Contents
Global Marketing Business Plan
West Pacific Marketing Consultants aims to provide marketing services to targeted business environments in Indonesia, Asia, and the west Pacific region. This plan seeks to increase company sales and profits from retainer consulting, project consulting, market research, industrial analysis, feasibility studies, and strategic analysis and reporting services, compared to the preceding year.
The highlights of this plan are the targeted gross margin and sales-revenue. The targeted gross margin and sales-revenue for each of the first five years are presented in the following chart and tables. These figures represent the key prospects for West Pacific Marketing Consultants. These targets are attainable through a proactive approach to client acquisition, teaming-up with technology providers, and partnering with reputable local and regional engineering suppliers and construction firms to reduce competition, improve pricing, and reduce risks.
This business plan has been created based on five years of market research. Data concludes the market size and growth, geographical segments, customer needs, perception, and buying behavior trends have been on the upswing, and are expected to continue for the next five years. West Pacific Marketing Consultants feels that it can fill the marketing niche, and will benefit from operations beginning in Year 1.
Note: All figures within this plan are in U.S. dollars, and reflect the currency exchange rate of $1 = Rp 7,200.
1.1 Objectives
West Pacific Marketing Consultants’ objectives are to make a profit in the business-to-business (B2B) and business-to-consumer (B2C) marketing services industry. This goal is to be reached by attaining the numbers presented in the Sales Forecast and Financial Plan topics.
1.2 Mission
West Pacific Marketing Consultants offers reliable, high-quality, and cost-effective consulting services for various purposes. Our services include business development, market development, market intelligence, industrial sector analysis, and channel development on a global scale, as well as sales assistance for global companies in the Indonesian market.
The situation in Indonesia is currently characterized by tough times, low investment appetites, cost-cutting, and budget reductions. Fully aware of this situation, West Pacific Marketing Consultants, after completing a five-year research study, has come to the conclusion that its potential clients would be interested in doing things in a smarter way, with good support of reliable and efficient market intelligence. West Pacific Marketing Consultants believes that it can provide both solutions and value to its clients. Its senior executive consultants have been working with reputable U.S.-based global companies for more than 14 years and have extensive knowledge of Indonesian, Asian, and Pacific business environments.
1.3 Keys to Success
West Pacific Marketing Consultants is focused on two keys to success, which are broadly characterized as Internal and External Factors, and are explained in more detail in the following two sections.
1.3.1 External (Business Environment) Factors
The Asia-Pacific Region is living in an interesting era: the process of change from the “old economy” to the “global new economy” brings tremendous development growth of e-commerce, mobility of capital, and liberalization to the region. Since the new global economy brings new economics, market structures, industry structures, and company structures, the profile of customers has also changed. Customers have evolved from “solution demander” to “value demander,” and from “clients” to “business partners.”
West Pacific Marketing Consultants proactively focuses on establishing relationships with multiple digital content companies, government institutions, regional government offices, NGOs, and individual customers as prospective business partners.
1.3.2 Internal Factors
The company feels that it controls its own success through some basic internal factors:
- Selling and Marketing Power. The company provides attractive services to maintain a certain percentage of B2B and B2C clients. Being a market intelligence services provider, business and market development consulting services provider, and business and sales representative, West Pacific Marketing Consultants demonstrates a successful approach in converting its reputation into an excellent brand to ensure the conversion of its clients’ knowledge into their intellectual property, thus creating value for its clients.
- Excellence in fulfilling the promise. Clients do not buy features, they buy benefits. To realize a benefit, a claim must be made and proof presented. This company has had success on claim after claim.
- Developing visibility to generate new business leads. Participation by the company in online business affiliations with reputable global players of e-business technology is a necessity. Two of these players are Palo Alto Software and B2BToday.com. Strategic relationships must also be made with companies, government institutions, regional government offices, NGOs, and individual customers.
- High-quality service and customer satisfaction. Everything the company sells is guaranteed; therefore, the services have to do what the customers want and do it well. Long-term customer satisfaction is critical to the survival of the company.
- Create multiple opportunities from a single line of expertise. West Pacific Marketing Consultants can leverage a single pool of expertise into multiple revenue generation opportunities: business development, market development, market intelligence, industrial sector analysis, and channel development on a global scale, as well as sales assistance for global companies in the Indonesian market.
- Key management team. The right management team is integral and must have a strong foundation in marketing, management, finance, and services development. The company is confident in its team.
Company Summary
The founders of West Pacific Marketing Consultants are former marketers of multinational engineering, procurement, and construction contracting services and experienced market researchers in global markets. They founded West Pacific Global Trading Portal (SiliconOctopus.com), the parent company of West Pacific Marketing Consultants, to formalize their integrated B2B, B2C, and consumer-to-consumer services.
The parent company was founded by Jaka J. Legawa and business partners from Chicago, Kansas City, and Singapore. This company was initially based in a home office and moved into its new office space in January of last year. The subsidiary company, West Pacific Marketing Consultants, was founded in April of the same year by these same investors.
2.1 Company Ownership
West Pacific Marketing Consultants is an Indonesian “Perseroan Terbatas” (PT) corporation based in Jakarta, specifically “PT. Portal Bisnis Pasifik Barat,” and is owned by its principal investors and operators. It was created in April of last year.
2.2 Company History
Between April and December of the previous year, West Pacific Marketing Consultants achieved excellent performance ratings. The sales revenue of $1.9 million, with a gross margin of $1.6 million, was 15% higher than the projected sales for that year.
From its recent growth until now, West Pacific Marketing Consultants has kept costs and cash flow under control.
Past Performance:
Sales:
– 1998: $0
– 1999: $0
– 2000: $1,895,000
Gross Margin:
– 1998: $0
– 1999: $0
– 2000: $1,516,000
Gross Margin %:
– 1998: 0.00%
– 1999: 0.00%
– 2000: 80.00%
Operating Expenses:
– 1998: $0
– 1999: $0
– 2000: $84,400
Collection Period (days):
– 1998: 0
– 1999: 0
– 2000: 0
Balance Sheet:
Current Assets:
– Cash:
– 1998: $0
– 1999: $0
– 2000: $656,086
– Accounts Receivable:
– 1998: $0
– 1999: $0
– 2000: $118,438
– Other Current Assets:
– 1998: $0
– 1999: $0
– 2000: $0
– Total Current Assets:
– 1998: $0
– 1999: $0
– 2000: $774,524
Long-term Assets:
– Long-term Assets:
– 1998: $0
– 1999: $0
– 2000: $126,588
– Accumulated Depreciation:
– 1998: $0
– 1999: $0
– 2000: $0
– Total Long-term Assets:
– 1998: $0
– 1999: $0
– 2000: $126,588
Total Assets:
– 1998: $0
– 1999: $0
– 2000: $901,112
Current Liabilities:
– Accounts Payable:
– 1998: $0
– 1999: $0
– 2000: $5,000
– Current Borrowing:
– 1998: $0
– 1999: $0
– 2000: $0
– Other Current Liabilities (interest free):
– 1998: $0
– 1999: $0
– 2000: $0
– Total Current Liabilities:
– 1998: $0
– 1999: $0
– 2000: $5,000
Long-term Liabilities:
– 1998: $0
– 1999: $0
– 2000: $0
Total Liabilities:
– 1998: $0
– 1999: $0
– 2000: $5,000
Paid-in Capital:
– 1998: $0
– 1999: $0
– 2000: $37,800
Retained Earnings:
– 1998: $0
– 1999: $0
– 2000: $12,762
Earnings:
– 1998: $0
– 1999: $0
– 2000: $845,550
Total Capital:
– 1998: $0
– 1999: $0
– 2000: $896,112
Total Capital and Liabilities:
– 1998: $0
– 1999: $0
– 2000: $901,112
Other Inputs:
– Payment Days:
– 1998: 0
– 1999: 0
– 2000: 30
– Sales on Credit:
– 1998: $0
– 1999: $0
– 2000: $0
– Receivables Turnover:
– 1998: 0.00
– 1999: 0.00
– 2000: 0.00
Company Locations and Facilities:
The office is located at Komplek Pertanian in Jakarta, strategically positioned in the heart of the Indonesian business area.
Services:
West Pacific Marketing Consultants is an e-business-based market development consulting firm that specializes in offering a comprehensive set of integrated professional services. These services include high-quality consulting for business development, market development, market intelligence, industrial sector analysis, channel development, and sales assistance for global companies in the Indonesian market.
Service Description:
West Pacific Marketing Consultants offers a variety of services that cater to different client preferences. These services include:
1. Retainer Consulting
2. Project Consulting
3. Market Research and Industry Sector Analysis
4. Feasibility Studies
5. Strategic Analysis and Reports
Competitive Comparison:
Rather than having competitors, West Pacific Marketing Consultants has prospective business partners as the company provides not only solutions but also value creations. Its services have been sought out by various companies, ranging from high-level management firms to international market research companies. By working with West Pacific Marketing Consultants, companies can benefit from:
– Improved communication
– Access to new markets
– Broader product offering
– Lower cost of doing business
– New ways of adding value
– Lower cost of sales
– Access to niche markets
– Better cost of identification
– New business models (outsourcing alliances)
– Shopping convenience
– Immediate delivery
– More frequent updates
– Access to more products and services
– Better pricing
Sales Literature:
The company began with a general corporate brochure that established its positioning. This brochure was developed and included as part of last year’s start-up expenses. Literature and mailings for the market forums will also play a significant role.
Fulfillment:
The key fulfillment and delivery will be provided by the business principals. The core value lies in the professional expertise of the team, which combines experience, hard work, discipline, improvements, and education. For market research, presentation, and report development, West Pacific Marketing Consultants may seek qualified professionals as freelance support.
Technology:
West Pacific Marketing Consultants utilizes the latest Windows and Macintosh capabilities, including:
1. Internet facilities for direct communication with clients via email.
2. Multimedia presentation facilities for computer-based, live, or video formats.
3. Desktop publishing facilities for delivering reports, marketing materials, and market research reports.
Market Analysis Summary:
West Pacific Marketing Consultants offers a unique range of services that appeals to a broad customer base, with a focus on large corporations to maximize profit potential. The following sections provide key information about the target markets.
Market Segmentation:
The potential customer groups for West Pacific Marketing Consultants, in order of importance, are:
1. Large Corporations
2. Medium Companies
4. Regional (Provincial) Government Offices
5. Academics
6. Individual Customers
Market Analysis:
Potential Customers 2001 2002 2003 2004 2005 CAGR
Large Corporations 11% 50,500,000 56,034,800 62,176,214 68,990,727 76,552,111 10.96%
Medium Companies 35% 37,000,000 49,950,000 67,432,500 91,033,875 122,895,731 35.00%
Small Businesses 5% 12,500,000 13,125,000 13,781,250 14,470,313 15,193,829 5.00%
Regional (Provincial) Governments 2% 1,500,000 1,530,000 1,560,600 1,591,812 1,623,648 2.00%
Academics 1% 2,250,000 2,272,500 2,295,225 2,318,177 2,341,359 1.00%
Individual Customers 332% 87,500 377,580 1,629,333 7,030,898 30,339,731 331.52%
Total 24.43% 103,837,500 123,289,880 148,875,122 185,435,802 248,946,409 24.43%
4.2 Target Market Segment Strategy
As indicated by the chart and table, West Pacific Marketing Consultants must focus on large corporations, medium companies, small businesses, and individual customers in the global market; and in the Indonesian market, regional (provincial) government offices, NGOs, academics, and individual customers will be the core of profits.
4.3 Service Business Analysis
The following companies are major players in Indonesian market research consulting:
1. AC Nielsen Indonesia
2. Australian Trade Commission
3. Business Advisory Indonesia
4. The Castle Group
5. CIC Consulting Group
6. CDA International
7. Consensus MBL
8. PT. Data Consult, Inc.
9. Ganesha Aggies Jaya
10. Harvest International Inc.
11. PT. IBIS Dharma Nusa
12. IndoAust Jaya
13. Indonesia Executive Search
14. Penelitian Hukum Indonesia
15. Plansearch Associates
16. SOFRES FSA Jakarta (Taylor Nelson Sofres Group)
4.4 Competition and Buying Patterns
Recent analysis indicated that consultant costs in Indonesia have decreased by 12% since the economic turmoil of 1996. This analysis is based on the assumptions that the local senior consultants’ and senior engineers’ salaries have increased by 25% at the average exchange rate of US$1 = Rp 7,200. The Indonesian skilled manpower market offers the lowest man-hour cost in the world, even with the estimated average increasing 20% per year.
To take advantage of this situation, West Pacific Marketing Consultants utilizes Indonesian resources for serving both global and regional markets.
Strategy and Implementation Summary
West Pacific Marketing Consultants will focus on six technographical market segments:
1. Large corporations: The most important market segment consists of large manufacturers, technology providers, suppliers, trading houses, turnkey contractors, developers, utilities, banking and financing institutions, mining, consulting, and engineering industries. These companies will be interacting with West Pacific Marketing Consultants for development functions that are more effective when spun off than when managed in-house.
2. Medium-sized growth companies: For high-growth fields, West Pacific Marketing Consultants will offer an attractive development alternative that will address opportunities in new market segments.
3. Regional (Provincial) Government Office: West Pacific Marketing Consultants will offer innovative assistance in export facilitation and investment promotion, in line with the launching of the new Regional Autonomy Law in Indonesia.
4. Academics: Universities and Colleges granting professionals, masters, and doctorate degrees in business, engineering, and technology-related subjects.
5. Small businesses owners.
6. Individual customers: Influential people such as boards of directors, marketing managers, general managers, sales managers, and government officials.
5.1 Competitive Edge
West Pacific Marketing Consultants has close and effective relationships with its end-users, vendors, and even competitors. On several occasions, West Pacific Marketing Consultants has teamed up with its end-user or supplier in a consortium partnership to perform projects.
West Pacific Marketing Consultants combines quality with a cost-effective package to create a consulting service with competitive advantages. The management is qualified for multiple services, such as business development, market development, market intelligence, industrial sectors analysis, and channel development. Clients can always count on quick, accurate services from the company.
5.2 Sales Strategy
West Pacific Marketing Consultants’ strategy focuses on maintaining the identity of the high-end buyer who appreciates quality service but is also demanding regarding value creations. West Pacific Marketing Consultants has found these customers using a combination of social and interactive email relationships.
Furthermore, as part of its “individual sales strategy,” West Pacific Marketing Consultants customizes its services for each specific client. This approach allows clients to participate in producing exactly what they want. Even when offering a standard service, West Pacific Marketing Consultants provides a tailored offering mix of elements, such as optional services, benefits, delivery conditions, training, financing alternatives, technical services options, and sales assistance options.
5.2.1 Sales Forecast
The sales forecast monthly summary is included in the appendix. The annual sales projections are included in the chart and table.
The sales forecast assumes that the yearly change in costs or prices will average 20%, which is a reasonable assumption based on the last few years.
West Pacific Marketing Consultants expects to increase sales modestly in 2001 and 2002, with sales growth accelerating in 2003-2005. The company aims to double its starting sales within five years.
Sales Forecast
| Sales Forecast | |||||
| 2001 | 2002 | 2003 | 2004 | 2005 | |
| Sales | |||||
| Retainer Consulting | $580,000 | $696,000 | $835,200 | $1,002,240 | $1,202,688 |
| Project Consulting | $480,000 | $576,000 | $691,200 | $829,440 | $995,328 |
| Market Research & Industrial Analyses | $360,000 | $432,000 | $518,400 | $622,080 | $746,496 |
| Feasibility Studies | $360,000 | $432,000 | $518,400 | $622,080 | $746,496 |
| Strategic Analysis and Reports | $300,000 | $360,000 | $432,000 | $518,400 | $622,080 |
| Other | $0 | $0 | $0 | $0 | $0 |
| Total Sales | $2,080,000 | $2,496,000 | $2,995,200 | $3,594,240 | $4,313,088 |
| Direct Cost of Sales | 2001 | 2002 | 2003 | 2004 | 2005 |
| Retainer Consulting | $116,040 | $139,248 | $167,098 | $200,517 | $240,621 |
| Project Consulting | $93,720 | $112,464 | $134,957 | $161,948 | $194,334 |
| Market Research & Industrial Analyses | $72,000 | $86,400 | $103,680 | $124,416 | $149,299 |
| Feasibility Studies | $72,000 | $86,400 | $103,680 | $124,416 | $149,299 |
| Strategic Analysis and Reports | $58,560 | $70,272 | $84,236 | $101,192 | $121,430 |
| Other | $0 | $0 | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $412,320 | $494,784 | $593,651 | $712,489 | $854,983 |
5.3 Milestones
The chart and table show specific milestones, with responsibilities, dates, and budgets. West Pacific Marketing Consultants is focusing on a few key milestones.
Print advertising will target newspapers and magazines, while internet advertising will appear on websites and search engines.
Participation in Indonesian business and trade exhibitions will be important as well.
The initial management team relies heavily on the founders, with minimal backup. As West Pacific Marketing Consultants expands, a team of 17 employees will be established, with a president and three vice-presidents leading the way.
The company’s management philosophy is based on responsibility and mutual respect. Employees are drawn to West Pacific Marketing Consultants because of the encouraging environment that emphasizes "C4A" – Creativity, Concepts, Competencies, Connections, and Achievement. This C4A concept is essential for driving the Shareholders Value Creation of the company.
The team consists of 17 employees, with a president and three vice-presidents overseeing the three main management divisions: Sales and Marketing, Operations, and Internal Business Management. The Sales and Marketing division manages marketing, sales, products and services, research and development, and public relations operations. The Internal Business Management division manages accounting, administration, and human resources development.
The financial outlook for West Pacific Marketing Consultants is positive, with the company not anticipating any debt. The owners are modest in their salaries, allowing for some dividend payouts.
The accompanying table outlines the main assumptions for West Pacific Marketing Consultants’ financial projections. The collection days assumption is particularly sensitive, and the company aims to improve collection days to alleviate pressure on working capital.
The business ratios for West Pacific Marketing Consultants are presented in the following table. The Industry Profiles column provides ratios based on the management consulting services industry.
The break-even analysis, including monthly units and sales break-even points, is summarized in the chart and table below.
Break-even Analysis
Monthly Revenue Break-even: $46,214
Assumptions:
– Average Percent Variable Cost: 20%
– Estimated Monthly Fixed Cost: $37,053
7.4 Projected Profit and Loss
The detailed monthly pro-forma income statement for the first year is included in the appendix. The annual estimates are included here.
Pro Forma Profit and Loss
Sales:
2001: $2,080,000
2002: $2,496,000
2003: $2,995,200
2004: $3,594,240
2005: $4,313,088
Direct Cost of Sales:
2001: $412,320
2002: $494,784
2003: $593,651
2004: $712,489
2005: $854,983
Other:
$0
$0
$0
$0
$0
Total Cost of Sales:
2001: $412,320
2002: $494,784
2003: $593,651
2004: $712,489
2005: $854,983
Gross Margin:
2001: $1,667,680
2002: $2,001,216
2003: $2,401,549
2004: $2,881,751
2005: $3,458,105
Gross Margin %:
2001: 80.18%
2002: 80.18%
2003: 80.18%
2004: 80.18%
2005: 80.18%
Expenses:
Payroll:
2001: $271,200
2002: $298,320
2003: $328,152
2004: $360,967
2005: $397,064
Sales and Marketing and Other Expenses:
2001: $85,000
2002: $102,000
2003: $122,320
2004: $146,784
2005: $176,141
Depreciation:
$0
$0
$0
$0
$0
Leased Equipment:
$0
$0
$0
$0
$0
Utilities:
2001: $7,200
2002: $8,640
2003: $10,368
2004: $12,442
2005: $14,930
Insurance:
2001: $2,160
2002: $2,592
2003: $3,110
2004: $3,732
2005: $4,479
Office Rent:
2001: $38,400
2002: $46,080
2003: $55,296
2004: $66,355
2005: $79,626
Payroll Taxes:
2001: $40,680
2002: $44,748
2003: $49,223
2004: $54,145
2005: $59,560
Other:
$0
$0
$0
$0
$0
Total Operating Expenses:
2001: $444,640
2002: $502,380
2003: $568,469
2004: $644,426
2005: $731,799
Profit Before Interest and Taxes:
2001: $1,223,040
2002: $1,498,836
2003: $1,833,080
2004: $2,237,325
2005: $2,726,306
EBITDA:
2001: $1,223,040
2002: $1,498,836
2003: $1,833,080
2004: $2,237,325
2005: $2,726,306
Interest Expense:
$0
$0
$0
$0
$0
Taxes Incurred:
2001: $305,760
2002: $374,709
2003: $458,270
2004: $559,331
2005: $681,576
Net Profit:
2001: $917,280
2002: $1,124,127
2003: $1,374,810
2004: $1,677,994
2005: $2,044,729
Net Profit/Sales:
2001: 44.10%
2002: 45.04%
2003: 45.90%
2004: 46.69%
2005: 47.41%
7.5 Projected Cash Flow
Cash flow projections are critical to West Pacific Marketing Consultants’ success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included below in the following chart and table. Detailed monthly numbers are included in the appendix.
Pro Forma Cash Flow:
Cash Received:
– Cash from Operations:
– Cash Sales: $1,040,000 in 2001, $1,248,000 in 2002, $1,497,600 in 2003, $1,797,120 in 2004, $2,156,544 in 2005
– Cash from Receivables: $986,355 in 2001, $1,213,583 in 2002, $1,456,300 in 2003, $1,747,560 in 2004, $2,097,072 in 2005
– Subtotal Cash from Operations: $2,026,355 in 2001, $2,461,583 in 2002, $2,953,900 in 2003, $3,544,680 in 2004, $4,253,616 in 2005
– Additional Cash Received:
– Sales Tax, VAT, HST/GST Received: $0 in all years
– New Current Borrowing: $0 in all years
– New Other Liabilities (interest-free): $0 in all years
– New Long-term Liabilities: $0 in all years
– Sales of Other Current Assets: $0 in all years
– Sales of Long-term Assets: $0 in all years
– New Investment Received: $0 in all years
– Subtotal Cash Received: $2,026,355 in 2001, $2,461,583 in 2002, $2,953,900 in 2003, $3,544,680 in 2004, $4,253,616 in 2005
Expenditures:
– Expenditures from Operations:
– Cash Spending: $271,200 in 2001, $298,320 in 2002, $328,152 in 2003, $360,967 in 2004, $397,064 in 2005
– Bill Payments: $825,811 in 2001, $1,056,025 in 2002, $1,274,264 in 2003, $1,533,659 in 2004, $1,845,321 in 2005
– Subtotal Spent on Operations: $1,097,011 in 2001, $1,354,345 in 2002, $1,602,416 in 2003, $1,894,626 in 2004, $2,242,385 in 2005
– Additional Cash Spent:
– Sales Tax, VAT, HST/GST Paid Out: $0 in all years
– Principal Repayment of Current Borrowing: $0 in all years
– Other Liabilities Principal Repayment: $0 in all years
– Long-term Liabilities Principal Repayment: $0 in all years
– Purchase Other Current Assets: $0 in all years
– Purchase Long-term Assets: $0 in all years
– Dividends: $0 in all years
– Subtotal Cash Spent: $1,097,011 in 2001, $1,354,345 in 2002, $1,602,416 in 2003, $1,894,626 in 2004, $2,242,385 in 2005
Net Cash Flow: $929,344 in 2001, $1,107,238 in 2002, $1,351,484 in 2003, $1,650,054 in 2004, $2,011,231 in 2005
Cash Balance: $1,585,430 in 2001, $2,692,668 in 2002, $4,044,152 in 2003, $5,694,206 in 2004, $7,705,437 in 2005
7.6 Projected Balance Sheet:
The following balance sheet shows healthy growth of net worth and a strong financial position. Monthly estimates are included in the appendix.
Pro Forma Balance Sheet:
Assets:
– Current Assets:
– Cash: $1,585,430 in 2001, $2,692,668 in 2002, $4,044,152 in 2003, $5,694,206 in 2004, $7,705,437 in 2005
– Accounts Receivable: $172,083 in 2001, $206,500 in 2002, $247,800 in 2003, $297,360 in 2004, $356,832 in 2005
– Other Current Assets: $0 in all years
– Total Current Assets: $1,757,513 in 2001, $2,899,168 in 2002, $4,291,952 in 2003, $5,991,566 in 2004, $8,062,269 in 2005
– Long-term Assets:
– Long-term Assets: $126,588 in all years
– Accumulated Depreciation: $0 in all years
– Total Long-term Assets: $126,588 in all years
– Total Assets: $1,884,101 in 2001, $3,025,756 in 2002, $4,418,540 in 2003, $6,118,154 in 2004, $8,188,857 in 2005
Liabilities and Capital:
– Current Liabilities:
– Accounts Payable: $70,709 in 2001, $88,237 in 2002, $106,211 in 2003, $127,831 in 2004, $153,805 in 2005
– Current Borrowing: $0 in all years
– Other Current Liabilities: $0 in all years
– Subtotal Current Liabilities: $70,709 in 2001, $88,237 in 2002, $106,211 in 2003, $127,831 in 2004, $153,805 in 2005
– Long-term Liabilities: $0 in all years
– Total Liabilities: $70,709 in 2001, $88,237 in 2002, $106,211 in 2003, $127,831 in 2004, $153,805 in 2005
– Paid-in Capital: $37,800 in all years
– Retained Earnings: $858,312 in 2001, $1,775,592 in 2002, $2,899,719 in 2003, $4,274,528 in 2004, $5,952,522 in 2005
– Earnings: $917,280 in 2001, $1,124,127 in 2002, $1,374,810 in 2003, $1,677,994 in 2004, $2,044,729 in 2005
– Total Capital: $1,813,392 in 2001, $2,937,519 in 2002, $4,312,328 in 2003, $5,990,322 in 2004, $8,035,052 in 2005
– Total Liabilities and Capital: $1,884,101 in 2001, $3,025,756 in 2002, $4,418,540 in 2003, $6,118,154 in 2004, $8,188,857 in 2005
– Net Worth: $1,813,392 in 2001, $2,937,519 in 2002, $4,312,328 in 2003, $5,990,322 in 2004, $8,035,052 in 2005
Appendix:
Sales Forecast:
– Retainer Consulting: $46,000 in January, February, March, April, May, $50,000 in June, July, August, September, October, November, December
– Project Consulting: $40,000 in all months
– Market Research & Industrial Analyses: $30,000 in all months
– Feasibility Studies: $30,000 in all months
– Strategic Analysis and Reports: $25,000 in all months
– Other: $0 in all months
– Total Sales: $171,000 in January, February, March, April, May, $175,000 in June, July, August, September, October, November, December
Direct Cost of Sales:
– Retainer Consulting: $9,670 in all months
– Project Consulting: $7,810 in all months
– Market Research & Industrial Analyses: $6,000 in all months
– Feasibility Studies: $6,000 in all months
– Strategic Analysis and Reports: $4,880 in all months
– Other: $0 in all months
– Subtotal Direct Cost of Sales: $34,360 in all months
Personnel Plan:
– Vice President Sales & Marketing: $2,000 in all months
– Technical Sales B2B: $1,200 in all months
– Technical Sales B2C: $1,200 in all months
– Secretary – Sales & Marketing Office: $300 in all months
– Vice President Operations: $2,000 in all months
– Senior Consultant – Marketing: $1,200 in all months
– Senior Consultant – Finance Management: $1,200 in all months
– Senior Consultant – Strategic Management: $1,200 in all months
– Secretary – Operations Office: $300 in all months
– VP Internal Business Management: $2,000 in all months
– Accountant: $1,200 in all months
– Legal Officer: $1,200 in all months
– Administrative Officer: $1,200 in all months
– HRD Officer: $1,200 in all months
– President/CEO: $4,000 in all months
– Secretary to the CEO: $500 in all months
– Bookkeeper: $300 in all months
– Clerical: $100 in all months
– Total People: 0 in all months
– Total Payroll: $22,600 in all months
The provided tables display financial information related to cash flow, profit and loss, and various expenses over a period of twelve months. The data presented includes details such as interest rates, taxes, and costs of sales.
The pro forma profit and loss table illustrates the sales, direct cost of sales, gross margin, and expenses for each month. It also includes the net profit and net profit ratio.
The pro forma cash flow table showcases cash inflows from operations, sales tax, and new borrowings. Additionally, it displays cash outflows related to expenditures from operations, sales tax paid, and principal repayments. The table concludes with the net cash flow and cash balance for each month.
Overall, these tables provide a comprehensive overview of the financial aspects of a business operation.
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