A mission with a vision

Course Code : TXE-411

Course Title : Industrial Management

Experiment Name: Businesses plan

Submitted by Submitted To

Student Id: 212092046 Fahmida Faiza

Asst. Professor
Department: Textile Engineering Primeasia
University

Date: 07-05-2024

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BUSINESS PLAN

GlobeNet Wireless Broadband [Wi-MAX ISP]

Prepared by:
Serial Name ID
1 MD Mahmud Hasan Prince 212092046

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Table of Contents

Serial Subject Co-subject Page

1 Executive Summary 03
1.1 Mission 04
1.2 Keys to Success 04
1.3 Objectives 04

2 Company Summary 05
2.1 Company Ownership 05
2.2 Start-up Summary 05

3 Service 07

4 Market Analysis Summary 08

4.1 Market Segmentation 08
4.2 Target Market Segment Strategy 09
4.3 Service Business Analysis 09
4.3.1 Competition and Buying Patterns 10

Strategy and Implementation

5 10
Summary
5.1 Competitive Edge 10
5.2 Marketing Strategy 11
5.3 Sales Strategy 11
5.3.1 Sales Forecast 11
5.4 Milestones 13

6 Web Plan Summary 14

6.1 Website Marketing Strategy 14
6.2 Development Requirements 14

7 Management Summary 14
7.1 Personnel Plan 15

8 Financial Plan 15
8.1 Break-even Analysis 15
8.2 Projected Profit and Loss 16
8.3 Projected Cash Flow 19
8.4 Projected Balance Sheet 20
8.5 Business Ratios 21

9 Appendix 23

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Executive Summary
GlobeNet Wireless Broadband is an innovative start-up company that provides
wireless broadband internet connections to several Dhaka Metropolitan Areas.
Utilizing Wi-MAX technology and proprietary antennas and repeaters,
GlobeNet will be able to serve a larger area with broadband Internet
connections.

GlobeNet was been founded by Fahad Karim. With a MBA and an

undergraduate Computer Science degree from the Harvard University (USA),
Fahad has the skills to execute on this well-researched business plan. Fahad
spent two years in the Karim Associates, which gave him not only an incredible
and reasonable boost in confidence to accomplish a business venture, but also
provided him with solid project management skills and experience.

The market for wireless broadband Internet connections in Bangladesh is new

but is widely open. Demand for traditional broadband connections is
surpassing conservative forecasts. The wireless market is even more exciting
due to the significantly lower costs needed in terms of delivery infrastructure.
As GlobeNet's customer base grows, costs decrease through scales of
economy, creating an even more compelling argument for GlobeNet's
existence.

GlobeNet has targeted three distinct groups. The first is students, a market
segment that uses the Internet the most and also have high expectations
regarding the speed of the connection. The second group is professionals,
people with disposable income, not a lot of excessive time on their hands, and
a group that uses the Internet a fair amount, both personally as well as
professionally. The last group that will be targeted is techies. This group is the
early adopters of any type of technology and spend incredible amounts of
time immersed in Internet technology.

GlobeNet is a compelling business concept that leverages advances in

technology and proprietary tools to offer a market need at below market
prices. In addition to earning great margins with low infrastructure costs,
margins increase as the customer base increases. This exciting business plan
has a high likelihood of success with Fahad Karim responsible for the
execution of it. The business will earn modest profits in year two, increasing
exponentially in year three. Net profit is forecasted to be commensurate in
years two and three.

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1.1 Mission

It is GlobeNet Wireless's mission to provide fast, wireless Internet access at a

reasonable price. The most important thing to remember is that every
customer must be satisfied with our services.

1.2 Keys to Success

• Practice disciplined growth.

• Reach profitability by year two.
• Ensure that the customer's needs are met and maintain a 90%
customer retention ratio.

1.3 Objectives

• Provide, fast, reliable, wireless Internet access.

• Treat customers with the upmost respect.
• Become profitable within two years.

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Company Summary
GlobeNet Wireless will be formed in 2011 to offer an inexpensive, wireless
broadband Internet connection to compete with DSL or cable offerings. Using
Wi-MAX technology, it is inexpensive to set up a neighborhood network. The
company was founded by Fahad Karim. Fahad will rely on outside investors for
the necessary start-up costs.

2.1 Company Ownership

GlobeNet Broadband Wireless is a Wi-NET BD Pvt. Ltd. company with Fahad

Karim as the principal and majority owner.

2.2 Start-up Summary

Equipment that will be needed is as follows:

• Three computer workstations;

• Wireless access point;
• Five repeaters;
• Five antennas;
• Assorted office equipment and supplies.

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 Start-up Funding

Start-up Expenses to Fund $9,500

Start-up Assets to Fund $60,500
Total Funding Required $70,000

Assets
Non-cash Assets from Start-up $5,000
Cash Requirements from Start-up $55,500
Additional Cash Raised $0
Cash Balance on Starting Date $55,500
Total Assets $60,500

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
Investor 1 $15,000
Investor 2 $55,000
Additional Investment Requirement $0
Total Planned Investment $70,000

Loss at Start-up (Start-up Expenses) ($9,500)

Total Capital $60,500

Total Capital and Liabilities $60,500

Total Funding $70,000

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 Start-up

Requirements

Start-up Expenses
Legal $2,000
Stationery etc. $100
Consultants $1,000
Insurance $200
Rent $200
Research and Development $1,000
Expensed Equipment $5,000
Total Start-up Expenses $9,500

Start-up Assets
Cash Required $55,500
Other Current Assets $0
Long-term Assets $5,000
Total Assets $60,500

Total Requirements $70,000

Services
GlobeNet offers wireless broadband Internet access. The service is DSL speed
with customers only needing a Wi-MAX card/modem and to live within range
of the signal which covers a thirty block radius currently. There are plans to
enlarge the coverage area as more customers sign up.

Wi-MAX technology is based off of 2.4 Mhz spectrum wireless transmissions.

Using the same wave lengths that some cordless phones use, the Internet
signals are broadcasted out through the neighborhood. With the supplied
password and a Wi-MAX receiver in each customer's computer, customers will
have fast, wireless Internet connections.

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Market Analysis Summary
Within the last three years there has been a proliferation of broadband
Internet connections. With so many people enjoying fast connections at work,
they are no longer willing to deal with a dial-up connection at home. With the
advent of Wi-MAX technology, customers can now enjoy a fast connection
without having to lay expensive cables since the signal is sent via radio waves.
The targeted market segments are: students, professionals, techies.

4.1 Market Segmentation

The market can be segmented into three distinct groups:

• Students: these are people currently in academia and are accustomed

to fast connections and are willing to pay for it. This group uses the
Internet the most, whether they are trading MP3s or downloading
videos.

• Professionals: this group conducts a fair amount of business over the

Internet, whether banking, e-commerce, or communications.

• Techies: this group embraces technology as they enjoy challenging

themselves with technology and the complexity it brings.

Other than the students, GlobeNet' customers are fairly affluent (household
income of >$50,000) and spend their money on technology offerings, whether
it is digital cable, cellular service, or broadband Internet connections. The
target customers are also generally well educated with 65% having a college
degree and 20% having a graduate degree. Combining several demographic
factors, GlobeNet arrives at the following primary customer profile:

• Spends 10 hours a week on the Internet away from home.

• Has purchased something from a website at least once within the last
two months.
• Educated with at least some course work for an undergraduate degree.
• Household income of at least $50,000.

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 Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential
Growth CAGR
Customers
Students 9% 54,000 58,860 64,157 69,931 76,225 9.00%
Professionals 8% 34,000 36,720 39,658 42,831 46,257 8.00%
Techies 11% 10,000 11,100 12,321 13,676 15,180 11.00%
Total 8.87% 98,000 106,680 116,136 126,438 137,662 8.87%

4.2 Target Market Segment Strategy

GlobeNet has chosen the three aforementioned target markets due to their
adoption of broadband Internet technology. It is these three groups that are
most likely to use a fast connection and the most willing to pay a premium for
the connection.

4.3 Service Business Analysis

There are three main participants within the consumer broadband Internet
market.

• DSL (digital subscriber line). A connection that utilizes the copper

phone lines as the method of transmission.
• Cable. A connection that uses cable TV wiring for transmission.
• Satellite connections. These use satellites, in orbit to provide "cable"
TV as well as Internet connections to residential and remote consumers.

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4.3.1 Competition and Buying Patterns

As mentioned in the previous section, DSL, cable, and satellite access are the
competitors in the broadband market. Consumer buying patterns are based
on two factors:

• Availability: not every type of broadband connection is available to

every consumer. Consumers often pick service providers based on what
is available to them.

• Convenience: this is often based on where the outlet cords are based
in the house, whether the computer will be located closer to the cable
TV or nearer to a phone jack.

Strategy and Implementation Summary

Simply put, GlobeNet' strategy is to offer a service, demanded by customers,
at a price that undercuts the competition. This will be accomplished, not by
accepting below-market margins, but by leveraging technology, to help drive
GlobeNet' costs down. Awareness regarding GlobeNet' services will be
generated effectively and inexpensively to the specific target segments that
GlobeNet has focused on.

5.1 Competitive Edge

GlobeNet' competitive edge is the effective and efficient use of Wi-MAX

technology. Wi-MAX, while a fairly recent technology, has been adopted by
several different service providers as well as used for home-based networks.
What provides GlobeNet with a competitive edge is its efficient use of the
technology. GlobeNet has developed a proprietary antenna that allows for
signal transmission over great distances with less signal loss. Additionally,
GlobeNet has significantly reduced administrative costs by having most
administrative activities like marketing, sales, and service details administered
via the Internet.

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5.2 Marketing Strategy

As the name implies, GlobeNet will be using a GlobeNet approach to

developing awareness of the offered services. GlobeNet will adopt a multi-
pronged marketing approach:

• Advertising/postings with local retailers and commercial businesses.

This will provide GlobeNet with great visibility in the exact community
that it operates in.
• Mailings. GlobeNet will adopt a targeted mailing campaign to local
residents.
• Website. GlobeNet will leverage its website as a comprehensive and
efficient source of marketing/sales information.

5.3 Sales Strategy

The sales strategy that GlobeNet will adopt is based on developing an

awareness of GlobeNet' service as a viable alternative to Cable and DSL within
the community. The message used will be that you can receive broadband
speed connections to your computer, wherever it may be, even your laptop on
your front lawn, at a price that is a fraction of the current competitors'. This
will be done with targeted advertising with local retail/commercial
establishments in the area. Additionally, GlobeNet will rely on mailings to get
the word out. Lastly, GlobeNet will have a website for marketing, sales, and
administrative purposes.

5.3.1 Sales Forecast

GlobeNet has developed a conservative sales forecast. Adoption rates of

customers are fairly steady from one month to the next. A conservative
approach has been adopted to minimize any external variables that may effect
future operations.

GlobeNet believes that it will experience extensive growth for several years for
several reasons. The first is the general adoption of broadband connections
which has been encouraging for the last several years. Another reason
GlobeNet believes their forecast to be accurate is it offers a viable, less
expensive alternative to current broadband connections.

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 Sales Forecast
Year 1 Year 2 Year 3
Sales
Monthly Internet Service $36,584 $132,665 $211,443
Other $0 $0 $0
Total Sales $36,584 $132,665 $211,443

Direct Cost of Sales Year 1 Year 2 Year 3

Administrative costs $1,829 $6,633 $10,572
Other $0 $0 $0
Subtotal Direct Cost of Sales $1,829 $6,633 $10,572

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5.4 Milestones

Milestones are a very important aspect of a business plan. They provide

concrete, achievable, yet lofty goals that the business must concentrate on. By
targeting lofty goals, GlobeNet ensures that it is aiming high, therefore it is
more likely to achieve more. The milestones that GlobeNet has chosen are
very specific to the company and will be embraced by all employees.

Milestones

Milestone Start Date End Date Budget Manager Department

Business plan
1/1/2003 2/1/2003 $0 Fahad Management
completion
First 10 customers 1/1/2003 3/30/2003 $0 Fahad Sales
Profitability 1/1/2003 2/1/2004 $0 Fahad Operations
Enlargement of the
1/1/2003 2/1/2004 $0 Fahad Operations
network
Totals $0

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Web Plan Summary
The website will be used for:

• Marketing/sales;
• Administrative functions.

6.1 Website Marketing Strategy

All of GlobeNet' marketing information will be present on the website for

viewing and for downloading/printing. Awareness regarding the website will
be accomplished by inclusion of the website address on all printed materials.
Additionally, the website will have a comprehensive submission procedure to
all of the popular search engines.

6.2 Development Requirements

The website will be developed in-house by leveraging interns.

Management Summary
Fahad Karim, founder and president will be the anchor of the management
team. Fahad received his undergraduate degree in computer science from the
HARVARD University. While Fahad enjoyed the course work he recognized
that it was not something that he was interested in pursuing as a career.
Fahad decided that it would be in his best interest to study for an MBA,
however, he was not immediately ready to do this. So Fahad headed off to
Ghana with the Peace Corps to develop community-based trading systems.
Fahad's Peace Corp experience was invaluable, providing him with extensive
project management experience as well as giving him confidence that he
could accomplish anything he set his mind out to do.

After getting back to the States, Fahad began the MBA program at the
University of Chicago. Fahad's course of study concentrated on
entrepreneurial ventures, recognizing at some point his desire to start his own
business. Near the end of his second year, Fahad began to hear about Wi-
MAX technology. He became interested in what he saw was a strong market
need for inexpensive broadband Internet connections transmitted wirelessly,
thereby significantly decreasing delivery costs. Fahad formed GlobeNet
Wireless to fulfill this market need.

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7.1 Personnel Plan

The two main employees beyond Fahad are:

• Technician: this position is responsible for the smooth operation of the

wireless network as well as the website.

• Administration: this is a general customer service position, assisting in

sales and support.

Personnel Plan
Year 1 Year 2 Year 3
President $24,000 $36,000 $48,000
Technician $19,800 $21,600 $21,600
Administration $15,000 $18,000 $18,000
Total People 3 3 3

Total Payroll $58,800 $75,600 $87,600

Financial Plan
The following sections outline important financial information.

8.1 Break-even Analysis

Average per-unit revenue: based on the $20 monthly access fee.

Average per-unit variable cost: costs based on infrastructure,
and administrative costs.

Estimated monthly fixed costs: Internet connections cost

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 Break-even Analysis

Monthly Revenue Break-even $8,072

Assumptions:
Average Percent Variable Cost 5%
Estimated Monthly Fixed Cost $7,668

8.2 Projected Profit and Loss

The following table and charts show the Projected Profit and Loss.

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Page 19 of 28
 Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $36,584 $132,665 $211,443
Direct Cost of Sales $1,829 $6,633 $10,572
Other Costs of Sales $0 $0 $0
Total Cost of Sales $1,829 $6,633 $10,572

Gross Margin $34,755 $126,032 $200,871

Gross Margin % 95.00% 95.00% 95.00%

Expenses
Payroll $58,800 $75,600 $87,600
Sales and Marketing and Other Expenses $2,400 $5,600 $12,000
Depreciation $996 $1,002 $1,002
Rent $2,400 $2,400 $2,400
Utilities $9,600 $13,000 $15,000
Insurance $3,000 $3,000 $3,000
Payroll Taxes $8,820 $11,340 $13,140
Other $6,000 $6,000 $6,000

Total Operating Expenses $92,016 $117,942 $140,142

Profit Before Interest and Taxes ($57,261) $8,090 $60,729

EBITDA ($56,265) $9,092 $61,731
Interest Expense $0 $0 $0
Taxes Incurred $0 $2,427 $18,219

Net Profit ($57,261) $5,663 $42,510

Net Profit/Sales -156.52% 4.27% 20.10%

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8.3 Projected Cash Flow

The following table and chart display the Projected Cash Flow.

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $36,584 $132,665 $211,443
Subtotal Cash from Operations $36,584 $132,665 $211,443

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 $36,584 $132,665 $211,443

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $58,800 $75,600 $87,600
Bill Payments $31,112 $49,195 $77,871
Subtotal Spent on Operations $89,912 $124,795 $165,471

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 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $89,912 $124,795 $165,471

Net Cash Flow ($53,328) $7,870 $45,972

Cash Balance $2,172 $10,042 $56,014

8.4 Projected Balance Sheet

The following table presents the Projected Balance Sheet.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $2,172 $10,042 $56,014
Other Current Assets $0 $0 $0
Total Current Assets $2,172 $10,042 $56,014

Long-term Assets
Long-term Assets $5,000 $5,000 $5,000
Accumulated Depreciation $996 $1,998 $3,000
Total Long-term Assets $4,004 $3,002 $2,000
Total Assets $6,176 $13,044 $58,014

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $2,938 $4,142 $6,603
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $2,938 $4,142 $6,603

Long-term Liabilities $0 $0 $0
Total Liabilities $2,938 $4,142 $6,603

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 Paid-in Capital $70,000 $70,000 $70,000
Retained Earnings ($9,500) ($66,761) ($61,098)
Earnings ($57,261) $5,663 $42,510
Total Capital $3,239 $8,902 $51,412
Total Liabilities and Capital $6,176 $13,044 $58,014

Net Worth $3,239 $8,902 $51,412

8.5 Business Ratios

The following table illustrates the different Business Ratios, based on NAICS
code 518111, Internet Service Providers.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 262.63% 59.38% 15.97%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 56.35%
Total Current Assets 35.17% 76.99% 96.55% 87.48%
Long-term Assets 64.83% 23.01% 3.45% 12.52%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 47.56% 31.76% 11.38% 30.66%

Long-term Liabilities 0.00% 0.00% 0.00% 23.07%
Total Liabilities 47.56% 31.76% 11.38% 53.73%
Net Worth 52.44% 68.24% 88.62% 46.27%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.00% 95.00% 95.00% 100.00%
Selling, General & Administrative
251.52% 90.73% 74.90% 73.80%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 1.37%
Profit Before Interest and Taxes -156.52% 6.10% 28.72% 1.03%

Main Ratios
Current 0.74 2.42 8.48 1.97
Quick 0.74 2.42 8.48 1.50
Total Debt to Total Assets 47.56% 31.76% 11.38% 59.78%
Pre-tax Return on Net Worth -1767.98% 90.88% 118.12% 2.93%
Pre-tax Return on Assets -927.10% 62.02% 104.68% 7.28%

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Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -156.52% 4.27% 20.10% n.a
Return on Equity -1767.98% 63.62% 82.69% n.a

Activity Ratios
Accounts Payable Turnover 11.59 12.17 12.17 n.a
Payment Days 27 26 24 n.a
Total Asset Turnover 5.92 10.17 3.64 n.a

Debt Ratios
Debt to Net Worth 0.91 0.47 0.13 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital ($765) $5,900 $49,412 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.17 0.10 0.27 n.a
Current Debt/Total Assets 48% 32% 11% n.a
Acid Test 0.74 2.42 8.48 n.a
Sales/Net Worth 11.30 14.90 4.11 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales
Monthly Internet
0% $0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877
Service
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877

Direct Cost of Month Month Month Month Month Month Month Month Month Month Month Month
Sales 1 2 3 4 5 6 7 8 9 10 11 12
Administrative
$0 $0 $60 $106 $127 $144 $177 $194 $216 $245 $266 $294
costs
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct
$0 $0 $60 $106 $127 $144 $177 $194 $216 $245 $266 $294
Cost of Sales

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
President 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
Technician 0% $0 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800
Administration 0% $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 1 2 3 3 3 3 3 3 3 3 3 3

Total Payroll $2,000 $3,800 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300

General Assumptions
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Plan
1 2 3 4 5 6 7 8 9 10 11 12
Month
Current
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Long-
term
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest
Rate
Tax
30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Rate
Other 0 0 0 0 0 0 0 0 0 0 0 0

Page 25 of 28
 Pro Forma Profit and Loss
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales $0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877
Direct
Cost of $0 $0 $60 $106 $127 $144 $177 $194 $216 $245 $266 $294
Sales
Other
Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Total Cost
$0 $0 $60 $106 $127 $144 $177 $194 $216 $245 $266 $294
of Sales

Gross
$0 $0 $1,140 $2,006 $2,417 $2,743 $3,366 $3,683 $4,106 $4,654 $5,057 $5,583
Margin
Gross 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00
0.00% 0.00%
Margin % % % % % % % % % % %

Expenses
Payroll $2,000 $3,800 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300
Sales and
Marketing
$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
and Other
Expenses
Depreciati
$83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83
on
Rent $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Payroll 15
$300 $570 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795
Taxes %
Other $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total
Operating $4,333 $6,403 $8,128 $8,128 $8,128 $8,128 $8,128 $8,128 $8,128 $8,128 $8,128 $8,128
Expenses

Profit
Before ($4,33 ($6,40 ($6,98 ($6,12 ($5,71 ($5,38 ($4,76 ($4,44 ($4,02 ($3,47 ($3,07 ($2,54
Interest 3) 3) 8) 2) 1) 5) 2) 5) 2) 4) 1) 5)
and Taxes
($4,25 ($6,32 ($6,90 ($6,03 ($5,62 ($5,30 ($4,67 ($4,36 ($3,93 ($3,39 ($2,98 ($2,46
EBITDA
0) 0) 5) 9) 8) 2) 9) 2) 9) 1) 8) 2)
Interest
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expense
Taxes
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incurred

($4,33 ($6,40 ($6,98 ($6,12 ($5,71 ($5,38 ($4,76 ($4,44 ($4,02 ($3,47 ($3,07 ($2,54
Net Profit
3) 3) 8) 2) 1) 5) 2) 5) 2) 4) 1) 5)
Net - - - - - - - - - -
Profit/Sale 0.00% 0.00% 582.33 289.85 224.50 186.54 134.41 114.65 93.06 70.91 57.70 43.30
s % % % % % % % % % %

Page 26 of 28
 Pro Forma Cash Flow
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Cash
Received

Cash from
Operations
Cash
$0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877
Sales
Subtotal
Cash from $0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877
Operations

Additional
Cash
Received
Sales Tax,
VAT, 0.00
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST %
Received
New
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)
New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New
Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal
Cash $0 $0 $1,200 $2,112 $2,544 $2,887 $3,543 $3,877 $4,322 $4,899 $5,323 $5,877
Received

Expenditur Month Month Month Month Month Month Month Month Month Month Month Month
es 1 2 3 4 5 6 7 8 9 10 11 12

Expenditur
es from
Operations
Cash
$2,000 $3,800 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300
Spending
Bill
$75 $2,259 $2,530 $2,807 $2,851 $2,873 $2,890 $2,923 $2,940 $2,962 $2,991 $3,012
Payments
Subtotal
Spent on $2,075 $6,059 $7,830 $8,107 $8,151 $8,173 $8,190 $8,223 $8,240 $8,262 $8,291 $8,312
Operations

Additional

Page 27 of 28
Cash
Spent
Sales Tax,
VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Paid Out
Principal
Repaymen
t of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Borrowing
Other
Liabilities
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repaymen
t
Long-term
Liabilities
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repaymen
t
Purchase
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
Cash $2,075 $6,059 $7,830 $8,107 $8,151 $8,173 $8,190 $8,223 $8,240 $8,262 $8,291 $8,312
Spent

Net Cash ($2,07 ($6,05 ($6,63 ($5,99 ($5,60 ($5,28 ($4,64 ($4,34 ($3,91 ($3,36 ($2,96 ($2,43
Flow 5) 9) 0) 5) 7) 6) 7) 6) 8) 3) 8) 5)
Cash $53,42 $47,36 $40,73 $34,74 $29,13 $23,84 $19,20 $14,85 $10,93
$7,575 $4,607 $2,172
Balance 5 6 7 2 5 9 1 6 8

Pro Forma Balance Sheet

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Startin
g
Assets
Balanc
es

Current
Assets
$55,50 $53,4 $47,36 $40,73 $34,74 $29,13 $23,84 $19,20 $14,85 $10,93
Cash $7,575 $4,607 $2,172
0 25 6 7 2 5 9 1 6 8
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total
$55,50 $53,4 $47,36 $40,73 $34,74 $29,13 $23,84 $19,20 $14,85 $10,93
Current $7,575 $4,607 $2,172
0 25 6 7 2 5 9 1 6 8
Assets

Long-
term

Page 28 of 28
Assets
Long-
$5,00
term $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
0
Assets
Accumul
ated
$0 $83 $166 $249 $332 $415 $498 $581 $664 $747 $830 $913 $996
Depreciat
ion
Total
Long- $4,91
$5,000 $4,834 $4,751 $4,668 $4,585 $4,502 $4,419 $4,336 $4,253 $4,170 $4,087 $4,004
term 7
Assets
Total $60,50 $58,3 $52,20 $45,48 $39,41 $33,72 $28,35 $23,62 $19,19 $15,19 $11,74
$8,694 $6,176
Assets 0 42 0 8 0 0 1 0 2 1 5

Liabilities
Month Month Month Month Month Month Month Month Month Month Month Month
and
1 2 3 4 5 6 7 8 9 10 11 12
Capital

Current
Liabilities
Accounts $2,17
$0 $2,436 $2,712 $2,756 $2,776 $2,793 $2,825 $2,841 $2,862 $2,890 $2,911 $2,938
Payable 5
Current
Borrowin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
g
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
$2,17
Current $0 $2,436 $2,712 $2,756 $2,776 $2,793 $2,825 $2,841 $2,862 $2,890 $2,911 $2,938
5
Liabilities

Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $2,17
$0 $2,436 $2,712 $2,756 $2,776 $2,793 $2,825 $2,841 $2,862 $2,890 $2,911 $2,938
Liabilities 5

Paid-in $70,00 $70,0 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00 $70,00
Capital 0 00 0 0 0 0 0 0 0 0 0 0 0
Retained ($9,50 ($9,5 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50 ($9,50
Earnings 0) 00) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0)
($4,3 ($10,7 ($17,7 ($23,8 ($29,5 ($34,9 ($39,7 ($44,1 ($48,1 ($51,6 ($54,7 ($57,2
Earnings $0
33) 36) 24) 46) 57) 42) 04) 49) 71) 45) 16) 61)
Total $60,50 $56,1 $49,76 $42,77 $36,65 $30,94 $25,55 $20,79 $16,35 $12,32
$8,855 $5,784 $3,239
Capital 0 67 4 6 4 3 8 6 1 9
Total
Liabilities $60,50 $58,3 $52,20 $45,48 $39,41 $33,72 $28,35 $23,62 $19,19 $15,19 $11,74
$8,694 $6,176
and 0 42 0 8 0 0 1 0 2 1 5
Capital

Net $60,50 $56,1 $49,76 $42,77 $36,65 $30,94 $25,55 $20,79 $16,35 $12,32
$8,855 $5,784 $3,239
Worth 0 67 4 6 4 3 8 6 1 9

Page 29 of 28