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TTR Data Recovery

Executive Summary

Data recovery is an often overlooked option when data loss has occurred.  TTR Data Recovery Technologies has the expert technicians, knowledgeable customer support staff, and the laboratory facility to solve most disaster recovery crisis quickly, efficiently, and cost-effectively.

It is estimated that, last year, companies lost data valued at $2 billion dollars through mechanical or electrical failure, virus activity, system malfunctions, accidental erasure or water, fire or smoke damage.  TTR Data Recovery Technologies can recover mission critical data when all other conventional methods and experts have failed.

TTR Data Recovery Technologies, depending on the extent of the damage, will get the data back to life in 24 to 48 hours.  For time-sensitive data loss situations, a direct modem-to-modem transfer or high-speed T1 FTP data transfer will be available by way of the Internet.

TTR Data Recovery Technologies has proprietary recovery technology that is not operation system dependant.  From DOS to Novell to Macintosh to UNIX, the company has the technology and expertise to retrieve critical data. TTR Data Recovery Technologies’ engineers have a commitment to innovation, and have developed in-house software and hardware solutions to retrieve the maximum amount of data.

Dan Whitaker, co-owner of TTR Data Recovery Technologies, has been a professional in the field of data recovery for fifteen years.  He has recovered data for Fortune 500 companies, governments, military, and a number of the country’s leading educational and research institutions. 

1.1 Objectives

  • Establish TTR Data Recovery as the national leader in critical data retrieval.
  • Increase the number of Value Added Resellers (VARs) offering recovery services through TTR Data Recovery by 20% over the next two years.

1.2 Keys to Success

The keys to success in TTR Data Recovery Technologies are:

  1. Offering innovative solutions to data retrieval.
  2. Reliable and timely solutions. Get the data back to the company in two days at the latest.
  3. A reliable administration that is ready to serve customers, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.
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Company Summary

TTR Data Recovery Technologies is a new company offering recovery solutions for data loss on computers, servers, and any operating media.   The company will focus on three target customers:

  • Value added resellers (VAR);
  • Company IT units;
  • Public institution IT units.

Dan Whitaker is creating TTR Data Recovery Technologies with fifteen years of experience in the field.  His insight and management skill will be instrumental in establishing the company as an industry giant.

TTR Data Recovery Technologies has proprietary recovery technology that is not operation system dependant.  From DOS to Novell to Macintosh to UNIX, the company has the technology and expertise to retrieve critical data.

2.1 Start-up Summary

The start-up cost of TTR Data Recovery Technologies will consist primarily of computer and data restoration equipment. Dan Whitaker will invest $100,000.   A silent partner will invest $150,000. Dan will also secure a $100,000 loan.

The $80,000 in equipment listed in the start-up table is for clean room equipment (air filtering system equipment), data retrieval equipment for hard drives to store recovered data and hardware fixtures to examine and clean hard drives.

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Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $800
Brochures $2,000
Insurance $1,000
Rent $3,000
Expensed Equipment $80,000
Total Start-up Expenses $87,800
Start-up Assets
Cash Required $162,200
Other Current Assets $0
Long-term Assets $100,000
Total Assets $262,200
Total Requirements $350,000
Start-up Funding
Start-up Expenses to Fund $87,800
Start-up Assets to Fund $262,200
Total Funding Required $350,000
Assets
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $162,200
Additional Cash Raised $0
Cash Balance on Starting Date $162,200
Total Assets $262,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Dan Whitaker $100,000
Silent Partner $150,000
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($87,800)
Total Capital $162,200
Total Capital and Liabilities $262,200
Total Funding $350,000

2.2 Company Ownership

Dan Whitaker, co-owner of TTR Data Recovery Technologies, has been a professional in the field of data recovery for latest fifteen years. The company will be set up as a Limited Partnership.  Dan Whitaker will share ownership with a silent partner.

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Services

TTR Data Technologies recovers a client’s data from tape backups, hard drives, optical media, removable media and anything in between, getting data when all others fail. Remote file structure repair services are also offered.

Depending on the extent of the damage, TTR Data Recovery Technologies will get the data back to life in 24 to 48 hours.  For time-sensitive data loss situations, a direct modem-to-modem transfer or high-speed T1 FTP data transfer is available by way of the Internet.

TTR Data Recovery Technologies has proprietary recovery technology that is not operation system dependant.  From DOS to Novell to Macintosh to UNIX, the company has the technology and expertise to retrieve critical data.

In-house software and hardware solutions have been developed by TTR Data Recovery Technologies’ engineers to retrieve the maximum amount of data from damaged data storage mediums.

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Market Analysis Summary

Data recovery is a $150 million specialty industry that is growing by 10% each year. As more and more companies realize that there are solutions to data recovery that can save millions of dollars, the industry will grow even faster.

An important element in the growth of the industry is the how often most companies need recovery services. Recent surveys indicate that recovery services are required, on average, two to five times a year.  Consequently, most companies don’t invest in personnel with data recovery expertise.

In a number of respects, recovery services are important to a company only after data has been destroyed.  This offers an opportunity and a disadvantage to firms like TTR Data Recovery Technologies. 

When companies contact TTR, they want the problem solved yesterday.  When TTR contacts the company concerning future failures, companies are hesitant to invest in preventative actions. This will change in the future.  The marketing goal of TTR Data Recovery Technologies is to successfully sell preventative recovery programs to companies.

4.1 Market Segmentation

ERR Data Recovery Technologies will focus on three customer groups:

  • Value Added Resellers (VAR): This group is the critical supplier of products and services to almost every industry.  Data recovery services can quickly become a strong profit center for VARs serving their markets. The VAR would sell the service to the customer and TTR Data Recovery Technologies would perform the work.
  • Company IT Units: These units manage the company servers and networking systems.  Clearly, when data is lost, it is their job to retrieve it quickly. TTR Data Recovery Technologies would be an invaluable resource when recovering data.
  • Public Institution IT Units: These units manage the research and educational institutions’ servers and networking systems. Years of research or institution data can be lost.  Typically, these institution don’t have the expertise in-house to solve these problems.
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Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Value Added Resellers 20% 20,000 24,000 28,800 34,560 41,472 20.00%
Company IT Units 10% 100,000 110,000 121,000 133,100 146,410 10.00%
Public IT Units 10% 30,000 33,000 36,300 39,930 43,923 10.00%
Total 11.50% 150,000 167,000 186,100 207,590 231,805 11.50%

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Strategy and Implementation Summary

TTR Data Recovery Technologies will aggressively pursue developing a VARs program to open the market for data recovery.  In addition, the company will cultivate relationships with company and public IT units by providing a free diagnostic software program that will assist in assessing damage to a media.

5.1 Competitive Edge

Dan Whitaker is the competitive edge of TTR Data Recovery Technologies. Dan has worked for both Rogue Computer Services and CBL Technologies over the past fifteen years.  In his last position with CBL Technologies, Dan managed the growth of the Data Recovery Unit. He generated sales in excess of $3 million annually. His strength is his customer relation skills and he has been successful in expanding the range of services offered by the company.

The staff of TTR Data Recovery Technologies are impressive also:

  • Al Siano: Seven years of experience in data recovery.  Area of expertise: mechanical failure, head crash, media damage, controller malfunction, actuator failure, and damaged motor.
  • Linda Stevens: Eight years of experience in data recovery. Area of expertise: user error, accidental deletions, reformatting, repartition, virus infection, directory corruption, and lost/forgotten password.
  • Roger Williams: Five years of experience in data recovery. Area of expertise: natural disaster, fire, flood, hurricane/tornado, earthquake, and power spike.

TTR Data Recovery Technologies’ facility has a Class 100 Cleanroom in order to make delicate repairs, with no margin of error for the smallest of particles. This pristine facility maintains fewer than 100 circulating air contaminant particles per million (10,000X purer than the everyday environment), ensuring a regulated atmosphere for performing sensitive open drive surgery. In addition, the staff wears special suits, hair caps, face masks, boots and latex gloves.

5.2 Sales Strategy

TTR Data Recovery Technologies will have three distinct sales approaches:

  • For VARs: We will offer VARs a flat service fee. Each VAR can then set their own price for the service to their customer.
  • IT Units: We will offer a free diagnostic software program that will assist in assessing damage to a media.  We will also offer a 15% discount for recovery services.

5.2.1 Sales Forecast

For the first month there will be no sales, as the company will be establishing its operations.  We anticipate that sales will grow quickly during the second and third month of operation.

The following is the sales forecast for three years.

Data recovery services business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
VARs $220,000 $260,000 $300,000
IT Units $148,000 $188,000 $228,000
Total Sales $368,000 $448,000 $528,000
Direct Cost of Sales Year 1 Year 2 Year 3
VARs $0 $0 $0
IT Units $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

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Management Summary

Dan Whitaker will manage the day to day operations of TTR Data Recovery Technologies, as well as serve a a member of the data recovery team.  In addition to the recovery team, John Marks has been added to the staff as sales manager.

John has been sales manager at Rogue Computer Services for seven years.  During that times sales for the company has grown between 9% and 12% each year.  Last year, Rogue Computer Services exceeded $10 million in sales of product and services.

TTR Data Recovery Technologies will also have one customer service/clerical staff member.

6.1 Personnel Plan

The personnel of TTR Data Recovery Technologies are as follows:

  • Manager;
  • Customer service/clerical (1);
  • Data recovery staff (3);
  • Sales manager.
Personnel Plan
Year 1 Year 2 Year 3
Manager $36,000 $40,000 $44,000
Customer Service/Clerical (1) $24,000 $26,000 $28,000
Data Recovery Staff (3) $120,000 $130,000 $140,000
Sales Manager $36,000 $38,000 $40,000
Other $0 $0 $0
Total People 6 6 6
Total Payroll $216,000 $234,000 $252,000

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Financial Plan

The following is the financial plan for TTR Data Recovery Technologies.

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

7.1 Break-even Analysis

The monthly break-even point is shown below.

Data recovery services business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $26,440
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $26,440

7.2 Projected Profit and Loss

The following table and chart will highlight projected profit and loss for the next three years.

Data recovery services business plan, financial plan chart image

Data recovery services business plan, financial plan chart image

Data recovery services business plan, financial plan chart image

Data recovery services business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $368,000 $448,000 $528,000
Direct Cost of Sales $0 $0 $0
Other Production Expenses $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $368,000 $448,000 $528,000
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $216,000 $234,000 $252,000
Sales and Marketing and Other Expenses $18,000 $36,000 $46,000
Depreciation $2,880 $2,880 $2,880
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $6,000 $6,000 $6,000
Rent $36,000 $36,000 $36,000
Payroll Taxes $32,400 $35,100 $37,800
Other $0 $0 $0
Total Operating Expenses $317,280 $355,980 $386,680
Profit Before Interest and Taxes $50,720 $92,020 $141,320
EBITDA $53,600 $94,900 $144,200
Interest Expense $9,233 $7,876 $6,460
Taxes Incurred $12,446 $25,243 $40,458
Net Profit $29,041 $58,901 $94,402
Net Profit/Sales 7.89% 13.15% 17.88%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Data recovery services business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $92,000 $112,000 $132,000
Cash from Receivables $219,200 $323,652 $383,652
Subtotal Cash from Operations $311,200 $435,652 $515,652
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 $311,200 $435,652 $515,652
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $216,000 $234,000 $252,000
Bill Payments $108,026 $151,761 $176,540
Subtotal Spent on Operations $324,026 $385,761 $428,540
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 $14,160 $14,160 $14,160
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $338,186 $399,921 $442,700
Net Cash Flow ($26,986) $35,731 $72,952
Cash Balance $135,214 $170,945 $243,897

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $135,214 $170,945 $243,897
Accounts Receivable $56,800 $69,148 $81,496
Other Current Assets $0 $0 $0
Total Current Assets $192,014 $240,093 $325,393
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $2,880 $5,760 $8,640
Total Long-term Assets $97,120 $94,240 $91,360
Total Assets $289,134 $334,333 $416,753
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $12,053 $12,511 $14,689
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $12,053 $12,511 $14,689
Long-term Liabilities $85,840 $71,680 $57,520
Total Liabilities $97,893 $84,191 $72,209
Paid-in Capital $250,000 $250,000 $250,000
Retained Earnings ($87,800) ($58,759) $142
Earnings $29,041 $58,901 $94,402
Total Capital $191,241 $250,142 $344,544
Total Liabilities and Capital $289,134 $334,333 $416,753
Net Worth $191,241 $250,142 $344,544

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7379, Computer Related Services, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 21.74% 17.86% 7.20%
Percent of Total Assets
Accounts Receivable 19.64% 20.68% 19.55% 21.70%
Other Current Assets 0.00% 0.00% 0.00% 46.70%
Total Current Assets 66.41% 71.81% 78.08% 71.90%
Long-term Assets 33.59% 28.19% 21.92% 28.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.17% 3.74% 3.52% 51.40%
Long-term Liabilities 29.69% 21.44% 13.80% 19.10%
Total Liabilities 33.86% 25.18% 17.33% 70.50%
Net Worth 66.14% 74.82% 82.67% 29.50%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 92.11% 86.85% 82.12% 80.70%
Advertising Expenses 3.26% 6.70% 7.58% 1.20%
Profit Before Interest and Taxes 13.78% 20.54% 26.77% 1.70%
Main Ratios
Current 15.93 19.19 22.15 1.27
Quick 15.93 19.19 22.15 1.01
Total Debt to Total Assets 33.86% 25.18% 17.33% 70.50%
Pre-tax Return on Net Worth 21.69% 33.64% 39.14% 3.50%
Pre-tax Return on Assets 14.35% 25.17% 32.36% 11.80%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 7.89% 13.15% 17.88% n.a
Return on Equity 15.19% 23.55% 27.40% n.a
Activity Ratios
Accounts Receivable Turnover 4.86 4.86 4.86 n.a
Collection Days 57 68 69 n.a
Accounts Payable Turnover 9.96 12.17 12.17 n.a
Payment Days 27 29 28 n.a
Total Asset Turnover 1.27 1.34 1.27 n.a
Debt Ratios
Debt to Net Worth 0.51 0.34 0.21 n.a
Current Liab. to Liab. 0.12 0.15 0.20 n.a
Liquidity Ratios
Net Working Capital $179,961 $227,582 $310,704 n.a
Interest Coverage 5.49 11.68 21.88 n.a
Additional Ratios
Assets to Sales 0.79 0.75 0.79 n.a
Current Debt/Total Assets 4% 4% 4% n.a
Acid Test 11.22 13.66 16.60 n.a
Sales/Net Worth 1.92 1.79 1.53 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
VARs 0% $0 $10,000 $10,000 $12,000 $16,000 $18,000 $25,000 $29,000 $33,000 $25,000 $20,000 $22,000
IT Units 0% $0 $5,000 $4,000 $6,000 $8,000 $11,000 $16,000 $22,000 $25,000 $16,000 $18,000 $17,000
Total Sales $0 $15,000 $14,000 $18,000 $24,000 $29,000 $41,000 $51,000 $58,000 $41,000 $38,000 $39,000
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
VARs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
IT Units $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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
Manager 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
Customer Service/Clerical (1) 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Data Recovery Staff (3) 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Sales Manager 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
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000

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

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 $15,000 $14,000 $18,000 $24,000 $29,000 $41,000 $51,000 $58,000 $41,000 $38,000 $39,000
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $0 $15,000 $14,000 $18,000 $24,000 $29,000 $41,000 $51,000 $58,000 $41,000 $38,000 $39,000
Gross Margin % 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000
Sales and Marketing and Other Expenses $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Depreciation $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Payroll Taxes 15% $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440 $26,440
Profit Before Interest and Taxes ($26,440) ($11,440) ($12,440) ($8,440) ($2,440) $2,560 $14,560 $24,560 $31,560 $14,560 $11,560 $12,560
EBITDA ($26,200) ($11,200) ($12,200) ($8,200) ($2,200) $2,800 $14,800 $24,800 $31,800 $14,800 $11,800 $12,800
Interest Expense $824 $814 $804 $794 $784 $774 $765 $755 $745 $735 $725 $715
Taxes Incurred ($8,179) ($3,676) ($3,973) ($2,770) ($967) $536 $4,139 $7,142 $9,245 $4,148 $3,250 $3,553
Net Profit ($19,084) ($8,578) ($9,271) ($6,464) ($2,257) $1,250 $9,657 $16,664 $21,571 $9,678 $7,584 $8,291
Net Profit/Sales 0.00% -57.18% -66.22% -35.91% -9.40% 4.31% 23.55% 32.67% 37.19% 23.60% 19.96% 21.26%

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 $3,750 $3,500 $4,500 $6,000 $7,250 $10,250 $12,750 $14,500 $10,250 $9,500 $9,750
Cash from Receivables $0 $0 $375 $11,225 $10,600 $13,650 $18,125 $22,050 $31,000 $38,425 $43,075 $30,675
Subtotal Cash from Operations $0 $3,750 $3,875 $15,725 $16,600 $20,900 $28,375 $34,800 $45,500 $48,675 $52,575 $40,425
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 $3,750 $3,875 $15,725 $16,600 $20,900 $28,375 $34,800 $45,500 $48,675 $52,575 $40,425
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 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000
Bill Payments $28 $994 $5,327 $5,070 $6,284 $8,067 $9,630 $13,203 $16,166 $18,019 $13,052 $12,185
Subtotal Spent on Operations $18,028 $18,994 $23,327 $23,070 $24,284 $26,067 $27,630 $31,203 $34,166 $36,019 $31,052 $30,185
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 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180 $1,180
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 $19,208 $20,174 $24,507 $24,250 $25,464 $27,247 $28,810 $32,383 $35,346 $37,199 $32,232 $31,365
Net Cash Flow ($19,208) ($16,424) ($20,632) ($8,525) ($8,864) ($6,347) ($435) $2,417 $10,154 $11,476 $20,343 $9,060
Cash Balance $142,992 $126,568 $105,935 $97,410 $88,546 $82,200 $81,765 $84,182 $94,336 $105,812 $126,154 $135,214
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 $162,200 $142,992 $126,568 $105,935 $97,410 $88,546 $82,200 $81,765 $84,182 $94,336 $105,812 $126,154 $135,214
Accounts Receivable $0 $0 $11,250 $21,375 $23,650 $31,050 $39,150 $51,775 $67,975 $80,475 $72,800 $58,225 $56,800
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $162,200 $142,992 $137,818 $127,310 $121,060 $119,596 $121,350 $133,540 $152,157 $174,811 $178,612 $184,379 $192,014
Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Accumulated Depreciation $0 $240 $480 $720 $960 $1,200 $1,440 $1,680 $1,920 $2,160 $2,400 $2,640 $2,880
Total Long-term Assets $100,000 $99,760 $99,520 $99,280 $99,040 $98,800 $98,560 $98,320 $98,080 $97,840 $97,600 $97,360 $97,120
Total Assets $262,200 $242,752 $237,338 $226,590 $220,100 $218,396 $219,910 $231,860 $250,237 $272,651 $276,212 $281,739 $289,134
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 $816 $5,160 $4,863 $6,016 $7,750 $9,193 $12,666 $15,560 $17,583 $12,646 $11,770 $12,053
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 $816 $5,160 $4,863 $6,016 $7,750 $9,193 $12,666 $15,560 $17,583 $12,646 $11,770 $12,053
Long-term Liabilities $100,000 $98,820 $97,640 $96,460 $95,280 $94,100 $92,920 $91,740 $90,560 $89,380 $88,200 $87,020 $85,840
Total Liabilities $100,000 $99,636 $102,800 $101,323 $101,296 $101,850 $102,113 $104,406 $106,120 $106,963 $100,846 $98,790 $97,893
Paid-in Capital $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
Retained Earnings ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800) ($87,800)
Earnings $0 ($19,084) ($27,662) ($36,933) ($43,397) ($45,653) ($44,403) ($34,747) ($18,083) $3,488 $13,165 $20,750 $29,041
Total Capital $162,200 $143,116 $134,538 $125,267 $118,804 $116,547 $117,797 $127,453 $144,117 $165,688 $175,365 $182,950 $191,241
Total Liabilities and Capital $262,200 $242,752 $237,338 $226,590 $220,100 $218,396 $219,910 $231,860 $250,237 $272,651 $276,212 $281,739 $289,134
Net Worth $162,200 $143,116 $134,538 $125,267 $118,803 $116,547 $117,797 $127,453 $144,117 $165,688 $175,365 $182,950 $191,241

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