Plan Outline

Mail Order Returns Business Plan

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Appendix

Sales Forecast
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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
	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		$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
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec

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
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec