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 Table of Contents

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

Chart: Highlights...........................................................................................................................1
1.1 Objectives....................................................................................................................................1
1.2 Mission...........................................................................................................................................1
1.3 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Start-up Summary....................................................................................................................2
Table: Start-up..............................................................................................................................2
Table: Start-up Funding.............................................................................................................3
Chart: Start-up..............................................................................................................................4
2.2 Company Ownership................................................................................................................4
3.0 Products............................................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation..............................................................................................................5
Table: Market Analysis................................................................................................................5
Chart: Market Analysis (Pie).....................................................................................................6
4.2 Target Market Segment Strategy.......................................................................................6
4.3 Industry Analysis.......................................................................................................................6
4.3.1 Competition and Buying Patterns...............................................................................6
5.0 Strategy and Implementation Summary.............................................................................7
5.1 Competitive Edge......................................................................................................................7
5.2 Sales Strategy............................................................................................................................7
5.2.1 Sales Forecast....................................................................................................................7
Table: Sales Forecast..............................................................................................................8
Chart: Sales Monthly...............................................................................................................8
Chart: Sales by Year................................................................................................................9
5.3 Milestones....................................................................................................................................9
Table: Milestones..........................................................................................................................9
6.0 Management Summary...............................................................................................................9
6.1 Personnel Plan..........................................................................................................................10
Table: Personnel..........................................................................................................................10
7.0 Financial Plan................................................................................................................................10
7.1 Important Assumptions........................................................................................................10
Table: General Assumptions...................................................................................................10
7.2 Break-even Analysis...............................................................................................................11
Chart: Break-even Analysis....................................................................................................11
Table: Break-even Analysis....................................................................................................11
7.3 Projected Profit and Loss.....................................................................................................12
7.3 Projected Profit and Loss.....................................................................................................12
Chart: Profit Monthly.................................................................................................................12
Chart: Profit Yearly.....................................................................................................................12
Chart: Gross Margin Monthly.................................................................................................13
Chart: Gross Margin Yearly.....................................................................................................13
Table: Profit and Loss................................................................................................................14

Page
 Table of Contents

7.4 Projected Cash Flow...............................................................................................................15

Chart: Cash...................................................................................................................................15
Table: Cash Flow.........................................................................................................................16
7.5 Projected Balance Sheet......................................................................................................17
7.5 Projected Balance Sheet......................................................................................................17
Table: Balance Sheet.................................................................................................................17
7.6 Business Ratios........................................................................................................................18
7.6 Business Ratios........................................................................................................................18
Table: Ratios.................................................................................................................................18
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................5
Table: Cash Flow...................................................................................................................................5
Table: Balance Sheet...........................................................................................................................6
Table: Balance Sheet...........................................................................................................................6

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 Wheelie Deals

1.0 Executive Summary

Wheelie Deals is a wholesale distributor that serves the retail bicycle industry.  Wheelie Deals
will carve out a focused niche within this industry, providing closeouts, last-year models, and
seconds.  Currently, most of the large wholesalers will occasionally have a closeout to offer,
however, the availability of special deals is spotty.  Wheelie Deals will quickly become the #1
source to provide retail shops with above average margins.

Wheelie Deals is lead by Dan Psycle, MBA, a veteran of the bicycle industry.  Dan has modeled
Wheelie Deals off of an already successful wholesale distributor business model and will quickly
gain market share.  Profitability will be reached by month eight with comfortable profits by year
three.

Chart: Highlights

Highlights
$600,000

$500,000

$400,000
Sales

$300,000 Gross Margin

Net Profit
$200,000

$100,000

$0

Year 1 Year 2 Year 3

1.1 Objectives

The objectives for the first three years of operation include:

 To create a company whose goal is to exceed customer's expectations.

 To increase the number of customers served by 20% per year.
 To develop a sustainable start-up business, surviving off its own cash.

1.2 Mission

Wheelie Deals' mission is to create the largest selection of closeout bicycle parts.  We exist to
attract and maintain customers.  When we adhere to this maxim, everything else will fall into
place.  Our services will exceed the expectations of our customers.

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 Wheelie Deals

1.3 Keys to Success

The key to success is unbeatable selection and outstanding customer service.

2.0 Company Summary

Wheelie Deals is a wholesale distributor of closeout bicycle parts.  The warehouse is based in
Albany, Oregon.  Wheelie Deals services the national retail bicycle industry with manufacturer
closeouts, seconds, and last-year model bicycle parts and components.

2.1 Start-up Summary

Wheelie Deals will incur the following start-up costs:

 Pallet racking.
 Pallets.
 Pallet truck.
 Pallet shelving.
 Forklift (used).
 Three computer systems including CD-RW, printer, DSL connection, Microsoft Office, and
QuickBooks Pro.
 Three desks and chairs.
 File cabinets.
 Three phone lines.

Please note that the following items which are considered assets to be used for more than a
year will labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line
depreciation method.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal $1,000
Stationery etc. $100
Brochures $200
Other $0
Total Start-up Expenses $1,300

Start-up Assets
Cash Required $28,950
Start-up Inventory $10,000
Other Current Assets $0
Long-term Assets $24,750
Total Assets $63,700

Total Requirements $65,000

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $1,300
Start-up Assets to Fund $63,700
Total Funding Required $65,000

Assets
Non-cash Assets from Start-up $34,750
Cash Requirements from Start-up $28,950
Additional Cash Raised $0
Cash Balance on Starting Date $28,950
Total Assets $63,700

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
Dan $15,000
Friends and family $40,000
Other $0
Additional Investment Requirement $10,000
Total Planned Investment $65,000

Loss at Start-up (Start-up Expenses) ($1,300)

Total Capital $63,700

Total Capital and Liabilities $63,700

Total Funding $65,000

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 Wheelie Deals

Chart: Start-up

Start-up

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
Expenses Assets Investment Loans

2.2 Company Ownership

Wheelie Deals is an privately held Oregon corporation founded and owned by Dan Psycle.

3.0 Products

Wheelie Deals is a wholesale distributor of bicycles and bicycle components.  Wheelie Deals
specializes in closeouts, last-year models, and seconds.  A partial list of the manufacturers that
Wheelie Deals sells are:

 Shimano
 Campagnolo
 White Industries
 Syncros
 Mavic
 Chris King
 Tioga
 Michelin
 Easton
 Rock Shox
 Answer Racing
 Salsa
 Race Face
 Sweet Parts
 Grip Shift
 Ritchey
 Wellgo

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 Wheelie Deals

4.0 Market Analysis Summary

The retail bicycle market can be broken down into two segments, the independent bicycle shops
and the chain bicycle shops.  Most bike shops are independent, however, there is a growing
trend of bicycle shops being part of a chain.

4.1 Market Segmentation

The two segments that Wheelie Deals will be targeting are:

 Independent bicycle shop. The large majority of bicycle retailers are independently
owned sole proprietorships.  They are usually owned by one person and range from three to
10 employees, depending on the season.

 Chain bicycle shops. Although chains are not the predominant business form, most large
cities (over 200,000 people) have at least one chain serving the community.  Sometimes
the chains are franchises with different owners, other times they are same owners with
multiple stores.

The majority of sales will be to the independent bicycle shops, the reason being most of the
chains have a very uniformed product offering that does not deviate for specials and closeouts. 
The chains tend to value consistency of product offerings at the expense of profit margins.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Independant bicycle shops 9% 12,458 13,579 14,801 16,133 17,585 9.00%
Chain bicycle shops 8% 8,045 8,689 9,384 10,135 10,946 8.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.61% 20,503 22,268 24,185 26,268 28,531 8.61%

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 Wheelie Deals

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Independant bicycle shops

Chain bicycle shops

Other

4.2 Target Market Segment Strategy

Wheelie Deals will target the retail bicycle shops through three means:

 Trade shows. Wheelie Deals will be visible at the two major industry trade shows.  75% of
the retail bicycle shops attend at least one trade show a year.  The shows provide retailers
an opportunity to view upcoming products and chat with a spokesman from the company,
as well place pre-season orders.

 Advertisements. Wheelie Deals will be advertising in Bicycle Retailer, the industry

magazine.  90% of the bicycle shops in America receive a copy of Bicycle Retailer making
the advertising opportunities especially valuable.

 Website. Wheelie Deals will develop a website that includes a current catalog of their
offerings.  This will be the most up-to-date source of product information and availability. 
All advertising activities and trade show presence will highlight the website as an
indispensable source of information.

4.3 Industry Analysis

Currently the industry is served by 10-15 different wholesalers.  Each wholesaler has their own
niche to some degree, but generally they have a fairly wide product offering. Some or most of
the wholesalers have a sale or closeout section, but this typically makes up a small percentage
of their business.  It is well known that the margins in the retail bicycle industry are small; 
30% for bicycles, 75% for components, and 100% for clothing.  Closeouts are a great way to
increase store traffic and significantly helps out the shop's bottom line with higher margins.

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 Wheelie Deals

4.3.1 Competition and Buying Patterns

The major competitors are:

 Seattle Bike Supply: this is a national distributor with several warehouses spread out
across the country.  Seattle sells closeout products, but they make up a small portion of
their business.

 Quality Bicycle Products: this is a relatively high-end bicycle component distributor that
operates on a national scale, however, they only have one warehouse in Minneapolis, MN.

 Riteway: this is a national wholesaler with multiple warehouses.  Riteway has an extensive
product catalog and does offer a decent amount of closeouts, in part due to a minority
holding of the GT bicycle company.

Bicycle retailers tend to favor one type of distributor for certain things.  Some variables that
influence decision is price, availability, shipping time, and available terms.  The retailers will
often use one main wholesaler and aggregate as much as possible into an order to save
shipping costs.

5.0 Strategy and Implementation Summary

Wheelie Deals sales and marketing strategy will be based on occupying an unmet niche in the
retail bicycle wholesale industry.  Wheelie Deals will be a wholesaler only for closeout items. 
This focus will allow Wheelie Deals to stand out relative to the other wholesalers in the industry.

5.1 Competitive Edge

Wheelie Deals' competitive edge is specializing in the closeout niche.  Currently, there are no
wholesalers that are specializing to a large degree.  Everyone carries a fairly wide range of
products.  It is a clear advantage to be focused and only concentrate a specific niche.  By
focusing on closeouts, retail shops can contact Wheelie Deals and always find products that
offer nice margins, uncharacteristic of the bicycle industry. 

The trend of the industry in general is of consolidation.  By offering value-added services such
as closeout items which provide the retailer with better than average margins, Wheelie Deals is
developing value that creates a steady flow of customers.

5.2 Sales Strategy

The sales strategy will be intertwined with the product offerings.  It is of small value to have
great closeouts if there is little demand.  By having a well thought out product selection,
Wheelie Deals will significantly increase the chances of turning a prospective customer into a
sale.  Wheelie Deals will emphasize the popularity and quick turnover of the items that they
stock.  Wheelie Deals will shy away from items that may be a good deal but are a hard sell
because they are likely to sit on the retailers shelf. 

Additionally, Wheelie Deals will have constantly changing inventory which will encourage shops
to frequently inquire with Wheelie Deals.  Lastly, Wheelie Deals will have an email update
service that will be sent to interested shops which is a "hotsheet" that details the current
specials.

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 Wheelie Deals

5.2.1 Sales Forecast

The first month will be used to secure warehouse space, set it up to accept inventory, and hire
personnel.  During the first six weeks relationships will be established with many different
manufactures of parts.  These relationships will be based on Wheelie Deals willingness to take
all of their closeouts.  Typically, the manufacturer will call several distributors and eventually
will find someone to take some, or all of their product.  Wheelie Deals increased willingness to
take closeouts will create an incentive for the manufacturer to contact Wheelie Deals first.

Month three will mark the first decent month of sales.  It is forecasted that sales will steadily

11 12
increase after this month. 

10 Month
9 Month
Table: Sales Forecast

8 Month
7 Month
Sales Forecast

6 Month
Year 1 Year 2 Year 3
5 Month
Sales
Independent bicycle shops $187,239 $335,458 $365,454
4 Month

Chain bicycle shops $121,705 $218,048 $237,545

Total Sales $308,944 $553,506 $602,999
3 Month

Direct Cost of Sales Year 1 Year 2 Year 3

2 Month

Independent bicycle shops $93,620 $167,729 $182,727

Chain bicycle shops $60,853 $109,024 $118,773
1 Month

Subtotal Direct Cost of Sales $154,472 $276,753 $301,500

Month
Month

Chart: Sales Monthly

Sales Monthly

$40,000

$35,000

$30,000

$25,000 Independent bicycle shops

$20,000 Chain bicycle shops

$15,000

$10,000

$5,000

$0

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 Wheelie Deals

Chart: Sales by Year

Sales by Year

$600,000

$500,000

$400,000
Independent bicycle shops

$300,000 Chain bicycle shops

$200,000

$100,000

$0
Year 1 Year 2 Year 3

5.3 Milestones

Wheelie Deals will have several milestones early on:

 Business plan completion.  This will be done as a roadmap for the organization.  This will be
an indispensable tool for the ongoing performance and improvement of the company.
 Warehouse set up.
 Establishment of vendor relationships.
 Profitability.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Business plan completion 1/1/2001 2/1/2001 $0 ABC Marketing
Warehouse set up 1/1/2001 2/1/2001 $0 ABC Department
Establishment of vendor 1/1/2001 2/15/2001 $0 ABC Department
relationships
Profitability 1/1/2001 9/1/2001 $0 ABC Department
Totals $0

6.0 Management Summary

Dan Psycle received a Bachelor of Arts in philosophy from Washington & Jefferson College. After
college he worked in a bicycle shop as a mechanic but quickly moved to sales and finally
manager all in a span of a year.  Dan stayed at the shop for two more additional years, learning
all of the nuances of the bicycle industry.  By this time, Dan felt he had a comfortable grasp of
the bicycle industry and now it was time for more schooling.

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 Wheelie Deals

Dan moved out to Eugene, OR to pursue a MBA from the University of Oregon. A friend of Dan's
family had a wholesale distribution company for plumbing supplies.  Dan spent a week with this
company to gain insight into the wholesale distribution industry in hopes of transferring this
information into a distribution business for the bicycling industry.

6.1 Personnel Plan

Dan will be a full-time employee.  Dan will also hire one administrative person to handle billing,
payroll, and etc.  Two other full-time employees will be used for taking phone orders.  These
two employees will assist a fourth employee with order fulfillment.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Dan $36,000 $40,000 $45,000
Full time administrative $17,600 $19,200 $20,544
Full time sales $17,600 $19,200 $20,544
Full time sales $17,600 $19,200 $20,544
Full time order fullfillment $17,600 $19,200 $20,544
Total People 5 5 5

Total Payroll $106,400 $116,800 $127,176

7.0 Financial Plan

The following sections will outline important financial information.

Please note that under the Ratio table, in percentage of sales grouping, there is a bit of
discrepancy between Wheelie Deals numbers and the industry average.  This is explained by
different accounting procedures for expenses.

7.1 Important Assumptions

The following table details important financial assumptions.

Table: 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 30.00% 30.00% 30.00%
Other 0 0 0

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 Wheelie Deals

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-
even point.

Chart: Break-even Analysis

Break-even Analysis
$12,000

$9,000

$6,000

$3,000

$0

($3,000)

($6,000)

($9,000)

($12,000)

($15,000)
$0 $10,000 $20,000 $30,000 $40,000 $50,000
$5,000 $15,000 $25,000 $35,000 $45,000 $55,000

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $30,819

Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost $15,410

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 Wheelie Deals

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

Chart: Profit Monthly

Profit Monthly
$6,000

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)

($8,000)

($10,000)

($12,000)

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

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 Wheelie Deals

Chart: Profit Yearly

Profit Yearly

$60,000

$40,000

$20,000

$0

($20,000)

Year 1 Year 2 Year 3

Chart: Gross Margin Monthly

Gross Margin Monthly

$22,000

$20,000
$18,000

$16,000
$14,000

$12,000
$10,000

$8,000
$6,000

$4,000
$2,000

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

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 Wheelie Deals

Chart: Gross Margin Yearly

Gross Margin Yearly

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

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 Wheelie Deals

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $308,944 $553,506 $602,999
Direct Cost of Sales $154,472 $276,753 $301,500
Other Production Expenses $0 $0 $0
Total Cost of Sales $154,472 $276,753 $301,500

Gross Margin $154,472 $276,753 $301,500

Gross Margin % 50.00% 50.00% 50.00%

Expenses
Payroll $106,400 $116,800 $127,176
Sales and Marketing and Other Expenses $2,400 $2,400 $2,400
Depreciation $4,956 $4,956 $4,956
Utilities $3,600 $3,600 $3,600
Insurance $3,600 $3,600 $3,600
Rent $48,000 $48,000 $48,000
Payroll Taxes $15,960 $17,520 $19,076
Other $0 $0 $0

Total Operating Expenses $184,916 $196,876 $208,808

Profit Before Interest and Taxes ($30,444) $79,877 $92,691

EBITDA ($25,488) $84,833 $97,647
Interest Expense $0 $0 $0
Taxes Incurred $0 $23,963 $27,807

Net Profit ($30,444) $55,914 $64,884

Net Profit/Sales -9.85% 10.10% 10.76%

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 Wheelie Deals

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Chart: Cash

Cash

$24,000

$20,000

$16,000

$12,000
Net Cash Flow
$8,000
Cash Balance
$4,000

$0

($4,000)

($8,000)
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

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 Wheelie Deals

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $308,944 $553,506 $602,999
Subtotal Cash from Operations $308,944 $553,506 $602,999

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 $308,944 $553,506 $602,999

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $106,400 $116,800 $127,176
Bill Payments $214,461 $395,173 $390,806
Subtotal Spent on Operations $320,861 $511,973 $517,982

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $320,861 $511,973 $517,982

Net Cash Flow ($11,917) $41,533 $85,017

Cash Balance $17,033 $58,566 $143,583

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 Wheelie Deals

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $17,033 $58,566 $143,583
Inventory $18,253 $49,200 $32,592
Other Current Assets $0 $0 $0
Total Current Assets $35,287 $107,766 $176,175

Long-term Assets
Long-term Assets $24,750 $24,750 $24,750
Accumulated Depreciation $4,956 $9,912 $14,868
Total Long-term Assets $19,794 $14,838 $9,882
Total Assets $55,081 $122,604 $186,057

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $21,824 $33,434 $32,003
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $21,824 $33,434 $32,003

Long-term Liabilities $0 $0 $0
Total Liabilities $21,824 $33,434 $32,003

Paid-in Capital $65,000 $65,000 $65,000

Retained Earnings ($1,300) ($31,744) $24,170
Earnings ($30,444) $55,914 $64,884
Total Capital $33,256 $89,170 $154,054
Total Liabilities and Capital $55,081 $122,604 $186,057

Net Worth $33,256 $89,170 $154,054

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 Wheelie Deals

7.6 Business Ratios

The following table outlines some of the more important ratios from the Sporting and
Recreational Goods and Supplies Merchant Wholesale  industry. The final column, Industry
Profile, details specific ratios based on the industry as it is classified by the NAICS code,
423910.

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 79.16% 8.94% 11.50%

Percent of Total Assets

Inventory 33.14% 40.13% 17.52% 28.00%
Other Current Assets 0.00% 0.00% 0.00% 29.00%
Total Current Assets 64.06% 87.90% 94.69% 88.70%
Long-term Assets 35.94% 12.10% 5.31% 11.30%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 39.62% 27.27% 17.20% 38.00%

Long-term Liabilities 0.00% 0.00% 0.00% 9.00%
Total Liabilities 39.62% 27.27% 17.20% 47.00%
Net Worth 60.38% 72.73% 82.80% 53.00%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 50.00% 50.00% 50.00% 23.00%
Selling, General & Administrative Expenses 59.85% 39.90% 39.24% 14.80%
Advertising Expenses 0.39% 0.22% 0.20% 0.70%
Profit Before Interest and Taxes -9.85% 14.43% 15.37% 2.00%

Main Ratios
Current 1.62 3.22 5.50 2.19
Quick 0.78 1.75 4.49 1.22
Total Debt to Total Assets 39.62% 27.27% 17.20% 47.00%
Pre-tax Return on Net Worth -91.54% 89.58% 60.17% 5.30%
Pre-tax Return on Assets -55.27% 65.15% 49.82% 10.10%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -9.85% 10.10% 10.76% n.a
Return on Equity -91.54% 62.70% 42.12% n.a

Activity Ratios
Inventory Turnover 10.08 8.21 7.37 n.a
Accounts Payable Turnover 10.83 12.17 12.17 n.a
Payment Days 27 25 31 n.a
Total Asset Turnover 5.61 4.51 3.24 n.a

Debt Ratios
Debt to Net Worth 0.66 0.37 0.21 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $13,462 $74,332 $144,172 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.18 0.22 0.31 n.a
Current Debt/Total Assets 40% 27% 17% n.a

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 Wheelie Deals

Acid Test 0.78 1.75 4.49 n.a

Sales/Net Worth 9.29 6.21 3.91 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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 Appendix

Table: Sales Forecast

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
Sales
Independent bicycle shops 0% $0 $3,455 $8,544 $12,457 $15,478 $17,454 $18,854 $25,855 $22,787 $21,987 $20,254 $20,114
Chain bicycle shops 0% $0 $2,246 $5,554 $8,097 $10,061 $11,345 $12,255 $16,806 $14,812 $14,292 $13,165 $13,074
Total Sales $0 $5,701 $14,098 $20,554 $25,539 $28,799 $31,109 $42,661 $37,599 $36,279 $33,419 $33,188

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Independent bicycle shops $0 $1,728 $4,272 $6,229 $7,739 $8,727 $9,427 $12,928 $11,394 $10,994 $10,127 $10,057
Chain bicycle shops $0 $1,123 $2,777 $4,049 $5,030 $5,673 $6,128 $8,403 $7,406 $7,146 $6,583 $6,537
Subtotal Direct Cost of Sales $0 $2,850 $7,049 $10,277 $12,769 $14,400 $15,555 $21,330 $18,799 $18,139 $16,710 $16,594

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 Appendix

Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Dan 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Full time administrative 0% $0 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Full time sales 0% $0 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Full time sales 0% $0 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Full time order fullfillment 0% $0 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Total People 1 5 5 5 5 5 5 5 5 5 5 5

Total Payroll $3,000 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400

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 Appendix

Table: General Assumptions

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $0 $5,701 $14,098 $20,554 $25,539 $28,799 $31,109 $42,661 $37,599 $36,279 $33,419 $33,188
Direct Cost of Sales $0 $2,850 $7,049 $10,277 $12,769 $14,400 $15,555 $21,330 $18,799 $18,139 $16,710 $16,594
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $2,850 $7,049 $10,277 $12,769 $14,400 $15,555 $21,330 $18,799 $18,139 $16,710 $16,594

Gross Margin $0 $2,850 $7,049 $10,277 $12,769 $14,400 $15,555 $21,330 $18,799 $18,139 $16,710 $16,594
Gross Margin % 0.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%

Expenses
Payroll $3,000 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400
Sales and Marketing and Other $100 $700 $100 $100 $100 $100 $100 $100 $100 $700 $100 $100
Expenses
Depreciation $413 $413 $413 $413 $413 $413 $413 $413 $413 $413 $413 $413
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Payroll Taxes 15% $450 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410 $1,410
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $8,563 $16,523 $15,923 $15,923 $15,923 $15,923 $15,923 $15,923 $15,923 $16,523 $15,923 $15,923

Profit Before Interest and Taxes ($8,563) ($13,673) ($8,874) ($5,646) ($3,154) ($1,523) ($368) $5,407 $2,876 $1,616 $787 $671
EBITDA ($8,150) ($13,260) ($8,461) ($5,233) ($2,741) ($1,110) $45 $5,820 $3,289 $2,029 $1,200 $1,084
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($8,563) ($13,673) ($8,874) ($5,646) ($3,154) ($1,523) ($368) $5,407 $2,876 $1,616 $787 $671
Net Profit/Sales 0.00% -239.84% -62.95% -27.47% -12.35% -5.29% -1.18% 12.68% 7.65% 4.46% 2.35% 2.02%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received

Cash from Operations

Cash Sales $0 $5,701 $14,098 $20,554 $25,539 $28,799 $31,109 $42,661 $37,599 $36,279 $33,419 $33,188
Subtotal Cash from Operations $0 $5,701 $14,098 $20,554 $25,539 $28,799 $31,109 $42,661 $37,599 $36,279 $33,419 $33,188

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $5,701 $14,098 $20,554 $25,539 $28,799 $31,109 $42,661 $37,599 $36,279 $33,419 $33,188

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $3,000 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 $9,400
Bill Payments $172 $5,202 $6,945 $13,969 $19,994 $21,644 $22,324 $23,297 $33,405 $22,192 $24,027 $21,291
Subtotal Spent on Operations $3,172 $14,602 $16,345 $23,369 $29,394 $31,044 $31,724 $32,697 $42,805 $31,592 $33,427 $30,691

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $3,172 $14,602 $16,345 $23,369 $29,394 $31,044 $31,724 $32,697 $42,805 $31,592 $33,427 $30,691

Net Cash Flow ($3,172) ($8,901) ($2,247) ($2,815) ($3,855) ($2,245) ($615) $9,964 ($5,206) $4,687 ($8) $2,497

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 Appendix
Cash Balance $25,778 $16,877 $14,630 $11,815 $7,959 $5,715 $5,100 $15,064 $9,858 $14,545 $14,536 $17,033

Table: Balance Sheet

Pro Forma 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
Assets Starting Balances

Current Assets
Cash $28,950 $25,778 $16,877 $14,630 $11,815 $7,959 $5,715 $5,100 $15,064 $9,858 $14,545 $14,536 $17,033
Inventory $10,000 $10,000 $7,150 $7,754 $11,305 $14,046 $15,840 $17,110 $23,463 $20,679 $19,953 $18,381 $18,253
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $38,950 $35,778 $24,027 $22,383 $23,120 $22,006 $21,554 $22,210 $38,527 $30,537 $34,498 $32,917 $35,287

Long-term Assets
Long-term Assets $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750 $24,750
Accumulated Depreciation $0 $413 $826 $1,239 $1,652 $2,065 $2,478 $2,891 $3,304 $3,717 $4,130 $4,543 $4,956
Total Long-term Assets $24,750 $24,337 $23,924 $23,511 $23,098 $22,685 $22,272 $21,859 $21,446 $21,033 $20,620 $20,207 $19,794
Total Assets $63,700 $60,115 $47,951 $45,894 $46,218 $44,691 $43,826 $44,069 $59,973 $51,570 $55,118 $53,124 $55,081

Liabilities and Capital 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 Liabilities
Accounts Payable $0 $4,978 $6,486 $13,304 $19,273 $20,900 $21,559 $22,171 $32,667 $21,388 $23,319 $20,539 $21,824
Current Borrowing $0 $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 $0
Subtotal Current Liabilities $0 $4,978 $6,486 $13,304 $19,273 $20,900 $21,559 $22,171 $32,667 $21,388 $23,319 $20,539 $21,824

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $4,978 $6,486 $13,304 $19,273 $20,900 $21,559 $22,171 $32,667 $21,388 $23,319 $20,539 $21,824

Paid-in Capital $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Retained Earnings ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300) ($1,300)
Earnings $0 ($8,563) ($22,236) ($31,110) ($36,756) ($39,909) ($41,433) ($41,801) ($36,394) ($33,518) ($31,901) ($31,115) ($30,444)
Total Capital $63,700 $55,137 $41,464 $32,590 $26,944 $23,791 $22,267 $21,899 $27,306 $30,182 $31,799 $32,585 $33,256
Total Liabilities and Capital $63,700 $60,115 $47,951 $45,894 $46,218 $44,691 $43,826 $44,069 $59,973 $51,570 $55,118 $53,124 $55,081

Net Worth $63,700 $55,137 $41,464 $32,590 $26,944 $23,791 $22,267 $21,899 $27,306 $30,182 $31,799 $32,585 $33,256

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