Thanks for downloading a sample plan from Bplans.com A sample plan is a great way to get started, but you can’t just print this plan out and turn it into the bank. You’re still going to have to put in all your own information and do all of your own financial forecasts. With LivePlan, you can easily use this sample as inspiration and create your own plan, complete with financial tables and graphs. You’ll also be able to: • • • •
Save time with linked financial tables (the formulas are built in, so you don’t have to do the calculations!) Benefit from tons of help, advice, and resources. Present your plan with confidence, with automatic charts and graphs corresponding to your financial data. Work on your plan anywhere, on any computer.
“For 20 dollars I ended up getting a quarter of a million dollars of funding. That’s worth it!” – Todd C. Tablegate Click here to save 50% off the first month of LivePlan!
Cover Page
This sample business plan has been made available to users of Business Plan Pro®, business planning software published by Palo Alto Software, Inc. Names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at
[email protected]. For product information visit our website: www.paloalto.com or call: 1-800-229-7526. Copyright © Palo Alto Software, Inc., 1995-2009 All rights reserved.
Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary....................................................................................................................................1 Chart: Highlights.......................................................................................................................................1 1.1 Mission....................................................................................................................................................1 1.2 Keys to Success.......................................................................................................................................2 2.0 Company Summary.....................................................................................................................................2 2.1 Start-up Summary...................................................................................................................................2 Table: Start-up...........................................................................................................................................2 Table: Start-up Funding............................................................................................................................3 2.2 Company Ownership..........................................................................................................................3 3.0 Products.......................................................................................................................................................4 4.0 Market Analysis Summary.........................................................................................................................4 4.1 Market Segmentation..............................................................................................................................4 Table: Market Analysis.............................................................................................................................5 Chart: Market Analysis (Pie)....................................................................................................................5 5.0 Strategy and Implementation Summary.....................................................................................................6 5.1 Competitive Edge....................................................................................................................................6 5.2 Marketing Strategy..................................................................................................................................6 5.2.1 Pricing Strategy................................................................................................................................6 5.3 Sales Strategy..........................................................................................................................................7 5.3.1 Sales Forecast...................................................................................................................................7 Table: Sales Forecast............................................................................................................................7 Chart: Sales Monthly............................................................................................................................8 Chart: Sales by Year.............................................................................................................................8 6.0 Management Summary...............................................................................................................................9 6.1 Personnel Plan.........................................................................................................................................9 Table: Personnel........................................................................................................................................9 ...........................................................................................................................................................................9 7.0 Financial Plan............................................................................................................................................10 7.1 Break-even Analysis.............................................................................................................................10 Table: Break-even Analysis....................................................................................................................10 Chart: Break-even Analysis....................................................................................................................10 7.2 Projected Profit and Loss......................................................................................................................11 Chart: Profit Monthly..............................................................................................................................11 Chart: Profit Yearly.................................................................................................................................12 Chart: Gross Margin Monthly................................................................................................................12 Chart: Gross Margin Yearly...................................................................................................................13 Table: Profit and Loss.............................................................................................................................14 .....................................................................................................................................................................14 7.3 Projected Cash Flow.............................................................................................................................15 Table: Cash Flow....................................................................................................................................15 Chart: Cash..............................................................................................................................................16 7.4 Projected Balance Sheet........................................................................................................................17 Table: Balance Sheet...............................................................................................................................17 Page 1
Table of Contents
.....................................................................................................................................................................17 7.5 Business Ratios.....................................................................................................................................18 Table: Ratios...........................................................................................................................................18 Table: Sales Forecast.........................................................................................................................................1 ...........................................................................................................................................................................1 Table: Personnel................................................................................................................................................2 ...........................................................................................................................................................................2 Table: General Assumptions.............................................................................................................................3 ...........................................................................................................................................................................3 Table: Profit and Loss.......................................................................................................................................4 ...........................................................................................................................................................................4 Table: Cash Flow..............................................................................................................................................5 Table: Balance Sheet.........................................................................................................................................6
Page 2
Liquid Culture
1.0 Executive Summary The Year 1 season will be a great one for women looking for distinctive outdoor clothing online. Liquid Culture will eliminate the middle man and offer creative outdoor clothing that is both functional and beautiful. The savings are passed on to our customers who will be paying a fraction of what they normally do for current retreated fashion in stores. Liquid Culture's Year 1 line consists of the best fabric, designs and styling on the market. Larry Wilson and Maggie Granger, co-owners of Liquid Culture, have fifteen years of experience between them in the outdoor garment industry. Maggie has been a senior clothing designer for Manic Woman Clothing for the past seven years. Larry has been the website administrator for South Face the past eight years. Another strength of Liquid Culture is that it will not maintain any clothing inventory. Liquid Culture has contracted with Magic Clothing Company, located in Los Angeles, California, to produce and ship all Liquid Culture clothing. Our design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce sufficient product to meet the planned demand.
Chart: Highlights
Highlights $4,000,000 $3,600,000 $3,200,000 $2,800,000
Sales
$2,400,000
Gross Margin
$2,000,000
Net Profit
$1,600,000 $1,200,000 $800,000 $400,000 $0 Year 1
Year 2
Year 3
1.1 Mission Liquid Culture's mission is to present consumers with designs, styling and clothes that energizes any outdoor activity. Whether it be snowboarding, running along the beach, or drifting down a river, Liquid Culture has comfortable, durable clothing that will look and feel wonderful.
Page 1
Liquid Culture
1.2 Keys to Success • • • •
Accessible website that is entertaining to surf. Like a trip to your favorite store where you always find something new that you want. Establishing a strong advertising campaign in a traditional media vehicle; i.e. magazines. Excellent vendor relationship that will facilitate quality manufacturing of Liquid Culture's clothing and quick shipment of orders. Acquiring an excellent design staff.
2.0 Company Summary Liquid Culture will offer creative women's outdoor clothing, online, that is both functional and beautiful. Larry Wilson and Maggie Granger, co-owners of Liquid Culture, will create a costeffective operation that will eliminate the cost of inventory by having a third-party, Magic Clothing Company, handle all manufacturing and shipping of clothing to the customer. Liquid Culture will process the order and collect the payment online. The order will then be sent to Magic Clothing Company to be filled and shipped. Liquid Culture will focus on clothing design and marketing of its products. 2.1 Start-up Summary Liquid Culture's start-up costs consists mostly of design and marketing. Liquid Culture has $260,000 in investments and $200,000 in a short-term loan. Table: Start-up
Start-up Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Leased Office Equipment Computer Equipment/Software Website Other Total Start-up Expenses
$1,000 $500 $0 $5,000 $0 $2,000 $10,000 $30,000 $10,000 $0 $58,500
Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets
$401,500 $0 $0 $0 $401,500
Total Requirements
$460,000
Page 2
Liquid Culture
Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
$58,500 $401,500 $460,000
Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
$0 $401,500 $0 $401,500 $401,500
Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities
$0 $200,000 $0 $0 $200,000
Capital Planned Investment Investor 1 Investor 2 Other Additional Investment Requirement Total Planned Investment
$130,000 $130,000 $0 $0 $260,000
Loss at Start-up (Start-up Expenses) Total Capital
($58,500) $201,500
Total Capital and Liabilities
$401,500
Total Funding
$460,000
2.2 Company Ownership Liquid Culture is owned by Larry Wilson and Maggie Granger.
Page 3
Liquid Culture
3.0 Products Liquid Culture will sell women's outdoor clothing online. We will offer outdoor clothing for almost every type of active use. We will focus on the seasonal clothing demands of our customers including the following: • • • • • • •
Fleece outerwear. Rain gear, waterproof breathables, as well as coated nylon. Synthetic clothing for outdoor activities. Hats. Shorts. Pants. Shirts.
4.0 Market Analysis Summary In the past 15 years, women's outdoor wear has grown into a billion dollar niche in the clothing industry. The popularity of the Internet has launched a number of online stores for women's outdoor wear but no company is exclusively selling their products online. There are a number of reasons for this but the strongest is that the concept is new and untested. Will customers buy something that they wear that can only be seen online? We believe they will, if the process is fun and the products are great and cheap. The key is marketing our target customers in the traditional advertising medium for fashion, i.e. women fitness magazines. The ads will focused on the eliminating the middle man in your clothing budget and stepping up to the distinctive style of Liquid Culture. The company logo will also be an important marketing tool in bringing customers to our website. 4.1 Market Segmentation Liquid Culture will be focusing on two distinct groups of women that purchase outdoor clothing: •
Women 17-25 years of age: Youth drives the market so this is the important group to attract to the website. They have less money than the older group so we must give them what they want for less. The key is to have inexpensive selections in each clothing group that have the popular cut. The company's logo attractiveness to this group can not be stressed strongly enough. The initial small purchases will grow larger over time.
•
Women 26-40 years of age: They are the core group that will drive Liquid Culture's success. This target group is responsible for the growth of outdoor women's wear. They will be harder to pull into the website. Once there, the key will be promoting the quality, attractiveness and savings. In addition, we will have to assure that the purchase will fit the way the customer wants it to. It will be crucial that the return policy is hassle-free and speedy.
Page 4
Liquid Culture
Table: Market Analysis
Market Analysis Potential Customers
Growth
Women Ages 16-25 Women Ages 26-40 Other Total
20% 15% 0% 17.81%
Year 1
Year 2
Year 3
Year 4
Year 5
6,000,000 5,000,000 0 11,000,000
7,200,000 5,750,000 0 12,950,000
8,640,000 6,612,500 0 15,252,500
10,368,000 7,604,375 0 17,972,375
12,441,600 8,745,031 0 21,186,631
CAGR 20.00% 15.00% 0.00% 17.81%
Chart: Market Analysis (Pie)
Market Analysis (Pie)
Women Ages 16-25 Women Ages 26-40 Other
Page 5
Liquid Culture
5.0 Strategy and Implementation Summary Liquid Culture will win market share in the women's outdoor clothing niche by aggressively pursuing visibility with its target customers. 5.1 Competitive Edge Liquid Culture's competitive edge is its focus on the process than on product. The website is just the endpoint of an entire marketing program to drive customers' interest in Liquid Culture. Though we have confidence in the quality and attractiveness of our products, we know that building the road to the website is our most important job. Larry Wilson's experience with South Face is pivotal to the success of Liquid Culture's website. South Face's website averaged five million hits a year and is considered one of the most accessible and attractive websites in the clothing industry. His experience is invaluable in assuring customers' satisfaction with the shopping experience online. Larry will introduce a new clothing measurement feature that is fun to use and will reduce customers confusion on how the clothing will fit. This will increase customer satisfaction and reduce returns. Maggie Granger will be in charge of the clothing design team. As senior clothing designer for Manic Woman Clothing, she watched the Manic Woman's sales grow by 20% for the past five years. Her clothing designs have been praised in the industry and have spawned many imitators. With Liquid Culture, Maggie is ready to change how quality women's outdoor clothing is sold. Liquid Culture's agreement with Magic Clothing Company is another strong competitive advantage. Our design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce sufficient product to meet the planned demand. This will keep production costs low for products and put a cap on Liquid Culture's overhead. 5.2 Marketing Strategy Liquid Culture's marketing strategy is a simple one. In women's fitness magazines like Self, Shape and Strive, Liquid Culture will introduce customers to their products and website. We will also advertise in CosmoGirl and Ellegirl magazines. For the first two months, Liquid Culture will offer 10% off for all purchases under $100 and 15% off all purchases over $100. We will offer the same discount strategy three more times during the year when new seasonal clothing is introduced. 5.2.1 Pricing Strategy Liquid Culture's pricing strategy is to pass on most of the store mark-up to the consumer in reduced price for clothing. This advantage has no negative impact on our sales profit and will also absorb some of the initial cost of offering discounts during our first three months of operation.
Page 6
Liquid Culture
5.3 Sales Strategy Liquid Culture will launch a $245,000 ad campaign targeted at our core customer groups. The focus of the ads will be to "keep the money you give to the middleman" and use it to get outdoors and enjoy life. Liquid Culture's attractive logo will be heavily displayed in these ads. We estimate it will take most of the year to build our sales to the point where we begin to show a profit. Liquid Culture will offer discounts at various times of the year to even out seasonality and build initial awareness of the website. 5.3.1 Sales Forecast We expect sales to increase at a steady rate for the first year. It will begin slow as we open, but will quickly pick up as our customer base increases. Liquid Culture will see a sales increase of 38% between the first and second year. We feel that we can accomplish this steady goal and maintain this amount of sales. Table: Sales Forecast
Sales Forecast Year 1
Year 2
Year 3
Clothing Other Total Sales
$2,170,000 $0 $2,170,000
$3,000,000 $0 $3,000,000
$4,300,000 $0 $4,300,000
Direct Cost of Sales Clothing Other Subtotal Direct Cost of Sales
Year 1 $1,249,000 $0 $1,249,000
Year 2 $1,800,000 $0 $1,800,000
Year 3 $2,580,000 $0 $2,580,000
Sales
Page 7
Liquid Culture
Chart: Sales Monthly
Sales Monthly $400,000 $360,000 $320,000 $280,000 $240,000
Clothing
$200,000
Other
$160,000 $120,000 $80,000 $40,000 $0 Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
Chart: Sales by Year
Sales by Year
$4,000,000 $3,500,000 $3,000,000
Clothing
$2,500,000
Other
$2,000,000 $1,500,000 $1,000,000 $500,000 $0 Year 1
Year 2
Year 3
Page 8
Liquid Culture
6.0 Management Summary Larry Wilson will manage the marketing team, as well as the development and administration of Liquid Culture's website. Maggie Granger will be in charge of the clothing design team. She will also manage the production of the designs by Magic Clothing Company. 6.1 Personnel Plan Besides Larry and Maggie, Liquid Culture will have a staff of eight: • • • • •
Three member clothing design team. Web administrator. Two member marketing team. Office manager. Accountant.
Table: Personnel
Personnel Plan Year 1
Year 2
Year 3
Marketing/Website Director Design Director Designers Web Administrator Office Manager Marketing Staff Accountant Other Total People
$84,000 $84,000 $144,000 $48,000 $36,000 $96,000 $39,600 $0 8
$90,000 $90,000 $156,000 $52,000 $39,000 $104,000 $44,000 $0 8
$95,000 $95,000 $166,000 $56,000 $42,000 $112,000 $48,000 $0 8
Total Payroll
$531,600
$575,000
$614,000
Page 9
Liquid Culture
7.0 Financial Plan The following is the financial plan for Liquid Culture. 7.1 Break-even Analysis Our break-even analysis is based on running costs, the costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. Fixed costs include payroll, rent, utilities, and marketing costs. Table: Break-even Analysis
Break-even Analysis Monthly Revenue Break-even
$177,248
Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
58% $75,228
Chart: Break-even Analysis
Break-even Analysis $60,000 $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000)
$0
$60,000 $120,000 $180,000 $240,000 $300,000 $30,000 $90,000 $150,000 $210,000 $270,000 $330,000
Page 10
Liquid Culture
7.2 Projected Profit and Loss The following table and chart are the projected profit and loss for three years.
Chart: Profit Monthly
Profit Monthly $60,000
$40,000
$20,000
$0
($20,000)
($40,000) Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
Page 11
Liquid Culture
Chart: Profit Yearly
Profit Yearly
$400,000 $360,000 $320,000 $280,000 $240,000 $200,000 $160,000 $120,000 $80,000 $40,000 $0 Year 1
Year 2
Year 3
Chart: Gross Margin Monthly
Gross Margin Monthly $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
Page 12
Liquid Culture
Chart: Gross Margin Yearly
Gross Margin Yearly
$1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Year 1
Year 2
Year 3
Page 13
Liquid Culture
Table: Profit and Loss
Pro Forma Profit and Loss Year 1
Year 2
Year 3
$2,170,000 $1,249,000 $0 $1,249,000
$3,000,000 $1,800,000 $0 $1,800,000
$4,300,000 $2,580,000 $0 $2,580,000
$921,000 42.44%
$1,200,000 40.00%
$1,720,000 40.00%
Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other
$531,600 $265,000 $0 $0 $2,400 $0 $24,000 $79,740 $0
$575,000 $340,000 $0 $0 $2,400 $0 $24,000 $86,250 $0
$614,000 $440,000 $0 $0 $2,400 $0 $24,000 $92,100 $0
Total Operating Expenses
$902,740
$1,027,650
$1,172,500
$18,260 $18,260 $17,574 $206
$172,350 $172,350 $13,281 $47,721
$547,500 $547,500 $8,801 $161,610
$481 0.02%
$111,349 3.71%
$377,089 8.77%
Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin %
Expenses
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
Page 14
Liquid Culture
7.3 Projected Cash Flow The following table and chart are the projected cash flow for three years. Table: Cash Flow
Pro Forma Cash Flow Year 1
Year 2
Year 3
$2,170,000 $2,170,000
$3,000,000 $3,000,000
$4,300,000 $4,300,000
$0 $0 $0 $0 $0 $0 $0 $2,170,000
$0 $0 $0 $0 $0 $0 $0 $3,000,000
$0 $0 $0 $0 $0 $0 $0 $4,300,000
Year 1
Year 2
Year 3
$531,600 $1,590,840 $2,122,440
$575,000 $2,410,513 $2,985,513
$614,000 $3,317,830 $3,931,830
$0 $0 $0 $44,796 $0 $0 $0 $2,167,236
$0 $0 $0 $44,796 $0 $0 $0 $3,030,309
$0 $0 $0 $44,796 $0 $0 $0 $3,976,626
$2,764 $404,264
($30,309) $373,956
$323,374 $697,330
Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
Page 15
Liquid Culture
Chart: Cash
Cash $400,000 $350,000 $300,000 $250,000 $200,000
Net Cash Flow
$150,000
Cash Balance
$100,000 $50,000 $0
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
($50,000)
Page 16
Liquid Culture
7.4 Projected Balance Sheet The following is the projected balance sheet for three years. Table: Balance Sheet
Pro Forma Balance Sheet Year 1
Year 2
Year 3
$404,264 $264,000 $0 $668,264
$373,956 $237,790 $0 $611,746
$697,330 $338,983 $0 $1,036,313
$0 $0 $0 $668,264
$0 $0 $0 $611,746
$0 $0 $0 $1,036,313
Year 1
Year 2
Year 3
Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
$311,080 $0 $0 $311,080
$188,009 $0 $0 $188,009
$280,283 $0 $0 $280,283
Long-term Liabilities Total Liabilities
$155,204 $466,284
$110,408 $298,417
$65,612 $345,895
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
$260,000 ($58,500) $481 $201,981 $668,264
$260,000 ($58,019) $111,349 $313,329 $611,746
$260,000 $53,329 $377,089 $690,418 $1,036,313
Net Worth
$201,981
$313,329
$690,418
Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities
Page 17
Liquid Culture
7.5 Business Ratios The following table shows the projected businesses ratios. We expect to maintain healthy ratios for profitability, risk, and return. These ratios have been determined by the 5137 industry, Women's and Children's Clothing, as found in the Standard Industry Code (SIC) Index. Table: Ratios
Ratio Analysis Year 1
Year 2
Year 3
Industry Profile
n.a.
38.25%
43.33%
10.40%
Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets
39.51% 0.00% 100.00% 0.00% 100.00%
38.87% 0.00% 100.00% 0.00% 100.00%
32.71% 0.00% 100.00% 0.00% 100.00%
34.10% 25.70% 89.40% 10.60% 100.00%
Current Liabilities Long-term Liabilities Total Liabilities Net Worth
46.55% 23.22% 69.78% 30.22%
30.73% 18.05% 48.78% 51.22%
27.05% 6.33% 33.38% 66.62%
40.70% 9.00% 49.70% 50.30%
100.00% 42.44% 42.42% 11.29% 0.84%
100.00% 40.00% 36.29% 10.00% 5.75%
100.00% 40.00% 31.23% 9.30% 12.73%
100.00% 24.80% 14.80% 0.90% 2.00%
2.15 1.30 69.78% 0.34% 0.10%
3.25 1.99 48.78% 50.77% 26.00%
3.70 2.49 33.38% 78.03% 51.98%
2.36 1.09 49.70% 4.90% 9.70%
Sales Growth Percent of Total Assets
Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin Return on Equity
0.02% 0.24%
3.71% 35.54%
8.77% 54.62%
n.a n.a
10.91 6.11 27 3.25
7.17 12.17 40 4.90
8.95 12.17 25 4.15
n.a n.a n.a n.a
2.31 0.67
0.95 0.63
0.50 0.81
n.a n.a
$357,185 1.04
$423,737 12.98
$756,030 62.21
n.a n.a
0.31 47% 1.30 10.74
0.20 31% 1.99 9.57
0.24 27% 2.49 6.23
n.a n.a n.a n.a
Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth
Page 18
Liquid Culture
Dividend Payout
0.00
0.00
0.00
n.a
Page 19
Appendix 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 Clothing Other Total Sales Direct Cost of Sales Clothing Other Subtotal Direct Cost of Sales
0% 0%
$40,000 $0 $40,000 Month 1 $20,000
$40,000 $0 $40,000 Month 2 $20,000
$60,000 $0 $60,000 Month 3 $31,000
$80,000 $0 $80,000 Month 4 $42,000
$110,000 $0 $110,000 Month 5 $58,000
$140,000 $0 $140,000 Month 6 $78,000
$180,000 $0 $180,000 Month 7 $100,000
$220,000 $0 $220,000 Month 8 $120,000
$250,000 $0 $250,000 Month 9 $150,000
$300,000 $0 $300,000 Month 10 $180,000
$350,000 $0 $350,000 Month 11 $210,000
$400,000 $0 $400,000 Month 12 $240,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$20,000
$20,000
$31,000
$42,000
$58,000
$78,000
$100,000
$120,000
$150,000
$180,000
$210,000
$240,000
Page 1
Appendix Table: Personnel
Personnel Plan Month 1 Marketing/Website Director Design Director Designers Web Administrator Office Manager Marketing Staff Accountant Other Total People Total Payroll
0% 0% 0% 0% 0% 0% 0% 0%
Month 10
Month 11
Month 12
$7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 2 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 3 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 4 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 5 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 6 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 7 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 8 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
Month 9 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
$7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
$7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
$7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $3,300 $0 8
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
Page 2
Appendix Table: General Assumptions
General Assumptions Plan Month
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
1
2
3
4
5
6
7
8
9
10
11
Month 12 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 Tax 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%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
0
0
0
0
0
0
0
0
0
0
0
0
Other
Page 3
Appendix 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
$40,000
$40,000
$60,000
$80,000
$110,000
$140,000
$180,000
$220,000
$250,000
$300,000
$350,000
$400,000
Direct Cost of Sales
$20,000
$20,000
$31,000
$42,000
$58,000
$78,000
$100,000
$120,000
$150,000
$180,000
$210,000
$240,000
Other Production Expenses Total Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$20,000
$20,000
$31,000
$42,000
$58,000
$78,000
$100,000
$120,000
$150,000
$180,000
$210,000
$240,000
Gross Margin
$20,000
$20,000
$29,000
$38,000
$52,000
$62,000
$80,000
$100,000
$100,000
$120,000
$140,000
$160,000
50.00%
50.00%
48.33%
47.50%
47.27%
44.29%
44.44%
45.45%
40.00%
40.00%
40.00%
40.00%
Payroll
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
Sales and Marketing and Other Expenses Depreciation
$30,000
$20,000
$10,000
$40,000
$15,000
$45,000
$15,000
$15,000
$25,000
$10,000
$30,000
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Gross Margin %
Expenses
Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred
15%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$6,645 $0
$83,145
$73,145
$63,145
$93,145
$68,145
$98,145
$68,145
$68,145
$78,145
$63,145
$83,145
$63,145
($63,145)
($53,145)
($34,145)
($55,145)
($16,145)
($36,145)
$11,855
$31,855
$21,855
$56,855
$56,855
$96,855
($63,145)
($53,145)
($34,145)
($55,145)
($16,145)
($36,145)
$11,855
$31,855
$21,855
$56,855
$56,855
$96,855
$1,449
$1,418
$1,387
$1,356
$1,324
$1,293
$1,636
$1,604
$1,573
$1,542
$1,511
$1,480
($19,434)
($16,425)
($10,716)
($17,006)
($5,297)
($11,288)
$3,122
$9,131
$6,140
$16,650
$16,659
$28,668
Net Profit
($45,346)
($38,325)
($25,003)
($39,681)
($12,359)
($26,338)
$7,284
$21,306
$14,328
$38,850
$38,871
$66,893
Net Profit/Sales
-113.37%
-95.81%
-41.67%
-49.60%
-11.24%
-18.81%
4.05%
9.68%
5.73%
12.95%
11.11%
16.72%
Page 4
Appendix Table: Cash Flow
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
$40,000
$40,000
$60,000
$80,000
$110,000
$140,000
$180,000
$220,000
$250,000
$300,000
$350,000
$400,000
Subtotal Cash from Operations
$40,000
$40,000
$60,000
$80,000
$110,000
$140,000
$180,000
$220,000
$250,000
$300,000
$350,000
$400,000
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
New Other Liabilities (interestfree) New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$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
$40,000
$40,000
$60,000
$80,000
$110,000
$140,000
$180,000
$220,000
$250,000
$300,000
$350,000
$400,000
Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing
Subtotal Cash Received Expenditures
0.00%
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
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$44,300
$2,102
$62,079
$34,651
$53,959
$87,754
$97,272
$144,323
$153,408
$177,993
$225,221
$251,516
$300,561
$46,402
$106,379
$78,951
$98,259
$132,054
$141,572
$188,623
$197,708
$222,293
$269,521
$295,816
$344,861
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
$3,733
Bill Payments Subtotal Spent on Operations Additional Cash Spent
$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
$50,135
$110,112
$82,684
$101,992
$135,787
$145,305
$192,356
$201,441
$226,026
$273,254
$299,549
$348,594
Subtotal Cash Spent
Page 5
Appendix Net Cash Flow
($10,135)
($70,112)
($22,684)
($21,992)
($25,787)
Cash Balance
$391,365
$321,253
$298,570
$276,578
$250,791
($5,305) $245,487
($12,356)
$18,559
$23,974
$26,746
$50,451
$51,406
$233,130
$251,689
$275,663
$302,408
$352,859
$404,264
Table: Balance Sheet
Pro Forma Balance Sheet Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$401,500 $0 $0 $401,500
$391,365 $22,000 $0 $413,365
$321,253 $22,000 $0 $343,253
$298,570 $34,100 $0 $332,670
$276,578 $46,200 $0 $322,778
$250,791 $63,800 $0 $314,591
$245,487 $85,800 $0 $331,287
$233,130 $110,000 $0 $343,130
$251,689 $132,000 $0 $383,689
$275,663 $165,000 $0 $440,663
$0 $0 $0 $401,500
$0 $0 $0 $413,365
$0 $0 $0 $343,253
$0 $0 $0 $332,670
$0 $0 $0 $322,778
$0 $0 $0 $314,591
$0 $0 $0 $331,287
$0 $0 $0 $343,130
$0 $0 $0 $383,689
$0 $0 $0 $440,663
Month 1
Month 2
Month 10
Month 11
Month 12
$302,408 $198,000 $0 $500,408
$352,859 $231,000 $0 $583,859
$404,264 $264,000 $0 $668,264
$0 $0 $0 $500,408
$0 $0 $0 $583,859
$0 $0 $0 $668,264
Month 11
Month 12
Starting Balances
Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
$0 $0 $0 $0
$60,945 $0 $0 $60,945
$32,890 $0 $0 $32,890
$51,043 $0 $0 $51,043
$84,565 $0 $0 $84,565
$92,471 $0 $0 $92,471
$139,236 $0 $0 $139,236
$147,529 $0 $0 $147,529
$170,514 $0 $0 $170,514
$216,893 $0 $0 $216,893
$241,522 $0 $0 $241,522
$289,834 $0 $0 $289,834
$311,080 $0 $0 $311,080
Long-term Liabilities Total Liabilities
$200,000 $200,000
$196,267 $257,212
$192,534 $225,424
$188,801 $239,844
$185,068 $269,633
$181,335 $273,806
$177,602 $316,838
$173,869 $321,398
$170,136 $340,650
$166,403 $383,296
$162,670 $404,192
$158,937 $448,771
$155,204 $466,284
Paid-in Capital Retained Earnings Earnings
$260,000 ($58,500) $0
$260,000 ($58,500) ($45,346)
$260,000 ($58,500) ($83,671)
$156,154 $413,365
$117,829 $343,253
$260,000 ($58,500) ($160,71 4) $40,786 $314,591
$260,000 ($58,500) ($187,05 2) $14,448 $331,287
$260,000 ($58,500) ($179,76 7) $21,733 $343,130
$260,000 ($58,500) ($158,46 1) $43,039 $383,689
$260,000 ($58,500) ($144,13 4) $57,366 $440,663
$260,000 ($58,500) ($105,28 4) $96,216 $500,408
$260,000 ($58,500) $481
$201,500 $401,500
$260,000 ($58,500) ($148,35 5) $53,145 $322,778
$260,000 ($58,500) ($66,413)
Total Capital Total Liabilities and Capital
$260,000 ($58,500) ($108,67 4) $92,826 $332,670
$135,087 $583,859
$201,981 $668,264
Net Worth
$201,500
$156,154
$117,829
$92,826
$53,145
$40,786
$14,448
$21,733
$43,039
$57,366
$96,216
$135,087
$201,981
Page 6
