Business Plan

Executive Summary
AuctionShipper is a start-up packaging and shipping organization that caters
to online auctions such as eBay as well as offering regular shipping services
to walk-in customers. AuctionShipper will be known as the reasonably priced,
environmentally sensitive, convenient service provider.
AuctionShipper has identified three keys of success that will be instrumental
in its sustainable success. The first is to provide a market-needed service
which it will accomplish by offering reasonably priced packaging and
shipping services. The second will be to ensure its services are as convenient
as possible. If it is not the most convenient solution, then people will not
become long-term customers. The last is the use of strict financial controls.
AuctionShipper will target three customer segments, new eBay users and
more advanced eBay users. Each group will have different compelling
reasons as to why they use AuctionShipper. Recognizing that these are two
distinct groups, they will targeted differently. The new eBay users have
11,216 potential users with a 15% growth rate, while the advanced users
have 8,097 potential customers with a 9% yearly growth rate. The last group
will be all other customers with a growth rate of 7% and 23,221 potential
customers.
AuctionShipper faces two different types of competition. The first type of
competition is from mom and pop shops that offer packaging and shipping as
an additional service beyond the core service offerings. These type of shops
typically offer shipping as an auxiliary service. The second form of
competition is from franchise operations that focus on packaging and
shipping. There are many different competitors in this space and as a
general rule have high priced shipping options. These service providers
appeal to someone who values convenience and is willing to pay for it.
AuctionShipper is lead by Jack Paacker, a seasoned entrepreneur who started
his first business while still in college. Jack will be successful in leveraging his
experience of operating his own business with the skills taught to him while
he was pursuing his MBA. His experience and education will be heavily
valued in assuring the success of AuctionShipper. AuctionShipper will
achieve $185,000 in revenue for year two, rising to $285,000 for year three.

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1.1 Objectives
 Become the premier auction shipping service.
 Reach profitability within the first two years.
 Achieve market penetration of 15% by year three.
1.2 Mission
AuctionShipper’s mission is to become the premier auction shipping service.
This will be achieved by offering reasonable prices, fast and environmentally
sound service, and maintaining 100% customer satisfaction.
1.3 Keys to Success
 Provide a market-needed service.
 Be as convenient as possible.
 Employ strict financial controls.

Company Summary
AuctionShipper is a new eBay users, Detroit-based shipper who concentrates
in auction-based shipping services. AuctionShipper offers the most
convenient, inexpensive, environmentally sound shipping service. Through
environmentally sound practices such as using only recycled shipping
materials, AuctionShipper is able to offer competitive pricing that is easily
able to undercut competing services.
2.1 Start-up Summary
AuctionShipper will require the following items for business start-up:
 Cash register;
 Fax machine;
 Computer system with printer, broadband Internet connection, bar
code scanner, and assorted software;
 Office furniture;
 Three 5″x20″ counter tops;
 Neon sign;
 Assorted office and packing supplies.

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Start-up Funding
Start-up Expenses to Fund $6,275
Start-up Assets to Fund $63,72
5
Total Funding Required $70,00
0
Assets
Non-cash Assets from Start-up $4,000
Cash Requirements from Start- $59,72
up 5
Additional Cash Raised $0
Cash Balance on Starting Date $59,72
5
Total Assets $63,72
5
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding $0
Bills)
Other Current Liabilities $0
(interest-free)
Total Liabilities $0
Capital
Planned Investment
Investor 1 $30,00
0
Investor 2 $40,00
0
Additional Investment $0
Requirement
Total Planned Investment $70,00
0
Loss at Start-up (Start-up ($6,27
Expenses) 5)
Total Capital $63,72
5
Total Capital and Liabilities $63,72
5
Total Funding $70,00
0
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Start-up
Requirements
Start-up Expenses
Legal $1,00
 0
Stationery etc. $250
Brochures $200
Consultants $2,00
0
Insurance $125
Rent $700
Expensed $2,00
Equipment 0
Total Start-up $6,27
Expenses 5
Start-up Assets
Cash Required $59,7
25
Other Current $0
Assets
Long-term Assets $4,00
0
Total Assets $63,7
25
Total Requirements $70,0
00
2.2 Company Ownership
AuctionShipper is a sole proprietorship owned by John Paacker.

Services
AuctionShipper offers shipping services, similar to MailBoxes Plus, but geared
for auction-based transactions. AuctionShipper will only use recycled, re-
used shipping materials for packaging as well as for the containers as well.
This serves two very important functions. The first is the ability to
significantly decrease the costs involved with packaging since all packaging
materials are free. They are collected from nearby retailers that would
otherwise throw them out. It also serves a business philosophy/marketing
edge by being as environmentally sustainable in normal business operations
as possible. By using only recycled materials, AuctionShipper is reducing
waste, re-using materials, and not consuming any new eBay users shipping
materials.
The services will be geared toward auction transactions where the customer
drops off an item that they need packaged and sent. This is ideal for auction
transactions as these types of products often do not have original boxes for
the sold items and also there is the compelling need to keep the price of
packaging/shipping down as much as possible. Having a fast service for
packaging and shipping products will help create incentives for people to
increase the number of items that they sell the easier it is to package and
send an item, the increased likelihood a person will have for selling
increasingly more things on eBay. Customers who are interested in shipping
items that are non-auction items will be happily serviced as well.
In order to make the customer’s experience as convenient as possible,
customers will be offered a key chain based bar code. This bar code will
contain payment information, shipping preferences, etc. In order to complete
the transaction, AuctionShipper only needs the shipping address, everything
else is scanned into the computer via the bar code. This system allows
AuctionShipper to service customers with unusual speed.
Customers will be able to choose all the different shipping services such
USPS, UPS and Fed Ex.

Market Analysis Summary

AuctionShipper will be going after two distinct market segments for their
business: new eBay users and advanced eBayers. eBay is a fairly new eBay
users online auction which has created its own market by developing a huge,
successful, online auction. Starting from nothing, eBay has developed a site
where millions upon millions of users buy and sell new eBay users and used
items online. Suddenly, with the creation of eBay, there is a wonderful
market where almost anything can be bought or sold. Looking for a bike part,
a piece of Nambe sculpture, a Patagonia jacket, whatever, it is available to
be bought or sold on eBay.
AuctionShipper will service three different customer groups, new eBay users,
advanced eBay users, and a catch all category of general customers.
AuctionShipper will be a convenient service for new eBay users. For the
advanced user, it will offer a fast solution that is cost effective and allows
advanced users to sell more items on eBay since their time is freed up from
the packaging chores. AuctionShipper will also service non-auction walk-in
customers.
The market for auction shipping is huge. There are millions of active
members of eBay and 99% of all transactions are exchanged through some
sort of shipping service. The ability to tap into this huge market is a
wonderful market opportunity.
4.1 Market Segmentation
 New eBay users: These people are fairly new eBay users to the online
auctions. They may have been purchasers for a while, but they are just
getting into the selling aspect of auctions. Having a service that will
package the items sold will be a valued service, making it easier for
the person to transition into an online auction seller.
 Advanced online sellers: This is a market segment of active sellers on
eBay. Offering a packaging and shipping service that is inexpensive
and convenient will be quite appealing to a seller who would like to
 increase the number of items they sell on eBay but cannot because of
the time it takes to package and ship the items. Most seasoned sellers
would be more than happy to pay several dollars to have someone
package items for them.
 Others: This market segment is a catch all category of non-auction
customers who desire to ship packages. Often these people are either
sending an item to a friend or business, or a maybe returning a mail
order purchase. This category of people has similar demographics to a
Mail Boxes Plus customer except they might have cost or
environmental sensitivities.

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Market Analysis
Potential Growt CAGR
Customers h
New Users 15% 11,21 12,89 14,83 17,05 19,61 15.00
6 8 3 8 7 %
Advanced Users 9% 8,097 8,826 9,620 10,48 11,43 9.00%
6 0
Others 9% 23,22 25,31 27,58 30,07 32,77 9.00%
1 1 9 2 8
Total 10.68 42,53 47,03 52,04 57,61 63,82 10.68
% 4 5 2 6 5 %
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4.2 Target Market Segment Strategy
AuctionShipper will use a grassroots approach to segmenting the market.
AuctionShipper will be active in the different usergroups and bulletin boards
that are quite active within the eBay community. By being active on these
communication systems specific to eBay, AuctionShipper will generate
awareness among the perspective customers. AuctionShipper will also
segment its customers through local advertising that will be aimed more at
the beginner users who are less active on the bulletin boards, etc.
4.3 Service Business Analysis
The general packaging/shipping industry is composed of both mom/pop
stores as well as franchises. The mom and pop outfits often offer other
services beyond shipping, packaging and shipping are offered as a value-
added proposition. Also participating in the industry are the franchises like
Mail Boxes Plus and MailBox, Etc. These retail organizations offer general
packaging and shipping services, they do not cater to auctions specifically.
Currently, there is no other organization that is going after auction-specific
packaging and shipping.
4.3.1 Competition and Buying Patterns
The competition comes in two general forms:
 Mom and pop stores: These stores typically offer additional services
beyond packaging and shipping. They typically have another line of
business and since they already ship UPS they have decided to offer
shipping as a value-added service beyond their core competencies.
 Franchises: These types of stores have packaging and shipping as their
primary services, with other services such as fax service and private
mail boxes in addition to the primary shipping business.
The buying patterns of customers are based on convenience. Convenience is
based on services offered such as packaging in addition to shipping, hours of
operation, etc. Price is a factor to some degree, however most of the
businesses charge a premium. AuctionShipper believes that customers will
become more price sensitive when a realistic option becomes available that
is significantly cheaper than the current competition.

Strategy and Implementation Summary

AuctionShipper’s strategy is to become visible to the targeted perspective
customers. AuctionShipper has a strong competitive edge of price and
environmental sensitivity and it will attempt to exploit this as much as
possible to gain new eBay users customers. Exploiting the environmental
aspect of its business is an added marketing bonus because while it does
have valuable marketing potential, there are underlying economic reasons to
be environmentally sound. The key to the sales strategy will be getting
customers to try out AuctionShipper’s services. AuctionShipper has the firm
belief that the conversion ratio from a first time customer to a long-term
customer will be between 60%-70%. AuctionShipper is confident that this is a
reasonable goal to aim for due to its excellent prices and customer service.
5.1 Competitive Edge
AuctionShipper has two competitive edges:
 Convenience: This competitive edge is made up of many different
elements such as convenient hours of operation, convenient location
and convenience in terms of the overall experience which is based on
how quickly customers move through the process of having
AuctionShipper package and ship their product.
 Environmental sensitivity: This is a significant advantage because most
competitors cannot have the same commitment to the environment. It
is rare for a shipper to be able to use 100% recycled materials.
Appearance is the main driver to this decision. Recycled products will
 not have the fresh, crisp look of brand new shipping materials, which is
a problem for most shippers as their packaging solution must appear
professional. It is more important for AuctionShipper’s products to give
off the appearance of environmental sensitivity instead of
professionalism. The real customer is the shipper, not the receiver,
therefore, there is a significant market population that is willing to
accept packaging that is not brand new eBay users in exchange for not
having to create extra waste in landfills.
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5.2 Marketing Strategy
AuctionShipper will deploy a multi-pronged marketing approach in an effort
to generate awareness among potential customers:
 Location: The choice of location was made based on the need to
capture walk-by-traffic. Having a convenient, prominent location in an
area with significant walk-by-traffic is one method of marketing.
 Participation in bulletin boards/user groups specific to auctions: Being
prominent on these community communication tools is a great and
inexpensive way for developing awareness of AuctionShipper’s
services.
 Advertisements: While not as targeted, advertisements in the city new
eBay users paper will be an effective marketing tool.
5.3 Sales Strategy
The sales strategy will be based on the conversion of first time customers
into regular customers. This strategy can be successful if AuctionShipper
offers a compelling, pleasant service. One way of achieving this goal is
adhering to the business philosophy of 100% customer satisfaction. If
AuctionShipper is attentive to ensuring that all customers have their
expectations exceeded, then it will be easy to develop long-term customers.
One method of achieving customer satisfaction is the awareness of the
competitive environment. By being aware of the services that are offered by
the competitors, it will be much easier for AuctionShipper to stand out as a
preferred service provider. This sales strategy is based on the business
philosophy that it is less expensive to maintain current customers than it is
to attract new eBay users ones.
5.3.1 Sales Forecast
AuctionShipper has forecasted sales to be fairly slow for the first four
months. This can be explained by the fact that AuctionShipper is a start-up
business and there is a learning curve for new eBay users customers to
become aware of the services offered. First year sales revenue are
forecasted to reach $120,000 with year three revenue hitting $284,000.
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Sales Forecast
Sales
New Users $36,49 $55,98 $86,03
4 6 0
Advanced $70,18 $107,6 $165,4
0 65 43
Others $14,03 $21,53 $33,08
6 3 9
Total Sales $120,7 $185,1 $284,5
10 84 62
Direct Cost of Sales Year 1 Year 2 Year 3
New Users $18,24 $27,99 $43,01
7 3 5
Advanced $60,35 $10,76 $16,54
5 7 4
Others $2,294 $92,59 $142,2
2 81
Subtotal Direct Cost of $80,89 $131,3 $201,8
Sales 6 51 40
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5.4 Milestones
 Completion of business plan;
 Secure building lease;
 Profitability;
 Sales in excess of $200,000.

Web Plan Summary

AuctionShipper will have a website as a method of disseminating information
regarding AuctionShipper and the services offered. It will be nothing fancy,
just a useful source of information regarding what the company has to offer.
6.1 Website Marketing Strategy
AuctionShipper will undertake two activities to market the website, thereby
increasing awareness of the sites presence:
 Communication of the URL in all sales and marketing literature.
 Submission of AuctionShipper’s URL and common search terms to all of
the major search engines. This is a fairly easy activity if one knows
what they are doing.
6.2 Development Requirements
The website will be developed using below-market-waged college computer
science students.

Management Summary
John Packer received his Bachelor of Arts from Ann Arbor College. While in
school John participated in the entrepreneur program that gave grants to
students who were interested in starting business. John formed a group of
three students and received a grant to try to market a notebook that he
designed called the Black Board Notetaker, a novel notebook that was
shaped similar to a black board at school to help facilitate the process of
taking notes the same way that the notes are written on the black board.
After school, John concentrated for two years on developing this business.
While it seemed like a good idea, it never really caught on and the operation
was not producing sufficient profit for this to be John’s sole source of income.
John decided that it would be prudent for him to go back to school to earn his
MBA. John enrolled in the University of Michigan’s MBA program. This degree
taught John a wide range of skills that he felt would be instrumental if he was
to start another new eBay users business. While John was in school, eBay
was beginning to catch on. Initially, John was active in eBay as a buyer and
would spend 10 minutes each day going through eBay looking for deals.
After two years of buying on eBay, John began selling items in eBay. What
John soon found out was that he could not sell as much as he wanted due to
the time consuming activity of packaging the items. It struck John one day
that there was significant value to be offered for some to have a convenient,
inexpensive packaging and shipping service. With this idea in mind, John
began the process of writing this business plan.
7.1 Personnel Plan
Initially, John will be the only employee. This will serve two functions, 1) it
will reduce costs by not having to pay for employees, and 2) it will allow John
to become intimately familiar will all aspects of his business. Soon thereafter,
John will hire two part-time employees.
Personnel Plan
John $30,0 $32,0 $37,0
00 00 00
Part time $16,5 $24,0 $28,0
employees 00 00 00
Total People 3 3 3
Total Payroll $46,5 $56,0 $65,0
00 00 0

Financial Plan
The following sections will outline important financial information.
8.1 Important Assumptions
The following table details important financial assumptions.
General
Assumptions
Plan Month 1 2 3
Current Interest 10.00 10.00 10.00
Rate % % %
Long-term Interest 10.00 10.00 10.00
Rate % % %
Tax Rate 30.00 30.00 30.00
% % %
Other 0 0 0
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8.2 Break-even Analysis
The Break-even Analysis indicates the monthly revenue needed to reach the
break-even point.

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Break-even Analysis
Monthly Revenue Break- $17,3
even 51
Assumptions:
Average Percent Variable 67%
Cost
Estimated Monthly Fixed $5,72
Cost 3
8.3 Projected Profit and Loss
The following table will indicate Projected Profit and Loss.

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<img decoding="async" alt="Packaging and shipping business plan,

financial plan chart image"
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and_shipping_business_plan/images/
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<img decoding="async" alt="Packaging and shipping business plan,

financial plan chart image"
src="https://pas-bplans.s3.amazonaws.com/sample-plans/bplans/packaging_
and_shipping_business_plan/images/
4a006b2dbf884039beb57c81684f13af.png" width="550" height="318">

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Pro Forma Profit and Loss
Sales $120,71 $185,18 $284,5
0 4 62
Direct Cost of Sales $80,896 $131,35 $201,8
1 40
Other Costs of Sales $0 $0 $0
Total Cost of Sales $80,896 $131,35 $201,8
1 40
Gross Margin $39,814 $53,833 $82,72
 1
Gross Margin % 32.98% 29.07% 29.07%
Expenses
Payroll $46,500 $56,000 $65,00
0
Sales and Marketing and Other $2,400 $2,400 $2,400
Expenses
Depreciation $799 $799 $799
Rent $8,400 $8,400 $9,000
Utilities $1,800 $1,800 $1,800
Insurance $1,800 $1,800 $1,800
Payroll Taxes $6,975 $8,400 $9,750
Other $0 $0 $0
Total Operating Expenses $68,674 $79,599 $90,54
9
Profit Before Interest and Taxes ($28,86 ($25,76 ($7,828
0) 7) )
EBITDA ($28,06 ($24,96 ($7,029
1) 8) )
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Profit ($28,86 ($25,76 ($7,828
0) 7) )
Net Profit/Sales -23.91% -13.91% -2.75%
8.4 Projected Cash Flow
The following table and chart will indicate Projected Cash Flow.

<img decoding="async" alt="Packaging and shipping business plan,

financial plan chart image"
src="https://pas-bplans.s3.amazonaws.com/sample-plans/bplans/packaging_
and_shipping_business_plan/images/
717603cfde0041ac92fa798a32703bef.png" width="550" height="318">

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Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales $120,71 $185,18 $284,5
0 4 62
Subtotal Cash from Operations $120,71 $185,18 $284,5
0 4 62
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 $120,71 $185,18 $284,5
0 4 62
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $46,500 $56,000 $65,00
0
Bill Payments $90,234 $153,51 $220,6
7 37
Subtotal Spent on Operations $136,73 $209,51 $285,6
4 7 37
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $0 $0 $0
Borrowing
Other Liabilities Principal $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $136,73 $209,51 $285,6
4 7 37
Net Cash Flow ($16,02 ($24,33 ($1,075
5) 4) )
Cash Balance $43,700 $19,366 $18,29
 2
8.5 Projected Balance Sheet
The following table will indicate the Projected Balance Sheet.
Pro Forma Balance
Sheet
Assets
Current Assets
Cash $43,700 $19,366 $18,292
Other Current Assets $0 $0 $0
Total Current Assets $43,700 $19,366 $18,292
Long-term Assets
Long-term Assets $4,000 $4,000 $4,000
Accumulated $799 $1,598 $2,397
Depreciation
Total Long-term Assets $3,201 $2,402 $1,603
Total Assets $46,901 $21,768 $19,895
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $12,036 $12,670 $18,624
Current Borrowing $0 $0 $0
Other Current $0 $0 $0
Liabilities
Subtotal Current $12,036 $12,670 $18,624
Liabilities
Long-term Liabilities $0 $0 $0
Total Liabilities $12,036 $12,670 $18,624
Paid-in Capital $70,000 $70,000 $70,000
Retained Earnings ($6,275 ($35,13 ($60,90
) 5) 2)
Earnings ($28,86 ($25,76 ($7,828
0) 7) )
Total Capital $34,865 $9,098 $1,271
Total Liabilities and $46,901 $21,768 $19,895
Capital
Net Worth $34,865 $9,098 $1,271
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8.6 Business Ratios
The following table illustrates Business Ratios specific to this company as
well as the industry.
Ratio Analysis
Sales Growth 0.00% 53.41% 53.66% 4.21%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 36.72%
Total Current Assets 93.18% 88.97% 91.94% 63.63%
Long-term Assets 6.82% 11.03% 8.06% 36.37%
Total Assets 100.00 100.00 100.00 100.00
% % % %
Current Liabilities 25.66% 58.20% 93.61% 32.89%
Long-term Liabilities 0.00% 0.00% 0.00% 18.63%
Total Liabilities 25.66% 58.20% 93.61% 51.52%
Net Worth 74.34% 41.80% 6.39% 48.48%
Percent of Sales
Sales 100.00 100.00 100.00 100.00
% % % %
Gross Margin 32.98% 29.07% 29.07% 34.93%
Selling, General & Administrative 56.89% 42.98% 31.82% 22.73%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.73%
Profit Before Interest and Taxes - - -2.75% 1.04%
23.91% 13.91%
Main Ratios
Current 3.63 1.53 0.98 1.48
Quick 3.63 1.53 0.98 1.22
Total Debt to Total Assets 25.66% 58.20% 93.61% 57.32%
Pre-tax Return on Net Worth - - - 2.62%
82.78% 283.20 615.95
% %
Pre-tax Return on Assets - - - 6.14%
61.53% 118.37 39.34%
%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin - - -2.75% n.a
23.91% 13.91%
Return on Equity - - - n.a
 82.78% 283.20 615.95
% %
Activity Ratios
Accounts Payable Turnover 8.50 12.17 12.17 n.a
Payment Days 27 29 25 n.a
Total Asset Turnover 2.57 8.51 14.30 n.a
Debt Ratios
Debt to Net Worth 0.35 1.39 14.66 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $31,66 $6,696 ($332) n.a
4
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.39 0.12 0.07 n.a
Current Debt/Total Assets 26% 58% 94% n.a
Acid Test 3.63 1.53 0.98 n.a
Sales/Net Worth 3.46 20.35 223.92 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix
Sale
s
Fore
cast
Sale
s
New 0 $0 $1, $1, $2,
$2, $3, $3, $3, $3, $4, $4, $4,
User % 20 96 30
94 512 593 756 865 113 328 910
s 8 4 5
1
Adva 0 $0 $2, $3, $4,
$5, $6, $6, $7, $7, $7, $8, $9,
nced % 32 77 43
65 754 909 223 432 909 323 443
3 6 2
6
Othe 0 $0 $4 $7 $8
$1, $1, $1, $1, $1, $1, $1, $1,
rs % 65 55 86
13 351 382 445 486 582 665 889
1
Total $0 $3, $6, $7, $9, $11 $11 $12 $12 $13 $14 $16
Sale 99 49 62 72 ,61 ,88 ,42 ,78 ,60 ,31 ,24
s 6 5 3 8 7 3 4 3 3 6 2
Direc Mo Mo Mo Mo Mo Mon Mon Mon Mon Mon Mon Mon
t nth nth nth nth nth th 6 th 7 th 8 th 9 th th th
Cost 1 2 3 4 5 10 11 12
of
Sale
s
New $0 $6 $9 $1, $1, $1, $1, $1, $1, $2, $2, $2,
User 04 82 15 47 756 796 878 932 056 164 455
s 2 1
Adva $0 $1, $3, $3, $4, $5, $5, $6, $6, $6, $7, $8,
nced 99 24 81 86 808 942 212 392 802 158 121
8 7 2 4
Othe $0 $2 $3 $4 $5 $67 $0 $0 $0 $0 $0 $0
rs 32 78 43 66 5
Subt $0 $2, $4, $5, $6, $8, $7, $8, $8, $8, $9, $10
otal 83 60 40 90 239 738 090 324 858 322 ,57
Direc 4 7 7 1 6
t
Cost
of
Sale
s
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Perso
nnel
Plan
John 0 $2, $2, $2, $2, $2, $2, $2, $2, $2, $2, $2, $2,
% 500 500 500 500 500 500 500 500 500 500 500 500
Part 0 $0 $0 $0 $1, $1, $1, $2, $2, $2, $2, $2, $2,
time % 500 500 500 000 000 000 000 000 000
empl
oyees
Total 1 1 1 2 2 2 3 3 3 3 3 3
Peopl
e
Total $2, $2, $2, $4, $4, $4, $4, $4, $4, $4, $4, $4,
Payrol 500 500 500 000 000 000 500 500 500 500 500 500
l
Gener
al
Assum
ptions
Plan 1 2 3 4 5 6 7 8 9 10 11 12
Month
Curren 10. 10. 10. 10. 10. 10. 10. 10. 10. 10. 10. 10.
t 00 00 00 00 00 00 00 00 00 00 00 00
Intere % % % % % % % % % % % %
st
Rate
Long- 10. 10. 10. 10. 10. 10. 10. 10. 10. 10. 10. 10.
term 00 00 00 00 00 00 00 00 00 00 00 00
Intere % % % % % % % % % % % %
st
Rate
Tax 30. 30. 30. 30. 30. 30. 30. 30. 30. 30. 30. 30.
Rate 00 00 00 00 00 00 00 00 00 00 00 00
% % % % % % % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro
Form
a
Profit
and
Loss
Sales $0 $3, $6, $7, $9, $11 $11 $12 $12 $13 $14 $1
996 495 623 728 ,61 ,88 ,42 ,78 ,60 ,31 6,2
7 3 4 3 3 6 42
Direc $0 $2, $4, $5, $6, $8, $7, $8, $8, $8, $9, $1
t Cost 834 607 407 901 239 738 090 324 858 322 0,5
of 76
Sales
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Costs
of
Sales
Total $0 $2, $4, $5, $6, $8, $7, $8, $8, $8, $9, $1
Cost 834 607 407 901 239 738 090 324 858 322 0,5
of 76
Sales
Gross $0 $1, $1, $2, $2, $3, $4, $4, $4, $4, $4, $5,
Margi 162 888 216 828 377 145 334 459 745 994 66
n 6
Gross 0.0 29. 29. 29. 29. 29. 34. 34. 34. 34. 34. 34.
Margi 0% 08 06 07 07 07 88 88 88 88 88 88
n% % % % % % % % % % % %
Expe
nses
Payro $2, $2, $2, $4, $4, $4, $4, $4, $4, $4, $4, $4,
ll 500 500 500 000 000 000 500 500 500 500 500 50
0
Sales $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $2
and 0 0 0 0 0 0 0 0 0 0 0 00
Mark
eting
and
Other
Expe
nses
Depr $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $6
eciati 7
on
Rent $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $7
0 0 0 0 0 0 0 0 0 0 0 00
Utiliti $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $1
es 0 0 0 0 0 0 0 0 0 0 0 50
Insur $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $1
ance 0 0 0 0 0 0 0 0 0 0 0 50
Payro 1 $37 $37 $37 $60 $60 $60 $67 $67 $67 $67 $67 $6
ll 5 5 5 5 0 0 0 5 5 5 5 5 75
Taxes %
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total $4, $4, $4, $5, $5, $5, $6, $6, $6, $6, $6, $6,
Oper 142 142 142 867 867 867 442 442 442 442 442 44
ating 2
Expe
nses
Profit ($4, ($2, ($2, ($3, ($3, ($2, ($2, ($2, ($1, ($1, ($1, ($7
Befor 142 980 254 650 039 489 296 108 982 696 448 76)
e ) ) ) ) ) ) ) ) ) ) )
Intere
st
and
Taxes
EBIT ($4, ($2, ($2, ($3, ($2, ($2, ($2, ($2, ($1, ($1, ($1, ($7
DA 075 913 187 584 972 423 230 041 916 630 381 09)
) ) ) ) ) ) ) ) ) ) )
Intere $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
st
Expe
nse
Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incurr
ed
Net ($4, ($2, ($2, ($3, ($3, ($2, ($2, ($2, ($1, ($1, ($1, ($7
Profit 142 980 254 650 039 489 296 108 982 696 448 76)
) ) ) ) ) ) ) ) ) ) )
Net 0.0 - - - - - - - - - - -
Profit 0% 74. 34. 47. 31. 21. 19. 16. 15. 12. 10. 4.7
/Sale 58 71 89 24 43 32 97 51 47 11 8%
s % % % % % % % % % %
Pro
Form
a
Cash
Flow
Cash
Recei
ved
Cash
from
Oper
ations
Cash $0 $3, $6, $7, $9, $11 $11 $12 $12 $13 $1 $1
Sales 99 49 623 728 ,61 ,88 ,42 ,78 ,60 4,3 6,2
6 5 7 3 4 3 3 16 42
Subto $0 $3, $6, $7, $9, $11 $11 $12 $12 $13 $1 $1
tal 99 49 623 728 ,61 ,88 ,42 ,78 ,60 4,3 6,2
Cash 6 5 7 3 4 3 3 16 42
from
Oper
ations
Additi
onal
Cash
Recei
ved
Sales 0. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax, 00
VAT, %
HST/
GST
Recei
ved
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Curre
nt
Borro
wing
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Liabili
ties
(inter
est-
free)
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-
term
Liabili
ties
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
of
Other
Curre
nt
Asset
s
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
of
Long-
term
Asset
s
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Invest
ment
Recei
ved
Subto $0 $3, $6, $7, $9, $11 $11 $12 $12 $13 $1 $1
tal 99 49 623 728 ,61 ,88 ,42 ,78 ,60 4,3 6,2
Cash 6 5 7 3 4 3 3 16 42
Recei
ved
Expe Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo
nditur nth nth nth nth nth nth nth nth nth nth nth nth
es 1 2 3 4 5 6 7 8 9 10 11 12
Expe
nditur
es
from
Oper
ations
Cash $2, $2, $2, $4, $4, $4, $4, $4, $4, $4, $4, $4,
Spen 500 50 50 000 000 000 500 500 500 500 50 50
ding 0 0 0 0
Bill $53 $1, $4, $6, $7, $8, $10 $9, $9, $10 $1 $1
Paym 66 46 216 257 745 ,02 625 973 ,21 0,7 1,2
ents 9 8 5 7 49 39
Subto $2, $4, $6, $10 $11 $12 $14 $14 $14 $14 $1 $1
tal 553 16 96 ,21 ,25 ,74 ,52 ,12 ,47 ,71 5,2 5,7
Spent 9 8 6 7 5 5 5 3 7 49 39
on
Oper
ations
Additi
onal
Cash
Spent
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax,
VAT,
HST/
GST
Paid
Out
Princi $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
pal
Repa
ymen
t of
Curre
nt
Borro
wing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabili
ties
Princi
pal
Repa
ymen
t
Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term
Liabili
ties
Princi
pal
Repa
ymen
t
Purch $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
ase
Other
Curre
nt
Asset
s
Purch $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
ase
Long-
term
Asset
s
Divid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
ends
Subto $2, $4, $6, $10 $11 $12 $14 $14 $14 $14 $1 $1
tal 553 16 96 ,21 ,25 ,74 ,52 ,12 ,47 ,71 5,2 5,7
Cash 9 8 6 7 5 5 5 3 7 49 39
Spent
Net ($2 ($1 ($4 ($2 ($1 ($1, ($2 ($1 ($1 ($1, ($9 $5
Cash ,55 74) 73) ,59 ,52 128 ,64 ,70 ,69 113 33) 03
Flow 3) 3) 8) ) 2) 1) 0) )
Cash $57 $5 $5 $53 $52 $51 $48 $46 $45 $44 $4 $4
Balan ,17 6,9 6,5 ,93 ,40 ,27 ,63 ,93 ,24 ,13 3,1 3,7
ce 3 99 25 2 4 5 4 2 3 0 97 00
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Pro
Form
a
Bala
nce
Shee
t
Asse Sta
ts rtin
g
Bal
an
ces
Curr
ent
Asse
ts
Cash $5 $5 $5 $5 $53 $52 $51 $48 $46 $45 $44 $43 $43
9,7 7,1 6,9 6,5 ,93 ,40 ,27 ,63 ,93 ,24 ,13 ,19 ,70
25 73 99 25 2 4 5 4 2 3 0 7 0
Othe $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
r
Curr
ent
Asse
ts
Total $5 $5 $5 $5 $53 $52 $51 $48 $46 $45 $44 $43 $43
Curr 9,7 7,1 6,9 6,5 ,93 ,40 ,27 ,63 ,93 ,24 ,13 ,19 ,70
ent 25 73 99 25 2 4 5 4 2 3 0 7 0
Asse
ts
Long
-
term
Asse
ts
Long $4, $4, $4, $4, $4, $4, $4, $4, $4, $4, $4, $4, $4,
- 00 00 00 00 000 000 000 000 000 000 000 000 000
term 0 0 0 0
Asse
ts
Accu $0 $6 $1 $2 $26 $33 $40 $46 $53 $59 $66 $73 $79
mula 7 33 00 6 3 0 6 3 9 6 3 9
ted
Depr
eciat
ion
Total $4, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3,
Long 00 93 86 80 734 667 600 534 467 401 334 267 201
- 0 3 7 0
term
Asse
ts
Total $6 $6 $6 $6 $57 $56 $54 $52 $50 $48 $47 $46 $46
Asse 3,7 1,1 0,8 0,3 ,66 ,07 ,87 ,16 ,40 ,64 ,46 ,46 ,90
ts 25 06 65 26 6 1 6 7 0 3 4 4 1
Liabil Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo Mo
ities nth nth nth nth nth nth nth nth nth nth nth nth
and 1 2 3 4 5 6 7 8 9 10 11 12
Capit
al
Curr
ent
Liabil
ities
Acco $0 $1, $4, $5, $6, $8, $9, $9, $9, $9, $10 $10 $12
unts 52 26 97 967 411 705 293 633 859 ,37 ,82 ,03
Paya 3 2 6 5 4 6
ble
Curr $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
ent
Borr
owin
g
Othe $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
r
Curr
ent
Liabil
ities
Subt $0 $1, $4, $5, $6, $8, $9, $9, $9, $9, $10 $10 $12
otal 52 26 97 967 411 705 293 633 859 ,37 ,82 ,03
Curr 3 2 6 5 4 6
ent
Liabil
ities
Long $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-
term
Liabil
ities
Total $0 $1, $4, $5, $6, $8, $9, $9, $9, $9, $10 $10 $12
Liabil 52 26 97 967 411 705 293 633 859 ,37 ,82 ,03
ities 3 2 6 5 4 6
Paid- $7 $7 $7 $7 $70 $70 $70 $70 $70 $70 $70 $70 $70
in 0,0 0,0 0,0 0,0 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00
Capit 00 00 00 00 0 0 0 0 0 0 0 0 0
al
Retai ($6 ($6 ($6 ($6 ($6, ($6, ($6, ($6, ($6, ($6, ($6, ($6, ($6,
ned ,27 ,27 ,27 ,27 275 275 275 275 275 275 275 275 275
Earni 5) 5) 5) 5) ) ) ) ) ) ) ) ) )
ngs
Earni $0 ($4 ($7 ($9 ($1 ($1 ($1 ($2 ($2 ($2 ($2 ($2 ($2
ngs ,14 ,12 ,37 3,0 6,0 8,5 0,8 2,9 4,9 6,6 8,0 8,8
2) 1) 5) 26) 65) 54) 50) 58) 40) 37) 84) 60)
Total $6 $5 $5 $5 $50 $47 $45 $42 $40 $38 $37 $35 $34
Capit 3,7 9,5 6,6 4,3 ,69 ,66 ,17 ,87 ,76 ,78 ,08 ,64 ,86
al 25 83 04 50 9 0 1 5 7 5 8 1 5
Total $6 $6 $6 $6 $57 $56 $54 $52 $50 $48 $47 $46 $46
Liabil 3,7 1,1 0,8 0,3 ,66 ,07 ,87 ,16 ,40 ,64 ,46 ,46 ,90
ities 25 06 65 26 6 1 6 7 0 3 4 4 1
and
Capit
al
Net $6 $5 $5 $5 $50
Wort 3,7 9,5 6,6 4,3 ,69
h 25 83 04 50