Thanks for downloading a sample plan

from Bplans.com
A sample plan is a great way to get started, but you cant just print
this plan out and turn it into the bank. Youre still going to have to put
in all your own information and do all of your own financial forecasts.
With LivePlan, you can easily use this sample as inspiration and create
your own plan, complete with financial tables and graphs. Youll also
be able to:

Save time with linked financial tables (the formulas are built in,
so you dont have to do the calculations!)
Benefit from tons of help, advice, and resources.
Present your plan with confidence, with automatic charts and
graphs corresponding to your financial data.
Work on your plan anywhere, on any computer.

For 20 dollars I ended up getting a quarter of a million dollars of

funding. Thats worth it!
Todd C. Tablegate
Click here to save 50% off the first month of LivePlan!

Cover Page

This sample business plan has been made available to users of Business Plan Pro, business
planning software published by Palo Alto Software, Inc. Names, locations and numbers may have
been changed, and substantial portions of the original plan text may have been omitted to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For product
information visit our website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1995-2009 All rights reserved.

Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by
_________________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this document is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................2
1.1 Objectives....................................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company History.......................................................................................................................3
Chart: Past Performance............................................................................................................3
Table: Past Performance.............................................................................................................4
2.2 Company Ownership................................................................................................................4
3.0 Products............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation..............................................................................................................5
Table: Market Analysis................................................................................................................6
Chart: Market Analysis (Pie).....................................................................................................6
5.0 Strategy and Implementation Summary.............................................................................6
5.1 Sales Strategy............................................................................................................................7
5.1.1 Sales Forecast....................................................................................................................7
Chart: Sales Monthly...............................................................................................................7
Chart: Sales by Year................................................................................................................8
Table: Sales Forecast...............................................................................................................8
5.2 Competitive Edge......................................................................................................................9
6.0 Management Summary...............................................................................................................9
6.1 Personnel Plan............................................................................................................................9
Table: Personnel............................................................................................................................9
7.0 Financial Plan................................................................................................................................10
7.1 Break-even Analysis...............................................................................................................10
Table: Break-even Analysis.....................................................................................................10
Chart: Break-even Analysis....................................................................................................10
7.2 Projected Profit and Loss......................................................................................................11
Chart: Profit Monthly.................................................................................................................11
Chart: Profit Yearly.....................................................................................................................11
Table: Profit and Loss................................................................................................................12
7.3 Projected Cash Flow...............................................................................................................13
Table: Cash Flow.........................................................................................................................13
Chart: Cash...................................................................................................................................14
7.4 Projected Balance Sheet......................................................................................................15
Table: Balance Sheet.................................................................................................................15
7.5 Business Ratios........................................................................................................................16
Table: Ratios.................................................................................................................................16
Table: Sales Forecast...........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Page 1

Table of Contents

Table:
Table:
Table:
Table:
Table:

Profit and Loss..........................................................................................................................4

Cash Flow...................................................................................................................................5
Cash Flow...................................................................................................................................5
Balance Sheet...........................................................................................................................6
Balance Sheet...........................................................................................................................6

Page 2

Martin Cove Brewing Company

1.0 Executive Summary

Martin Cove Brewing Company has been a successful microbrewery in southern Oregon for the
past three years. Located in the city of Medford, the company has increased sales by 15% each
year. The company's product lines are Martin Cove Pilsner and Red Ale. This year, Martin Cove
Brewing Company, will gross $520,000 in sales. This was generated from an initial investment
of $150,000.
Martin Cove Brewing Company handcrafts its beers in small 20 barrel batches under the close
personal attention of our brewers. The latest brewing equipment and technologies are
seamlessly combined with traditional brewing methods to ensure consistently excellent taste,
whether packaged in bottles or draft kegs.
Martin Cove Brewing Company is planning to expand its distribution to selected metro areas
within the state of Oregon. Over the last three years, Martin Cove Brewing Company has
become one of the city's most popular microbreweries, and aims to repeat this Oregon-wide. In
addition, the company will introduce a new product, a traditional German Marzen style lager.
Owner funding and internally generated cash flow will enable the expansion plan. Sales
projections for the next three years are based on current sales success with the target
customer base in southern Oregon. The effective implementation of this plan will result in sales
revenues growing to $1.2 million by Year 3.
Martin Cove Brewing Company will apply the same sales strategy that built sales in Medford:
remove all obstacles between you and the customer. Once the customer tastes the product, he
or she will know the quality and craftsmanship that goes into every bottle of Martin Cove.
Martin Cove Microbrews will be available in bars as well as retail outlets, such as local markets
and corner stores. It will also aim to distribute through supermarkets, but it is envisioned that
getting shelf space in national supermarkets will be more difficult and more expensive.

Page 1

Martin Cove Brewing Company

Chart: Highlights

1.1 Objectives
The objectives of Martin Cove Brewing Company are the following:

Establish strong relationships with local beer distributors in selected sales areas.
Maintain tight control of cost and operation during expansion.
Maintain the high-quality product that the company has become known for.

2.0 Company Summary

Martin Cove Brewing Company has built a reputation for handcrafted care, time-honored
methodology, and the finest natural ingredients from around the world.
Martin Cove Brewing Company has been a successful microbrewery in southern Oregon for the
past three years. Located in the city of Medford, the company has increased sales by 15% each
year. The company's product lines are Martin Cove Pilsner and Red Ale.
Martin Cove Brewing Company handcrafts its beers in small 20 barrel batches under the close
personal attention of our brewers. The latest brewing equipment and technologies are
seamlessly combined with traditional brewing methods to ensure consistently excellent taste,
whether packaged in bottles or draft kegs.
Martin Cove Brewing Company is planning to expand its distribution to selected metro areas
within the state of Oregon. Over the last three years, Martin Cove Brewing Company has
become one of the city's most popular microbreweries, and aims to repeat this Oregon-wide. In
addition, the company will introduce a new product, a traditional German Marzen style lager.
Owner funding and internally generated cash flow will enable the expansion plan.

Page 2

Martin Cove Brewing Company

2.1 Company History

Martin Cove Brewing Company was started in the city of Medford in 1996. John Wilson was
bartending at two local establishments in Medford for ten years before starting Martin Cove
Brewing Company. Brewmasters Bob Taft and Jeffery Calson had worked for Portland Brewery
Company for six and eight years, respectively, before starting Martin Cove Brewing Company.
Felix Henderson had twelve years of experience in retail sales and marketing when he joined as
co-owner/marketing director for Martin Cove Brewing Company.
Martin Cove Brewing Company handcrafts its beer in small 20 barrel batches under the close
personal attention of our brewers. The latest brewing equipment and technologies are
seamlessly combined with traditional brewing methods to ensure consistently excellent taste,
whether packaged in bottles or draft kegs.
The beers proved to be so popular that Martin Cove Brewing Company soon could be found in
almost every market and pub in Medford. Over the next three years, Martin Cove Brewing
Company has become one of the city's most popular microbreweries.
Martin Cove Brewing Company's operations has expanded dramatically over the past three
years. Currently, the company has a staff of eleven in production, delivery, and sales.

Chart: Past Performance

Page 3

Martin Cove Brewing Company

Table: Past Performance

Past Performance
FY 2000

FY 2001

FY 2002

$350,000
$245,000
70.00%
$200,000
0
52.00

$420,000
$294,000
70.00%
$260,000
49
52.00

$520,000
$364,000
70.00%
$320,000
57
52.00

FY 2000

FY 2001

FY 2002

$10,000
$49,000
$10,000
$5,000
$74,000

$30,000
$58,000
$10,000
$5,000
$103,000

$80,000
$80,000
$20,000
$5,000
$185,000

Long-term Assets
Accumulated Depreciation
Total Long-term Assets

$100,000
$4,000
$96,000

$100,000
$8,000
$92,000

$100,000
$12,000
$88,000

Total Assets

$170,000

$195,000

$273,000

Accounts Payable
Current Borrowing
Other Current Liabilities (interest free)
Total Current Liabilities

$30,000
$0
$0
$30,000

$20,000
$0
$0
$20,000

$20,000
$0
$0
$20,000

Long-term Liabilities
Total Liabilities

$60,000
$90,000

$40,000
$60,000

$40,000
$60,000

Paid-in Capital
Retained Earnings
Earnings
Total Capital

$30,000
$38,000
$12,000
$80,000

$40,000
$80,000
$15,000
$135,000

$80,000
$109,000
$24,000
$213,000

$170,000

$195,000

$273,000

12
$0
0.00

12
$400,000
6.90

12
$440,000
5.50

Sales
Gross Margin
Gross Margin %
Operating Expenses
Collection Period (days)
Inventory Turnover
Balance Sheet

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets

Current Liabilities

Total Capital and Liabilities

Other Inputs
Payment Days
Sales on Credit
Receivables Turnover

2.2 Company Ownership

Martin Cove Brewing is owned by John Wilson, Bob Taft, Jeffery Calson, and Felix Henderson.

Page 4

Martin Cove Brewing Company

3.0 Products
Martin Cove Brewing Company has three beer product lines:

Roaring River Red is an Irish style ale made the traditional way, with
roasted specialty malts that give it that deep, ruby-colored hue.

Martin Cove Pilsner is light, crisp and crystal clear, with a pure white foamy head. It's a
blend of the very finest domestic and imported malts, hops and bottom-fermented lager
yeast, delicately balanced.

Martin Cove Lager is brewed in the traditional German Marzen style and is malty and fullbodied. We combine imported German hops and a special European yeast strain with the
finest two row malted barley from the Pacific Northwest to give Martin Cove Lager its unique
character and warm, light amber color.

4.0 Market Analysis Summary

Over the past ten years, regional microbreweries have gained market share of beer sales in the
state of Oregon. A number of regional brands have moved from speciality market to the
supermarket. The numbers have been impressive. At present, regional microbrews represent
10% of beer sales in Oregon. This represents a 35% increase over sales numbers for the year
2000. Most importantly, the increased sales have occurred in the affluent communities in
Oregon's metro areas.
Oregon's population has grown by 15% annually for the past ten years. Most of the growth has
been in response to the explosion of hiring in the high-tech industry. The growth has added to
the customer base that purchases regional microbrews. Traditionally, microbrews have been
favored by young professional men and women in their late twenties and early thirties.
Another growth area that has had an impact on microbrew sales is the dramatic enrollment
increase in the state's colleges and universities. Currently, there are 60,000 college students in
the cities of Eugene, Corvallis and Portland. Microbrews represent 35% of beers sales in the
campus communities.
4.1 Market Segmentation
Martin Cove Brewing Company plans to focus on the following market segments:

Customers in university campus communities.

Professional men and women aged 25 - 35 living in affluent metro communities.

Marketing and promotional activities will be grassroots based, rather than more expensive mass
marketing. Martin Cove will reach these people through sponsorship of local entertainment of
cultural events, advertising in small niche magazines targeted towards young "fashionable"
professionals and sponsorship of activity groups.

Page 5

Martin Cove Brewing Company

Table: Market Analysis

Market Analysis
2002
Potential Customers
University Communities
Affluent Metro Communities
Total

2003

2004

2005

2006

Growth
15%
10%
11.06%

CAGR
100,000
400,000
500,000

115,000
440,000
555,000

132,250
484,000
616,250

152,088
532,400
684,488

174,901
585,640
760,541

15.00%
10.00%
11.06%

Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

The first step in the expansion plan is to introduce the Martin Cove Brewing Company product
line into the selected areas. New sales representatives will be assigned to the Portland tricounty area and the lower Willamette Valley area (Corvallis and Eugene). The retail marketing
focus will be on speciality stores that carry regional microbrews. Martin Cove Brewing Company
will promote sales by reducing wholesale prices 12% for the first three months of sales.
Martin Cove Brewing Company products will be distributed in the Portland tri-county area by
Cascade Distribution. In the lower Willamette Valley area, McKenzie Distribution will carry
Martin Cove Brewing Company products.
Martin Cove Brewing Company's new product, a traditional German Marzen style lager, is unique
enough in taste and processing to be attractive to any business that serves beers to customers.
The added advantage is that the lager has no competitors. Martin Cove Brewing Company will
promote sales by reducing wholesale prices 12% for the first three months of sales.

Page 6

Martin Cove Brewing Company

5.1 Sales Strategy

Martin Cove Brewing Company will apply the same sales strategy that built sales in Medford:
remove all obstacles between you and the customer. Once the customer tastes the product, he
or she will know the quality and craftsmanship that goes into every bottle of Martin Cove.
Martin Cove Microbrews will be available in bars as well as retail outlets, such as local markets
and corner stores. It will also aim to distribute through supermarkets, but it is envisioned that
getting shelf space in national supermarkets will be more difficult and more expensive.
5.1.1 Sales Forecast
The following is the sales forecast for the next three years.

Chart: Sales Monthly

Page 7

Martin Cove Brewing Company

Chart: Sales by Year

Table: Sales Forecast

Sales Forecast
FY 2003

FY 2004

FY 2005

Microbrews
Other
Total Sales

$890,000
$0
$890,000

$1,068,000
$0
$1,068,000

$1,281,600
$0
$1,281,600

Direct Cost of Sales

Microbrews
Other
Subtotal Direct Cost of Sales

FY 2003
$267,000
$0
$267,000

FY 2004
$320,400
$0
$320,400

FY 2005
$384,480
$0
$384,480

Sales

Page 8

Martin Cove Brewing Company

5.2 Competitive Edge

Martin Cove Brewing Company's competitive edge is as follows:

Quality Process and Ingredients: Our beers are the highest quality and include only the
finest natural ingredients. Carefully selected for their distinctive flavor profile, the beers are
classically fermented and cold lagered for a smooth, bold taste. We use fine North American
two row barley malt in addition to imported Belgian specialty malts, generally regarded as
among the finest malts in the world. We use hops from the Pacific Northwest in our ales,
and use imported German hops to give our Martin Cove Lagers their distinctive taste.

Handcrafted: Our beers are stored in small 20 barrel batches under the close personal
attention of our brewers. The latest brewing equipment and technologies are seamlessly
combined with traditional brewing methods to ensure consistently excellent taste, whether
packaged in bottles or draft kegs.

6.0 Management Summary

The following is the management summary for Martin Cove Brewing Company:

John Wilson will manage the bottling and shipping operation.

Brewmasters Bob Taft and Jeffery Calson will manage the brewing process.
Felix Henderson will manage marketing and sales.

6.1 Personnel Plan

Martin Cove Brewing Company's personnel plan is as follows:

Bottling and shipping manager;

Brewing managers (2);
Marketing/sales manager;
Bottling staff (4);
Shipping staff (3).

Table: Personnel

Personnel Plan
FY 2003

FY 2004

FY 2005

Bottling and Shipping Mgr

Brewing Mgrs (2)
Marketing and Sales Mgr
Bottling Staff
Shipping Staff
Total People

$48,000
$96,000
$48,000
$108,000
$72,000
11

$50,000
$100,000
$50,000
$112,000
$75,000
11

$52,000
$104,000
$52,000
$116,000
$78,000
11

Total Payroll

$372,000

$387,000

$402,000

Page 9

Martin Cove Brewing Company

7.0 Financial Plan

The following is the financial plan for Martin Cove Brewing Company.
7.1 Break-even Analysis
The monthly break-even point is $67,036.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$67,036

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

30%
$46,925

Chart: Break-even Analysis

Page 10

Martin Cove Brewing Company

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for the next three years.

Chart: Profit Monthly

Page 11

Martin Cove Brewing Company

Chart: Profit Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2003

FY 2004

FY 2005

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$890,000
$267,000
$0
$267,000

$1,068,000
$320,400
$0
$320,400

$1,281,600
$384,480
$0
$384,480

Gross Margin
Gross Margin %

$623,000
70.00%

$747,600
70.00%

$897,120
70.00%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Sales Commission
Utilities
Insurance
Rent
Payroll Taxes
Other

$372,000
$63,000
$14,400
$26,700
$12,000
$2,400
$16,800
$55,800
$0

$387,000
$83,000
$14,400
$32,040
$12,000
$2,600
$16,800
$58,050
$0

$402,000
$105,000
$14,400
$38,448
$12,000
$2,800
$16,800
$60,300
$0

Total Operating Expenses

$563,100

$605,890

$651,748

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$59,900
$74,300
$3,782
$16,835

$141,710
$156,110
$3,398
$41,494

$245,372
$259,772
$2,998
$72,712

Net Profit
Net Profit/Sales

$39,282
4.41%

$96,818
9.07%

$169,662
13.24%

Expenses

Page 12

Martin Cove Brewing Company

Page 13

Martin Cove Brewing Company

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for the next three years.
Table: Cash Flow

Pro Forma Cash Flow

FY 2003

FY 2004

FY 2005

$222,500
$622,500
$845,000

$267,000
$776,000
$1,043,000

$320,400
$931,200
$1,251,600

$0
$0
$0
$0
$0
$0
$0
$845,000

$0
$0
$0
$0
$0
$0
$0
$1,043,000

$0
$0
$0
$0
$0
$0
$0
$1,251,600

FY 2003

FY 2004

FY 2005

$372,000
$461,903
$833,903

$387,000
$559,611
$946,611

$402,000
$692,670
$1,094,670

$0
$0
$0
$4,020
$0
$0
$0
$837,923

$0
$0
$0
$4,000
$0
$0
$0
$950,611

$0
$0
$0
$4,000
$0
$0
$0
$1,098,670

$7,077
$87,077

$92,389
$179,466

$152,930
$332,397

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 14

Martin Cove Brewing Company

Chart: Cash

Page 15

Martin Cove Brewing Company

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for the next three years.
Table: Balance Sheet

Pro Forma Balance Sheet

FY 2003

FY 2004

FY 2005

$87,077
$125,000
$23,100
$5,000
$240,177

$179,466
$150,000
$35,244
$5,000
$369,710

$332,397
$180,000
$42,293
$5,000
$559,690

$100,000
$26,400
$73,600
$313,777

$100,000
$40,800
$59,200
$428,910

$100,000
$55,200
$44,800
$604,490

FY 2003

FY 2004

FY 2005

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$25,515
$0
$0
$25,515

$47,830
$0
$0
$47,830

$57,747
$0
$0
$57,747

Long-term Liabilities
Total Liabilities

$35,980
$61,495

$31,980
$79,810

$27,980
$85,727

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$80,000
$133,000
$39,282
$252,282
$313,777

$80,000
$172,282
$96,818
$349,101
$428,910

$80,000
$269,101
$169,662
$518,763
$604,490

Net Worth

$252,282

$349,101

$518,763

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Page 16

Martin Cove Brewing Company

7.5 Business Ratios

Industry profile ratios based on the Standard Industrial Classification(SIC) code 5181, Beer and
Ale, are shown for comparison.
Table: Ratios
Ratio Analysis
FY 2003

FY 2004

FY 2005

Industry Profile

71.15%

20.00%

20.00%

6.20%

Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

39.84%
7.36%
1.59%
76.54%
23.46%
100.00%

34.97%
8.22%
1.17%
86.20%
13.80%
100.00%

29.78%
7.00%
0.83%
92.59%
7.41%
100.00%

19.00%
28.70%
31.50%
79.20%
20.80%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

8.13%
11.47%
19.60%
80.40%

11.15%
7.46%
18.61%
81.39%

9.55%
4.63%
14.18%
85.82%

32.00%
18.40%
50.40%
49.60%

100.00%
70.00%
65.60%
6.74%
6.73%

100.00%
70.00%
60.97%
7.49%
13.27%

100.00%
70.00%
56.82%
7.80%
19.15%

100.00%
24.60%
15.60%
0.60%
2.80%

Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

9.41
8.51
19.60%
22.24%
17.88%

7.73
6.99
18.61%
39.62%
32.25%

9.69
8.96
14.18%
46.72%
40.10%

2.24
1.07
50.40%
9.10%
18.40%

Additional Ratios

FY 2003

FY 2004

FY 2005

Net Profit Margin

Return on Equity

4.41%
15.57%

9.07%
27.73%

13.24%
32.71%

n.a
n.a

5.34
59
10.91
18.32
28
2.84

5.34
63
10.98
12.17
23
2.49

5.34
63
9.92
12.17
27
2.12

n.a
n.a
n.a
n.a
n.a
n.a

0.24
0.41

0.23
0.60

0.17
0.67

n.a
n.a

$214,662
15.84

$321,881
41.70

$501,943
81.85

n.a
n.a

0.35
8%
3.61
3.53
0.00

0.40
11%
3.86
3.06
0.00

0.47
10%
5.84
2.47
0.00

n.a
n.a
n.a
n.a
n.a

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios

Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 17

Appendix
Table: Sales Forecast

Sales Forecast
Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

$55,000
$0
$55,000

$55,000
$0
$55,000

$60,000
$0
$60,000

$65,000
$0
$65,000

$75,000
$0
$75,000

$85,000
$0
$85,000

$85,000
$0
$85,000

$80,000
$0
$80,000

$80,000
$0
$80,000

$80,000
$0
$80,000

$100,000
$0
$100,000

$70,000
$0
$70,000

Sales
Microbrews
Other
Total Sales
Direct Cost of Sales
Microbrews
Other
Subtotal Direct Cost of Sales

0%
0%

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

$16,500

$16,500

$18,000

$19,500

$22,500

$25,500

$25,500

$24,000

$24,000

$24,000

$30,000

$21,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$16,500

$16,500

$18,000

$19,500

$22,500

$25,500

$25,500

$24,000

$24,000

$24,000

$30,000

$21,000

Page 1

Appendix
Table: Personnel

Personnel Plan
Bottling and Shipping Mgr
Brewing Mgrs (2)
Marketing and Sales Mgr
Bottling Staff
Shipping Staff
Total People
Total Payroll

0%
0%
0%
0%
0%

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$4,000
$8,000
$4,000
$9,000
$6,000
11

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

Page 2

Appendix
Table: General Assumptions

General Assumptions
Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

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%

Plan Month

Other

Jan

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Sales

$55,000

$55,000

$60,000

$65,000

$75,000

$85,000

$85,000

$80,000

$80,000

$80,000

$100,000

$70,000

Direct Cost of Sales

$16,500

$16,500

$18,000

$19,500

$22,500

$25,500

$25,500

$24,000

$24,000

$24,000

$30,000

$21,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$16,500

$16,500

$18,000

$19,500

$22,500

$25,500

$25,500

$24,000

$24,000

$24,000

$30,000

$21,000

Gross Margin

$38,500

$38,500

$42,000

$45,500

$52,500

$59,500

$59,500

$56,000

$56,000

$56,000

$70,000

$49,000

Gross Margin %

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

70.00%

Other Production Expenses

Expenses
Payroll

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

Sales and Marketing and Other

Expenses
Depreciation

$5,000

$6,000

$6,000

$5,000

$5,000

$5,000

$5,000

$5,000

$6,000

$5,000

$5,000

$5,000

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

$1,200

Sales Commission

$1,650

$1,650

$1,800

$1,950

$2,250

$2,550

$2,550

$2,400

$2,400

$2,400

$3,000

$2,100

Utilities

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$200

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$1,400

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

$4,650
$0

Total Operating Expenses

$46,100

$47,100

$47,250

$46,400

$46,700

$47,000

$47,000

$46,850

$47,850

$46,850

$47,450

$46,550

Profit Before Interest and Taxes

($7,600)

($8,600)

($5,250)

($900)

$5,800

$12,500

$12,500

$9,150

$8,150

$9,150

$22,550

$2,450

EBITDA

($6,400)

($7,400)

($4,050)

$300

$7,000

$13,700

$13,700

$10,350

$9,350

$10,350

$23,750

$3,650

$331

$328

$325

$322

$319

$317

$314

$311

$308

$305

$303

$300

($2,379)

($2,678)

($1,672)

($367)

$1,644

$3,655

$3,656

$2,652

$2,353

$2,653

$6,674

$645

Insurance
Rent
Payroll Taxes
Other

Interest Expense
Taxes Incurred

15%

Net Profit

($5,551)

($6,249)

($3,902)

($856)

$3,836

$8,528

$8,530

$6,187

$5,489

$6,191

$15,573

$1,505

Net Profit/Sales

-10.09%

-11.36%

-6.50%

-1.32%

5.12%

10.03%

10.04%

7.73%

6.86%

7.74%

15.57%

2.15%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Cash Sales

$13,750

$13,750

$15,000

$16,250

$18,750

$21,250

$21,250

$20,000

$20,000

$20,000

$25,000

$17,500

Cash from Receivables

$40,000

$41,375

$41,250

$41,375

$45,125

$49,000

$56,500

$63,750

$63,625

$60,000

$60,000

$60,500

Subtotal Cash from Operations

$53,750

$55,125

$56,250

$57,625

$63,875

$70,250

$77,750

$83,750

$83,625

$80,000

$85,000

$78,000

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (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

$0

$0

$0

$0

$0

$0

$0

$0

$53,750

$55,125

$56,250

$57,625

$63,875

$70,250

$77,750

$83,750

$83,625

$80,000

$85,000

$78,000

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Cash Spending

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

$31,000

Bill Payments

$20,883

$26,586

$29,193

$33,418

$35,537

$42,440

$47,462

$44,126

$40,041

$42,287

$42,183

$57,746

Subtotal Spent on Operations

$51,883

$57,586

$60,193

$64,418

$66,537

$73,440

$78,462

$75,126

$71,041

$73,287

$73,183

$88,746

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

$335

$335

$335

$335

$335

$335

$335

$335

$335

$335

$335

$335

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

$52,218

$57,921

$60,528

$64,753

$66,872

$73,775

$78,797

$75,461

$71,376

$73,622

$73,518

$89,081

$1,532

($2,796)

($4,278)

($7,128)

($2,997)

($3,525)

($1,047)

$8,289

$12,249

$6,378

$11,482

($11,081)

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Subtotal Cash Received

Expenditures

0.00%

Expenditures from Operations

Additional Cash Spent

Long-term Liabilities Principal Repayment

Subtotal Cash Spent

Net Cash Flow

Page 5

Appendix
Cash Balance

$81,532

$78,735

$74,457

$67,330

$64,332

$60,807

$59,760

$68,049

$80,298

$86,676

$98,158

$87,077

Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

$80,000
$80,000
$20,000
$5,000
$185,000

$81,532
$81,250
$18,150
$5,000
$185,932

$78,735
$81,125
$18,150
$5,000
$183,010

$74,457
$84,875
$19,800
$5,000
$184,132

$67,330
$92,250
$21,450
$5,000
$186,030

$64,332
$103,375
$24,750
$5,000
$197,457

$60,807
$118,125
$28,050
$5,000
$211,982

$59,760
$125,375
$28,050
$5,000
$218,185

$68,049
$121,625
$26,400
$5,000
$221,074

$80,298
$118,000
$26,400
$5,000
$229,698

$86,676
$118,000
$26,400
$5,000
$236,076

$98,158
$133,000
$33,000
$5,000
$269,158

$87,077
$125,000
$23,100
$5,000
$240,177

$100,000
$12,000
$88,000
$273,000

$100,000
$13,200
$86,800
$272,732

$100,000
$14,400
$85,600
$268,610

$100,000
$15,600
$84,400
$268,532

$100,000
$16,800
$83,200
$269,230

$100,000
$18,000
$82,000
$279,457

$100,000
$19,200
$80,800
$292,782

$100,000
$20,400
$79,600
$297,785

$100,000
$21,600
$78,400
$299,474

$100,000
$22,800
$77,200
$306,898

$100,000
$24,000
$76,000
$312,076

$100,000
$25,200
$74,800
$343,958

$100,000
$26,400
$73,600
$313,777

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Starting Balances

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$20,000
$0
$0
$20,000

$25,618
$0
$0
$25,618

$28,081
$0
$0
$28,081

$32,241
$0
$0
$32,241

$34,129
$0
$0
$34,129

$40,855
$0
$0
$40,855

$45,986
$0
$0
$45,986

$42,794
$0
$0
$42,794

$38,631
$0
$0
$38,631

$40,900
$0
$0
$40,900

$40,222
$0
$0
$40,222

$56,866
$0
$0
$56,866

$25,515
$0
$0
$25,515

Long-term Liabilities
Total Liabilities

$40,000
$60,000

$39,665
$65,283

$39,330
$67,411

$38,995
$71,236

$38,660
$72,789

$38,325
$79,180

$37,990
$83,976

$37,655
$80,449

$37,320
$75,951

$36,985
$77,885

$36,650
$76,872

$36,315
$93,181

$35,980
$61,495

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$80,000
$109,000
$24,000
$213,000
$273,000

$80,000
$133,000
($5,551)
$207,449
$272,732

$80,000
$133,000
($11,801)
$201,199
$268,610

$80,000
$133,000
($15,703)
$197,297
$268,532

$80,000
$133,000
($16,559)
$196,441
$269,230

$80,000
$133,000
($12,722)
$200,278
$279,457

$80,000
$133,000
($4,194)
$208,806
$292,782

$80,000
$133,000
$4,336
$217,336
$297,785

$80,000
$133,000
$10,524
$223,524
$299,474

$80,000
$133,000
$16,013
$229,013
$306,898

$80,000
$133,000
$22,204
$235,204
$312,076

$80,000
$133,000
$37,777
$250,777
$343,958

$80,000
$133,000
$39,282
$252,282
$313,777

Net Worth

$213,000

$207,449

$201,199

$197,297

$196,441

$200,278

$208,806

$217,336

$223,524

$229,013

$235,204

$250,777

$252,282

Page 6