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Inventory Control Software Business Plan

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
MAS-90 0% $0 $0 $12,000 $15,000 $18,000 $20,000 $20,000 $22,000 $24,000 $20,000 $21,000 $22,000
Royal's Inventory Basic 0% $0 $0 $12,000 $15,000 $18,000 $21,000 $20,000 $21,000 $20,000 $15,000 $17,000 $20,000
Custom Consultation/Adptation 0% $0 $0 $6,000 $9,000 $12,000 $18,000 $20,000 $18,000 $14,000 $18,000 $17,000 $19,000
Total Sales $0 $0 $30,000 $39,000 $48,000 $59,000 $60,000 $61,000 $58,000 $53,000 $55,000 $61,000
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
MAS-90 $0 $0 $360 $450 $540 $600 $600 $660 $720 $600 $630 $660
Royal's Inventory Basic $0 $0 $360 $450 $540 $630 $600 $630 $600 $450 $510 $600
Custom Consultation/Adptation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $720 $900 $1,080 $1,230 $1,200 $1,290 $1,320 $1,050 $1,140 $1,260
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
CEO 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
John Royal 0% $5,000 $5,000 $7,500 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $7,500 $5,000 $5,000
Dan Whiteaker 0% $5,000 $5,000 $7,500 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $7,500 $5,000 $5,000
Application Engineer 0% $4,615 $4,615 $6,922 $4,615 $4,615 $4,615 $4,615 $4,617 $4,616 $6,924 $4,616 $4,615
Support Engineer 0% $3,842 $3,842 $5,769 $3,848 $3,850 $3,842 $3,842 $3,850 $3,850 $5,769 $3,850 $3,846
Tech Support Staff 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total People 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $20,957 $20,957 $30,191 $20,963 $20,965 $20,957 $20,957 $20,967 $20,966 $30,193 $20,966 $20,961
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 $0 $30,000 $39,000 $48,000 $59,000 $60,000 $61,000 $58,000 $53,000 $55,000 $61,000
Direct Cost of Sales $0 $0 $720 $900 $1,080 $1,230 $1,200 $1,290 $1,320 $1,050 $1,140 $1,260
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $720 $900 $1,080 $1,230 $1,200 $1,290 $1,320 $1,050 $1,140 $1,260
Gross Margin $0 $0 $29,280 $38,100 $46,920 $57,770 $58,800 $59,710 $56,680 $51,950 $53,860 $59,740
Gross Margin % 0.00% 0.00% 97.60% 97.69% 97.75% 97.92% 98.00% 97.89% 97.72% 98.02% 97.93% 97.93%
Expenses
Payroll $20,957 $20,957 $30,191 $20,963 $20,965 $20,957 $20,957 $20,967 $20,966 $30,193 $20,966 $20,961
Sales and Marketing and Other Expenses $0 $0 $6,000 $6,900 $8,300 $9,800 $10,000 $10,200 $9,600 $12,200 $13,400 $15,200
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $3,144 $3,144 $4,529 $3,144 $3,145 $3,144 $3,144 $3,145 $3,145 $4,529 $3,145 $3,144
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $30,701 $25,701 $42,320 $32,607 $34,010 $35,501 $35,701 $35,912 $35,311 $48,522 $39,111 $40,905
Profit Before Interest and Taxes ($30,701) ($25,701) ($13,040) $5,493 $12,910 $22,269 $23,099 $23,798 $21,369 $3,428 $14,749 $18,835
EBITDA ($30,701) ($25,701) ($13,040) $5,493 $12,910 $22,269 $23,099 $23,798 $21,369 $3,428 $14,749 $18,835
Interest Expense $819 $806 $792 $778 $764 $750 $736 $722 $708 $695 $681 $667
Taxes Incurred ($9,456) ($7,952) ($4,149) $1,414 $3,644 $6,456 $6,709 $6,923 $6,198 $820 $4,221 $5,450
Net Profit ($22,064) ($18,554) ($9,682) $3,300 $8,502 $15,064 $15,654 $16,153 $14,463 $1,913 $9,848 $12,718
Net Profit/Sales 0.00% 0.00% -32.27% 8.46% 17.71% 25.53% 26.09% 26.48% 24.94% 3.61% 17.91% 20.85%
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 $0 $7,500 $9,750 $12,000 $14,750 $15,000 $15,250 $14,500 $13,250 $13,750 $15,250
Cash from Receivables $0 $0 $0 $750 $22,725 $29,475 $36,275 $44,275 $45,025 $45,675 $43,375 $39,800
Subtotal Cash from Operations $0 $0 $7,500 $10,500 $34,725 $44,225 $51,275 $59,525 $59,525 $58,925 $57,125 $55,050
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 $0 $7,500 $10,500 $34,725 $44,225 $51,275 $59,525 $59,525 $58,925 $57,125 $55,050
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 $20,957 $20,957 $30,191 $20,963 $20,965 $20,957 $20,957 $20,967 $20,966 $30,193 $20,966 $20,961
Bill Payments $37 ($1,333) ($2,006) $9,666 $14,863 $18,681 $22,993 $23,405 $23,836 $22,516 $21,003 $24,291
Subtotal Spent on Operations $20,994 $19,624 $28,185 $30,629 $35,828 $39,638 $43,950 $44,372 $44,802 $52,709 $41,969 $45,252
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 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
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 $22,660 $21,290 $29,851 $32,295 $37,494 $41,304 $45,616 $46,038 $46,468 $54,375 $43,635 $46,918
Net Cash Flow ($22,660) ($21,290) ($22,351) ($21,795) ($2,769) $2,921 $5,659 $13,487 $13,057 $4,550 $13,490 $8,132
Cash Balance $151,840 $130,550 $108,199 $86,404 $83,635 $86,556 $92,215 $105,702 $118,759 $123,309 $136,799 $144,931
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 $174,500 $151,840 $130,550 $108,199 $86,404 $83,635 $86,556 $92,215 $105,702 $118,759 $123,309 $136,799 $144,931
Accounts Receivable $0 $0 $0 $22,500 $51,000 $64,275 $79,050 $87,775 $89,250 $87,725 $81,800 $79,675 $85,625
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $184,500 $161,840 $140,550 $140,699 $147,404 $157,910 $175,606 $189,990 $204,952 $216,484 $215,109 $226,474 $240,556
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $184,500 $161,840 $140,550 $140,699 $147,404 $157,910 $175,606 $189,990 $204,952 $216,484 $215,109 $226,474 $240,556
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 $1,070 $0 $11,497 $16,568 $20,237 $24,536 $24,932 $25,407 $24,142 $22,520 $25,702 $28,733
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 $1,070 $0 $11,497 $16,568 $20,237 $24,536 $24,932 $25,407 $24,142 $22,520 $25,702 $28,733
Long-term Liabilities $100,000 $98,334 $96,668 $95,002 $93,336 $91,670 $90,004 $88,338 $86,672 $85,006 $83,340 $81,674 $80,008
Total Liabilities $100,000 $99,404 $96,668 $106,499 $109,904 $111,907 $114,540 $113,270 $112,079 $109,148 $105,860 $107,376 $108,741
Paid-in Capital $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
Retained Earnings ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500) ($115,500)
Earnings $0 ($22,064) ($40,618) ($50,300) ($47,000) ($38,497) ($23,434) ($7,780) $8,373 $22,836 $24,749 $34,597 $47,315
Total Capital $84,500 $62,436 $43,882 $34,200 $37,500 $46,003 $61,066 $76,720 $92,873 $107,336 $109,249 $119,097 $131,815
Total Liabilities and Capital $184,500 $161,840 $140,550 $140,699 $147,404 $157,910 $175,606 $189,990 $204,952 $216,484 $215,109 $226,474 $240,556
Net Worth $84,500 $62,436 $43,882 $34,200 $37,500 $46,003 $61,066 $76,720 $92,873 $107,336 $109,249 $119,097 $131,815