This sample business plan has been made available to users of Business Plan Pro, business planning

software published by Palo Alto Software, Inc. Names, loc ations 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 c opy this plan as it exists here.
Requests for reprints, ac ademic 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.

Confidentiality Agreement

The undersigned reader ac knowledges that the information provided by _______________ in this
business plan is confidential; therefore, reader agrees not to disc lose it without the express
written permission of _______________.
It is ac knowledged 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 disc losure or use of same by reader, may cause serious harm or damage to
_______________.
Upon request, this doc ument 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
1.1 Mission........................................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Start-up Summary ......................................................................................................................2
Table: Start-up .........................................................................................................................3
Chart: Start-up .........................................................................................................................3
2.2 Company Locations and Facilities ..........................................................................................3
3.0 Products ...............................................................................................................................................4
3.1 Product Description...................................................................................................................4
3.2 Technology..................................................................................................................................5
3.3 Future Products ..........................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation ................................................................................................................6
4.2 Industry Analysis .........................................................................................................................7
4.3 Target Market Segment Strategy.............................................................................................7
Table: Market Analysis ...........................................................................................................7
Chart: Market Analysis (Pie) ..................................................................................................8
5.0 Strategy and Implementation Summary ............................................................................................8
5.1 Competitive Edge ......................................................................................................................8
5.2 Marketing Strategy.....................................................................................................................9
5.2.1 Pricing Strategy.............................................................................................................9
5.3 Sales Strategy............................................................................................................................9
5.4 Strategic Alliances .....................................................................................................................9
6.0 Sales Forecast ..................................................................................................................................10
Table: Sales Forecast ..........................................................................................................10
Chart: Sales Monthly.............................................................................................................10
Chart: Sales by Year.............................................................................................................11
7.0 Management Summary ....................................................................................................................11
7.1 Personnel Plan.........................................................................................................................11
Table: Personnel ...................................................................................................................12
8.0 Financial Plan Summary...................................................................................................................13
8.1 Start-up Funding ......................................................................................................................13
Table: Start-up Funding........................................................................................................14
8.2 Important Assumptions............................................................................................................15
Table: General Assumptions ...............................................................................................15
8.3 Break-even Analysis................................................................................................................16
Chart: Break-even Analysis .................................................................................................16
Table: Break-even Analysis .................................................................................................16
8.4 Projected Profit and Loss .......................................................................................................17
Table: Profit and Loss ..........................................................................................................17
Chart: Profit Monthly .............................................................................................................18
Chart: Profit Yearly................................................................................................................18
Chart: Gross Margin Monthly ...............................................................................................19
Chart: Gross Margin Yearly..................................................................................................19
8.5 Projected Cash Flow...............................................................................................................20
Chart: Cash ...........................................................................................................................20
Table: Cash Flow..................................................................................................................21
Page 1

Table of Contents
8.6 Projected Balance Sheet ........................................................................................................22
Table: Balance Sheet ...........................................................................................................22
8.7 Business Ratios .......................................................................................................................23
Table: Ratios .........................................................................................................................24
Table: Sales Forecast ...............................................................................................................................1
Table: General Assumptions ....................................................................................................................2
Table: Cash Flow .......................................................................................................................................3
Table: Balance Sheet ................................................................................................................................4
Table: Profit and Loss ...............................................................................................................................5
Table: Personnel ........................................................................................................................................6

Page 2

Farmers Group
1.0 Executive Summary
Introduction
Farmers Group is being formed from the ac quisition of two successful vegetable farms, Green
Ac res Vegetable Farm and Mobile Farmers Vegetable Farm. The latter has long-researched
horticultural and agronomic techniques, as well as compost and soil blending technology now
being promoted by the DEO, the USDA, the EPA, and other government agencies.
The company is a combination of cutting edge, highest quality, and efficient food technology
and production. It is committed to the improvement of food taste and nutritional quality. It is
being founded to build upon an extensive array of biological and horticultural education,
experience, and the research of its founders. This is further coupled with the experience of
James Jackson, the current manager of Mobile Farmers Vegetable Farm, and consultation with
the present owner of Green Acres Vegetable Farm, Errol Grynthum.
The Company
Farmers Group is an Alabama- based company, loc ated in Calhoun c ounty, whose mission is to
provide high quality, nutritional, and flavorful vegetables and strawberries for consumption in
both near and remote regions of the United States. Additionally the company will provide high
quality planting materials for use nationwide.
Farmers Group is the buyout and merger of two successful vegetable farms. The idea behind
the business is to provide healthy and delicious vegetables and fruit to the public. In addition
to vegetables and fruits, the company plans to produce and market manure compost garden
amendment products.
Farmers Group's management team is led by Mr. James Jackson as Business Manager, who has
extensive knowledge of the industry. The company expec ts to employ five temporary
employees during the equipment re-loc ation phase, four employees on a permanent basis,
and three part-time employees.
Products
Farmers Group's plans to concentrate on vegetables as its primary product. This includes growing
carrots, romaine lettuce, leeks, red onions, summer squash, spinach, pumpkins, winter squash,
globe beets, and winter greens. The company's farm, will have a capacity sufficient to produce
in excess of 200,000 lbs. of vegetables per year.
The company plans to utilize traditional and more advanced plant technologies to produce new
cultivars of strawberries and lima beans with loc ally-adapted superior charac teristics for the
Gulf-South growing area.
This strategy will allow Farmers Group to produce crops during most of the year and will allow
double cultivation of the greenhouses with almost no additional heating nec essary in the
winter months.
The Market
Over the past dec ade the market for organic food has grown by 15% to 20% and every year
40% of U.S. consumers oc casionally reac h for something labeled organic. Sales for organic
Page 1

Farmers Group
foods are expec ted to top $11 billion this year. Sales by farmers' markets have increased by 79%
since 1994, to 3,137 markets in all 50 states, and the number of farmers who sell at them has
more than tripled to 67,000. About three million Americans a week now get their fresh food
directly from the farmers who grew it. This makes for an excellent environment for a industry
participant such as Farmers Group that is willing to compete in a niche market and be first to the
market with new products.
Financial Considerations
The company is seeking $830,000 in both short-term and long-term loans to finance the
purchase of Farmers Group's new farm, upgrade the fac ilities, and cover start-up expenses and
first year losses. It is estimated that the company will begin to make a profit in Year 2 of
operations. The company does not expec t to have any cash flow problems during the first four
years of operations.

1.1 Mission
Farmers Group is an Alabama- based company, whose mission is to provide high quality,
nutritional, and flavorful vegetables and strawberries for consumption in both near and remote
regions of the United States. Additionally the company will provide high quality planting materials
for use nationwide.

2.0 Company Summary

Farmers Group is the buyout and merger of two successful vegetable farms. The idea behind
the business is to provide healthy and delicious vegetables and fruit to the public. In addition
to vegetables and fruits, the company plans to produce and market manure compost garden
amendment products.

2.1 Start-up Summary

Projected revenues for Year 1 to Year 5 are $-40,000, $8,500, $50,000, $70,800 and $82,500
respec tively. Additionally the company estimates that once fully operational, income per product,
per annum would be as follows; vegetable ($50,000) manure ($20,000) and horticulture
($10,000).

Page 2

Farmers Group
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Facilities modification
Seed
Organic Herbicides/Pesticides
Consultants
Insurance
Research and development
Expensed equipment
Other
Total Start-up Expenses

$19,000
$300,000
$600
$5,000
$25,000
$10,000
$25,000
$250,000
$50,000
$684,600

Start-up Assets
Cash Required
Start-up Inventory

$245,400
$150,000

Other Current Assets

Long-term Assets
Total Assets

$250,000
$500,000
$1,145,400

Total Requirements

$1,830,000

2.2 Company Locations and Facilities

The farm is loc ated in Calhoun c ounty approximately 4.5 miles outside of Jasper.

Page 3

Farmers Group
The operation will utilize:

One large greenhouse, enclosing the vegetable area.

Horticultural greenhouse.
Filters, water treatment devices.
Bac kwash fac ilities.
Outdoor vegetable fac ilities.
Business office building.

An additional portion of the operation will be the manure composting fac ility. Local and regional
dairy operations have trouble with manure ac cumulations, and the company hopes to enter
into contrac ts in removing the manure. Farmers Group will then turn this into a saleable
product. The company plans to supply the region's nursery outlets with a top-quality, premium
garden and soil amendment product for area horticulture.

3.0 Products
While at Mobile Farmers Vegetable Farm James Jackson, steadily used and experimented with
compost and fertilized with manure of different kinds. The most important things with manure
usage is to eliminate the viable weed seed drawbac k by thoroughly composting the manure, to
add enough c ellulose on product to bring it to the proper ratio and to bring its water content
to proper levels. A properly composted manure product has no seeds that will germinate and
proliferate in it. Additionally, a properly composted manure product has something a chemically
formulated synthetic fertilizer does not have: enzymes. Enzymes are critical for producing a truly
nutritious and superior flavored product. Research has shown that the superior flavor of a fruit or
vegetable is closely related to vitamin c ontent and folic ac id content in green vegetables.
The state-of-the-art vegetable equipment starting up in the new loc ation utilizes revolutionary
harvest designs that:

Allow faster, longer growth

Cut the harvest labor by over 80%
Cut the harvest time and by so doing:
Decrease loss in weight gain, and
Eliminate weight loss from shoc k.

3.1 Product Description

Vegetables
Farmers Group's first line of production will be the green vegetable and red vegetable. During the
summer months Farmers Group will be growing carrots, romaine lettuce, leeks, red onions,
summer squash, and spinach. In the fall, production will center on pumpkins, winter squash,
globe beets and winter greens. With the growth of the popular organic food niche, and the
federal government's new organic labeling policy, Farmers Group will foc us its produce on the
intermediate organic label. This means that approximately 70% of the food production proc ess
will be organic and all foods produced by Farmers Group will be eligible for the "contains organic
ingredients" label. The company's farm will have a capacity sufficient to produce in excess of
200,000 lbs. of vegetables per year.
Page 4

Farmers Group
Strawberries
The company's more technical horticultural aspec ts include efforts to utilize traditional and
more advanced plant technologies to produce new cultivars of crops such as strawberries and
lima beans with loc ally-adapted superior charac teristics for the Gulf-South growing area.
Flavor, disease resistance, adaptability to green-house culture, fall and winter season production
are fac tors being combined in greens cultivation to tap into the $2.99 pint berry market of the
fall and winter.
Farmers Group's strategy is a combination of the two technologies during the cool winter months
which will allow the utilization of normally wasted space in the greenhouses for the high price
winter greens production. This will allow double cultivation of the greenhouses with almost no
additional heating nec essary in this climate.

3.2 Technology
The company is currently seeking contac t with Alabama universities in order to learn about and
ac quire new hybrids of strawberries and vegetables that are hardier and grow faster in our
loc al microc limates. These and other available species and systems will be constantly trac ked.
In addition to the above, the company is seeking contac ts at Universities in Italy and Germany
that are involved in greens, and will continue the quest for the best flavored, large, and firm
fall and winter strawberries.
Currently, Farmers Group is conducting research to test certain c lay-sand-manure mixture
levels to obtain better, cheaper bedding and agronomic soil mixtures that are more effective
than the standard used in the industry in Alabama (Pine bark mulch-composted).

3.3 Future Products

In the meantime, the company would like to explore the possibilities of crayfish production.
Farmers Group believes this to be a high revenue venture with retail prices running in excess of
$15.00 per pound in most plac es. The company also believes that if crayfish production is
successful then it could bec ome the number one endeavor of Farmers Group.
Currently there is a defunct fish farming production fac ility with all the nec essary capital
equipment approximately two miles from the current farm. Purchase of this fac ility would allow
Farmers Group to begin production and to capitalize on this higher margin product. What makes
this most attrac tive is the two ventures have significant joint cost potential, allowing for a
reduction in marginal costs for all products and creation of real economies of sc ale that would
provide Farmers Group with a competitive advantage.

4.0 Market Analysis Summary

At a time when eating has bec ome a political statement, the government is paying up to $19
billion a year to subsidize commodity crops in a glutted global market. Federal officials say that
nearly 40% of all farm income now comes directly from government subsidies, and the farm bill
signed by President Bush this year will pay $190 billion over 10 years, which includes $83 billion in
Page 5

Farmers Group
new spending. However, there are two market niches that are growing at an amazing rate, the
organic market and the simple farmers' market.
The organic market provides less than 2% of the nation's food supply and takes up less than
1% of its cropland. But organic farms are flourishing as never before. Over the past dec ade
the market for organic food has grown by 15 to 20% and every year 40% of U.S.
consumers oc casionally reac h for something labeled organic. Sales for organic foods are
expec ted to top $11 billion this year. Conglomerates as big as Heinz and General Mills are now
launching or buying organic lines and selling them in mainstream supermarkets.*
With no subsidies and no middle men, farmers' markets have increased by 79% since 1994, to
3,137 markets in all 50 states, and the number of farmers who sell at them has more than tripled
to 67,000, the Agriculture Department has reported. About three million Americans a week now
get their fresh food directly from the farmers who grew it. "Right now, green markets are growing
faster than anything in agriculture," said Dr. Steven Blank, a farm economist at the University
of California at Davis and the author of three books on the subject.
These numbers, of course, represent a very thin slice of the big pie of national food. Farmers'
markets reported about $1 billion in sales last year, compared with more than $200 billion in
overall farm revenue. Barely 3% of the nation's two million farmers sell some of what they grow
directly to consumers.
But in an era of big-box food stores, when 10 major groc ery chains control the purchase of
50% of fresh food, the proliferation of open-air markets has come out of nowhere, giving more
consumers an option and allowing many small farmers to stay in business.**
With these trends in mind, Farmers Groups will concentrate on:

Wholesale live vegetable markets nationwide that sell organic produce.

Fresh farmers' markets.
Fall and winter greens market.
Nursery outlets selling composted manure.

*Source: Certified Organic Geoffrey Cowley NEWSWEEK September 30, 2000.

**Source: Farmers Markets Booming Ac ross US Timothy Egan New York Times, September 29,
2000.

4.1 Market Segmentation

The target customers include oriental vegetable markets demanding organic and semi-organic
green vegetables, vegetable proc essors, and private individual buyers through direct selling and
farmers markets. The company will continue to service the existing customers of the
purchased vegetable farms. In its greens production the company will target virtually all main
food outlets. The company plans to use the Internet as one of its marketing channels in the
future.
The company's target customers will be as follows:
Vegetables:

Oriental vegetable markets demanding organic and semi-organic vegetables.

Page 6

Farmers Group

Vegetable proc essors.

Alabama National Guard.
People approaching the farm.
Roadside stands and farmers' markets.

Product-Bagged Manure:

Nursery and Garden Centers.

Private customers approaching fac ility.
Bulk customers.

The company will also take over customers from the previous owner of the vegetable fac ility.
Farmers Group has an established list of present customers of Errol Grynthum's vegetable farm,
which is a major asset to the sales of the company.

4.2 Industry Analysis

Alabama is one of the premier farming areas of the eastern United States. This creates an
intensely competitive environment with a large number of industry participants. Since almost all
of the produce is considered to be commodities, and large scale buyers are more consolidated
than the farmers themselves, overall margins are small and rivalries for wholesaler contrac ts
are strong. Competitive threats come from three main segments:

Imported vegetables of lower quality.>

Mississippi pound raised vegetables.
Alabama vegetable producers.

Direct competition in the individual buyers market segment comes from three farms in the
immediate area including the Anniston farm, Organics- To-You farm, and the Terrance
Livingston vegetable farm. Each of these competitors has produce stands as well as selling to
loc al farmers' markets. However, with the exception of Organics- To-You Farm, none of the
others foc us on a niche market and depend heavily on federal subsidies.

4.3 Target Market Segment Strategy

The Market Analysis Pie shown below reflects the total number of potential customers for
Farmers Group. The number of Oriental markets and vegetable proc essors represent national
estimates of industry participants, whereas the number of individual buyers represents the
estimated annual number of individuals that will be driving by the farm.

Table: Market Analysis

Market Analysis
Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers
Vegetable processors

Growth
3%

5,000

5,150

5,305

5,464

5,628

CAGR
3.00%

Oriental vegetable markets

Individual buyers
Total

1%
5%
4.68%

25,000
300,000
330,000

25,250
315,000
345,400

25,503
330,750
361,558

25,758
347,288
378,510

26,016
364,652
396,296

1.00%
5.00%
4.68%

Page 7

Farmers Group

5.0 Strategy and Implementation Summary

The Farmers Group strategy is to profitably and efficiently utilize present and future agricultural
technology in the production of vegetables. The company, by ac quiring an existing profitable
vegetable farm with all the nec essary custom-innovated equipment, will gain a significant
industry advantage. Additional application and utilization of horticultural technology in the
production of strawberries will allow double utilization of the climate controled portion of the
overhead. Farmers Group hopes to consolidate considerable goodwill already created by
exercising the option of not adding another high-production fac ility to the present supplydemand scenario.
The company's goals in the first year are to:

Prepare the future site.

Reloc ate and expand Green Acres vegetable system and get it operational.
Integrate greens culture into the system.
Have the composting system in full production by early spring of the second year.

The company's long-term plan is to phase out whichever products are least lucrative and replac e
them with products that are prac tical and cost efficient.

5.1 Competitive Edge

Farmers Group's main c ompetitive advantages are:

Efficient production utilizing greenhouses.

Reduced overhead by fully realizing crop output potential and economies of scale
Page 8

Farmers Group

through joint costs.

Knowledge due to research since 1988.

5.2 Marketing Strategy

Farmers Group will initially market and supply its products to target customers. The company is
further exploring marketing opportunities on the Internet. To this extent, the company would like
to set up a website to market its products.
The company will utilize aggressive advertising strategies to further market its products. These
strategies include the promotion of products through the sponsoring of spots on cooking shows
and exhibitions, and also engaging prominent chefs to help promote this fledgling industry.

5.2.1 Pricing Strategy

The company sets its pricing based on market rates as far as vegetable products are concerned.
Farmers Group's pricing for strawberries will exceed the average market price for the following
reasons:

Taste sampling at outlets will be encouraged.

Unparalleled flavor superiority will addict greens tasters.
Promotion of pesticide-free, fumigant-free cultural techniques of soil, environment, ozone,
and health-friendly production techniques.

5.3 Sales Strategy

At Farmers Group, the sales proc ess is primarily the same for vegetables as it is for composting
products, in that both products will be mainly sold through wholesale marketing. As in the past,
live shipments will be delivered by contrac t carriers in spec ial oxygenated tanks carrying 8,000
vegetables or more, and will be continued as demanded. Farmers Group's bagged manure
products will be delivered and unloaded in sizable wholesale quantities by the pallet.
Smaller, more loc al orders will significantly increase the overall sales when the 300-450 live
vegetables carrying tank system is put into service late in 2000 or early in 2001.
The company's average sales cycle from first contac t to closing of the sale is approximately 3 to
12 days for vegetable products. Farmers Group plans to shorten this cycle. Furthermore, the
company estimates that from first contac t to sale conclusion, the cycle for fresh strawberries
will run 3 days or less. Composted products sale cycle should run from 3 to 12 days.
Direct sales contac ts of vegetable markets by delivery personnel, as well as cold calling by
telephone of potential market outlets, will also be employed.

5.4 Strategic Alliances

Page 9

Farmers Group
The company has strategic alliances with:

Alabama State University Horticulture Department

Southeastern Alabama State University Biology Department
Dr. Michael Smith - Vegetable Specialist
James Edwards - Horticultural Inspec tion
Charles Newton - Wildlife
Alabama Wildlife
Mobile Nursery Center

6.0 Sales Forecast

The following table and charts show our projected sales.

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

Year 4

Year 5

Sales
Sales
Other
Total Sales

$575,000
$0
$575,000

$700,000
$0
$700,000

$850,000
$0
$850,000

$889,100
$0
$889,100

$927,331
$0
$927,331

Direct Cost of Sales

Sales
Other
Subtotal Direct Cost of Sales

Year 1
$391,000
$0
$391,000

Year 2
$478,100
$0
$478,100

Year 3
$578,850
$0
$578,850

Year 4
$601,032
$0
$601,032

Year 5
$627,803
$0
$627,803

Page 10

Farmers Group

7.0 Management Summary

Farmers Group's management team is led by Mr. James Jackson, Business Manager, and the
current manager of Mobile Farmers Vegetable Farm, who has extensive knowledge of the industry
and has been trac king vegetable trends for 30 years.
The company's management philosophy is based on responsibility and mutual respec t. Farmers
Group has an environment and structure that encourages productivity and respect for customers
and fellow employees.

7.1 Personnel Plan

Overall, Farmers Group will have 12 personnel. The company expec ts to employ 5 temporary
employees during the equipment re-loc ation phase, 4 employees on a permanent basis, and 3
part-time employee. The Farmers Group team is organized into three groups:
Management
Management will be responsible for supervising and participating in the daily operations of the
fac ility. Management consists of:

James Jackson, Business Manager, Full Time

Terry Howard, Executive Director, Full Time
Kevin Perry, Management Trainee, 3/4 Time
Victor Green, Management Trainee, 1/4 Time

Page 11

Farmers Group
Daily Maintenance
This group will consist of the following:

Henry Jones, Logistical Engineer, Full Time

Colin Henry, Heavy Equipment, Full Time
Michael Owen, Welder, 1/2 Time

Contract Personnel
They will be utilized initially for the moving and setting up of the vegetable farm, greenhouses,
and the building of the manure composting fac ility.

Table: Personnel
Personnel Plan
Business Manager
Executive Director
Manager Trainee
Manager Trainee
Logistic engineer
Heavy equipment
Welder
Contract workers
Total People
Total Payroll

Year 1
$25,000
$25,000
$9,000
$4,000
$18,000
$18,000
$3,500
$15,000
7

Year 2
$30,000
$30,000
$6,000
$6,000
$18,000
$18,000
$3,000
$0
7

Year 3
$30,000
$30,000
$6,000
$6,000
$18,000
$18,000
$3,000
$0
7

Year 4
$30,000
$30,000
$6,000
$6,000
$18,000
$18,000
$3,000
$0
7

Year 5
$30,000
$30,000
$6,000
$6,000
$18,000
$18,000
$3,000
$0
7

$117,500

$111,000

$111,000

$111,000

$111,000

Page 12

Farmers Group
8.0 Financial Plan Summary
The following topics and tables outline our financial plan.

8.1 Start-up Funding

Funding Requirements and Uses
The company is seeking to raise of $830,000 for the purpose of financing the ac quisition of the
Green Acres Vegetable Farm and Mobile Farmers Vegetable Farm, fac ilities modifications,
equipment, and funding operating expenses. Another $1,000,000 will be invested in the
company by its four co-owners. The following is a breakdown of how the funds will be used:
Breakdown of Use
of Funds
Acquisition:
Property
Equipment System
Sub-total

$1,300,000
$400,000
$1,700,000

Operating Expenses:
Salaries

$80,000

Marketing and
promotion

$10,000

Other operating
expenses

$10,000

Sub-total
Total

$100,000
$1,800,000

Page 13

Farmers Group
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$684,600
$1,145,400
$1,830,000

$900,000
$245,400
$0
$245,400
$1,145,400

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$400,000
$400,000
$30,000
$0
$830,000

Capital
Planned Investment
Investor 1
Investor 2
Investor 3

$250,000
$250,000
$250,000

Investor 4
Other
Additional Investment Requirement

$250,000
$0
$0

Total Planned Investment

$1,000,000

Loss at Start-up (Start-up Expenses)

Total Capital

($684,600)
$315,400

Total Capital and Liabilities

$1,145,400

Total Funding

$1,830,000

Page 14

Farmers Group
8.2 Important Assumptions
Nature and Limitation of Projections
This financial projection is based on sales volume at the levels described in the sales
forecast section and presents, to the best of management's knowledge, the company's expec ted
assets, liabilities, capital, and revenues and expenses. The projections reflect management's
judgement of the expec ted conditions and its expec ted course of ac tion given the hypothetical
assumptions.
Nature of Operations
The company is in the business of vegetable farming, greens cultivation, and composting. The
company expec ts to be operating in 2000.
Revenues
The company's revenue is derived primarily from the sale of vegetables, strawberries, and
bagged composted manure products.
Expenses
The company's expenses are primarily those of salaries, utilities, and insurance costs. Other
expenses are based on management's estimates and industry averages.

Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1
1
7.00%
7.00%
20.83%
0

Year 2
2
7.00%
7.00%
20.00%
0

Year 3
3
7.00%
7.00%
20.83%
0

Year 4
4
7.00%
7.00%
20.00%
0

Year 5
5
7.00%
7.00%
20.83%
0

Page 15

Farmers Group
8.3 Break-even Analysis
The company's break-even analysis is given below.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$36,974

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

68%
$11,832

Page 16

Farmers Group
8.4 Projected Profit and Loss
As the profit and loss table shows, Farmers Group expec ts a steady growth in profitability over
the next few years.

Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Direct Cost of Sales

Year 1
$575,000
$391,000

Year 2
$700,000
$478,100

Year 3
$850,000
$578,850

Year 4
$889,100
$601,032

Year 5
$927,331
$627,803

Other
Total Cost of Sales

$10,000
$401,000

$10,000
$488,100

$10,000
$588,850

$10,000
$611,032

$10,000
$637,803

Gross Margin
Gross Margin %

$174,000
30.26%

$211,900
30.27%

$261,150
30.72%

$278,068
31.28%

$289,528
31.22%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Gas and Oil
Utilities
Insurance
Payroll Taxes

$117,500
$11,400
$0
$2,040
$6,000
$5,040
$0

$111,000
$11,100
$0
$3,000
$6,000
$5,500
$0

$111,000
$16,550
$0
$3,000
$6,000
$5,500
$0

$111,000
$15,300
$0
$3,000
$6,000
$5,500
$0

$111,000
$17,550
$0
$3,000
$6,000
$5,500
$0

$0

$0

$0

$0

$0

$141,980

$136,600

$142,050

$140,800

$143,050

$32,020
$32,020

$75,300
$75,300

$119,100
$119,100

$137,268
$137,268

$146,478
$146,478

$54,664
$0

$47,845
$5,491

$39,095
$16,668

$32,095
$21,035

$26,495
$24,996

($22,644)
-3.94%

$21,964
3.14%

$63,337
7.45%

$84,139
9.46%

$94,987
10.24%

Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

Page 17

Farmers Group

Page 18

Farmers Group

Page 19

Farmers Group
8.5 Projected Cash Flow
The chart and table below contain the cash flow assumptions and projections for Farmers
Group during the first five years of plan implementation. Year 1 monthlies are presented in the
appendix.

Page 20

Farmers Group
Table: Cash Flow
Pro Forma Cash Flow
Year 1

Year 2

Year 3

Year 4

Year 5

Cash from Operations

Cash Sales
Cash from Receivables
Subtotal Cash from Operations

$143,750
$431,250
$575,000

$175,000
$525,000
$700,000

$212,500
$637,500
$850,000

$222,275
$666,825
$889,100

$231,833
$695,498
$927,331

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

$0
$0
$0
$0
$0
$0
$0
$575,000

$0
$0
$0
$0
$0
$0
$0
$700,000

$0
$0
$0
$0
$0
$0
$97,000
$947,000

$0
$0
$0
$0
$0
$0
$0
$889,100

$0
$0
$0
$0
$0
$0
$0
$927,331

Year 1

Year 2

Year 3

Year 4

Year 5

$117,500
$408,920
$526,420

$111,000
$525,422
$636,422

$111,000
$676,335
$787,335

$111,000
$686,874
$797,874

$111,000
$721,183
$832,183

$0
$54,000
$0
$0

$0
$100,000
$0
$25,000

$0
$100,000
$0
$25,000

$0
$25,000
$0
$50,000

$0
$35,000
$0
$50,000

$0
$0
$0

$0
$0
$25,000

$0
$0
$20,000

$0
$0
$10,000

$20,000
$0
$10,000

Subtotal Cash Spent

$580,420

$786,422

$932,335

$882,874

$947,183

Net Cash Flow

Cash Balance

($5,420)
$239,980

($86,422)
$153,559

$14,665
$168,224

$6,226
$174,450

($19,852)
$154,598

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

Page 21

Farmers Group
8.6 Projected Balance Sheet
We project solid cash balance and net worth over the years of the plan.

Table: Balance Sheet

Pro Forma Balance Sheet
Year 1

Year 2

Year 3

Year 4

Year 5

Current Assets
Cash
Accounts Receivable

$239,980
$0

$153,559
$0

$168,224
$0

$174,450
$0

$154,598
$0

Inventory
Other Current Assets
Total Current Assets

$55,760
$250,000
$545,740

$53,589
$250,000
$457,147

$64,243
$250,000
$482,467

$57,206
$250,000
$481,655

$60,112
$270,000
$484,710

$500,000
$0
$500,000
$1,045,740

$500,000
$0
$500,000
$957,147

$500,000
$0
$500,000
$982,467

$500,000
$0
$500,000
$981,655

$500,000
$0
$500,000
$984,710

Year 1

Year 2

Year 3

Year 4

Year 5

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$6,984
$346,000
$0
$352,984

$46,427
$246,000
$0
$292,427

$56,410
$146,000
$0
$202,410

$56,460
$121,000
$0
$177,460

$59,527
$86,000
$0
$145,527

Long-term Liabilities
Total Liabilities

$400,000
$752,984

$375,000
$667,427

$350,000
$552,410

$300,000
$477,460

$250,000
$395,527

Paid-in Capital
Retained Earnings
Earnings

$1,000,000
($684,600)
($22,644)

$1,000,000
($732,244)
$21,964

$1,097,000
($730,280)
$63,337

$1,097,000
($676,943)
$84,139

$1,097,000
($602,804)
$94,987

Total Capital
Total Liabilities and Capital

$292,756
$1,045,740

$289,720
$957,147

$430,057
$982,467

$504,196
$981,655

$589,182
$984,710

$292,756

$289,720

$430,057

$504,196

$589,182

Assets

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital

Net Worth

Page 22

Farmers Group
8.7 Business Ratios
The business ratios given below are contrasted to industry standards for SIC code 0161 which
covers vegetable and melon growers. Within this category, research has shown that there can
be significant deviations from industry standards due to farm size, product life cycle, and
capital resources.
Farmers Group is a start-up venture, and therefore has a more heavy debt to equity ratio than
most existing farms. Furthermore, due to its move into a niche market, the company is
expec ted to spend more on advertising than its competitors. The first two years of operations
are expec ted also to have a higher growth rate than average as it gains market share.

Page 23

Farmers Group
Table: Ratios
Ratio Analysis
Year 1
n.a.

Year 2
21.74%

Year 3
21.43%

Year 4
4.60%

0.00%
5.33%
23.91%
52.19%
47.81%
100.00%

0.00%
5.60%
26.12%
47.76%
52.24%
100.00%

0.00%
6.54%
25.45%
49.11%
50.89%
100.00%

0.00%
5.83%
25.47%
49.07%
50.93%
100.00%

0.00%
6.10%
27.42%
49.22%
50.78%
100.00%

12.90%
14.40%
28.90%
56.20%
43.80%
100.00%

33.75%
38.25%
72.00%
28.00%

30.55%
39.18%
69.73%
30.27%

20.60%
35.62%
56.23%
43.77%

18.08%
30.56%
48.64%
51.36%

14.78%
25.39%
40.17%
59.83%

31.10%
20.50%
51.60%
48.40%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

30.26%
37.26%
0.83%
5.57%

30.27%
29.04%
0.71%
10.76%

30.72%
24.76%
1.23%
14.01%

31.28%
23.31%
1.20%
15.44%

31.22%
22.31%
1.23%
15.80%

32.00%
20.70%
0.20%
1.70%

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

1.55
1.39
72.00%
-7.73%
-2.17%

1.56
1.38
69.73%
9.48%
2.87%

2.38
2.07
56.23%
18.60%
8.14%

2.71
2.39
48.64%
20.86%
10.71%

3.33
2.92
40.17%
20.36%
12.18%

1.65
0.88
51.60%
2.20%
4.50%

Additional Ratios
Net Profit Margin
Return on Equity

Year 1
-3.94%
-7.73%

Year 2
3.14%
7.58%

Year 3
7.45%
14.73%

Year 4
9.46%
16.69%

Year 5
10.24%
16.12%

n.a
n.a

0.00
60
3.93
55.25

0.00
0
8.74
12.17

0.00
0
9.83
12.17

0.00
0
9.90
12.17

0.00
0
10.70
12.17

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

Payment Days
Total Asset Turnover

29
0.55

17
0.73

27
0.87

30
0.91

29
0.94

n.a
n.a

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.

2.57
0.47

2.30
0.44

1.28
0.37

0.95
0.37

0.67
0.37

n.a
n.a

$192,756

$164,720

$280,057

$304,196

$339,182

n.a

0.59

1.57

3.05

4.28

5.53

n.a

1.82
34%
1.39
1.96

1.37
31%
1.38
2.42

1.16
21%
2.07
1.98

1.10
18%
2.39
1.76

1.06
15%
2.92
1.57

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

Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes

Year 5 Industry Profile

4.30%
-4.60%

Main Ratios

Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover

Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth

Page 24

Farmers Group
Dividend Payout

0.00

1.14

0.32

0.12

0.11

n.a

Page 25

Appendix
Table: Sales Forecast
Sales Forecast
Sales
Sales
Other
Total Sales
Direct Cost of Sales
Sales
Other
Subtotal Direct Cost of Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

0%

$0

$0

$10,000

$25,000

$40,000

$55,000

$100,000

$175,000

$120,000

$50,000

$0

$0

0%

$0
$0

$0
$0

$0
$10,000

$0
$25,000

$0
$40,000

$0
$55,000

$0
$100,000

$0
$175,000

$0
$120,000

$0
$50,000

$0
$0

$0
$0

Month 1
$0
$0
$0

Month 2
$0
$0
$0

Month 3
$6,800
$0
$6,800

Month 4
$17,000
$0
$17,000

Month 5
$27,200
$0
$27,200

Month 6
$37,400
$0
$37,400

Month 7
$68,000
$0
$68,000

Month 8
$119,000
$0
$119,000

Month 9
$81,600
$0
$81,600

Month 10
$34,000
$0
$34,000

Month 11
$0
$0
$0

Month 12
$0
$0
$0

Page 1

Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Month 1
1
7.00%

Month 2
2
7.00%

Month 3
3
7.00%

Month 4
4
7.00%

Month 5
5
7.00%

Month 6
6
7.00%

Month 7
7
7.00%

Month 8
8
7.00%

Month 9
9
7.00%

Month 10
10
7.00%

Month 11
11
7.00%

Month 12
12
7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

30.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

20.00%
0

Page 2

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash from Operations

Cash Sales
Cash from Receivables

$0
$0

$0
$0

$2,500
$0

$6,250
$250

$10,000
$7,875

$13,750
$19,125

$25,000
$30,375

$43,750
$42,375

$30,000
$76,875

$12,500
$129,875

$0
$88,250

$0
$36,250

Subtotal Cash from Operations

$0

$0

$2,500

$6,500

$17,875

$32,875

$55,375

$86,125

$106,875

$142,375

$88,250

$36,250

Cash Received

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Current Borrowing

New Other Liabilities (interest-free)

$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 Long-term Liabilities

Sales of Other Current Assets

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$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

Subtotal Cash Received

$0
$0

$0
$0

$0
$2,500

$0
$6,500

$0
$17,875

$0
$32,875

$0
$55,375

$0
$86,125

$0
$106,875

$0
$142,375

$0
$88,250

$0
$36,250

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Spending
Bill Payments

$11,500
$30,250

$11,500
$7,507

$11,000
$7,509

$7,500
$7,573

$7,000
$7,571

$9,500
$7,508

$9,000
$10,129

$9,500
$91,730

$10,000
$178,012

$10,500
$46,511

$10,000
$7,394

$10,500
$7,225

Subtotal Spent on Operations

$41,750

$19,007

$18,509

$15,073

$14,571

$17,008

$19,129

$101,230

$188,012

$57,011

$17,394

$17,725

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

Other Liabilities Principal Repayment

$0
$0

$0
$0

$0
$0

$0
$0

$5,000
$0

$15,000
$0

$4,000
$0

$0
$0

$0
$0

$0
$0

$30,000
$0

$0
$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

Dividends

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$41,750

$19,007

$18,509

$15,073

$19,571

$32,008

$23,129

$101,230

$188,012

$57,011

$47,394

$17,725

Net Cash Flow

($41,750)

($19,007)

($16,009)

($8,573)

($1,696)

$867

$32,246

($15,105)

($81,137)

$85,364

$40,856

$18,525

Cash Balance

$203,650

$184,643

$168,634

$160,061

$158,365

$159,232

$191,478

$176,373

$95,236

$180,599

$221,455

$239,980

Expenditures

0.00%

Expenditures from Operations

Subtotal Cash Spent

Page 3

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Accounts Receivable

$245,400
$0

$203,650
$0

$184,643
$0

$168,634
$7,500

$160,061
$26,000

$158,365
$48,125

$159,232
$70,250

$191,478
$114,875

$176,373
$203,750

$95,236
$216,875

$180,599
$124,500

$221,455
$36,250

$239,980
$0

Inventory
Other Current Assets
Total Current Assets

$150,000
$250,000
$645,400

$150,000
$250,000
$603,650

$150,000
$250,000
$584,643

$143,200
$250,000
$569,334

$126,200
$250,000
$562,261

$99,000
$250,000
$555,490

$61,600
$250,000
$541,082

$74,800
$250,000
$631,153

$130,900
$250,000
$761,023

$89,760
$250,000
$651,871

$55,760
$250,000
$610,859

$55,760
$250,000
$563,465

$55,760
$250,000
$545,740

Long-term Assets
Long-term Assets

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

$500,000

Accumulated Depreciation
Total Long-term Assets

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$0
$500,000

$1,145,400

$1,103,650

$1,084,643

$1,069,334

$1,062,261

$1,055,490

$1,041,082

$1,131,153

$1,261,023

$1,151,871

$1,110,859

$1,063,465

$1,045,740

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing

$30,000
$400,000

$7,256
$400,000

$7,256
$400,000

$7,321
$400,000

$7,321
$400,000

$7,260
$395,000

$7,176
$380,000

$85,647
$376,000

$176,417
$376,000

$46,265
$376,000

$7,153
$376,000

$6,984
$346,000

$6,984
$346,000

Other Current Liabilities

Subtotal Current Liabilities

$0
$430,000

$0
$407,256

$0
$407,256

$0
$407,321

$0
$407,321

$0
$402,260

$0
$387,176

$0
$461,647

$0
$552,417

$0
$422,265

$0
$383,153

$0
$352,984

$0
$352,984

Long-term Liabilities

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

$400,000

Total Liabilities

$830,000

$807,256

$807,256

$807,321

$807,321

$802,260

$787,176

$861,647

$952,417

$822,265

$783,153

$752,984

$752,984

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)

$1,000,000
($684,600)
($22,644)

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

$0

($19,007)

($38,013)

($53,387)

($60,460)

($62,171)

($61,494)

($45,894)

($6,794)

$14,206

$12,306

($4,919)

$315,400

$296,393

$277,387

$262,013

$254,940

$253,229

$253,906

$269,506

$308,606

$329,606

$327,706

$310,481

$292,756

$1,145,400

$1,103,650

$1,084,643

$1,069,334

$1,062,261

$1,055,490

$1,041,082

$1,131,153

$1,261,023

$1,151,871

$1,110,859

$1,063,465

$1,045,740

$315,400

$296,393

$277,387

$262,013

$254,940

$253,229

$253,906

$269,506

$308,606

$329,606

$327,706

$310,481

$292,756

Page 4

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales

Month 1
$0
$0

Month 2
$0
$0

Month 3
$10,000
$6,800

Month 4
$25,000
$17,000

Month 5
$40,000
$27,200

Month 6
$55,000
$37,400

Month 7
$100,000
$68,000

Month 8
$175,000
$119,000

Month 9
$120,000
$81,600

Month 10
$50,000
$34,000

Month 11
$0
$0

Month 12
$0
$0

Other
Total Cost of Sales

$800
$800

$800
$800

$867
$7,667

$867
$17,867

$833
$28,033

$833
$38,233

$833
$68,833

$833
$119,833

$833
$82,433

$833
$34,833

$833
$833

$833
$833

($800)
0.00%

($800)
0.00%

$2,333
23.33%

$7,133
28.53%

$11,967
29.92%

$16,767
30.48%

$31,167
31.17%

$55,167
31.52%

$37,567
31.31%

$15,167
30.33%

($833)
0.00%

($833)
0.00%

Gross Margin
Gross Margin %

Expenses
Payroll

$11,500

$11,500

$11,000

$7,500

$7,000

$9,500

$9,000

$9,500

$10,000

$10,500

$10,000

$10,500

Sales and Marketing and Other

Expenses
Depreciation

$950

$950

$950

$950

$950

$950

$950

$950

$950

$950

$950

$950

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Gas and Oil

$170

$170

$170

$170

$170

$170

$170

$170

$170

$170

$170

$170

Utilities
Insurance
Payroll Taxes

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$500
$420
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$13,540

$13,540

$13,040

$9,540

$9,040

$11,540

$11,040

$11,540

$12,040

$12,540

$12,040

$12,540

($14,340)
($14,340)

($14,340)
($14,340)

($10,707)
($10,707)

($2,407)
($2,407)

$2,927
$2,927

$5,227
$5,227

$20,127
$20,127

$43,627
$43,627

$25,527
$25,527

$2,627
$2,627

($12,873)
($12,873)

($13,373)
($13,373)

$4,667

$4,667

$4,667

$4,667

$4,638

$4,550

$4,527

$4,527

$4,527

$4,527

$4,352

$4,352

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($19,007)

($19,007)

($15,373)

($7,073)

($1,711)

$677

$15,600

$39,100

$21,000

($1,900)

($17,225)

($17,725)

0.00%

0.00%

-153.73%

-28.29%

-4.28%

1.23%

15.60%

22.34%

17.50%

-3.80%

0.00%

0.00%

Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

15%

Page 5

Appendix
Table: Personnel
Personnel Plan
Business Manager
Executive Director

0%
0%

Month 1
$1,500
$1,500

Month 2
$1,500
$1,500

Month 3
$1,500
$1,500

Month 4
$1,500
$1,500

Month 5
$1,500
$1,500

Month 6
$2,500
$2,500

Month 7
$2,500
$2,500

Month 8
$2,500
$2,500

Month 9
$2,500
$2,500

Month 10
$2,500
$2,500

Month 11
$2,500
$2,500

Month 12
$2,500
$2,500

Manager Trainee

0%

$0

$0

$0

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

Manager Trainee
Logistic engineer

0%
0%

$0
$1,500

$0
$1,500

$0
$1,500

$0
$1,500

$0
$1,500

$0
$1,500

$0
$1,500

$0
$1,500

$1,000
$1,500

$1,000
$1,500

$1,000
$1,500

$1,000
$1,500

Heavy equipment
Welder
Contract workers

0%
0%
0%

$1,500
$500
$5,000

$1,500
$500
$5,000

$1,500
$0
$5,000

$1,500
$500
$0

$1,500
$0
$0

$1,500
$500
$0

$1,500
$0
$0

$1,500
$500
$0

$1,500
$0
$0

$1,500
$500
$0

$1,500
$0
$0

$1,500
$500
$0

Total People

12

12

12

Total Payroll

$11,500

$11,500

$11,000

$7,500

$7,000

$9,500

$9,000

$9,500

$10,000

$10,500

$10,000

$10,500

Page 6