Telespace, Inc.

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Telecommunications 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
MyLine General 0% $0 $9,000 $10,500 $12,000 $13,500 $15,000 $16,500 $18,000 $19,500 $21,000 $22,500 $25,500
Sports Mom Toll Free 0% $0 $0 $2,100 $4,200 $6,300 $8,400 $10,500 $17,500 $24,500 $31,500 $45,500 $59,500
Domestic Travelers/Calling Cards 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,850 $11,100 $29,600
International Travelers 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,000 $24,000 $48,000
Military 0% $0 $0 $700 $1,400 $2,100 $2,800 $16,800 $30,800 $44,800 $58,800 $72,800 $86,800
Total Sales $0 $9,000 $13,300 $17,600 $21,900 $26,200 $43,800 $66,300 $88,800 $125,150 $175,900 $249,400
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
MyLine General $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sports Mom Toll Free $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Domestic Travelers/Calling Cards $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
International Travelers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Military $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
Production Personnel
VP of Operations-Russ Fish $1,400 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Sr. Systems Engineer-Dana Gilliam $4,200 $4,200 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600 $4,600
Systems Engineer-David Gabler $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800
Subtotal $9,400 $15,000 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400
Sales and Marketing Personnel
VP of Mkg.& Bus.Dev't-M.van Steenwyk $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Sales Channel Managers $0 $0 $0 $0 $0 $0 $2,500 $5,000 $7,500 $7,500 $7,500 $10,000
Resource Analyst-Amber Higgins $2,600 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125
Account Manager-Brenda Thomasi $2,000 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125
Sales Representatives $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,500 $5,000 $5,000
Subtotal $10,600 $12,250 $12,250 $12,250 $12,250 $12,250 $15,750 $18,250 $20,750 $23,250 $25,750 $28,250
General and Administrative Personnel
CEO-Trone Miller $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $10,833 $10,833 $10,833 $10,833 $10,833 $10,833
CFO-Phil ErkenBrack $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,167 $9,167 $9,167 $9,167 $9,167 $9,167
Controller $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Billing Supervisor-Hector Padilla $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $4,000 $4,000 $4,000
Accountants $0 $0 $0 $0 $0 $0 $2,000 $4,000 $4,000 $4,000 $6,000 $6,000
Administration Manager-Betty Benedix $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,500 $3,500
Asst. Manager $0 $0 $0 $0 $0 $0 $0 $1,000 $2,000 $2,000 $2,000 $2,000
Receptionist $0 $0 $0 $0 $0 $0 $0 $900 $900 $900 $900 $900
Human Resources Clerk $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $28,500 $32,400 $33,400 $33,900 $36,400 $36,400
Other Personnel
Name or title $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
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 10 10 10 10 10 10 12 15 15 16 17 17
Total Payroll $42,500 $49,750 $50,150 $50,150 $50,150 $50,150 $59,650 $66,050 $69,550 $72,550 $77,550 $80,050
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 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
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 $9,000 $13,300 $17,600 $21,900 $26,200 $43,800 $66,300 $88,800 $125,150 $175,900 $249,400
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Production Payroll $9,400 $15,000 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400 $15,400
Network expense $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 Cost of Sales $19,400 $25,000 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400
Gross Margin ($19,400) ($16,000) ($12,100) ($7,800) ($3,500) $800 $18,400 $40,900 $63,400 $99,750 $150,500 $224,000
Gross Margin % 0.00% -177.78% -90.98% -44.32% -15.98% 3.05% 42.01% 61.69% 71.40% 79.70% 85.56% 89.82%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $10,600 $12,250 $12,250 $12,250 $12,250 $12,250 $15,750 $18,250 $20,750 $23,250 $25,750 $28,250
Advertising/Promotion $0 $0 $0 $0 $10,000 $10,000 $50,000 $45,000 $65,000 $40,000 $30,000 $20,000
Trade Shows $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0
Travel $0 $0 $0 $0 $3,000 $3,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Marketing Collateral & Supplies $0 $0 $0 $0 $1,500 $1,500 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Publications $0 $0 $0 $0 $0 $0 $6,500 $0 $0 $0 $0 $0
Demos and Samples $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,000 $2,000
Total Sales and Marketing Expenses $10,600 $12,250 $12,250 $12,250 $27,750 $27,750 $91,250 $72,250 $94,750 $72,250 $65,750 $58,250
Sales and Marketing % 0.00% 136.11% 92.11% 69.60% 126.71% 105.92% 208.33% 108.97% 106.70% 57.73% 37.38% 23.36%
General and Administrative Expenses
General and Administrative Payroll $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $28,500 $32,400 $33,400 $33,900 $36,400 $36,400
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000
Leased Equipment $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,000 $2,000 $2,000 $2,000 $2,000
Utilities $500 $500 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $3,000 $3,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 23% $9,775 $11,443 $11,535 $11,535 $11,535 $11,535 $13,720 $15,192 $15,997 $16,687 $17,837 $18,412
Other General and Administrative Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $36,775 $38,443 $38,535 $38,535 $39,535 $40,535 $50,220 $57,592 $60,397 $62,587 $68,237 $69,812
General and Administrative % 0.00% 427.14% 289.73% 218.95% 180.52% 154.71% 114.66% 86.87% 68.01% 50.01% 38.79% 27.99%
Other Expenses:
Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Operating Expenses $47,375 $50,693 $50,785 $50,785 $67,285 $68,285 $141,470 $129,842 $155,147 $134,837 $133,987 $128,062
Profit Before Interest and Taxes ($66,775) ($66,693) ($62,885) ($58,585) ($70,785) ($67,485) ($123,070) ($88,942) ($91,747) ($35,087) $16,514 $95,939
EBITDA ($66,775) ($66,693) ($62,885) ($58,585) ($69,785) ($65,485) ($120,070) ($84,942) ($86,747) ($29,087) $23,514 $103,939
Interest Expense $625 $1,375 $1,875 $2,583 $2,458 $2,333 $2,208 $2,083 $1,958 $1,833 $1,708 $1,583
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($67,400) ($68,068) ($64,760) ($61,168) ($73,243) ($69,818) ($125,278) ($91,025) ($93,705) ($36,920) $14,805 $94,355
Net Profit/Sales 0.00% -756.31% -486.91% -347.54% -334.44% -266.48% -286.02% -137.29% -105.52% -29.50% 8.42% 37.83%
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 $450 $665 $880 $1,095 $1,310 $2,190 $3,315 $4,440 $6,258 $8,795 $12,470
Cash from Receivables $0 $0 $285 $8,686 $12,771 $16,856 $20,941 $25,447 $42,323 $63,698 $85,511 $120,500
Subtotal Cash from Operations $0 $450 $950 $9,566 $13,866 $18,166 $23,131 $28,762 $46,763 $69,955 $94,306 $132,970
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 $75,000 $100,000 $75,000 $100,000 $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 $250,000 $250,000 $0 $250,000 $250,000 $0 $250,000 $0
Subtotal Cash Received $75,000 $100,450 $75,950 $109,566 $263,866 $268,166 $23,131 $278,762 $296,763 $69,955 $344,306 $132,970
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 $42,500 $49,750 $50,150 $50,150 $50,150 $50,150 $59,650 $66,050 $69,550 $72,550 $77,550 $80,050
Bill Payments $830 $24,981 $27,337 $27,933 $29,130 $43,989 $45,953 $105,789 $87,964 $107,140 $83,287 $76,226
Subtotal Spent on Operations $43,330 $74,731 $77,487 $78,083 $79,280 $94,139 $105,603 $171,839 $157,514 $179,690 $160,837 $156,277
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 $10,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
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 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $43,330 $84,731 $92,487 $93,083 $139,280 $154,139 $165,603 $231,839 $217,514 $239,690 $220,837 $216,277
Net Cash Flow $31,670 $15,719 ($16,537) $16,483 $124,586 $114,028 ($142,472) $46,923 $79,248 ($169,735) $123,469 ($83,307)
Cash Balance $31,670 $47,389 $30,852 $47,335 $171,921 $285,949 $143,477 $190,400 $269,648 $99,913 $223,381 $140,074
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 $0 $31,670 $47,389 $30,852 $47,335 $171,921 $285,949 $143,477 $190,400 $269,648 $99,913 $223,381 $140,074
Accounts Receivable $0 $0 $8,550 $20,900 $28,934 $36,968 $45,002 $65,670 $103,208 $145,246 $200,441 $282,034 $398,465
Inventory $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
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 $30,000 $61,670 $85,939 $81,752 $106,269 $238,889 $360,950 $239,147 $323,608 $444,893 $330,353 $535,416 $568,539
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $45,000 $90,000 $135,000 $180,000 $225,000 $270,000 $315,000 $360,000
Accumulated Depreciation $0 $0 $0 $0 $0 $1,000 $3,000 $6,000 $10,000 $15,000 $21,000 $28,000 $36,000
Total Long-term Assets $0 $0 $0 $0 $0 $44,000 $87,000 $129,000 $170,000 $210,000 $249,000 $287,000 $324,000
Total Assets $30,000 $61,670 $85,939 $81,752 $106,269 $282,889 $447,950 $368,147 $493,608 $654,893 $579,353 $822,416 $892,539
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 $24,070 $26,407 $26,979 $27,664 $42,526 $42,406 $102,880 $84,366 $104,356 $80,736 $73,993 $64,762
Current Borrowing $0 $75,000 $165,000 $225,000 $310,000 $295,000 $280,000 $265,000 $250,000 $235,000 $220,000 $205,000 $190,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $99,070 $191,407 $251,979 $337,664 $337,526 $322,406 $367,880 $334,366 $339,356 $300,736 $278,993 $254,762
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $99,070 $191,407 $251,979 $337,664 $337,526 $322,406 $367,880 $334,366 $339,356 $300,736 $278,993 $254,762
Paid-in Capital $87,500 $87,500 $87,500 $87,500 $87,500 $337,500 $587,500 $587,500 $837,500 $1,087,500 $1,087,500 $1,337,500 $1,337,500
Retained Earnings ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500) ($57,500)
Earnings $0 ($67,400) ($135,468) ($200,227) ($261,395) ($334,638) ($404,456) ($529,733) ($620,758) ($714,463) ($751,383) ($736,578) ($642,223)
Total Capital $30,000 ($37,400) ($105,468) ($170,227) ($231,395) ($54,638) $125,545 $267 $159,242 $315,537 $278,617 $543,422 $637,777
Total Liabilities and Capital $30,000 $61,670 $85,939 $81,752 $106,269 $282,889 $447,950 $368,147 $493,608 $654,893 $579,353 $822,416 $892,539
Net Worth $30,000 ($37,400) ($105,467) ($170,227) ($231,395) ($54,638) $125,545 $267 $159,242 $315,537 $278,617 $543,422 $637,778