August 1998

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

 Table of Contents

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

1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 Key Success Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 Company Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3.0 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.3 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.4 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.5 Macro-environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.6 Important Features and Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.7 Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.8 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.9 Future Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3.1 Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3.2 Distributing a Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3.3 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.3.4 Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.2.1 Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.2.2 Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.3 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
5.4 Strategic Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

6.1 Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.2 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.3 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

7.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7.2 Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
7.4 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
7.5 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
7.6 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
7.7 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
 Table of Contents
7.8 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

8.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.1 Implementation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.2 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
 Palms and Bonds

1.0 Executive Summary

We are currently in a highly lucrative market in a rapidly growing economy. The current trend
towards an increase in the number of entrepreneurs and competition amongst existing
companies presents an opportunity for an increased demand for market information and
services that will enable companies to stay ahead of the pack.

Our services will be positioned very carefully: they will be of extremely high quality, relevant,
timely and accurate, tailored to the clients' needs so as to enable them to make the right
decisions, in turn leading towards growth of their companies, benefiting the overall economy.

Palms and Bonds offers the expertise that a proactive-oriented and market-opportunity
seeking company needs to develop and enter new product distribution and new market
segments in new markets. We intend to provide a number of necessary services to the
business community and to the public. These can be summed up in two main divisions --
Business and Training Services. Our business services can be taken as marketing research,
market research reports, project-based consulting, business and marketing plans, plan
consulting and writing, high-level retainer consulting and company registration. Our training
services include workshops and seminars on such topics as sales and marketing, as well as in-
house training of receptionists, secretaries, and sales and marketing personnel.

Our marketing strategy will be based mainly on ensuring that customers know what needs the
services are able to fulfill, and making the right information available to the right target
customer. We intend to implement a market penetration strategy that will ensure that we are
well known and respected in our respective industry. We will ensure that our services' prices
take into consideration people's budgets, and that these people appreciate the services, know
that it exists, and where to find it. The marketing will convey the sense of quality in every
picture, every promotion, and every publication. Our promotional strategy will involve
integrating advertising, events, personal selling, public relations, direct marketing and Internet
marketing, details of which are provided in the marketing section of this plan.

Our target markets will range from persons in the corporate towers, small or medium
businesses, to home institutions needing information on their particular area of concern. The
common bond will be the appreciation of the importance of quality information that will enable
correct decisions to be made, holding all things equal. Palms and Bonds prides itself on its
analytical ability, its value-added service, competitive fees, its high standards of quality and its
adaptability to changes in the market and in the method of its practice.

Palms and Bonds intends to provide the client with more than just information and planning
tools. We intend to provide quality information that is customized to the client's needs, in the
process assisting them on how best to use the available information. By employing our
services, our clients are assured of consultants dedicated to finding the right answers for their
business and enabling them to benefit long after we have finished our work. We are in this line
of work because we like efficiency and because we understand and believe in problem solving
and market/marketing research.

As we grow we want to grow right. For example we recognize that we have to be in constant
touch with our stakeholders to ensure market knowledge at all times. This is the nature of the
channels we deal with. Also, we intend to build our management team correctly. We need the
right people in the right place at the right time if we are to ensure optimum growth. We intend
to develop our team so that our people can grow as the company grows -- a mutually
beneficial relationship.

In a nutshell, we don't just intend to market and sell our service, but to market and sell
customized information, solutions and a total-quality environment. This will ensure we
establish a reputable corporate image.

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 Palms and Bonds

Note: All displayed currency values represent Botswanan Pula (P).

Highlights (Planned)

$800,000

$700,000

$600,000

$500,000
Sales
$400,000 Gross Margin

$300,000 Net Profit

$200,000

$100,000

$0
1999 2000 2001

1.1 Objectives

Our business strategy will revolve around the need to provide quality information to our
various target clients/customers, in the process fully satisfying their needs. This shall be
undertaken through recruitment of a professional marketing research and business
consultancy team and the production of good quality reports designed to cater to the client's
needs. These reports/proposals shall be professionally done so as to be reflective of our
intended image and reputation. We shall position ourselves as a quality service provider that
strives to provide accuracy, relevancy and specific information. We intend to establish a good
rapport with all the relevant government agencies and private institutions that may in turn
refer us to aspiring entrepreneurs.

With time our presence on the World Wide Web will increase the knowledge of our services to
the various market segments we shall be targeting. This is particularly so with foreign firms
looking at establishing themselves in Botswana, hence providing them easy access to local
information. In such a case Web presence is a natural objective in reaching the appropriate
potential customers. We also intend to have brochures that will enable clients to have an
understanding of the types of services we offer and advantages of doing so. In addition to well-
done brochures, company profiles and business cards often have a triggering effect on clients
contemplating investing in Botswana. These will undoubtedly generate increased sales of our
products.

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 Palms and Bonds

1.2 Mission

Palms and Bonds offers clients reliable, quality information and proposals for business
development, market development, and channel development that will maximize business
development. A true alternative to in-house resources we offer a very high level of practical
experience, know-how, contacts, and confidentiality. At Palms and Bonds we are able to
provide comprehensive solutions to our clients' problems that will foster business
development. Clients must know that working with Palms and Bonds is a more professional,
less risky way to develop new areas even than working completely in-house with their own
people. Palms and Bonds must also be able to maintain financial balance, charging a
competitive and realistic value for its services, and delivering an even higher value to its
clients. Initial focus will be development of the local market clientele.

Our mission statement is:

"We endeavor to understand our customers' business so well as to be able to offer
comprehensive solutions to their problems."

1.3 Key Success Factors

The keys to Palms and Bonds success will undoubtedly be effective market segmentation
through identification of several niche markets and implementation strategies. Along these
lines the company intends to implement personal selling and direct marketing strategies to the
target markets. Our personal selling marketing strategies will rotate around keeping in touch
with investment and finance bodies for major clients and word-of-mouth for more individual
investors. our key success factors will include the following:

1. Excellence in fulfilling the promise: completely confidential, reliable, trustworthy

expertise and information. This dictates that we have the latest technology and
software.
2. Uncompromising commitment to the quality of the work: that is, quality data,
information and solutions.
3. Developing visibility to generate new business leads.
4. Leveraging from a single pool of expertise into multiple revenue generation
opportunities: retainer consulting, project consulting, market research, and market
research published reports.
5. Successful niche marketing: we intend to find and target the quality-conscious
customer in the right channels, making sure that the customer will find us through
aggressive marketing.
6. Timeous response to clients orders: we cannot afford to delay the client's order for
whatever reason as this will have a negative bearing on our image and reputation,
including future business. We need to be continually communicating with the client.
7. Marketing know-how: in an increasingly competitive market there is need to
aggressively market our business and the services we provide so as to be continuously
at the top of our prospective and current clients minds.
8. Entrepreneurial Flair: market volatility and increasing duplication of business ideas
advocates that we continuously keep abreast of new trends and our competitors.

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 Palms and Bonds

2.0 Company Summary

Palms and Bonds is a relatively new company providing high-level expertise in local business
development, market identification and development, channel development, distribution
strategies, and marketing strategies for all types of products and services. It will focus initially
on providing and satisfying two kinds of markets:

1. Providing market research to local clients looking at developing their businesses for the
increasingly competitive markets, be they new or established.

2. Providing market research services to foreign investors looking at investing in the local
markets.

As it grows it will take on people and consulting work in related markets. It will also look for
additional leverage by establishing relationships and representations with international market
research organizations.

2.1 Company Ownership

Palms and Bonds is a Private Limited company formed on the 28th of April 1999. Its fiscal year
is the calendar year. Messrs. TTT. and SSS. equally own the company.

2.2 Company Services

Palms and Bonds offers expertise in market research, channel distribution, channel
development, and market development that allow clients to choose their preferred
relationship: these include retainer consulting relationships, project-based consulting, sales
representation and market representation, project-based market research, published market
research, information forum events, business plans, and marketing plans.

2.3 Start-up Summary

Total start-up capital and expenses covered (including legal costs, logo design, stationery and
related expenses) came to approximately P49,600. Start-up assets required and utilized
included personal computers, vehicles, office furniture, and other office equipment. Please find
below the start-up table.

Note: All displayed currency values represent Botswanan Pula (P).

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 Palms and Bonds

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $1,200
Stationery etc. $2,000
Brochures $3,000
Sales Calls $1,200
Expensed equipment $20,000
Rent $1,200
Staff training $5,000
Communications system $5,000
Other $11,000
Total Start-up Expense $49,600

Start-up Assets Needed

Cash Balance on Starting Date $20,400
Other Short-term Assets $0
Total Short-term Assets $20,400

Long-term Assets $0
Total Assets $20,400
Total Requirements $70,000

Funding

Investment
Mr. T. $35,000
Mr. S. $35,000
Other $0
Total Investment $70,000

Short-term Liabilities
Accounts Payable $0
Current Borrowing $0
Other Short-term Liabilities $0
Subtotal Short-term Liabilities $0

Long-term Liabilities $0
Total Liabilities $0

Loss at Start-up ($49,600)

Total Capital $20,400
Total Capital and Liabilities $20,400

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 Palms and Bonds

Start-up

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
Expenses Assets Investment Loans

3.0 Services

Palms and Bonds offers the expertise a proactive-oriented and market-opportunity seeking
company needs to develop and enter new product distribution and new market segments in
new markets. We intend to provide a number of necessary services to the business community
and to the public. These can be summed up in two areas -- Business and Training Services.
Our business services can be taken as high-level retainer consulting, market research reports,
project-based consulting, business and marketing plans, plan consulting and writing, and
company registration. Our training services include workshops and seminars on such topics as
sales and marketing, as well as in-house training of receptionists, secretaries, and sales and
marketing personnel.

3.1 Service Description

Our business planning services include: assisting companies with the research and structuring
of comprehensive, written business and marketing plans; providing a written business plan
package, which delivers a complete, detailed business plan to the client, specifically designed
to meet their needs, that is, FAP applications, bank loans, NDB loans, restructuring, new
product development, market expansion, etc.

In many cases, small businesses often consider next year's budget an acceptable business
plan. Any investor or banker will disagree and insist on much more information prior to making
a financial decision regarding funding a business. We want to provide the opportunity for
businesses, which have potential to receive the funding that would help them become solid
employers.

• Market research: (Discussion omitted in this sample business plan)

• Retainer consulting: (Discussion omitted)
• Cash Flow Analysis: (Discussion omitted)

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 Palms and Bonds
• Project consulting: (Discussion omitted)

3.2 SWOT Analysis

We are presently in a highly lucrative market in a rapidly growing economy. We foresee our
strengths as the ability to respond timeously to the market dictates and to provide custom
designed market research services to our clients. In addition through aggressive marketing
and quality management we intend to become a well respected leader in our respective
industry. Our key personnel have a wide and thorough knowledge of the local and international
markets and expertise, which will go a long towards penetrating the market. However, we
acknowledge the fact that few companies are aware of the actual importance of market
research and marketing and its contribution to the whole business strategy. Below are the
summarized strengths, weaknesses, opportunities, and threats.

3.2.1 Strengths

• Strategic market segmentation and implementation strategies.

• Diversified market segments. Ensures the lack of dependency on one particular market.
• Combination of skills in directorship. The directors intend to jointly develop business
strategy and long-term plans, having wide experience in market and product know-
how, and strong financial management and business know-how.
• Establishment and maintenance of a well-known business name.
• An aggressive and focused marketing campaign.
• A marketing plan with clear goals and strategies.

3.2.2 Weaknesses

• Lack of a solid well-established network in the market research arena.

• The introduction of new organizational practices and personnel who have not previously
worked together presents a challenge to the organization.
• Establishment on the Internet will produce technological challenges.

3.2.3 Opportunities

• Specific niche. Appreciation for high quality, accurate, unbiased and relevant
information.
• The introduction of the International Financial Services Centre (IFSC) presents a vast
opportunity, as both foreign and local firms will be looking for information, which may
assist on entering their respective markets.
• Current growth of the economy in comparison to other economies presents an
opportunity for an increased number of foreign investors to invest in the markets.
• The current drive towards localization is causing an increasing number of local
individuals to invest and start their own businesses.
• The new generation of entrepreneurs, corporations, professionals, business owners has
a far greater appreciation for the need for adequate planning and relevant information.
• Internet marketing and sales -- though still in its infancy.
• Increasing number of foreign firms, especially from South Africa looking at penetrating
the local markets.

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 Palms and Bonds
• Financial assistance given by the government on the credibility of business plans.
However the results of the review of the FAP by the Botswana Institute of Development
Policy Analysis need to be taken into consideration as it could be scrapped or replaced
by a new scheme.
• Existence of well-established government organs that deal directly with aspiring
entrepreneurs -- local and foreign, presents us with a networking opportunity.

3.2.4 Threats

The present growth in the economy may result in increased numbers of business consultants,
leading to increased competition and confusion amongst clients. This competition could emerge
from a variety of given sources including:

• Established mass-market consultants' development of new lines and vertically

integrating so as to be totally in control of all services required by the client.
• New marketing strategies and tactics by established companies.
• Existing competition.
• The current plethora of 'fly-by-night' business consultancy firms in existence.
• Other start-up companies generated by healthy economic growth nation-wide.
• Existence of well established government organs that deal directly with aspiring
entrepreneurs, both local and foreign.

3.3 Competitive Comparison

We have sought to identify competition in terms of companies that satisfy the same client
needs that we intend to. Our competitors are few in our main service, and, including
Government agencies, numerous in our ancillary services. There will be a need to strongly
differentiate ourselves from these other businesses. However on a broader scale our
competition comes in several forms:

1. The most significant competition is no market research consulting at all, companies

choosing to do market research, business development and channel development in-
house. Their own managers do this on their own, as part of their regular business
functions. Our key advantage in competition with in-house development is that
managers are already overloaded with responsibilities, they don't have time for
additional responsibilities in new market development or new channel development.
Also, Palms and Bonds can approach alliances, investment bodies, and channels on a
confidential basis, gathering information and making initial contacts in ways that the
corporate managers can't.
2. The high-level prestige management consulting: XXX and international firms. These are
essentially generalists who take their name-brand management consulting into
specialty areas. Their other very important weakness is the management structure that
has the partners selling new jobs, and inexperienced associates delivering the work.
We compete against them as experts in our specific fields, and with the guarantee that
our clients will have the top-level people doing the actual work.
3. The third general kind of competitors are the various trading and Investment bodies.
These companies are formidable competitors for published market research and market
forums, but cannot provide the kind of high-level customized consulting that Palms and
Bonds will provide.
4. The fourth kind of competition are the business consultancy firms, which undertake
business plans for various organizations. For example: LLL, MMM, NNN, and OOO
Consultancy.

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 Palms and Bonds
5. The fifth kind of competition are the numerous "fly-by-night" business consultants that
claim to offer the same services as we do. Often they offer a below par service with no
qualified personnel.

3.4 Critical Issues

The critical issues emerge from the SWOT analysis and review of the market. Having
acknowledged these factors we where able to make the following summarization:

1. We are currently in a highly lucrative market in a rapidly growing economy. Having

undertaken a thorough SWOT analysis we may conclude that our intended business will
be in a category, which may be classified as Ideal -- whereby it is high in major
opportunities and low in major threats.
2. We foresee our intended ability to respond timeously to the market dictates and to
provide quality information designed to match the client's needs as a major variable in
enabling us to compete in the market. This is especially so in the case of market
research as the new millennium will see even more organizations needing such to be
undertaken on their behalf due to the time and non-biased factors. Through continuous
research and development of current and potential markets, and a well-integrated
promotional strategy we intend to be able to fully satisfy the client beyond their
expectations. In the long run this will ensure that we establish a good reputation for
ourselves as well as continual referrals.
3. Our key personnel have a wide and thorough knowledge of the local market and
expertise, which will go a long way towards penetrating the market. However we
acknowledge the weakness of a medium-sized company without a lot of experience,
and the threat of new competition taking aim at our niche.

3.5 Macro-environment

At a large scale, market research demonstrates that the business consultancy market we
intend to enter is growing and changing. Generally there is a trend toward executive turnover
in medium to large companies today. That is, corporate restructuring, privatization, and
increased small business development providing for a younger more ambitious market in the
executive and small business sector. Research indicates that this new generation of executives
being more educated and aware of the global environment assesses and implements
information to a much higher degree than past trends have indicated. This is exacerbated by
the increase in competition in all industries making it necessary for individuals to have relevant
information at their fingertips. Therefore with the emergence of this generation of individuals,
the appreciation of quality information and business solutions/ recommendations that provide
for and enables the company to grow, dictates that our service lines will be popular.

The current drive by the government towards a more diversified economy presents an
opportunity for our business to propel and excel in our intended markets, benefiting from the
support of the concerned institutions and trade bodies. In addition with the country
increasingly becoming an economic hub we foresee the demand for high quality information to
be on the rise. Through undertaking of our business activities professionally we foresee that it
should not be too difficult to gain market acceptance provided we deliver the final product
timeously and of good quality, at competitive prices.

Furthermore Small, Medium and Micro Enterprises are well recognized as a potentially
important source of employment generation apart from the diversification that they inevitably
result in. They in turn reflect the declining importance of centralized mass production, along
with technical change, the growth of information technology and the growth of the service

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sector.

Employment in Botswana by the type of Employer

Government 36%
Large Employer 32%
Medium Employer 4%
Small Employer 14%
Micro Employer 14%

Source: BIDPA estimates

3.6 Important Features and Comparison

Although there are a number of attorneys and accountants who write or assist in writing a
business plan, the reality is that these professionals provide invaluable services in the areas in
which they specialize, but lack the imagination to write a comprehensive and effective business
plan. The attorneys tend to dwell on the legal aspects and contractual arrangements while
accountants sweat over the balance sheets, cash flow statements, product costs and income
statements. Additionally, these vitally necessary professionals cannot afford to spend the
many hours necessary to work on a business plan when they could be earning much more per
hour concentrating on their particular field of expertise.

Our expertise lies in the ability to listen to a business owner and perceive their vision for their
company over the next few years. We can envision what the business person is looking for in
the future, then put it in writing and at a cost they can live with.

3.7 Sales Literature

The business will begin with a general corporate brochure establishing the positioning. This
brochure was developed as part of the start-up expenses including the business cards and
Company Profile, mainly for the large organizations that often recommend services to potential
investors. Compliment slips are also on the cards so as to raise awareness of the company and
its services.

Literature and mailings for the initial market forums will be very important.

3.8 Technology

Palms and Bonds will maintain the latest market research software and Windows capabilities
including:

1. Complete email facilities on the Internet for working with clients directly through email
delivery of drafts and information.
2. Complete presentation facilities for preparation and delivery of multimedia
presentations on Windows machines, in formats including on-disk presentation, live
presentation, or video presentation.
3. Complete desktop publishing facilities for delivery of regular retainer reports, project
output reports, marketing materials, and market research reports.

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3.9 Future Services

In putting the company together we have attempted to offer enough services to allow us to
always be in demand by our clients. However, economics has provided us with a new era of
opportunities for the small business in which we can only guess at the needs. The most
important factor in developing future services is market need. Our understanding of the needs
of our target market segments is one of our competitive advantages. It is critical to our effort
to develop the right new services. We also have what we call a "core service engine" (market
research) that will be the foundation of future products. In the future, Palms and Bonds will
broaden its coverage by expanding into additional markets (e.g., the whole of southern Africa)
and additional product areas. However in doing so we will strive to ensure that it is compatible
with the existing services.

Now we have the possibility of new money being loosened for entrepreneurs and that means
there will be a substantial increase in the number of feasibility studies and business plans. This
provides additional business for virtually every area of business service we provide.

We are also studying the possibility of newsletter or electronic newsletter services (for the
international market), or perhaps special on-topic reports, pending further research on client
needs.

4.0 Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has
been brought about by amongst other things, the relaxation of foreign exchange policies and
macro economic policies geared towards attracting foreign investors into the country. The
fiscal and monetary policies of the government geared towards maintaining growth with social
justice have largely contributed towards this, evidenced by our economy averaging a growth
rate of 7% since 1990 -- very high by international standards.

The current drive and emphasis by the government on diversification of the industrial base
away from the minerals sector presents an opportunity for Palms and Bonds to make a
valuable contribution towards achieving this goal. This will result in implementation of modern
market research techniques and transfer of knowledge. Having undertaken a thorough and
comprehensive research of the market we realized that there was a need for a specialized
market research firm that focuses on producing market research reports that are tailored to
the clients needs. Though there are business consultancy firms currently on the market, some
of whom have been in existence for a relatively long period of time, we believe that there is a
market need for one (ourselves in this instance) that particularly focuses on market research.
We intend to provide services of extremely high quality -- something that cannot be over-
emphasized in the international arena with the current drive towards globalization.

We appreciate that entering such a market is not a bed of roses and intend to implement an
aggressive marketing strategy, well supported by the other business functions. The above
prognosis influenced our decision to enter the business consultancy industry.

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4.1 Market Segmentation

Palms and Bonds will be focusing on local businesses and foreign investors looking at investing
in the country. These will be small, medium, and large-sized companies looking for a total
service and quality work.

Our most important group of potential customers are foreign investors. These are potential
investors who want to have a feel and understanding of the local markets and the
opportunities, and constraints they present to them. They do not want to waste their time or
risk their money looking for bargain information or questionable expertise. As they go into
markets looking at new opportunities, they are very sensitive to risking their company's name
and reputation.

Large corporations: one of our most important market segment is the large organization
looking at penetrating new or existing markets. These companies will be calling on Palms and
Bonds for development functions that are better spun off than managed in-house, for market
research, and feasibility studies.

Medium-sized growth companies: particularly in rapidly expanding markets, Palms and Bonds
will offer an attractive development alternative to the company that is management
constrained and unable to address opportunities in new markets and new market segments.

Small-sized companies: in an increasingly competitive environment entrepreneurs are

becoming more cautious in the markets they seek to enter and on establishing new market
opportunities. They are often seeking for prior research to be done to identify possible markets
that are suited to their resources and capabilities.

Hence the most likely types of businesses to require our services would include:

• New businesses seeking investment or start-up capital

• New firms looking at investing in the country
• Existing companies which are expanding or introducing a new product/ service.

The table below summarizes the total market potential.

Market Analysis (Pie)

Small sized companies

Medium sized companies
Professional firms
Large sized companies
Financial institutions
Other

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Table: Market Analysis

Market Analysis
Potential Customers Growth 1998 1999 2000 2001 2002 CAGR
Small sized companies 2% 200 204 208 212 216 1.94%
Medium sized companies 8% 1,200 1,296 1,400 1,512 1,633 8.01%
Professional firms 9% 900 981 1,069 1,165 1,270 8.99%
Large sized companies 1% 100 101 102 103 104 0.99%
Financial institutions 14% 70 80 91 104 119 14.19%
Other 3% 150 155 160 165 170 3.18%
Total 7.60% 2,620 2,817 3,030 3,261 3,512 7.60%

4.2 Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right information available to the
right target customer. We will ensure that our services' prices take into consideration people's
budgets, and that these people appreciate the service and know that it exists, including where
to find it. The marketing will convey the sense of quality in every picture, every promotion,
and every publication. There is already a sense of segment strategy in the way we define our
target market. We are choosing to compete in areas that lend themselves to local competition,
service and channel areas that match our strengths, and avoid our weaknesses.

Our strategy calls for the development of relationships with investment bodies, attorneys,
accountants and financial institutions to support our business with referrals. Interviews with
commercial loan officers have indicated that there is a serious need for a professional firm like
ours to help their clients in market/marketing research, and development of comprehensive
and concise business and marketing plans.

4.2.1 Market Needs

Palms and Bonds intends to provide the client with more than general market information. We
intend to provide accurate, relevant, specific and timely information that will enable our clients
to make more accurate decisions. This information we intend to be available to our clients at
competitive rates.

We understand that our target markets need more than just information but information that
will enable them to make more informed decisions. Our target client wants information that is
relevant to their needs and easily understandable so as to make the right decisions. We don't
just intend to provide a service, but to provide one of unparalleled nature relative to the
market.

4.2.2 Market Trends

Our intended markets are increasingly growing towards recognizing the difference between
poor quality business consultancy service and that of high quality. This development is an
important trend for us as it represents our target market, and hence opportunity. We now are
having an increasing number of people who appreciate quality information and the importance
of having comprehensive and concise market and business plans undertaken.

Another trend is the one toward greater use of specialized and focused consultants, instead of
in-house resources. Companies are looking for out-sourcing (but unfortunately few offer such
a service) and, in general, a preference for variable costs instead of fixed costs.

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4.3 Service Business Analysis

The consulting "industry" is pulverized and disorganized, with many smaller consulting
organizations and individual consultants for every one of the few dozen well-known companies.
These other organizations often offer a service, which is not to the client's satisfaction. In
addition they often claim to offer a service, which they are not fully capable of providing
satisfactorily.

Consulting participants range from major international name-brand consultants to hundreds of

individuals. One of Palms and Bonds' challenges will be establishing itself as a real consulting
company, specializing in market research, positioned as a relatively risk-free corporate
purchase. The business consulting industry may be segmented by economics and needs
patterns. This incorporates some of the service type differences, but in a more practical sense:

Mainline Services: these include marketing/market research undertaken through

advertising, direct mail, referrals and sales literature. Essentially these will be customized to
the client's needs.

Ancillary Services: these include services such as trading licenses and company formation,
which tend to be similar with not much to differentiate amongst providers except speed of
execution. We intend to have an extremely efficient and 'state-of-the-art' business centre that
will cater to our clients' needs. Service provider decisions don't tend to be major
decisions/events covering relatively insignificant amounts.

4.3.1 Business Participants

At the highest level are the few well-established major names in management consulting. Most
of these are organized as partnerships established in major markets around the world, linked
together by interconnecting directors and sharing the name and corporate wisdom. Some
evolved from accounting companies and some from management consulting. These companies
charge very high rates for consulting, and maintain relatively high overhead structures and
fulfillment structures based on partners selling and junior associates fulfilling.

(Discussion omitted in this sample plan)

4.3.2 Distributing a Service

Consulting is sold and purchased mainly on a word-of-mouth basis, with relationships and
previous experience being, by far, the most important factor.

The major name-brand houses have locations in the main mall, and executive-level managers
or partners develop new business through industry associations, business associations,
chambers of commerce and industry, etc., and in some cases social associations such as
country clubs.

The medium-level houses tend to be general in terms of services and specific in terms of
target market -- targeting FAP seeking clients/individuals. They are not easily able to leverage
their business through distribution, which we intend to be one of our competitive advantages.

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4.3.3 Competition and Buying Patterns

The key element in purchase decisions made at the Palms and Bonds client level is trust in the
professional reputation and reliability of the consulting firm. The most important factor in this
market is the quality of the service. The majority of the investment referrals said they were
not satisfied with the current plans often submitted for their approval as they were of poor
quality.

4.3.4 Main Competitors

There are numerous companies operating in Gaborone who classify themselves as "business
consultants". However, upon contacting these, it appears that the vast majority of these
companies are bookkeeping and secretarial services companies. There are some companies
that provide services similar to those offered by us and that is good, but none of them
specialize in market/marketing research. The following are some of our main competitors:

The high-level prestige management consulting firms

Strengths: Prime locations managed by owner-partners with a high level of presentation and
understanding of general business. Enviable reputations, which make purchase of consulting
an easy decision for a manager, despite the very high prices.

Weaknesses: General business knowledge doesn't substitute for the specific market, channel,
and distribution expertise of Palms and Bonds, focusing on local markets and
products/services. Also, fees are extremely expensive, and work is generally done by very
junior-level consultants, even though sold by high-level partners.

General Business Consultancy firms

Strengths: Expertise in certain functional areas particularly bookkeeping. Palms and Bonds
intends not to compete with general business consultancy firms in these markets.

Weaknesses: The inability to spread beyond a specific focus, or to rise above a specific focus,
to provide actual marketing and market research expertise, experience, and wisdom beyond
the specifics.

The most significant competition is no consulting at all, companies choosing to do

market research, business development and channel development in-house.

Strengths: No incremental cost except travel; also, the general work is done by the people
who are entirely responsible, the planning is done by those who will implement it.

Weaknesses: Most managers are terribly overburdened already, unable to find incremental
resources in time and people to apply to incremental opportunities. Also, there is a lot of
additional risk in market and channel development done in-house from the ground up. Finally,
retainer-based antenna consultants can greatly enhance a company's reach and extend its
position into conversations that might otherwise never have taken place.

Attorneys and Accounting firms

Strengths: Able to provide sound accounting or legal advice and services with the plans being
done by the partners.

Weaknesses: They often lack the imagination to write a comprehensive and effective business

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plan. The attorneys tend to dwell on the legal aspects and contractual arrangements while
accountants sweat over the balance sheets, cash flow statements, product costs and income
statements. Very little market research, if any, is often undertaken, and often ineffectively.

5.0 Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are a relatively small
company and hence must focus on certain kinds of services with certain kinds of users. Initially
Palms and Bonds will focus on the local market and in the market research and training fields.
The target customers will include key decision-makers in the large, medium and small-sized
organizations in a start-up and growth periods.

• We are currently building image and awareness through consistency and

distinctiveness in our service provision.
• We intend to focus on delivering quality service and end product that in turn produces
good referrals, which can then generate revenue.
• We intend to always have a relatively heavy personal selling component to our
marketing. Hence we intend to always be active in personal relationships with clients
and strategic allies keeping abreast of their needs and wants.
• We are focusing advertising on several key media.

5.1 Competitive Edge

Our competitive edge will be our dominance of market information, customer orientation and
traditional hardwork Although there are many "supposed" business consultants we intend to
offer more than just a professional service but mesh well the various crafts together
harmoniously.

Though we shall be serving different market segments we intend to focus on the individual or
group who wants high quality information and plans customised to their needs. In the case of
marketing and business plans they should be able to work harmoniously/beautifully in the
intended environment, both on a macro and micro scale. Though our clients might range from
large corporations, small or medium businesses, institutions or resellers what is important to
the customer is total satisfaction with the end product matched to their capabilities and
resources.

5.2 Marketing Strategy

One core element of our strategy will be that of differentiation from our competitors. In terms
of marketing, we intend to sell our company as a differentiated strategic ally, not just our
services. In price, we intend to offer reasonable and competitive prices in comparison to
competition and we need to be able to sustain that. Market penetration through lower prices
shall be undertaken where need be whilst premium pricing in the case of high quality services
targeted at the upper-end of the market. Our service marketing will recognize more that our
product. Service and establishing long relationships with clients will be key to our future
service marketing. We primarily intend to sell a relationship more than services.

Our service marketing will emphasize the benefits of conducting adequate planning and the
use of quality information and identification of 'windows of opportunity'. We intend to sell
access to market knowledge and quality. This will come out in our advertising, delivery and
collateral such as sales literature and business cards. Our service marketing's most important

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challenge will be the problem of being accepted and appreciated on the market as a provider
of quality marketing research services and business plans. Hence we intend to not only meet
client's expectations but to exceed them.

We intend to focus on the individual or group who wants information that may not be readily
available, specially customized to their requirements. However not wanting to limit our
horizons in the initial period we intend to serve other clients requiring services such as
company registration and trading licenses.

In all cases we intend to provide a thorough understanding and appreciation of the service to
the client as well as follow up to ensure customer satisfaction. We also intend to inform the
customer on how best to maintain and/or improve their market positions.

5.2.1 Pricing Strategy

Palms and Bonds will be competitively priced in relation to the dictates of the market. The
pricing fits with the general positioning of Palms and Bonds as providing high-level quality
expertise.

We intend our income structure to match our cost structure, so as to ensure that the
salaries/consultants fees we pay to assure good reports and service are balanced by the fee
we charge. We will make sure that we charge for the service, workmanship and any delivery
with our aim being to achieve a gross profit margin of at least 50%. Naturally services
targeted at the higher end of the market will have higher mark ups as these clients are less
price sensitive. All in all we intend our prices to be extremely competitive on the market.

Consulting will be based on Pula per hour per project in the initial year for project consulting,
market research, and retainer consulting. With time and as we become known on the market
we foresee an increase in our consultancy fee -- tempered by market dictates. Market
research reports should be competitively priced which will, of course, require that reports be
very well planned, focusing on very important topics, and well presented.

5.2.2 Promotion Strategy

Our promotion strategy will be based primarily on informing potential customers of our
existence and making the right information available to our target customer. Since we shall be
targeting different segments the promotional tools and messages may vary slightly to match
the intended market. However in all cases the marketing will convey the sense of quality and
professionalism in every picture, every promotion and every publication. In such a market we
cannot afford to appear in or produce second-rate material with poor labels that make our
services look less than they are. Hence we intend to leverage our presence using quality
brochures and other sales literature, including promotional material such as pens,
complimentary slips and stickers. We intend to spread the word about our business through
the following:

• Advertising (Discussion omitted)

• Personal Selling (Discussion omitted)
• Public Relations (Discussion omitted)
• Direct Marketing (Discussion omitted)
• Internet Marketing (Discussion omitted).

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5.3 Sales Strategy

The sales forecast monthly summary is included in the appendix. The annual sales projections
for three years are included in the table below. It should be noted that as we become
established and known on the market we project sales to increase at a faster rate than the
initial year.

Note: All displayed currency values represent Botswanan Pula (P).

Sales Monthly (Planned)

$50,000

$45,000

$40,000

$35,000

$30,000

$25,000 All services

$20,000 Other

$15,000

$10,000

$5,000

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

Table: Sales Forecast (Planned)

Sales Forecast
Sales 1999 2000 2001
All services $366,300 $612,000 $734,400
Other $0 $0 $0
Total Sales $366,300 $612,000 $734,400

Direct Cost of Sales 1999 2000 2001

All services $79,500 $117,000 $140,400
Other $0 $0 $0
Subtotal Direct Cost of Sales $79,500 $117,000 $140,400

5.4 Strategic Alliances

In today's volatile and competitive environment it is becoming increasingly essential for

organizations to concentrate on their core activities so as to gain and maintain a competitive
advantage. This brings out the advantage of undertaking strategic alliances with organizations
that the firm may benefit from and vice versa.

At this writing, strategic alliances with ZZZ and YYY are possibilities, given the content of
existing interest and discussions. We are also looking at establishing alliances with several
accounting and legal firms, which often come into contact with our target market. Given the
background of prospective partners, we might also be talking to United States and South

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African companies in the near future.

6.0 Management Summary

The management team mainly comprising the shareholders has wide expertise and broad
knowledge of the services and markets, which if well planned for, will enable the business to
realize its goals and objectives. As we grow, we will take on additional consulting help and
personnel.

Management style will reflect the participation of the shareholders. The company intends to
respect its community and treat all employees well. We will develop and nurture the company
as community. We do not intend to be very hierarchical.

6.1 Organizational Structure

Palms and Bonds shall be managed by working partners. The company, simply because of its
size, will function more as a partnership than a corporate organization, in the early stages.
With such a group, it will be simple to communicate with and support one another. As the
company grows there will be more structure to the organization, with new employees being
assigned a supervisor or subordinate. When the company is at its full staff potential, it will
operate as any closely held organization, but maintain the personal interest in each employee's
personal and family welfare and their contributions to the business. In the beginning we
assume four partners: (Discussion omitted in this sample plan).

6.2 Management Team

Palms and Bonds business requires a very high level of knowledge, analytical ability and
expertise, which means that it will not be easily leveragable in the common consulting
company mode in which partners run the business and make sales, while associates fulfill.
Partners will necessarily be involved in the fulfillment of the core business proposition,
providing the expertise to the clients. The initial personnel plan is still tentative. It should
involve three to five partners, one to three consultants, with good staff support, an office
manager, and a secretary. Later, we intend to add more partners, consultants, and sales staff.

Partners' resumes were included as an attachment to this plan, but have been omitted in this
sample plan.

6.3 Personnel Plan

The detailed monthly personnel plan for the first year is included in the appendix. The annual
personnel estimates are included here. We believe this plan is a acceptable compromise
between fairness and expedience, and meets the commitments of our mission statement. We
do not intend to be a large organization or "top heavy" as our industry does not require our
doing so. We want the company to stay lean and flexible so that we can respond to a client's
needs quickly. To do this, we will use outside consultants whose fees, in most cases, will be
passed on to the client, indirectly, through our fees. However as we expand and increase in
size (increase in the number of projects received) we do expect to increase our personnel.

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We intend to compensate our personnel well, so as to retain their invaluable expertise and to
ensure job satisfaction and enrichment through delegation of authority. Our compensation will
include health care, generous profit sharing, plus a minimum of three weeks vacation.

In-house training shall be continuous with regular external training being undertaken
particularly following any new developments in the market. This is to ensure that we are
continuously able to anticipate our client's problems and needs and provide them with
solutions -- a proactive approach, which is so essential in our line of business.

We acknowledge the fact that successful recruiting, motivation and discipline procedures are
keys to the growth of the organization. Hence we intend to promote and maintain good labour
relations, strong morale and high quality work per employee through undertaking the
following: (Discussion omitted).

Note: All displayed currency values represent Botswanan Pula (P).

Table: Personnel (Planned)

Personnel Plan
1999 2000 2001
Partners $0 $72,000 $82,800
Internal Consultants $16,000 $16,000 $16,000
External Consultants $26,000 $18,000 $20,700
Office Manager $9,000 $18,000 $20,700
Personal Assistant $9,200 $9,000 $10,356
Secretarial Staff $3,600 $6,000 $6,900
Research Staff $4,500 $3,600 $4,140
Other $9,000 $0 $0
Total Payroll $77,300 $142,600 $161,596

Total People 0 0 0
Payroll Burden $0 $0 $0
Total Payroll Expenditures $77,300 $142,600 $161,596

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7.0 Financial Plan

We want to finance growth mainly through cash flow and equity. We recognize that this means
we will have to grow more slowly than we might like.

The most important factor in our case is collection days. We can't push our clients hard on
collection days, because they are in larger companies and will normally have marketing
authority, not financial authority. Therefore we need to develop a permanent system of
receivables financing, using one of the established financial companies in that business. In turn
we intend to ensure that our investors are compatible with our growth plan, management style
and vision. Compatibility in this regard means:

1. A fundamental respect for giving our customers value, and for maintaining a healthy
and congenial workplace.
2. Respect for realistic forecasts, and conservative cash flow and financial management.
3. Cash flow as first priority, growth second, profits third.
4. Willingness to follow the company and contribute valuable input to strategy and
implementation decisions.

Of these only the last two are flexible.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the
following table as annual assumptions. The monthly assumptions are included in the
appendices. From the beginning, we recognize that collection days are critical, but not a factor
we can influence easily. At least we are planning on the problem, and dealing with it. Interest
rates, tax rates, and personnel burden are based on conservative assumptions.

Some of the more important underlying assumptions are:

• We assume a strong economy, without major recession.

• We assume, of course, that there are no unforeseen changes in economic policy to
make our clients' products immediately obsolete.

The table below summarizes key financial assumptions, including 30-day average collection
days, sales entirely on invoice basis including the 30% deposit policy, expenses mainly on net
30 basis, 30 days on average for payment of invoices, and present-day interest rates.
Table: General Assumptions

General Assumptions
1999 2000 2001
Short-term Interest Rate % 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00%
Tax Rate % 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00%
Sales on Credit % 75.00% 75.00% 75.00%
Personnel Burden % 0.00% 0.00% 0.00%

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7.2 Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three years.
We foresee major growth in sales and operating expenses, and a bump in our collection days
as we spread the business during expansion.

Collection days are very important. We do not want to let our average collection days get
above 30 under any circumstances. This could cause a serious problem with cash flow,
because our working capital situation is chronically tight. However, we recognize that we
cannot control this factor easily, because of the relationship with our clients.

Benchmarks (Planned)

2
2
2
1
1 1998
1 1999
1 2000
1
0
0
0
Sales Gross OpEx AR Est.

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7.3 Break-even Analysis

The following table summarizes our break-even analysis. With fixed costs of P9,250 per month
at the outset (a bare minimum), we need to bill P11,600 to cover our costs. We don't really
expect to reach break-even until several months into the business operation. The break-even
assumes variable costs of 20 percent of revenue. This assumption is probably too high, and
therefore conservative, because, at least in the beginning, most of our cost of fulfillment is
actually the compensation of the consultants.

Note: All displayed currency values represent Botswanan Pula (P).

Break-even Analysis

$10,000

$5,000

$0

($5,000)

($10,000)
$0 $4,000 $8,000 $12,000 $16,000 $20,000

Monthly break-even point

Break-even point = where line intersects with 0

Table: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 11,555
Monthly Sales Break-even $11,555

Assumptions:
Average Per-Unit Revenue $1.00
Average Per-Unit Variable Cost $0.20
Estimated Monthly Fixed Cost $9,244

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7.4 Expense Forecast

Initial marketing expenses were relatively high as we sought to become known on the market.
This was brought about by the development of sales literature, advertising expenses, function
expenses including lunches and dinners with interested stakeholders. As our market share
increases and capital is generated, further marketing programs and the expansion of those in
existence at the time will be undertaken, to ensure market development. The expenses
generated by our marketing strategies will be high in the initial stages of design and
implementation. However with time these programs will start generating revenue for the
business, which we shall in turn reinvest. The fruits of the above are soon to be gained.

7.5 Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more
than P366,000 the first year to P612,000 the second, and P734,400 in the third year. Profits
are calculated to be around P175,870 the first year during the start-up phase of this business.
This will be representative of a net profit margin of approximately 36%, which though it may
not seem that impressive is relatively good for a start-up firm in our business. Hence we do
expect to more than break-even in the first year of operation.

As with the break-even, we are projecting very conservatively regarding cost of sales and
gross margin. Our cost of sales should be much lower, and gross margin higher, than in this
projection. Initially, we will depend on our internal consultants for most of fulfillment, which is
why costs should be lower than shown, although occasionally we shall engage the services of
outside consultants as discussed in our personnel plan. We prefer to project conservatively so
that we make sure we have enough cash.

Note: All displayed currency values represent Botswanan Pula (P).

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 Palms and Bonds

Table: Profit and Loss (Planned)

Pro Forma Profit and Loss

1999 2000 2001
Sales $366,300 $612,000 $734,400
Direct Cost of Sales $79,500 $117,000 $140,400
Other $0 $0 $0
------------ ------------ ------------
Total Cost of Sales $79,500 $117,000 $140,400
Gross Margin $286,800 $495,000 $594,000
Gross Margin % 78.30% 80.88% 80.88%
Operating Expenses:
Advertising/Promotion $7,830 $6,000 $7,200
Travel $4,800 $3,600 $4,200
Miscellaneous $2,400 $2,400 $3,000
Payroll Expense $77,300 $142,600 $161,596
Payroll Burden $0 $0 $0
Depreciation $0 $0 $0
Public Relations $2,400 $2,400 $3,600
Utilities $1,800 $1,800 $2,400
Insurance $0 $0 $0
Rent $14,400 $18,000 $19,200
Contract/Consultants $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $110,930 $176,800 $201,196
Profit Before Interest and Taxes $175,870 $318,200 $392,804
Interest Expense Short-term $0 $0 $0
Interest Expense Long-term $0 $0 $0
Taxes Incurred $43,968 $79,550 $98,201
Extraordinary Items $0 $0 $0
Net Profit $131,903 $238,650 $294,603
Net Profit/Sales 36.01% 39.00% 40.11%

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 Palms and Bonds

7.6 Projected Cash Flow

Cash flow projections are critical to our success. The first year monthly cash flow chart
appears below and the monthly figures are shown in the appendices. The annual cash flow
figures are included here.

Note: All displayed currency values represent Botswanan Pula (P).

Cash (Planned)

$140,000

$120,000

$100,000

$80,000
Net Cash Flow
$60,000 Cash Balance

$40,000

$20,000

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

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 Palms and Bonds

Table: Cash Flow (Planned)

Pro Forma Cash Flow 1999 2000 2001

Cash Received
Cash from Operations:
Cash Sales $91,575 $153,000 $183,600
From Receivables $240,795 $436,241 $539,462
Subtotal Cash from Operations $332,370 $589,241 $723,062

Additional Cash Received

Extraordinary Items $0 $0 $0
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 Short-term Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $332,370 $589,241 $723,062

Expenditures 1999 2000 2001

Expenditures from Operations:
Cash Spent on Costs and Expenses $15,710 $23,075 $27,820
Wages, Salaries, Payroll Taxes, etc. $77,300 $142,600 $161,596
Payment of Accounts Payable $125,828 $200,380 $245,681
Subtotal Spent on Operations $218,838 $366,055 $435,097

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 Short-term Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Adjustment for Assets Purchased on Credit $0 $0 $0
Subtotal Cash Spent $218,838 $366,055 $435,097

Net Cash Flow $113,532 $223,186 $287,965

Cash Balance $133,932 $357,119 $645,084

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 Palms and Bonds

7.7 Projected Balance Sheet

The balance sheet shows healthy growth of net worth, and strong financial position.

Note: All displayed currency values represent Botswanan Pula (P).

Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

Assets
Short-term Assets 1999 2000 2001
Cash $133,932 $357,119 $645,084
Accounts Receivable $33,930 $56,689 $68,027
Other Short-term Assets $0 $0 $0
Total Short-term Assets $167,862 $413,807 $713,110
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $167,862 $413,807 $713,110

Liabilities and Capital

1999 2000 2001
Accounts Payable $15,560 $22,855 $27,555
Current Borrowing $0 $0 $0
Other Short-term Liabilities $0 $0 $0
Subtotal Short-term Liabilities $15,560 $22,855 $27,555

Long-term Liabilities $0 $0 $0
Total Liabilities $15,560 $22,855 $27,555

Paid-in Capital $70,000 $70,000 $70,000

Retained Earnings ($49,600) $82,303 $320,953
Earnings $131,903 $238,650 $294,603
Total Capital $152,303 $390,953 $685,556
Total Liabilities and Capital $167,862 $413,807 $713,110
Net Worth $152,303 $390,953 $685,556

7.8 Business Ratios

The following table provides important business ratios for the consulting industry, as
determined by the Standard Industry Classification (SIC) Index code 8742, Management
Consulting Services.

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 Palms and Bonds

Table: Ratios (Planned)

Ratio Analysis
1998 1999 2000 Industry Profile
Sales Growth 0.00% 67.08% 20.00% 8.60%

Percent of Total Assets

Accounts Receivable 20.21% 13.70% 9.54% 24.40%
Inventory 0.00% 0.00% 0.00% 3.80%
Other Short-term Assets 0.00% 0.00% 0.00% 46.70%
Total Short-term Assets 100.00% 100.00% 100.00% 74.90%
Long-term Assets 0.00% 0.00% 0.00% 25.10%
Total Assets 100.00% 100.00% 100.00% 100.00%

Other Short-term Liabilities 0.00% 0.00% 0.00% 42.80%

Subtotal Short-term Liabilities 9.27% 5.52% 3.86% 33.70%
Long-term Liabilities 0.00% 0.00% 0.00% 17.20%
Total Liabilities 9.27% 5.52% 3.86% 50.90%
Net Worth 90.73% 94.48% 96.14% 49.10%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 78.30% 80.88% 80.88% 0.00%
Selling, General & Administrative Expenses 42.29% 41.89% 40.77% 83.50%
Advertising Expenses 2.14% 0.98% 0.98% 1.20%
Profit Before Interest and Taxes 48.01% 51.99% 53.49% 2.60%

Main Ratios
Current 10.79 18.11 25.88 1.59
Quick 10.79 18.11 25.88 1.26
Total Debt to Total Assets 9.27% 5.52% 3.86% 60.00%
Pre-tax Return on Net Worth 115.47% 81.39% 57.30% 4.40%
Pre-tax Return on Assets 104.77% 76.90% 55.08% 10.90%

Business Vitality Profile 1998 1999 2000 Industry

Sales per Employee $0 $0 $0 $0
Survival Rate 0.00%

Additional Ratios 1998 1999 2000

Net Profit Margin 36.01% 39.00% 40.11% n.a
Return on Equity 86.61% 61.04% 42.97% n.a

Activity Ratios
Accounts Receivable Turnover 8.10 8.10 8.10 n.a
Collection Days 23 36 41 n.a
Inventory Turnover 0.00 0.00 0.00 n.a
Accounts Payable Turnover 9.09 9.09 9.09 n.a
Total Asset Turnover 2.18 1.48 1.03 n.a

Debt Ratios
Debt to Net Worth 0.10 0.06 0.04 n.a
Short-term Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $152,303 $390,953 $685,556 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.46 0.68 0.97 n.a
Current Debt/Total Assets 9% 6% 4% n.a
Acid Test 8.61 15.63 23.41 n.a
Sales/Net Worth 2.41 1.57 1.07 n.a
Dividend Payout $0 0.00 0.00 n.a

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 Palms and Bonds

8.0 Controls

The local business consultancy market has been growing steadily over the last several years.
With this in mind we intend our marketing programs to expand accordingly. The introduction
of quality sales and marketing literature will enable Palms and Bonds to effectively market to
potential customers with a positive image and impression. We project sales to increase
accordingly, as we continue establishing a reputation for ourselves, especially in the market
research area. With time a presence on the internet and participation in local and regional
conferences and trade shows will be key milestones to expanding sales and marketing
potentials through the utilization of new channels and identification of potential customers.

Throughout the year we intend to undertake regular evaluations of our business and
marketing programs so as to ensure that we are in line with our intended objectives. In
summary we intend to undertake the following:
1. Tracking and follow-up: we intend to have the discipline, as an organization, to track
results of the business plan and make sure that we implement.
2. Market segment focus: we intend to have the discipline to maintain the market
segment focus.
3. Saying no: though difficult initially we intend to be able to say no to special deals that
take us away from the target focus and are unprofitable.

8.1 Implementation Programs

Palms and Bonds will start to establish alliances with reputable and reliable suppliers of
information. We will continue preparing our sales literature mainly in-house with the assistance
of a reputable printing organization agency. We also intend to engage the services of well
qualified consultants. Thereafter there shall be delegation of responsibility for maximum
effectiveness.

8.2 Contingency Planning

We intend to watch our results very carefully. We may need to concentrate less on certain
services than others, if we intend to get the margin up or clients become difficult to attract.
We might be able to avoid the straight competition with the major companies by focusing
more on the previously mentioned services -- market and marketing research.

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 Appendix

Appendix Table: Sales Forecast (Planned)

Sales Forecast
Sales Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
All services $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800

Direct Cost of Sales Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
All services $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500

Page 1
 Appendix

Appendix Table: Personnel (Planned)

Personnel Plan
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Partners $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Internal Consultants $0 $0 $0 $0 $0 $0 $0 $0 $4,000 $4,000 $4,000 $4,000
External Consultants $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $4,000 $4,000 $4,000 $4,000
Office Manager $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Personal Assistant $600 $600 $600 $600 $800 $800 $800 $800 $800 $800 $800 $1,200
Secretarial Staff $0 $0 $0 $400 $400 $400 $400 $400 $400 $400 $400 $400
Research Staff $0 $0 $0 $500 $500 $500 $500 $500 $500 $500 $500 $500
Other $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total Payroll $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100

Total People 0 0 0 0 0 0 0 0 0 0 0 0
Payroll Burden $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Payroll Expenditures $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100

Page 2
 Appendix

Appendix Table: General Assumptions

General Assumptions
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Short-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%
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 % 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Sales on Credit % 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00%
Personnel Burden % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Page 3
 Appendix

Appendix Table: Profit and Loss (Planned)

Pro Forma Profit and Loss

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Sales $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800
Direct Cost of Sales $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Gross Margin $7,250 $5,300 $8,550 $13,800 $20,800 $25,300 $31,300 $31,300 $31,300 $37,300 $37,300 $37,300
Gross Margin % 85.29% 77.94% 79.17% 82.14% 80.62% 72.70% 76.72% 76.72% 76.72% 79.70% 79.70% 79.70%
Operating Expenses:
Advertising/Promotion $900 $630 $630 $630 $630 $630 $630 $630 $630 $630 $630 $630
Travel $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Miscellaneous $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Payroll Expense $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100
Payroll Burden $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Public Relations $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Utilities $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $3,650 $3,380 $3,380 $8,280 $8,480 $8,480 $8,480 $8,480 $14,480 $14,480 $14,480 $14,880
Profit Before Interest and Taxes $3,600 $1,920 $5,170 $5,520 $12,320 $16,820 $22,820 $22,820 $16,820 $22,820 $22,820 $22,420
Interest Expense Short-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $900 $480 $1,293 $1,380 $3,080 $4,205 $5,705 $5,705 $4,205 $5,705 $5,705 $5,605
Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit $2,700 $1,440 $3,878 $4,140 $9,240 $12,615 $17,115 $17,115 $12,615 $17,115 $17,115 $16,815
Net Profit/Sales 31.76% 21.18% 35.90% 24.64% 35.81% 36.25% 41.95% 41.95% 30.92% 36.57% 36.57% 35.93%

Page 4
 Appendix

Appendix Table: Cash Flow (Planned)

Pro Forma Cash Flow Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Cash Received
Cash from Operations:
Cash Sales $2,125 $1,700 $2,700 $4,200 $6,450 $8,700 $10,200 $10,200 $10,200 $11,700 $11,700 $11,700
From Receivables $213 $6,333 $5,200 $8,250 $12,825 $19,575 $26,250 $30,600 $30,600 $30,750 $35,100 $35,100
Subtotal Cash from Operations $2,338 $8,033 $7,900 $12,450 $19,275 $28,275 $36,450 $40,800 $40,800 $42,450 $46,800 $46,800

Additional Cash Received

Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 Short-term 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
Subtotal Cash Received $2,338 $8,033 $7,900 $12,450 $19,275 $28,275 $36,450 $40,800 $40,800 $42,450 $46,800 $46,800

Expenditures Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Expenditures from Operations:
Cash Spent on Costs and Expenses $520 $476 $632 $716 $1,086 $1,649 $1,799 $1,799 $1,649 $1,799 $1,799 $1,789
Wages, Salaries, Payroll Taxes, etc. $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100
Payment of Accounts Payable $156 $4,667 $4,331 $5,715 $6,555 $9,943 $14,882 $16,187 $16,142 $14,882 $16,187 $16,184
Subtotal Spent on Operations $1,276 $5,743 $5,563 $11,931 $13,341 $17,291 $22,380 $23,685 $29,490 $28,380 $29,685 $30,072

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Short-term 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
Adjustment for Assets Purchased on Credit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $1,276 $5,743 $5,563 $11,931 $13,341 $17,291 $22,380 $23,685 $29,490 $28,380 $29,685 $30,072

Net Cash Flow $1,062 $2,290 $2,337 $519 $5,934 $10,984 $14,070 $17,115 $11,310 $14,070 $17,115 $16,728
Cash Balance $21,462 $23,751 $26,088 $26,607 $32,541 $43,524 $57,594 $74,709 $86,019 $100,089 $117,204 $133,932

Page 5
 Appendix

Appendix Table: Balance Sheet (Planned)

Pro Forma Balance Sheet

Assets
Short-term Assets Starting Balances Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Cash $20,400 $21,462 $23,751 $26,088 $26,607 $32,541 $43,524 $57,594 $74,709 $86,019 $100,089 $117,204 $133,932
Accounts Receivable $0 $6,163 $4,930 $7,830 $12,180 $18,705 $25,230 $29,580 $29,580 $29,580 $33,930 $33,930 $33,930
Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Short-term Assets $20,400 $27,624 $28,681 $33,918 $38,787 $51,246 $68,754 $87,174 $104,289 $115,599 $134,019 $151,134 $167,862
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $20,400 $27,624 $28,681 $33,918 $38,787 $51,246 $68,754 $87,174 $104,289 $115,599 $134,019 $151,134 $167,862

Liabilities and Capital

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Accounts Payable $0 $4,524 $4,141 $5,501 $6,229 $9,448 $14,342 $15,647 $15,647 $14,342 $15,647 $15,647 $15,560
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Short-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Short-term Liabilities $0 $4,524 $4,141 $5,501 $6,229 $9,448 $14,342 $15,647 $15,647 $14,342 $15,647 $15,647 $15,560

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $4,524 $4,141 $5,501 $6,229 $9,448 $14,342 $15,647 $15,647 $14,342 $15,647 $15,647 $15,560

Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Retained Earnings ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600)
Earnings $0 $2,700 $4,140 $8,018 $12,158 $21,398 $34,013 $51,128 $68,243 $80,858 $97,973 $115,088 $131,903
Total Capital $20,400 $23,100 $24,540 $28,418 $32,558 $41,798 $54,413 $71,528 $88,643 $101,258 $118,373 $135,488 $152,303
Total Liabilities and Capital $20,400 $27,624 $28,681 $33,918 $38,787 $51,246 $68,754 $87,174 $104,289 $115,599 $134,019 $151,134 $167,862
Net Worth $20,400 $23,100 $24,540 $28,418 $32,558 $41,798 $54,413 $71,528 $88,643 $101,258 $118,373 $135,488 $152,303

Page 6