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Telecommunications Products Business Plan

Appendix

Personnel Plan
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Production Personnel
Technical Services Management $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900
Technical Services Personnel $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500 $25,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400
Sales and Marketing Personnel
Sales Management $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Account Executives $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500 $142,500
Marketing Personnel $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000 $245,000
Marketing Management $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000 $38,000
Subtotal $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500
General and Administrative Personnel
Administration $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900 $44,900
Human Resources & Training Personnel $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800 $57,800
Financial Management $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900 $28,900
Finance & Accounting Personnel $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900 $66,900
Subtotal $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500
Other Personnel
Product Development Management $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700
Product Development Personnel $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500 $83,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200
Total People 397 411 425 439 453 467 481 495 509 523 537 548
Total Payroll $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600
General Assumptions
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
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 25.00% 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
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Sales $1,378,850 $1,387,850 $1,396,740 $1,405,790 $1,414,910 $1,424,080 $1,433,310 $1,442,620 $1,451,965 $1,461,360 $1,470,855 $1,480,400
Direct Cost of Sales $172,357 $173,481 $174,593 $175,724 $176,863 $178,010 $179,164 $180,328 $181,496 $182,670 $183,857 $185,050
Production Payroll $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400 $59,400
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $231,757 $232,881 $233,993 $235,124 $236,263 $237,410 $238,564 $239,728 $240,896 $242,070 $243,257 $244,450
Gross Margin $1,147,093 $1,154,969 $1,162,747 $1,170,666 $1,178,647 $1,186,670 $1,194,746 $1,202,892 $1,211,069 $1,219,290 $1,227,598 $1,235,950
Gross Margin % 83.19% 83.22% 83.25% 83.27% 83.30% 83.33% 83.36% 83.38% 83.41% 83.44% 83.46% 83.49%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500 $465,500
Advertising/Promotion $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900 $78,900
Travel $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000 $255,000
Total Sales and Marketing Expenses $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400 $799,400
Sales and Marketing % 57.98% 57.60% 57.23% 56.86% 56.50% 56.13% 55.77% 55.41% 55.06% 54.70% 54.35% 54.00%
General and Administrative Expenses
General and Administrative Payroll $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500 $198,500
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
Rent $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Depreciation $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 $23,000
Leased Equipment $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200
Utilities 15% $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700 $243,700
General and Administrative % 17.67% 17.56% 17.45% 17.34% 17.22% 17.11% 17.00% 16.89% 16.78% 16.68% 16.57% 16.46%
Other Expenses:
Other Payroll $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200 $119,200
Contract/Consultants $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
Total Other Expenses $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200 $126,200
Other % 9.15% 9.09% 9.04% 8.98% 8.92% 8.86% 8.80% 8.75% 8.69% 8.64% 8.58% 8.52%
Total Operating Expenses $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300 $1,169,300
Profit Before Interest and Taxes ($22,207) ($14,331) ($6,553) $1,366 $9,347 $17,370 $25,446 $33,592 $41,769 $49,990 $58,298 $66,650
EBITDA ($20,007) ($12,131) ($4,353) $3,566 $11,547 $19,570 $27,646 $35,792 $43,969 $52,190 $60,498 $68,850
Interest Expense $8,514 $8,444 $8,375 $8,306 $8,236 $8,167 $8,097 $8,028 $7,958 $7,889 $7,819 $7,750
Taxes Incurred ($7,680) ($5,694) ($3,732) ($1,735) $278 $2,301 $4,337 $6,391 $8,453 $10,525 $12,620 $14,725
Net Profit ($23,041) ($17,082) ($11,196) ($5,205) $833 $6,902 $13,012 $19,173 $25,358 $31,576 $37,859 $44,175
Net Profit/Sales -1.67% -1.23% -0.80% -0.37% 0.06% 0.48% 0.91% 1.33% 1.75% 2.16% 2.57% 2.98%
Pro Forma Cash Flow
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Cash Received
Cash from Operations
Cash Sales $344,713 $346,963 $349,185 $351,448 $353,728 $356,020 $358,328 $360,655 $362,991 $365,340 $367,714 $370,100
Cash from Receivables $927,000 $961,471 $1,034,363 $1,041,110 $1,047,781 $1,054,571 $1,061,412 $1,068,291 $1,075,215 $1,082,199 $1,089,209 $1,096,257
Subtotal Cash from Operations $1,271,713 $1,308,434 $1,383,548 $1,392,557 $1,401,509 $1,410,591 $1,419,739 $1,428,946 $1,438,207 $1,447,539 $1,456,922 $1,466,357
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 $20,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $21,271,713 $1,308,434 $1,383,548 $1,392,557 $1,401,509 $1,410,591 $1,419,739 $1,428,946 $1,438,207 $1,447,539 $1,456,922 $1,466,357
Expenditures Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Expenditures from Operations
Cash Spending $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600 $842,600
Bill Payments $2,133,570 $557,192 $560,232 $563,238 $566,297 $569,380 $572,482 $575,603 $578,752 $581,913 $585,091 $588,304
Subtotal Spent on Operations $2,976,170 $1,399,792 $1,402,832 $1,405,838 $1,408,897 $1,411,980 $1,415,082 $1,418,203 $1,421,352 $1,424,513 $1,427,691 $1,430,904
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 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,337
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 $2,984,503 $1,408,125 $1,411,165 $1,414,171 $1,417,230 $1,420,313 $1,423,415 $1,426,536 $1,429,685 $1,432,846 $1,436,024 $1,439,241
Net Cash Flow $18,287,210 ($99,691) ($27,617) ($21,614) ($15,722) ($9,723) ($3,675) $2,409 $8,521 $14,693 $20,898 $27,117
Cash Balance $1,515,210 $1,415,519 $1,387,901 $1,366,288 $1,350,566 $1,340,843 $1,337,168 $1,339,577 $1,348,099 $1,362,791 $1,383,689 $1,410,806
Pro Forma Balance Sheet
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Assets Starting Balances
Current Assets
Cash ($16,772,000) $1,515,210 $1,415,519 $1,387,901 $1,366,288 $1,350,566 $1,340,843 $1,337,168 $1,339,577 $1,348,099 $1,362,791 $1,383,689 $1,410,806
Accounts Receivable $1,854,000 $1,961,138 $2,040,554 $2,053,746 $2,066,979 $2,080,380 $2,093,870 $2,107,441 $2,121,115 $2,134,873 $2,148,695 $2,162,627 $2,176,670
Other Current Assets $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000 $1,511,000
Total Current Assets ($13,407,000) $4,987,347 $4,967,072 $4,952,648 $4,944,267 $4,941,946 $4,945,713 $4,955,608 $4,971,692 $4,993,972 $5,022,486 $5,057,317 $5,098,476
Long-term Assets
Long-term Assets $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000 $8,917,000
Accumulated Depreciation $1,694,000 $1,696,200 $1,698,400 $1,700,600 $1,702,800 $1,705,000 $1,707,200 $1,709,400 $1,711,600 $1,713,800 $1,716,000 $1,718,200 $1,720,400
Total Long-term Assets $7,223,000 $7,220,800 $7,218,600 $7,216,400 $7,214,200 $7,212,000 $7,209,800 $7,207,600 $7,205,400 $7,203,200 $7,201,000 $7,198,800 $7,196,600
Total Assets ($6,184,000) $12,208,147 $12,185,672 $12,169,048 $12,158,467 $12,153,946 $12,155,513 $12,163,208 $12,177,092 $12,197,172 $12,223,486 $12,256,117 $12,295,076
Liabilities and Capital Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Current Liabilities
Accounts Payable $2,115,000 $538,521 $541,461 $544,365 $547,322 $550,301 $553,298 $556,315 $559,359 $562,413 $565,485 $568,590 $571,711
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 $2,115,000 $538,521 $541,461 $544,365 $547,322 $550,301 $553,298 $556,315 $559,359 $562,413 $565,485 $568,590 $571,711
Long-term Liabilities $1,030,000 $1,021,667 $1,013,334 $1,005,001 $996,668 $988,335 $980,002 $971,669 $963,336 $955,003 $946,670 $938,337 $930,000
Total Liabilities $3,145,000 $1,560,188 $1,554,795 $1,549,366 $1,543,990 $1,538,636 $1,533,300 $1,527,984 $1,522,695 $1,517,416 $1,512,155 $1,506,927 $1,501,711
Paid-in Capital $1,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000 $21,667,000
Retained Earnings ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000) ($10,996,000)
Earnings $0 ($23,041) ($40,122) ($51,318) ($56,523) ($55,690) ($48,787) ($35,776) ($16,603) $8,755 $40,331 $78,190 $122,365
Total Capital ($9,329,000) $10,647,959 $10,630,878 $10,619,682 $10,614,477 $10,615,310 $10,622,213 $10,635,224 $10,654,397 $10,679,755 $10,711,331 $10,749,190 $10,793,365
Total Liabilities and Capital ($6,184,000) $12,208,147 $12,185,672 $12,169,048 $12,158,467 $12,153,946 $12,155,513 $12,163,208 $12,177,092 $12,197,172 $12,223,486 $12,256,117 $12,295,076
Net Worth ($9,329,000) $10,647,959 $10,630,878 $10,619,682 $10,614,477 $10,615,310 $10,622,213 $10,635,224 $10,654,397 $10,679,755 $10,711,331 $10,749,190 $10,793,365
Sales Forecast
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Sales
CCB (CARIBOU & MEDUSA combined) 0% $1,078,940 $1,086,105 $1,093,350 $1,100,645 $1,107,995 $1,115,385 $1,122,830 $1,130,325 $1,137,870 $1,145,465 $1,153,110 $1,160,805
Pre-Paid IN 0% $299,910 $301,745 $303,390 $305,145 $306,915 $308,695 $310,480 $312,295 $314,095 $315,895 $317,745 $319,595
Total Sales $1,378,850 $1,387,850 $1,396,740 $1,405,790 $1,414,910 $1,424,080 $1,433,310 $1,442,620 $1,451,965 $1,461,360 $1,470,855 $1,480,400
Direct Cost of Sales Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
CCB (CARIBOU & MEDUSA combined) $134,868 $135,763 $136,669 $137,581 $138,499 $139,423 $140,354 $141,291 $142,234 $143,183 $144,139 $145,101
Pre-Paid IN $37,489 $37,718 $37,924 $38,143 $38,364 $38,587 $38,810 $39,037 $39,262 $39,487 $39,718 $39,949
Subtotal Direct Cost of Sales $172,357 $173,481 $174,593 $175,724 $176,863 $178,010 $179,164 $180,328 $181,496 $182,670 $183,857 $185,050