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Production Company Business Plan

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BPS - Production

Company

10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153


http://upmetrics.co/ info@upmetrics.co

Business
Plan

John Doe

Telling stories in the best way possible


Table of Contents

Executive summary 4
Market Validation 5
Objectives 5
Short Term (1 -3 Years) 5
Long Term (3-5 years) 5
Mission statement 6
Unique Selling Proposition 6
Financial Highlights 6
Black Screen Productions - 3 Year Financial Highlights 7
Business overview 8
Company Ownership/Legal Entity 9
Location 9
Interior Operating Facilities 9
Hours of Operation 10
Startup summary 10
Products & Services 11
Media Production 12
Media Distribution 12
Market Analysis 13
Market segmentation 14
Market Trends 14
Target market 14
Competitive Advantage 14
SWOT analysis 16

Strategy & implementation 18


Target Market Strategy 19
Distribution Strategy 19
Market Size 19
Positioning Statement 20
Sales strategy 20
Online Marketing Channels 20
Offline Marketing Channels 20
Pricing strategy 21
Operational Plan 22

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Organization chart 23
Chart 23
Alan Woods 23
Jane Doe 23
Amanda Doe 23
Jane Green 23
Management Team 23
Personnel Plan 24
Hiring plan 24
JANE DOE 24
AMANDA DOE 24
JANE GREEN 25
Milestones 26
BLACK SCREEN PRODUCTIONS 26
Financial plan 27
Important Assumptions 28
Break-even analysis 28
Projected Profit and Loss 28
Profit Yearly 30
Gross Margin Yearly 30
Projected Cash Flow 31
Projected Balance Sheet 32
Business Ratios 33

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1.

Executive summary
Market Validation
Objectives
Mission statement
Unique Selling Proposition
Financial Highlights

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 4 / 35


Black Screen Productions Inc (BSP) is a US-based media production and
distribution company headed by star producer and director Mr. Alan Woods.
The company has three distinct business divisions. Initial operations of the
company will include media production and media distributions activities which
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enlist (i) developing original content for film and television through co-

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Market Validation

In the US, media production industry revenue is expected to expand at a


compound annual rate of 4.1% to £4 billion, despite declining by a forecast of
13.5% in the current year. The US Film Tax Relief program has appealed to
film producers and contributed to the expansion of US studio capacity.
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Recently agreed co-production treaties are likely to support the industry over

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Objectives

To begin commercial operations in LA by Q1 2021

To build a market reputation for quality hygienic products and services


during the forecast period.
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To achieve a turnover of over $100,000 in Year 1

Short Term (1 -3 Years)


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To expand by opening additional store locations across the country


during the forecast period

To reduce operating expenses and aim to grow profitability to more than


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35% by Year 5

Long Term (3-5 years)


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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 5 / 35


Mission statement

Black Screen Productions aims to create a bridge between the leading supplier
and consumer markets in the global film and TV industry through acquisition,
original production, investment, and talent sourcing whilst providing an avenue
for driving film and TV exports for the US.
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Unique Selling Proposition

Black Screen Productions vertically integrates production, distribution, and


exhibition of films and other media through a combination of in-house talent,
co-production agreements, and partnerships with leading China-based media
exhibitors bringing the ability to scale operations in an industry that has thus far
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struggled to combine the three distinct segments of theTofilm and media

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Financial Highlights

The company envisions raising an equity investment of $50,000 through long-


term borrowings, which will be used for the setup and launch of the salon in the
US. The company expects to steadily grow its revenues through active efforts
in marketing, networking, excellent customer service, and quality products.
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Meanwhile, the company will establish a healthy net profit ratio that boasts

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 6 / 35


Black Screen Productions - 3 Year Financial Highlights

Sales Gross Margin Net Profit


750.00k

500.00k

250.00k

0
2021-22 2022-23 2023-24

Financial Year Sales Gross Margin Net Profit

2021-22 360,723 114,289 13,038

2022-23 538,041 216,784 44,360

2023-24 665,012 269,869 65,638

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 7 / 35


2.

Business overview
Company Ownership/Legal Entity
Location
Interior Operating Facilities
Hours of Operation
Startup summary

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 8 / 35


The United States’ dominance in the global film industry is evident. Black
Screen Productions seeks to carve a new path where the company is not
impacted by global moguls by exploring and foraying into a promising yet
complex market.
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China is a global superpower home to the second-largest economy in the world
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Company Ownership/Legal Entity

The company will be registered as a limited liability entity with the Department
of State. Further, since the company envisions setting up operations in LA, it
will also register with the local county. The business will be wholly owned and
Managed by Founder Mr. Alan Woods, who will also be the principal investor of
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the business.

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Location

BSP will operate from the city of the American Film industry, LA. Los Angeles
can be a tough city for entrepreneurs to establish and make a mark.
Predominantly due to the thriving business landscape which has given rise to a
competitive environment. LA has a great technology community scene. There
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are meetups, events, and conferences for people to connect across industries.

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Interior Operating Facilities

The company will begin operations from a rented office space in a suburban
region in LA. Being entirely online, the company does not have to be located in
a high-traffic area and can reduce rental costs by having an office away from
the commercial hub.
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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 9 / 35


Hours of Operation

BSP's business is entirely online working on a subscription basis. Hence, the


company does not have standard operating hours.

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Startup summary

The founding team will infuse a capital sum of $50,000 through long-term
borrowings to meet the company’s start-up requirements. The start-up
expenses are estimated at $18,500, primarily consisting of interior renovation,
rent, and advertisement expenses. A further sum of $15,000 will be used to
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purchase initial stocks, furniture, computer, and other podcast equipment.

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 10 / 35


3.
Products &
Services
Media Production
Media Distribution

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 11 / 35


Black Screen Productions will aim at vertically integrating all aspects of film
and television from production to exhibition. While production and distribution of
the films will be carried out in-house by the company, exhibitions of the media
will take place in collaboration with leading Chinese sales companies who have
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an established presence in the company’s consumer market.

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Media Production

Founder Alan Woods along with his co-founding team comprising of a director
and distributor will produce original feature films, TV shows, and other media
productions for screening and distribution in the Chinese and East Asian
markets. Black Screen Productions will seek to increase the share of co-
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productions in the sector. The company will leverage the Film Coproduction

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Media Distribution

Black Screen productions will acquire distribution rights of US-based films, TV


shows, and other media content for the purpose of screening and distribution in
China through alliances and partnerships. Original films and media created by
the company, along with remakes of US-based content, will also be distributed
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by the company. Black Screen Productions will distribute US media on popular

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 12 / 35


4.

Market Analysis
Market segmentation
Market Trends
Target market
Competitive Advantage

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 13 / 35


The U.S. media and entertainment (M&E) industry is the largest in the world. At
$717 billion, it represents a third of the global M&E industry, and it includes
motion pictures, television programs, and commercials, streaming content,
music, and audio recordings, broadcast, radio, book publishing, video games,
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and ancillary services and products. The U.S. industry To is unlock
expected to reach

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Market segmentation

The U.S. filmed entertainment industry encompasses films, movie theaters, TV


subscriptions, and electronic home video production, and distributionand
consumption. Box office receipts are expected to surpass $11 billion in 2019
(this figure includes projected cinema advertising earnings of $991 million). TV
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and home video earnings are expected to reach $96 billion in 2019. Due to the

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Market Trends

The COVID-19 outbreak helps to understand what 2020 meant for filmmaking
in the United States. But that year will also be remembered for another key
event: it was when China surpassed the U.S. and Canada in box office
revenue. The outcome partially results from China counting online ticketing
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fees as an indissociable part of their figure. Regardless, the American and 

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Target market

China overtook the US to become the largest movie market in 2020. The
pandemic that shut American film theatres for longer than their Chinese peers
played a crucial role in helping China overtake the US market. Chinese viewers
have pivoted to favor local language films that show greater sensitivity towards
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portrayals of China and its people. China’s dominance To
in unlock
the industry is also

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Competitive Advantage
[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 14 / 35
A close look at the competitors reveals that no company offers services that
are aligned with Play Productions. Hanway Films’ offering is similar to that of
the company; however, their focus in the international market and not China,
both of which are not homogenous and require a different approach. The other
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two competitors, Made in New York and C Media, haveToaunlock
keen help
focus on the

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 15 / 35


5.

SWOT analysis

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 16 / 35


A SWOT (Strength, Weakness, Opportunity, and Threat) analysis is a useful
tool for businesses to evaluate their position in the market against the potential
internal and external factors that could assist or jeopardize their operations and
existence. A SWOT has been conducted for BSP and is presented below.
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Strengths Weaknesses

Personalized podcasts Highly competitive market


Thriving industry Limited market understanding
Lucrative business location
Scalable pricing strategy and business
model

S W
Opportunities Threats

Collaboration with leading film Competitors eroding the market


companies Low barriers to entry
Increased Adoption within the Chinese Competitors poaching B2B clients
market
High growth potential market in the US
Export capabilities

O T

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 17 / 35


6.
Strategy &
implementation
Target Market Strategy
Distribution Strategy
Positioning Statement
Sales strategy
Pricing strategy

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 18 / 35


Target Market Strategy

China overtook the US to become the largest movie market in 2020. The
pandemic that shut American film theatres for longer than their Chinese peers
played a crucial role in helping China overtake the US market. Chinese viewers
have pivoted to favor local language films that show greater sensitivity towards
help try Upmetrics! 
portrayals of China and its people. China’s dominance To
in unlock
the industry is also

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Distribution Strategy

Black Screen Productions will engage in the distribution of its motion picture
productions via partner distributors in China. The company will not engage in
direct sales and exhibition of its productions. However, marketing and
spreading awareness of its projects will fall within the purview of the company.
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To this end, the company will study the patterns that influence the choices of

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Market Size

Available Market
Market in the US 14M

Served Market
Market is LA 7M

Target Market
5% of Served Market 3M

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 19 / 35


Positioning Statement

Black Screen Productions is a motion picture production and distribution


company. The company’s success is driven by its projects. Hence, marketing
and promotion activities will be carried out to build awareness of its projects
and not the company itself. The first step towards achieving a sizeable
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viewership for its productions will be to understand moviegoers in China and

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Sales strategy

Increased hype of production will then encourage distributors in China to


engage with the company and buy rights for the production.

Hence, the company’s sales funnel will comprise of:


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View Paid video ad campaigns
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Online Marketing Channels

  
Electronic Direct Mail Social Media Google Ad Campaigns
Marketing Millennials and consumers in The advertising will target
BSP will mail professionally general spend a considerable specific keywords relevant to
designed materials with its time browsing social media BSP's offering
value proposition to these platforms. Reaching to them
companies and provide quotes through this channel will be and
for promotion merchandise effective way to capture
printing services. attention and position its
services.

Offline Marketing Channels

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 20 / 35


 
Networking Pop-Up Store
Participate in leading film exhibitions. Offer The company will also hold pop-up stalls at
sneak peak into the screening. The company will consumer exhibitions.
also keep a record of visitors to their stalls as
leads for its email marketing campaigns.

Pricing strategy

Production companies charge $3,000 to $50,000 depending upon the


production project. The average fee is $26,500. The distribution cost is around
$1,000 for each screen. The average distribution income is estimated at
$50,000. Talent sourcing will generate 10% income on each successful case
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in a media project. The average income from a media project is estimated at

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 21 / 35


7.

Operational Plan
Management Team
Personnel Plan
Milestones

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 22 / 35


Black Screen Productions envisions hiring a producer and a sales executive to
handle partner liaisons in its first year of operation. Script development
personnel and an operations assistant will be brought on board in the second
year to support the company’s growing activities. The workforce in the
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production department is strengthened in the subsequent years with the

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Organization chart

Alan Woods
Managing Director

Jane Doe Amanda Doe Jane Green


Producer Script Development Operations

Management Team

Mr. Woods will serve as the Managing Director of Black Screen Productions. A
highly motivated and dynamic individual, Thomas boasts vast experience in the
field of aesthetics having spent a career spanning 14 years essaying various
white-collar roles for companies across America. His ability to multi-task and
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expertly weave through operational pitfalls equips him To
with exceptional

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[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 23 / 35


Personnel Plan

The company plans to create six full-time equivalent jobs in addition to the
management team within the first three years of operations. Salaries for each
employee are in line with the industry’s benchmark.

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Hiring plan

20 5 25
Filled Hired Open

Group By Department Position Filled Time of Hire Time of Start Filled On Time

Producer 3 of 23 30 days 21 days 80%

Script Development 4 of 15 158 days 127 days 0%

Operations 5 of 20 149 days 136 days 100%

JANE DOE
Producer - Jane@example.com
Ability to cope with fast-paced and pressured work, accuracy, strong attention to
detail and a strong analytical mind, ability to notice patterns within statistics, an
interest in psychology and behavior, good organizational skills, excellent (spoken
and written) communication skills.

AMANDA DOE
Script Development- Amanda@example.com
Preferably bilingual with ability to speak English and French fluently, problem-
solving, ability to convert leads into sales, active listener, patience, and
understanding of the company’s products and services. Additionally, skills in social
media marketing, search engine optimization, newsletter marketing, other forms of
digital marketing will also be required

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 24 / 35


JANE GREEN
operations- Jane@example.com
Excellent verbal skills and a knack for cosmetic products, strong written and verbal
communication skills, skilled in customer interaction, and a qualified psychologist

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 25 / 35


Milestones

BLACK SCREEN PRODUCTIONS

Establish
BSP will rent a office space in
suburban LA alongside
developing a fully optimized and
informative website. During this
YEAR 1 period, the company will also
develop initial production licenses.
Marketing activities will also begin
during this stage to build
awareness and launch the brand
into the market.

Gain Market Traction


The company will begin
expanding its services beyond LA Year 2
to cover other regions around
California.

Diversify
Having externally established the
Year 3 business, the company will begin
internally expanding its range of
products

Grow
Begin expanding across the US
Year 4
Consider market expansion
beyond US

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 26 / 35


8.

Financial plan
Important Assumptions
Break-even analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 27 / 35


If you are going to start your own production company business, then make
sure you will pay special attention to your financial plan. Your financial plan
should include the details about how well you manage your incomes and
expenses, and how will you recover investments from the profit, etc. So, you
should focus on your financial plan if you want to expand your business
To unlock on a 
help try Upmetrics!
large scale.

Important Assumptions
The company’s financial projections are forecasted on the basis of the following assumptions. These
assumptions are quite conservative and are also expected to show deviation but to a limited level such
that the company’s major financial strategy will not be affected.

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10,00% 11,00% 12,00%

Long-term Interest Rate 10,00% 10,00% 10,00%

Tax Rate 26,42% 27,76% 28,12%

Other 0 0 0

Break-even analysis

Monthly Units Break-even 5530

Monthly Revenue Break-even $159 740

Assumptions:

Average Per-Unit Revenue $260,87

Average Per-Unit Variable Cost $0,89

Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss

Year 1 Year 2 Year 3

Sales $309 069 $385 934 $462 799

Direct Cost of Sales $15 100 $19 153 $23 206

Other $0 $0 $0

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 28 / 35


Year 1 Year 2 Year 3

TOTAL COST OF SALES $15 100 $19 153 $23 206

Gross Margin $293 969 $366 781 $439 593

Gross Margin % 94,98% 94,72% 94,46%

Expenses

Payroll $138 036 $162 898 $187 760

Sales and Marketing and Other Expenses $1 850 $2 000 $2 150

Depreciation $2 070 $2 070 $2 070

Leased Equipment $0 $0 $0

Utilities $4 000 $4 250 $4 500

Insurance $1 800 $1 800 $1 800

Rent $6 500 $7 000 $7 500

Payroll Taxes $34 510 $40 726 $46 942

Other $0 $0 $0

Total Operating Expenses $188 766 $220 744 $252 722

Profit Before Interest and Taxes $105 205 $146 040 $186 875

EBITDA $107 275 $148 110 $188 945

Interest Expense $0 $0 $0

Taxes Incurred $26 838 $37 315 $47 792

Net Profit $78 367 $108 725 $139 083

Net Profit/Sales 30,00% 39,32% 48,64%

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Profit Yearly

Profit
15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Profit

Year1 10,000

Year2 12,000

Year3 14,000

Gross Margin Yearly

Gross Margin
15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Gross Margin

Year1 10,000

Year2 12,000

Year3 14,000

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 30 / 35


Projected Cash Flow

Cash Received Year 1 Year 2 Year 3

Cash from Operations

Cash Sales $40 124 $45 046 $50 068

Cash from Receivables $7 023 $8 610 $9 297

SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359

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 $47 143 $53 651 $55 359

Expenditures from Operations

Cash Spending $21 647 $24 204 $26 951

Bill Payments $13 539 $15 385 $170 631

SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582

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 $35 296 $35 489 $43 882

Net Cash Flow $11 551 $13 167 $15 683

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 31 / 35


Cash Received Year 1 Year 2 Year 3

Cash Balance $21 823 $22 381 $28 239

Projected Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets

Cash $184 666 $218 525 $252 384

Accounts Receivable $12 613 $14 493 $16 373

Inventory $2 980 $3 450 $3 920

Other Current Assets $1 000 $1 000 $1 000

TOTAL CURRENT ASSETS $201 259 $237 468 $273 677

Long-term Assets

Long-term Assets $10 000 $10 000 $10 000

Accumulated Depreciation $12 420 $14 490 $16 560

TOTAL LONG-TERM ASSETS $980 $610 $240

TOTAL ASSETS $198 839 $232 978 $267 117

Current Liabilities

Accounts Payable $9 482 $10 792 $12 102

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102

Long-term Liabilities $0 $0 $0

TOTAL LIABILITIES $9 482 $10 792 $12 102

Paid-in Capital $30 000 $30 000 $30 000

Retained Earnings $48 651 $72 636 $96 621

Earnings $100 709 $119 555 $138 401

TOTAL CAPITAL $189 360 $222 190 $255 020

TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117

Net Worth $182 060 $226 240 $270 420

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 32 / 35


Business Ratios

Year 1 Year 2 Year 3 Industry profile

Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%

Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Main Ratios

Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 33 / 35


Year 1 Year 2 Year 3 Industry profile

Activity Ratios

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital $120 943 $140 664 $160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.

[YEAR ] Bus ines s Plan | BPS - Pr oduc tion C ompany 34 / 35


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