ePlace Solutions

BUSINESS PLAN

Mr. John Jones

Phone: 1-800-555-1212
www.sampleplans1.com
Table of Contents
Executive Summary ......................................................................................... 4

Loan Analysis..................................................................................................... 5

Financial Highlights.......................................................................................... 5

Startup Summary.............................................................................................. 6

Industry at a Glance.......................................................................................... 8

Projected Industry Growth.............................................................................. 9

Key External Drivers........................................................................................10

Objectives..........................................................................................................10

SWOT Analysis...................................................................................................11

Marketing............................................................................................................11

Management Summary..................................................................................12

FInancial Indicators..........................................................................................13

Revenue Forecast.............................................................................................14

Break-Even Analysis........................................................................................15

Profit and Loss Statement..............................................................................16

Projected Cash Flow........................................................................................17

Projected Balance Sheet.................................................................................18

Year 1 Personnel Forecast...............................................................................19

Year 1 Revenue Forecast.................................................................................19

Year 1 Profit & Loss..........................................................................................20

Year 1 Balance Sheet........................................................................................21

 Executive Summary
EPlace Solutions will be an innovative online e-commerce portal offering a variety of products to consumers throughout the globe.
Founded by Mr. John Jones, a seasoned business visionary with an eye towards profit and achievement, the organization is set to
enter the market during 2012. The timing of market entry is nothing less than exceptional as consumers throughout the globe have
begun releasing pent-up spending that was held as a result of the global recession. Online shopping is at an all-time high with new
consumer mindsets calling for them to shop for the types of deals and bargains that will be so much a part of the EPlace Solutions
business model. While the market has a great deal of potential and is filled with incredible opportunities, in order to capitalize on
them, a strong infusion of working capital must be acquired. Working capital will be used in a variety of areas including marketing,
logistics, insurance, management as well as the financing of the day to day operations of a business of this type. The founder projects
needing a working capital sum of 100K for his venture with repayment of this sum coming from profits made through the website.

Marketing for EPlace Solutions will be done primarily through the Internet. The founder will develop a strong online presence that is
user-friendly, easy to navigate and encourages consumers to engage in longer stays that increase the probability of a purchase. In
addition to the home website, plans also call for the organization to develop a strong social media presence using Facebook.com and
Twitter.com; the world’s premier social networks with over 1 billion persons in their combined communities. The social media pages
will be updated on a daily basis with information that will drive the marketing message and allow it to resonate with the members of
the core audience. Long-term plans call for the founder to possibly explore mass media marketing including print, radio and television
but at this time, those mediums simply will not yield an optimal return on investment. For this reason, the founder has decided to
forego them but does reserve the right to revisit them as the needs and resources of the business allow.

Financials for EPlace Solutions are strong and show patterns of consistent growth over the course of the next five years. Overhead
costs are extremely low and do not in any way threaten the projected profit position of the organization in any of the five years that are
outlined in the financials. There are no large salaries involved in the financial mix as the founder does not project to immediately need
to hire a staff of any type as the majority of the functions can be handled alone. All of these factors bode extremely well for EPlace
Solutions as the organization looks to become one of the online commerce’s signature brands and a true market leader.

4
Loan Analysis
Loan Analysis
Interest Rate: 8.50%
The projected loan analysis for EPlace Solutions is shown in the
Years of Loan: 15
table above. The organization projects to have a monthly loan
Loan Amount: $100,000.00
payment of $984.74 with a total loan payment of $177,253.12
Monthly Payment: $984.74
over the 15 year life of the loan.
Total Payment: $177,253.12
Total Interest: $77,253.12

Financial Highlights
$2,500,000.00

$2,000,000.00

$1,500,000.00

$1,000,000.00

$500,000.00

$0.00
Year 1 Year 2 Year 3 Year 4 Year 5

Revenue Direct Costs Operating Expenses Net Profit

The financial highlights for EPlace Solutions are shown in the chart above. The organization projects to have strong growth trends over
the course of the next five years.

5
 Startup Summary
Start-up Expenses
Payroll $10,000
Rent Deposits $5,000
Permits $6,500
License $3,500
Web Development $25,000

Total Start-up Expenses $50,000 Startup Figures

Start-up Assets $50,000 $50,000

Working Capital $10,000

Inventory $12,500
Materials $1,000 $25,000
Miscellaneous $1,500

Total Start-up Assets $27,100
$0
Total Requirements
Expenses Assets Investment Current Loans
Total Start-up Expenses $50,000
Total Start-up Assets $50,000
Total Requirements $100,000

Start-up Investments
IInvestment
Owner $25,000
Investor $0
Total Planned Investment $25,000

6 5
Mission Statement
The mission of EPlace Solutions is to provide a reliable online marketplace for consumers that offer quality products at a reasonable
price that drives profits for the parent company while adding value to our brand constituents.

Company Ownership
John Jones is the sole owner of EPlace Solutions. There are no other parties with the ability to claim an ownership stake in this
venture. It should however be noted that Mr. Jones is currently soliciting offers from investors or investment groups that share in his
long-term vision for profit and success.

Business Location
EPlace Solutions will be located in San Diego, California with the ability to serve clients throughout the globe. Long-term plans are
for this to remain the base of operations due to the familiarity of the founder with the area and the reach that the Internet provides.

Products and Services

EPlace Solutions will offer a security online marketplace for consumers looking to transact purchases for reduced cost items. The
organization will have a drop shipping approach which will greatly enhance the appeal and lower the overall overhead costs that are
incurred.

About the Founder

Mr. John Jones is the founder of EPlace Solutions. Mr. Jones is a seasoned business professional with the ability to develop strategies
that yield optimal financial results. His background in architecture will be invaluable as he looks to meticulously create a business
model and approach that allow EPlace Solutions to become recognized as a true market leader.

7
 Industry at a Glance
Key Statistics Revenue Annual Growth 06-11 Annual Growth 11-16
Snapshot
$186.4bn 8.4% 9.4%
Profit Wages Business

$12.7bn $7.8bn 50,973

Products and services
4.5%
segmentation (2011) 5.5% Food, beverages
and pet food
Office equipment
and supplies

6.5%
Medication and
24.3%
cosmetics Computers and TVs

7.2%
Furniture and
home appliances

13.8%
Sporting goods, toys,
hobby items and games
23.2%
Other merchandise

15%
Clothing, footware,
accessories and jewelry
SOURCE: WWW.IBISWORLD.COM

Every year, more than 100 million Americans purchase goods from CDs, DVDs, books, clothing, footwear and groceries. Hard-to-find
the online retail marketplace, one of the fastest-growing industries niche products or products that are no longer being produced
in the United States. Since the start of the decade, revenue for have also found homes online. As product ranges have grown, so
the E-Commerce and Online Auctions industry has grown at an has the number of industry operators. The number of enterprises
exceptional rate, outperforming most retail industries in the has grown at an average annual rate of 2.4% in the five years to
country. 2011 to 50,973.

Despite the brief recession-induced slump in 2008 and 2009, In the coming years, continued economic recovery will contribute
industry revenue is expected to increase at an average annual rate to the industry’s strong growth. Increases in per capita income
of 8.4% in the five years to 2011, including a 10.0% jump in 2011 to and employment will improve consumer sentiment, increasing
bring revenue to $186.4 billion. Because of steady growth, industry consumers’ likelihood to buy. Also, broadband internet adoption
margins have also improved, increasing from about 5.0% in 2006 will grow in the next five years, boosting online retailers’
to an estimated 6.8% in 2011. accessibility. IBISWorld forecasts that these factors will cause
industry revenue to grow at an average annual rate of 9.4% over
As online shopping becomes more popular, retailers are expanding the five years to 2016 to total $291.9 billion.
the products they carry to include common household goods like
8
Projected Industry Growth
In the 10 years to 2016, industry value added, which measures the E-Commerce and Online Auctions industry’s contribution to the US economy,
is expected to increase by an average annual rate of 11.0%, while US GDP is forecast to rise by an average annual rate of 2.0% over this same
period. This indicates that the industry is in growth phase of its life cycle, as its growth rate outpaces GDP over a 10-year period. Rising industry
participation and new forms of businesses also indicate a growing industry.

Over the five years to 2011, the number of online retailers and auction sites has increased at an average annual rate of 2.4% to 50,973
businesses. This growth in industry participation can be attributed to an increase in e-commerce demand, mainly driven by the rising
prevalence of broadband connections and other high-speed internet services. Such services have allowed more consumers to surf the net
and buy products without experiencing any lag time; consequently, more consumers have been able to make purchases online with added
convenience. Furthermore, the industry’s low barriers to entry and skill requirements has allowed for companies to enter the industry without
much difficulties, leading to higher participation. In the five years to 2016, the number of operators is expected to further rise with higher
demand for e-commerce websites. Total number of players is forecast to increase by 2.4% annually to total 57,428 businesses.

In recent years, a relatively new form of e-commerce known as social commerce has emerged within the industry. Unlike traditional e-tailers,
social commerce involves using social media, online media that encourages online interaction and user contribution, to assist in the online
buying and selling of goods. This subset of e-commerce retailers has gained wide acceptance to consumers in the five years to 2011, by
providing engaging content and discounted (or wholesale) prices through user interaction (i.e. sharing information and purchasing as groups).
IBISWorld expects more form of social media or new e-commerce businesses to arise in the next five years to 2016, further contributing to the
growth stage designation of the industry.

9
 Key External Drivers
Per capita disposable income
Disposable income is a deciding factor in determining the quantity
4
and quality of online purchases. Changes in income can occur because
3 of movements in wages, government benefits, unemployment and
tax rates and returns on assets. This driver is expected to increase
% Change

2
over 2011, making it a potential opportunity for industry growth.
1 The E-Commerce and Online Auctions industry is sensitive to the
0 penetration rate of PCs. If the rate of computer ownership increases,
then a larger proportion of the population has access to e-tailers.
-1
Additionally, increased computer and internet use will likely raise
Year 05 07 09 11 13 15 17
confidence, leading to greater computer activity and sales. This
driver is expected to increase over 2011.

Percentage of households with at

least one computer During periods of low economic growth, consumer sentiment
85 declines; as a result, consumers limit their expenditure. This factor
80 subsequently affects demand for products online. This driver is
expected to rise over 2011, but because of high unemployment, it
75
remains a threat to industry growth. When more households have
%
70 access to broadband internet as opposed to dial-up, they are more
likely to make online purchases because of the speed gains derived
65
from a broadband connection. This driver is expected to increase
60 over 2011.
Year 03 05 07 09 11 13 15 17

Objectives
What follows is a listing of the core objectives for EPlace Solutions.

1. Develop a strong customer base. Developing a strong customer base will be the first priority. To achieve this end the founder will
create an effective customer service model that adequately addresses all of the unique needs of the online consumer.

2. Create a broad marketplace. Having a broad marketplace with a variety of goods will be another of the core objectives. From
furniture to electronics to kitchen and fashion, the founder is intent on creating a marketplace that is as broad as the consumers taste.

3. Online security. As the online shopping industry has continued to grow, so too has the need for online security. With that being said
the founder will look to develop a secure environment that protects the consumer on all levels.

4. Drive profits. Driving profits will be the final objective for EPlace Solutions as the founder will look to grow the revenue and profit
streams exponentially over the course of the coming years.

10
SWOT Analysis
What follows is an analysis of the core strengths and weaknesses of the EPlace Solutions business model as well as the opportunities and
threats that currently exist within the marketplace.

Strengths
Opportunities
1. Knowledge of the founder. EPlace Solutions founder Mr.
John Jones is a seasoned business professional who is well 1. Increase in online activity among minorities. Minorities
attuned to the e-commerce and Internet driven marketplace. His are beginning to turn to the Internet for their shopping needs in
broad skill set will be invaluable during all phases of business large quantities. Research conducted via IBISworld.com shows
growth and evolution. that appealing to this segment of the market will be one of the
keys to success for companies like EPlace Solutions that are
2. Low overhead costs. EPlace Solutions will have extremely looking for long-term sustainability.
low overhead costs due to the fact that the business will not carry
inventory or need office space to operate effectively. Threats

3. Growth of the industry. The growth of the industry is 1. Larger competitors. Larger competitors such as Ebay.
another of the core strengths of the EPlace Solutions business com and Amazon.com pose a threat as they are already firmly
model. With more and more shopping traffic going online, the entrenched in the marketplace and have acquired a large share of
long-term prospects for EPlace Solutions are nothing less than the online shopping market.
promising.

Weaknesses

1. Lack of funding. Lack of funding is the primary weakness for

EPlace Solutions as all of the other components of the business
model and approach are extremely sound.

Marketing
EPlace Solutions will rely primarily on the Internet to drive the marketing efforts. Planned marketing efforts include the creation of a user
friendly website developed using all of the latest in design and online technologies. The website will also feature SEO (Search Engine
Optimization) which will allow it to rank higher with popular search engines including Yahoo.com and Google.com among others. Social
networking using Facebook.com and Twitter.com will round out the EPlace Solutions marketing model and approach with each being used
extensively throughout the course of each calendar year.

119
 Management Summary
Personnel Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Personnel Count
Founder 1 1 1 1 1
Operations 2 2 2 2 2
Total Personnel 3 3 3 3 3

Personnel Wage
Founder $60,000 $63,000 $66,150 $69,458 $72,930
Operations $78,000 $81,900 $85,995 $90,295 $94,809

Personnel Costs
Founder $60,000 $63,000 $66,150 $69,458 $72,930
Operations $156,000 $163,800 $171,990 $180,590 $189,619
Total Payroll $216,000 $226,800 $238,140 $250,047 $262,549

The projected management and personnel summary for EPlace Solutions is shown in the table above.

12 11
Financial Indicators
PersonnelIndicators
Financial Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
ProfitabilityCount
Personnel %’s:
Joseph
GrossSerrone
Margin 192.50% 92.50%
1 92.50%
1 92.50%
1 92.50%
1
Brandon
Net Profi
Bueno
t Margin 1
13.55% 16.63%
1 20.39%
1 23.82%
1 26.95%
1
Vickie
EBITDA
Bueno-Serrone
to Revenue 1
26.91% 1
32.78% 138.13% 1
42.99% 47.41%
1
Total Personnel 3 3 3 3 3
Leverage Ratios:
Personnel
Debt to Wage
Equity 0.24 0.29 0.30 0.29 0.27
Joseph
Debt Serrone
to Assets Ratio $11,196
17.88% $11,756
21.63% $12,344
22.37% $12,961
21.82% $13,609
20.71%
Brandon
InterestBueno
Coverage Ratio $11,196
3.59 4.65
$11,756 5.75
$12,344 6.90
$12,961 8.09
$13,609
Vickie Bueno-Serrone $11,196 $11,756 $12,344 $12,961 $13,609
Liquidity Ratios:
Personnel
Current Costs
Ratio 20.91 31.74 45.94 64.12 86.93
Joseph
Current
Serrone
Debt to Total Assets Ratio $11,196
4.58% 3.07%
$11,756 2.14%
$12,344 1.54%
$12,961 1.14%
$13,609
Brandon Bueno $11,196 $11,756 $12,344 $12,961 $13,609
Vickie Bueno-Serrone
Additional Indicators: $11,196 $11,756 $12,344 $12,961 $13,609
Total
Revenue
Payrollto Equity Ratio $33,588
2.41 1.89
$35,267 1.51
$37,031 1.23
$38,882 1.02
$40,826

Financial Indicators

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
1 2 3 4 5

Gross Margin Net Profit Margin EBITDA to Revenue

The financial indicators for EPlace Solutions are shown in the table above and graph. The organization projects to have a favorable
growth in profit margin in each of the first five years of operations.

13
 Revenue Forecast
PersonnelForecast
Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Units
Personnel Count
Products
Joseph Serrone 16,876 17,908 19,094 10,458
1 12,027
1
Brandon
Total Units
Bueno 1
6,876 17,908 1
9,094 10,458
1 12,027
1
Vickie Bueno-Serrone 1 1 1 1 1
TotalPrice
Unit Personnel 3 3 3 3 3
Products $175.00 $175.00 $175.00 $175.00 $175.00
Personnel Wage
Revenue
Joseph Serrone $11,196 $11,756 $12,344 $12,961 $13,609
Brandon Bueno
Products $11,196
$1,203,335 $1,383,835
$11,756 $1,591,410
$12,344 $1,830,122
$12,961 $2,104,640
$13,609
VickieRevenue
Total Bueno-Serrone $11,196
$1,203,335 $1,383,835
$11,756 $1,591,410
$12,344 $1,830,122
$12,961 $2,104,640
$13,609

Direct UnitCosts
Personnel Cost
Products
Joseph Serrone $85.00
$11,196 $85.00
$11,756 $85.00
$12,344 $12,961
$85.00 $13,609
$85.00
Brandon Bueno $11,196 $11,756 $12,344 $12,961 $13,609
Vickie Cost
Direct Bueno-Serrone
of Revenue $11,196 $11,756 $12,344 $12,961 $13,609
Total Payroll
Products $33,588
$584,477 $35,267
$672,148 $37,031
$772,971 $38,882
$888,916 $40,826
$1,022,254
Subtotal Cost of Revenue $584,477 $672,148 $772,971 $888,916 $1,022,254

Total Revenue

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue

The projected revenue forecast for EPlace Solutions is shown in the chart and graph above. The organization projects to have strong
revenue growth that is commensurate with research conducted via IBISworld.com.

14
 Break-Even Analysis
Income Chart
$1,400,000

$1,200,000 Sales Revenue 100.0%

$1,000,000 Cost of Sales 48.6%

$800,000 Gross Profit 51.4%

$600,000 Fixed Expenses 2.4%

$400,000 Income Before Tax 35.0%

$200,000

$0

Break-even
$1,400,000
Revenue

$1,200,000
REVENUE
$1,000,000
FIXED COSTS
$800,000

$600,000

$400,000

$200,000

$0

0 1 2 3 4 5 6 7 8 9 10 11 12
Months

The projected break-even analysis for EPlace Solutions is shown in the table above. The organization projects to have first year average
monthly revenues of $100,278 with costs of $77,373.

15
 Profit and Loss Statement
Personnel
Pro FormaForecast
Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Count
Personnel $1,203,335 $1,383,835 $1,591,410 $1,830,122 $2,104,640
Total
Joseph
Cost
Serrone
of Revenue 1
$584,477 $672,148
1 $772,971
1 $888,916
1 $1,022,254
1
Brandon Bueno 1 1 1 1 1
Vickie Margin
Gross Bueno-Serrone 1
$618,858 1
$711,687 1$818,440 1
$941,205 $1,082,386
1
Total Personnel
Gross Margin/Revenue 3
51.43% 51.43%
3 51.43%
3 51.43%
3 51.43%
3

Expenses Wage
Personnel
Supplies
Joseph Serrone $18,000
$11,196 $18,900
$11,756 $19,845
$12,344 $20,837
$12,961 $21,879
$13,609
Brandon Bueno
Rent $11,196
$36,000 $37,800
$11,756 $39,690
$12,344 $41,675
$12,961 $13,609
$43,758
Vickie Bueno-Serrone
Marketing $11,196
$26,400 $11,756
$27,720 $12,344
$29,106 $12,961
$30,561 $13,609
$32,089
Insurance $2,400 $2,520 $2,646 $2,778 $2,917
Personnel Costs
Miscellaneous $4,800 $5,040 $5,292 $5,557 $5,834
Payroll
JosephTaxes
Serrone $11,196
$32,400 $34,020
$11,756 $35,721
$12,344 $37,507
$12,961 $39,382
$13,609
Brandon
Total Personnel
Bueno $11,196
$216,000 $11,756
$226,800 $12,344
$238,140 $12,961
$250,047 $13,609
$262,549
VickieOp.
Total Bueno-Serrone
Expenses $11,196
$336,000 $352,800
$11,756 $370,440
$12,344 $388,962
$12,961 $408,410
$13,609
Total Payroll $33,588 $35,267 $37,031 $38,882 $40,826
Profit Before Interest and Taxes $282,858 $358,887 $448,000 $552,243 $673,976
EBITDA $282,858 $358,887 $448,000 $552,243 $673,976
Interest Expense $8,000 $8,000 $8,000 $8,000 $8,000
Taxes Incurred $83,401 $122,810 $154,000 $190,485 $233,092

Net Profit $191,457 $228,076 $286,000 $353,758 $432,885

Net Profit/Revenue 15.91% 16.48% 17.97% 19.33% 20.57%

Year 1 Year 2 Year 3

17% Total Cost of Revenue 18% Total Cost of Revenue 20% Total Cost of Revenue

53% Total Op. Expenses 54% Total Op. Expenses 54% Total Op. Expenses
30% 28% 26%
Net Profit Net Profit Net Profit

Year 4 Year 5

22% Total Cost of Revenue 23% Total Cost of Revenue

54% Total Op. Expenses 55% Total Op. Expenses

24% 22%
Net Profit Net Profit

16
Projected Cash Flow
Personnel
Pro FormaForecast
Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Personnel Count
Revenue
Joseph Serrone 1$1,203,335 $1,383,835
1 $1,591,410
1 $1,830,122
1 $2,104,640
1
Brandon
New Current
BuenoBorrowing 1
$0 1
$0 1
$0 1
$0 1
$0
VickieLong-term
New Bueno-Serrone
Liabilities 1
$0 1
$0 1
$0 1
$0 1
$0
TotalofPersonnel
Sale Other Current Assets 3
$0 3
$0 3
$0 3
$0 3
$0
Sale of Long-term Assets $0 $0 $0 $0 $0
Personnel
New Investment
Wage Received $0 $0 $0 $0 $0
Total
JosephCash
Serrone
Received $11,196
$1,203,335 $1,383,835
$11,756 $1,591,410
$12,344 $1,830,122
$12,961 $2,104,640
$13,609
Brandon Bueno $11,196 $11,756 $12,344 $12,961 $13,609
Vickie Bueno-Serrone
Expenditures $11,196 $11,756 $12,344 $12,961 $13,609
Operating Expenses & Direct Costs $1,011,878 $1,155,759 $1,305,411 $1,476,364 $1,671,755
Personnel
Current Borrowing
Costs Repay. $0 $0 $0 $0 $0
L-T
Joseph
Liabilities
Serrone
Principal Repay. $11,196
$11,817 $11,756
$11,817 $12,344
$11,817 $12,961
$11,817 $13,609
$11,817
Brandon Bueno
Purchase Other Current Assets $11,196 $11,756
$0 $12,344
$0 $12,961
$0 $13,609
$0
Vickie Bueno-Serrone
Purchase Long-term Assets $11,196 $11,756
$0 $12,344
$0 $12,961
$0 $13,609
$0
Total Payroll
Dividends $33,588 $35,267
$0 $37,031
$0 $38,882
$0 $40,826
$0
Total Expenditures $1,023,695 $1,167,576 $1,317,228 $1,488,181 $1,683,572

Net Cash Flow $179,640 $216,259 $274,183 $341,941 $421,068

Cash Balance $204,640 $420,899 $695,082 $1,037,023 $1,458,091

Pro Forma Cash Flow

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

Total Cash Received Total Expenditures Cash Balance

17
 Projected Balance Sheet
Personnel
Pro FormaForecast
Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets Count
Personnel
Current
Joseph Assets
Serrone 1 1 1 1 1
Brandon Bueno
Cash 1
$204,640 $420,899
1 $695,082
1 $1,037,023
1 $1,458,091
1
Vickie Current
Other Bueno-Serrone
Assets 1
$0 1
$0 1
$0 1
$0 1
$0
Total Personnel
Current Assets 3
$204,640 $420,899
3 $695,082
3 $1,037,023
3 $1,458,091
3

Long-termWage
Personnel Assets
Long-term
Joseph Serrone
Assets $0
$11,196 $0
$11,756 $0
$12,344 $12,961
$0 $13,609
$0
Brandon Bueno
Accumulated Depreciation $11,196
$0 $11,756
$0 $12,344
$0 $12,961
$0 $13,609
$0
VickieLong-term
Total Bueno-Serrone
Assets $11,196
$0 $11,756
$0 $12,344
$0 $12,961
$0 $13,609
$0
Total Assets $204,640 $420,899 $695,082 $1,037,023 $1,458,091
Personnel Costs
Liabilities
Joseph Serrone
and Capital $11,196 $11,756 $12,344 $12,961 $13,609
BrandonLiabilities
Current Bueno $11,196 $11,756 $12,344 $12,961 $13,609
Vickie Bueno-Serrone
Current Borrowing $11,196
$100,000 $100,000
$11,756 $100,000
$12,344 $100,000
$12,961 $100,000
$13,609
Total Payroll
Other Current Liabilities $33,588
$0 $35,267
$0 $37,031
$0 $38,882
$0 $40,826
$0
Subtotal Current Liabilities $100,000 $100,000 $100,000 $100,000 $100,000

Long-term Liabilities ($11,817) ($23,634) ($35,451) ($47,268) ($59,085)

Total Liabilities $88,183 $76,366 $64,549 $52,732 $40,915

Paid-in Capital $25,000 $25,000 $25,000 $25,000 $25,000

Retained Earnings ($50,000) $141,457 $369,533 $655,533 $1,009,291
Earnings $191,457 $228,076 $286,000 $353,758 $432,885
Total Capital $166,457 $394,533 $680,533 $1,034,291 $1,467,176
Total Liabilities and Capital $254,640 $470,899 $745,082 $1,087,023 $1,508,091

Net Worth $116,457 $344,533 $630,533 $984,291 $1,417,176

Pro Forma Balance Sheet

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0
Year 1 Year 2 Year 3 Year 4 Year 5

Total Assets Total Liabilities Net Worth

18
 APPENDIX: YEAR ONE FINANCIALS
YEAR 1 REVENUE 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
Total
Jet Ski Rental 123 148 148 172 172 197 370 370 370 246 148 0
Boat Rental 46 55 55 65 65 74 139 139 139 92 55 0
0 0 0 0 0 0 0 0 0 0 0 0 0
Jet Boat Tours (New) 123 148 148 172 172 197 370 370 370 246 148 0
0 0 0 0 0 0 0 0 0 0 0 0 0
Bathing Suits 15 18 18 22 22 25 46 46 46 31 18 0
Water Tight Box 15 18 18 22 22 25 46 46 46 31 18 0
Beach Towel/Shoes 31 37 37 43 43 49 92 92 92 62 37 0
Hats/T-Shirts 31 37 37 43 43 49 92 92 92 62 37 0
Sun Screen 23 28 28 32 32 37 69 69 69 46 28 0
Other products 39 46 46 54 54 62 116 116 116 77 46 0
Price
Jet Ski Rental $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00
Boat Rental $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00 $499.00
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Jet Boat Tours (New) $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Bathing Suits $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99 $29.99
Water Tight Box $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Beach Towel/Shoes $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99 $19.99
Hats/T-Shirts $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49 $11.49
Sun Screen $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99
Other products $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00
Revenue
Jet Ski Rental $12,197 $14,636 $14,636 $17,076 $17,076 $19,515 $36,590 $36,590 $36,590 $24,394 $14,636 $0
Boat Rental $23,054 $27,665 $27,665 $32,275 $32,275 $36,886 $69,161 $69,161 $69,161 $46,108 $27,665 $0
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Jet Boat Tours (New) $9,240 $11,088 $11,088 $12,936 $12,936 $14,784 $27,720 $27,720 $27,720 $18,480 $11,088 $0
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bathing Suits $462 $554 $554 $647 $647 $739 $1,386 $1,386 $1,386 $924 $554 $0
Water Tight Box $308 $370 $370 $431 $431 $493 $924 $924 $924 $616 $370 $0
Beach Towel/Shoes $616 $739 $739 $862 $862 $985 $1,847 $1,847 $1,847 $1,231 $739 $0
Hats/T-Shirts $354 $425 $425 $495 $495 $566 $1,062 $1,062 $1,062 $708 $425 $0
Sun Screen $231 $277 $277 $323 $323 $369 $692 $692 $692 $462 $277 $0
Other products $154 $185 $185 $216 $216 $246 $462 $462 $462 $308 $185 $0
Total Revenue $46,615 $55,938 $55,938 $65,261 $65,261 $74,584 $139,844 $139,844 $139,844 $93,230 $55,938 $0
Direct Cost
Jet Ski Rental $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80 $19.80
Boat Rental $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80 $99.80
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Jet Boat Tours (New) $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Bathing Suits $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50
Water Tight Box $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00

19
 YEAR 1 PERSONNEL 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
Management Staff

CEO 1 1 1 1 1 1 1 1 1 1 1 1

Boat Captain 1 1 1 1 1 1 1 1 1 1 1 1

Sales & Marketing 2 2 2 2 2 2 2 2 2 2 2 2

Bookkeeper 0 0 0 0 0 0 0 0 0 0 0 0

Customer Service 1 1 1 1 1 1 1 1 1 1 1 1

Deck/Launch Support 1 1 1 1 1 1 1 1 1 1 1 1

Total Personnel 6 6 6 6 6 6 6 6 6 6 6 6

Management Salaries

CEO $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Boat Captain $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Sales & Marketing $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750

Bookkeeper $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Customer Service $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917

Deck/Launch Support $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Management Staff

CEO $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Boat Captain $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Sales & Marketing $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Bookkeeper $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Customer Service $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917 $2,917

Deck/Launch Support $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Total Payroll $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167

20
 YEAR 1 INCOME STATEMENT
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $46,615 $55,938 $55,938 $65,261 $65,261 $74,584 $139,844 $139,844 $139,844 $93,230 $55,938 $0

Subtotal Cost of Revenue $8,505 $10,206 $10,206 $11,907 $11,907 $13,608 $25,516 $25,516 $25,516 $17,010 $10,206 $0

Merchant Credit Card Fees $1,398 $1,678 $1,678 $1,958 $1,958 $2,238 $4,195 $4,195 $4,195 $2,797 $1,678 $0

Total Cost of Revenue $9,904 $11,884 $11,884 $13,865 $13,865 $15,846 $29,711 $29,711 $29,711 $19,807 $11,884 $0

Gross Margin $36,711 $44,053 $44,053 $51,396 $51,396 $58,738 $110,134 $110,134 $110,134 $73,422 $44,053 $0

Gross Margin/Revenue 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% 78.75% N/A

Expenses

Docking Fee $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $0

Business Liability Insurance $850 $850 $850 $850 $850 $850 $850 $850 $850 $850 $850 $0

Telephone/Internet $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $0

Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $0

Supplies $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $0

Marketing & Advertising $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $0

Website Updates $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $0

Facility Maintenance $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $0

Professional Services $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $0

Travel & Entertainment $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $0

Facility Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Repair & Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Depreciation & Amortization $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163 $3,163

Payroll Taxes & Benefits $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695 $2,695

Total Personnel $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167

Total Operating Expenses $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $38,407 $30,024

Profit Before Interest and ($1,696) $5,646 $5,646 $12,989 $12,989 $20,331 $71,726 $71,726 $71,726 $35,015 $5,646 ($30,024)
Taxes
Interest on Loan Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $0 $1,920 $1,920 $4,416 $4,416 $6,912 $24,387 $24,387 $24,387 $11,905 $1,920 ($10,208)

Net Profit ($1,696) $3,727 $3,727 $8,572 $8,572 $13,418 $47,339 $47,339 $47,339 $23,110 $3,727 ($19,816)

Net Profit/Revenue -3.64% 6.66% 6.66% 13.14% 13.14% 17.99% 33.85% 33.85% 33.85% 24.79% 6.66% N/A

21
 YEAR 1 BALANCE SHEET
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Assets

Cash $29,848 $40,638 $47,527 $63,739 $75,474 $96,532 $178,373 $228,875 $279,377 $283,264 $272,245 $233,196

Inventory $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $39,848 $50,638 $57,527 $73,739 $85,474 $106,532 $188,373 $238,875 $289,377 $293,264 $282,245 $243,196

Long-term Assets $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600 $282,600

Accumulated Deprecia- $3,163 $6,325 $9,488 $12,650 $15,813 $18,975 $22,138 $25,300 $28,463 $31,625 $34,788 $37,950
tion
Total Long-term Assets $279,438 $276,275 $273,113 $269,950 $266,788 $263,625 $260,463 $257,300 $254,138 $250,975 $247,813 $244,650

Other Assets

Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Assets $319,286 $326,913 $330,639 $343,689 $352,261 $370,157 $448,836 $496,175 $543,515 $544,239 $530,057 $487,846

Current Liabilities

Accounts Payable $20,982 $24,882 $24,882 $29,359 $29,359 $33,836 $65,176 $65,176 $65,176 $42,790 $24,882 $2,487

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Li- $20,982 $24,882 $24,882 $29,359 $29,359 $33,836 $65,176 $65,176 $65,176 $42,790 $24,882 $2,487
abilities

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $20,982 $24,882 $24,882 $29,359 $29,359 $33,836 $65,176 $65,176 $65,176 $42,790 $24,882 $2,487

Paid-in Capital $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000

Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings ($1,696) $2,031 $5,757 $14,330 $22,902 $36,320 $83,660 $130,999 $178,339 $201,449 $205,175 $185,360

Total Capital $298,304 $302,031 $305,757 $314,330 $322,902 $336,320 $383,660 $430,999 $478,339 $501,449 $505,175 $485,360

Total Liabilities and $319,286 $326,913 $330,639 $343,689 $352,261 $370,157 $448,836 $496,175 $543,515 $544,239 $530,057 $487,846
Capital

Net Worth $298,304 $302,031 $305,757 $314,330 $322,902 $336,320 $383,660 $430,999 $478,339 $501,449 $505,175 $485,360
 YEAR 1 CASH FLOW
Additional Cash Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Received
Revenue $46,615 $55,938 $55,938 $65,261 $65,261 $74,584 $139,844 $139,844 $139,844 $93,230 $55,938 $0

Proceeds from Line-of- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Credit
Proceeds from Bank $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Loan
Owner Contribution $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds From Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

term Assets
Proceeds from Investor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $346,615 $55,938 $55,938 $65,261 $65,261 $74,584 $139,844 $139,844 $139,844 $93,230 $55,938 $0

Total Personnel $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167 $24,167

Bill Payments $0 $20,982 $24,882 $24,882 $29,359 $29,359 $33,836 $65,176 $65,176 $65,176 $42,790 $14,882

Additional Cash Spent

Investor Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Start-up Costs $12,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Loan Repay- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ment
Purchase Inventory $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term $270,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Assets
Dividends Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash Spent $316,767 $45,148 $49,049 $49,049 $53,526 $53,526 $58,003 $89,342 $89,342 $89,342 $66,957 $39,049

Net Cash Flow $29,848 $10,790 $6,889 $16,212 $11,735 $21,058 $81,842 $50,502 $50,502 $3,887 ($11,019) ($39,049)

Cash Balance $29,848 $40,638 $47,527 $63,739 $75,474 $96,532 $178,373 $228,875 $279,377 $283,264 $272,245 $233,196