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Mail Order Returns 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
Unit Sales
Technology Integration Fee (one-time) 0% 0 0 0 0 0 0 0 0 1 1 1 1
Annual Membership Fee 0% 0 0 0 0 0 0 0 0 0 0 0 0
Return Processing Fees 0% 0 0 0 0 0 0 0 0 6,618 13,236 19,854 26,472
Product Exchange Fees 0% 0 0 0 0 0 0 0 0 3,309 3,309 3,309 3,309
Total Unit Sales 0 0 0 0 0 0 0 0 9,928 16,546 23,164 29,782
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Technology Integration Fee (one-time) $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00
Annual Membership Fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Return Processing Fees $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50
Product Exchange Fees $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10
Sales
Technology Integration Fee (one-time) $0 $0 $0 $0 $0 $0 $0 $0 $60,000 $60,000 $60,000 $60,000
Annual Membership Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Return Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 $16,545 $33,090 $49,635 $66,180
Product Exchange Fees $0 $0 $0 $0 $0 $0 $0 $0 $6,949 $6,949 $6,949 $6,949
Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $83,494 $100,039 $116,584 $133,129
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Technology Integration Fee (one-time) 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Annual Membership Fee 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Return Processing Fees 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Product Exchange Fees 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales
Technology Integration Fee (one-time) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Annual Membership Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Return Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Product Exchange Fees $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
Managers 0% $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833 $57,833
Administrative personnel 0% $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133 $23,133
Technical personnel 0% $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700 $34,700
Total People 40 40 40 40 40 40 40 40 40 40 40 40
Total Payroll $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666
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% 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
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 $0 $0 $0 $0 $0 $0 $83,494 $100,039 $116,584 $133,129
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $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 $0 $0 $0 $0 $0 $0 $0 $83,494 $100,039 $116,584 $133,129
Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666
Sales and Marketing and Other Expenses $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458 $136,458
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Telephone $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Software and Web site development $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750 $64,750
Office supplies and subscriptions $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867 $6,867
Rent $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900
Legal & Accounting $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663 $4,663
Equipment Rental $21,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000 $19,000
Utilities $580 $580 $580 $580 $580 $580 $580 $580 $580 $580 $580 $580
Payroll Taxes 15% $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350 $17,350
Hardware & Maintenance 15% $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875 $26,875
Other $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Operating Expenses $418,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109
Profit Before Interest and Taxes ($418,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($332,615) ($316,070) ($299,525) ($282,980)
EBITDA ($418,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($332,615) ($316,070) ($299,525) ($282,980)
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 ($418,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) ($332,615) ($316,070) ($299,525) ($282,980)
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -398.37% -315.95% -256.92% -212.56%
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash from Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,783 $84,045 $100,590
Subtotal Cash from Operations $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,783 $84,045 $100,590
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 $2,000,000 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $0 $0 $0 $0 $0 $2,000,000 $0 $2,783 $84,045 $100,590
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 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666 $115,666
Bill Payments $10,081 $302,376 $300,443 $300,443 $300,443 $300,443 $300,443 $300,443 $300,443 $300,443 $300,443 $300,443
Subtotal Spent on Operations $125,747 $418,042 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109
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 $125,747 $418,042 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109 $416,109
Net Cash Flow ($125,747) ($418,042) ($416,109) ($416,109) ($416,109) ($416,109) ($416,109) $1,583,891 ($416,109) ($413,326) ($332,064) ($315,519)
Cash Balance $3,424,253 $3,006,210 $2,590,101 $2,173,993 $1,757,884 $1,341,775 $925,666 $2,509,557 $2,093,448 $1,680,122 $1,348,059 $1,032,540
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 $3,550,000 $3,424,253 $3,006,210 $2,590,101 $2,173,993 $1,757,884 $1,341,775 $925,666 $2,509,557 $2,093,448 $1,680,122 $1,348,059 $1,032,540
Accounts Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $83,494 $180,750 $213,288 $245,827
Other Current Assets $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total Current Assets $3,600,000 $3,474,253 $3,056,210 $2,640,101 $2,223,993 $1,807,884 $1,391,775 $975,666 $2,559,557 $2,226,942 $1,910,872 $1,611,347 $1,328,367
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 $3,600,000 $3,474,253 $3,056,210 $2,640,101 $2,223,993 $1,807,884 $1,391,775 $975,666 $2,559,557 $2,226,942 $1,910,872 $1,611,347 $1,328,367
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 $292,361 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428
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 $292,361 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $292,361 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428 $290,428
Paid-in Capital $3,750,000 $3,750,000 $3,750,000 $3,750,000 $3,750,000 $3,750,000 $3,750,000 $3,750,000 $5,750,000 $5,750,000 $5,750,000 $5,750,000 $5,750,000
Retained Earnings ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000) ($150,000)
Earnings $0 ($418,109) ($834,218) ($1,250,327) ($1,666,436) ($2,082,545) ($2,498,653) ($2,914,762) ($3,330,871) ($3,663,486) ($3,979,556) ($4,279,081) ($4,562,061)
Total Capital $3,600,000 $3,181,891 $2,765,782 $2,349,673 $1,933,564 $1,517,456 $1,101,347 $685,238 $2,269,129 $1,936,514 $1,620,444 $1,320,919 $1,037,939
Total Liabilities and Capital $3,600,000 $3,474,253 $3,056,210 $2,640,101 $2,223,993 $1,807,884 $1,391,775 $975,666 $2,559,557 $2,226,942 $1,910,872 $1,611,347 $1,328,367
Net Worth $3,600,000 $3,181,891 $2,765,782 $2,349,673 $1,933,564 $1,517,456 $1,101,347 $685,238 $2,269,129 $1,936,514 $1,620,444 $1,320,919 $1,037,939