a reasonable estimate of
your company's financial future.
More important, the process of thinking through the financial
plan will improve your insight into

the inner financial workings of your company.
12-Month Profit and Loss Projection
Many business owners think of the 12-month profit and loss
projection as the centerpiece of
their plan. This is where you put it all together in numbers and
get an idea of what it will take to
make a profit and be successful.
Your sales projections will come from a sales forecast in which
you forecast sales, cost of goods
sold, expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative
explaining the major assumptions used
to estimate company income and expenses.
Research Notes: Keep careful notes on your research and
assumptions, so that you can explain
them later if necessary, and also so that you can go back to your
sources when it’s time to
revise your plan.
Four-Year Profit Projection (Optional)
The 12-month projection is the heart of your financial plan.
This section is for those who want to
carry their forecasts beyond the first year.

Of course, keep notes of your key assumptions, especially about
things that you expect will
change dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash
flow is the blood. Businesses fail
because they cannot pay their bills. Every part of your business
plan is important, but none of it
means a thing if you run out of cash.
Page 24 of 29
The point of this worksheet is to plan how much you need
before startup, for preliminary
expenses, operating expenses, and reserves. You should keep
updating it and using it
afterward. It will enable you to foresee shortages in time to do
something about them—perhaps
cut expenses, or perhaps negotiate a loan. But foremost, you
shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash-flow projection
is just a forward look at your
checking account.
For each item, determine when you actually expect to receive

cash (for sales) or when you will
actually have to write a check (for expense items).
You should track essential operating data, which is not
necessarily part of cash flow but allows
you to track items that have a heavy impact on cash flow, such
as sales and inventory
purchases.
You should also track cash outlays prior to opening in a pre-
startup column. You should have
already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is
adequate. Clearly, if your projected
cash balance ever goes negative, you will need more start-up
capital. This plan will also predict
just when and how much you will need to borrow.
Explain your major assumptions, especially those that make the
cash flow differ from the Profit
and Loss Projection. For example, if you make a sale in month
one, when do you actually collect
the cash? When you buy inventory or materials, do you pay in
advance, upon delivery, or much
later? How will this affect cash flow?

Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments,
maintenance and repairs, or
seasonal inventory buildup, that should be budgeted?
Loan payments, equipment purchases, and owner's draws
usually do not show on profit and
loss statements but definitely do take cash out. Be sure to
include them.
And of course, depreciation does not appear in the cash flow at
all because you never write a
check for it.
Page 25 of 29
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that
any business needs for
reporting and financial management. A balance sheet shows
what items of value are held by
the company (assets), and what its debts are (liabilities). When
liabilities are subtracted from
assets, the remainder is owners’ equity.
Use a startup expenses and capitalization spreadsheet as a guide
to preparing a balance sheet

as of opening day. Then detail how you calculated the account
balances on your opening day
balance sheet.
Optional: Some people want to add a projected balance sheet
showing the estimated financial
position of the company at the end of the first year. This is
especially useful when selling your
proposal to investors.
Break-Even Analysis
A break-even analysis predicts the sales volume, at a given
price, required to recover total
costs. In other words, it’s the sales level that is the dividing line
between operating at a loss and
operating at a profit.
Expressed as a formula, break-even is:
Breakeven Sales = Fixed Costs
1- Variable Costs
(Where fixed costs are expressed in dollars, but variable costs
are expressed as a percent of
total sales.)

Include all assumptions upon which your break-even calculation
is based.
Page 26 of 29
XI. Appendices
Include details and studies used in your business plan; for
example:
other articles
plan
ist of assets available as collateral for a loan

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The generic business plan presented above should be modified
to suit your specific type of
business and the audience for which the plan is written.
For Raising Capital
For Bankers
using this plan to present to
lenders, include:
o Amount of loan
o How the funds will be used
o What this will accomplish—how will it make the business
stronger?
o Requested repayment terms (number of years to repay). You
will probably not
have much negotiating room on interest rate but may be able to
negotiate a
longer repayment term, which will help cash flow.
o Collateral offered, and a list of all existing liens against
collateral
For Investors

dramatic growth, and they
expect to share in the rewards:
o Funds needed short-term
o Funds needed in two to five years
o How the company will use the funds, and what this will
accomplish for growth.
o Estimated return on investment
o Exit strategy for investors (buyback, sale, or IPO)
o Percent of ownership that you will give up to investors
o Milestones or conditions that you will accept
o Financial reporting to be provided
o Involvement of investors on the board or in management
For Type of Business
Manufacturing
(overhead) costs—how do
these compare to industry averages (if available)?
Page 28 of 29

rchasing and inventory management procedures
online after startup
Service Businesses
more flexible than other
types of businesses, but they also have higher labor costs and
generally very little in
fixed assets.
. Standard or accepted industry
quality standards.
a profit on subcontracting?
ategy for keeping client base
High Technology Companies

manage rapidly changing prices,
costs, and markets?
ducts and
services?
required to:
o Bring product/service to market?
o Keep the company competitive?
Page 29 of 29
o Protect intellectual property?
o Avoid technological obsolescence?
o Supply necessary capital?
o Retain key personnel?
High-tech companies sometimes have to operate for a long time
without profits and sometimes
even without sales. If this fits your situation, a banker probably
will not want to lend to you.
Venture capitalists may invest, but your story must be very
good. You must do longer-term
financial forecasts to show when profit take-off is expected to
occur. And your assumptions

must be well documented and well argued.
Retail Business
o Explain markup policies.
o Prices should be profitable, competitive, and in accordance
with company image.
o Selection and price should be consistent with company image.
o Inventory level: Find industry average numbers for annual
inventory turnover rate
(available in RMA book). Multiply your initial inventory
investment by the average
turnover rate. The result should be at least equal to your
projected first year's
cost of goods sold. If it is not, you may not have enough
budgeted for startup
inventory.
in accord with company
image.
convenient for customers? Is it
consistent with company image?

company image?
really need to, and do you
factor the cost into prices?
1
Executive Summary
Introduction
Jolly's Java and Bakery (JJB) is a start-up coffee and bakery
retail establishment located
in southwest Washington. JJB expects to catch the interest of a
regular loyal customer
base with its broad variety of coffee and pastry products. The
company plans to build a
strong market position in the town, due to the partners' industry
experience and mild
competitive climate in the area.
JJB aims to offer its products at a competitive price to meet the
demand of the middle-to
higher-income local market area residents and tourists.
The Company

JJB is incorporated in the state of Washington. It is equally
owned and managed by its
two partners.
Mr. Austin Patterson has extensive experience in sales,
marketing, and management, and
was vice president of marketing with both Jansonne & Jansonne
and Burper Foods. Mr.
David Fields brings experience in the area of finance and
administration, including a stint
as chief financial officer with both Flaxfield Roasters and the
national coffee store chain,
BuzzCups.
The company intends to hire two full-time pastry bakers and six
part-time baristas to
handle customer service and day to day operations.
Products and Services
JJB offers a broad range of coffee and espresso products, all
from high quality
Columbian grown imported coffee beans. JJB caters to all of its
customers by providing
each customer coffee and espresso products made to suit the
customer, down to the
smallest detail.

The bakery provides freshly prepared bakery and pastry
products at all times during
business operations. Six to eight moderate batches of bakery
and pastry products are
prepared during the day to assure fresh baked goods are always
available.
2
The Market
The retail coffee industry in the U.S. has recently experienced
rapid growth. The cool
marine climate in southwest Washington stimulates
consumption of hot beverages
throughout the year.
JJB wants to establish a large regular customer base, and will
therefore concentrate its
business and marketing on local residents, which will be the
dominant target market. This
will establish a healthy, consistent revenue base to ensure
stability of the business. In
addition, tourist traffic is expected to comprise approximately
35% of the revenues. High

visibility and competitive products and service are critical to
capture this segment of the
market.
Financial Considerations
JJB expects to raise $110,000 of its own capital, and to borrow
$100,000 guaranteed by
the SBA as a ten-year loan. This provides the bulk of the
current financing required.
JJB anticipates sales of about $491,000 in the first year,
$567,000 in the second year, and
$655,000 in the third year of the plan. JJB should break even by
the fourth month of its
operation as it steadily increases its sales. Profits for this time
period are expected to be
approximately $13,000 in year 1, $36,000 by year 2, and
$46,000 by year 3. The
company does not anticipate any cash flow problems.
3
1.1 Mission

JJB aims to offer high quality coffee, espresso, and pastry
products at a competitive price
to meet the demand of the middle- to higher-income local
market area residents and
tourists.
1.2 Keys to Success
Keys to success for JJB will include:
1. Providing the highest quality product with personal customer
service.
2. Competitive pricing.
Company Summary
JJB is a bakery and coffee shop managed by two partners. These
partners represent
sales/management and finance/administration areas,
respectively. The partners will
provide funding from their own savings, which will cover start-
up expenses and provide a
financial cushion for the first months of operation. A ten-year
Small Business
Administration (SBA) loan will cover the rest of the required
financing. The company
plans to build a strong market position in the town, due to the
partners' industry

experience and mild competitive climate in the area.
2.1 Company Ownership
JJB is incorporated in the state of Washington. It is equally
owned by its two partners.
2.2 Start-up Summary
JJB is a start-up company. Financing will come from the
partners' capital and a ten-year
SBA loan. The following chart and table illustrate the
company's projected initial start-up
costs.
4
START-UP REQUIREMENTS
Start-up Expenses
Legal $3,000
Premise renovation $20,000
Expensed equipment $40,000
Other $1,000

TOTAL START-UP EXPENSES $64,000
Start-up Assets
Cash Required $70,000
Other Current Assets $12,000
Long-term Assets $65,000
TOTAL ASSETS $147,000
Total Requirements $211,000
START-UP FUNDING
Start-up Expenses to Fund $64,000
Start-up Assets to Fund $147,000
TOTAL FUNDING REQUIRED $211,000
5
Assets
Non-cash Assets from Start-up $77,000
Cash Requirements from Start-up $70,000

Additional Cash Raised $0
Cash Balance on Starting Date $70,000
TOTAL ASSETS $147,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $1,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $101,000
Capital
Planned Investment
Patterson $55,000
Fields $55,000
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $110,000

6
Loss at Start-up (Start-up Expenses) ($64,000)
TOTAL CAPITAL $46,000
TOTAL CAPITAL AND LIABILITIES $147,000
Total Funding $211,000
Products
JJB offers a broad range of coffee and espresso products, all
from high quality
Columbian grown imported coffee beans. JJB caters to all of its
customers by providing
each customer coffee and espresso products made to suit the
customer, down to the
smallest detail.
The bakery provides freshly prepared bakery and pastry
products at all times during
business operations. Six to eight moderate batches of bakery
and pastry products are
prepared during the day to assure fresh baked goods are always
available.
Market Analysis Summary
JJB's focus is on meeting the demand of a regular local resident
customer base, as well as
a significant level of tourist traffic from nearby highways.
4.1 Market Segmentation

JJB focuses on the middle- and upper-income markets. These
market segments consume
the majority of coffee and espresso products.
Local Residents
JJB wants to establish a large regular customer base. This will
establish a healthy,
consistent revenue base to ensure stability of the business.
7
Tourists
Tourist traffic comprises approximately 35% of the revenues.
High visibility and
competitive products and service are critical to capture this
segment of the market.
4.1.1 Market Analysis
The chart and table below outline the total market potential of
the above described
customer segments.
4.2 Target Market Segment Strategy
The dominant target market for JJB is a regular stream of local
residents. Personal and

expedient customer service at a competitive price is key to
maintaining the local market
share of this target market.
4.2.1 Market Needs
Because Washington has a cool climate for eight months out of
the year, hot coffee
products are very much in demand. During the remaining
warmer four months of the
year, iced coffee products are in significantly high demand,
along with a slower but
consistent demand for hot coffee products. Much of the day's
activity occurs in the
morning hours before ten a.m., with a relatively steady flow for
the remainder of the day.
4.3 Service Business Analysis
The retail coffee industry in the U.S. has recently experienced
rapid growth. The cool
marine climate in southwest Washington stimulates
consumption of hot beverages
throughout the year. Coffee drinkers in the Pacific Northwest
are finicky about the
quality of beverages offered at the numerous coffee bars across
the region. Despite low

competition in the immediate area, JJB will position itself as a
place where customers can
enjoy a cup of delicious coffee with a fresh pastry in a relaxing
environment.
4.3.1 Competition and Buying Patterns
Competition in the local area is somewhat sparse and does not
provide nearly the level of
product quality and customer service as JJB. Local customers
are looking for a high
quality product in a relaxing atmosphere. They desire a unique,
classy experience.
8
Leading competitors purchase and roast high quality, whole-
bean coffees and, along with
Italian-style espresso beverages, cold-blended beverages, a
variety of pastries and
confections, coffee-related accessories and equipment, and a
line of premium teas, sell
these items primarily through company-operated retail stores. In
addition to sales through
company-operated retail stores, leading competitors sell coffee

and tea products through
other channels of distribution (specialty operations).
Larger chains vary their product mix depending upon the size of
each store and its
location. Larger stores carry a broad selection of whole bean
coffees in various sizes and
types of packaging, as well as an assortment of coffee- and
espresso-making equipment
and accessories such as coffee grinders, coffee makers, espresso
machines, coffee filters,
storage containers, travel tumblers and mugs. Smaller stores and
kiosks typically sell a
full line of coffee beverages, a more limited selection of whole-
bean coffees, and a few
accessories such as travel tumblers and logo mugs. During
fiscal year 2000,
industry retail sales mix by product type was approximately
73% beverages, 14% food
items, eight percent whole-bean coffees, and five percent
coffee-making equipment and
accessories.
Technologically savvy competitors make fresh coffee and
coffee-related products

conveniently available via mail order and online. Additionally,
mail order
catalogs offering coffees, certain food items, and select coffee-
making equipment and
accessories, have been made available by a few larger
competitors. Websites offering
online stores that allow customers to browse for and purchase
coffee, gifts, and other
items via the Internet have become more commonplace as well.
Strategy and Implementation Summary
JJB will succeed by offering consumers high quality coffee,
espresso, and bakery
products with personal service at a competitive price.
5.1 Competitive Edge
JJB's competitive edge is the relatively low level of competition
in the local area in this
particular niche.
5.2 Sales Strategy
As the chart and table show, JJB anticipates sales of about
$491,000 in the first year,
$567,000 in the second year, and $655,000 in the third year of
the plan.

9
10
SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Unit Sales
Espresso Drinks 135,000 148,500 163,350
Pastry Items 86,000 94,600 104,060
Other 0 0 0
TOTAL UNIT SALES 221,000 243,100 267,410
Unit Prices Year 1 Year 2 Year 3
Espresso Drinks $3.00 $3.15 $3.31
Pastry Items $1.00 $1.05 $1.10

Other $0.00 $0.00 $0.00
Sales
Espresso Drinks $405,000 $467,775 $540,280
Pastry Items $86,000 $99,330 $114,726
Other $0 $0 $0
TOTAL SALES $491,000 $567,105 $655,006
Direct Unit Costs Year 1 Year 2 Year 3
Espresso Drinks $0.25 $0.26 $0.28
Pastry Items $0.50 $0.53 $0.55
Other $0.00 $0.00 $0.00
11
Direct Cost of Sales
Espresso Drinks $33,750 $38,981 $45,023
Pastry Items $43,000 $49,665 $57,363
Other $0 $0 $0
Subtotal Direct Cost of Sales $76,750 $88,646 $102,386

Management Summary
Austin Patterson has extensive experience in sales, marketing,
and management, and was
vice president of marketing with both Jansonne & Jansonne and
Burper
Foods. David Fields brings experience in the area of finance and
administration,
including a stint as chief financial officer with both Flaxfield
Roasters and the national
coffee store chain, BuzzCups.
6.1 Personnel Plan
As the personnel plan shows, JJB expects to make significant
investments in sales, sales
support, and product development personnel.
PERSONNEL PLAN
Managers $100,000 $105,000 $110,250
Pastry Bakers $40,800 $42,840 $44,982
Baristas $120,000 $126,000 $132,300
Other $0 $0 $0
TOTAL PEOPLE 10 10 10

Total Payroll $260,800 $273,840 $287,532
12
Financial Plan
JJB expects to raise $110,000 of its own capital, and to borrow
$100,000 guaranteed
by the SBA as a ten-year loan. This provides the bulk of the
current financing required.
7.1 Break-even Analysis
JJB's 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. JJB should break even by the fourth month of its
operation as it
steadily increases its sales.

13
BREAK-EVEN ANALYSIS
Monthly Units Break-even 17,255
Monthly Revenue Break-even $38,336
Assumptions:
Average Per-Unit Revenue $2.22
Average Per-Unit Variable Cost $0.35
Estimated Monthly Fixed Cost $32,343
7.2 Projected Profit and Loss
As the Profit and Loss table shows, JJB expects to continue its
steady growth
in profitability over the next three years of operations.
PRO FORMA PROFIT AND LOSS
Sales $491,000 $567,105 $655,006

Direct Cost of Sales $76,750 $88,646 $102,386
Other $0 $0 $0
TOTAL COST OF SALES $76,750 $88,646 $102,386
Gross Margin $414,250 $478,459 $552,620
Gross Margin % 84.37% 84.37% 84.37%
Expenses
Payroll $260,800 $273,840 $287,532
14
Sales and Marketing and Other
Expenses
$27,000 $35,200 $71,460
Depreciation $60,000 $69,000 $79,350
Utilities $1,200 $1,260 $1,323
Payroll Taxes $39,120 $41,076 $43,130
Other $0 $0 $0
Total Operating Expenses $388,120 $420,376 $482,795
Profit Before Interest and Taxes $26,130 $58,083 $69,825

EBITDA $86,130 $127,083 $149,175
Interest Expense $10,000 $9,500 $8,250
Taxes Incurred $3,111 $12,146 $15,650
Net Profit $13,019 $36,437 $45,925
Net Profit/Sales 2.65% 6.43% 7.01%
7.3 Projected Cash Flow
The cash flow projection shows that provisions for ongoing
expenses are adequate to
meet JJB's needs as the business generates cash flow sufficient
to support operations.
15
PRO FORMA CASH FLOW
Cash Received
Cash from Operations

Cash Sales $491,000 $567,105 $655,006
SUBTOTAL CASH FROM OPERATIONS $491,000 $567,105
$655,006
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 $491,000 $567,105 $655,006
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $260,800 $273,840 $287,532
Bill Payments $143,607 $186,964 $237,731
SUBTOTAL SPENT ON OPERATIONS $404,407 $460,804
$525,263

16
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 $10,000 $15,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $20,000 $20,000
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $404,407 $490,804 $560,263
Net Cash Flow $86,593 $76,301 $94,744
Cash Balance $156,593 $232,894 $327,637
7.4 Balance Sheet
The following is a projected Balance Sheet for JJB.
PRO FORMA BALANCE SHEET
Assets

Current Assets
Cash $156,593 $232,894 $327,637
Other Current Assets $12,000 $12,000 $12,000
17
TOTAL CURRENT ASSETS $168,593 $244,894 $339,637
Long-term Assets
Long-term Assets $65,000 $85,000 $105,000
Accumulated Depreciation $60,000 $129,000 $208,350
TOTAL LONG-TERM ASSETS $5,000 ($44,000) ($103,350)
TOTAL ASSETS $173,593 $200,894 $236,287
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $14,574 $15,438 $19,907
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $14,574 $15,438 $19,907
Long-term Liabilities $100,000 $90,000 $75,000

TOTAL LIABILITIES $114,574 $105,438 $94,907
Paid-in Capital $110,000 $110,000 $110,000
Retained Earnings ($64,000) ($50,981) ($14,544)
Earnings $13,019 $36,437 $45,925
TOTAL CAPITAL $59,019 $95,456 $141,381
TOTAL LIABILITIES AND CAPITAL $173,593 $200,894
$236,287
Net Worth $59,019 $95,456 $141,381
18
7.5 Business Ratios
The following table represents key ratios for the retail bakery
and coffee shop industry.
These ratios are determined by the Standard Industry
Classification (SIC) Index code
5812, Eating Places.
RATIO ANALYSIS
YEAR 1 YEAR 2 YEAR 3 INDUSTRY
PROFILE

Sales Growth 0.00% 15.50% 15.50% 7.60%
Percent of Total Assets
Other Current Assets 6.91% 5.97% 5.08% 35.60%
Total Current Assets 97.12% 121.90% 143.74% 43.70%
Long-term Assets 2.88% -21.90% -43.74% 56.30%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 8.40% 7.68% 8.42% 32.70%
Long-term Liabilities 57.61% 44.80% 31.74% 28.50%
Total Liabilities 66.00% 52.48% 40.17% 61.20%
NET WORTH 34.00% 47.52% 59.83% 38.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.37% 84.37% 84.37% 60.50%
Selling, General & Administrative
Expenses
74.74% 71.43% 71.39% 39.80%
19

Advertising Expenses 0.49% 1.76% 6.87% 3.20%
Profit Before Interest and Taxes 5.32% 10.24% 10.66% 0.70%
Main Ratios
Current 11.57 15.86 17.06 0.98
Quick 11.57 15.86 17.06 0.65
Total Debt to Total Assets 66.00% 52.48% 40.17% 61.20%
Pre-tax Return on Net Worth 27.33% 50.90% 43.55% 1.70%
Pre-tax Return on Assets 9.29% 24.18% 26.06% 4.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 2.65% 6.43% 7.01% n.a
Return on Equity 22.06% 38.17% 32.48% n.a
Activity Ratios
Accounts Payable Turnover 10.79 12.17 12.17 n.a
Payment Days 27 29 27 n.a
Total Asset Turnover 2.83 2.82 2.77 n.a
Debt Ratios
Debt to Net Worth 1.94 1.10 0.67 n.a
Current Liab. to Liab. 0.13 0.15 0.21 n.a

Liquidity Ratios
Net Working Capital $154,019 $229,456 $319,731 n.a
20
Interest Coverage 2.61 6.11 8.46 n.a
Additional Ratios
Assets to Sales 0.35 0.35 0.36 n.a
Current Debt/Total Assets 8% 8% 8% n.a
Acid Test 11.57 15.86 17.06 n.a
Sales/Net Worth 8.32 5.94 4.63 n.a
Dividend Payout 0.00 0.00 0.00 n.a
21
Appendix
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
Unit Sales
Espresso
Drinks
0% 5,000 7,500 10,000 12,500 12,500 12,500 12,500 12,500
12,500 12,500 12,500 12,500
Pastry Items 0% 2,000 3,000 6,000 8,333 8,333 8,333 8,333
8,333 8,333 8,333 8,333 8,333
Other 0% 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL
UNIT
SALES
7,000 10,500 16,000 20,833 20,833 20,833 20,833 20,833
20,833 20,833 20,833 20,833
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month

6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Espresso
Drinks
$3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
$3.00 $3.00
Pastry Items $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
$1.00 $1.00 $1.00 $1.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00
Sales
Espresso
Drinks
$15,000 $22,500 $30,000 $37,500 $37,500 $37,500 $37,500
$37,500 $37,500 $37,500 $37,500 $37,500
Pastry Items $2,000 $3,000 $6,000 $8,333 $8,333 $8,333
$8,333 $8,333 $8,333 $8,333 $8,333 $8,333
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL
SALES
$17,000 $25,500 $36,000 $45,833 $45,833 $45,833 $45,833
$45,833 $45,833 $45,833 $45,833 $45,833
Direct Unit

Costs
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Month 8 Month 9 Month 10 Month 11 Month 12
22
Espresso
Drinks
0.00% $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25
$0.25 $0.25 $0.25
Pastry Items 0.00% $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
$0.50 $0.50 $0.50 $0.50 $0.50
Other 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00
Direct Cost
of Sales
Espresso
Drinks
$1,250 $1,875 $2,500 $3,125 $3,125 $3,125 $3,125 $3,125
$3,125 $3,125 $3,125 $3,125
Pastry Items $1,000 $1,500 $3,000 $4,167 $4,167 $4,167

$4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
Direct Cost
of Sales
$2,250 $3,375 $5,500 $7,292 $7,292 $7,292 $7,292 $7,292
$7,292 $7,292 $7,292 $7,292
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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
Managers 0% $8,333 $8,333 $8,333 $8,333 $8,333 $8,333
$8,333 $8,333 $8,333 $8,333 $8,333 $8,333

Pastry Bakers 0% $3,400 $3,400 $3,400 $3,400 $3,400 $3,400
$3,400 $3,400 $3,400 $3,400 $3,400 $3,400
Baristas 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL
PEOPLE
10 10 10 10 10 10 10 10 10 10 10 10
Total Payroll $21,733 $21,733 $21,733 $21,733 $21,733
$21,733 $21,733 $21,733 $21,733 $21,733 $21,733 $21,733
23
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% 25.00% 25.00% 25.00% 25.00% 25.00%
25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
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 $17,000 $25,500 $36,000 $45,833 $45,833 $45,833
$45,833 $45,833 $45,833 $45,833 $45,833 $45,833
Direct Cost of Sales $2,250 $3,375 $5,500 $7,292 $7,292
$7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL COST OF
SALES
$2,250 $3,375 $5,500 $7,292 $7,292 $7,292 $7,292 $7,292
$7,292 $7,292 $7,292 $7,292
Gross Margin $14,750 $22,125 $30,500 $38,542 $38,542
$38,542 $38,542 $38,542 $38,542 $38,542 $38,542 $38,542
Gross Margin % 86.76% 86.76% 84.72% 84.09% 84.09%
84.09% 84.09% 84.09% 84.09% 84.09% 84.09% 84.09%
Expenses
Payroll $21,733 $21,733 $21,733 $21,733 $21,733 $21,733
$21,733 $21,733 $21,733 $21,733 $21,733 $21,733
Sales and Marketing
and Other Expenses
$2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250
$2,250 $2,250 $2,250 $2,250
Depreciation 15% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000
24
Utilities 5% $100 $100 $100 $100 $100 $100 $100 $100 $100

$100 $100 $100
Payroll Taxes 15% $3,260 $3,260 $3,260 $3,260 $3,260 $3,260
$3,260 $3,260 $3,260 $3,260 $3,260 $3,260
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
Expenses
$32,343 $32,343 $32,343 $32,343 $32,343 $32,343 $32,343
$32,343 $32,343 $32,343 $32,343 $32,343
Profit Before Interest
and Taxes
($17,593) ($10,218) ($1,843) $6,198 $6,198 $6,198 $6,198
$6,198 $6,198 $6,198 $6,198 $6,198
EBITDA ($12,593) ($5,218) $3,157 $11,198 $11,198 $11,198
$11,198 $11,198 $11,198 $11,198 $11,198 $11,198
Interest Expense $833 $833 $833 $833 $833 $833 $833 $833
$833 $833 $833 $833
Taxes Incurred ($5,528) ($2,763) ($669) $1,341 $1,341 $1,341
$1,341 $1,341 $1,341 $1,341 $1,341 $1,341
Net Profit ($12,899) ($8,289) ($2,007) $4,024 $4,024 $4,024
$4,024 $4,024 $4,024 $4,024 $4,024 $4,024
Net Profit/Sales -75.87% -32.50% -5.58% 8.78% 8.78% 8.78%
8.78% 8.78% 8.78% 8.78% 8.78% 8.78%

PRO FORMA CASH FLOW
MONTH
1
MONTH
2
MONTH
3
MONTH
4
MONTH
5
MONTH
6
MONTH
7
MONTH
8
MONTH

9
MONTH
10
MONTH
11
MONTH
12
Cash Received
Cash from Operations
Cash Sales $17,000 $25,500 $36,000 $45,833 $45,833 $45,833
$45,833 $45,833 $45,833 $45,833 $45,833 $45,833
SUBTOTAL CASH FROM
OPERATIONS
$17,000 $25,500 $36,000 $45,833 $45,833 $45,833 $45,833
$45,833 $45,833 $45,833 $45,833 $45,833
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
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
(interest-free)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
25
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0
Sales of Other Current
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SUBTOTAL CASH
RECEIVED
$17,000 $25,500 $36,000 $45,833 $45,833 $45,833 $45,833
$45,833 $45,833 $45,833 $45,833 $45,833
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5
Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month
12
Expenditures from

Operations
Cash Spending $21,733 $21,733 $21,733 $21,733 $21,733
$21,733 $21,733 $21,733 $21,733 $21,733 $21,733 $21,733
Bill Payments $1,106 $3,295 $7,196 $11,401 $15,076 $15,076
$15,076 $15,076 $15,076 $15,076 $15,076 $15,076
SUBTOTAL SPENT ON
OPERATIONS
$22,839 $25,028 $28,929 $33,134 $36,810 $36,810 $36,810
$36,810 $36,810 $36,810 $36,810 $36,810
Additional Cash Spent
Sales 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 $0
Other Liabilities Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities
Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SUBTOTAL CASH SPENT $22,839 $25,028 $28,929 $33,134
$36,810 $36,810 $36,810 $36,810 $36,810 $36,810 $36,810
$36,810
Net Cash Flow ($5,839) $472 $7,071 $12,699 $9,024 $9,024
$9,024 $9,024 $9,024 $9,024 $9,024 $9,024
26
Cash Balance $64,161 $64,633 $71,703 $84,403 $93,426
$102,450 $111,474 $120,498 $129,521 $138,545 $147,569
$156,593
PRO FORMA BALANCE SHEET

MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5
MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH
10
MONTH
11
MONTH
12
Assets Starting
Balances
Current
Assets
Cash $70,000 $64,161 $64,633 $71,703 $84,403 $93,426
$102,450 $111,474 $120,498 $129,521 $138,545 $147,569
$156,593
Other Current
Assets
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000
TOTAL

CURRENT
ASSETS
$82,000 $76,161 $76,633 $83,703 $96,403 $105,426 $114,450
$123,474 $132,498 $141,521 $150,545 $159,569 $168,593
Long-term
Assets
Long-term
Assets
$65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
$65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Accumulated
Depreciation
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
$40,000 $45,000 $50,000 $55,000 $60,000
TOTAL
LONG-TERM
ASSETS
$65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000
TOTAL

ASSETS
$147,000 $136,161 $131,633 $133,703 $141,403 $145,426
$149,450 $153,474 $157,498 $161,521 $165,545 $169,569
$173,593
Liabilities and
Capital
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Month 8 Month 9 Month 10 Month 11 Month 12
Current
Liabilities
Accounts
Payable
$1,000 $3,060 $6,820 $10,898 $14,574 $14,574 $14,574
$14,574 $14,574 $14,574 $14,574 $14,574 $14,574
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
27

Liabilities
SUBTOTAL
CURRENT
LIABILITIES
$1,000 $3,060 $6,820 $10,898 $14,574 $14,574 $14,574
$14,574 $14,574 $14,574 $14,574 $14,574 $14,574
Long-term
Liabilities
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$100,000
TOTAL
LIABILITIES
$101,000 $103,060 $106,820 $110,898 $114,574 $114,574
$114,574 $114,574 $114,574 $114,574 $114,574 $114,574
$114,574
Paid-in
Capital
$110,000 $110,000 $110,000 $110,000 $110,000 $110,000
$110,000 $110,000 $110,000 $110,000 $110,000 $110,000
$110,000
Retained

Earnings
($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000)
($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000)
($64,000)
Earnings $0 ($12,899) ($21,187) ($23,195) ($19,171) ($15,147)
($11,124) ($7,100) ($3,076) $948 $4,971 $8,995 $13,019
TOTAL
CAPITAL
$46,000 $33,101 $24,813 $22,805 $26,829 $30,853 $34,876
$38,900 $42,924 $46,948 $50,971 $54,995 $59,019
TOTAL
LIABILITIES
AND
CAPITAL
$147,000 $136,161 $131,633 $133,703 $141,403 $145,426
$149,450 $153,474 $157,498 $161,521 $165,545 $169,569
$173,593
Net Worth $46,000 $33,101 $24,813 $22,805 $26,829 $30,853
$34,876 $38,900 $42,924 $46,948 $50,971 $54,995 $59,019
Services[Company Name]3-Year Profit and Loss

ProjectionINCOME2012% of OI2013% of OI2014% of
OIOperating IncomeCategory 1 - - - Category 2 - - - Category
3 - - - Category 4 - - - Other - - - Total Operating Income
(OI)$ - - $ - - $ - - Non-Operating IncomeInterest
IncomeRental IncomeGifts ReceivedDonationsOtherTotal Non-
Operating Income$ -$ -$ -Total INCOME$ - - $ - - $ - -
[42]EXPENSESOperating ExpensesAccounting and Legal - - -
Advertising - - - Depreciation - - - Dues and Subscriptions -
- - Insurance - - - Interest Expense - - - Maintenance and
Repairs - - - Office Supplies - - - Payroll Expenses - - -
Postage - - - Rent - - - Research and Development - - -
Salaries and Wages - - - Taxes and Licenses - - - Telephone -
- - Travel - - - Utilities - - - Web Hosting and Domains - - -
Other - - - Total Operating Expenses$ - - $ - - $ - - Non-
Recurring ExpensesFurniture, Equipment and Software - - -
Gifts Given - - - Other - - - Total Non-Recurring Expenses$
- - $ - - $ - - Total EXPENSES$ - - $ - - $ - - Net Income
Before Taxes$ -$ -$ -Income Tax ExpenseNET INCOME$
-$ -$ -Owner Distributions / DividendsAdjustment to
Retained Earnings$ -$ -$ -
Goods[Company Name]3-Year Profit and Loss
ProjectionINCOME2012% of TS2013% of TS2014% of
TSSalesSales - Qtr 1 - - - Sales - Qtr 2 - - - Sales - Qtr 3 - -
- Sales - Qtr 4 - - - Other - - - Total Sales (TS)$ - - $ - - $
- - Cost of GoodsBeginning Inventory - - - Purchases and
Production Costs - - - Shipping and Delivery - - - Labor
(wages and payroll) - - - Other - - - Less Ending Inventory -
- - Total Cost of Goods Sold$ - - $ - - $ - - Gross Profit$ -
- $ - - $ - - Non-Operating IncomeInterest IncomeRental
IncomeOtherTotal Non-Operating Income$ -$ -$ -Total
INCOME$ - - $ - - $ - - [42]EXPENSESOperating
ExpensesAccounting and Legal - - - Advertising - - -
Depreciation - - - Dues and Subscriptions - - - Insurance - -
- Interest Expense - - - Maintenance and Repairs - - - Office
Supplies - - - Payroll Expenses - - - Postage - - - Rent - - -
Research and Development - - - Salaries and Wages - - -

Taxes and Licenses - - - Telephone - - - Travel - - - Utilities
- - - Web Hosting and Domains - - - Other - - - Total
Operating Expenses$ - - $ - - $ - - Non-Recurring
ExpensesFurniture, Equipment and Software - - - Gifts Given -
- - Other - - - Total Non-Recurring Expenses$ - - $ - - $ -
- Total EXPENSES$ - - $ - - $ - - Net Income Before
Taxes$ -$ -$ -Income Tax ExpenseNET INCOME$ -$ -$
-Owner Distributions / DividendsAdjustment to Retained
Earnings$ -$ -$ -
©
Sheet1
CashFlowStatement[Company Name]Cash Flow StatementFor
the Year Ending12/31/15Cash at Beginning of
Year15,700OperationsCash receipts
fromCustomers693,200Other OperationsCash paid forInventory
purchases(264,000)General operating and administrative
expenses(112,000)Wage
expenses(123,000)Interest(13,500)Income taxes(32,800)Net
Cash Flow from Operations147,900[42]Investing ActivitiesCash
receipts fromSale of property and equipment33,600Collection of
principal on loansSale of investment securitiesCash paid
forPurchase of property and equipment(75,000)Making loans to
other entitiesPurchase of investment securitiesNet Cash Flow
from Investing Activities(41,400)Financing ActivitiesCash
receipts fromIssuance of stockBorrowingCash paid
forRepurchase of stock (treasury stock)Repayment of
loans(34,000)Dividends(53,000)Net Cash Flow from Financing
Activities(87,000)Net Increase in Cash19,500Cash at End of
Year35,200
3YearCashFlow[Company Name]3-Year Cash FlowFor the Year
Ending12/31/1412/31/1512/31/16Cash at Beginning of
Year15,70035,20056,650Cash at End of
Year35,20056,65080,245Operations201420152016Cash receipts
fromCustomers693,200762,520838,772Other operationsCash
paid forInventory

purchases(264,000)(290,400)(319,440)General operating and
administrative expenses(112,000)(123,200)(135,520)Wage
expenses(123,000)(135,300)(148,830)Interest(13,500)(14,850)(
16,335)Income taxes(32,800)(36,080)(39,688)Net Cash Flow
from Operations147,900162,690178,959[42]Investing
ActivitiesCash receipts fromSale of property and
equipment33,60036,96040,656Collection of principal on
loansSale of investment securitiesCash paid forPurchase of
property and equipment(75,000)(82,500)(90,750)Making loans
to other entitiesPurchase of investment securitiesNet Cash Flow
from Investing Activities(41,400)(45,540)(50,094)Financing
ActivitiesCash receipts fromIssuance of stockBorrowingCash
paid forRepurchase of stock (treasury stock)Repayment of
loans(34,000)(37,400)(41,140)Dividends(53,000)(58,300)(64,13
0)Net Cash Flow from Financing
Activities(87,000)(95,700)(105,270)Net Cash
Flow19,50021,45023,595
12MonthCashFlow[Company Name]12-Month Cash FlowPeriod
Beginning1/1/142/1/143/1/144/1/145/1/146/1/147/1/148/1/149/1
/1410/1/1411/1/1412/1/14Period
Ending1/31/142/28/143/31/144/30/145/31/146/30/147/31/148/31
/149/30/1410/31/1411/30/1412/31/14Cash at Beginning of
Period15,70017,32517,32517,32517,32517,32517,32517,32517,
32517,32517,32517,325Cash at End of
Period17,32517,32517,32517,32517,32517,32517,32517,32517,
32517,32517,32517,325Operations41640.041671.041699.04173
0.041760.041791.041821.041852.041883.041913.041944.04197
4.0Cash receipts fromCustomers57,767Other operationsCash
paid forInventory purchases(22,000)General operating and
admin expenses(9,333)Wage
expenses(10,250)Interest(1,125)Income taxes(2,733)Net Cash
Flow from Operations12,32500000000000[42]Investing
ActivitiesCash receipts fromSale of property and
equipment2,800Collection of principal on loansSale of
investment securitiesCash paid forPurchase of property and
equipment(6,250)Making loans to other entitiesPurchase of

investment securitiesNet Cash Flow from Investing
Activities(3,450)00000000000Financing ActivitiesCash receipts
fromIssuance of stockBorrowingCash paid forRepurchase of
stock (treasury stock)Repayment of
loans(2,833)Dividends(4,417)Net Cash Flow from Financing
Activities(7,250)00000000000Net Cash Flow1,62500000000000
Sheet1
BalanceSheet[Company Name]Balance
SheetDate:Assets20142013Current AssetsCash11,874Accounts
receivableInventoryPrepaid expensesShort-term
investmentsTotal current assets11,874-Fixed (Long-Term)
AssetsLong-term investments1,208Property, plant, and
equipment15,340(Less accumulated
depreciation)(2,200)Intangible assetsTotal fixed assets14,348-
Other AssetsDeferred income taxOtherTotal Other Assets--Total
Assets26,222-[42]Liabilities and Owner's EquityCurrent
LiabilitiesAccounts payable8,060Short-term loansIncome taxes
payable3,145Accrued salaries and wagesUnearned
revenueCurrent portion of long-term debtTotal current
liabilities11,205-Long-Term LiabilitiesLong-term
debt3,450Deferred income taxOtherTotal long-term
liabilities3,450-Owner's EquityOwner's
investment7,178Retained earnings4,389OtherTotal owner's
equity11,567-Total Liabilities and Owner's Equity26,222-
{42}Common Financial RatiosDebt Ratio (Total Liabilities /
Total Assets)0.56Current Ratio (Current Assets / Current
Liabilities)1.06Working Capital (Current Assets - Current
Liabilities)669-Assets-to-Equity Ratio (Total Assets / Owner's
Equity)2.27Debt-to-Equity Ratio (Total Liabilities / Owner's
Equity)1.27
Sheet1
Sheet2
StartupCosts[Business Name]Business Startup
CostsFUNDINGEstimatedActualOver/(Under)Investor

Funding{42}Owner 110,0009,600(400)Owner
25,0005,500500OtherTotal
Investment15,00015,100100LoansBank Loan 1Bank Loan 2Non
Bank Loan 1Total Loans---Other FundingGrant 1OtherTotal
Other Funding---Total
FUNDING15,00015,100100COSTSEstimatedActualUnder/(Over
)Fixed CostsAdvertising for OpeningBasic WebsiteBrand
DevelopmentBuilding Down PaymentBuilding
Improvements/RemodelingBusiness Cards/StationeryBusiness
EntityBusiness Licenses/PermitsComputer
Hardware/SoftwareDecoratingFranchise Start Up FeesInternet
Setup DepositLease Security DepositLegal/Professional
FeesMachines & EquipmentOffice Furniture/FixturesOperating
Cash (Working Capital)Point of Sale Hardware/SoftwarePrepaid
InsurancePublic Utilities DepositsReserve for
ContingenciesSecurity System InstallationSetup, installation
and consulting feesSignageStarting InventoryTelephoneTools &
SuppliesTravelTruck & VehicleOther 1 (specify)Other 2
(specify)Total Fixed Costs---Average Monthly CostsAdvertising
(print, broadcast and Internet)Business InsuranceBusiness
Vehicle InsuranceEmployee Salaries and
CommissionsEquipment Lease PaymentsInventory, raw
materials, partsFranchise FeeHealth InsuranceInternet
ConnectionLoan and Credit Card Interest &
PrincipalLegal/Accounting FeesMerchant Account
FeesMiscellaneous ExpensesMortgage PaymentsLease
PaymentOwner SalaryPayroll taxes or Self-employment
taxPostage/Shipping CostsSecurity System Monthly
PaymentSuppliesTelephone6365(2)TravelPublic
UtilitiesWebsite Hosting/Maintenance24159Other 1
(specify)Other 2 (specify)Total Average Monthly Costs87807x
Number of Months6Total Monthly Costs52248042Total
COSTS52248042SURPLUS/(DEFICIT)14,47814,620142

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