Fish Breeder Business Plan

The Company

Candlelight Cichlid Breeders (CCB) will provide rare tropical fish to aquarists without local access. CCB will ship live fish to customers anywhere in the continental United States within one to two days. CCB will also supply fish to local tropical fish retailers, offering convenience and variety not found elsewhere.

CCB’s assets will include livestock watering troughs and aquariums, housed in an insulated steel building.

CCB will operate as a sole proprietorship, owned by founder Shawn Halsey. Initially, Mr. Halsey will manage all aspects of the business alone and later hire a general assistant as sales increase.

The Product

Candlelight Cichlid Breeders will specialize in rare tropical fish from the Cichlidae family, known for their colorful appearance and aggressive behavior. CCB will breed up to 30 cichlid species and import non-breeding fish.

As CCB expands, we plan to offer live plants, more unusual cichlid varieties, newly discovered South American catfish species, and potentially some common cichlid species. Our sales will be limited to the U.S.

The Market

Research shows that fish keeping is the second most popular hobby in the U.S., after photography. We estimate there will be approximately seven million U.S. aquarium owners who are internet users by the end of this year. Of these users, we estimate that 5% (350,000) will visit our site and 2.5% (8,750) will make a purchase.

CCB recognizes the opportunity to serve customers who lack access to retail fish shops with a diverse selection of cichlid species. Additionally, current online fish sellers lack comprehensive care information for the fish they sell. CCB will provide both species information and the ability to order researched fish on our site. We will target a niche market with established customer loyalty, aiming to create a one-stop experience that fosters customer loyalty.

The company will focus on two market segments: direct online sales to tropical fish collectors and local fish retailers. Our largest market segment will be U.S.-based internet users who own an aquarium.

Financial Projections

Our start-up costs include expenses for the building and equipment, which will be financed through an investor, a bank loan, and a small owner investment in initial inventory and equipment.

We anticipate reaching our sales goal by early 2005, when our breeding stock is fully mature. The industry’s high margins and inventory turnover lead us to expect a high level of profitability.

Fish Breeder Business Plan Example

1.1 Objectives

The CCB’s objectives are:

  1. Find a fast, reliable shipping service.
  2. Sales of $10,000 per month.
  3. Maintain an inventory turnover ratio of six.

1.2 Mission

Candlelight Cichlid Breeders (CCB) will provide hard to find tropical fish from the scientific family Cichlidae to aquarists without access to these fish through local pet stores. Up to 30 separate cichlid species will be bred by CCB, in addition to importing fish that do not readily breed in captivity. CCB will ship live fish to customers anywhere in the continental United States within one to two days. CCB will also provide fish to tropical fish retailers within 100 miles of the breeding center. CCB will provide convenience and variety not found in the traditional tropical fish selling industry.

1.3 Keys to Success

  1. Efficiently breed multiple species of tropical fish.
  2. Quickly and reliably deliver fish to customers.
  3. Develop a strong reputation within the fish keeping community.
  4. Ensure that all major search engines link to our site.

Company Summary

Candlelight Cichlid Breeders will be a privately-owned tropical fish breeding business. We will offer rare cichlid species to customers nationwide. Our customers do not have access to the species we offer through their local fish shops.

Candlelight Cichlid Breeders will consist of eighty 150-gallon livestock watering troughs and forty 40-gallon aquariums, totaling 13,600 gallons of water. The tanks and troughs will be enclosed by an insulated steel building built on a concrete slab. Breeding stock will be housed in the 150-gallon troughs, fertilized eggs will be moved to the 40-gallon aquariums before hatching in most cases. The business location is undetermined.

2.1 Start-up Summary

Our start-up costs include expenses for the building purchase and equipment. The costs will be financed by an angel investor, a bank loan, and a small owner investment of initial inventory and equipment. The assumptions are shown in the following table.

Fish Breeder Business Plan Example

Start-up

Requirements

Start-up Expenses

Legal – $500

Stationery etc. – $50

Insurance – $500

Expensed equipment – $25,000

Other – $0

Total Start-up Expenses – $26,050

Start-up Assets

Cash Required – $40,000

Start-up Inventory – $900

Other Current Assets – $0

Long-term Assets – $35,000

Total Assets – $75,900

Total Requirements – $101,950

Start-up Funding

Start-up Expenses to Fund – $26,050

Start-up Assets to Fund – $75,900

Total Funding Required – $101,950

Assets

Non-cash Assets from Start-up – $35,900

Cash Requirements from Start-up – $40,000

Additional Cash Raised – $0

Cash Balance on Starting Date – $40,000

Total Assets – $75,900

Liabilities and Capital

Liabilities

Current Borrowing – $0

Long-term Liabilities – $42,360

Accounts Payable (Outstanding Bills) – $0

Other Current Liabilities (interest-free) – $0

Total Liabilities – $42,360

Capital

Planned Investment

Owner – $9,590

Angel Investor – $50,000

Additional Investment Requirement – $0

Total Planned Investment – $59,590

Loss at Start-up (Start-up Expenses) – ($26,050)

Total Capital – $33,540

Total Capital and Liabilities – $75,900

Total Funding – $101,950

2.2 Company Ownership

CCB will be a sole proprietorship, owned by Shawn Halsey.

Products

Candlelight Cichlid Breeders will provide rare tropical fish from the family cichlidae. These fish are known for their colorful appearance and interesting and aggressive behavior. The fish will be sold as juveniles, ranging in length from one to four inches. As adults, some of these species can grow to almost two feet in length, with the average adult being around eight to ten inches long. Shipping adult-sized cichlids is impractical due to their size.

3.1 Competitive Comparison

Other online businesses offer tropical fish and some common cichlids. The important difference between those businesses and CCB is that we will have the less common cichlids that the other sites do not offer.

The current online fish sellers do not provide background and care requirements information for the fish they sell. If a customer is looking to purchase a particular fish online, they may have to visit one site to read up on the care and behavior of the fish and then go to a different site to make the purchase. CCB will offer both information on the species we carry and the ability to order the researched fish without navigating to another website.

3.2 Future Products

As CCB grows, we may offer live plants, more types of unusual cichlids, newly discovered species of South American catfish, and possibly some of the more common cichlid species.

Market Analysis Summary

CCB’s largest market segment will be Internet users in the continental U.S. who own an aquarium. Other potential customers include tropical fish retailers and walk-in customers. Fish keeping is the second most popular hobby in the U.S., behind photography.

We estimate that by the year 2003, there will be approximately seven million Internet users in the continental U.S. who own an aquarium. This is a conservative estimate. We estimate that 5% (350,000) of these users will visit our site within one year, and that 2.5% (8,750) of those potential customers will make a purchase.

4.1 Market Segmentation

Internet customers: The majority of our customers will be Internet users. Research estimates that this segment consists of seven million Internet users.

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4.2 Market Needs

Tropical fish enthusiasts are on the Internet looking for information on particular species and places to obtain them. Most people do not have access to retail fish shops that regularly carry a large variety of different cichlid species. Some of the most beautiful and interesting cichlids cannot be found in these shops at all. CCB will provide these hard-to-find species to hobbyists.

4.3 Competition and Buying Patterns

Competition in the online fish-selling industry is based on customer satisfaction. If the ordered fish arrives as advertised and in good health, the customer is satisfied. If a business can consistently provide customer satisfaction through quality product and quick service, the consumer will become loyal and regard product price as secondary in importance.

Strategy and Implementation Summary

CCB will market to tropical fish hobbyists looking for hard-to-find cichlid species. We will primarily sell our products over the Internet to customers within the continental U.S. These customers are looking for interesting and colorful examples of cichlid species that are not available in their local fish shop.

Our strategy is to offer one-stop shopping for rare and unusual cichlids through the Internet. Customers will be able to browse through pages of information on a particular cichlid species and then purchase the fish.

5.1 Competitive Edge

Our competitive edge will be our site design, on-site product supply, and wide variety within the cichlid family.

5.2 Sales Forecast

Our sales forecast assumes no change in costs or prices, which is a reasonable assumption for the last few years.

We expect a jump in sales in 2005 due to increased maturity of our breeding stock. We expect our sales to moderately increase in 2006.

Our sales will level off in the latter part of the first year, reaching maximum breeding capacity. Capacity will increase with time.

We expect the product line to change according to our customers’ needs and desires.

Fish Breeder Business Plan Example

Fish Breeder Business Plan Example

Reviewing the provided text and eliminating redundant words or phrases to enhance clarity and impact:

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Internet Sales 14,700 35,000 40,250
Retailers 3,900 4,800 6,000
Other 0 0 0
Total Unit Sales 18,600 39,800 46,250
Unit Prices Year 1 Year 2 Year 3
Internet Sales $6.00 $6.00 $6.00
Retailers $1.90 $2.00 $2.00
Other $0.00 $0.00 $0.00
Sales
Internet Sales $88,200 $210,000 $241,500
Retailers $7,400 $9,600 $12,000
Other $0 $0 $0
Total Sales $95,600 $219,600 $253,500
Direct Unit Costs Year 1 Year 2 Year 3
Internet Sales $0.50 $0.50 $0.50
Retailers $0.50 $0.50 $0.50
Other $0.00 $0.00 $0.00
Direct Cost of Sales
Internet Sales $7,350 $17,500 $20,125
Retailers $1,950 $2,400 $3,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $9,300 $19,900 $23,125

Management Summary

CCB will be a small business owned by Shawn Halsey. He will be involved in all aspects of the business until it grows beyond his capacity to manage. Our one employee will have important responsibilities and will be appropriately compensated. The business culture will promote creativity and collaboration.

Personnel Plan
Year 1 Year 2 Year 3
Production Personnel
General assistant $18,000 $18,000 $24,000
Second general assistant $0 $0 $18,000
Other $0 $0 $0
Subtotal $18,000 $18,000 $42,000
Sales and Marketing Personnel
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $0 $0 $0
General and Administrative Personnel
Owner $36,000 $48,000 $60,000
Other $0 $0 $0
Subtotal $36,000 $48,000 $60,000
Other Personnel
Name or title $0 $0 $0
Name or title $0 $0 $0
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $0 $0 $0
Total People 2 2 3
Total Payroll $54,000 $66,000 $102,000

Financial Plan

The following topics outline the financial plan for Candlelight Cichlid Breeders.

7.1 Assumptions

The table below shows the general assumptions.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

7.2 Key Financial Indicators

The chart below illustrates the key financial indicators.

Fish Breeder Business Plan Example

Our break-even analysis calculates the costs necessary to maintain the business. Payroll, mortgage payments, utilities, marketing, Internet costs, accounting expenses, and expenses for aquarium water conditioning are included in the analysis. We have estimated the total monthly fixed costs as shown below.

Fish Breeder Business Plan Example

Break-even Analysis

Monthly Units Break-even: 1,110

Monthly Revenue Break-even: $5,705

Assumptions:

– Average Per-Unit Revenue: $5.14

– Average Per-Unit Variable Cost: $0.50

– Estimated Monthly Fixed Cost: $5,150

7.4 Projected Profit and Loss

We expect high profitability from this venture due to industry margins and inventory turnover. Profit in the first year (2004) will be lower than projected potential due to the immaturity of two-thirds of the breeding stock and low name recognition. By September 2005, all breeding stock will have matured and 100% of projected profit potential will be realized.

Fish Breeder Business Plan Example

Fish Breeder Business Plan Example

Fish Breeder Business Plan Example

Fish Breeder Business Plan Example

Pro Forma Profit and Loss:

Sales:

– Year 1: $95,600

– Year 2: $219,600

– Year 3: $253,500

Direct Cost of Sales:

– Year 1: $9,300

– Year 2: $19,900

– Year 3: $23,125

Production Payroll:

– Year 1: $18,000

– Year 2: $18,000

– Year 3: $42,000

Other: $0

Total Cost of Sales:

– Year 1: $27,300

– Year 2: $37,900

– Year 3: $65,125

Gross Margin:

– Year 1: $68,300

– Year 2: $181,700

– Year 3: $188,375

Gross Margin %:

– Year 1: 71.44%

– Year 2: 82.74%

– Year 3: 74.31%

Operating Expenses:

Sales and Marketing Expenses:

Sales and Marketing Payroll:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Advertising/Promotion:

– Year 1: $1,440

– Year 2: $2,880

– Year 3: $4,320

Travel:

– Year 1: $1,200

– Year 2: $1,800

– Year 3: $2,400

Miscellaneous:

– Year 1: $1,800

– Year 2: $1,800

– Year 3: $1,800

Total Sales and Marketing Expenses:

– Year 1: $4,440

– Year 2: $6,480

– Year 3: $8,520

Sales and Marketing %:

– Year 1: 4.64%

– Year 2: 2.95%

– Year 3: 3.36%

General and Administrative Expenses:

General and Administrative Payroll:

– Year 1: $36,000

– Year 2: $48,000

– Year 3: $60,000

Sales and Marketing and Other Expenses:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Depreciation:

– Year 1: $12,000

– Year 2: $12,000

– Year 3: $12,000

Leased Equipment:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Utilities:

– Year 1: $1,260

– Year 2: $1,300

– Year 3: $1,400

Rent:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Payroll Taxes:

– Year 1: $8,100

– Year 2: $9,900

– Year 3: $15,300

Other General and Administrative Expenses:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Total General and Administrative Expenses:

– Year 1: $57,360

– Year 2: $71,200

– Year 3: $88,700

General and Administrative %:

– Year 1: 60.00%

– Year 2: 32.42%

– Year 3: 34.99%

Other Expenses:

– Year 1: $0

– Year 2: $0

– Year 3: $0

Other %:

– Year 1: 0.00%

– Year 2: 0.00%

– Year 3: 0.00%

Total Operating Expenses:

– Year 1: $61,800

– Year 2: $77,680

– Year 3: $97,220

Profit Before Interest and Taxes:

– Year 1: $6,500

– Year 2: $104,020

– Year 3: $91,155

EBITDA:

– Year 1: $18,500

– Year 2: $116,020

– Year 3: $103,155

Interest Expense:

– Year 1: $3,873

– Year 2: $3,230

– Year 3: $2,559

Taxes Incurred:

– Year 1: $412

– Year 2: $25,198

– Year 3: $22,518

Net Profit:

– Year 1: $2,215

– Year 2: $75,593

– Year 3: $66,078

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Net Profit/Sales:

– Year 1: 2.32%

– Year 2: 34.42%

– Year 3: 26.07%

7.5 Projected Cash Flow:

As our breeding stock matures and our reputation grows, our business will experience increased cash flows. We may expand at this time with the construction of another building adjacent to the original structure.

Fish Breeder Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $57,360 $131,760 $152,100
Cash from Receivables $29,351 $76,310 $98,248
Subtotal Cash from Operations $86,711 $208,070 $250,348
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $86,711 $208,070 $250,348
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $54,000 $66,000 $102,000
Bill Payments $24,437 $65,049 $73,300
Subtotal Spent on Operations $78,437 $131,049 $175,300
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 $6,708 $6,708 $6,708
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $85,145 $137,757 $182,008
Net Cash Flow $1,566 $70,313 $68,340
Cash Balance $41,566 $111,878 $180,218

Projected Balance Sheet

7.6 Projected Balance Sheet

The following table shows the projected balance sheet for Candlelight Cichlid Breeders.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $41,566 $111,878 $180,218
Accounts Receivable $8,889 $20,419 $23,572
Inventory $1,183 $2,530 $2,940
Other Current Assets $0 $0 $0
Total Current Assets $51,638 $134,828 $206,730
Long-term Assets
Long-term Assets $35,000 $35,000 $35,000
Accumulated Depreciation $12,000 $24,000 $36,000
Total Long-term Assets $23,000 $11,000 ($1,000)
Total Assets $74,638 $145,828 $205,730

Business Ratios

7.7 Business Ratios

The following table outlines some of the more important ratios from the Breeding of Pets industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the NAICS code, 112990.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 129.71% 15.44% 3.52%
Percent of Total Assets
Accounts Receivable 11.91% 14.00% 11.46% 8.54%
Inventory 1.58% 1.74% 1.43% 11.36%
Other Current Assets 0.00% 0.00% 0.00% 30.17%
Total Current Assets 69.18% 92.46% 100.49% 50.07%
Long-term Assets 30.82% 7.54% -0.49% 49.93%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 3,230 5,536 6,068 24.29%
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,230 $5,536 $6,068
Long-term Liabilities $35,652 $28,944 $22,236
Total Liabilities $38,882 $34,480 $28,304
Paid-in Capital $59,590 $59,590 $59,590
Retained Earnings ($26,050) ($23,835) $51,758
Earnings $2,215 $75,593 $66,078
Total Capital $35,755 $111,348 $177,426
Total Liabilities and Capital $74,638 $145,828 $205,730
Net Worth $35,755 $111,348 $177,426

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Internet Sales 0% 400 500 650 800 1,000 1,200 1,500 1,650 1,750 1,750 1,750 1,750
Retailers 0% 200 200 200 300 300 300 400 400 400 400 400 400
Other 0% 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 600 700 850 1,100 1,300 1,500 1,900 2,050 2,150 2,150 2,150 2,150
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Internet Sales $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00
Retailers $0.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales
Internet Sales $2,400 $3,000 $3,900 $4,800 $6,000 $7,200 $9,000 $9,900 $10,500 $10,500 $10,500 $10,500
Retailers $0 $400 $400 $600 $600 $600 $800 $800 $800 $800 $800 $800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $2,400 $3,400 $4,300 $5,400 $6,600 $7,800 $9,800 $10,700 $11,300 $11,300 $11,300 $11,300
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Internet Sales 0.00% $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
Retailers 0.00% $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
Other 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Sales:

Month 1: $2,400

Month 2: $3,400

Month 3: $4,300

Month 4: $5,400

Month 5: $6,600

Month 6: $7,800

Month 7: $9,800

Month 8: $10,700

Month 9: $11,300

Month 10: $11,300

Month 11: $11,300

Month 12: $11,300

Direct Cost of Sales:

Month 1: $300

Month 2: $350

Month 3: $425

Month 4: $550

Month 5: $650

Month 6: $750

Month 7: $950

Month 8: $1,025

Month 9: $1,075

Month 10: $1,075

Month 11: $1,075

Month 12: $1,075

Production Payroll:

Month 1: $1,500

Month 2: $1,500

Month 3: $1,500

Month 4: $1,500

Month 5: $1,500

Month 6: $1,500

Month 7: $1,500

Month 8: $1,500

Month 9: $1,500

Month 10: $1,500

Month 11: $1,500

Month 12: $1,500

Other:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Total Cost of Sales:

Month 1: $1,800

Month 2: $1,850

Month 3: $1,925

Month 4: $2,050

Month 5: $2,150

Month 6: $2,250

Month 7: $2,450

Month 8: $2,525

Month 9: $2,575

Month 10: $2,575

Month 11: $2,575

Month 12: $2,575

Gross Margin:

Month 1: $600

Month 2: $1,550

Month 3: $2,375

Month 4: $3,350

Month 5: $4,450

Month 6: $5,550

Month 7: $7,350

Month 8: $8,175

Month 9: $8,725

Month 10: $8,725

Month 11: $8,725

Month 12: $8,725

Gross Margin %:

Month 1: 25.00%

Month 2: 45.59%

Month 3: 55.23%

Month 4: 62.04%

Month 5: 67.42%

Month 6: 71.15%

Month 7: 75.00%

Month 8: 76.40%

Month 9: 77.21%

Month 10: 77.21%

Month 11: 77.21%

Month 12: 77.21%

Operating Expenses:

Sales and Marketing Expenses:

Sales and Marketing Payroll:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Advertising/Promotion:

Month 1: $120

Month 2: $120

Month 3: $120

Month 4: $120

Month 5: $120

Month 6: $120

Month 7: $120

Month 8: $120

Month 9: $120

Month 10: $120

Month 11: $120

Month 12: $120

Travel:

Month 1: $100

Month 2: $100

Month 3: $100

Month 4: $100

Month 5: $100

Month 6: $100

Month 7: $100

Month 8: $100

Month 9: $100

Month 10: $100

Month 11: $100

Month 12: $100

Miscellaneous:

Month 1: $150

Month 2: $150

Month 3: $150

Month 4: $150

Month 5: $150

Month 6: $150

Month 7: $150

Month 8: $150

Month 9: $150

Month 10: $150

Month 11: $150

Month 12: $150

Total Sales and Marketing Expenses:

Month 1: $370

Month 2: $370

Month 3: $370

Month 4: $370

Month 5: $370

Month 6: $370

Month 7: $370

Month 8: $370

Month 9: $370

Month 10: $370

Month 11: $370

Month 12: $370

Sales and Marketing %:

Month 1: 15.42%

Month 2: 10.88%

Month 3: 8.60%

Month 4: 6.85%

Month 5: 5.61%

Month 6: 4.74%

Month 7: 3.78%

Month 8: 3.46%

Month 9: 3.27%

Month 10: 3.27%

Month 11: 3.27%

Month 12: 3.27%

General and Administrative Expenses:

General and Administrative Payroll:

Month 1: $3,000

Month 2: $3,000

Month 3: $3,000

Month 4: $3,000

Month 5: $3,000

Month 6: $3,000

Month 7: $3,000

Month 8: $3,000

Month 9: $3,000

Month 10: $3,000

Month 11: $3,000

Month 12: $3,000

Sales and Marketing and Other Expenses:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Depreciation:

Month 1: $1,000

Month 2: $1,000

Month 3: $1,000

Month 4: $1,000

Month 5: $1,000

Month 6: $1,000

Month 7: $1,000

Month 8: $1,000

Month 9: $1,000

Month 10: $1,000

Month 11: $1,000

Month 12: $1,000

Leased Equipment:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Utilities:

Month 1: $105

Month 2: $105

Month 3: $105

Month 4: $105

Month 5: $105

Month 6: $105

Month 7: $105

Month 8: $105

Month 9: $105

Month 10: $105

Month 11: $105

Month 12: $105

Rent:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Payroll Taxes:

Month 1: 15%

Month 2: $675

Month 3: $675

Month 4: $675

Month 5: $675

Month 6: $675

Month 7: $675

Month 8: $675

Month 9: $675

Month 10: $675

Month 11: $675

Month 12: $675

Other General and Administrative Expenses:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Total General and Administrative Expenses:

Month 1: $4,780

Month 2: $4,780

Month 3: $4,780

Month 4: $4,780

Month 5: $4,780

Month 6: $4,780

Month 7: $4,780

Month 8: $4,780

Month 9: $4,780

Month 10: $4,780

Month 11: $4,780

Month 12: $4,780

General and Administrative %:

Month 1: 199.17%

Month 2: 140.59%

Month 3: 111.16%

Month 4: 88.52%

Month 5: 72.42%

Month 6: 61.28%

Month 7: 48.78%

Month 8: 44.67%

Month 9: 42.30%

Month 10: 42.30%

Month 11: 42.30%

Month 12: 42.30%

Other Expenses:

Other Payroll:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Consultants:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Contract/Consultants:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Total Other Expenses:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Other %:

Month 1: 0.00%

Month 2: 0.00%

Month 3: 0.00%

Month 4: 0.00%

Month 5: 0.00%

Month 6: 0.00%

Month 7: 0.00%

Month 8: 0.00%

Month 9: 0.00%

Month 10: 0.00%

Month 11: 0.00%

Month 12: 0.00%

Total Operating Expenses:

Month 1: $5,150

Month 2: $5,150

Month 3: $5,150

Month 4: $5,150

Month 5: $5,150

Month 6: $5,150

Month 7: $5,150

Month 8: $5,150

Month 9: $5,150

Month 10: $5,150

Month 11: $5,150

Month 12: $5,150

Profit Before Interest and Taxes:

Month 1: ($4,550)

Month 2: ($3,600)

Month 3: ($2,775)

Month 4: ($1,800)

Month 5: ($700)

Month 6: $400

Month 7: $2,200

Month 8: $3,025

Month 9: $3,575

Month 10: $3,575

Month 11: $3,575

Month 12: $3,575

EBITDA:

Month 1: ($3,550)

Month 2: ($2,600)

Month 3: ($1,775)

Month 4: ($800)

Month 5: $300

Month 6: $1,400

Month 7: $3,200

Month 8: $4,025

Month 9: $4,575

Month 10: $4,575

Month 11: $4,575

Month 12: $4,575

Interest Expense:

Month 1: $348

Month 2: $344

Month 3: $339

Month 4: $334

Month 5: $330

Month 6: $325

Month 7: $320

Month 8: $316

Month 9: $311

Month 10: $306

Month 11: $302

Month 12: $297

Taxes Incurred:

Month 1: ($1,470)

Month 2: ($986)

Month 3: ($779)

Month 4: ($534)

Month 5: ($257)

Month 6: $19

Month 7: $470

Month 8: $677

Month 9: $816

Month 10: $817

Month 11: $818

Month 12: $819

Net Profit:

Month 1: ($3,429)

Month 2: ($2,958)

Month 3: ($2,336)

Month 4: ($1,601)

Month 5: ($772)

Month 6: $56

Month 7: $1,410

Month 8: $2,032

Month 9: $2,448

Month 10: $2,451

Month 11: $2,455

Month 12: $2,458

Net Profit/Sales:

Month 1: -142.87%

Month 2: -86.99%

Month 3: -54.31%

Month 4: -29.64%

Month 5: -11.70%

Month 6: 0.72%

Month 7: 14.38%

Month 8: 18.99%

Month 9: 21.66%

Month 10: 21.69%

Month 11: 21.73%

Month 12: 21.76%

Pro Forma Cash Flow

Cash Received

Cash from Operations

– Cash Sales: $1,440, $2,040, $2,580, $3,240, $3,960, $4,680, $5,880, $6,420, $6,780, $6,780, $6,780, $6,780

– Cash from Receivables: $0, $32, $973, $1,372, $1,735, $2,176, $2,656, $3,147, $3,932, $4,288, $4,520, $4,520

Subtotal Cash from Operations: $1,440, $2,072, $3,553, $4,612, $5,695, $6,856, $8,536, $9,567, $10,712, $11,068, $11,300, $11,300

Additional Cash Received

– Sales Tax, VAT, HST/GST Received: $0

– New Current Borrowing: $0

– New Other Liabilities (interest-free): $0

– New Long-term Liabilities: $0

– Sales of Other Current Assets: $0

– Sales of Long-term Assets: $0

– New Investment Received: $0

Subtotal Cash Received: $1,440, $2,072, $3,553, $4,612, $5,695, $6,856, $8,536, $9,567, $10,712, $11,068, $11,300, $11,300

Expenditures

Expenditures from Operations

Cash Spending: $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500, $4,500

Bill Payments: $1, $78, $1,481, $752, $1,960, $2,198, $1,546, $3,067, $3,256, $3,405, $3,348, $3,345

Subtotal Spent on Operations: $4,501, $4,578, $5,981, $5,252, $6,460, $6,698, $6,046, $7,567, $7,756, $7,905, $7,848, $7,845

Additional Cash Spent

– Sales Tax, VAT, HST/GST Paid Out: $0

– Principal Repayment of Current Borrowing: $0

– Other Liabilities Principal Repayment: $0

– Long-term Liabilities Principal Repayment: $559, $559, $559, $559, $559, $559, $559, $559, $559, $559, $559, $559

– Purchase Other Current Assets: $0

– Purchase Long-term Assets: $0

– Dividends: $0

Subtotal Cash Spent: $5,060, $5,137, $6,540, $5,811, $7,019, $7,257, $6,605, $8,126, $8,315, $8,464, $8,407, $8,404

Net Cash Flow: ($3,620), ($3,065), ($2,987), ($1,199), ($1,324), ($401), $1,931, $1,441, $2,397, $2,604, $2,893, $2,896

Cash Balance: $36,380, $33,315, $30,328, $29,129, $27,805, $27,404, $29,335, $30,776, $33,173, $35,777, $38,670, $41,566

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