Web Solutions, Inc.

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ISP Business Plan

Appendix

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Dialup Internet Access 0% $98,250 $98,500 $97,250 $98,250 $96,250 $96,250 $96,250 $96,250 $96,250 $96,250 $93,000 $92,250
High-bandwidth Internet Access 0% $9,250 $9,750 $9,500 $9,250 $8,750 $8,750 $8,750 $8,750 $8,750 $8,750 $7,750 $7,000
Website and Virtual Domain Hosting 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Network Services 0% $8,000 $8,000 $7,000 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $5,000 $3,250
Server Colocation 0% $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250
Other 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Total Sales $129,250 $130,000 $127,500 $127,500 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $119,500 $116,250
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dialup Internet Access $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
High-bandwidth Internet Access $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Website and Virtual Domain Hosting $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Network Services $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Server Colocation $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Other $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Subtotal Direct Cost of Sales $4,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Donald Williams 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
Amy Williams 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
Geena James 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
Dialup Services Manager 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
R & D Manager 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
R & D Researcher 0% $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Technical Support Personnel 0% $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600
Technical Support Personnel 0% $0 $0 $0 $0 $0 $0 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600
Total People 8 8 8 8 8 8 8 8 8 8 8 8
Total Payroll $24,350 $24,350 $24,350 $24,350 $24,350 $24,350 $26,950 $26,950 $26,950 $26,950 $26,950 $26,950
General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $129,250 $130,000 $127,500 $127,500 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $119,500 $116,250
Direct Cost of Sales $4,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $4,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633 $6,633
Gross Margin $124,617 $123,367 $120,867 $120,867 $118,367 $118,367 $118,367 $118,367 $118,367 $118,367 $112,867 $109,617
Gross Margin % 96.42% 94.90% 94.80% 94.80% 94.69% 94.69% 94.69% 94.69% 94.69% 94.69% 94.45% 94.29%
Expenses
Payroll $24,350 $24,350 $24,350 $24,350 $24,350 $24,350 $26,950 $26,950 $26,950 $26,950 $26,950 $26,950
Sales and Marketing and Other Expenses $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456 $3,456
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Legal Fees $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Mortgage $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600
Payroll Taxes 15% $3,653 $3,653 $3,653 $3,653 $3,653 $3,653 $4,043 $4,043 $4,043 $4,043 $4,043 $4,043
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $37,733 $37,733 $37,733 $37,733 $37,733 $37,733 $40,723 $40,723 $40,723 $40,723 $40,723 $40,723
Profit Before Interest and Taxes $86,884 $85,634 $83,134 $83,134 $80,634 $80,634 $77,644 $77,644 $77,644 $77,644 $72,144 $68,894
EBITDA $86,884 $85,634 $83,134 $83,134 $80,634 $80,634 $77,644 $77,644 $77,644 $77,644 $72,144 $68,894
Interest Expense $5,990 $5,844 $5,698 $5,553 $5,407 $5,261 $5,115 $4,969 $4,823 $4,678 $4,532 $4,386
Taxes Incurred $24,268 $19,947 $19,359 $19,395 $18,807 $18,843 $18,132 $18,169 $18,205 $18,242 $16,903 $16,127
Net Profit $56,626 $59,842 $58,077 $58,186 $56,420 $56,530 $54,397 $54,506 $54,615 $54,725 $50,709 $48,381
Net Profit/Sales 43.81% 46.03% 45.55% 45.64% 45.14% 45.22% 43.52% 43.60% 43.69% 43.78% 42.43% 41.62%
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $109,863 $110,500 $108,375 $108,375 $106,250 $106,250 $106,250 $106,250 $106,250 $106,250 $101,575 $98,813
Cash from Receivables $11,750 $12,396 $19,391 $19,488 $19,125 $19,113 $18,750 $18,750 $18,750 $18,750 $18,750 $18,723
Subtotal Cash from Operations $121,613 $122,896 $127,766 $127,863 $125,375 $125,363 $125,000 $125,000 $125,000 $125,000 $120,325 $117,535
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 $121,613 $122,896 $127,766 $127,863 $125,375 $125,363 $125,000 $125,000 $125,000 $125,000 $120,325 $117,535
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $24,350 $24,350 $24,350 $24,350 $24,350 $24,350 $26,950 $26,950 $26,950 $26,950 $26,950 $26,950
Bill Payments $72,297 $48,192 $45,783 $45,070 $44,940 $44,226 $44,105 $43,650 $43,540 $43,431 $43,276 $41,810
Subtotal Spent on Operations $96,647 $72,542 $70,133 $69,420 $69,290 $68,576 $71,055 $70,600 $70,490 $70,381 $70,226 $68,760
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 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500
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 $114,147 $90,042 $87,633 $86,920 $86,790 $86,076 $88,555 $88,100 $87,990 $87,881 $87,726 $86,260
Net Cash Flow $7,466 $32,854 $40,133 $40,943 $38,585 $39,286 $36,445 $36,900 $37,010 $37,119 $32,599 $31,275
Cash Balance $120,078 $152,932 $193,065 $234,008 $272,593 $311,880 $348,325 $385,225 $422,235 $459,354 $491,953 $523,228
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash $112,613 $120,078 $152,932 $193,065 $234,008 $272,593 $311,880 $348,325 $385,225 $422,235 $459,354 $491,953 $523,228
Accounts Receivable $23,500 $31,138 $38,241 $37,975 $37,613 $37,238 $36,875 $36,875 $36,875 $36,875 $36,875 $36,050 $34,765
Other Current Assets $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650 $34,650
Total Current Assets $170,763 $185,866 $225,824 $265,690 $306,271 $344,481 $383,405 $419,850 $456,750 $493,760 $530,879 $562,653 $592,643
Long-term Assets
Long-term Assets $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650 $331,650
Total Assets $502,413 $517,516 $557,474 $597,340 $637,921 $676,131 $715,055 $751,500 $788,400 $825,410 $862,529 $894,303 $924,293
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $70,688 $46,665 $44,281 $43,571 $43,465 $42,755 $42,650 $42,198 $42,093 $41,987 $41,881 $40,446 $39,555
Current Borrowing $90,337 $85,337 $80,337 $75,337 $70,337 $65,337 $60,337 $55,337 $50,337 $45,337 $40,337 $35,337 $30,337
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $161,025 $132,002 $124,618 $118,908 $113,802 $108,092 $102,987 $97,535 $92,430 $87,324 $82,218 $75,783 $69,892
Long-term Liabilities $645,975 $633,475 $620,975 $608,475 $595,975 $583,475 $570,975 $558,475 $545,975 $533,475 $520,975 $508,475 $495,975
Total Liabilities $807,000 $765,477 $745,593 $727,383 $709,777 $691,567 $673,962 $656,010 $638,405 $620,799 $603,193 $584,258 $565,867
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587) ($304,587)
Earnings $0 $56,626 $116,468 $174,544 $232,730 $289,151 $345,680 $400,077 $454,583 $509,198 $563,923 $614,632 $663,013
Total Capital ($304,587) ($247,961) ($188,119) ($130,043) ($71,857) ($15,436) $41,093 $95,490 $149,996 $204,611 $259,336 $310,045 $358,426
Total Liabilities and Capital $502,413 $517,516 $557,474 $597,340 $637,921 $676,131 $715,055 $751,500 $788,400 $825,410 $862,529 $894,303 $924,293
Net Worth ($304,587) ($247,961) ($188,119) ($130,043) ($71,857) ($15,436) $41,093 $95,490 $149,996 $204,611 $259,336 $310,045 $358,426