[COMPANY NAME]

Business Plan

[NAME]
[ADDRESS]
[CITY, STATE ZIP]
Ph: (XXX) XXX-XXXX
Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [COMPANY NAME] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [COMPANY NAME].

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 [COMPANY
NAME].

Upon request this document is to be immediately returned to [COMPANY NAME].

___________________
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...........................................................................................................................2
1.1 Objectives....................................................................................................................................2
1.2 Mission...........................................................................................................................................2
1.3 Keys to Success.........................................................................................................................3
2.0 Company Summary......................................................................................................................4
2.1 Company Ownership................................................................................................................4
2.2 Company History.......................................................................................................................4
Table: Past Performance............................................................................................................4
Chart: Past Performance............................................................................................................5
3.0 Products............................................................................................................................................6
4.0 Market Analysis Summary.........................................................................................................7
4.1 Market Segmentation..............................................................................................................8
Table: Market Analysis................................................................................................................8
Chart: Market Analysis (Pie).....................................................................................................8
4.2 Target Market Segment Strategy.......................................................................................9
4.3 Industry Analysis.......................................................................................................................9
4.3.1 Competition and Buying Patterns.............................................................................10
5.0 Strategy and Implementation Summary...........................................................................11
5.1 SWOT Analysis.........................................................................................................................11
5.1.1 Strengths............................................................................................................................11
5.1.2 Weaknesses.......................................................................................................................11
5.1.3 Opportunities....................................................................................................................11
5.1.4 Threats................................................................................................................................11
5.2 Competitive Edge....................................................................................................................11
5.3 Marketing Strategy.................................................................................................................12
5.4 Sales Strategy..........................................................................................................................12
5.4.1 Sales Forecast..................................................................................................................12
Table: Sales Forecast............................................................................................................12
Chart: Sales Monthly.............................................................................................................13
Chart: Sales by Year..............................................................................................................13
5.5 Milestones..................................................................................................................................14
Table: Milestones........................................................................................................................14
Chart: Milestones........................................................................................................................14
6.0 Management Summary.............................................................................................................15
6.1 Personnel Plan..........................................................................................................................15
Table: Personnel..........................................................................................................................15
7.0 Financial Plan................................................................................................................................16
7.1 Important Assumptions........................................................................................................16
7.2 Break-even Analysis...............................................................................................................17
Table: Break-even Analysis....................................................................................................17
Chart: Break-even Analysis....................................................................................................17
7.3 Projected Profit and Loss.....................................................................................................18
Table: Profit and Loss................................................................................................................18
Chart: Profit Monthly.................................................................................................................19
Page 1
 Table of Contents

Chart: Profit Yearly.....................................................................................................................19

Chart: Gross Margin Monthly.................................................................................................20
Chart: Gross Margin Yearly.....................................................................................................20
7.4 Projected Cash Flow...............................................................................................................21
Table: Cash Flow.........................................................................................................................21
Chart: Cash...................................................................................................................................22
7.5 Projected Balance Sheet......................................................................................................22
Table: Balance Sheet.................................................................................................................22
7.6 Business Ratios........................................................................................................................24
Table: Ratios.................................................................................................................................24
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................5

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 [COMPANY NAME]

1.0 Executive Summary

[COMPANY NAME]
[NAME]
[ADDRESS]
[CITY, STATE ZIP]
Ph: (XXX) XXX-XXXX

Introduction: [COMPANY NAME] was formed in 2006. [NAME] and [NAME] are here to provide the
best products and services to their customers and community.  In the past four years they have
been able to provide products and services to many local businesses and individuals in the area, like
race car drivers, excavation businesses, real estate agents, churches, fire departments (for two local
towns), tow truck services, and charity events where we donated the vinyl.

Our Services: [COMPANY NAME] provided the following products:

 
 Banners
 Real estate signs
 Magnets
 Sign boards
 Decals
 
Graphics on:
 Cars
 Trucks
 Airplanes
 Semis
 Tow trucks
 Boats

The Market: In 2009, the U.S. sign industry had shipments of $49.5 billion and employed 262,700
employees. The most recent U.S. Census Bureau data (2006) reported “sign manufacturing” as an
$11.7 billion industry. For sign companies and those suppliers selling products and services to sign
companies, accurate information on the profile of the industry is crucial to making informed, well-
founded decisions about how and where to locate facilities, pursue business opportunities, and
develop products to serve new markets.

Financial Considerations: The current financial plan for [COMPANY NAME] is to obtain grant
funding in the amount of $106,000. The grant funds will be used to expand the signage and
Lettering business in the following ways.

 Additional equipment
 Hire additional personal
 Purchase additional equipment needed to expand his business
 Capital reserve

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The major focus for grant funding is as follows:

 50% women owned business
 Job creation

Chart: Highlights

Highlights

$60,000

$50,000

$40,000

$30,000 Sales

Gross Margin
$20,000
Net Profit
$10,000

$0

($10,000)

($20,000)
2011 2012 2013

1.1 Objectives

The objectives are:

1. To put in place adequate, and reliable, administrative machinery, allowing the owners to
spend time selling and maintaining major accounts
2. To concentrate on several selected market sectors that have been researched and found
promising
3. To improve the reliability and timeliness

1.2 Mission

Whether you need a custom vinyl graphic for advertising on your vehicle or need a banner to
send a special message we are here for all your vinyl lettering needs.

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1.3 Keys to Success

Keys to success for the company will include:

1. Maintaining a reputable and untarnished reputation in the community

2. Quality care

3. Competitive pricing

4. Flexible hours

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2.0 Company Summary

[COMPANY NAME] was formed in 2006. [NAME] and [NAME] are here to provide the best
products and services to their customers and community.  In the past four years they have been
able to provide products and services to many local businesses and individuals in the area, like
race car drivers, excavation businesses, real estate agents, churches, fire departments (for two
local towns), tow truck services, and charity events where we donated the vinyl.

2.1 Company Ownership

[COMPANY NAME] is owned and operated by [NAME] and [NAME] since 2006. Both [NAME] and
[NAME] own equal shares of the business.

2.2 Company History

In the past four years they have been able to provide products and services to many local
businesses and individuals in the area, like race car drivers, excavation businesses, real estate
agents, churches, fire departments (for two local towns), tow truck services, and charity events
where we donated the vinyl.

Table: Past Performance

Past Performance
2008 2009 2010
Sales $3,594 $1,250 $4,197
Gross Margin $3,594 $1,250 $4,197
Gross Margin % 100.00% 100.02% 100.00%
Operating Expenses $1,704 $357 $1,160

Balance Sheet
2008 2009 2010

Current Assets
Cash $0 $0 $1,000
Other Current Assets $0 $0 $500
Total Current Assets $0 $0 $1,500

Long-term Assets
Long-term Assets $0 $0 $500
Accumulated Depreciation $0 $0 $127
Total Long-term Assets $0 $0 $373
Total Assets $0 $0 $1,873

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2008 2009 2010

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities (interest $0 $0 $0
free)
Total Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $0 $0 $1,000

Retained Earnings $0 $0 ($2,164)
Earnings $0 $0 $3,037
Total Capital $0 $0 $1,873

Total Capital and Liabilities $0 $0 $1,873

Chart: Past Performance

Past Performance

$4,000

$3,600

$3,200

$2,800 Sales
$2,400 Gross
$2,000
Net
$1,600

$1,200

$800

$400

$0
2008 2009 2010

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3.0 Products

[COMPANY NAME] provided the following products:

 
 Banners
 Real estate signs
 Magnets
 Sign boards
 Decals
 
Graphics on:

 Cars
 Trucks
 Airplanes
 Semis
 Tow trucks
 Boats

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4.0 Market Analysis Summary

In 2009, the U.S. sign industry had shipments of $49.5 billion and employed 262,700
employees. The most recent U.S. Census Bureau data (2006) reported “sign manufacturing” as
an $11.7 billion industry.
 
The following are recent industry data:

 While manufacturing as a whole in the U.S. has experienced steady decline, sign
manufacturing has steadily increased. 
  From 1998-2009, sign manufacturing jobs grew 1.3 percent/year, while employment in all
manufacturing sectors declined. 
  Real value added in sign manufacturing (corrected for inflation) grew 3.3 percent each year
from 1998-2009, exceeding overall manufacturing growth.
 Concentration of sign manufacturing corresponds roughly to population, with California,
Texas and Ohio having the most sign manufacturing jobs. 
 Advertising agencies are important producers of signs, with a larger than expected impact in
overall sign manufacturing.
 The U.S. has a growing trade deficit in sign manufacturing (as with most manufactured
goods). But the deficit is only about one percent of all sign manufacturing production. 
  While sign components are often manufactured outside the United States, the production of
finished signs remains largely insulated from international competition. This occurs, in part,
due to the customized nature of signs and expense associated with shipping discouraging
long-distance production.
 75 percent of U.S. sign imports originate in three countries: China, Canada, and Mexico. 67
percent of U.S. sign exports are bound for Canada and Mexico.

For sign companies and those suppliers selling products and services to sign companies,
accurate information on the profile of the industry is crucial to making informed, well-founded
decisions about how and where to locate facilities, pursue business opportunities, and develop
products to serve new markets. The potential opportunities in a $45 billion marketplace are far
different from an $11.7 billion marketplace.

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4.1 Market Segmentation

The sign industry is in a boom period. While there are many items from various sign
companies available, [COMPANY NAME] has approached the market as a specialty designer.

The target customer in this segment will be wide range of small to mid-size business as well as
the car and trucking industry but the most important target customers are
businesses. [COMPANY NAME]  will be able to serve this customer well not only by offering
them signs and other products at an affordable price, but also by giving them advice that
ensures they get the task done correctly, therefore improving their marketing efforts.

Table: Market Analysis

Market Analysis
2011 2012 2013 2014 2015
Potential Growth CAGR
Customers
Business 7% 1,625 1,739 1,861 1,991 2,130 7.00%
Individual 4% 1,652 1,718 1,787 1,858 1,932 3.99%
Other 5% 981 1,030 1,082 1,136 1,193 5.01%
Total 5.40% 4,258 4,487 4,730 4,985 5,255 5.40%

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Business

Individual

Other

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4.2 Target Market Segment Strategy

Price, reputation, service and certification are critical success factors in the sign and
vinyl industry.  [COMPANY NAME] will compete well in this market by offering competitive prices,
high-quality services, and overall customer satisfaction. 

Referral marketing is the key type of marketing strategy utilized. Maintaining and further
enhancing its reputation in the community is crucial to gaining additional market share of this
target market.

4.3 Industry Analysis

Today's sign industry is a significant and growing part of the U.S. and global economies. As the
lowest cost form of advertising, on-premise signs are the first - and often the only - regular
advertising expense for small businesses. Even with large investments in signage made by national
companies, the majority of sign customers are individuals and small business owners.

The need to provide unique advertising products for individual businesses has caused the sign
industry to evolve differently than most other manufacturing sectors. While most manufacturing
sectors are dominated by a few large companies, the sign industry is quite decentralized, with
several thousand small manufacturers spread throughout every population center.

Some of the defining characteristics of the sign industry are:

 Small manufacturers (less than 20 employees) typically serving a localized customer base
 Most plants designed to build signs individually or in short production runs
 Manufacturers often specialized in specific types of signs (electric, carved/routed,
architectural, digital printing)
 In addition to the parts of the sign industry focused on custom production, several dozen sign
companies operate with a more national focus, specializing in the quantity production of signs
for individual clients - typically national retailers, petroleum companies, and large banks.

Supplying this base of several thousand sign companies are manufacturers and distributors of sign
products and components. Among the industrial sectors whose products are incorporated into sign
manufacturing are electrical components, large-format digital printers, inks, lamps, electronic
displays, paints and coatings, vinyl, polycarbonate, adhesives, aluminum, structural steel, heavy
trucks, and more.

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 [COMPANY NAME]

4.3.1 Competition and Buying Patterns

The consumer buying process is a complex matter as many internal and external factors have an
impact on the buying decisions of the consumer. When purchasing a product there are several
processes, which consumers go through.
 
The common reason for buyers to purchase a service or product from a signage and or vinyl
company is as follows:
 
Advertising Displays - Any location-based display that carries advertising, including remotely
updateable signage, but advertising displays can also be End Caps, ATM Toppers, Posters,
Billboards, Point-of-purchase displays (pop displays), Cardboard displays, etc.
 
Create a brand name - The identity of a product or service, developed over a period of time by
using recurring graphics, themes and logo. Branding provides for almost instant product
recognition based on a visual or audio byte. Having a brand can also demonstrate that your
company is a major player in your industry.
 
Captive Audience – An audience that is stationary and remains in view of a screen for a period
of time. Examples include transport (taxis, buses, trains etc.), in-flight advertising on seat-back
entertainment systems, overhead storage bins and tray tables. This classification also includes a
lot of ‘leisure’ installations; typically restaurants, hair salons, pubs, clubs, bars, casinos, etc. 

Daily Effective Circulation (DEC) – Based on the average number of persons potentially
exposed to an advertising display for either 12 hours (non-illuminated- 6am-6pm) or 18 hours
(illuminated- 6am-12 midnight).

Media Mix – The combination of all media types used together to meet the objectives of a
media plan. Out-of-home media tends to enhance the overall effectiveness of various media
mixes, particularly by cost-effectively increasing reach and frequency.

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5.0 Strategy and Implementation Summary

[COMPANY NAME] has clearly defined the target market and has differentiated the Company by
offering a solid solution to fulfilling its customers' needs. Reasonable sales targets have been
established with an implementation plan designed to ensure the goals set forth below are
achieved. 

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing Interior Views.

5.1.1 Strengths

 Strong relationships with clients that require special product requirements.

 Excellent and stable staff, offering personalized customer service.
 Great retail space that offers flexibility with a positive and attractive, inviting atmosphere. 
 Good referral relationships
 High customer loyalty among repeat and high-dollar purchase customers.

5.1.2 Weaknesses

 Access to additional operating capital.

 Challenges of the seasonality of the business.

5.1.3 Opportunities

 Growing market with a significant percentage of our target market still not knowing we exist.
 Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach.
 Increasing sales opportunities beyond our "20-mile" target area.
 Internet potential for selling products to other markets.

5.1.4 Threats

 Additional downturn in the economy

 Expansion of national signage companies into the local market
 Continued price pressure due to competition or the weakening market reducing contribution
margins.
 Dramatic changes in signs or vinyl, including colors and styles, creates obsolete or less
profitable inventory.

5.2 Competitive Edge

Our advantage over our competition is that we are a small business, that does not have a lot of
overhead and we can provide our products and services to other small businesses and
individuals who would be waiting behind the bigger businesses to have their items completed
before theirs.  Since we are open 7 days a week, we can turn our products and services around
in a faster time frame than the larger competition and our customer love that about us.  Also we
are very affordable for these smaller business and individuals.

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5.3 Marketing Strategy

Currently we advertise by having our business name on our vehicles, have an advertising sign at
the end of our driveway and word of mouth by our customers.  Our plans for advertising in the
near future are to expand to the local phone book, [COUNTY] business advertising magazine and
local community newspapers.

5.4 Sales Strategy

All potential sales will be attended to in a timely fashion. While there will be a sales incentive
bonus program, long-term salesperson relationships will take precedence over sales closures.
Our goal is that 50% of our customers return within six months. We will market directly to the
customer through mailings, phone calls, business presentations, and Internet/email contact.
Special orders will be encouraged as a method to satisfy a specialized need.

Gathering key customer information and seeking performance feedback on the products and
services offered will assist us in the following ways:

 Targeting our marketing efforts more effectively.

 Developing product offers and merchandising formats that will increase sales.
 Developing new products that enhance the buying experience.
 Training and developing sales associates in order to effectively service the customer.
 Develop future sales opportunities that allow for continued growth of the business.

5.4.1 Sales Forecast

Marketing and sales are forever changing beasts and what works for one market might not for
another. The signage and lettering industry is another beast that changes from month to month
and quarter to quarter. So you would need to in tune with your prospective clients needs and
how the market is affecting their needs so that you will be able to entice them to listen to you on
the phone, read your filers and brochures, pick you out of the other signage companies listed in
the phone book, etc.

Note that we list no direct cost of sales. This is standard for the signage and vinyl industry, since
all supplies are handled as monthly supply orders, not inventory. These expenses can be found
in the projected Profit and Loss statement.

Table: Sales Forecast

Sales Forecast
2011 2012 2013
Sales
Signage $10,875 $20,000 $35,000
Graphics $8,144 $12,000 $19,000
Other $1,488 $2,000 $5,000
Total Sales $20,507 $34,000 $59,000

Direct Cost of Sales 2011 2012 2013

Signage $0 $0 $0
Graphics $0 $0 $0
Other $0 $0 $0

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 [COMPANY NAME]

Subtotal Direct Cost of Sales $0 $0 $0

Chart: Sales Monthly

Sales Monthly

$2,400

$2,100

$1,800
Signage
$1,500
Graphics
$1,200
Other
$900

$600

$300

$0
Jan Mar May Jul Sep Nov
Feb Apr Jun Aug Oct Dec

Chart: Sales by Year

Sales by Year

$60,000

$50,000

Signage
$40,000
Graphics
$30,000 Other

$20,000

$10,000

$0
2011 2012 2013

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 [COMPANY NAME]

5.5 Milestones

The following milestones layout the following accomplishment and dates that will be met by
[COMPANY NAME]:

 Secure grant
 Purchase additional equipment
 Hire new employee
 New marketing plan

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Secure grant 3/1/2011 3/8/2011 Owners CEO
Secure equipment 3/14/2011 3/31/2011 $35,000 Owners CEO
Hire one new 4/4/2011 4/3/2012 $16,640 Owners CEO
employee
Marketing plan 3/21/2011 12/31/2011 $26,100 Owners CEO
Totals $77,740

Chart: Milestones

Milestones

Secure grant

Secure equipment

Hire one new employee

Marketing plan

Q2 Q3 Q4 Q1 `12

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6.0 Management Summary

[NAME] and [NAME] will handle the financial side of the business; [NAME] handles all the
paperwork and computer operations (software and hardware).  [NAME] also handles the sales
portion of the business.  [NAME] has owned a previous business, where he had people on a
payroll, handled sales, executed the work and communicated with his customers.  [NAME] has
over 26 years of Information Technology experience, that range from banking where she
processed payroll and mortgage loans, a marketing consulting firm training people for software
upgrades and handling hardware upgrades as well and most recently an insurance company
where she helped people with system issues, do presentations and need to communicate
effectively both over the phone and in person.

6.1 Personnel Plan

Currently, [COMPANY NAME] employs two people, the owners, [NAME] and [NAME].  As a result
of the grant the owners will create an assistant position.  This position would be helping with the
designing artwork, preparing and applying the vinyl. [COMPANY NAME] is owned by a husband
and wife with income, and expenses shown on their personal tax returns, the Company does pay
a small part-time salary to the one employee, but does not take a draw or salary. The owners
will take distributions from excess cash flow.

Table: Personnel

Personnel Plan
2011 2012 2013
Employees $7,794 $11,000 $15,000
Total People 3 3 3

Total Payroll $7,794 $11,000 $15,000

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7.0 Financial Plan

The current financial plan for [COMPANY NAME] is to obtain grant funding in the amount of
$106,000. The grant will be used to purchase new equipment, supplies, and office equipment as
well as the working capital needed to insure a successful company. 

The following sections of this plan will serve to describe the Company's financial plan in more
detail:

 General Assumptions
 Break-even Analysis
 Profit and Loss
 Cash Flow
 Balance Sheet
 Ratios

7.1 Important Assumptions

[COMPANY NAME] owned personally by [NAME] and [NAME] will be taxed accordingly, estimated
at a 10% tax rate. Depreciation expense is calculated using straight-line depreciation and is
based on the scheduled additions in the Milestones Table and depreciation on existing
properties. Insurance, utilities and all other expenses assume a 5% increase due to inflation &
other cost variables.

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7.2 Break-even Analysis

For the Company's break-even analysis for the first year of operations, the monthly revenue
break-even is projected to be $3,571. 

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $3,571

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $3,571

Chart: Break-even Analysis

Break-even Analysis
$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

$0 $1,200 $2,400 $3,600 $4,800 $6,000

$600 $1,800 $3,000 $4,200 $5,400 $6,600

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7.3 Projected Profit and Loss

The Forma Profit and Loss statement was constructed based in large part on the results in 2010,
the economic market conditions in the last 18 months, expansion of the existing business and
investments in marketing and advertising.  
 
The sales for 2011, 2012, and 2013 are $20,507, $34,000, and $59,000, respectively. The
Company will show a Net loss for 2011, of ($22,344), and a net gain of $6,719 and $23,639 for
2012, and 2013, respectively due to the internal expansion of the Company to launch the
marketing, sales and operation efforts needed to take advantage of the market and growth in
the future years. The Operating Expenses and Net Profit to Sales for the 2011 to 2013 period are
affected by the internal expansion of the Company. Net Profit and Net Profit to Sales Percentage
will continue to rise in future years as the internal expansion and investments in Marketing and
Advertising bear fruit.

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $20,507 $34,000 $59,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $20,507 $34,000 $59,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $7,794 $11,000 $15,000
Marketing/Promotion $26,100 $2,500 $2,500
Depreciation $3,213 $4,285 $4,285
Rent $0 $1,200 $1,400
Utilities $1,500 $1,900 $2,200
Payroll Taxes $1,169 $1,650 $2,250
Office equipment $1,125 $1,500 $1,600
Supplies $1,950 $2,500 $3,500

Total Operating Expenses $42,851 $26,535 $32,735

Profit Before Interest and Taxes ($22,344) $7,465 $26,265

EBITDA ($19,131) $11,750 $30,550
Interest Expense $0 $0 $0
Taxes Incurred $0 $747 $2,627

Net Profit ($22,344) $6,719 $23,639

Net Profit/Sales -108.96% 19.76% 40.07%

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Chart: Profit Monthly

Profit Monthly

$400

$0

($400)

($800)

($1,200)

($1,600)

($2,000)

($2,400)

($2,800)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Profit Yearly

Profit Yearly

$20,000

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)

($15,000)

($20,000)
2011 2012 2013

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Chart: Gross Margin Monthly

Gross Margin Monthly

$2,400

$2,100

$1,800

$1,500

$1,200

$900

$600

$300

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Gross Margin Yearly

Gross Margin Yearly

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
2011 2012 2013

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 [COMPANY NAME]

7.4 Projected Cash Flow

[COMPANY NAME] has applied for a grant of $106,000 The Company forecast that it'll receive
$106,000 in the month of March 2011. Upon receipt of grant funding, the Company will expand
its medical services. The following table displays the Company's cash flow, and the chart
illustrates monthly cash flow in the first year.

Monthly cash flow projections are also included in the appendix.

Table: Cash Flow

Pro Forma Cash Flow

2011 2012 2013
Cash Received

Cash from Operations

Cash Sales $20,507 $34,000 $59,000
Subtotal Cash from Operations $20,507 $34,000 $59,000

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 $106,000 $0 $0
Subtotal Cash Received $126,507 $34,000 $59,000

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $39,638 $22,997 $31,077
Subtotal Spent on Operations $39,638 $22,997 $31,077

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 $35,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $74,638 $22,997 $31,077

Net Cash Flow $51,869 $11,004 $27,924

Cash Balance $52,869 $63,872 $91,796

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Chart: Cash

Cash
$80,000

$70,000

$60,000

$50,000
Net Cash Flow
$40,000
Cash Balance
$30,000

$20,000

$10,000

$0
Jan Mar May Jul Sep Nov
Feb Apr Jun Aug Oct Dec

7.5 Projected Balance Sheet

Net worth is $85,529, $92,247, and $115,886 for 2011, 2012, and 2013, respectively. The
Company's total assets at the end of 2011, 2012, and 2013 will be $85,529, $92,247, and
$115,886, respectively. The balance sheet shows healthy growth of net worth, and strong
financial position. The monthly estimates are included in the appendix.

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets

Current Assets
Cash $52,869 $63,872 $91,796
Other Current Assets $500 $500 $500
Total Current Assets $53,369 $64,372 $92,296

Long-term Assets
Long-term Assets $35,500 $35,500 $35,500
Accumulated Depreciation $3,340 $7,625 $11,910
Total Long-term Assets $32,160 $27,875 $23,590
Total Assets $85,529 $92,247 $115,886

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Liabilities and Capital 2011 2012 2013

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $107,000 $107,000 $107,000

Retained Earnings $873 ($21,471) ($14,753)
Earnings ($22,344) $6,719 $23,639
Total Capital $85,529 $92,247 $115,886
Total Liabilities and Capital $85,529 $92,247 $115,886

Net Worth $85,529 $92,247 $115,886

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7.6 Business Ratios

The table below presents the projected business ratios from the signage and vinyl Industry as a
reference with sales below $500,000.

Table: Ratios

Ratio Analysis
2011 2012 2013 Industry
Profile
Sales Growth 388.61% 65.80% 73.53% 0.17%

Percent of Total Assets

Other Current Assets 0.58% 0.54% 0.43% 26.17%
Total Current Assets 62.40% 69.78% 79.64% 77.28%
Long-term Assets 37.60% 30.22% 20.36% 22.72%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 52.64%

Long-term Liabilities 0.00% 0.00% 0.00% 15.21%
Total Liabilities 0.00% 0.00% 0.00% 67.85%
Net Worth 100.00% 100.00% 100.00% 32.15%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 34.67%
Selling, General & Administrative 208.96% 80.24% 59.93% 16.39%
Expenses
Advertising Expenses 127.27% 7.35% 4.24% 0.62%
Profit Before Interest and Taxes -108.96% 21.96% 44.52% 4.06%

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Main Ratios
Current 0.00 0.00 0.00 1.36
Quick 0.00 0.00 0.00 0.83
Total Debt to Total Assets 0.00% 0.00% 0.00% 67.85%
Pre-tax Return on Net Worth -26.12% 8.09% 22.66% 34.09%
Pre-tax Return on Assets -26.12% 8.09% 22.66% 10.96%

Additional Ratios 2011 2012 2013

Net Profit Margin -108.96% 19.76% 40.07% n.a
Return on Equity -26.12% 7.28% 20.40% n.a

Activity Ratios
Accounts Payable Turnover 9.47 12.17 12.17 n.a
Total Asset Turnover 0.24 0.37 0.51 n.a

Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a

Liquidity Ratios
Net Working Capital $53,369 $64,372 $92,296 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 4.17 2.71 1.96 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 0.24 0.37 0.51 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Signage $350 $295 $325 $898 $943 $990 $1,040 $1,092 $1,147 $1,204 $1,264 $1,327
Graphics $150 $170 $195 $692 $727 $763 $801 $841 $883 $927 $973 $1,022
Other $50 $50 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171
Total Sales $550 $515 $630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Signage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Graphics $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Employee $0 $0 $0 $866 $866 $866 $866 $866 $866 $866 $866 $866
Total People 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll $0 $0 $0 $866 $866 $866 $866 $866 $866 $866 $866 $866

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 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $550 $515 $630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $550 $515 $630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $0 $0 $0 $866 $866 $866 $866 $866 $866 $866 $866 $866
Marketing/Promotion $0 $0 $0 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900
Depreciation $0 $0 $0 $357 $357 $357 $357 $357 $357 $357 $357 $357
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities 15% $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Payroll Taxes 15% $0 $0 $0 $130 $130 $130 $130 $130 $130 $130 $130 $130
Office equipment 15% $0 $0 $0 $125 $125 $125 $125 $125 $125 $125 $125 $125
upplies 15% $50 $50 $50 $200 $200 $200 $200 $200 $200 $200 $200 $200

Total Operating $175 $175 $175 $4,703 $4,703 $4,703 $4,703 $4,703 $4,703 $4,703 $4,703 $4,703
Expenses

Profit Before Interest and $375 $340 $455 ($2,997) ($2,911) ($2,822) ($2,728) ($2,629) ($2,525) ($2,417) ($2,303) ($2,183)
Taxes
EBITDA $375 $340 $455 ($2,640) ($2,554) ($2,465) ($2,371) ($2,272) ($2,168) ($2,060) ($1,946) ($1,826)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit $375 $340 $455 ($2,997) ($2,911) ($2,822) ($2,728) ($2,629) ($2,525) ($2,417) ($2,303) ($2,183)
Net Profit/Sales 68.18% 66.02% 72.22% -175.67% -162.44% -150.02% -138.12% -126.76% -115.93% -105.73% -95.95% -86.62%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received

Cash from Operations

Cash Sales $550 $515 $630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520
Subtotal Cash from Operations $550 $515 $630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520

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 $106,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $550 $515 $106,630 $1,706 $1,792 $1,881 $1,975 $2,074 $2,178 $2,286 $2,400 $2,520

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from Operations

Cash Spending $175 $175 $175 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346
Subtotal Spent on Operations $175 $175 $175 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346

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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $35,000 $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 $175 $175 $35,175 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346 $4,346

Net Cash Flow $375 $340 $71,455 ($2,640) ($2,554) ($2,465) ($2,371) ($2,272) ($2,168) ($2,060) ($1,946) ($1,826)
Cash Balance $1,375 $1,715 $73,170 $70,530 $67,976 $65,511 $63,140 $60,869 $58,701 $56,641 $54,695 $52,869

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 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

Current Assets
Cash $1,000 $1,375 $1,715 $73,170 $70,530 $67,976 $65,511 $63,140 $60,869 $58,701 $56,641 $54,695 $52,869
Other Current Assets $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total Current Assets $1,500 $1,875 $2,215 $73,670 $71,030 $68,476 $66,011 $63,640 $61,369 $59,201 $57,141 $55,195 $53,369

Long-term Assets
Long-term Assets $500 $500 $500 $35,500 $35,500 $35,500 $35,500 $35,500 $35,500 $35,500 $35,500 $35,500 $35,500
Accumulated Depreciation $127 $127 $127 $127 $484 $841 $1,198 $1,555 $1,912 $2,269 $2,626 $2,983 $3,340
Total Long-term Assets $373 $373 $373 $35,373 $35,016 $34,659 $34,302 $33,945 $33,588 $33,231 $32,874 $32,517 $32,160
Total Assets $1,873 $2,248 $2,588 $109,043 $106,046 $103,135 $100,313 $97,585 $94,957 $92,432 $90,015 $87,712 $85,529

Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Current Liabilities
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Paid-in Capital $1,000 $1,000 $1,000 $107,000 $107,000 $107,000 $107,000 $107,000 $107,000 $107,000 $107,000 $107,000 $107,000
Retained Earnings ($2,164) $873 $873 $873 $873 $873 $873 $873 $873 $873 $873 $873 $873
Earnings $3,037 $375 $715 $1,170 ($1,827) ($4,738) ($7,560) ($10,288) ($12,916) ($15,441) ($17,858) ($20,161) ($22,344)
Total Capital $1,873 $2,248 $2,588 $109,043 $106,046 $103,135 $100,313 $97,585 $94,957 $92,432 $90,015 $87,712 $85,529
Total Liabilities and Capital $1,873 $2,248 $2,588 $109,043 $106,046 $103,135 $100,313 $97,585 $94,957 $92,432 $90,015 $87,712 $85,529

Net Worth $1,873 $2,248 $2,588 $109,043 $106,046 $103,135 $100,313 $97,585 $94,957 $92,432 $90,015 $87,712 $85,529

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