Last Frontier Market
Executive Summary
Last Frontier Market will offer customers organic and locally grown produce, chemical- and preservative-free groceries, cruelty-free body care and eco-household products. All of our products are healthy alternatives to the products available at conventional grocery chains. Located in the heart of the growing Willow Creek section of Richmond, the market will serve a community of 25,000 residents. The creation of the market is in response to the growing demand in the community for a local natural food store.
The Last Frontier Market will have the advantage of the foot traffic in the Willow Creek retail area which is the home of the Willow Creek Arts and Craft Fair, as well as the home of numerous art and craft shops. The area has a reputation of supporting progressive causes and businesses. The market will be a comfortable place to meet and shop in the community.
In addition, the market will also be the most convenient in the area. The closest competing natural food store to the Willow Creek area is a twenty minute drive.
The Last Frontier Market will give back to the community. We will participate in community projects and host fund-raisers for local community services.
1.1 Objectives
- Provide our customers with the freshest, organically grown fruits and vegetables.
- Offer foods without artificial colors, flavors, or additives.
- Sell earth-friendly cleansers; pure, natural supplements; and gentle, cruelty-free body care products.
- Support organic farms that keep our earth and water pure.
1.2 Mission
The Last Frontier Market is committed to providing the highest quality, fresh and natural food, health and wellness products.  Our staff are friendly, eager to serve and ready to educate.
Company Summary
Last Frontier Market is a vegetarian health food store located in the heart of the Willow Creek section of Richmond. The community of 25,000 residents is made up of students attending the State University and families attracted to the new home construction in the area.
Co-owners, Josh Wingard and Mary Stevens, are opening the Last Frontier Market to capitalize on the growing demand in the community for a local food store that offers organic and locally grown produce, chemical and preservative free groceries, cruelty-free body care and eco-household products.
2.1 Company Ownership
Last Frontier Market is owned by Josh Wingard and Mary Stevens.
2.2 Start-up Summary
The start-up cost of the Last Frontier Market will consist primarily of inventory and display equipment. Josh Wingard and Mary Stevens will invest $80,000. They will also secure a $50,000 SBA loan.
| Start-up Funding | |
| Start-up Expenses to Fund | $77,800 |
| Start-up Assets to Fund | $52,200 |
| Total Funding Required | $130,000 |
| Assets | |
| Non-cash Assets from Start-up | $10,000 |
| Cash Requirements from Start-up | $42,200 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $42,200 |
| Total Assets | $52,200 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $50,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $50,000 |
| Capital | |
| Planned Investment | |
| Josh Wingard and Mary Stevens | $80,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $80,000 |
| Loss at Start-up (Start-up Expenses) | ($77,800) |
| Total Capital | $2,200 |
| Total Capital and Liabilities | $52,200 |
| Total Funding | $130,000 |
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,000 |
| Insurance | $0 |
| Rent | $1,800 |
| Start-Up Inventory | $40,000 |
| Display Set-Up | $5,000 |
| Cash Reserve for Hiring | $30,000 |
| Advertising | $0 |
| Other | $0 |
| Total Start-up Expenses | $77,800 |
| Start-up Assets | |
| Cash Required | $42,200 |
| Other Current Assets | $0 |
| Long-term Assets | $10,000 |
| Total Assets | $52,200 |
| Total Requirements | $130,000 |
Products
The Last Frontier Market will offer customers organic and locally grown produce, chemical- and preservative-free groceries, cruelty-free body care and eco-household products. The products are:
- Free of artificial preservatives.
- Free of artificial colors.
- Free of chemical additives.
- Organically grown, whenever possible.
- The least processed or unadulterated version available.
- Non-irradiated.
- Cruelty free.
Market Analysis Summary
In the past ten years, the Willow Creek section of Richmond has grown tremendously. The growing student community combined with the new families in the area are a perfect customer support base for the Last Frontier Market.
Currently, the area is served by two major supermarkets that do not carry any of the product lines available at the Last Frontier Market. The closest natural food store is a twenty minute drive.
Josh Wingard and Mary Stevens believe that a local natural food store in the Willow Creek area would be competitive and offer customers a product selection that will assure repeat business.
4.1 Market Segmentation
The Last Frontier Market will focus two significant customer groups:
- Families: Many of the young families moving into the Willow Creek area are doing so because of its unique community environment. The community is home to a number of artists and craft people that operate the Willow Creek Craft Fair. This creates a festive environment in the Willow Creek central commercial/retail area that attract shoppers each weekend. Its close proximity to the university also attracts young families where one or both parents are students or employees of the university. These families are a strong customer base for the Last Frontier Market.
- Students: A significant number of students prefer to shop at a natural food store. The Last Frontier Market will be within walking distance for most area residents. Our location will make our store a convenient place to shop on the way home from classes.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Family Members | 15% | 9,000 | 10,350 | 11,903 | 13,688 | 15,741 | 15.00% |
| Students | 10% | 16,000 | 17,600 | 19,360 | 21,296 | 23,426 | 10.00% |
| Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Total | 11.88% | 25,000 | 27,950 | 31,263 | 34,984 | 39,167 | 11.88% |
Strategy and Implementation Summary
The Last Frontier Market will promote the store opening. We will have live music and food in the store’s parking lot for the opening weekend. The Willow Creek Craft Fair is adjacent to our store and we should have excellent foot traffic for our opening.
We will advertise in the university daily student newspaper as well as the local area advertising flyer. In the advertisements for the market opening, we will have a 20% off coupon for purchases over twenty dollars. We will continue this discount for the first month of operation.
The Last Frontier Market will give back to the community. We will participate in community projects like the area’s food bank and community programs for children. The Last Frontier Market will also hosts a number of community events, such as charity pancake brunches, dog washes benefiting local humane societies and benefit barbecues.
5.1 Competitive Edge
The Last Frontier Market’s competitive edge is:
- Location: The Last Frontier Market is located located in the heart of the Willow Creek section of Richmond. The foot traffic in the Willow Creek retail area is very strong. The closest natural food store to the Willow Creek area is a twenty minute drive.
- Community Support: The Last Frontier Market is a community market that will give back to the community. We will participate in community projects like the area’s food bank and community programs for children. The Last Frontier Market will also host a number of community events, such as charity pancake brunches, dog washes benefiting local humane societies and benefit barbecues.
5.2 Sales Strategy
The sales strategy of the Last Frontier Market is simple. The key to customer satisfaction is a community-friendly store that is easy to navigate and has knowledgeable people to help customers find what they want quickly. Customers will linger in the store, reading notices on the community bulletin board or speaking with friends.
5.2.1 Sales Forecast
The following is the Last Frontier Market’s sales forecast for three years.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Sales | $423,000 | $470,000 | $520,000 |
| Others | $0 | $0 | $0 |
| Total Sales | $423,000 | $470,000 | $520,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Sales | $128,220 | $150,000 | $175,000 |
| Others | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $128,220 | $150,000 | $175,000 |
Management Summary
Co-owners, Josh Wingard and Mary Stevens, have fifteen years of experience working in natural food stores.
Mary Stevens was one of the founding members of the Mason Peak Natural Grocery, 4th and Tyler. The grocery was established in 1992 by the non-profit NEDCO, the Neighborhood Economic Development Corporation, and a number of concerned neighbors who wished to save the historic Mason Peak Market from destruction. Mary started as a cashier and advanced to the position of store manager in 1996. The grocery has grown into a community fixture under her management.
Josh Wingard ran the university’s now defunct Natural Food Collective for three years before the program was defunded. The small on-campus store provide natural food products to student customers. Sales increased by 20% each year under his leadership. Unfortunately, the state budget shortfall impacted the continued funding of the program. Prior to this position, Josh worked at Sunburst Natural Foods for four years. His principle responsibilities were product ordering and stocking.
6.1 Management Team
Josh Wingard and Mary Stevens were be the management team for the Last Frontier Market. Mary will be responsible for staffing and daily operations. Josh will be responsible for product ordering, stocking and bookkeeping.
6.2 Personnel Plan
Besides Josh Wingard and Mary Stevens, the last Frontier Market will have a staff of five:
- Three cashiers.
- Two produce staff.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Mary Stevens | $33,600 | $36,000 | $39,000 |
| Josh Wingard | $33,600 | $36,000 | $39,000 |
| Cashiers | $84,000 | $95,000 | $104,000 |
| Produce Staff | $48,000 | $51,000 | $54,000 |
| Total People | 7 | 7 | 7 |
| Total Payroll | $199,200 | $218,000 | $236,000 |
Financial Plan
The following is the Financial Plan for the Last Frontier Market.
7.1 Break-even Analysis
The monthly break-even point is $32,277.
| Break-even Analysis | |
| Monthly Revenue Break-even | $32,277 |
| Assumptions: | |
| Average Percent Variable Cost | 30% |
| Estimated Monthly Fixed Cost | $22,493 |
7.2 Projected Profit and Loss
The following table and charts highlight the projected profit and loss for three years.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $423,000 | $470,000 | $520,000 |
| Direct Cost of Sales | $128,220 | $150,000 | $175,000 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Cost of Sales | $128,220 | $150,000 | $175,000 |
| Gross Margin | $294,780 | $320,000 | $345,000 |
| Gross Margin % | 69.69% | 68.09% | 66.35% |
| Expenses | |||
| Payroll | $199,200 | $218,000 | $236,000 |
| Sales and Marketing and Other Expenses | $7,000 | $10,000 | $13,000 |
| Depreciation | $1,440 | $1,440 | $1,440 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,800 | $4,800 | $4,800 |
| Insurance | $6,000 | $6,000 | $6,000 |
| Rent | $21,600 | $21,600 | $21,600 |
| Payroll Taxes | $29,880 | $32,700 | $35,400 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $269,920 | $294,540 | $318,240 |
| Profit Before Interest and Taxes | $24,860 | $25,460 | $26,760 |
| EBITDA | $26,300 | $26,900 | $28,200 |
| Interest Expense | $4,459 | $3,501 | $2,501 |
| Taxes Incurred | $6,120 | $6,588 | $7,278 |
| Net Profit | $14,281 | $15,372 | $16,981 |
| Net Profit/Sales | 3.38% | 3.27% | 3.27% |
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $105,750 | $117,500 | $130,000 |
| Cash from Receivables | $251,575 | $345,203 | $382,237 |
| Subtotal Cash from Operations | $357,325 | $462,703 | $512,237 |
| 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 | $4,000 | $0 | $0 |
| Subtotal Cash Received | $361,325 | $462,703 | $512,237 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $199,200 | $218,000 | $236,000 |
| Bill Payments | $186,715 | $237,222 | $263,081 |
| Subtotal Spent on Operations | $385,915 | $455,222 | $499,081 |
| 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 | $9,996 | $9,996 | $9,996 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $395,911 | $465,218 | $509,077 |
| Net Cash Flow | ($34,586) | ($2,515) | $3,160 |
| Cash Balance | $7,614 | $5,099 | $8,259 |
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $7,614 | $5,099 | $8,259 |
| Accounts Receivable | $65,675 | $72,972 | $80,735 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $73,289 | $78,071 | $88,994 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $1,440 | $2,880 | $4,320 |
| Total Long-term Assets | $8,560 | $7,120 | $5,680 |
| Total Assets | $81,849 | $85,191 | $94,674 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $21,364 | $19,331 | $21,828 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $21,364 | $19,331 | $21,828 |
| Long-term Liabilities | $40,004 | $30,008 | $20,012 |
| Total Liabilities | $61,368 | $49,339 | $41,840 |
| Paid-in Capital | $84,000 | $84,000 | $84,000 |
| Retained Earnings | ($77,800) | ($63,519) | ($48,147) |
| Earnings | $14,281 | $15,372 | $16,981 |
| Total Capital | $20,481 | $35,853 | $52,834 |
| Total Liabilities and Capital | $81,849 | $85,191 | $94,674 |
| Net Worth | $20,481 | $35,853 | $52,834 |
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5149, Groceries and Related Products, are shown for comparison.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 11.11% | 10.64% | 4.60% |
| Percent of Total Assets | ||||
| Accounts Receivable | 80.24% | 85.66% | 85.28% | 33.30% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 20.90% |
| Total Current Assets | 89.54% | 91.64% | 94.00% | 80.20% |
| Long-term Assets | 10.46% | 8.36% | 6.00% | 19.80% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 26.10% | 22.69% | 23.06% | 45.20% |
| Long-term Liabilities | 48.88% | 35.22% | 21.14% | 10.00% |
| Total Liabilities | 74.98% | 57.92% | 44.19% | 55.20% |
| Net Worth | 25.02% | 42.08% | 55.81% | 44.80% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 69.69% | 68.09% | 66.35% | 44.10% |
| Selling, General & Administrative Expenses | 66.31% | 64.81% | 63.08% | 26.70% |
| Advertising Expenses | 1.65% | 2.13% | 2.50% | 0.70% |
| Profit Before Interest and Taxes | 5.88% | 5.42% | 5.15% | 0.80% |
| Main Ratios | ||||
| Current | 3.43 | 4.04 | 4.08 | 1.69 |
| Quick | 3.43 | 4.04 | 4.08 | 1.01 |
| Total Debt to Total Assets | 74.98% | 57.92% | 44.19% | 55.20% |
| Pre-tax Return on Net Worth | 99.61% | 61.25% | 45.92% | 3.60% |
| Pre-tax Return on Assets | 24.93% | 25.78% | 25.62% | 8.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 3.38% | 3.27% | 3.27% | n.a |
| Return on Equity | 69.73% | 42.87% | 32.14% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.83 | 4.83 | 4.83 | n.a |
| Collection Days | 57 | 72 | 72 | n.a |
| Accounts Payable Turnover | 9.74 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 32 | 28 | n.a |
| Total Asset Turnover | 5.17 | 5.52 | 5.49 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 3.00 | 1.38 | 0.79 | n.a |
| Current Liab. to Liab. | 0.35 | 0.39 | 0.52 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $51,925 | $58,741 | $67,166 | n.a |
| Interest Coverage | 5.58 | 7.27 | 10.70 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.19 | 0.18 | 0.18 | n.a |
| Current Debt/Total Assets | 26% | 23% | 23% | n.a |
| Acid Test | 0.36 | 0.26 | 0.38 | n.a |
| Sales/Net Worth | 20.65 | 13.11 | 9.84 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
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 | ||
| Sales | |||||||||||||
| Sales | 0% | $26,000 | $29,000 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $33,000 | $35,000 | $39,000 | $43,000 | $46,000 |
| Others | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $26,000 | $29,000 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $33,000 | $35,000 | $39,000 | $43,000 | $46,000 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Sales | $9,000 | $9,500 | $9,600 | $10,200 | $10,500 | $11,300 | $10,000 | $10,000 | $11,000 | $12,000 | $12,120 | $13,000 | |
| Others | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $9,000 | $9,500 | $9,600 | $10,200 | $10,500 | $11,300 | $10,000 | $10,000 | $11,000 | $12,000 | $12,120 | $13,000 | |
| 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 | ||
| Mary Stevens | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Josh Wingard | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Cashiers | 0% | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Produce Staff | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Total People | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |
| Total Payroll | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| General Assumptions | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 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 | $26,000 | $29,000 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $33,000 | $35,000 | $39,000 | $43,000 | $46,000 | |
| Direct Cost of Sales | $9,000 | $9,500 | $9,600 | $10,200 | $10,500 | $11,300 | $10,000 | $10,000 | $11,000 | $12,000 | $12,120 | $13,000 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $9,000 | $9,500 | $9,600 | $10,200 | $10,500 | $11,300 | $10,000 | $10,000 | $11,000 | $12,000 | $12,120 | $13,000 | |
| Gross Margin | $17,000 | $19,500 | $20,400 | $23,800 | $25,500 | $26,700 | $24,000 | $23,000 | $24,000 | $27,000 | $30,880 | $33,000 | |
| Gross Margin % | 65.38% | 67.24% | 68.00% | 70.00% | 70.83% | 70.26% | 70.59% | 69.70% | 68.57% | 69.23% | 71.81% | 71.74% | |
| Expenses | |||||||||||||
| Payroll | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Payroll Taxes | 15% | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 | $2,490 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $22,910 | $22,910 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | $22,410 | |
| Profit Before Interest and Taxes | ($5,910) | ($3,410) | ($2,010) | $1,390 | $3,090 | $4,290 | $1,590 | $590 | $1,590 | $4,590 | $8,470 | $10,590 | |
| EBITDA | ($5,790) | ($3,290) | ($1,890) | $1,510 | $3,210 | $4,410 | $1,710 | $710 | $1,710 | $4,710 | $8,590 | $10,710 | |
| Interest Expense | $410 | $403 | $396 | $389 | $382 | $375 | $368 | $361 | $354 | $347 | $340 | $333 | |
| Taxes Incurred | ($1,896) | ($1,144) | ($722) | $300 | $812 | $1,174 | $367 | $69 | $371 | $1,273 | $2,439 | $3,077 | |
| Net Profit | ($4,424) | ($2,669) | ($1,684) | $701 | $1,896 | $2,740 | $855 | $160 | $865 | $2,970 | $5,691 | $7,180 | |
| Net Profit/Sales | -17.01% | -9.20% | -5.61% | 2.06% | 5.27% | 7.21% | 2.52% | 0.49% | 2.47% | 7.62% | 13.23% | 15.61% | |
| 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 | $6,500 | $7,250 | $7,500 | $8,500 | $9,000 | $9,500 | $8,500 | $8,250 | $8,750 | $9,750 | $10,750 | $11,500 | |
| Cash from Receivables | $0 | $650 | $19,575 | $21,775 | $22,600 | $25,550 | $27,050 | $28,400 | $25,475 | $24,800 | $26,350 | $29,350 | |
| Subtotal Cash from Operations | $6,500 | $7,900 | $27,075 | $30,275 | $31,600 | $35,050 | $35,550 | $36,650 | $34,225 | $34,550 | $37,100 | $40,850 | |
| 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 | |
| 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 | $4,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $6,500 | $7,900 | $27,075 | $30,275 | $35,600 | $35,050 | $35,550 | $36,650 | $34,225 | $34,550 | $37,100 | $40,850 | |
| 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 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | $16,600 | |
| Bill Payments | $457 | $13,745 | $14,949 | $15,018 | $16,606 | $17,423 | $18,469 | $16,414 | $16,163 | $17,478 | $19,353 | $20,640 | |
| Subtotal Spent on Operations | $17,057 | $30,345 | $31,549 | $31,618 | $33,206 | $34,023 | $35,069 | $33,014 | $32,763 | $34,078 | $35,953 | $37,240 | |
| 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 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| 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 | $17,890 | $31,178 | $32,382 | $32,451 | $34,039 | $34,856 | $35,902 | $33,847 | $33,596 | $34,911 | $36,786 | $38,073 | |
| Net Cash Flow | ($11,390) | ($23,278) | ($5,307) | ($2,176) | $1,561 | $194 | ($352) | $2,803 | $629 | ($361) | $314 | $2,777 | |
| Cash Balance | $30,810 | $7,532 | $2,224 | $49 | $1,609 | $1,804 | $1,452 | $4,254 | $4,883 | $4,522 | $4,836 | $7,614 | |
| 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 | $42,200 | $30,810 | $7,532 | $2,224 | $49 | $1,609 | $1,804 | $1,452 | $4,254 | $4,883 | $4,522 | $4,836 | $7,614 |
| Accounts Receivable | $0 | $19,500 | $40,600 | $43,525 | $47,250 | $51,650 | $54,600 | $53,050 | $49,400 | $50,175 | $54,625 | $60,525 | $65,675 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $42,200 | $50,310 | $48,132 | $45,749 | $47,299 | $53,259 | $56,404 | $54,502 | $53,654 | $55,058 | $59,147 | $65,361 | $73,289 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $0 | $120 | $240 | $360 | $480 | $600 | $720 | $840 | $960 | $1,080 | $1,200 | $1,320 | $1,440 |
| Total Long-term Assets | $10,000 | $9,880 | $9,760 | $9,640 | $9,520 | $9,400 | $9,280 | $9,160 | $9,040 | $8,920 | $8,800 | $8,680 | $8,560 |
| Total Assets | $52,200 | $60,190 | $57,892 | $55,389 | $56,819 | $62,659 | $65,684 | $63,662 | $62,694 | $63,978 | $67,947 | $74,041 | $81,849 |
| 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 | $0 | $13,247 | $14,451 | $14,465 | $16,027 | $16,805 | $17,922 | $15,877 | $15,582 | $16,834 | $18,666 | $19,903 | $21,364 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $13,247 | $14,451 | $14,465 | $16,027 | $16,805 | $17,922 | $15,877 | $15,582 | $16,834 | $18,666 | $19,903 | $21,364 |
| Long-term Liabilities | $50,000 | $49,167 | $48,334 | $47,501 | $46,668 | $45,835 | $45,002 | $44,169 | $43,336 | $42,503 | $41,670 | $40,837 | $40,004 |
| Total Liabilities | $50,000 | $62,414 | $62,785 | $61,966 | $62,695 | $62,640 | $62,924 | $60,046 | $58,918 | $59,337 | $60,336 | $60,740 | $61,368 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $84,000 | $84,000 | $84,000 | $84,000 | $84,000 | $84,000 | $84,000 | $84,000 |
| Retained Earnings | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) | ($77,800) |
| Earnings | $0 | ($4,424) | ($7,093) | ($8,777) | ($8,076) | ($6,180) | ($3,440) | ($2,585) | ($2,424) | ($1,559) | $1,411 | $7,101 | $14,281 |
| Total Capital | $2,200 | ($2,224) | ($4,893) | ($6,577) | ($5,876) | $20 | $2,760 | $3,615 | $3,776 | $4,641 | $7,611 | $13,301 | $20,481 |
| Total Liabilities and Capital | $52,200 | $60,190 | $57,892 | $55,389 | $56,819 | $62,659 | $65,684 | $63,662 | $62,694 | $63,978 | $67,947 | $74,041 | $81,849 |
| Net Worth | $2,200 | ($2,224) | ($4,893) | ($6,577) | ($5,876) | $20 | $2,760 | $3,615 | $3,776 | $4,641 | $7,611 | $13,301 | $20,481 |
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